DECLARATION OF RESTRICTIVE COVENANTS OF THE RANCH SUBDIVISION

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DECLARATION OF RESTRICTIVE COVENANTS OF THE RANCH SUBDIVISION THIS DECLARATION OF RESTRICTIVE COVENANTS is made this day of September, 2013, by 4T Ranch Developers, Inc. ( Developer ). WITNESSETH: WHEREAS Developer is the owner of the following real property located in Burleigh County, North Dakota: Township 140 North, Range 80 West of the Fifth Principal Meridian: Section 9: All (hereinafter described as the Real Property ); and WHEREAS, the Real Property has been platted into residential lots, which are presently known as The Ranch Subdivision of the City of Bismarck, County of Burleigh, North Dakota; and WHEREAS, the Developer is about to sell and convey some or all of said residential lots, located within said plat, and before selling or conveying any of the said lots, desires to subject all of the said lots to certain conditions, restrictions, and obligations for the protection and benefit of the Developer and any and all future owners of any of the said lots. NOW THEREFORE, in consideration of the premises, Developer hereby certifies and declares that it has established and does establish the following conditions, covenants, and restrictions for the protection and benefit of all of the Real Property, and has fixed and does hereby fix the following additional protective conditions, obligations, and restrictions upon and subject to each and every lot within the Real Property to be hereafter held, used, occupied, leased, sold and/or conveyed. Each and every condition and restriction shall inure to the benefit of, be binding upon and pass with the Real Property, and each and every lot and/or parcel thereof, and shall inure to the benefit of, apply to, and bind the respective successors in title or interest of Developer. The reservations and conditions to which the aforesaid conveyances and restrictions apply and to which they are subject are as follows: 1. Purpose: The lots within the Real Property shall be used for residential purposes as set out on the development plan of Developer, including all future amendments to the development plan by Developer. Developer shall have the absolute right and ability to change the plan without notice, in the sole discretion of Developer. Every person who purchases a lot in the above-described Real Property waives any and all objections to the purposes set out by the Developer and consents to such development, as well as all Page 1 of 8

amendments and changes to the development plan. Such waiver shall be binding on all future transferees and future owners of any lot in the Real Property. 2. Architectural Review Committee: No dwelling or other structure shall be erected on any residential lot, and no landscaping or fence construction shall take place, until the plans and specifications, along with the proposed site for such structure, have been submitted to and approved by The Architectural Review Committee (Review Committee). The Review Committee shall be composed of three individuals appointed by the governors of 4T Ranch Developers. The qualifications and appointment of Review Committee Members shall be at the sole discretion of the Developer. 3. Requests Presented to the Review Committee: The Review Committee must act on any request within thirty (30) days of receiving a written request to construct a dwelling or other structure. The written request must provide the Review Committee the following information: a. The name and address of the building contractor; b. The precise location of the structure on the lot; c. A drawing illustrating the height, width, depth, and shape of any proposed structure, including fences, patios and decks; d. A drawing illustrating any proposed changes to the grading of the lot; e. A list of materials to be utilized on the structure s exterior and the color thereof (the Review Committee has the right to request a sample for review); and The written application shall be mailed via certified mail to 4T Ranch Developers, Inc., P. O. Box 2444, Bismarck, ND 58502, and will be distributed to the Review Committee by the governors of 4T Ranch Developers. (The governors of 4T Ranch Developers shall provide written notice to all lot owners of any change of mailing address for the 4T Ranch Developers.) If the Review Committee fails to approve or reject the proposal by sending written or oral notice to the applicant within thirty (30) days of receipt of the applicant s written request, the proposal shall be deemed accepted and no further approval is necessary. The Review Committee shall review the application to assure its compliance with the restrictive covenants and any amendments thereto, and to ensure the proposed structure, including the materials, workmanship, and appearance thereof, maintain the integrity and harmony of the subdivision. In the event of a conflict between the original restrictive covenants and revised restrictive covenants, the latter shall control. A simple majority shall be necessary to approve the plans and specifications for the erection or modification of a structure. Page 2 of 8

