DECLARATION OF RESTRICTIVE COVENANTS AND RESERVATIONS OF EASEMENTS ICE CRACKING COVE BECKER COUNTY, MINNESOTA

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1 DECLARATION OF RESTRICTIVE COVENANTS AND RESERVATIONS OF EASEMENTS ICE CRACKING COVE BECKER COUNTY, MINNESOTA Tea Cracker, LLC, a Minnesota limited liability company, whose post office address is 1220 Main Avenue, Ste. 215, Fargo, ND has established and is the Owner/Developer of Ice Cracking Cove in Becker County, Minnesota. A Plat of Ice Cracking Cove (hereinafter the Premises ) is on file with the Becker County Recorder. This Plat was recorded on December 1, 2006, at 2:56 p.m., as Document No The Owner/Developer declares that the real property described as the Premises is and shall be held, transferred, sold, conveyed and occupied subject to the covenants, restrictions, reservations and easements as set forth in this document, the burden of which shall run with the Premises and bind all persons who now or hereafter have any right, title or interest in or to any of the Premises and inure to the benefit of all persons who now or hereafter have any right, title or interest in or to any part of the Premises. These restrictions, covenants, conditions and easements shall be deemed to run with the Premises and shall be binding upon the heirs, administrators, executors, successors and assigns of any person to whom the Premises may be conveyed. Section 1. Definitions. Section 1.1. Architectural Review Committee - refers to the committee that must provide approval prior to the construction, erection, or alteration of the exterior of any structure on ICC and, if added, TCC. Section 1.2. Back Side - refers to the non-lakeshore side of Lots in Block One (1) ICC, Lot Two (2), and Lot Five (5), Block Two (2) ICC, and all Lots in TCC. For Lot One (1), Block Two (2), ICC, the Back Side will be considered to be the North Side of the Lot. Section 1.3. Certified Plat refers to the Certified Plat for Ice Cracking Cove, Becker County, Minnesota recorded with the Becker County Recorder on December 1, 2006, at 2:56 p.m. as Document No and any amendments thereto. Section 1.4. Covenants refers to all restrictive covenants, easements, restrictions, conditions, reservations, and/or easements set out in this document. 1

2 Section 1.5. Forest Lots refers to Lots One (1) and Five (5), Block Two (2) as set forth in the Certified Plat. Section 1.6. Ice Cracking Cove ( ICC ) refers to the property as established and described in the Certified Plat of the Premises. Section 1.7. Tea Cracker Cove ( TCC ) - refers to land owned by Tea Cracker, LLC, adjacent to the property on the Certified Plat. Section 1.8. Lakeside Lots refers to Lots One (1) through Fourteen (14), Block One (1), ICC, inclusive as set forth in the Certified Plat. Section 1.9. Lot refers to any lot as established and as assigned a number on the Certified Plat of Ice Cracking Cove, Becker County, Minnesota and any amendments thereto. 2

3 Section Owner or Developer refers to Tea Cracker, LLC, a Minnesota limited liability company whose post office address is P.O. Box 1691, Fargo, ND and whose street address is 1220 Main Avenue, Ste. 215, Fargo, ND 58103, its successors and assigns. Section Premises refers to all property as described in the Certified Plat of Ice Cracking Cove, Becker County, Minnesota on file with the Becker County, Minnesota Recorder, recorded on December 1, 2006, at 2:56 p.m., as Document No This definition shall also include any part of the Premises. If TCC is added, Premises will also refer to all property described in the Certified Plat of Tea Cracker Cove. Section Setback Line refers to the line on each Lakeside Lot which represents the closest point to the lake to which any structural improvement may be constructed. The Setback Lines may be referred to in the Certified Plat. The property between the lake and the Setback Line will be referred to as the front of the Lakeside Lot. The property located on the other side of the Setback Line will be referred to as the back property of that Lot. Section Zoning and Building Codes refers to the zoning ordinances, regulations, and codes and the building codes, ordinances, and regulations of Round Lake Township, Becker County, Minnesota and the State of Minnesota as may be amended from time to time. Section 2. Property Affected. The Premises is the property affected by and is the subject of these Covenants. Owner reserves the right to cause TCC to be subject to the same or similar Restrictive Covenants and Reservation of Utility Easements by filing of a Statement of Addition with the Becker County Recorder s office. The Statement of Addition may contain such terms as Owner deems appropriate. Section 3. Term. These Covenants shall be in effect for an initial term through December 31, These Covenants shall thereafter automatically be renewed and extended for successive terms of ten years unless on or before the end of any such ten-year period by vote of the owners of a majority of the Lots in the Premises as evidenced by written instrument, duly recorded with the Becker County, Minnesota recorder and signed by owners of a majority of Lots, said owners declare a termination, change, amendment, or modification of these Covenants. This instrument will be effective on recording. In the event TCC is added as set forth in Section 2, any vote by Owners of a majority of the Lots as set forth above in this Section will include the Lots in TCC in computing the vote and the majority. 3

