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DECLARATION


OF


COVENANTS, CONDITIONS AND RESTRICTIONS


FOR


CORYELL RANCH

Lawrence R. Green

P.O. Drawer 790
Glerrwood SprIngs. co 811102
.

 

 

TABLE OF CONTENTS

ARTICLE 1 GENERAL .................................................................................................. 1

1.1 Conununity Area ..................................................................................1
1.2 Purposes ofDeclaration .........................................................................1
1.3 Declaration ..........................................................................................1
1.4 Roaring Fork River .............................................................................. 2

ARTICLE 2 DEFINITIONS ..........................................................................................2

2.1 Act ....................................................................................................2
2.2 Administrative Functions.......................................................................2
2.3 Allocated Interests .............................................................................2
2.4 Annexable Property .............................................................................3
2.5 Articles ofIncorporation .....................................................................3
2.6 Assessment ......................................................................................3
2.7 Association .........................................................................................3
2.8 Association Functions .........................................................................3
2.9 Association Properties ...........................................................................4
2.10 Board ofDirectors ..............................................................................4
2.11 Budget ..............................................................................................4
2.12 Building Envelope ...................................................................................4
2.13 Bylaws ................................................................................................ 4
2.14 Conunon Area ................................................................................... 4
2.15 Conunon Assessment or Conunon Expenses ....................................... 4
2.16 Conununity Area ............................................................................. 5
2.17 Conservation Area ........................................................................... 5
2.18 Conservation Easement .................................................................. 5
2.19 County ................................................................................................ 5
2.20 Declaration ................. ........................................................................5
2.21 Declarant ............................................................................................... 5
2.22 Deed ofTrust .................................................................................... 5
2.23 Design Review Committee ..................................................................... 5
2.24 Improvement ........................................................................................ 5
2.25 Improvement to Property ................................................................... 6
2.26 Kennedy Easement ............................................................................ 6

 

2.27 Lease ............................................................................................ 6
2.28 Lot ..................................................................................................... 6
2.29 Maintenance Funds ......................................................................... 6
2.30 Member .......................................................................................... 6
2.31 Mortgage .............................................................................................6
2.32 Mortgagee ....................................................................................... 6
2.33 Mortgagor ......................................................................................... 7
2.34 Notice and Hearing ............................................................................. 7
2.35 Notice ofCompletion .............................................................................. 7
2.36 Owner .............................................................................................. 7
2.37 Permitted Exceptions ............................................................................ 7
2.38 Person .............................................................................................. 7
2.39 Planned Community .............................................................................. 7
2.40 Plat .................................................................................................. 7
2.41 Record or Recorded ............................................................................ 7
2.42 Recreational Easement ........................................................................ 7
2.43 Recreational Open Space .................................................................... 8
2.44 Reimbursement Assessment .............................................................. 8
2.45 River ...................................................................................................8
2.46 Rules and Regulations ...........................................................................8
2.47 Special Assessment ..............................................................................8
2.48 Supplemental Declaration ......................................................................8
2.49 Supplemental Plat ..................................................................................8
2.50 Tomcat Easement ............................................................................8

ARTICLE 3
GENERAL RESTRICTIONS APPLICABLE TO COMMUNITY

AREA ............................ 8

3.1 Maintenance ofCommunity Area ........................................................... 9
3.2 Property Uses .................................................................................. 9
3.3 Construction Type .............................................................................. 9
3.4 Building Envelopes ................................................................................... 9
3.5 No Noxious or Offensive Activity ......................................................... 9
3.6 Annoying Sounds or Odors ................................................................... 9
3.7 No Hazardous Activities .................................................................... 10
3.8 No Unsightliness ................................................................................... 10
3.9 Yards .................................................................................................. 10
3. I 0 Restrictions on Garbage and Trash ............................................... 10
3.11 Animals ...... : ...................................................................................... 10
3.12 NoTemporaryStructures .................................................................... 10
3.13 Restriction on Pipes and Utility ........................................................... 11
3.14 Restrictions on Signs and Advertising .............................................. 11

 

3.15 Restrictions on Mining or Drilling ....................................................... 11
3.16 Wells ................................................................................................. 11
3.17 Maintenance ofDrainage ......................................................................11
3.18 Compliance with Insurance Requirements ............................................. 12
3.19 Compliance with Laws ......................................................................... 12
3.20 Further Subdivision ofLots ................................................................. 12
3.21 Consolidation ofLots ............................................................................ 12
3.22 Restrictions on Sewage Disposal Systems ............................................... 12
3.23 Restrictions on Water Systems ............................................................ 12
3.24 Restoration in the Event ofDamage or Destruction ................................. 12
3.25 Storage ............................................................................................... 12
3.26 Vehicle Repairs ...................................................................................... 13
3.27 Storage ofGasoline and Explosives, Etc. . .............................................. 13
3.28 Trailers, Campers, Recreational and Junk Vehicles ................................. 13
3.29 Fences ............................................................................................ 13
3.30 Air Conditioning and Heating EquipmenVSolar Collecting Devices ......... 13

3.31 Leases .............................................................................................. 13
3.32 Lakes ............................................................................................. 14
3.33 Easements; Utilities ...................................................................... 14
3.34 Landscaping .................................................................................... 14
3.35 Swimming Pools and Pool Equipment .................................................. 15
3.36 Outside Lighting ................................................................................ 15
3.37 Prohibition on Use ofPesticides ...........................................................15
3.38 Fire Protection .............................................................................. 15
3.39 Engineering and Soils Reports .............................................................. 15
3.40 Irrigation Systems and Ditch Laterals ................................................... 15
3.41 Antenna and Satellite Dishes ......................................................... 16

ARTICLE 4 ARCHITECTURAL APPROVAL ............................................. 17

4.1 Approval ofImprovements Required ................................................. 17
4.2 Improvement to Property Defined ....................................................... 17
4.3 Membership of Committee ................................................................. 17
4.4 Establishment ofSubcommittees .......................................................... 18
4.5 Address ofDesign Review Committee ............................................. 18
4.6 Submission ofPlans ............................................................................... 18
4.7 Criteria for Approval ............................................................................. 18
4.8 Design Guidelines ............................................................................. 19
4.9 Design Review Fee ........................................................................... 19
4.10 Decision ofCommittee ........................................................................... 19
4.11 Failure ofCommittee to Act on Plans .................................................. 19
4.12 Completion ofWork After Approval .................................................... 19

 

4.13 Notice of Completion .............................................................................. 20
4.14 Inspection of Work ............................................................................... 20
4.15 Notice of Satisfactory Completion of Improvement to Property .............. 20

4.16 Notice of Noncompliance ..................................................................... 20
4.17 Performance Guaranty for Noncompliance or Incompletion ................. 21
4.18 Failure of Committee to Act After Completion ..................................... 21
4.19 Appeal to Board of Directors of Finding of Noncompliance ................. 22
4.20 Correction ofNoncompliance .............................................................. 22
4.21 No Implied Waiver or Estoppel ..................................................... 22
4.22 Committee Power to Grant Variances ............................................. 22
4.23 Meetings of Committee ........................................................................ 23
4.24 Records of Actions ............................................................................. 23
4.25 Estoppel Certificates ............................................................................ 23
4.26 Nonliability of Committee Action ......................................................... 23
4.27 Construction Period Exception ........................................................... 24

ARTICLE 5 ASSOCIATION PROPERTIES ............................................................. 24

5.1 Member's Rights of Use and Enjoyment Generally ............................... 24
5.2 Right of Association to Regulate Use ............................................... 24
5.3 No Partition of Association Properties .................................................. 24
5.4 Liability of Owners for Damage .............................................................. 24
5.5 Association Duties if Damage, Destruction, or Required
Improvements ........................................................................................... 24

5.6 Association Powers in the Event of Condemnation ................................. 25
5.7 Title to Association Properties on Dissolution of Association ................. 25

ARTICLE 6 DECLARANT'S RIGHTS AND RESERVATIONS .......................................... 26

6.1 Period of Declarant's Rights and Reservations ........................................ 26
6.2 Right to Construct Additional Improvements on Association
Properties ............................................................................................... 26

6.3 Declarant's Rights to Use Association Properties in
Promotion and Marketing of Community Area .......................................... 26

6.4 Declarant's Rights to Complete Development of Community Area .......... 26

6.5 Declarant's Approval of Conveyances or Changes in Use of
Association Properties ............................................................................. 27

6.6 Declarant's Rights to Grant and Create Easements ................................... 27
6.7 Declarant's Rights to Convey Additional Property to Association ............... 27

6.8 Annexation of Additional Properties .................................................... 28
6.9 Annexation of Additional Unspecified Real Estate ................................. 29
6.10 Withdrawal of Annexed Property ....................................................... 29

 

6.11 Expansion or Contraction ofAnnexable Property ..................................30
6.12 Creation of Drainage Easements .. ......................................................30

6.13 Conversion of Common Areas to Lots .............................................30
6,14 Subdivision of Lots ..............................................................................30
6,15 Expansion of Permitted Property Uses ............................................... 30

ARTICLE 7 ASSOCIATION OPERATION .................................................................30

7.1 Association.............................................................................................30
7.2 Association Board of Directors ............................................................31
7.3 Membership in Association.....................................................................31

7.4 Voting Rights of Members ..................................................................... 31
7.5 Declarant Control .................................................................................. 31
7.6 Determination of Member Voting Privileges ............................................31
7.7 Registration of Owners .......................................................................32

ARTICLE 8 DUTIES AND POWERS OF ASSOCIATION ...........................................32

8.1 General Duties and Powers ofAssociation .............................................32

8.2 Duty to Accept Property and Facilities Transferred by Declarant ................32
8.3 Landscaping Easement .......................................................................33

8.4 Duty to Manage and Care for Association Properties ............................... 33

8.5 Duty to Pay Taxes ...............................................................................33

8.6 Duty to Maintain Casualty Insurance ......................................................33

8.7 Duty to Maintain Liability Insurance ......................................................34
8,8 General Provisions Respecting Insurance ............................................. 34

8.9 Maintenance of Fidelity Insurance ...................................................35

8.1 0 Other Insurance and Bonds ..............................................................35
8.11 Duty to Prepare Budgets..................................................................35

8.12 Duty to Levy and Collect Assessments ................................................. 35

8.13 Duty to Keep Association Records .......................................................35

8.14 Duties with Respect to Design Review Committee Approvals..................35
8.15 Power to Acquire Property and Construct Improvements........................35
8.16 Power to Adopt Rules and Regulations .. ...............................................36

8.17 Power to Enforce Declaration and Rules and Regulations ....................... 36
8.18 Power to Grant Easements ...................................................................... 37
8.19 Power to Convey and Dedicate Property to Governmental Agencies ............37
8.20 Power to Borrow Money and Mortgage Property ..................................37