4. Maintenance Committee. The community green space shall be overseen by a Maintenance Committee. The Maintenance Committee shall be composed of three individuals appointed by the governors of 4T Ranch Developers. The qualifications and appointment of Maintenance Committee Members shall be at the sole discretion of the Developer. The Maintenance Committee shall have the authority to collect an annual fee from each lot owner to cover the costs of maintenance and care of the community green space. The fees collected by the Maintenance Committee shall be used for costs associated with the care, maintenance and upgrading of the community green space, including but not limited to repair of the walking trails, mowing, spraying for weeds, planting shrubs and trees, maintenance of any structures or objects such as picnic tables, shelters, benches, signs, and obtaining liability insurance. The amount of the fee shall initially be $240 annually, but that fee shall be reviewed periodically by the Maintenance Committee to ensure it is adequate to maintain the green space, and the Maintenance Committee shall provide written notice to all lot owners of any change in maintenance fees. 5. Residential Lot Zoning: Lots 1-2, Block 1, are zoned R1 and property owners of these lots shall comply with all Burleigh County R1 zoning ordinances, including setbacks. The remainder of the residential lots are zoned R2 and property owners of those lots shall comply with all Burleigh County R2 zoning ordinances, including setbacks. The R1 lots shall require installation of a private septic system. The R2 lots shall share a community sewer/septic system. 6. Green Space: Lot 1, Block 2, Lot 1, Block 3, Lots 1 and 2, Block 4, and Lot 1, Block 5 in Phase 1 of THE RANCH SUBDIVISION shall constitute community green space, for the common use of property owners in said Subdivision. Upon completion of the Subdivision, or any phase of the Subdivision, the Developer shall have the authority, in its sole discretion, to transfer via quitclaim deed an undivided interest in the green space to each lot owner and set up a property owners association to oversee the maintenance of the green space. 7. Land Use and Building Type: All residential lots shall be used solely as residential lots, and no structure shall be erected, altered, placed or permitted on any residential building lot other than: one (1) single family dwelling, not to exceed three (3) stories in height, which single family dwelling in all cases shall be complete with an attached three stall garage; and an outbuilding(s) upon the conditions set out hereafter. 8. Building Location: Setbacks for location of buildings on residential lots are dictated by Burleigh County zoning ordinances and property owners must comply with these setback restrictions. Page 3 of 8

9. Dwelling: Any home constructed on a lot shall have a minimum main floor area of the main structure, exclusive of one-story open porches and garages, of not less than one thousand four hundred (1,400) square feet for a one-story dwelling, with the exception of lots 2-6, Block 6, where the minimum shall be one thousand two hundred (1,200) square feet. In the case of a split-level dwelling, the total above ground level(s) shall not have less than one thousand four hundred (1,400) square feet, with the exception of lots 2-6, Block 6, where the minimum shall be one thousand two hundred (1,200) square feet. In the case of a two story (not including basement) dwelling, the above ground floor living level shall be not less than one thousand (1,000) square feet and the total finished square footage area, excluding basement, shall not be less than one thousand six hundred (1,600) square feet. Any home constructed on a lot shall have an attached garage with a minimum of three (3) stalls, unless permission is granted in advance by the Architectural Review Committee. Any building constructed shall adhere to all applicable building codes. 10. Exterior Appearance: Exterior color schemes shall blend with the natural environment and shall not detract from the overall appearance of the Development. Siding and roofing materials must be approved by the Review Committee prior to the start of construction and prior to replacement of any existing siding or roofing. The front or street side of any structure shall contain twenty percent (20%) rock, stone or brick-faced material. 11. Outbuildings: Any and all detached structures and storage buildings shall be constructed in the same style, form and appearance as the principle dwelling on the property, and of siding and roofing materials that are of the same type, quality and color utilized for the principle dwelling structure. Any outbuilding must be erected either at the same time or after the principle residence is built. In no case shall the total size of any and all outbuildings on any residential lot exceed one thousand two hundred (1,200) square feet in size for R2 lots and one thousand four hundred (1,400) square feet in size for R1 lots. 12. Driveways and Parking Pads / Parking of Vehicles: All driveways and parking pads must be constructed of asphalt, concrete or Class 5 gravel, from the road to the attached garage and/or outbuildings. In addition to a driveway, each property owner shall be allowed one (1) parking pad for the outdoor storage of a recreational-type vehicle (such as a camper, boat, trailer or pontoon) or a utility vehicle (such as a small tractor, bobcat, etc.). Other than on the above-described parking pad, no recreational vehicle, camper, boat, trailer or pontoon or utility vehicle shall be parked on any lot, unless it is stored indoors. No dismantled equipment or vehicles, and no vehicles that are not in running condition, shall be stored or kept on the property, unless they are stored indoors. Page 4 of 8