4 In the event these Covenants should expire or terminate, the easements created by these Covenants shall nonetheless remain in full force and effect and shall run with the land; further, any and all remedies for breach of these Covenants committed or suffered prior to expiration or termination shall remain actionable, as shall any remedies for breach of these Covenants committed or suffered subsequent to expiration or termination stemming from a breach prior to expiration or termination. Section 4. Amendment by Owner. Owner reserves the right to amend these Covenants at any time through December 31, Any amendment of these Covenants by the Owner will not affect the validity of any mortgage or deed of trust and will not change the burden to any Lot or any portions of a Lot without the consent of the mortgage holder of said Lots, if any. Section 5. Land Use and Building Type. All Lots as set forth in the Certified Plat shall be used for single family residential purposes only. More than one single family residence may be constructed on Lots if it is permissible in accordance with Zoning and Building Codes. Outbuildings may be constructed on Lots in accordance with the Zoning and Building Codes and in accordance with the provisions of these Covenants. Section 6. No Commercial Use. No commercial use may be made of the Lots except that an Owner may engage in a home business if allowed under the Zoning and Building Codes provided the home business does not involve more than two employees at the home at any time; there is no sign advertising the home office/business; and no motor vehicles (other than passenger cars and pick up trucks) or motor equipment of a commercial nature, such as trucks, vans, construction equipment, agricultural equipment, or forestry equipment are used on the property or stored on the property outside an enclosed structure as part of the business. Section 7. Structures. Section 7.1. All structures constructed, erected, or altered on the Property and changes to the exterior of the structure require the prior written approval of the Architectural Review Committee. The owner of the Lot is required to submit all Plans and Specifications for the construction, erection, or alteration of the structure to the Architectural Review Committee for written approval prior to commencement of construction, erection, or alteration. The Architectural Review Committee may require additional information such as material samples or color samples prior to approval. The Architectural Review Committee may make Guidelines available regarding acceptable and/or nonacceptable. The Architectural Review Committee may grant variances from literal compliance with these Restrictive Covenants and the Guidelines. The 4

5 granting of any variance will apply to that instance only and will not apply to any other actions by the owner who requested the variance or by any other owner. In the event that the Architectural Review Committee does not disapprove any plan within 15 business days from the later of the date on which the written Plans and Specifications are received by the Architectural Review Committee or the date on which the last of information requested by the Architectural Review Committee is received, the Plans and Specifications as submitted shall be considered approved. No construction is permitted during the 15 business day review period. Section 7.2. Plans and Specifications required to be submitted for approval shall include the following: Section Two complete sets of floor plans, elevations, and sections, on-site plan and, if requested, material samples. Section Plans and Specifications indicating construction materials and specifications, roofing materials, exterior finish materials, and colors for all exterior items, including soffit, fascia, and window trim. Section The Plans and Specifications must show the location of all planned accessory structures. Section 7.3. All improvements constructed on the Lots shall be new construction. No buildings or other structures shall be moved from other locations onto any Lot. No structures commonly referred to as mobile homes, which generally have axles attached to the frames of the home(s), are permitted. Travel trailers or campers not exceeding 8 feet in width and 40 feet in length are allowed as a temporary residence for a period of up to three years, at which time they must be removed and not replaced on the Lot with a similar travel trailer or camper for a period of at least one year. No skirting, entryways, decks, or similar attachments may be built as part of a temporary living quarters using a travel trailer or camper. Modular construction in which a portion of the construction of a structure occurs off site and is brought on site may be approved if acceptable to the Architectural Review Committee. In the event of a dispute on what constitutes a mobile home, the determination of the Architectural Review Committee shall be final. Section 7.4. All residential structures and other buildings and structural improvements must be constructed on the Back Side of the Setback Lines for each Lakeside Lot. 5