8.21 Power to Engage Employees, Agents, and Consultants ..................... 37

8.22 General Corporate Powers ................................................................. 37

8.23 Power to Provide Association Functions ................................................ 38
8.24 Power to Provide Special Services to Members ....................................38

                   8.25 Power to Charge for Association Properties, Facilities and Services .............. 38

8.26 Power to Employ Managers ............................................................. 38
8.27 Powers Provided by Law ................................................................... 38

ARTICLE 9 ASSESSMENTS, BUDGETS AND FUNDS ...................................... 39

9.1 Maintenance Funds to be Established ................................................... 39
9.2 Establishment ofOtber Funds ................................................................... 39
9.3 Deposit ofCommon Assessments to Maintenance Funds .......................... 39
9.4 Other Deposits to Maintenance Funds ..................................................... 39
9.5 Disbursements from Maintenance Funds .................................................. 40
9.6 Authority for Disbursements ................................................................... 40
9.7 Common Assessments ........................................................................... 40
9.8 Apportionment ofCommon Assessments .................................................. 40
9.9 Funding ofReserve Funds ...................................................................... 40
9.10 Supplemental Common Assessments .................................................. 40
9.1 1 Annual Budgets ............................................................................... 41
9.12 Commencement ofCommon Assessments/Community Areas .............. 41
9.1 3 Payment ofAssessment .................................................................... 41
9.14 Failure to Fix Assessment ...................................................................41
9.15 Special Assessments for Capital Expenditures ....................................... 42
9.16 Reimbursement Assessments .............................................................. 42
9.17 Late Charges and Interest ..................................................................... 42
9.18 Attribution ofPayrnents ........................................................................ 42
9.19 Notice ofDefault ..... ............................................................................. 42
9.20 Remedies to Enforce Assessments ....................................................... 43
9.21 Lawsuit to Enforce Assessments ........................................................ 43
9.22 Lien to Enforce Assessments ............................................................. 43
9.23 Estoppel Certificates ......................................................................... 43
9.24 No Offsets .......................................................................................... 44

ARTICLE 10 SPECIAL PROVISIONS ...................................................................... 44

10.1 Air Quality Restrictions ....................................................................... 44
10.2 Duration and Enforceability .................................................................... 44

ARTICLE 11 MISCELLANEOUS ................................................................................ 45

11.1 Term ofDeclaration .............................................................................. 45
11.2 Amendment ofDeclaration by Declarant .................................................... 45
11.3 Amendment ofDeclaration by Members .................................................. 45
11.4 Amendment ofArticles and Bylaws ................................................... 46

11.5 Alternative Dispute Resolution ............................................................... 46
1l.6 Special Rights ofFirst Mortgagees ........................................................ 46
11.7 Priority ofFirst Mortgage Over Assessments ......................................... 46
11.8 First Mortgage Right to Pay Taxes and Insurance Premiums .................. 47
1l.9 Association Right to Mortgage Information ................................ 47
11.10 Notices ................................................................................................ 47
1l.11 Persons Entitled to Enforce Declaration .................................................. 47
11.12 Violations Constitute a Nuisance ........................................................... 47
11.13 Enforcement ofSelf-Help ....................................................................... 48
11.14 Violations ofLaw ................................................................................. 48
11.15 Remedies Cumulative .............................................................................48
11.16 Costs and Attorneys' Fees .................................................................. 48
11.17 Limitation on Liability ........................................................................... 48
11.18 No Representations or Warranties ............................................................. 48
11.19 Liberal Interpretation ................................................................................ 48
11.20 Governing Law ........................................................................................ 48
11.21 Colorado Common Interest Ownership Act ............................................... 48
11.22 Severability ......................................................................................... 49
11.23 Number and Gender ............................................................................... 49
11.24 Captions for Convenience ..................................................................... 49
11.25 Mergers or Consolidations ........................................................................ 49
11.26 Disclaimer Regarding Safety ........................................................................ 49

 

DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
CORYELL RANCH

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR
COR YELL RANCH ("Declaration") is made as ofthis __day ofJanuary, 2000, by Coryell Ranch
Company, L.L.c., a Colorado limited liability company ("Declarant").

ARTICLE 1
GENERAL

1.1     Community Area. Declarant is the owner ofthat certain parcel ofland located in the
County of Garfield, Colorado, more particularly described on Exhibit "A", attached hereto and
incorporated herein by reference (the "Community Area"). Declarant intends to develop the
Community Area, and any property annexed thereto in accordance with this Declaration, as a high
quality Planned Community of single family residential structures. There shall be a maximum of
thirty-eight (38) Lots within the Planned Community.

1.2     Purposes ofDeclaration. This Declaration is executed (a) in furtherance ofa common
and general plan for the Community Area and the Annexable Property; (b) to protect and enhance
the quality, value, desirability and attractiveness of the Community Area; (c) to provide for an
Association as a vehicle to hold, maintain, care for and manage Association Properties, including
intemallandscaped areas which will benefit all Owners ofLots; (d) to define the duties, powers and
rights ofthe Association; (e) to define certain duties, powers and rights ofOwners ofLots within the
Community Area; and (f) to comply with and effectuate the terms and provisions of the Act.

1.3     Declaration. Declarant, for itself, its successors and assigns, hereby declares that the
Community Area and all property which becomes subject to this Declaration in the manner
hereinafter provided, and each part thereof shall from the date the same becomes subject to this
Declaration, be owned, held, transferred, conveyed sold, leased, rented, hypothecated, encumbered,
used, occupied, maintained, altered and improved subject to the covenants, conditions, restrictions,
limitations, reservations, exceptions, equitable servitudes and other provisions set forth in this
Declaration, for the duration hereof, all of which are declared to be part of, pursuant to, and in
furtherance of a common and general plan of development, improvement, enhancement and
protection ofthe Community Area. Notwithstanding the foregoing, in no event shall the Annexable
Property, or any portion thereof, be deemed to be burdened by, or subject to, the terms of this
Declaration until such property has been annexed to the Community Area, at Declarant's sole option,
as more particularly provided herein. The provisions of this Declaration are intended to and shall
run with the land, and until their expiration in accordance with the terms hereof, shall bind, be a
charge upon and inure to the mutual benefit of (a) the Community Area and all property which
becomes part of the Community Area, and each part or parcel thereof, (b) Declarant and its
successors and assigns, (c) the Association and its succeSSOrs and assigns, and (d) all Persons having

or acquiring any right, title or interest in any property which is or becomes part of the Community
Area, or any part or parcel thereof, or any Improvement thereon, and their heirs, personal
representatives, successors and assigns. This Declaration shall be Recorded in the County and shall
be indexed in the grantee's index in the name of the Declarant and the Association and in the
Grantor's Index in the name ofeach person or entity executing this Declaration.

1.4     Roaring Fork River. To the extent the Community Area shall abut the River, the
terms and provisions ofthis Declaration shall be subject to the rights ofthe general public to use the
River for passage through the Community Area.


ARTICLE 2
DEFINITIONS

Unless otherwise expressly provided herein, the following words and phrases when used in
this Declaration shall have the meanings hereinafter specified.

2.1     Act. "Act" shall mean the Colorado Common Interest Ownership Act, C.R.S. 38-33.3101,
et. seq., as the same may be amended from time to time.

2.2     Administrative Functions. "Administrative Functions" shall mean all functions as
are necessary and proper under this Declaration and shall include, without limitation, providing
management and administration ofthe Association; providing architectural review services under
Article 4 hereof; incurring reasonable attorneys' fees and accountants' fees; obtaining errors and
omissions insurance for officers, directors and agents ofthe Association; obtaining fidelity bonds
for any Person handling funds of the Association; paying taxes levied against the Association
Properties; incurring filing fees, recording costs, and bookkeeping fees; obtaining and maintaining
offices and office furniture and equipment; and performing other such reasonable and ordinary
administration tasks associated with operating the Association as determined by the Board of
Directors from time to time.

2.3     Allocated Interests. "Allocated Interests" means the Common Expenses liability and
the votes in the Association allocated to each Lot which interests are allocated as follows:

2.3.1 The Common Expenses liability for each Lot is calculated on the basis of a
fraction, the numerator ofwhich is one (I) and the denominator ofwhich is the total number
of Lots in the Community Area as of the date ofthe calculation. The denominator may be
increased from time to time by the Declarant upon the addition of Lots to the Community
Area which can be conveyed to third parties. Such fraction is then multiplied by the
Common Expenses or the Assessment in question to determine that Lot's share thereof. The
Common Expenses liability of a Lot is determined without reference to the size, location,
value or use of the Lot.

2.3.2 One (I) vote in the Association is allocated to each Lot in the Community
Area.

2.3.3 The foregoing allocations may not discriminate in favor of Lots owned by
Declarant or an affiliate of Declarant.

2.3.4 IfLots are added to or withdrawn from the Community Area, (i) the Common
Expenses liability for each Lot shall be reallocated on the basis of a fraction, the numerator
of which is one (\) and the denominator of which is the total number of Lots in the
Community Area following the addition or withdrawal ofsuch Lots, and (ii) one vote in the
Association shall continue to be allocated to each Lot in the Community Area following the
addition or withdrawal of such Lots.
The Allocated Interests for the Community Area are specifically set forth on Exhibit B attached
hereto and made a part hereof by this reference, as said Exhibit B may be amended from time to
time.

2.4     Annexable Proper1y. "Annexable Property" shall mean that real property which is
not initially made subject to the tenus and provisions of this Declaration. The real property which
comprises the Annexable property is more particularly described on Exhibit "C", attached hereto and
incorporated herein by reference, and may include such other property which may be annexed to and
made a part of the Community Area, as more particularly provided herein.

2.5     Articles of Incomoration. "Articles of Incorporation" shall mean the Articles of
Incorporation of The Homeowners Association of The Coryell Ranch, which have been filed with
the office ofthe Secretary of State in the State of Colorado, as the same may be amended from time
to time.

2.6     Assessment. "Assessment" shall mean a Common Assessment, Special Assessment
or Reimbursement Assessment.

2.7     Association. "Association" shall mean The Homeowners Association ofThe Coryell
Ranch, a Colorado nonprofit corporation, its successors and assigns.

