04-i4486 

BOOK       1304   PA.GE   615 

BYLAWS AND DECLARATION OF COVENANTS 
            AND RESTRICTIONS 

  A CONSOLIDATED PLAN 
                         OF 
THE KNOLLS ESTATES   
PLANNED UNIT DEVELOPMENT 

OWNERS' ASSOCIATION, INC 
I 

BOOK 1304 PAGE 616 
CONTENTS 
Page 

Section 1: 
1.01 
1.02 
1.03 
1.04 
1.05 
1.06 
1.07 
1.08 
1.09 
1.10 
1.11 
1.12 
1.13 
1.14 
1.15 
1.16 
1.17 
1.18 
1.19 
1.20 
1.21 
1.22 
1.23 

Definitions 
Administration 
Common Areas 
Consolidated Plans 
Design Committee 
Developer 
Guest 
Judicial Council 
Maintenance Assessment 
Maintenance Fund 
Owner 
Private Area 
Private Recreational Area 
Private Way 
Resident of the Knolls Estates 
Property Owner 
Story 
Knolls Estates PUD 
Knolls Estates Declaration 
Knolls Estates Master Plan 
Knolls Estates PUD Association 
Knolls Estates Rules and Regulations 
Lot 
Lot Owner 

1 
1 
1 
1 
I 
1 
1 
1 
I 
1 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2  

Section 2: 

Subjection of Property to the Consolidated Plan of the Knolls Estate PUD 

2.01 
2.02 
2.03 
Section 3 
3.01 
3.02 
3.03 
3.04 
3.05 

Additional Areas 
The Knolls Declaration 
Effective Date 
Land Classification & Uses Of The Knolls Estates 
Classification/Waiver Of Partition: 
Private Areas 
Private Ways 
Common Areas 
Use Restrictions 

3 
3 
3 
4 
4 
4 
4 
4 

         BOOK 1304 PAGE   617 

		Page 	
Section 4: 	The Knolls Estates As A PUD 	10 	
Section 5: 	Consolidation of Lots Within Private Area 	10 	
Section 6: 	Rules & Regulations & Their Enforcement 	11 	
6.01 	Rules & Regulations 	11 	
6.02 	Enforcement Of the Rules & Regulations 	11 	
6.03 	Right to Notice: Opportunity To Be Heard 		
	Appeals In Connection With Fines 	12 	
6.04 	Violation Of Declaration Or A Design 		
	Committee Rule By Prohibited Activity 	12 	
6.05 	Violation Of Declaration By Prohibited Activity 	12 	
6.06 	Payment Of Fines 	12 	
6.07 	The Knolls Estate Judicial Council 	13 	
Section 7: 	Maintenance Fund & Reserve Fund - Utility Fees 	13 	
7.01 	Budgets: 	13 	
7.02 	Imposition of Regular Assessments 	14 	
7.03 	Special Purpose Assessments 	14 	
7.04 	Maintenance Fund 	15 	
7.05 	Default In Payment Of Assessments & Maintenance 	16 	
7.06 	Annual Accounting 	17 	
7.07 	Indemnity 	17 	
7.08 	Establish Of Reserve Fund 	18 	
7.09 	Procedure For Reserve Fund 	18 	
7.10 	Utility Charges 	19 	
Section 8: 			
8.01 	Functions Of Design Committee 	19 	
8.02 	Members: Terms & Approval 	19 	
8.03 	Violation Of The Knolls Estates PUD 		
	Declaration Or Design Committee Rules 		
	By Non-Qualified Improvements 	20 	
8.04 	Review & Appeal By Applicant 	20 	
8.05 	Failure To Act 	21 	
8.06 	Non-Waiver 	21 	
8.07 	Estoppel Certificate 	21 	
8.08 	Liabilities 	22 	

                                                                             BOOK 1304 PAGE 618 

		Page 	
Section 9: 	Administrator 	22 	
9.01 	Powers Of Responsibility Of The Administrator 	22 	
9.02 	Delegation Of Functions: Appointment Of Manager 	23 	
9.03 	Limitation of Liability 	23 	
9.04 	Performance Of Function & Required Transfer 	23 	
Section 10: 	The Knolls Estates Association 	24 	
10.01 	Membership In Association 	24 	
10.02 	Voting Rights 	24 	
10.03 	Incorporation 	24 	
Section 11: 	Private Sewers 	26 	
11.01 	Obligation Of The Organization 	26 	
11.02 	Corporation Rights Of Easement 	26 	
11.03 	PUB Easement Over Security Holders Lots 	27 	
11.04 	Damage To Or Destruction 		
	Of Sewer System by Owner 	27 	
11.05 	Use Other Than For Residential Purposes 	27 	
11.06 	Installation Of On-site System 	27 	
11.07 	PlJD Shall Provide All Annual Inspections 	27 	
11.08 	Operating Costs & Payment 	27 	
11.09 	Operating Procedures & Specifications 	27 	
Section 12: 	Miscellaneous Provisions 	28 	
12.01 	Amendments 	28 	
12.02 	Joint Owners 	28 	
12.03 	Expenses & Attorney Fees 	28 	
12.04 	Non-exclusiveness & Cumulation of Remedies 	28 	
12.05 	Rights Of Entry 	29 	
12.06 	Interest 	29 	
12.07 	Construction: Severability: Numbers: Captions 	29 	
12.08 	Original Lot Divisions & Development Work 	29 	
12.09 	Assumed Risks By Lot Owners 	30 	
12.10 	Notices 	30 	

BOOK 1304 PAGE 619 
THE KNOLLS ESTATES PUD/CONSOLIDA1ED PLAN 
Section 1 
DEFINTI10N 
Set forth herein are definitions for certain terms used in The Knolls 
Estates CONSOLIDATED PLAN.
1.01 Administrator of The Knolls Estates: Administrator shall 
Mean the Developer until such time as the Developer has delegated 
And assigned to The Knolls Estates Owners' Association all of its 
Powers and responsibilities hereunder as provided in Section 9 herein. 
Thereafter the Administrator shall mean the person so appointed by 
the Owners' Association of The Knolls Estates PUD. 
1.02 Common Areas: Shall mean any area designated as such in 
a subdivision plat of The Knolls Estates PUD or in The Knolls Estates 
Declaration. 
1.03 Consolidated Plan of The Knolls Estates PUD Shall mean 
this instrument which is dated and recorded in the Deed Records of 
Douglas County, Oregon in Volume-18., at Page _1_. 
1.04 Design Committee: Shall mean the committee appointed 
pursuant to the provisions of Section 8 herein. 
1.05 Developer :Shall mean The Alaska Sutherland Knolls 
Corporation, a Nevada Corporation and its successors and assigns. 
1.06 Guest: Shall mean any person, other than a lot owner, who is 
authorized to occupy a residence or be present within the PUD with 
the direc:t or implied consent of a lot owner. 
1.07 Judicial Council: Shall mean the body designated to hear 
appeals of fines and penalties imposed pursuant to Section 6 hereof 
and from The Knolls Estates Design Committee pursuant to Section 8 
hereof, the membership of which shall be as set forth in section 6.07 
Herein. 
1.08 Maintenance Assessment: Shall mean any assessment 
imposed in accordance with Section 7 herein. 
1.09 Maintenance Fund: Shall mean the separate fund comprising 
all money collected for maintenance assessments together with all other 
monies added to the maintenance fund pursuant to the provisions hereof or 
at any Knolls Estate Declaration. 
 THE KNOLLS EST A TES PUD/CONSOLIDA TED PLAN 
 							 Page 1
BooK l304 PAGE 620 
1.10: Owner Shall mean property owner as the same is defined herein. 
1.11: Private Area: Shall mean any area designated as such in the 
subdivision plat of the PUD or in The Knolls Estates Declarations. 
1.12: Private Recreational Area: Shall mean any area designated as such 
in the subdivision plat of the PUD or in The Knolls Estates Declarations. 
1.13: Private Wav: Shall mean any area designated as such in the 
subdivision plat or The Knolls Estates Declaration. 
1.14: Resident of The Knolls Estates: Shall mean any person who is a lot 
owner or lessee of a lot in The Knolls Estates, together with members of 
his/her family provided that a person shall be a resident only during the 
period when he/she is in possession of his/her lot. 
1.15: Property Owner: Shall mean the person or persons who shall own 
legal title to any parcel of real property within The Knolls Estates P{;'D at 
the time of determination. 
1.16: Story That portion of a building included between the upper surface 
of any floor and the upper surface of the floor next above, except that the 
top most story shall be that portion of a building included between the 
upper surface of the top most floor and the ceiling above. A basement 
shall be counted as a floor and the ceiling above. A basement shall be 
counted as a story for the purposes of height measurement where more 
than one-half of its height is above the average level of the adjoining 
ground. 
1.17: The Knolls Estates PUD: Shall mean all real property made subject 
to this consolidated plan, 
1.18: The Knolls Estates Declaration: Shall mean any instrument 
previously recorded subjecting an area to the Plan of The Knolls Estates, 
and any instruments which may be recorded in the future subjecting areas 
to this document. 
1.19: The Knolls Estates Master Plan: Shall mean the plat of THE 
KNOLLS ESTATES PUD filed in the Deed Records of Douglas County 
Oregon in Volume 18 at Page l A, and IB, and shall include all 
subsequently filed Phases of the PTJD and amendments thereto. 
1.20: The Knolls Estates PUD Association: Also known herein as the 
"Owners' Association" of "Association" shall mean that certain non profit 
incorporation of which all owners shall be members and which shall 
assume responsibility for the PUD from the developer as set forth in 
section 10 herein. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
Page 2 