6 used. Section 7.5. No white or light-colored roofing materials may be Section 7.6. No vinyl siding or roofing may be used. Section 7.7. No white or light colored steel, aluminum, or metal siding or roofing products may be used. Darker colors may be used as approved by the Architectural Review Committee. Section 7.8. No patio, deck, porch, or other improvement may be constructed on the front side (Lakeside) of the Setback Line for each of the Lakeside Lots. Section 7.9. All improvements to a Lot shall be constructed with a sidelot setback of at least ten feet or such greater setback as may be required by Zoning and Building Codes. Section The Architectural Review Committee may require payment of a reasonable fee set by Owner to the Architectural Review Committee for review of Plans and Specifications. This amount shall be paid at the time of application for approval of Plans and Specifications. Section 8. Garages, Out Buildings, and Docks. Section 8.1. Any garage or out building constructed on Lots One (1) through Fourteen (14), Block One (1) ICC, inclusive, or on Lots One (1), Two (2), and Four (4), Block Two (2), ICC, must be constructed on the Back Side (non-lake side) of the principal residence constructed on the property. Section 8.2. All garages and out buildings must be constructed in accordance with Zoning and Building Codes. Section 8.3. In order to maintain the natural shoreline and to minimize disruption to the shoreline, homeowners desiring to place docks for lake access from their property are required to place the docks and any maintained swimming areas within 50 feet of common property line shared with an adjacent property in accordance with the following schedule: This restriction applies to all Lots in Block One (1) of Ice Cracking Cove: Lot Number Common Property Line Between These Two Lots For Dock Location

7 In the event of the addition of TCC, this Section may be amended as it relates to TCC. Section 9. Fencing. Section 9.1. All fences must be approved by the Architectural Review Committee prior to construction. The procedures set forth in Section 7 of these Covenants shall apply. Section 9.2. On each Lakeside Lot, no fence may be constructed closer to the lake than ten feet back of the front side of the principal residence located closest to the lake. Section 9.3. Chain link fences visible from any point not on the Lot on which the chain link fence is located are prohibited. Section 9.4. All barbed wire or similar injury or damage on contact fences are prohibited. Section 10. Basketball Backboards and Hoops. No basketball backboards or hoops may be attached to a residential dwelling, garage, storage shed or other building structure on a Lot. A separate pole for installation of such equipment may be erected and maintained at the expense of the Lot Owner. Section 11. Letter and Delivery Boxes. The Developer will determine the location of the mail or delivery boxes. No other mail or delivery box may be maintained by any Owner. No delivery boxes other than boxes for the US Mail shall be permitted on any Lot or abutting such Lot. 7

8 Section 12. Fuel Tanks. No fuel tanks of any kind, including propane tanks or gas tanks, may be stored on the property except to the extent the same are stored behind an approved fence or other barrier so that they are not visible from the Lake, a road, or any other Lot. No elevated tanks of any kind shall be erected, placed, or permitted on any Lot. Section 13. Garbage. All garbage, refuse, and rubbish shall be kept in a container and stored in a building or on a Lot at a location on the Lot where it may not be viewed from the Lake, other Lots, or roads passing by the Lot. The only exception is that garbage containers may be put out for a period not exceeding 24 hours for garbage pickup on scheduled garbage pickup days. Section 14. Building Materials. All building materials not being used in on-going construction on a Lot shall be stored in such a manner, in a building or otherwise that the same are not visible from any other Lot, the lake, or any road passing by the Lot. Wrapping or covering building materials in plastic, cloth, or other covering material is not sufficient to meet the criteria of making building materials not visible from another Lot, the Lake, or any road passing by the Lot. Section 15. Nuisances. No Lot shall be used in whole or in part for storage of garbage or rubbish of any kind whatsoever nor for the storage of any property or things which will cause such Lot to appear to be untidy or have an appearance which will create a negative image for the Premises or any part of the Premises or cause injury or threat of injury to the health, safety, or welfare of users of the Premises. Section 16. Hunting. No hunting with firearms, bow and arrow, or similar devices is allowed within ICC. If TCC is added, this restriction shall also apply to all property within TCC. Section 17. Non-Operational Motor Vehicles; Noxious Materials; Annoying Noises. No disabled, non-operational or not-in-season-of-use motor vehicles of any type or powered vehicles used for recreation such as boats, motorcycles, snowmobiles, jet skis, all-terrain vehicles, recreational vehicles ( RVs ) or other similar items may be stored on the Premises except within the confines of an enclosed building. No major mechanical repairs on motor vehicles or powered vehicles may be undertaken except within an enclosed building. No substance, thing, or material shall be kept on any Lot which will emit a foul or obnoxious odor or that will cause any noise that will or might disturb the peace, quiet, comfort, serenity, and appeal of ICC and/or TCC. No loud or consistent noises that will or may disturb the peace, quiet, comfort, serenity, and/or appeal of ICC or TCC will be permitted from any Owner, a member of the family, a guest, a tenant, or a trespasser. This noise restriction shall not apply to goodfaith construction activities on the project. 8