2.8     Association Functions. "Association Functions" shall mean and include, but not be
limited to, the act ofproviding, installing, operating, administering, managing, and overseeing public
utilities, services, and functions for the benefit of Owners, including repairs, replacements and
maintenance obligations commonly associated with municipal or other local governmental or quasigovernmental
organizations, including, without limitation, repair and maintenance of streets,
sidewalks, bicycle and pedestrian paths and walkways; animal, vegetation, insect, and pest control;
television service; parking facilities; public transportation facilities, including paths and trails; street
cleaning and snow removal; signage, including entry monuments; lighting, including seasonal
lighting; project and perimeter fencing; landscape walls, landscaping services and facilities; drainage
facilities, including retention and detention ponds; trash and solid waste disposal services, including
recycling programs; operation, maintenance and repair of utility services, including, without
limitation, domestic water service and irrigation water service; and such other services, functions and
activities, as are deemed appropriate by the Board of Directors. The foregoing list shall not be deemed to be a representation by Declarant of services of facilities which will be available for use
of the Owners.

2.9     Association Properties. "Association Properties" shall mean: (a) all real and personal
property, including Improvements now or hereafter owned by the Association; (b) all Common
Areas, now or hereafter owned by the Association; or (c) all real or personal property with respect
to which the Association holds an easement or license for the use, care, or maintenance thereof, or
for which the Association has a right or duty to maintain, and which property is held for the common
use and enjoyment of the Members pursuant to the terms and provisions of this Declaration. As of
the date of this Declaration, the Association Properties are subject to the Permitted Exceptions.

2.10     Board of Directors. "Board of Directors" or "Board" shall mean the Board of
Directors of the Association.

2.11     Budget. "Budget" shall mean a written itemized estimate of the expenses to be
incurred by the Association in performing its functions under this Declaration and prepared pursuant
to Section 9.11 of this Declaration.

2.12     Building Envelope. "Building Envelope" shall mean that portion ofeach Lot which
is designated on the Plat as suitable for construction ofhabitable living space thereon. As more fully
provided herein, all Improvements to be constructed on a Lot, with the exception of Improvements
which are necessary to facilitate ingress to and egress from a Lot or Improvements which are
otherwise expressly authorized by the Design Review Committee, shall be located within the
Building Envelope designated for such Lot.

2.13     Bylaws. "Bylaws" shall mean the Bylaws ofthe Association which have been or will
be adopted by the Board of Directors ofthe Association, as the same may be amended from time to
time.

2.14     Common Area. "Common Area" shall mean any portions of the Community Area
designated on the Plat as Common Area or Open Space and which is owned or maintained by the
Association for the common use and enjoyment of the Owners, including, but not limited to, all
streets, lanes, alleys, rights-of-way, roads, entry ways, fishing ponds, entry features, sidewalks,
pathways, trails, gardens or other open space, and such other easements for the use and benefit of
the Owners as may be provided in this Declaration. Such Common Area may be owned: (a) by the
Association; (b) in undivided interests by certain Owners; or (c) separately by individual Owners
over which the Association may have an easement for maintenance purposes.

2.15     Common Assessment or Common Expenses. "Common Assessment" or "Common
Expenses" shall mean the assessments made for the purpose of covering the portion of the annual
expense ofoperating the Association, including, but not limited to, expenses incurred in connection
with any authorized function of the Association, which are to be paid by each Owner to the
Association for the purposes provided herein and charged to such Owner and to the Lot of such
Owner.

2.16     Community Area. "Community Area" shall mean the real property described in
Exhibit "A" attached hereto, subject to the Pennitted Exceptions, and such other real property which
may be made subject to this Declaration, from time to time, together with all Improvements and
other amenities now or hereafter located thereon, and together with all easements, rights,
appurtenances and privileges belonging or in any way pertaining thereto.

2.17     Conservation Area. "Conservation Area" shall mean that certain real property
described on Exhibit "0" which shall be subject to the Conservation Easement.

2.18     Conservation Easement. "Conservation Easement" shall mean that certain Grant of
Conservation Easement to be granted by Declarant to the Roaring Fork Conservancy over the
Conservation Area. The purpose of the Conservation Easement is to preserve the conservation
values as defined in the Conservation Easement of the Conservation Area. The Conservation
Easement grants to the Roaring Fork Conservancy the right to preserve and maintain those values
within the Conservation Easement and along the Crystal River. Pursuant to the tenns of the
Conservation Easement, the Declarant, and its successors and assigns, including the Association,
shall be responsible to pay the Roaring Fork Conservancy for the perfonnance ofits duties under the
Conservation Easement, all as more particularly set out in the Conservation Easement.

2.19     County. "County" shall mean Garfield County, Colorado.

2.20     Declaration. "Declaration" shall mean this instrument as it may be amended from
time to time.

2.21     Declarant. "Declarant" shall mean Coryell Ranch Company, L.L.C., a Colorado
limited liability company, its successors, assigns and affiliates. A Person shall be deemed to be a
"successor and assign" of Coryell Ranch Company, L.L.c., as Declarant only, if specifically
designated in a duly Recorded instrument as a successor or assign of Declarant under this
Declaration and shall be deemed a successor and assign ofDeclarant only as to the particular rights
or interests of Declarant under this Declaration which are specifically designated in the written
instrument. However, a successor to Coryell Ranch Company, L.L.c. by consolidation or merger
shall automatically be deemed a successor or assign ofCoryell Ranch Company, L.L.C., as Declarant
under this Declaration.

2.22     Deed ofTrust. "Deed of Trust" shall have the same meaning as a Mortgage.

2.23     Design Review Committee. "Design Review Committee" shall mean the Committee
provided for in Article 4 of this Declaration.

2.24     Improvement. "Improvement" shall mean all structures and any appurtenances thereto
of every type or kind, including, but not limited to, dwelling units, buildings, outbuildings,
swimming pools, patio covers, awnings, painting of any exterior surfaces of any visible structure,
additions, walkways, outdoor SCUlptures or artwork, sprinkler pipes, garages, carports, roads,
driveways, parking areas, fences, screening walls, retaining walls, stairs, decks, fixtures, landscaping,
hedges, windbreaks, plantings, planted trees and shrubs, poles., signs, exterior tanks, solar equipment,
exterior air conditioning and water softener fixtures.

2.25     Improvement to Property. "Improvement to Property" shall mean any Improvement,
change, alteration or addition to any property within the Community Area. "Improvement to
Property" shall include, but not be limited to those improvements more particularly described in
Section 4.2 ofthis Declaration.

2.26     Kennedv Easement. "Kennedy Easement" shall mean that certain easement shown
on the Recorded Plat ofthe Community Area for the benefit ofthe owners ofParcels A and B ofthe
Kennedy Subdivision Exemption Plat, Garfield County, Colorado, together with a perpetual, nonexclusive
easementto be granted byDeclarant over the streets and roads within the Community Area
for access to and from said Kennedy Exemption Plat Parcels.

2.27     Lease. "Lease" shall mean and refer to any agreement for the leasing or rental .. <:>f a
dwelling unit located on a Lot, and shall specifically include, without limitation, a month-to-month
rental.

2.28     Lot. "Lot" shall mean any lot within the Community Area which is shown upon any
Recorded Plat, Supplemental Plat, or any other parcel of land which may be sold or conveyed
without violation of the provisions of Colorado law pertaining to the subdivision of land. For
purposes ofconforming the terms and provisions ofthis Declaration to the terms and conditions of
the Act, the term "Lot" shall be analogous to the term "Unit," as that term is defined in the Act.

2.29     Maintenance Funds. "Maintenance Funds" shall mean the accounts into which the
Board shall deposit monies paid to the Association and from which disbursements shall be made in
the performance of the functions ofthe Association pursuant to Article 8 hereof

2.30     Member. "Member" shall refer to the members ofthe Homeowners Association of
The Coryell Ranch and shall mean the Person or, if more than one, all Persons collectively who
constitute the Owner ofa Lot.

2.31     Mortgage. "Mortgage" shall mean any mortgage or deed of trust or other such
instrument, given by the Owner of a Lot, encumbering the Lot to secure the performance of an
obligation or the payment ofa debt and which is required to be released upon performance ofthe
obligation or payment ofthe debt. The term "Deed ofTrnst" when used herein shall be synonymous
with the term "Mortgage".

.
2.32     Mortgagee. "Mortgagee" shall mean a mortgagee under a Mortgage or a beneficiary
under a Deed ofTrust, as the case may be, and the assignees ofsuch mortgagee.

 

2.33     Mortgagor. "Mortgagor" shall mean the Person who mortgages his or its property to
another (i.e., the maker or grantor ofa Mortgage). The term "Mortgagor" shall include a trustor or
grantor under a Deed of Trust.

2.34     Notice and Hearing. "Notice and Hearing" shall mean a written notice and public
hearing before the Board of Directors or a Tribunal, as defined in the Bylaws, appointed by the
Board, in the manner provided in the Bylaws.

2.35     Notice of Completion. "Notice of Completion" shall mean written notice to the
Design Review Committee of the completion of any Improvement to Property pursuant to Article
4 of this Declaration.

2.36     Owner. "Owner" shall mean the Person, including Declarant, or, ifmore than one,
all Persons collectively, who hold fee simple title of Record to a Lot, including sellers under
executory contracts ofsale and excluding buyers thereunder.

2.37     Permitted Exceptions. "Permitted Exceptions" shall mean all easements, liens,
licenses, and other items of record which encumber the Community Area as of the date this
Declaration is recorded, which are enumerated on Exhibit E attached hereto and incorporated herein
by this reference.

2.38     Person. "Person" shall mean a natural person, a corporation, a limited liability
company, a partnership, or any other entity capable of holding title to real property pursuant to the
laws of the State of Colorado.

2.39     Planned Communi tv. "Planned Community" shall have the same meaning as set forth
in the Act.

2.40     Plat. "Plat" shall mean and include the land survey plat (and any amendments thereto)

which depicts all or a portion ofthe Community Area and which further depicts and locates thereon
the location ofLots, Building Envelopes, Common Areas, and such other items as may be required
by the Act. The Plat, and any amendments or supplements thereto, are hereby incorporated herein
and made a part hereofby reference. For the purposes ofthis Declaration, the term "Plat" shall also
mean and include such Supplemental Plat Recorded by Declarant for the purposes of annexing all
or a portion of the Annexable Property to the Community Area.

2.41     Record or Recorded. "Record" or "Recorded" shall mean the filing for record of any
document in the office of the Clerk and Recorder of the County.

2.42     Recreational Easement. "Recreational Easement" shall mean that certain easement
to be granted by the Declarant for the benefit of owners of property within the Aspen Glen P.U.D.
which shall be substantially in the same form as Exhibit "G" attached hereto.

2.43     Recreational Open Space. "Recreational Open Space" shall mean that real property
described on Exhibit "H" which shall be subject to the Recreational Easement.

2.43     Reimbursement Assessment. "Reimbursement Assessment" shall mean a charge
against a particular Owner and his Lot for the purpose of reimbursing the Association for
expenditures and other costs of the Association in curing any violation, directly attributable to the
Owner, of the Declaration or the Rules and Regulations, pursuant to Section 9.16 hereof, together
with late charges and interest as provided for herein.