BOOK 1304 PAGE 621 
1.21: The Knolls Estates Ru1es & Regulations: Shall mean any rules and 
regulations adopted by the Administrator as Provided in Section 6 herein. 
1.22: Lot: Shall mean each lot described in any PUD subdivision Plat or 
partition of the PUD which may be designated as private area. 
1.23: Lot Owner: Shall mean the person or persons who hold legal title 
to any lot of land. Where lots are owned by more than one person, the 
designation "lot owner" shall be deemed to apply to all such owners 
collectively. 
Section 2 
SUBJECTION OF PROPERTY TO THE CONSOLIDATED PLAN OF 
THE KNOLLS ESTATES PUD 
"The Knolls Estates" shall be subject to the consolidated plan of the Knolls 
Estates PUD as herein provided. 
2.01: Addition or Withdrawal of Areas: Once the consolidated plan 
becomes effective, the Administrator of the plan shall retain the right to 
withdraw areas from The Knolls Estates PUD and the Consolidated Plan, 
or to subject other areas not included within The Knolls Estates PUD to the 
Consolidated Plan, but in any case shall do so only with the approval, by 
affirmative vote of not less than sixty percent (60%) of the votes cast by 
owners as provided herein. 
2.02 The Knolls Estates Declarations Shall: 
A. Describe the area. 
B.	Recite the purpose of the declaration to subject the area to the 
Consolidated Plan of The Knolls Estates PUD. 
C.	Designate, where applicable, which areas within the area are 
private areas, semi-public recreational or service areas, private 
recreational areas, or other type areas allowed by The Knolls 
Master Plan. Specifications must also, when necessary, show 
which portions of each lot are designated as build able or open 
areas, and impose any other use restrictions as may be 
appropriate with the Master Plan and recorded conditions, 
Covenants and Restrictions. 
2.03 Effective Date: From and after the date The Knolls Estates 
Declaration is filed in the Deed of Records of the County of Douglas, State 
of Oregon, the area designated herein shall be subject to the Consolidated 
Plan of the Knolls Estates PUD and to all covenants, conditions and 
restrictions contained therein. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
Page 3 

BOOK 1304 PAGE  622 
Section 3 
LAND CLASSIFICATION AND USES OF THE KNOLLS ESTA1ES 
3.01: Classification/waiver of Partition: Land classifications of areas 
subjected to the Consolidated Plan of The Knolls Estates and the land 
classifications within areas to be subjected to the Consolidated Plan of The 
Knolls Estates are private areas, common areas, private recreational areas, 
and private ways. The Administrator will retain title to common areas, 
private ways and other areas and classifications of property created in The 
Knolls Estates which are essential to the use and enjoyment of the lot 
owners until such time as all the lots are sold, at which time the Owners' 
Association shall acquire title. Except as otherwise provided herein, or by 
operation of the law, there shall be no partition of common areas, private 
ways or other property owned by The Knolls Estates PUD Association or 
dedicated for common use pending ultimate deeded transfer to The Knolls 
Estates Owners' Association. 
3.02: Private Areas: Restrictions on and rules and regulations governing 
the use of private areas within The Knolls Estates shall be set forth in The 
Knolls Estates Declaration which creates the entire PUD. By accepting a 
deed or lease of a private area within the PUD the grantee shall covenant 
that he or she will: 
a)	Use and permit the use of the property only in accordance with, 
and that he/she will abide by and cause all those who come upon 
his/her premises to abide by the restrictions, covenants and 
Conditions. 
1) Contained in the Bylaws of The Knolls Estates PUD 
2)	Contained in the Knolls Estates Declaration creating The 
Knolls Estates PUD: or 
3)	Provided for any future annexed areas included, should 
there be. 
b)	Abide by the rules and regulations promulgated. under the 
aforesaid restrictions, conditions and covenants. 
c)	Pay the Administrator, all amounts provided for in The Knolls 
Estates Declaration; and that his/her property will be subject to a 
lien or liens as provided in such instruments, 
3.03: Private Ways: Each owner and each resident of The Knolls Estates 
shall have a non-exclusive easement to use private ways for the purpose of 
pedestrian or vehicular traffic thereon by appropriate means. Each owner 
and each resident of The Knolls Estates may permit his/her guests and 
invitees to use Lite private ways for such purposes. The easement so 
created shall be appurtenant to and assignable with the property with 
respect to which it is granted, but shall not otherwise be 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 

							Page 4
BOOK 1304 PAGE 623 
assignable. Use of private ways shall be subject to The Knolls Estates 
Rules and Regulations. The Administrator of The Knolls Estates may 
grant free access on private ways to police, fire and emergency service 
personnel, public and private utility companies, mail and parcel delivery 
services and other persons for whom access is reasonably considered 
normal and customary, and otherwise contributes to the health, safety, 
welfare and convenience of the residents of The Knolls Estates PUD, the 
Association or the Administrator. The Association when applicable with 
sixty percent (60%) vote of the Association's Members may extend or 
restrict access on private ways to such other persons to whom the 
Association, so believes access should be given for the benefit of owners of 
The Knolls Estates, Developer and/or the Administrator of The Knolls 
Estates, and/or owners of the Association when applicable ad with sixty 
(60%) approval of the owners may dedicate private ways to the public. 
3.04: Common Areas: Each resident of The Knolls Estates shall have a 
non-exclusive easement to use common areas for such purposes as may be 
permitted by The Knolls Estates Rules and Regulations and in the manner 
permitted thereon. Each lot owner and resident of The Knolls Estates may 
permit his/her guests to use common areas for such purposes and in such 
manner, subject to the terms of The Knolls Estates Rules and Regulations. 
Common areas shall not be platted or otherwise divided into parcels for 
residential use. The Administrator of The Knolls Estates, with sixty 
percent (60%) of the owners, may develop special recreational areas of 
facilities on portions of the common areas for the general use and benefit 
of the public and all residents, from time to time, to use designated 
portions of common areas for recreational or service uses of benefit to such 
residents only (For Example: Maintaining a volleyball or badminton 
court) provided that such permission shall be revocable at any time. The 
easement and rights herein granted shall be appurtenant and assignable 
with the lot in respect to which it is granted but shall not otherwise be 
assignable. The Administrator of The Knolls Estates may authorize use of 
common areas for location of utilities thereon, and may dedicate common 
areas for owners' park purposes. No such dedication shall be deemed to 
arise by implication or by use, but only by an instrument of express grant 
of dedication duly filed in the Deed of Records of Douglas County, State Of 
Oregon. Any other use, development or modification of common areas 
requires the prior written consent of the Administrator not withstanding 
anything to the contrary herein contained; however, the Administrator 
shall not construct new improvements or perform work on new capital 
additions to or alterations in common areas, requiring an expenditure from 
the Maintenance Fund in excess often thousand dollars ($10,000) without 
prior approval by vote cast by owners. Other than developer-owned lots so 
long as the Developer is the Administrator. Common Areas shall be 
preserved in perpetuity for use of the Owners except as herein otherwise 
provided. Common Areas may not be sold by the Administrator or the 
Association for perpetuity 
3.05 Use Restrictions All portions of The Knolls Estates PUD shall be 
used subject to the following covenants and restrictions. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN
  Page 5