9 Section 18. Signs. No billboards or advertising signs of any kind or character shall be erected, placed, permitted, or maintained on any Lot or improvements except as herein expressly permitted. A name and address sign used solely for the purpose of identification of the dwelling house and/or its occupants may be placed on a Lot by the occupants. A standard and customary For Sale sign related to the sale of a Lot and the improvements on the Lot may be placed on the Lot provided the sign does not exceed two feet by three feet in surface area on either side of the sign. This restriction shall not apply to restrict or in any way inhibit the right of the Developer to have signs of any size on ICC and/or TCC or adjoining property for the purpose of promoting sale of ICC and/or TCC or adjoining property, or any parts thereof. The Developer may erect, place, or maintain such signs or structures as it deems necessary for the operation or identification of the ICC and adjoining property including TCC. Section 19. Satellite Dishes. All satellite dishes, receivers, and antennas shall be placed in such a manner as to be out of view from the lake, the road servicing the Lot(s), and from any other Lot within the Premises. 9

10 Section 20. Vehicle Parking. No commercial vehicles or construction equipment shall be permitted on any Lot except in the normal course of business provided by such vehicles such as construction vehicles and equipment being present while construction is occurring. No commercial equipment may be parked or stored on a Lot on a regular or continuous basis except inside an enclosed building. This does not prohibit an owner or guest from having a commercial motor vehicle on the property if the vehicle is used for transportation to and from the Lot. As an example, a pickup truck bearing the logo or decal of a business used by an owner as transportation to and from work would be permissible. The Architectural Review Committee will have final authority to determine any issue regarding compliance with this Section. Any determination by the Architectural Review Committee may be enforced as set forth in Section 28. Section 21. Division of Lots. No lots shall be subdivided except with the written approval of the Architectural Review Committee. All transfers of less than the entire Lot shall be prohibited without the prior written approval of the Architectural Review Committee. Section 22. Drainage. No owner nor anyone acting on behalf of an Owner shall change the natural drainage of the property in such a manner as to cause water from a Lot to drain onto any other Lot or water from any other Lot to drain onto a different Lot as a result in a change of drainage. Section 23. Access Road and Access Easements. Section There is an access road servicing all of the Lots in Block One (1) and all of the Lots in Block Two (2), ICC. This is shown as a dedicated road on the Plat of ICC. This road will initially be graded and a gravel or similar type of surface will be put on the road by Developer to the specifications of Developer. Developer will have no further obligation for the road, which will be a dedicated public road. Section Easement for Access, Ingress, and Egress. Access to Lots Eight (8) and Nine (9), Block One (1) ICC from the access road described in Section 21.1 will be through an Easement Area reflected on the Plat starting in the northwesterly corner of Lot Seven (7), Block One (1). This Easement is for the purpose of providing ingress and egress to Lots Eight (8) and Nine (9) over the Easement Area as reflected in the Plat of Ice Cracking Cove. This Easement is perpetual and will run with the land for the benefit of the owners of Lots Eight (8) and Nine (9) and their successors and assigns. All costs of maintaining the Easement Area will be paid 50 percent by the owner(s) of Lot Eight (8) and 50 percent by the owner(s) of Lot Nine (9). The Easement Area may be used for access to Lots Eight (8) and Nine (9) only. No vehicles or other 10