2.44     River. "River" shall mean the Roaring Fork River.

2.45     Rules and Regulations. "Rules and Regulations" shall mean rules and regulations
adopted by the Board of Directors, as provided in Section 8.16 of this Declaration.

2.46     Special Assessment. "Special Assessment" shall mean a charge against each Owner
and his Lot representing a portion ofthe costs ofthe Association for the purpose of funding capital
repairs, maintenance, replacements, and Improvements, or for any other purpose authorized by the
Board of Directors as provided herein.

2.47     Supplemental Declaration. "Supplemental Declaration" shall mean a written
instrument containing covenants, conditions, restrictions, reservations, easements, or equitable
servitudes, or any combination thereof, i.vhich may be Recorded on any portion of the Annexable
Property in accordance with Section 6.8 of this Declaration.

2.48     Supplemental Plat. "Supplemental Plat" shall mean and include any land survey plat
which is Recorded by Declarant for the purpose of annexing the property described therein to the
Community Area.

2.49     Tomcat Easement. "Tomcat Easement" shall mean that certain easement shown on
the Recorded Plat of the Community Area for the benefit of the owners of Lot I and Lot 2 Tomcat
Ranch Subdivision, Garfield County, Colorado together with a perpetual, non-exclusive easement
to be granted by Declarant over the streets and roads within the Community Area for access to and
from said Tomcat Ranch Subdivision Lots.

 


ARTICLE 3
GENERAL RESTRICTIONS APPLICABLE TO COMMUNITY AREA

All real property within the Community Area shall be held, used, and enjoyed subject to the
following limitations and restrictions, and subject to exemptions of Declarant set forth in this
Declaration. The strict application of the following limitations and restrictions in any specific case
may be modified or waived in whole or in part by the Design Review Committee if such strict
application would be unreasonably or unduly harsh under the circumstances. Any such modification
or waiver must be in "'Titing or be contained in written guidelines or rules promulgated by the Design
Review Committee. Violation ofthis Article by an Owner shall permit the Association, after Notice
and Hearing, to enter on the Lot of the Owner and cure the violation or cause compliance with this
provision and to levy and collect a Reimbursement Assessment for the costs and expenses of the
Association in so doing; provided, however, that there shall be no entry into the interior of an
Improvement intended for human occupancy without the consent ofthe Owner thereof unless a clear
emergency exists.

3.1     Maintenance ofCommunity Area. No property within the Community Area shall be
permitted to fall into disrepair, and all property within the Community Area, including any
Improvements and landscaping thereon, shall be kept and maintained in a clean, attractive, and
sightly condition and in good repair. Maintenance, repair, and upkeep of each Lot shall be the
responsibility of the Owner of the Lot. Maintenance, repair and upkeep of Association Properties
shall be the responsibility of the Association.

3.2     Property Uses. Except as otherwise provided in Article 6 hereof, all Lots shall be
used for private residential purposes and no dwelling unit erected or maintained within the
Community Area shall be used or occupied for any purpose other than for single-family dwellings.
Notwithstanding the foregoing, business activities associated with the sale of Lots or residences
constructed thereon shall be allowed. In addition, in-home businesses or occupations not involving
the servicing of customers or employees, other than the Owners. shall be allowed, provided such
activities are conducted solely within the residence and do not create or result in any nuisance or any
unreasonable, unwarranted, or unlawful use or interference with public or private rights, including,
but not limited to, unreasonable or unwarranted use or interference with streets, excessive traffic or
parking requirements, rights-of-way, or sidewalks, or in any other offensive or noxious activities.

3.3     Construction Type. All construction shall be new. No building previously used at
another location nor any building or structure originally constructed as a mobile dwelling or structure
may be moved onto a Lot, except as expressly hereinafter provided for temporary buildings. In
addition to the foregoing, an engineered foundation shall be required for all residential dwelling units
constructed within the Community Area.

3.4      Building Envelopes. All improvements to be constructed on a Lot, with the exception
ofImprovements which are necessary to facilitate ingress to and egress from a Lot or Improvements
which are otherwise expressly authorized by the Design Review Committee, shall be located within
the Building Envelope designated for such Lot.

3.5     No Noxious or Offensive Activity. No noxious or offensive activity shaH be carried
on upon any property within the Community Area, nor shaH anything be done or placed thereon
which is or may become a nuisance or cause an unreasonable embarrassment, disturbance, or
annoyance to others.

3.6     Annoying Sounds or Odors. No sound or odor shall be emitted from any property
within the Community Area which is noxious or unreasonably offensive to others. Without limiting
the generality of the foregoing, no exterior speakers, horns, whistles, bells, or other sound devices,
other than security devices used exclusively for security purposes, shall be located or used on any
property except with the prior wTitten approval of the Design Review Committee.

3.7     No Hazardous Activities. No activity shall be conducted on, and no Improvement
shall be constructed on, any property within the Community Area which is or might be unsafe or
hazardous to any Person or property. Without limiting the generality of the foregoing, no firearms
shall be discharged upon any property within the Community Area.

3.8     No Unsightliness. All unsightly structures, facilities, equipment, objects, and
conditions shall be enclosed within a structure, including snow removal equipment and garden or
maintenance equipment except when in actual use. No laundry or wash shall be dried or hung
outside any dwelling unit.

3.9     Yards. All yards and open spaces and the entire area of every Lot on which no
building has been constructed shall be maintained in accordance with standards to be established by
the Design Review Committee. In addition, each Lot shall be kept free from brush or other growth
or trash which, in the reasonable opinion of the Design Review Committee, is unsightly or causes
undue danger of fire. Notwithstanding the foregoing, the Design Review Committee shall be
authorized to permit landscaping on a Lot in accordance with a landscaping plan approved by the
Design Review Committee in accordance with the provisions hereof.

3.10     Restrictions on Garbage and Trash. No refuse, garbage, trash, lumber, grass, shrub
or tree clippings, plant waste, compost, metal, bulk materials, scrap, refuse, or debris of any kind
shall be kept, stored, or allowed to accumulate on any Lot except within an enclosed structure or
appropriately screened from view, except that any container containing such materials may be placed
outside at such times as may be necessary to permit garbage or trash pickUp.

3.11     Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept
on any Lot, except that domesticated birds or fish and other small domestic animals permanently
confined indoors will be allowed. No other animals, except an aggregate of not more than two (2)
domesticated animals (e.g., one (I) cat and one (I) dog) per Lot, will be permitted within the
Community Area; provided that Ca) such animals are not kept, bred, or maintained for any
commercial purpose; (b) such animals must be fenced or restrained at all times within a Lot; and (c)
only one (I) dog will be allowed for each residential dwelling unit located within the Community
Area. No animal of any kind shall be permitted which in the opinion of the Design Review
Committee makes an unreasonable amount of noise or odor or is a nuisance. All household pets
shall be controlled by their Owner and shall not be allowed off the Owner's Lot except when properly
leashed and accompanied by the pet Owner or his representative. Each Owner of a household pet
shall be financially responsible and liable for any damage or destruction caused by said household
pet and shall be personally and financially responsible for any clean-up related to such pet.

3.12     No Temporary Structures. No tent, shack, temporary structure, or temporary building
shall be placed upon any property within the Community Area except with the prior written consent
of the Design Review Committee obtained in each instance.

 

3. 13     Restriction on Pipes and Utility Lines. Pipes for water, gas, sewer, drainage, or other
purposes, and utility meters or other utility facilities shall be kept and maintained, to the extent
reasonably possible, underground or within an enclosed structure. Solar power units meeting all
governmental guidelines for residential purposes may be utilized ifsuch unit is approved in advance
by the Design Review Committee.

3. 14     Restrictions on Signs and Advertising. No sign, poster, billboard, advertising device,
or display of any kind shall be erected or maintained anywhere within the Community Area so as to
be evident to public view. Provided, however, development related signs owned or erected by
Declarant and house numbering signs approved by the Design Review Committee shall be permitted.
"For Sale" or "For Rent" signs shall not be permitted.

3.15     Restrictions on Mining or Drilling. No property within the Community Area shall
be used for the purpose of mining, quarrying. drilling, boring, or exploring for or removing
underground water, oil, gas, or other hydrocarbons, minerals, rocks, stones, gravel, or earth, except
as deemed necessary by Declarant or any Person designated by Declarant for the development ofthe
Community Area as contemplated herein. Additionally, Declarant, for itself and its successors and
assigns, excepts and reserves, and shall retain the right to develop and remove, any such oil, gas,
hydrocarbons or minerals by slant drilling or other suitable means of subterranean entry; provided,
however, that any such method of slant drilling or other means of subterranean entry may only be
employed without impairing structures, Improvements or appurtenances, or the use thereof, located
or to be located on any Lot.

3.16     Wells. No well from which water is produced shall be dug, nor shall storage tanks
or reservoirs be made or operated anywhere in the Community Area; provided, however, the
Association shall have such right, but not the obligation, in connection with its performance of
Association Functions to drill wells; provided, further, that nothing herein shall prevent the drilling
or, the installation ofwells, or the construction and maintenance ofwater storage tanks by Declarant
or any special district in which the Community Area is located, for purposes ofproviding water to
the Community Area and adjacent areas.

3.17     Maintenance of Drainage. There shall be no interference with the established
drainage pattern over any property within the Community Area, except as approved in writing by the
Design Review Committee. Approval shall not be granted unless provision is made for adequate
alternate drainage. The "established drainage pattern" shall mean the drainage pattern which exists
at the time the overall grading of any property is completed and shall include any established
drainage pattern shown on any plans approved by the Design Review Committee. The established
drainage pattern may include the drainage pattern: (a) from Association Properties over any Lot; (b)
from any Lot over the Association Properties; (c) from any property owned by the County or other
Persons over any Lot; (d) from any Lot over property owned by the County or other Persons; or (e)
from any Lot over another Lot.

3.18     Compliance with Insurance Requirements. Except as may be approved in writing by
the Board ofDirectors, nothing shall be done or kept on property within the Community Area which
may result in a material increase in the rates of insurance or would result in the cancellation ofany
insurance maintained by the Association or any other Owner within the Community Area.

3.19     Compliance with Laws. Nothing shall be done or kept on any property within the
Community Area in violation of any law, ordinance, rule, or regulation of any governmental
authority having jurisdiction.