13. Temporary Structures: No trailer, mobile home, motor home, basement, tent, shack, garage, barn or other outbuilding erected in the tract shall at any time be used as a dwelling, temporarily or permanently, nor shall any residence of a temporary character be permitted. 14. Construction Materials: All dwelling structures shall be constructed on site. No existing or prefabricated, manufactured, trailer or modular-type housing shall be moved, placed or permitted on any residential lot. No construction material of any nature shall be moved upon any lot prior to sixty (60) days before the start of construction and any building started shall have its exterior completed within one (1) year from the date of its starting. All construction debris is to be removed within thirty (30) days after occupancy or finishing of a structure s exterior. During the building process, care must be taken by the lot owner and the building contractors to contain any construction debris to the lot, and to remove such debris on a regular basis so as to keep construction debris from impacting green areas and the surrounding countryside. 15. Fencing: No fencing shall be erected without prior approval by the Architectural Review Committee. All fencing shall be compatible with the neighborhood, fencing is restricted to the back and side yards of each lot and may not extend toward the street beyond the front of the residence unless approved by the Review Committee, and no fence shall exceed six (6) feet in height. No chain link or wire fences shall be permitted, except with proper screening from neighbors and public view and at the discretion of the Review Committee. All fences shall be kept in a state of good repair. 16. Landscaping: Each property owner, within sixty (60) days of the completion of a residence, shall landscape all yards fronting a street, provided, however that a right to extend the time period for completion of the landscaping may be sought, in writing, and granted at the sole discretion of the Review Committee in the case of extenuating circumstances. If the home is completed during the winter months, then the property owner must complete the landscaping within sixty (60) days after the completion of the residence or within sixty (60) days after the frost is out of the ground, whichever is later. 17. Lot Appearance: All lots are to be kept free of overgrown weeds and grasses and must be mowed to maintain an attractive appearance. Noxious weeds must be controlled by each lot owner to the satisfaction of the Burleigh County Weed Board. If a lot owner is given notice of necessary maintenance and does not comply, the cost of said maintenance will become a lien thereon and will be billed to the owner of the lot. Unsightly trailers, cars or anything deemed and notified as inappropriate to maintain the class of the development shall be removed at the owner s expense within thirty (30) days. Lots without structures shall be kept free of all building materials, detached structures, fences, trailers, vehicles, mobile homes, shacks or other unsightly debris. All buildings shall be Page 5 of 8

kept in a state of repair. Each property owner shall exercise as much care as is possible to retain natural vegetation such as trees and shrubs. Vegetable gardens shall be restricted to the rear and side yards of each lot. 18. Livestock and Pets: No animals, livestock or poultry of any kind shall be raised, bred or kept on any lot, except that dogs, cats or other household pets may be kept provided they are not kept, bred or maintained for any commercial purpose. No more than two (2) dogs over the age of four (4) months may be maintained on each lot. All dogs shall be confined by fence or leash or be under the control of the owner at all times. In the interest of the safety of residents and the preservation of local wildlife, dogs shall not be allowed to run at large at any time. The owner of any animal, or any person having the custody or control of any animal, shall be responsible for cleaning up any feces of the animal and disposing of such feces in a sanitary manner. 19. Easements: Easements for installation and maintenance of utilities and drainage facilities are reserved as shown on plat. Within these easements, no structure, planting or other materials shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities, or which may change the direction of flow of drainage channels in the easements or which may obstruct or retard the flow of water through drainage channels in easements. The easement area of each lot and all improvements in it shall be maintained continuously by the owner of the lot, except for those improvements for which a public authority or utility company is responsible. No utility shall be placed on the boundary line of the easement. 20. Trailers: No Semi, Semi-trailer, dump truck or heavy construction equipment, or any part thereof shall be stored or permitted to remain on any residential lot or street overnight, unless it is being used during the construction process. 21. Storage Tanks: No elevated tanks of any kind shall be erected, placed or permitted upon any lot, and no tanks shall be used for storage, such as gas, fuel oil, gasoline or oil, on any lot, except propane or butane solely for household use; and if same is used on a lot then said tanks shall be located in the rear yard and must be buried or screened by a wall or hedge to sufficiently conceal same from view from neighboring lots, roads and streets. 22. Telephone, Electrical and Power Lines: Above ground telephone, electrical and power distribution/service lines shall be prohibited except during emergencies or repairs. 23. Signs: No signs of any kind shall be displayed to the public view on any lot in the residential area except for advertising the property for sale or rent or used by a builder or subcontractor to advertise the property during the construction and sale period. Page 6 of 8