11 items may be parked or placed in the Easement Area in any manner which would block or otherwise adversely affect the use of the Easement Area. Developer or owners of Lots Seven (7), Eight (8), and Nine (9) will have the right to cause a separate Easement document to be recorded affecting Lots Seven (7), Eight (8), and Nine (9), Block One (1). This easement is perpetual and will run with the land. Section 24. Easements. Section Perpetual easements are hereby established along and 20 feet on either side of the road shown on the Certified Plat of ICC servicing Block One (1), Lots One (1) through Fourteen (14), inclusive, and Block Two (2), Lots One (1) through Five (5), inclusive, for the purpose of installation and maintenance of electrical lines, telecommunication lines, gas lines, water lines, and sewer lines, and all related equipment and parts and repair, maintenance, and replacement of the same under, on, or above these easement areas. These easement areas are further reserved for drainage. Within these easement areas, no structure shall be placed or permitted to remain and no plantings or other materials shall be placed or permitted to remain in any manner which will interfere with the installation, maintenance, repair, and replacement of utilities except as permitted by the public utility using said easement or which will interfere with drainage. The easement area shall be maintained continuously by the Owner of the Lot subject to the Easement, except for those easements for which a public authority or utility is responsible. In the event TCC is added to these Covenants as set forth in Section 2, the easements created by this Section 24 shall become easements for the benefit of the Lots in ICC and TCC and their respective Owners. These easements will run with the land. The statement of the purpose for the easement does not constitute a representation by Developer that any stated utility will be available, installed, or maintained except that electrical lines and telecommunication lines are to be installed and maintained by and/or for the utility company providing the same. Section Perpetual easements for the Premises are granted over, across, and under the respective Lots and parcels of land in the locations for easements set forth on the Certified Plat of ICC which has been made a part hereof. If TCC is added, perpetual easements for TCC are granted over, across, and under the respective Lots and parcels of land in the locations for easements set forth on the Certified plat of TCC which has been made a part hereof. All perpetual easements will run with the land. Section All claims for damages, if any, arising out of the construction, maintenance, replacement, and/or repair of the utilities or on account of temporary or other inconvenience caused thereby against the Developer or any utility company or municipality, township, county, or any of their 11

12 agents or servants are waived by the Owners of the Lot(s), their successors, and assigns by the act of acquiring a portion of the Premises. Developer reserves the right to change the layout, use, or to discontinue any street or way shown on the Certified Plat of the Premises or part thereof not necessary for ingress and egress to or from a Lot or the Premises, including TCC if added. Section A perpetual easement is hereby granted from the dedicated roadway at the point at which it touches the northerly line of what is reflected on the plat as the un-meandered lake and which is commonly referred to as Ice Tea Pond for access to and use of Ice Tea Pond. Access to Ice Tea Pond for Owners is only available from the roadway. Kayaks, canoes, and other non-motorized water craft may be used on Ice Tea Pond. As an exception, watercraft may have a battery-operated electric trolling motor. This easement applies only to that area covered by water. No water craft may be beached on the shore of Ice Tea Pond except at the access point as necessary to launch or remove the water craft. The owners of property constituting Ice Tea Pond hereby grant a perpetual easement for that portion of their property under water which forms Ice Tea Pond. Ice Tea Pond may be used only by Owners of Lots in ICC and, if added, TCC, and their guests. It is not open to the public. The easement created relative to Ice Tea Pond is perpetual and runs with the Property. Developer also reserves the right to grant one or more easements to allow Ice Tea Pond to be used for stocking, development, and harvesting of fish by nets or other methods. Any such easement will include a right of access and may run with the Property. Section If Developer adds TCC and if Developer creates an access easement to Tea Cracker Lake through TCC property, that easement will be created by the execution of a separate document by Developer. In the event such an easement is created, which creation is in the sole discretion of Developer, owners of Lots in ICC and their guests may be extended the privilege on a non-exclusive basis, with owners and guests of Lots in TCC to access Tea Cracker Lake through the Easement created, if created. The access will be for walking access only for ICC Owners and their guests. The only water craft that may be launched on Tea Cracker Lake through the easement created by Developer will be un-motorized kayaks, canoes, and similar non-motorized types of water craft. No boats with motors are allowed except for battery-operated electric trolling motors. Owners of Lots in TCC may have additional rights to the use of the easement for launching and retrieving of additional types of water craft. No ICC Owners or their guests will be allowed to beach a water craft on Tea Cracker Lake upon property constituting TCC, other than in the easement area while actively in the process of launching or retrieving the watercraft except with the express consent of the Owner of the TCC Lot upon which the beaching occurs. Any such easement will prohibit all motor vehicle access to the easement area by owners of ICC or their guests. Further restrictions, rules, and 12