Book 1304 PAGE 624 

a. Nuisance: No excessive or unnecessary noise shall be 
generated by any vehicles, persons, appliances, tools or pets. 
Each owner shall be responsible for compliance with this 
covenant with respect to his/her own behavior and that of 
his/her guests, licensees and invitees on the private areas, 
common areas, private ways, private recreational areas, 
semi-public recreational areas or service areas and in all other 
areas contained within The Knolls Estates PUD. 
h.	Restrictions on Invited Guests: No more than 35 persons, 
including the owner and household residents, shall be allowed 
to assemble within any dwelling or on any Private Property or 
common area within The Knolls Estates PUD, without the prior 
approval of the Administrator. In granting such approval, the 
Administrator may impose reasonable conditions with respect 
to the maximum number of guests, the hours within which the 
guests may be present, limitations on the types of activities to 
be engaged in by the owner and guests, special provisions for 
vehicle parking, and other measures which the Administrator 
deem reasonable and necessary to protect the privacy and 
peaceful enjoyment of other owners within the PUD. 
i.	Restrictions on Motor Vehicles: Except with respect to golf 
cars or carts specifically approved by the Administrator, no 
motorized vehicle shall be operated anywhere except upon a 
Surfaced roadway, nor shall it be parked in other than 
Designated parking areas. Each home shall provide the 
minimum of a two car garage which shall be maintained for the 
principal purpose of parking not less than two cars. No Motor 
vehicle, recreational vehicle, trailer or boat shall be parked or 
stored on any roadway or exterior portion of any lot for a period 
exceeding 48 hours. 
d. Restrictions on Cart Paths: Cart Paths shall be used solely for 
golf carts and pedestrian traffic excepting maintenance 
equipment necessary to maintain or repair paths or utility 
equipment when appropriate or necessary for maintenance of 
Utilities. 
e.	Motor Homes. Trailers, Campers & Camping Equipment: 
Motor Homes, Campers, Trailers, or other Camping equipment 
shall not be used for overnight living accommodations at The 
Knolls Estates PUD. Parking of the above shall be permitted 
only on private lots and only enclosed in a garage structure 
attached to the home, and approved by the Design Committee, 
or in storage facilities provided by the Association. One Motor 
Home, or trailer, or camper of a visitor may park on an 
exterior portion of a lot for a period not exceeding 48 hours 
unless express written permission is obtained from the 
Administrator, but not prior to the date the residence has been 
completed and lawfully occupied. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
Page  6  

BOOK 1304 PAGE 625 
f.	Control of Pets: No pets shall be permitted to run loose or 
unattended. Pets shall be leashed or confined to the owner's 
private area. No animals shall be kept or raised in any private 
area except household pets not used for commercial purposes. 
All pets allowed must be pets allowed under city ordinances. 
Any pets running loose or unattended outside the private area of 
the owner thereof me be impounded by the Administrator and 
the cost of such impoundment may be assessed to the owner 
thereof as a fine under Section 6 hereunder. Any pets which 
create a nuisance or disturb the peace shall be removed from 
The Knolls Estates upon written demand by the Administrator. 
g.	Firearms Or Other Weapons: No firearms, air pistols, archery, 
slingshots, fireworks or any other weapons or projectiles shall 
be used or discharged anywhere within The Knolls Estates PUD 
except in areas designated in writing by the Administrator, with 
appropriate controls and constraints imposed. In connection 
therewith. 
h.	Littering: Each lot owner shall be responsible for maintenance 
f his/her private area in a manner which keeps it free of 
rubbish and debris, brush and dried grass and other material 
likely to create or cause a nuisance or a fire hazard. No person 
shall litter or dispose of trash or rubbish anywhere in The 
Knolls Estates except in appropriate trash receptacles or 
disposal areas designated by the Administrator. 
L Home Occupation: Any lawful occupation carried on by a 
resident of a dwelling as an accessory use within the same 
dwelling or in a lawfully permitted accessory building on the 
same property is permitted only under the following conditions: 
1)	No sign is used other than a residential nameplate not over 
two square feet in area. 
2)	There is no display that will indicate from the exterior that 
the premises is used in whole or in part for any purpose 
other than a dwelling. 
3) The premises retains the characteristics of a residence. 
4)	There is no outside storage of materials directly related to 
the business. 
5)	No non-family paid employees shall perform work or 
Render services to clients upon the premises. 
6	No premises shall be used as a headquarters for the 
assembly of employees for instruction., for assembly of 
employees to dispatch for work at other locations, or for 
assembly of employees for other purposes
TIIE KNOLLS ESTATES PUD/CONSOLIDATED PLAN Page 7

. 
BOOK 1304 PAGE 626 

7)	All aspects of a home occupation shall be contained and 
conducted within the dwelling or legally permitted 
accessory building. 
8)	The aggregate of all space within any building devoted 
to one or more home occupations shall not exceed 500 
square feet in floor area. 
9)	Products made or sold shall be disposed of primarily by 
delivery from the premises to the homes or places of 
business of customers. 
10)	Customer and client contact shall be primarily by 
telephone, mail, or in their homes and places of 
business, except for those home occupations which, by 
their very nature, can not otherwise be conducted except 
by occasional contact upon the premises. 
j.	Residences Under Construction: Residences under 
construction shall not be occupied until finished and 
hooked up so utilities as per Douglas County Ordinance 
Provisions within City limits, and Certificate Of 
Occupancy has been issued. 
k.	Residence Construction: Garages are to be two car 
minimum and shall be attached to the dwelling by 
common wall or common roof. All dwellings shall be 
"site built", Modular, Prefabricated, Panelized of 
Manufactured dwellings shall not be placed, assembled or 
constructed on any lot. All residents shall be approved by 
the design committee prior to application to Douglas 
County for building permit to commence construction. 
Should the dwelling not be completed within one year, the 
owner shall landscape and maintain the grounds of his/her 
property to preserve the aesthetic integrity of the PUD. 
1. Residence Height Restriction and Construction Plans: 
Except on those lots which are specifically designated as 
"approved for two-story dwelling", houses in The Knolls 
Estates PUD shall not exceed one story in height. 
Regardless of whether a dwelling is one story or two 
stories, the highest point of the dwelling shall not extend 
more than twelve feet above the lowest ceiling within the 
top most story. All residence plans must be approved by 
the Design Committee. 

The KNOLLS ESTATES PUD/CONSOLIDA TED PLAN    

						 Page 8 

Book 1304 PAGE 627 
m.	Fences and Hedges: All fences must be architecturally pleasing 
and presented to the Design Committee for approval prior to 
their erection. No fences may be constructed, and no 
sight-obscuring hedges may be cultivated, in the front yard 
area at any point beyond the front line. of the home. No chain 
link fences will be allowed. On non-fairway lots, rear yard 
fences and hedges may be up to six feet high beginning at a 
point not closer than 20 feet from the front line of the dwelling 
and extending to and across the rear lot line. Fairway lots shall 
not have fences past the house line facing the fairway. Except 
where a lot borders the fairway of the adjoining golf course, 
The Design Committee may vary fence rules on a particular lot 
upon application of the lot owners and a finding that no 
adverse impact to adjoining properties results from the 
variance requested. 
n.	Obstruction of Easement Areas: Fences and building of any 
nature may not be placed on an easement, and if so placed may 
be subject to removal at owner's cost should it be deemed 
necessary to maintenance of The Knolls Estates Utilities, 
roadways, etc. Buildings shall be built within a so-called 
"building envelope" as approved by the Design Committee and 
shown for each building lot. All setbacks and view corridors 
established by the building envelope 'will be complied with. 
Most lots will have minimum side yards and front yards, with 
Generous back yards being provided by the building envelope. 
o.	Building Size Requirements: Single-family homes shall be a 
minimum of fourteen hundred square feet in main floor area; 
excluding porches, decks, courtyards, walkways, and garages. 
p.	Building Roof Requirements: Due to the maintenance and fire 
hazards of the natural wood shake roof, they are not allowed 
within The Knolls Estates PUD. Metal roofs shall not be 
permitted. All other roofs are permitted subject to Design 
Committee approval. 
q.	Fireplaces & Stoves: Firewood Storage: No wood burning 
fireplaces or stoves shall be installed in any dwelling as the 
primary hear source. No firewood shall be stored in such 
Manner that it, or any part of it becomes visible from any point 
off the lot on which it is stored. 
r. Landscaping: Landscaping will be permitted within the 
building envelope. All major landscaping (defined as areas 
comprising 30% or more of the net lot size) shall Be approved 
by the Design Committee. No trees shall be removed from the 
lot except for those within building footings and as otherwise 
approved by the Design Committee. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
PAGE 9 

BOOK 1304 PAGE 628 
s.	Satellite Receivers and Antennas: Satellite receiving dishes 
over 24" in diameter, large TV antennas, ham radio 
antennas, or any other electronic receiving device shall 
not be permitted on any home or lot. Permitted 
Satellite receiving dishes shall not be visible from the 
Street. 
t.	Rentals: All homes are intended to be owner occupied. 
The rental of a home will be allowed under some cases 
if approved in writing by the Administrator. The 
upkeep and maintenance of the home and the lot shall 
be the responsibility of the owner. 
Section 4 
THE KNOLLS Estates AS A PUD 
The property made subject to the Consolidated Plan of The Knolls Estates 
PUD herein referred to as "The Knolls Estates" has been zoned residential 
and is subject to The Knolls Estates PUD Plat as adopted by the City 
Council of Sutherlin and recorded in the Deed Records of Douglas 
County, Oregon in Volume 18, at Page IA and 13. A Planned Unit 
Development is defined as follows: 
A self-contained complex of residential uses in the 
Form of a planned development in conjunction with an 
Interrelated system for transportation, utilities, 
Recreational areas and other public facilities 
Constituting a separate community within the City. 
In addition to the covenants, restrictions and assessments provided for in 
this Consolidated Plan of The Knolls Estates, all uses of property with The 
Knolls Estates are also subject to the Planned Unit Development Zone as 
set forth in the Sutherlin City Land Use Ordinances, and to certain 
restrictions contained in the Master Plan of The Knolls Estates approved 
by the City of Sutherlin. 
Section 5 
CONSOLIDATION OF LOTS WITHIN A PRIVATE AREA
Whenever a person shall own all of a lot restricted to a single family 
residence use within a private area, together with one or more contiguous 
portions thereof also restricted to single family residential use, and wishes 
to consolidate the basic lot, and the additional lot and consolidation 
conforms to the other provisions hereof, the consolidation shall be 
effected by filing in the Deeds of Records of Douglas County, a declaration 
stating that the two areas are consolidated. The foregoing requirements 
are in addition to any requirements that may be imposed by state law for 
adjusting a lot line or re-platting a lot. (Currently  ORS Chapter 92). 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
							