24. Home Businesses: No lot or any portion thereof shall at any time be used for any trade, profession, manufacturing or business of any description, except for in-home businesses as allowed by Burleigh County Zoning Ordinances, Article 6, Section 2; nor shall any noxious or offensive activity be carried on; nor shall anything be done thereon which may become an annoyance or nuisance to the neighborhood. 25. Garbage and Refuse Disposal: All trash, other refuse, and trash cans and containers shall be kept in a garage or in enclosures such that they will be concealed from the view of streets and lots which are adjacent to the lot on which they are located except on days garbage pickup is made. Trash, garbage or other waste shall be kept in sanitary containers and removed regularly from the subdivision at the expense of the property owner, and shall not be burned by open fire, incinerator or otherwise on the subdivision or any part thereof. No material may be kept on the land which shall emit a foul or obnoxious odor. 26. Motorized vehicles: ABSOLUTELY NO MOTORIZED VEHICLES OF ANY KIND ARE ALLOWED IN ANY OF THE GREEN SPACE AT ANY TIME, except those vehicles used for the maintenance of said green space. No off-road vehicles, including without restricting the generality of the foregoing, snowmobiles, all-terrain vehicles, dirt bikes or any other motorized vehicles customarily used for off-road transportation, shall be used or operated on any residential lot with the exception of leaving and returning to said lot, unless used for maintenance purposes. 27. Open fires: All fires on any residential lot must be started and kept in a stone, concrete, steel or brick fire pit located in a watered/mowed lawn area. Open fire in green space shall be allowed only in fire pits approved or provided by Developer. All guidelines set out by the North Dakota Rural Fire Danger Guide must be followed and any burn ban issued by Burleigh County must be complied with. 28. Mail Boxes: All mailboxes and mailbox holders, and their placement, shall adhere to the applicable specifications of the U.S. Postal Service. Each lot owner shall be responsible for the maintenance of their mailbox so as to keep it in a state of repair at all times. 29. Subdivision of Lots: No lot shall be subdivided. 30. Term: These covenants are to run with the land, and shall be binding on all parties and all persons claiming under them for a period of thirty (30) years from the date these covenants are recorded after which time said covenants shall be automatically extended for successive periods of ten (10) years, unless an instrument signed by at least seventyfive percent (75%) of the then owners of the lots has been recorded agreeing to change said covenants in whole or in part. No such waiver, termination, or modification shall be effective until the property instrument, in writing, shall be executed and recorded in the Page 7 of 8

office of the County Recorder, Burleigh County, State of North Dakota; provided, however, that no such modification shall be effective or recorded prior to the time that the same has been submitted in writing to the Burleigh County Zoning Board and the same has been approved by that governmental agency or its successor. 31. Enforcement: These restrictions shall operate as covenants running with the land for the benefit of any and all persons who now may own, or who may hereafter own, property in The Ranch Subdivision, and such persons are specifically given the right to enforce these restrictions through any proceedings, at law or in equity, against any person or persons violating or threatening to violate such restrictions, and to recover any damages suffered by them for any violation thereof. 32. Severability: Invalidation of any one of these covenants by judgment or court order shall in no way affect any of the other provisions which shall remain in full force and affect. IN WITNESS WHEREOF, the owners have caused these presents to be signed this day of, 2013. Page 8 of 8