3.20     Further Subdivision ofLots. The Owner of a Lot shall not subdivide a Lot.

3.21     Consolidation ofLots. The Owner ofmore than one contiguous Lot, may request the
Design Review Committee for permission to apply to the appropriate officials of Garfield County,
Colorado, to consolidate such Lots into one Lot. Such request must be submitted with a plat
showing the new proposed BuildingEnvelope and a Phase I Geologic Investigation by a professional
geologist relative to the Lots being so combined. Should the Design Review Committee and the
appropriate Garfield County, Colorado office approve such combination, the Owner shall remain
responsible for paying assessments for each Lot as if such combination had not occurred and shall
also be entitled to one (I) vote for each Lot as if such Lots had not been combined.

3.22     Restrictions on Sewage Disposal Systems. Except as deemed necessary by Declarant
in the development of the Community Area contemplated herein, no cesspool, septic tank, or other
individual sewage disposal system shall be installed within the Community Area.

3.23     Restrictions on Water Systems. Except as deemed necessary by Declarant in the
development of the Community Area contemplated herein and except as provided in Section 3.40
hereof, no individual water supply system shall be installed or maintained for any property within
the Community Area.

3.24     Restoration in the Event of Damage or Destruction. In the event of damage or
destruction ofany Improvement on any Lot, the Owner thereof shall cause the damaged or destroyed
Improvement to be restored or replaced to its original condition or such other condition as may be
approved in writing by the Design Review Committee, or the Owner shall cause the damaged or
destroyed Improvement to be demolished and the Lot to be suitably landscaped, subject to the
approval of the Design Review Committee, so as to present a pleasing and attractive appearance.
Such Improvements shall be repaired, restored, or otherwise demolished and suitably landscaped
within an established time frame set forth in design review guidelines promUlgated by the Design
Review Committee.

3.25     Storage. No building materials shall be stored on any Lot except temporarily during
continuous construction of an Improvement.

3.26     Vehicle Repairs. No maintenance, servicing, repair, dismantling, or repainting ofany
type of vehicle, boat, machine, or device may be carried on, except within a completely enclosed
structure which screens the sight and sound of the activity from the street and from other Lots.

3.27     Storage of Gasoline and Explosives, Etc. No Lot shall be used for the storage of
explosives, gasoline, or other volatile and/or incendiary materials or devices or any materials deemed
hazardous substances under applicable environmental laws, rules, or regulations. Gasoline or fuel
for Owner's lawn mower, snowblower, and the like may be maintained on an incidental basis on the
Lot in an amount not to exceed ten (l0) gallons.

3.28     Trailers. Campers, Recreational and Junk Vehicles. No boat, camper (on or off
supporting vehicles), trailer, tractor, truck, industrial or commercial vehicle (both cabs or trailers),
towed trailer unit, motorcycle, disabled, junk, or abandoned vehicles, motor home, mobile home,
recreational vehicle, or any other vehicle, the primary purpose ofwhich is recreational, sporting, or
commercial use, shall be parked or stored in, on, or about any Lot or street within the Community
Area, except within the attached garage or unless such vehicles are concealed from view and the
screening of such vehicles has been approved by the Design Review Committee. For the purposes
of this covenant, any 3/4-ton or smaller vehicle, commonly known as a pickup truck, shall not be
deemed a commercial vehicle or truck. The Association shall have the right to enter on Owner's Lot
to remove and store, at Owner's expense, vehicles in violation ofthis Section. Any such Owner shall
be entitled to five (5) days' written notice prior to such action by the Association. No snowmobile
or recreational vehicle powered by an internal combustion engine may be operated within the
Community Area except for purposes of ingress and egress and only across designated streets and
rights-of-way.

3.29     Fences. Fences along or adjacent to the boundary or lot line may be constructed, but
only pursuant to criteria established by the Design Review Committee. On any Lots where fences
are permitted, the fence may only be constructed upon the prior written approval of the Design
Review Committee and in conformance with standard design specifications previously approved by
the Design Review Committee.

3.30     Air Conditioning and Heating Equipment/Solar Collecting Devices. No heating, air
conditioning, air movement, solar collection (e.g., swamp coolers) or refrigeration equipment shall
be placed, allowed, or maintained anywhere other than on the ground; provided, however, that solar
units meeting all governmental guidelines for residential uses may be located on the roof if (a) such
solar unit is built into and made an integral part of the roof flashing or the structure of any house
constructed on such Lot, and (b) such solar unit is specifically approved by the Design Review
Committee in accordance with Article 4 below. The type, size, location and necessary screening for
any proposed solar collection device shall be submitted to the Design Review Committee in
accordance with its established procedures and the Design Review Committee shall have the
authority to approve, conditionally approve, or disapprove the proposed collection device in
accordance with the terms and provisions hereof. Notwithstanding the foregoing, in no event will
the terms and provisions ofthis Declaration be deemed to prohibit the use ofsolar collection devices
within the Community Area and in no event shall the Design Review Committee unreasonably
restrict the right to use solar collection devices by any Owner of a Lot within the Community Area.

3.31     Leases. Any Owner shall have the right to Lease his Lot under the following
conditions:

 

3.3 1.1 All Leases shall be in writing;

3.31.2 All Leases shall be for a Lot with a completed residence thereon;

3.31.3 All Leases shall provide that the terms of the Lease and lessee's occupancy
of the Lot shall be subject in all respects to the provisions of this Declaration, and the
Articles ofincorporation, the Bylaws, and the Rules and Regulations ofthe Association, and
that any failure by the lessee to comply with any ofthe aforesaid documents, in any respect,
shall be a default Wlder the Lease; and

3.31.4 Each Owner shall notify the Association immediately upon the leasing ofhis
Lot, and register with the Association both the name(s) of the tenant(s) and new mailing
information for notices to be sent from the Association directly to such Owner.

3.32     Lakes. No swimming or boating activities shall be conducted on any lakes or ponds
located within the Community Area. Fishing will be allowed in accordance with the provisions of
the Rules and Regulations.

3.33     Easements: Utilities. All streets, pedestrian ways and easements shown on the
Recorded Plat for any portion ofthe Community Area have been reserved for the purposes indicated
on such Plat. No Owner may erect any structure ofany type whatsoever in such easement areas, nor
mayan O",ner use the surtace of such easement areas for any private use, other than landscaping
which will not interfere with the use of said easement by the entities for whose benefit it has been
reserved. With respect to such easement areas, as well as any other easement areas described on a
Plat or within recorded easement documents, any and all bona fide public utility service companies,
including, but not limited to, Roaring Fork Water & Sanitation District, Public Service Company of
Colorado, Holy Cross Electric Association, Inc., KN Energy, and U.S. West CommWlications, shall
have the right of access, ingress, egress, and use of such easement areas for the installation and
maintenance of utility facilities. Except as to special street lighting or other aerial utility facilities
which may be required by the COWlty or may be required by the franchisee of any utility company,
no aerial facilities ofany type (except meters, risers, service pedestals and other surface installations
necessary to maintain or operate appropriate undergroWld facilities) shall be erected or installed
within the CommWlity Area, whether upon Lots, easements, streets, or rights-of-way of any type,
either by a utility company or any other person or entity, (including but not limited to any person
owning or acquiring any part ofthe Community Area) and all utility service facilities (including but
not limited to water, sewer, gas, electricity and telephone) shall be buried Wlderground, under
recreational easements, Common Areas, streets, or other utility easement areas for the purpose of
serving any structure located on any part of the Community Area.

3.34     Landscaping. Each Lot shall be fully landscaped within thirty (30) days of the date
on which a certificate of occupancy is obtained for the residence, subject to excusable delays as
determined by the Design Review Committee due to weather. The landscaping of each Lot shall be
primarily indigenous plant life from an established plant list as established by the Design Review
Committee. Home lawns shall be of an identical or very similar insect resistant blend of rough
grasses naturally occurring in the area and such grasses shall be subject to guidelines promulgated
by the Design Review Committee. No landscaping plan shall be implemented until approval ofthe
Design Review Committee has been obtained. Each Owner shall maintain the landscaping upon
such Owner's Lot in good condition. Home lawns and Common Areas shall be irrigated with surface
waters wherever practical. Each Owner shall diligently maintain, cultivate, husband, protect and
preserve the shrubs and trees upon his Lot, including, without limitation, the removal of dead
branches, dead brush and performance of other tasks calculated to remove or eliminate material
which constitutes or creates a fire hazard. Each Owner shall cooperate with the Association in its
brush clearing and fire protection husbandry program for reduction offire hazard on Common Areas.

3.35     Swimming Pools and Pool Equipment. No pool may be erected, constructed or
installed without the prior written consent of the Design Review Committee. Above-ground pools
are expressly prohibited. All pool service equipment shall be fenced and shall not be visible from
any residential street within the Community Area.

3.36     Outside Lighting. All exterior lighting installed or maintained on any dwelling unit
located on a Lot shall be placed so that the light source is not visible from the dwelling on any
neighboring Lot or any Common Area. The Design Review Committee may establish various
standards for exterior lighting including, without limitation, standards for hue and intensity.

3.37     Prohibition on Use of Pesticides. Use of Pesticides, herbicides, fertilizers and
fungicides shall be prohibited on that portion ofany Lot located within twenty (20') feet ofthe River.
The purpose oflimiting or prohibiting use ofpesticides, herbicides, fertilizers, or fungicides on such
portion of the Lots abutting the River shall be to minimize the possible contamination from runoff
of such chemicals into the River. Except as provided above, the use ofpesticides approved by the
Design Review Committee shall be allowed three (3) times annually for the control of weeds. In
addition to the foregoing, only natural organic based fertilizers shall be used on home lawns and
gardens. A maximum ofthree (3) applications shall be allowed annually.

3.38     Fire Protection. Construction ofall dwelling units or other Improvements upon Lots
within the Community Area, including any possible requirement to install a fire protection sprinkler
system within such dwelling unit or Improvement, shall be in accordance with all applicable codes,
including the Uniform Building Code and Uniform Fire Code.

3.39     Engineering and Soils Reports. Certain Lots may be subject to geologic and hydraulic
hazards. All Improvements shall require the submittal ofan engineering report addressing soils and
geology conditions, foundation design and drainage prepared by a registered professional engineer.
All Lot development, including Improvement construction, shall be conducted in accordance with
engineer's stipulations.