PAGE 10
Book 1304 PAGE 629 
The consolidation shall have the following effects: 
a. The consolidated areas shall constitute one lot for all 
Purposes under the Consolidated Plan of The Knolls 
Estates Declaration pursuant to which The Knolls 
Estates PUD was created, including the payment to 
Maintenance assessments. 
b. The entire consolidated area may be used for the 
Construction of only one residence. 
c. No residence or structure may be placed upon a 
Remainder of a lot not consolidated with another lot 
Without approval of the Design Committee. 
Section 6 
RULES AND REGULATIONS AND THEIR ENFORCEMENT 
6.01 Rules and Regulations: In the exercise of its powers and in the 
Performance of its obligations pursuant to the Consolidated Plan and 
Declaration, the Administrator may adopt, amend, or repeal rules and 
regulations in order to provide for the manner in which common 
areas, (including special recreational facilities established thereon), 
private ways, semi-public recreational or service areas created in the 
Declaration, which are essential or convenient to the use and 
enjoyment of the owners, shall be used. To the extent provided in any 
of The Knolls Estates Declaration, the Rules and Regulations may 
provide for the manner in which private areas and common areas may 
be used. All rules and regulations must be applicable on a 
non-discriminatory basis. A current copy of the Rules and 
Regulations shall be kept on file at the principal office of the 
Administrator, located within the PUD, at all times. The Knolls 
Estates Rules and Regulations shall have the force and effect as if set 
forth herein as part of the Consolidated Plan of The Knolls Estates 
PUD. 
6.02 Enforcement of the Rules and Regulations: The Rules and 
Regulations shall be enforced in an impartial and uniform manner. 
The Administrator may impose penalties for the violation of the Rules 
and Regulations subject to the following conditions: 
        a.   A fine schedule shall be established annually by the Administrator  and approved by the owners Association when in place. 
b.	Violations of a rule pertaining to the use of private ways shall 
be subject to a fine in an amount consistent with that imposed 
under laws applicable to public streets and highways. 

THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 

 							PAGE 11
BOOK 1304 PAGE 630 
c.	Should a fine not be paid by the person upon whom it is 
imposed, it shall be paid by the lot owner if one or more of the 
owners caused the person upon whom the fine was imposed to be 
present within The Knolls Estates PUD. 
d.	The Administrator may provide that a person who has 
violated a rule or regulation shall be deprived of his/her right to 
use the common areas, semi-public recreational areas, service 
areas, or any specified parts of either for a period not to exceed 
six months on account of anyone violation or until such time as 
the violation has been remedied to the satisfaction of the 
Administrator. 
e.	In addition to any fine or other penalty imposed. The 
Administrator shall assess the costs of the proceedings from the 
owner found to be responsible or upon whom the penalty was 
imposed. 
6.03 Right to Notice: Opportunity to be Heard and Appeals: No 
person shall be subject to fines or penalties pursuant to Section 6.02 
hereof without prior written notice of the offense and an 
opportunity to be heard. Any person upon whom a notice of fine or 
penalty has been imposed pursuant to Section 6.02 hereof who deems 
that such a fine or penalty was unfairly imposed, either because he/she 
did not violate a rule, regulation, or provision as charged, or because 
the fine or penalty imposed is too severe may appeal the imposition of 
the fine or penalty by filing a statement to tat effect with the 
Administrator within thirty (30) days after notice of fine or penalty has 
been served. All appeals shall be determined by a body to be known as 
The Knolls Estates Judicial Council as provided in Section 6.07 
below. 
6.04 Violation of Declaration or a Design Committee Rule: Any 
activity prohibited by the provisions hereof or any Declaration or 
Design Committee Rule may be enjoined at the discretion of the 
Administrator. Such an injunction is to be in addition to all fines, 
penalties, and recovery costs allowed under Section 6.02 above. 
6.05 Violation of Declaration by Prohibited Activity: In the event 
that any owner shall violate a provision of the Declaration relating to 
activities which may be conducted on his/her property or if any 
person on the property with the permission of the owner shall violate 
such a provision, the Administrator may impose a fine upon such 
owner in an amount determined in accordance with Section 6.02 for 
any violation, subject to all of the limitations and conditions 
hereinafter set forth. 
6.06 Payment of Fines: Each fine imposed pursuant to Section 6.02 
hereof shall become payable by the person upon whom the fine was 
imposed ten (10) days after delivery by the Administrator of notice 
thereof to the person by whom it is payable. If the fine is unpaid at the 
end of this period, the Administrator shall be authorized to :file a lien 
against the property of the owner until said fine is paid. Each 

THE KNOLLS ESTATES PUD/CONSOLODATED PLAN PAGE 12

BOOK 1304 page 631 
notice of fine shall refer to the rule, regulation, or provision which has 
been violated and sat forth a statement of the conduct which the 
Administrator claims violated a rule, regulation, or provision 
describing the date and the events constituting the violation. All fines 
paid shall be deposited in the Maintenance Fund. 
6.07 The Knolls Estates Judicial Council: All appeals of fines or 
penalties pursuant to Section 6.02 shall be determined by a body to be 
known as The Knolls Estates Judicial Council in accordance with such 
rules of procedure as the council may adopt from time to time. The 
Judicial Council shall consist of not less than three persons who shall 
be appointed by the Administrator. Two of whom shall be owners; 
provided, however, that no person shall serve as a member of the 
council while serving as a member of the Board of Directors of the 
Owners Association. 
The Administrator shall keep on file at his/her principal office a list of 
the names and addresses of the members of the Judicial Council. The 
Judicial Council shall render all decisions on appeals in writing. 
In case of appeals from fines or penalties, written notice shall be made 
to the Administrator by any person or persons upon whom the fine or 
penalty was imposed. Rendering a decision on appeal, collection of a 
fine, or imposition of penalty shall be stayed The decision of the 
Judicial Council shall be binding on the Administrator and all other 
parties to the appeal to the extent the decision of the council may be 
entered in a court of competent jurisdiction in like manner as upon a 
private arbitration. 
Prior to any determination of an appeal from a fine or penalty, the 
Judicial Council shall hear evidence from the person (s) upon whom 
the fine or penalty is imposed, who shall have the right to confront the 
Administrator, hear the charges, and be heard :fully in refutation 
thereof. The Judicial Council shall base its decision upon substantial, 
relevant evidence and render a decision without bias in writing. 
However, once a decision has been rendered it shall have the same 
force and effect as the decision of a private arbitration and for all 
purposes at law, including but not limited to appeal and enforcement, 
shall be including but not limited to appeal and enforcement, shall be 
treated as if it were a private binding arbitration decision. 
Section 7 
MAINTENANCE FUND AND RESERVE FUND 
                                UTILITY  FEES 
7.01 Budget: From the effective date of the Consolidate Plan the 
Administrator shall annually, with the approval of the Board of 
Directors of the Owners' Association, prepare an operations budget 
for the community for the ensuing calendar year as provided in this 
Section. The budget shall include provision for maintenance, capital 
expenditures, and any proposed additions to the Reserve Account. 
TIIE KNOLLS ESTATES PUD/CONSOLIDATED PLAN   PAGE 13 

BOOK l304 PAGE632 
7.02 Imposition of Regular Maintenance Assessments: 
The Administrator shall have the right to impose an assessment 
against each lot owner in a amount not to exceed $35.00 per month for 
each lot owned by each lot owner unless such an amount shall be 
increased as provided in Section 7.02 a. (1) and (2) herein. On or 
before January first of each year the Administrator shall notify each 
owner of the amount of the assessment to be imposed for such year. 
The assessment shall not include charges for utility services provided 
by the Administrator. 
1)	The maximum amount of any Maintenance 
Assessment Fund increase over the amount 
Provided for above shall be established each 
Year by vote of sixty percent (60) of the 
Board of Directors of the Owners' Association. 
2)	In the event that the Administrator shall deem 
The Maintenance Fund to be inadequate for the 
purposes for which it is to be maintained, taking 
Into account the need for reasonable reserves for 
special purposes, the annual maintenance 
assessment may be increased above the amounts 
provided above, provided, however, that such 
increase shall have first been approved by a vote 
of not less than sixty percent (60%) of the votes 
Cast in written ballot directed to all owners. 
7.03 Special Purpose Assessments: In the event that the 
Administrator deems it to be to the advantage of the owners to impose 
a special purpose assessment to provide funds for the development of 
a particular facility or to provide funds to cover maintenance costs 
caused by conditions or occurrences not contemplated at the time of 
the approval of the annual budget, the Administrator may impose a 
special assessment provided that the amount of the assessment and the 
items upon which it is imposed have been approved by a vote of not 
less than sixty percent (60%) of the votes cast by written ballot 
directed to all owners. 
Special Purpose Assessments shall be applied uniformly to all owners. 
In the event that such an assessment is imposed, the Administrator 
shall not add the monies derived therefrom to the Maintenance Fund 
but shall keep the same in a special account and shall use the same 
only for the purposes approved by the owners when they consented to 
the special assessment. 
TIIE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
Page 14

