KNOW ALL MEN BY THESE PRESENTS:

That the TRANSAMERICA TITLE INSURANCE COMPANY, an Arizona corporation, as Trustee, being the owner of the following described property situated in the County of Coconino, State of Arizona, to-wit:

Lots 605 to 709, inclusive, FOREST LAKES ESTATES UNIT EIGHT, according to the plat of record in the office of the County Recorder of Coconino County, Arizona, in Case  2  of Map    104      thereof; and desiring to establish the nature of the use and employment thereof, does hereby declare said premises subject to the following expressed conditions and stipulations as to the use and enjoyment thereof, thereof; to-wit:

1. That all lots in said FOREST LAKES ESTATES, UNIT EIGHT, shall be known and described as RESIDENTIAL building lots and shall be used for no other purpose, except as follows:

(a) Churches, or similar places of worship, including a parish house, and convents and dormitories accessory thereto, open land and outside recreational facilities in conjunction with such project may be permitted.

(b) Schools colleges, universities and dormitories accessory thereto, including athletic field, playground and swimming pools, whether private or public.

(c) Public utility buildings and facilities provided that no public business office of said public utility and no repair or storage facilities may be maintained thereon.

(d) Publicly owned and operated buildings or properties, including, but not limited to parks and playgrounds, but excluding repair and storage facilities.

2. All structures shall be of new materials, or of such materials as shall be approved by the ARCHITECTURAL COMMITTEE.  Simplicity of design, good proportion and an appearance of naturalness to the forest setting, are desired in the completed structure.  House-trailers may be used as dwelling houses when the same contain inside bathrooms the said plumbing meets the requirements provided in paragraph 4 below.

3. No structure shall be commenced or erected on any lot until the design, location, and kind of materials to be used have been approved, in writing, by a three member ARCHITECTURAL COMMITTEE, the first committee being composed of the MOGOLLON INVESTMENT CORPORATION, the other two members appointed by it, which committee shall act until 75% of the lots have been sold by the Trustee and then by a committee elected by a majority of the owners of said lots in said FOREST LAKES ESTATES UNIT EIGHT.  Any two (2) of the members of such committee may pass upon such design, location and kinds of materials.  In the event such committee fails to approve or disapprove plans within thirty (30) days after written request so to do, then such approval of the committee will not be required, provided, the design, location and kind of materials and buildings to be built shall be governed by all of the restrictions herein set forth and said buildings shall be in harmony with existing buildings and structures in the immediate vicinity in said subdivision.

4. No advertising signs (except "For Rent " or "For Sale" signs, no larger than 2 X 3 feet), billboards, unsightly objects or nuisance shall be erected placed or permitted to remain on any of said lots, nor shall the premises be used in any way for any purpose which may endanger the health or unreasonably disturb the holder of any lot in said subdivision; provided, however, that the subdivider and their agents may erect and maintain signs advertising the sale of lots in said subdivision.

5. Until such time as sewers may be available all bathrooms, toilets or sanitary facilities shall be connected to septic tank systems constructed according to the specifications of the Coconino County Department of Health.

6. Each owner of any lot shall be responsible for keeping said lot free of debris or waste.  No portion of any lot shall be used for open storage of any nature, except that during the period of construction of any structure there may be stored, adjacent to said structure, materials for use in such structure for a period not to exceed six (6) months. No temporary structures, such as tents, shall be permitted on any lot for a period to exceed one hundred twenty (120) days.

7. The storage, collection, disposal, and removal of all debris, garbage. and trash must be in accordance with County, State, and Forest Service requirements.  All incinerators or other equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition.

8. In the event that during the period in which these restrictions shall govern, the Arizona State Highway Commission should designate a "State Highway" as the same is defined in Section 18-101, Arizona Revised S (1956), across said FOREST LAKES ESTATES, UNIT EIGHT, or any portion thereof, then the lots which immediately adjoin said "State Highway", or any portion thereof, may be used for such commercial purpose as the same may be zoned by the Planning and Zoning Commission of the County of Coconino Arizona, when such zoning shall have been approved by the Board of Supervisors of said County mid by the ARCHITECTURAL COMMITTEE referred to herein.

9. The foregoing restrictions run with the land and shall be binding until September 1, 1978, at which time said covenants shall be automatically extended for successive periods of five (5) years, unless, by a majority of the then property owners, it is agreed to change these covenants in whole or in part.

Deeds of conveyance of said property, or any part thereof, may contain the above restrictive covenants by reference to this document, but whether or not such reference is made in such deeds, or any part thereof, each and all such restrictive covenants shall be valid and binding upon the respective grantees.  Violation of any one or more of such covenants may be restrained by any court of component jurisdiction and damages awarded against such violator. Each and every grantee expressly consents to the entry of a mandate in accordance with said covenants and further expressly consents to the award of reasonable attorney’s fees against him in any action brought to enforce any one or more of such restrictive covenants, provided, however, that a violation of these restrictive covenants, or any one or more of them, shall not affect the lien of any mortgage which may hereafter be placed of record upon said tract or any part thereof.

Should any of the restrictions herein contained be held to be invalid or void, such invalidity or voidance of such restrictions shall in no way affect the validity of the rest of said restrictions.

IN WITNESS WHEREOF, the TRANSAMERICA TITLE INSURANCE COMPANY, an Arizona corporation, as Trustee, has hereunto caused its corporate name to be signed and its corporate seal to be affixed and the same to be attested by the signatures of its duly authorized officers this 28th day of June 1967.

the TRANSAMERICA TITLE INSURANCE COMPANY

by:           

      Trust Officer

STATE OF ARIZONA

County of Maricopa .

            On this, the 28th day of June 1967, before me the undersigned officer, personally appeared, Vincent A. Pellerito, who acknowledged themselves to be the Assistant Vice President and Assistant Secretary respectively, of the TRANSAMERICA TITLE INSURANCE COMPANY, a corporation, and that they as such officers, being authorized to do so, executed the foregoing instrument for the purpose therein contained by signing the name of the corporation, as Trustee, by himself as such officers.

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

                        Notary Public

My commission expires:      3/22/68