13 regulations may be set forth in the easement document. There is no obligation of Developer to create such an easement. Use of the easement may be conditioned upon being current in payment of assessments made by any home owners association established by Owners of ICC and, if added, TCC or pursuant to Section 32 of this Agreement. Section 25. Mortgages. The breach of any of the foregoing Covenants shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith for value as to any Lot or Lots or portions of Lots in the Premises but these Covenants shall be binding upon and effective against any mortgagee or trustee or owner, whose title or whose Grantor s title is or was acquired by foreclosure, trustee sale or otherwise. Section 26. Waiver. No delay or omission on the part of the Developer or the owners of any Lots in the Premises in exercising any right, power or remedy herein provided, in the event of any breach of the Covenants herein contained, shall be construed as a waiver thereof or acquiescence therein. No right of action shall accrue nor shall any action be brought or maintained by anyone whatsoever against the Developer for or on account of its failure to bring any action on account of any breach of these Covenants or for imposing restrictions herein which may be unenforceable by the Developer or any other party. Section 27. Architectural Review Committee. All Architectural Review Committee structures and fences to be constructed, erected, or have exterior alteration require that Plans and Specifications be submitted and approved by the Architectural Review Committee prior to the start of construction all as set forth in Section 7. Initially the Architectural Review Committee will be the Developer or an agent designated by the Developer. The Architectural Review Committee will also be subject to the following terms and provisions: Section The Architectural Review Committee will be the Developer or an agent designated by the Developer until the sale of all Lots in ICC and, if added, TCC. Section A review fee will be paid to the Architectural Review Committee by the Owner submitting the plans for each review. The review fee will be a fee determined and set by the Architectural Review Committee. Section The Architectural Review Committee will have the power and authority to transfer its rights pursuant to this Agreement to a Home Owners Association, or an architectural firm, in the discretion of the Developer, at any time. 13

14 Section The Architectural Review Committee may adopt Guidelines in addition to those provisions set forth in this Declaration of Restrictive Covenants and Reservation of Easements, and any amendments thereto. These Guidelines will be followed for any structure or fence being constructed within ICC, and TCC if added, and for any exterior alteration unless waived in writing by the Architectural Review Committee. Section In the event of a violation of the requirement of preapproval of Plans and Specifications or in the event the Plans and Specifications as approved are not followed or complied with, Developer, the Architectural Review Committee, or a home owners association may invoke one or more of the following remedies: Section Impose a special charge upon an Owner of not more than $100 for each calendar month or part of a calendar month during which the violation exists. Each calendar month constitutes a separate violation. Any such imposed charge shall become a lien upon the property upon the filing of a lien notice with the Becker County Recorder. Section Cause the violation to be cured and charge the cost thereof to the owner. Section Obtain injunctive relief against the continuation of the violation. 14

15 Before invoking any such remedy, the Architectural Review Committee shall give the owner notice and an opportunity for a hearing. Any assessment or charge imposed under this Section which remains unpaid for a period of ten days or more shall become a lien recorded upon the Lot involved effective immediately upon a Notice of Lien being recorded with the Becker County, Minnesota Recorder. These assessments and charges will be an obligation of the owner. This lien and obligation may be collected by the Developer, the Architectural Review Committee or, if established, authority of the Architectural Review Committee having been turned over to the Home Owners Association, the Home Owners Association. Section 28. Right to Enforce. The restrictions set forth shall run with the land and bind the present Owner or Owners, their heirs, administrators, executors, successors and assigns. All parties claiming by, through or under them, shall hold subject to and hereby agree and covenant with the Owners of said Lots, their heirs, executors, administrators, successors and assigns, and with each of them, to conform to and observe said restrictions as to the use of said Lots and construction of improvements thereon. No restriction, however, shall be personally binding on any person except in respect to breaches committed during his/her or their ownership of the particular property upon which such violations occurred. For any violations of the covenants herein set forth, the Developer or owner(s) of any Lot(s) or a homeowner's association or common ownership organization made up of Owners of Lots in ICC (and/or TCC if it is added) shall have the right to sue for and obtain an injunction, prohibitive or mandatory, to prevent the breach of the covenants or to enforce legal action for damages. Damages may be obtained from the offender or Owner of the Lot from which offender operated only. Failure of the Developer or others who have a right to enforce any of the restrictions or covenants herein set forth to bring an action at the time of the violation shall in no event be deemed a waiver of the right to do so thereafter. Developer is under no obligation to bring an action to enforce these restrictions and is not liable for any damages caused by failure to exercise or enforce a right. In the event of the addition of TCC as set forth in Section 2, the right to enforce the Covenants and Restrictions set forth in this document shall be held by the Developer and any Owner of a Lot in ICC or TCC or a Home Owners Association or common ownership organization made up of owners of Lots in ICC and/or TCC. Section 29. Severability. In the event any one or more of the foregoing Covenants is declared for any reason by a court of competent jurisdiction to be null and void the judgment or decree shall not in any manner whatsoever affect, modify, change, abrogate or nullify any of the Covenants not declared to be void or unenforceable but all of the remaining Covenants not expressly held to be void or unenforceable shall continue unimpaired and in full force and effect. Section 30. Dedicated Right. The Premises shall be subject to any and all rights and privileges the County of Becker or State of Minnesota may have acquired 15