BOOK 304PAGE  633 
7.04 Maintenance Fund: The Administrator shall keep all monies 
collected for maintenance assessments, together with all other monies 
which he/she is required to add to the Maintenance Fund pursuant to 
the provisions of The Knolls Estates Declaration, in a separate fund to 
be called The Maintenance Fund, and shall use the monies in The 
Maintenance Fund only for the following reasons. 
a. Payment of the cost of maintaining private ways (including 
street lights, entrance and other signs), common areas, 
semi-public recreational areas or service areas, facilities on 
common areas or semi-public recreational areas or service 
areas, leased areas and the improvements thereon. 
b.	Payment of taxes and assessments levied against private ways, 
common areas, semi-public recreational areas or service 
areas, leased areas and the improvements thereon. 
c.	Payment of the cost for providing security patrol, fire 
prevention, and control service, emergency medical service, 
and such other utility and public services as may be required 
to be provided from time to time and are not otherwise 
available through public entities or leased public utilities. 
d.	Payment of the cost of insurance, including insurance 
                 protecting the Administrator, the Design Committee, the 
owners; Association, and any Knolls Estates Association 
against liability arising out of performance of their functions 
and activities in the administration of the Consolidated Plan 
of The Knolls Estates PUD. Such insurance may include 
indemnification of directors, officers and agents of such 
employees, committees and associations. 
e. Payment of the cost of enforcing the provisions contained in 
the Consolidated Plan of The Knolls Estates, Rules and 
Regulations Sections and the covenants and provisions 
contained in any Knolls Estates Declaration. 
f. Payment to the Owners' Association or to a Knolls Estates 
Association of costs incurred in the performance of any 
obligation of the Administrator which has been delegated to 
the Association or to any Knolls Estates Association. 
g.	Payment of cost incurred in collection of maintenance 
assessments, including attorney fees and other costs of legal 
action. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
 PAGE 15 

BOOK 1304 PAG E 634 
h.	Payment of any expense reasonable incurred by the 
Administrator in carrying out any function for which he/she 
has been given responsibility hereunder. 
i. Payment of legal costs and accounting costs incurred by the 
Administrator in performance of his/her functions hereunder. 
]. Payment of the costs offidelity bonds and faithful 
performance bonds with respect to the cash handling 
functions of the Administrator and such employees thereof as 
are responsible for collection and handling of cash to be 
deposited in The Maintenance Fund. 
The Maintenance Fund includes all maintenance assessments, fees for 
use of recreational or service facilities located on the common areas or 
semi-public recreational or service areas, Design Committee fees, 
rental fees from leases of private recreational areas or leased areas, 
interest on amounts payable in the Maintenance Fund and payments to 
reimburse the Administrator for monies expended from the 
Maintenance Fund. No part of the Maintenance Fund shall inure to 
the benefit of the Developer. 
Notwithstanding anything to the contrary herein contained, the 
Administrator shall have no power to make expenditures exceeding 
twenty percent (20%) of the amount appropriated to any budgeted 
category within the Maintenance Fund without the affirmative vote of 
not less than sixty percent (60%) of the votes cast by written ballot 
directed to all owners. 
The Administrator shall have no power to enter into any contract for 
the provisions and services or the purchase of goods having a term in 
excess of one year with the exception of: 
a.	Contracts for provision of public utility services by a 
regulated public utility company (with services contracted for 
being within the purview of the regulations), and 
b.	Contracts for insurance from insurance companies of good 
reputation and rates publicly available in the marketplace. 
In connection with any contract exceeding one year, the Administrator 
must obtain approval of the Board of Directors of the Owners' 
Association when in place. 
7.05 Default in Payment of Assessments and Maintenance: Each 
maintenance assessment, special assessment and any charges levied or 
imposed pursuant to the Consolidated Plan or the Declaration, together 
with interest thereon at the legal rate of interest pursuant to Oregon law for 
sums due (currently 9% per annum) from the date of the charge until the 
date of payment, is the obligation of the owner or resident against whom 
the maintenance assessment, special assessment of charge is levied or 
imposed or from whom the amount is due. If an owner fails to pay such an 
1HE KNOLLS ESTATES PUD/CONSOLIDATED PLAN              PAGE 16

BOOK 1304 PAGE 635 

assessment of charges when due. The owner shall be in default and 
shall be subject to a late payment charge in an amount to be set by the 
Administrator. The amount of the assessment or charge not paid 
together with interest, costs and attorney fees as elsewhere provided 
For herein shall become a lien upon the lot or lots owned by the owner 
from whom the assessment or charge is due, upon filing by the 
Administrator in the Deed Records of Douglas County, State of 
Oregon, of a notice of lien, which said notice shall set forth the 
amount due including costs, expenses and attorney fees incurred, the 
provisions under which the lien is claimed, and the fact that, unless 
the amount is paid, the property subjected to the lien shall be sold in 
satisfaction thereof. Any such lien shall not take effect until notice 
thereof has been so filed. Thus, such lien shall be subordinate to the 
lien of any mortgages upon any property which is accepted in good 
faith and for value and which was recorded prior to the filing of the 
notice of the lien. The Administrator shall commence proceedings to 
foreclose any such lien at any time within three years following the 
date of such :filing and foreclosure shall occur in a manner provided 
for foreclosure under the laws of the State of Oregon. Notice of 
such filing shall be given in the manner provided by statute for 
Mechanics Liens under ORS Chapter 87 as it then exists. 
7.06 Annual Accounting: Within ninety days following the closing 
of each calendar year, the Administrator shall render to each lot owner 
an accounting which shall set forth the amount and source of all 
income received in the Maintenance Fund and all disbursements from 
the Maintenance Fund during the previous calendar year, together 
with a statement of the assets and liabilities of the Maintenance Fund 
at the close of the last calendar year. 
The Administrator shall maintain books and records in a manner 
consistent with customary and usual accounting standards. Such 
records shall be open to inspection by any lot owner or by the officers 
of any Knolls Estates Association or of the Owners' Association at 
any reasonable time during normal business hours. The accounting to 
be provided pursuant to the provisions hereof shall be reviewed by a 
certified public account of good reputation on the basis of the records 
of the Maintenance Fund, in accordance with accepted auditing 
standards and general accepted accounting principles in a manner 
sufficient to permit said accountant to provide reviewed statements of 
account. The Administrator shall maintain books and records to a 
standard sufficient to permit full audit upon demand of the Board of 
Directors of the Owners' Association or Sixty percent (60%) of the 
owners, excluding the Developer. 
7.07 Indemnity: No member of the Board of Directors or any other 
officer of the Owners' Association or of any committee of the 
Association appointed by the Board, shall be personally liable to any 
member, or to any other party, including the Association, for damage, 
loss or prejudice suffered or claimed on account of any act, omission, 
error or negligence of the Association, provided that such person has, 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN
 PAGE 17 

BOOK 1304 PAGE 636 
upon the basis of such information as may be possessed by him/her, 
acted in good faith. In the event any action is brought against any 
such person or entity, the Association shall indemnify such person or 
entity for all reasonable cost, including attorney's fees incurred in the 
defense of such action, including any settlement thereof. In the event 
the Association is required to pay any such sums, the Association shall 
be entitled to reimbursement from the Maintenance Fund established 
pursuant to Section 7 hereof. 
7.08 Establishment of Reserve Fund: As of the effective day of the 
plan, the Administrator shall establish a separate interest bearing 
reserve account by transfer of funds fro the Maintenance Fund 
pursuant to a resolution by the Board of Directors of the Owners' 
Association. 
a.	The Reserve Account shall be a separate account in the 
Maintenance Fund. 
b.	The purpose of the Reserve Account shall be to provide funds 
for routine maintenance of items as well as for replacement 
or major repair of all items of Association assets. 
7.09 Procedure for Reserve Fund: The Administrator shall be 
responsible for administering the account and for making periodic 
payment into the Reserve Fund. 
a.	The Reserve Account established under this section shall, in 
the discretion of the Board of Directors of the Owners' 
Association, thereafter be funded by assessments against the 
individual lots in an amount sufficient to build and maintain 
adequate reserves and such adequacy shall be reserved 
annually. 
b.	The annual amount to be assessed shall take into account the 
estimated remaining life of the items for replacement cost of 
these items and shall be determined by the Administrator and 
submitted to the owners specified in Section 7.01. 
c.	The account may be used only for purchase of new or 
replacement or major repair of Association assets and is to be 
kept separate from assessments for maintenance. However, 
after the Owners' Association has assumed responsibility for 
administration, the Board of Directors may authorize the 
borrowing of funds from the Reserve Account to meet high 
seasonal demands upon the Maintenance Fund. Funds 
borrowed to meet temporary expenses under this subsection 
must be repaid with interest before the end of the current 
fiscal year. 
d.	Assessments paid into the Reserve Account are the property 
of the Maintenance Fund and are not refundable to sellers or 
owners of lots. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 