3.40     Irrigation Systems and Ditch Laterals. Declarant hereby discloses that certain
irrigation ditch laterals are currently located or may be constructed (a) within easement areas located
upon certain Lots; (b) upon Association Properties; or (c) in areas adjacent to certain Lots or
Association Properties ("Ditch Laterals"). Declarant further discloses that as of the date of this
Declaration and to the best of Declarant's knowledge, the ownership of any and all water rights
carried or to be carried in such Ditch Laterals is vested in the Declarant. In accordance with the
foregoing, in no event shall the Association or any Owner be entitled to the right ofuse ofthe Ditch
Laterals, or any water flowing through such Ditch Laterals, except pursuant to a written agreement
(license) between the Association and the Declarant. In no event shall any Owner be entitled to
install irrigation systems which divert water from the Ditch Laterals or make any modifications to
the Ditch Laterals without the prior written approval ofthe Declarant. In addition, in no event shall
any Owner obstruct or impede the flow of water through any Ditch Lateral. Except as otherwise
provided herein, no permanent or temporary Improvements (including, without limitation,
landscaping and fencing) shall be constructed by an Owner within or upon any Ditch Lateral or
drainage or irrigation easement located within, or adjacent to, the Community Area. In the eventthat
an Owner desires to construct any Improvement within or upon any such Ditch Lateral or drainage
or irrigation easement, such Owner shall submit the plans for such Improvements to the Design
Review Committee in accordance with the terms and provisions of Article 4 hereof and to the
Declarant for approval, which approval can be withheld for any reason. In the event the Design
Review Committee and the Declarant approve the plans for the proposed Improvements in
accordance with the provisions of Article 4 hereof, the Owner of such Lot may construct such
Improvements in accordance with the plans approved by the Design Review Committee. IN
ACCORDANCE WITH THE FOREGOING, AND NOTWITHSTANDING ANYTHING IN THIS
DECLARATION TO THE CONTRARY, IN NO EVENT SHALL THE ASSOCIATION OR THE
DECLARANT BE OBLIGATED FOR ANY LOSS, DAMAGE, COST OR EXPENSE INCURRED
BY ANY OWNER FOR DAMAGE OR DESTRUCTION TO ANY IMPROVEMENT LOCATED
WITHIN OR UPON ANY DITCH LATERAL OR ANY DRAINAGE OR IRRIGATION
EASEMENT AND THE CONSTRUCTION OF ANY IMPROVEMENT WITHIN SUCH AREAS
SHALL BE AT THE RISK OF SUCH OWNER. In the event that an Owner desires to construct any
Improvement within or upon any Ditch Lateral or any drainage or irrigation easement, Declarant and

the Association hereby disclaim any obligation or potential liability regarding the maintenance,
operation and repair ofthe Ditch Laterals. All Owners hereby assume any risk involved with respect
to Ditch Laterals and hereby acknowledge that neither the Association nor the Declarant shall have
any responsibility or liability ofany kind to any Owner who incurs any loss, damage, cost or expense
arising from or related to such Ditch Laterals, including, but not limited to, any loss or damage
caused by flooding. In accordance with the foregoing, such Owners, on behalf of themselves and
their successors and assigns, by acceptance of a deed, acknowledge their assent to the provisions
hereof, and hereby release Declarant and the Association, and each of their officers, directors,
partners, agents, employees, stockholders and contractors, from and against any and all obligations,
claims, demands, liabilities, costs, expenses, attorneys' fees, or causes of action of any kind
whatsoever, whether arising prior or subsequent to the date hereof, whether known or unknown,
based upon, arising out of, or in any manner related to, the Ditch Laterals.

3.41     Antenna and Satellite Dishes. If an Owner wishes to install an antenna to receive
video programming, the Owner shall notify the Design Review Committee in writing ofthe planned
installation and the proposed location thereof at least thirty (30) days prior to the installation. The
antenna installation and location shall comply with all fire, electrical and other applicable safety
codes, and the installing Owner shall, to the extent feasible, install the antenna in a location that
minimizes its visibility from neighboring Lots and Common Areas. The installing Owner shall be
obligated to paint the antenna so that it blends into the background against which it is mounted and
to plant and maintain such reasonable landscaping as will screen the antenna from neighboring Lots
and Common Areas. Provided always, that in the event that in any particular situation any of the
foregoing requirements or restrictions cause an unreasonable delay or cost in the installation,
maintenance or use of the antenna, or prevent the reception of acceptable quality signals, said
requirements or restrictions shall be invalid as they apply to that particular situation. Satellite dishes
that exceed one meter in diameter, and MDS antennas that exceed one meter in diameter or diagonal
measurement, shall not be allowed within the Community Area. Mast antennas that extend higher
than 12 feet above the roofline and antennas that are not used to receive video programming shall
only be permitted within the Community Area ifthey receive the prior written approval ofthe Design
Review Committee as to design, location and screening from neighboring Lots and Common Areas.

 

ARTICLE 4
ARCHITECTURAL APPROVAL

4.1     Approval ofImprovements Reguired. The approval ofthe Design Review Committee
shall be required for any Improvement to Property on any Lot, except (a) for any Improvement to
Property made by Declarant; (b) where approval is not reasonably required to carry out the purposes
of this Declaration as determined by the Design Review Committee; or (c) where prior approval of
Improvements to Property may be waived or certain Improvements to Property may be exempted in
writing or under written guidelines or rules promulgated by the Design Review Committee.

4.2     Improvement to Properly Defined. "Improvement to Property" requiring approval of
the Design Review Committee shall mean and include, without limitation, any of the following
occurring within the Community Area: (a) the construction, installation, erection, or expansion of
any building, structure, or other Improvement, including utility facilities and fences; (b) the
demolition, destruction or removal, by voluntary action, ofany building, structure, tree, vegetation
or other Improvement; (c) the grading, excavation, filling, or similar disturbance to the surface of
the land including, without limitation, change ofgrade, change ofground level, change ofdrainage
pattern, or change of stream bed; and (d) any change or alteration of any previously approved
Improvement to Property, including any change ofexterior appearance, color, or texture occurring.

4.3     Membership ofCommittee. The Design Review Committee shall consist ofthree (3)
members, all ofwhom shall be initially appointed by Declarant. Declarant shall have the continuing
right to appoint all three (3) members during the Appointment Period (as hereinafter defined).
During the period of development of the Community Area while Declarant has rights to appoint
members of the Design Review Committee, Declarant shall give the Association written notice of
the appointment or removal ofany member of the Design Review Committee. The "Appointment
Period" shall mean the period oftime commencing as ofthe date ofRecordation ofthis Declaration
and continuing until the earliest to occur of the following events: (a) when all Lots which may be
created within the Community Area have been conveyed to Persons other than Declarant and
certificates of occupancy have been issued for the residences constructed thereon; or (b) when, in
its discretion, Declarant voluntarily relinquishes such right. Members of the Design Review
Committee may but shall not necessarily be Members of the Association. After expiration of the
Appointment Period, members ofthe Design Review Committee shall be appointed by the Board
of Directors. Members ofthe Design Review Committee appointed by the Board of Directors may
be removed at any time by the Board, and shall serve for such term as may be designated by the
Board or until resignation or removal by the Board. After the expiration ofthe Appointment Period,
the Association may at any time and from time to time change the authorized number of members
of the Design Review Committee.

4.4     Establishment ofSubcommittees. The Design Review Committee shall have the right
to establish subcommittees ("Covenant Committees") to review the modifications to Improvements
upon Lots after the initial construction thereofhas been completed and a certificate ofoccupancy has
been issued thereon, and for enforcement ofcompliance with this Declaration and any Supplemental
Declaration applicable to a Lot. For purposes of this Declaration, all references to the Design
Review Committee shall also refer to any Covenant Committee. The procedures for establishment,
the rights and duties thereof, and the limitations thereon shall be established and adopted by the
Design Review Conunittee.

4.5     Address of Design Review Committee. The address of the Design Review
Committee shall be at the principal office of the Association.

4.6     Submission of Plans. Prior to submission of building plans to the County for a
building permit when applicable and prior to commencement of work to accomplish any proposed
Improvement to Property, the Person proposing to make such Improvement to Property ("Applicant")
shall submit to the Design Review Committee at its offices such descriptions, surveys, plot plans,
drainage plans, elevation drawings, construction plans, specifications, and samples ofmaterials and
colors as the Design Review Committee shall reasonably request showing the nature, kind, shape,
height, width, color, materials, and location of the proposed Improvement to property. The
Applicant shall be entitled to receive a receipt for the same from the Design Review Committee or
its authorized agent. The Design Review Committee may require submission of additional plans,
specifications, or other information prior to approving or disapproving the proposed Improvement
to Property. Until receipt by the Design Review Committee ofall required materials in connection
with the proposed Improvement to Property, the Design Review Committee may postpone review
ofany materials submitted for approval.

4.7     Criteria for Approval. The Design Review Committee shall approve any proposed
Improvement to Property only if it deems in its reasonable discretion that the Improvement to
Property in the location indicated will not be detrimental to the appearance ofthe surrounding areas
ofthe Community Area as a whole; that the appearance of the proposed Improvement to Property
will be in harmony with the surrounding areas of the Community Area; that the Improvement to
Property will not detract from the beauty, wholesomeness, and attractiveness ofthe Community Area
or the enjoyment thereofby Owners; that the upkeep and maintenance ofthe proposed Improvement
to Property will not become a burden on the Association; and that the proposed Improvement to
Property does not affect the drainage plan for the Community Area or any portion thereof. The
Design Review Committee may condition its approval of any proposed Improvement to Property
upon the making ofsuch changes therein as the Design Review Committee may deem appropriate.

 

4.5     Design Guidelines. The Design Review Committee may issue standards or rules
("Design Guidelines") relating to the procedures, materials to be submitted, fees, and additional
factors which will be taken into consideration in connection with the approval of any proposed
Improvement to Property. The Design Guidelines may specify circumstances under which the strict
application oflimitations or restrictions under this Declaration (which are not substantial or material
in nature) will be waived or deemed waived in whole or in part because of a change in applicable
laws or because strict application ofsuch limitations or restrictions would be unreasonable or unduly
harsh under the circumstances. The Design Guidelines may waive the requirement for approval of
certain Improvements to Property or exempt certain Improvements to Property from the requirement
for approval, ifsuch approval is not reasonably required to carry out the purposes ofthis Declaration
and such Improvements are not substantial in nature.

4.9     Design Review Fee. The Design Review Committee may, in the Design Guidelines,
provide for the payment of a fee to accompany each request for approval of any proposed
Improvement to Property. The Design Review Committee may provide that the amount ofsuch fee
shall be unifonn for similar types of any proposed Improvement to Property or that the fee shall be
detennined in any other reasonable manner, such as based upon the estimated cost ofthe proposed
Improvement to Property. The Design Committee may further provide that the amount ofany such
design review fee include engineering consultant and other fees reasonably incurred by the
Association in reviewing any proposed Improvement to Property.

4.10     Decision of Committee. Any decision of the Design Review Committee shall be
made within thirty (30) days after receipt by the Design Review Committee ofall materials required
by the Design Review Committee, unless such time period is extended by mutual agreement. The
decision shall be in writing and ifthe decision is not to approve a proposed Improvement to Property,
the reasons therefor shall be stated. The decision ofthe Design Review Committee shall be promptly
transmitted to the Applicant at the address furnished by the Applicant to the Design Review
Committee.