16 through dedication or the filing or recording of maps or plats as authorized by law and provided further that no Covenants or acts performed shall be in conflict with any Zoning or Building Code or other applicable law of the County of Becker or State of Minnesota. Section 31. Developer. Section Developer Tea Cracker, LLC, and its successors and assigns is the Developer described herein. The Developer shall have the right to grant and convey all of its rights and its obligations to enforce these covenants to a successor Developer, a homeowner's association, community association or other entity, membership of which is available to Owners of Lots constituting ICC, and if TCC is added, then to the Owners of Lots constituting ICC and/or TCC. On transfer of its rights and obligations, Developer will be released from all obligations hereunder. Section Termination of Developer s obligations under these Restrictive Covenants will not cause termination of the Restrictive Covenants or the dedication of easements which will remain in force and effect in accordance with the terms set forth in this document. Section 32. Home Owners Association. The home owners in ICC and, if added, in ICC and TCC, may agree to establish a Home Owner s Association as a body to act for the collective good of the Owner of ICC and TCC. The Developer will not be establishing a Home Owners Association. If established, the Developer will have the right to assign the responsibilities of the Architectural Review Committee to the Home Owners Association. The Home Owners Association will have the power to levy fines and assessments against Home Owners which fines and assessments will become liens against the Property and the Owner of that Property upon being recorded with the Becker County Recorder s office. Section 33. Amendment. These Restrictive Covenants may be amended by the Developer as long as the Developer owns one Lot in ICC and/or in TCC, if added, or subsequent to Developer transferring all Lots in ICC and TCC, if added, by majority vote of the Owners of Lots One (1) through Fourteen (14), inclusive, Block One (1) and Lots One (1) through Five (5), inclusive, Block Two (2) of ICC. In the event of the addition of TCC, then a majority of the Lots in ICC and TCC must approve any such amendment. No amendment, other than by Developer, may affect an easement granted hereunder except by unanimous consent of the Owners of all Lots in ICC, and if TCC is added, then the vote of the Owners of all Lots in ICC and TCC. Dated: December 8,

17 Tea Cracker, LLC By: Larry S. Nygard, President STATE OF NORTH DAKOTA ) : ss. COUNTY OF CASS ) On this 8 th day of December 2006, before me, a Notary Public in and for said County and State, personally appeared Larry S. Nygard, to me known to be the president of Tea Cracker, LLC, the limited liability company that is described in and that executed the foregoing instrument, and acknowledged before me that such limited liability company executed the same. Notary Public: CONSENT American Federal Bank does hereby consent to the above Declaration of Restrictive Covenants and Reservations of Easements. Dated: December 8, AMERICAN FEDERAL BANK By: Mark DuBord, Vice President STATE OF NORTH DAKOTA ) : ss. COUNTY OF CASS ) On this 8 th day of December 2006, before me, a Notary Public in and for said County and State, personally appeared Mark DuBord, to me known to be the vice 17

18 president of American Federal Bank, the entity that is described in and that executed the foregoing instrument, and acknowledged before me that such entity executed the same. Notary Public: 18