PAGE 18 

BOOK 1304 PAGE 637 
7.10 Utility Charges: Where utility services are provided for the lot 
owners by the Administrator, the Administrator shall establish a 
schedule of reasonable charges on a monthly basis to defray the 
expense of providing and maintaining such services. The schedule 
may be adjusted from time to time as necessary in the Administrator's 
discretion to reflect changes in the cost of utilities and needs to 
maintain the utility systems. Initially the Administrator will provide 
water, sewer and garbage services. Charges for such services shall be 
made and collected in the same manner as the monthly Maintenance 
fee, and :if not paid within 30 days of billing therefore the Association 
may, in addition to the remedies provided herein for liens on unpaid 
maintenance fees, on 10 days notice, terminate water service to the lot 
against which such charges are owing. 
7.11 Performance of Utility Services by the City: Upon agreement of 
the City and the Developer, where the City shall deem it to be in the 
best interest of the City, the City may assume and operate sewer and 
water utility services furnished within THE KNOLLS ESTATES 
PUD, making such charges therefor as it shall determine to be 
appropriate. 
Section 8 
DESIGN COMl'v1ITfEE 
8.01 Functions of the Design Committee: The Design Committee 
shall exercise the functions for which it was given responsibility in 
The Knolls Estates Declaration and in the Consolidated Plan of The 
Knolls Estates. Generally, the Design Committee will be responsible 
for the approval of plans and specifications for the development of all 
areas subject to the Consolidated Plan and for the promulgation and 
enforcement of rules and regulations governing the use and 
maintenance of such areas and the improvements thereon. Two copies 
of all lot owner plans for improvements shall be submitted to the 
Design Committee, as required in Section 3.05 herein, prior to 
application to Douglas County for a building permit to commence 
construction. Upon approval by the Design Committee, the plans will 
be stamped by the Committee in a manner to indicate that the plans 
have been reviewed and approved. The stamped copy of the plans 
shall be available on the job site during construction 
8.02 Members: Terms and Approvals: The Design Committee shall 
consist of not less than three persons, of whom not less than two are 
members of the Alaska Sutherland Knolls Corporation until such time 
as all lots are sold. At such time, The Owners' Association Board of 
Directors of not less than three members shall appoint a new Design 
Committee of at least three members of the Association (Lot Owners), 
The Design Committee will adhere to all restrictions within these 
documents. The Board of Directors may at any time appoint new or 
additional members to the Design Committee once the Design 
Committee's responsibilities have been transferred from the 
Developer as per above. Names and addresses will be kept on file in 
the office of the Administrator. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN PAGE 19 

BOOK 1304 PAGE 638 
8.03 Violation of The Knolls Estates PUD Declaration or Design 
Committee Rules by Non..Qualified Improvements: In the event that 
any owner constructs or permits to be constructed on his/her property 
an improvement contrary to the provisions of The Knolls Estates 
Declaration or the Design Committee's Rules, or in the event that the 
Owner maintains or permits any improvement, condition or other 
thing not permitted by the Declaration or the Design Committee 
Rules, the Administrator may, no sooner than sixty (60) days after 
delivery to such owner of written notice of the violations, enter upon 
The offending lot owner's premises conform thereto; provided, 
However, that if the owner objects to such entry, no such entry shall 
Occur without prior resort to appropriate judicial process. The 
Administrator shall charge the owner and the owner shall pay the 
entire cost involved in restoration of the premises to a state that does 
not violate the Declaration or the Design Committee Rules. To 
enforce this hereof, such costs shall become payable upon delivery by 
The Administrator to the owner of notice of the amount due and shall 
Be paid by such owner into the Maintenance Fund. Any such charges 
So levied shall become a special assessment against the lot of the 
Owner, and, if not paid within sixty (60) days of delivery of the notice 
Herein provided, shall be enforced by lien in the same manner as 
provided for assessments in Section 7.05 herein, and shall bear interest 
as therein provided for liened assessments from the date of the notice 
Until paid. 
8.04 Review and Appeal by Applicant: 
a. In the event that a decision rendered by the Design 
Committee is unacceptable to the lot owner or to the owner 
of any other lot: 
1)	The lot owner may request a review of such decision 
By the Design Committee by directing a written request 
for such review to the Administrator by certified mail 
postmarked no later than ten (10) working days after the 
decision is rendered by the committee. Property owners 
of other lots may request a review of such decision by the 
Design Committee by directing a written request for such 
review to the Administrator by certified mail postmarked 
no later than five (5) working days after the decision is 
rendered by the Committee. Such review shall be held by 
the committee at its next regularly scheduled meeting. 
2)	Request a hearing before The Knolls Estates Judicial 
Council, established under Section 6.07 hereof, by filing 
a statement that such hearing is requested with the Administrator within fourteen (14) days after notice of the 
Design Committee decision is given. The decision of the 
Judicial Council shall be final and of the same effect as 
provided in Section 6.07 herein
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
PAGE 20 

BOOK 1304 PAGE 639 
Written requests for appeal shall be accompanied by a 
payment of an appeal fee in an amount as set forth by the 
Administrator. 
b. Miscellaneous Provisions: 
1)	Members of the Judicial Council shall not discuss 
Any case referred to the Design Committee for 
Review or to the Council itself until such time as 
The case is scheduled for discussion at the formal 
Hearing conducted by the Council. 
2)	The Judicial Council shall hear any case submitted 
to it within fourteen (14) days of receipt of 
Request for hearing. 
3)	Approval of design shall be issued by the Design 
Committee in less than fourteen (14) days after 
The Design Committee renders its decision. In the 
Event that a request for either a review or appeal 
Is received 'within the time limits as specified, 
Construction work will be deferred until a final 
decision is rendered in accordance 'With provisions 
of Section 8.04, A. Above. 
8.05 Failure to Act: If at any time the Design Committee shall fail to 
function for any reason, the Board of Directors of the Owners' 
Association shall have the right to act in the place and instead of the 
Design Committee. 
8/06 Non - Waiver: Consent by the Design Committee to ay matter 
constitute precedent or waiver impairing its right to withhold approval 
as to any similar matter thereafter proposed or submitted to it for 
consent. 
8.07 Estoppel  Certificate: Within thirty (30) days after written 
demand therefore by any owner, the Design Committee shall execute 
and deliver to the owner requisition the same an estoppel certificate 
certifying with respect to the property of such owner that as of the date 
of the certificate either (a) all improvements and other work within or 
upon said property comply 'With the Consolidated Plan and with all 
restrictions and rules and regulations adopted in or pursuant to any 
Knolls Estates Declaration, or (b) that such improvements and work 
do not so comply for reasons specified in the certificate with respect to 
the matters set forth herein, such matters being conclusive against the 
Owners' Association and all lot owners. 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN
  PAGE 21 

BOOK 1304 PAGE  640 
8.08 Liabilities: Neither the Design Committee nor any mender 
Thereof shall be liable to any owner, Owners' Association, or any 
party who has submitted application to the Design Committee, for 
any damage, loss or prejudice suffered or claimed on account of 
any action or failure to act of the Design Committee or any 
member thereof, provided only that the Design Committee, in 
accordance with actual knowledge possessed by it has acted in 
good faith. 
Section 9 
ADMINIS1RA TION 
9.01 Powers and Responsibilities of the Administrator: in 
Addition to such other powers and responsibilities as shall be 
Granted to or imposed upon himJher by the Consolidated Plan and 
By the Declaration, the Administrator shall have the following 
Powers and responsibilities. 
a.	Maintain all private ways, common areas, semi-public 
recreational areas or service areas, leased areas and 
the improvements thereon. 
b.	Construction of such improvements on the private ways, 
common areas, leased areas, semi-public recreational 
areas or service areas as he/she deeII1S to be of benefit 
to the residents and their guests in accordance with 
Ru1es and Regulations; provided, however, that nothing 
herein contained shall be deemed to confer upon the 
Administrator power to incur capital expenditures or levee 
special assessments except as expressly herein set forth. 
c. Responsibility for the enforcement of all covenants and 
restrictions contained in the Consolidated Plan and in 
and Declaration. 
d.	Responsibility for the promu1gation and enforcement of 
the Ru1es and Regulations and enforcement of the 
Design Committee rules and decisions. 
e. Responsibility for payment of all ad valorem taxes and 
assessments imposed on any of the common area, private 
ways, leased areas, or semi-public recreational areas 
or service areas. 
f.	Responsibility for the provisions of such services to 
the owners as shall be deemed to be a benefit to the owners. 
g.	Responsibility for procurement and maintenance of 
insurance on all improvements constructed on the common 
areas, leased areas, semi ~ public recreational areas, or 
service areas. 
THE KNOLLS EST A TES PUD/CONSOLIDATED PLAN 