4.11     Failure of Committee to Act on Plans. Any request for approval of a proposed
Improvement to Property shall be deemed approved, unless disapproval or a request for additional
information or materials is transmitted to the Applicant by the Design Review Committee within
thirty (30) days after the date of receipt by the Design Review Committee of all required materials.

4.12     Completion of Work After Approval. Following the approval of any proposed
Improvement by the Design Review Committee, the proposed Improvement shall be completed by
such Owner: (a) as promptly and diligently as possible but in no event in excess ofthe time periods
set forth below; (b) in substantial conformance with all plans and specifications and other materials
presented to the Design Review Committee; and (cl in accordance with any and all conditions
imposed by the Design Review Committee. In accordance with the foregoing, all Improvements
approved by the Design Review Committee shall be completed (a) within eighteen (IS) months from
the date of approval of such Improvements by the Design Review Committee; provided, however,
that any and all landscaping and/or gardening approved by the Design Review Committee which is
related to the construction ofthe initial dwelling unit for a Lot shall be completed within thirty (30)
days ofthe issuance ofthe certificate ofoccupancy for such dwelling unit or within such time period
as the Design Review Committee may otherwise prescribe. In all cases, the Design Review
Committee must issue a "Notice of Satisfactory Completion of Improvement to Property" or as
"Conditional Notice ofSatisfactory CompletionofImprovement to Property" priorto the application
for an issuance ofa certificate ofoccupancy from the County. Failure to comply with the terms and
conditions of this provision shall constitute noncompliance with the terms and provisions of this
Declaration and the Association shall have the right to invoke all rights and remedies provided to
the Association hereunder, including but not limited to, the imposition of fmes and penalties in
accordance with Paragraph 8.17 hereof.

4.13     Notice of Completion. Upon completion of the Improvement to Property, the
Applicant shall give written Notice ofCompletion to the Design Review Committee. Until the date
ofreceipt ofsuch Notice ofCompletion, the Design Review Committee shall not be deemed to have
notice of completion of such Improvement to Property.

4.14    Inspection of Work. The Design Review Committee or its duly authorized
representative shall have the right to inspect any Improvement to Property prior to or after
completion, provided that the right ofinspection shall terminate fourteen (14) days after the Design
Review Committee shall have received a Notice ofCompletion from Applicant.

4.15     Notice ofSatisfactorv Completion ofImprovement to Property. After inspection of
the Improvement to Property, the Design Review Committee will issue a Notice of Satisfactory
Completion ofImprovement to Property ifthe Improvements were completed in conformity with the
plan, description, and materials furnished to and approved by the Design Review Committee, and
any conditions imposed by the Design Review Committee. Upon such receipt of Notice of
Satisfactory Completion of Improvement to Property, the Applicant may proceed to request a
certificate of occupancy from the County.

4.16     Notice of Noncompliance. If, as a result of inspections or otherwise, the Design
Review Committee finds that any Improvement to Property has been done without obtaining the
approval of the Design Review Committee or was not done in complete conformity with the
description and materials furnished to, and any conditions imposed by, the Design Review
Committee or was not completed within eighteen (18) months after the date of approval by the
Design Review Committee or such shorter period as specified herein or in writing by the Design
Review Committee, the Design Review Committee shall notifY the Applicant in writing of the
noncompliance, which notice shall be given, in any event, within fourteen (14) days after the Design
Review Committee receives a Notice of Completion from the Applicant. The notice shall specifY
the particulars of the noncompliance and shall require the applicant to take such action as may be
necessary to remedy the noncompliance. Ifa Notice of Noncompliance has been issued by the
Design Review Committee, the Applicant may post a Performance Guaranty, as hereinafter defined,
sufficient to bring the Improvement to Property into compliance with the Design Review Committee;
provided however, that the Design Review Committee shall not be required to accept such
Performance Guaranty. Such Performance Guaranty must be in an amount sufficient to remedy any
noncompliance, as determined by the Design Review Committee in its sole and absolute discretion.
After posting such Perfonnance Guaranty with the Association, the Design Review Committee may
then issue a Conditional Notice of Satisfactory Completion of Improvement to Property. Such
Conditional Notice shall grant authorization for the Applicant to request a certificate of occupancy
from the County.

4.17     Perfonnance Guaranty for Noncompliance or Incompletion. Ifthe Applicant wishes
to apply for and obtain a certificate ofoccupancy from the County prior to completion oflandscaping
and/or prior to correction ofa minor noncompliance, the Applicant may request to post a bond, letter
of credit or cash escrow in an amount equal to the estimated cost of completing such work
("Performance Guaranty"); provided however the Design Review Committee shall not be required
to accept such Perfonnance Guarantee. The Perfonnance Guaranty shall be used by the Association
to ensure completion of such work in accordance with the time periods for completion established
hereunder and the plans for such work as approved by the Design Review Committee. The fonn,
content and tenns of the Perfonnance Guaranty shall be detennined by the Design Review
Committee in its sole and absolute discretion. If the Design Review Committee accepts the
Perfonnance Guaranty for the completion oflandscaping and/or remedy ofnon compliance, then the
Design Review Committee shall issue a Conditional Notice of Satisfactory Completion to
Improvement to Property. Such Conditional Notice shall grant authorization for Applicantto request
a certificate of occupancy from the County. All premiums, costs and expenses related thereto shall
be the obligation of the Owner. Any surety or financial institution issuing a payment and
perfonnance bond or letter of credit hereunder shall be authorized to do business in Colorado and
shall be acceptable to the Design Review Committee. Ifany Owner fails to complete the landscaping
work or fails to remedy the noncompliance, in accordance with the provisions of the Declaration,
subject to delays beyond the reasonable control of such Owner, the Association is authorized under
the provisions of the Declaration to enter upon the Lot of such Owner to complete the landscaping
work and or remedy the noncompliance in accordance with the plans therefore, draw upon the
Perfonnance guaranty for all costs incurred by the Association relating to the completion of the
landscaping work or relatingto the remedy ofnoncompliance and levy a Reimbursement Assessment
against such Owner for all costs and expenses incurred by the Association in completing such
landscape work or in remedying such noncompliance which are not otherwise covered by the
Performance Guaranty, including any costs and expenses of collection and attorney's fees. Upon
satisfactory completion of landscaping and/or remedy of noncompliance, the Applicant shall give
written Notice of Completion to the Design Review Committee as outlined in Article 4.13 herein.
If the Design Review Committee tinds the improvements satisfactory, a Notice of Satisfactory
Completion of Improvements to Property shall be issued by the Design Review Committee within
fourteen (14) days ofreceipt of Notice of Completion and any funds being held by the Association
as a Perfonnance Guarantee shall be released to Applicant within seven (7) days of the issuance of
the Notice of Satisfactory Completion of Improvements to Property.

4.18     Failure of Committee to Act After Completion. If, for any reason other than the
Applicant's act or neglect, the Design Review Committee fails to notify the Applicant of any
noncompliance within fourteen (14) days after receipt by the Design Review Committee of'written
Notice of Completion from the Applicant, the Improvement to Property shall be deemed in
compliance if the Improvement to Property was, in fact, completed as of the date of Notice of
Completion and the Applicant may proceed to request a certificate of occupancy from the County.

4.19     Appeal to Board of Directors of Finding of Noncompliance. If the Design Review
Committee gives any notice of noncompliance, the Applicant may appeal to the Board of Directors
by giving written notice ofsuch appeal to the Board and the Design Review Committee within thirty
(30) days after receipt of the notice of noncompliance by the Applicant. If, after a notice of
noncompliance, the Applicant fails to commence diligently to remedy such noncompliance, the
Design Review Committee shall request a finding of noncompliance by the Board of Directors by
giving written notice ofsuch request to the Association and the Applicant within sixty (60) days after
delivery to the Applicant of a notice of noncompliance from the Design Review Committee. In
either event, the Board of Directors shall hear the matter in accordance with the provisions of the
Bylaws for Notice and Hearing, and the Board shall decide whether or not there has been such
noncompliance and, if so, the nature thereof and the estimated cost of correcting or removing the
same.

4.20     Correction of Noncompliance. If the Board of Directors determines that a
noncompliance exists, the Applicant shall remedy or remove the same within a period of not more
than forty-five (45) days from the date of receipt by the Applicant of the ruling of the Board of
Directors. Ifthe Applicant does not comply with the Board ruling within such period, the Board
may, at its option, record a Notice of Noncompliance against the real property on which the
noncompliance exists, may enter upon such property and remove the noncomplying Improvement
to Property, or may otherwise remedy the noncompliance, and the Applicant shall reimburse the
Association, upon demand, for all expenses incurred therewith. If such expenses are not promptly
repaid by tlle Applicant or Owner to the Association, ilie Board may levy a Reimbursement
Assessment against the Owner ofthe Lot for such costs and expenses. The right ofthe Association
to remedy or remove any noncompliance shall be in addition to all other rights and remedies which
the Association may have at law, in equity, or under this Declaration. The Applicant and Owner of
the Lot shall have no claim for damages or otherwise on account ofthe entry upon the Property and
removal of the noncomplying Improvement to Property.

4.21     No Implied Waiver or Estoppel. No action or failure to act by the Design Review
Committee or by the Board of Directors shall constitute a waiver or estoppel with respect to future
action by the Design Review Committee or the Board ofDirectors with respect to any Improvement
to Property. Specifically, the approval of the Design Review Committee of any Improvement to
Property shall not be deemed a waiver of any right or an estoppel to withhold approval or consent
for any similar Improvement to Property or any similar proposals, plans, specifications, or other
materials submitted with respect to any other Improvement to Property.

4.22     Committee Power to Grant Variances. The Design Review Committee may authorize
variances from compliance with any ofthe provisions ofthis Declaration, including restrictions upon
height, size, floor area, or placement of structures or similar restrictions, when circumstances such
as topography, natural obstructions, hardship, aesthetic or environmental consideration may require.
Such variances must be evidenced in writing and shall become effective when signed by a least a
majority of the members of the Design Review Committee. If any such variance is granted. no
violation ofthe provisions ofthis Declaration shall be deemed to have occurred with respect to the
matter for which the variance was granted; provided, however, that the granting of a variance shall
not operate to waive any of the provisions of this Declaration for any purpose except as to the
particular property and particular provision hereof covered by the variance, nor shall the granting of
a variance affect in any way the Owner's obligation to comply with all governmental laws and
regulations affecting the property concerned, including, but not limited to, zoning ordinances and
setback lines or requirements imposed by any governmental authority having jurisdiction.