PAGE 22 

BOOK! 1304 PAGE 641 
h.	Responsibility for collection of maintenance 
assessments, user fees and other charges as may be 
levied within any phase in the manner provided in the 
Consolidated Plan and responsibility for action when 
such are not timely paid. 
i.	Responsibility for all fixing of  fees for use of 
recreational and service facilities within the common 
areas and in the shill - public recreational areas or 
service areas and for the collection thereof for payment into 
the Maintenance Fund. 
j.	Responsibility to make certain that annual operating 
and long term budgets for capital improvements and reserve 
for replacements are prepared. 
k.	Responsibility for maintenance of books and records to a 
standard sufficient to permit their audit as outlined in 
Section 7.06. 
9.02 Delegation of Functions: The Administrator may, from time to 
time, delegate all or portions of his/her authority hereunder, to a 
manager pursuant to an appropriate management contract; provided, 
however, that in no event shall any such management contract, or 
contract for services, have a term in excess of three years. In 
connection with any contract exceeding one year, the Administrator 
must obtain approval of the Board of Directors of the Owners' 
Association once in place. The Administrator shall set the salary and 
other compensation of such Manager at reasonable rated considering 
the nature and difficulty of the work to be performed. 
9.03 Limitation of liability; The Administrator shall not be liable 
for failure to carry out or perform any duty or responsibility required 
by him/her to be performed pursuant to the Consolidated Plan where 
such performance is made impossible or unfeasible by lack of 
sufficient funds in the Maintenance Fund. Where such insufficiency 
exists, the Administrator shall have discretion to determine for which 
authorized purposes monies in the Maintenance Fund shall be spent, 
including the power to determine how much shall be held in reserve. 
Neither the Administrator nor any officer or director thereof shall be 
liable to any owner, to any resident or any Association on account of 
any action or failure to act of the Administrator; provided, however, 
that the action has been taken or not taken in good faith in accordance 
with the actual knowledge possessed by the Administrator. 
9.04 Performance of Function and Required Transfer: The 
Developer will delegate and assign to the Owners' Association all of 
its powers upon completion and sale of all lots or at such earlier time 
as it deems appropriate and shall convey title to the Owners' 
Association all of its rights, title and interest in and to the private 
ways, common areas, limited common areas, private recreational 
areas, leased areas, and will transfer over to the Owners' Association 
all monies then in the Maintenance Fund with a complete accounting 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
 PAGE 23 

BOOK1304 PAGE 642 
thereof.. The Owners' Association will accept same and shall 
forthwith appoint an administrator to exercise the functions of the 
Administrator as set forth in this Consolidated Plan. The Developer, 
shall be relieved of any further obligations with respect to performance 
of the function of Administrator from and after the date of the 
transfer. The Developer is the Administrator as of the date hereof and 
commits for itself, its successors, and assigns to turn over the 
administrative functions as herein contemplated in accordance with 
the provisions of this Section. 
Section 10 
TIffi KNOLLS ESTATES ASSOCIATION 
10.01 Membership in Association; 
a.	Every lot owuer and each owner shall be a member of the 
Owner's Association. 
b.	Rights to a membership and status as a member terminate 
upon termination of status as a lot owner. Upon conveyance, 
sale or assignment of owner's interest, the selling owner or 
owners shall be relieved of liability for assessments levied 
from and after the date of such sale. 
c. No owner may avoid the obligations of membership during 
the period when he/she is an owner by non - use of private 
ways, common areas, limited common areas, private 
recreational areas, semi - public recreational areas or service 
areas, renunciation or abandonment of his/her property or any 
other act of abandonment or renunciation. 
10.02 Voting Rights: 
a.	All lot owners shall be entitled to one vote for each they own. 
When more that one person holds an ownership interest in a 
lot, the vote for such lot shall be exercised as the lot owners 
thereof determine, but the vote attributable to the lot shall be 
cast by only one person. In the event other owners dispute 
the right to vote of the person voting for the owners of a 
particular lot, or in the event more than one owner attempts 
To vote on behalf of a lot, and the matter is not settled by 
agreement and the Administrator so notified by the owners 
prior to the time votes are to be counted, the vote for the lot 
ownership shall not be counted in that said election. 

THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 

PAGE 24 

BOOK1 304 PAGE 643 
10.03 Incorporation
a The Owners' Association shall be incorporated as a not - for - 
profit corporation under the general nonprofit corporation 
laws of the State of Oregon. 
b.	The Articles of Incorporation shall provide for its perpetual 
existence, but in the event the Owners' Association shall at 
any time be dissolved deliberately or inadvertently, it shall 
immediately be succeeded by an unincorporated association 
of the same name. In that event, an of the powers and 
obligations of the incorporated association existing 
immediately prior to its dissolution shall thereupon 
automatically vest in the successor unincorporated association 
which vesting shall thereafter be confirmed and evidenced by 
appropriate conveyances and assignments by the incorporated 
Association. 
To the greatest extent possible, any such successor 
unincorporated association shall be governed by the Articles 
of Incorporation and Bylaws of the incorporated entity as if 
they had been made to constitute the governing documents of 
the unincorporated association. 
c.	The Articles of Incorporation shall provide that the Owners' 
Association shall exercise and perform all of the powers, 
obligations and duties delegated to it pursuant to The 
Consolidated Plan and any additional different powers and 
obligations necessary or desirable for the purpose of caring 
out the functions of the Owners' Association pursuant to the 
Consolidated Plan or otherwise promoting the general benefit 
of owners within The KnoUs Estates PUD. 
d.	Neither the Association nor any officer or director thereof 
Shall be liable to any owner, the Developer, or any Knolls 
Estates Association for any damage, loss or prejudice suffered 
Or claimed on account of any action or failure to act of the 
Association provided only that the Association, in accordance 
with actual knowledge possessed by has acted in good faith. 
e.	The Articles of Incorporation and Bylaws shall be submitted 
to the City of Sutherlin for approval prior to :filing or 
adoption. Additionally the City shall have the following 
rights: 
1.	To review and approve amendments to such 
Articles and bylaws and other controlling 
documents adopted by the Association: 
2.	To review and approve all plans of the 
Association for long term financing of 
Infrastructure: 
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN
 PAGE 25 

BOOK 1304 PAGE 644 
3.	To review and approve any delegation or 
acceptance of duties by the Association where 
such duties were previously performed by 
Developer: and 
4.	To enforce or require enforcement of any 
Association Rule or decision which directly affects 
any City interest. Such power includes the power to 
seek appointment of a receiver to act in the place and 
stead of the Association in the event the Association 
shall fail or refuse to enforce any of its rules or 
Decisions. 
Section 11 
PRIVATE SEWERS 
11.01 Obligations of the Corporation: Except as stated herein, the 
Corporation shall be responsible for the exclusive management and 
control of the private sewer system located within The Knolls Estates 
PUD and shall maintain the same, including appurtenant pumps, 
tanks, floats, panels, etc. The owners of all lots shall take fee subject 
to the corporation's perpetual, non - exclusive easements to use such 
portions of lots for the purpose of caring out the corporation's 
obligations as stated herein. During the time any lot is owned by the 
Developer, there shall be no assessments of any kind against those 
lots. The corporation shall also be obligated to pay for the members' 
share of the maintenance of the private sewer system. The total cost of 
maintaining such private sewer system shall be allocated by agreement 
among all users or Owners' Association. The private sewer system 
shall consist of the septic tank and appurtenances such as, but not 
restricted to, pumps, floats, panels, and alarms, The sewer lateral 
from each dwelling to be the septic tank and the connection thereto 
shall remain the responsibility of each individual lot owner. 
11.02 Corporation's Right to Easement for Sewer Maintenance: The 
Corporation, by and through its Board of Directors of the Owners' 
Association, shall have the right to, consistent with the rights of other 
users or Owners' Association: 
a.	Establish reasonable rules for the management of the private 
sewer system as defined above and to assess the cost of all 
repairs, maintenance and capital improvements thereto upon 
the land benefited thereby in the manner hereinafter 
provided. 
b.	Determine the necessity for, kind of, and the time for any 
repair, maintenance or capital improvements required on the 
private sewer system. 
c.	Suspend the right of any owner to use the private sewer 
system and turn off water service to the lot for any period 
during which any assessment against such owner's lot remains unpaid for more than thirty [30] days after notice has been given
TIIE KNOLLS ESTATES PUD/CONSOLIDATED PLAN 
PAGE 26 

11.03    PUD EASEMENT Over SECURITY INTEREST HOLDERS LOTS 
The PUD shall have an access easement over the private access roads and 
lots for the purpose of reaching the private sewer system subject to the 
security agreement for any and all purposes assess easement has 
been reserved. 
11.04 Damage to or Destruction of Sewer System by Owner : :In the 
event the private sewer system is damaged or destroyed, intentionally 
OT negligently, by the owner or any of any of his/her  family, such owner does hereby authorize the Corporation to repair  said damages. The 
Corporation shall repair or replace said damage in as good and 
workmanlike manner as originally constructed, the reasonable cost
necessary for such repairs or replacement as originally constituted, 
shall  become a special assessment upon  the lot of said owner who 
caused said damage and levied as herein  provided for other special 
assessments of charges in Sections 7.05 
11.05 Use other than for Residential Purposes:: In the event of any 
use of the private sewer system by a :lot owner other than for 
providing standard residential service, the Board of Directors of the 
Owners’ Association shall be entitled to make a special
assessment to such lot commensurate with the impact of such use to
said sewer, such charge shall be levied as herein provided for  other special assessments or charged in Section 7.05
	 
11.06 Installation of On-site System:  The initial installation of the 
on site sewer system shall be ·the responsibility of the owner of the 
individual lot. The installation shall conform to the standards herein and be inspected by an Oregon Department of Environmental Quality [DEQ] approved inspector. All work and inspections shall be at the owner’s expense. 
11.07 Annual Inspection: The administrator shall provide for 
annual inspections of all septic tanks and for the pumping and/or: 
repairs as may be necessary. The initial inspection of said tanks shall 
be no later than six (6j years after the first system is installed and 
annually thereafter.  All inspections shall be done by a DEQ approved 
Inspector. 
11.08 Operating Costs and Payment: The total estimated expenses 
for the general maintenance of and the repairs  to the private sewer system shall include but not be limited to inspection, operation, repairs, replacements, pumping ~and emergency calls servicing said private sewer system and shall be a utility charge as provided in Section 7.09 herein. 

11.09 Operating Procedures and Specifications: The system shall 
be operated in compliance with DEQ requirements as set forth in 
THE KNOLLS ESTATES P.U.D. S.T.E.G. and S.T.E.P. SEWER 
SYSTEM, OPERATION AND :MAINTENANCE :MANUAL 
Prepared by i.e. Engineering, Inc., and approved by DEQ, which  manual is incorporated herein by this reference. 

THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN  

PAGE 27
BOOK   1304 page 646 
Section 12 
MISCELLANEOUS  PROVISIONS 
	12.01 	Amendments: Except as provided herein, the provisions 
hereof may be amended by an instrument in writing signed and 
acknowledged by a majority of the members of the Board of Directors 
of the Owners' Association, certifying under penalty of perjury that the 
amendment set forth therein was duly adopted 'with written permission 
and consent of not less than sixty percent (60) of the votes cast by 
written ballot directed to all owners. Any amendment or revision of 
the Consolidated Plan or additional provision shall become effective 
only upon the filing in the Deed Records of Douglas County, 
Oregon of such certificate, setting forth in full the amendment, 
amendments, additional provision, or repeals approved as provided in 
this section. There shall be no amendments of the Consolidated Plan 
which would change Sections 3 and 10. 
12.02 Joint Owners: In any case in which two or more persons 
share the ownership of any lot, regardless of the form of ownership, 
the responsibility of those persons to comply with the provisions of the 
Consolidated Plan and Declaration shall be a joint and several 
responsibility. The act or consent of anyone or more persons shall 
constitute the act of consent of the entire ownership; provided, 
however, that in the event such persons disagree among themselves as 
to the manner in which they vote or the right of consent held by them 
shall be exercised with respect to a pending matter, in addition to the 
provisions of Section 10.02, any such person may deliver written 
notice of such disagreement, prior to the date votes or consents are to 
be counted in the pending matter, to the Administrator and the vote 
or right of consent involved shall then be disregarded completely in 
determining the proportion of votes or consents with respect to such 
matters. 
	12.03 	Expenses and Attorney’s Fees: In the event the 
Administrator shall bring any suit or action to enforce any provision 
contained in this Consolidated Plan or in a Declaration, to collect any 
money due to him/her thereunder or to foreclose a lien, the defendant 
in such suit shall pay to the Administrator all costs and expenses 
which the Administrator shall incur in connection with such suit or 
action, including a foreclosure title report, in such amount as the court 
may determine to be reasonable as attorney's fees therein, including 
attorney's fees incurred in connection with any appeal or decision of 
the trial court or appellate court. 
12.04 Non - exclusiveness and Cumulation of Remedies: Election 
by the Administrator to pursue any remedy provided for the violation of 
any provision of the Consolidated Plan or a Declaration shall not prevent 
concurrent or subsequent exercise of any other remedy permitted 
thereunder or permitted by law. The remedies provided in the Consolidated Plan and in any Declaration are not intended to be 
exclusive but shall be in addition to all other remedies, including 
actions for damages or suits for injunctions or for specific performance 
available under applicable law
THE KNOLLS ESTATES PUD/CONSOLIDATED PLAN PAGE 28 

, 
BOOK 1304 PAGE 647 
12_05 Right of Entry: The Administrator or his/her duly designated 
agent may at any time, from time to time, at reasonable intervals, enter 
upon any properly within The Knolls Estates PUD for the purpose of 
determining whether or not the use of such property or any 
improvement thereon is then in compliance of such property or any 
improvement thereon is then in compliance with the Consolidated 
Plan or any Declaration. No such entry shall be deemed to constitute a 
trespass or otherwise to create any right of action to the lot owner or 
occupant of such parcel- 
12_06 Interest: Any amount not paid to the Administrator when 
due in accordance with the Consolidated Plan or in any Declaration 
shall bear interest at the rate of nine percent (9%) per annum or at the 
legal rate established by Oregon Law (ORS Chapter 32 currently) 
12.07 Construction, Severability, Numbers, Captions: The 
consolidated Plan of The Knolls Estates PUD shall construed as an 
entire document, Nevertheless, each provision of the Consolidated 
Plan shall be deemed independent and severable, and the invalidity or 
partial invalidity of any provision shall not affect the validity or 
enforceability of the remaining part of that or any other provisions, As 
used herein the singular shall include the plural, and the plural the 
singular. The masculine and neuter shall include the masculine, 
feminine and neuter as the context requires _ Al captions used herein 
are intended solely for convenience of reference and shall in no way 
limit any of the provisions hereof 
12_08 Original Lot Divisions & Development Work: Nothing 
herein contained shall be deemed to limit or restrict the right of the 
Developer and/or the Administrator or their designated successors, 
their contractors, employees, agents, or assigns from entering all or 
any portion of The Knolls Estates PUD development for the purpose 
of conduction therein and thereon such work of subdivision, 
improvement, construction, and development as the Developer and/or 
the Administrator may deem necessary or desirable, However, all 
such work shall be performed in accordance with the Consolidated 
Plan of The Knolls Estates and without cost or expense to any owner 
other than the Developer and/or Administrator or their designated 
successors, except in such instances where another lot owner or 
owners have expressly contracted for said work. The Developer and/or 
Administrator shall have a non - exclusive easement for use of the 
private ways owned by the Developer and/or the Administrator to 
perform work of construction thereon and for other work or activity 
associated with the ownership of said property. Portions of the roads 
and private ways may be utilized for that purpose by the 
Developer/ Administrator, their agents, contractors, employees, lessees, 
invitees, and licensees and for other uses permitted under the 
Consolidated Plan of The Knolls Estates PUD, all on a non - exclusive 
and reasonable basis. 
THE KNOLLS ESTATES PUD/Consolidated PLAN PAGE 29 

BOOK 1304 PAGE 648 
12.09 Assumed risks bv Lot Owners: Each and every property 
buyer within The Knolls Estates PUD shall be aware and noticed upon 
recording of this document that they are at their own risk in respect to 
possible damage to property which may arise from the Knolls Golf 
Course adjacent to The Knolls Estates PUD and shall not hold such 
course or its owners liable for any such damage that should occur, 
example: golf balls hit out of bounds could cause glass breakage or 
other property or personal damage, etc. 
12.10 Notices: Any notice permitted or required by the 
Consolidated Plan of The Knolls Estates PUD or any Declaration 
thereof may be delivered either personally or by mail. Delivery by 
mail shall be by certified or registered mail, postage prepaid and 
addressed as follows: 

If to Developer: 
If to Owner: 

CIO The Alaska Sutherland Knolls Corporation 
P.O Box860 
Sutherlin, Oregon 97479 
At the address given him/her at the time of 
his/her purchase of a lot or the address to 
which he/she has caused notices of the 
Douglas County Assessor's Office to be sent 

The address of any person may be changed at any time by notice in writing 
delivered as provided herein. 
IN WITNESS WHEREOF. THE ALASKA SUTHERLAND KNOLLS 
CORPORATION has caused this declaration setting forth this 
Consolidated Plan of The Knolls Estates PUD to be executed by its 
President and Secretary this 23rdday of June. 1994. 
Sam Scardi, President 
Renee Burk, Secretary 
THE KNOLLS ESTATES PUD/CONSOLIDA1ED PLAN 
PAGE 30 
(Signed copies on file)