4.23     Meetings ofCommittee. The Design Review Committee shall meet from time to time
as necessary to perform its duties hereunder. The Design Review Committee may from time to time,
by resolution in writing adopted by a majority of the members, designate a representative (the
"Committee Representative") (who may but need not be one of its members) to take any action or
perform any duties for or on behalf of the Design Review Committee, except the granting of
approval to any Improvement to Property and granting of variances. The action ofsuch Committee
Representative within the authority ofsuch Committee Representative or the written consent or the
vote of a majority of the members of the Design Review Committee shall constitute action of the
Design Review Committee.

4.24     Records of Actions. The Design Review Committee shall report in writing to the
Board of Directors all final actions of the Design Review Committee, and the Board shall keep a
permanent record of such reported action.

4.25     Estoppel Certificates. The Board ofDirectors shall, upon the reasonable request of
any interested Person and after confirming any necessary facts with the Design Review Committee,
furnish a certificate with respect to the approval or disapproval of any Improvement to Property or
with respect to whether any Improvement to Property was made in compliance herewith. Any
Person, without actual notice to the contrary, shall be entitled to rely on said certificate with respect
to all matters set forth therein.

4.26     Nonliabilitv ofCommittee Action. There shall be no liability imposed on the Design
Review Committee, any member ofthe Design Review Committee, any Committee Representative,
the Association, any member ofthe Board ofDirectors, or Declarant for any loss, damage, or injury
arising out of or in any way connected with the performance of the duties of the Design Review
Committee unless due to the willful misconduct of the party to be held liable. In reviewing any
matter, the Design Review Committee shall not be responsible for reviewing, nor shall its approval
of an Improvement to Property be deemed approval of the Improvement to Property from the
standpoint of safety, whether stmctural or otherwise, or conformance with building codes or other
governmental laws or regulations. In accordance with the foregoing, any Owner seeking the
approval of the Design Review Committee for any matter shall provide the Design Review
Committee with a written waiver reaffirming the foregoing and releasing the Design Review
Committee, any Member of the Design Review Committee, any Committee Representative, the
Association, any member of the Board of Directors and the Declarant from any and all liability
arising from or related to the Design Review Committee's approval of such Improvement.

 

4.27     Construction Period Exception. During the course of actual construction of any
pennitted structure or Improvement to Property, and provided construction is proceeding with due
diligence, the Design Review Committee shall temporarily suspend the provisions contained in this
Declaration as to the Property upon which the construction is taking place to the extent necessary
to permit such construction, provided that, during the course of any such construction, nothing is
done which will result in a violation of any of the provisions of this Declaration upon completion
of construction and nothing is done which will constitute a nuisance or unreasonable interference
with the use and enjoyment ofother property. The DesignReviewCornmittee shall promulgate rules
and regulations concerning the use of temporary sanitary facilities and trash dumpsters, type of
construction vehicles allowed on and use ofthe streets, roads, and rights-of-way located within the
Community Area and Association Properties, and other activities associated with the construction
of Improvements to Property, provided said rules and regulations shall not interfere with the rights
existing under the Pennitted Exceptions.

 


ARTICLE 5
ASSOCIATlON PROPERTIES

5.1     Member's Rights ofUse and Enjoyment Generally. Unless otherwise provided in this
Declaration, all Members, their immediate family, dependents, and their guests may use the
Association Properties, subject to the provisions of the Rules and Regulations.

5.2     Right of Association to Regulate Use. The Association, acting through the Board,
shall have the power to regulate use of Association Properties to further enhance the overall rights
of use and enjoyment of all Members through the promulgation of the Rules and Regulations.

5.3     No Partition ofAssociation Properties. No Owner shall have the right to partition or
seek partition of the Association Properties or any part thereof.

5.4     Liability of Owners for Damage. Each Owner shall be liable to the Association for
any damage to Association Properties or for any expense or liability incurred by the Association
which may be sustained by reason of the negligence or willful misconduct of such Owner or any
Person using the Association Properties through such Owner and for any violation by such Owner
or any such Person ofthis Declaration or any Rule and Regulation adopted by the Association. Each
Owner shall indemnify and hold the Association harmless from any and all loss, damage, expense,
or liability arising from any negligence or willful misconduct of any Owner or Persons using the
Association Properties through such Owner. The Association shall have the power, as elsewhere
provided in this Declaration, to levy and collect a Reimbursement Assessment against a member,
after Notice and Hearing, to cover the costs and expenses incurred by the Association on account of
any such damage or any such violation of this Declaration or of such Rules and Regulations or for
any increase in insurance premiums directly attributable to any such damage or any such violation.
5.S Association Duties ifDamage, Destruction, or Required Improvements. In the event
of damage to Association Properties by fire or other casualty or in the event any governmental
authority shall require any repair, reconstruction, or replacement ofany Association Properties, the
Association shall have the duty to repair, reconstruct, or replace the same, to the extent funds are
available to do so. Any insurance proceeds payable by reason of damage or destruction of
Association Properties by fire or other casualty shall be paid to the Association and shall be used,
to the extent necessary, to pay the costs of repair, reconstruction, or replacement. If funds from
insurance proceeds or from reserve for replacement are insufficient to pay all costs of repair,
reconstruction, or replacement of improvements damaged or destroyed, or if the Association is
required to make repairs, replacements, or improvements by governmental authorities, the
Association may, in order to make up any deficiency in the insurance proceeds or to pay for the
reqnired repair, replacement, or improvement, levy a Special Assessment in accordance with Section
9.18, or if a Member or group of Members is liable for such damage, levy a Reimbursement
Assessment against the Member or group ofMembers responsible therefor, to provide the additional
funds necessary. Repair, reconstruction, or replacement of Association Properties shall be done
under such contracting and bidding procedures as the Association shall determine are appropriate.
If insurance proceeds available to the Association on account ofdamage or destruction exceed the
cost of repair, reconstruction, and replacement, the Association may use the same for future
maintenance, repair, improvement, and operation of other Association Properties or any other use
deemed appropriate by the Board.

5.6     Association Powers in the Event of Condemnation. Ifany Association Properties or
interests therein are taken under exercise of the power ofeminent domain or by private purchase in
lieu thereof, the award in condemnation or the price payable shall be paid to the Association, except
to the extent payable to any other Person with an interest in snch property, including any Mortgagee
ofsuch property. The Association shall have the exclusive right to participate in such condemnation
proceedings and to represent the interests of all Owners or other Persons therein. Any award or
funds received by the Association shall be held by the Association in the Maintenance Fund as
determined by the Board, as a reserve for future maintenance, repair, reconstruction, or replacement
of Association Properties or may be used for Improvements or additions to or operation of
Association Properties or such other uses deemed appropriate by the Board. Except as may
otherwise be provided by the Act, no Owner shall be entitled to participate as a party or otherwise
in any condemnation proceedings nor to receive any proceeds therefrom.

5.7     Title to Association Properties on Dissolntion of Association. In the event of
dissolntion of the Association, the Association Properties shall, to the extent permitted by law and
reasonably possible, be conveyed or transferred to an appropriate public, governmental or quasigovernmental
agency or organization or to a nonprofit corporation, association, trust, or other
organization, to be used, in any such event, for the common benefit ofOwners for similar purposes
for which the particular Association Property was held by the Association. To the extent the
foregoing is not possible, the Association Properties shall be sold or disposed of and the proceeds
from the sale or disposition shall be distributed to the Owners. The portion of such proceeds to be
allocated to each Lot shall be the product derived by multiplying the total proceeds from snch sale
or disposition by a fraction, the numerator of which shall be one (I) and the denominator of which
shall be the number ofLots located in the Community Area at the time ofsuch sale or distribution.
For the purpose ofthis Section 5.7, should any Lots be combined pursuant to Section 3.21 hereof,
each Lot so combined shall be counted separately in apportioning such proceeds.

 

ARTICLE 6
DECLARANT'S RIGHTS AND RESERVATIONS

6. I     Period of Declarant's Rights and Reservations. Declarant shall have, retain and
reserve certain rights as hereinafter set forth with respect to the Association and the Association
Properties from the date hereof, until (a) the time that the last Lot which may be created within the
Community Area has been sold and conveyed by Declarant to persons other than Declarant and a
certificate ofoccupancy has been issued for the residence constructed thereon, or (b) the date which
is thirty (30) years from Recordation of this Declaration, whichever event occurs first. The rights
and reservations hereinafter set forth shall be deemed excepted and reserved in each conveyance of
property by Declarant to the Association whether or not specifically stated therein and in each deed
or other instrument by which any property within the Community Area is conveyed by Declarant.
The rights, reservations, and easements hereinafter set forth shall be prior and superior to any other
provisions of this Declaration and may not, without Declarant's prior written consent, be modified,
amended, rescinded, or affected by any amendment ofthis Declaration. Declarant's consent to any
one such amendment shall not be construed as consent to any other subsequent amendment.

6.2     Right to Construct Additional Improvements on Association Properties. Declarant
shall have and hereby reserves the right, but not be obligated to, construct additional Improvements
on Association Properties at any time and from time to time in accordance with this Declaration for
the improvement and enhancement thereof and for the benefit of the Association and Owners.
Declarant shall conveyor transfer such Improvements to the Association and the Association shall
be obligated to accept title to, care for, and maintain the sanle as Association Properties as elsewhere
provided in this Declaration.

6.3     Declarant's Rights to Use Association Properties in Promotion and Marketing of
Community Area.
Declarant shall have and hereby reserves the right to reasonable use of the
Association Properties and of services offered by the Association in connection with the promotion
and marketing ofthe Community Area. Without limiting the generality ofthe foregoing, Declarant
may (a) erect and maintain on any part ofthe Association Properties such signs, temporary buildings,
and other structures as Declarant may reasonably deem necessary or proper in connection with the
promotion, development, and marketing of real property within the Community Area; (b) use
vehicles and equipment on Association Properties for promotional purposes; (c) permit prospective
purchasers of property within the boundaries of the Community Area who are not Owners or
Members of the Association to use Association Properties at reasonable times and in reasonable
numbers; (d) refer to the Association Properties and to the Association and services offered by the
Association in connection with the development, promotion, and marketing of property within the
boundaries of the Community Area; and (e) to maintain sales offices, management offices and
models within the Community Area upon Lots owned by Declarant in such sizes and at such
locations as determined by Declarant in its sole and absolute discretion.

6.4     Declarant's Rights to Complete Development of Community Area. No provision of
this Declaration shall be construed to prevent or limit Declarant's rights to complete development of
property within the boundaries ofthe Community Area; to construct or alter Improvements on any
property owned by Declarant within the Community Area, including temporary buildings; to
maintain model homes, temporary buildings, construction trailers, or offices for construction or sales
purposes, or similar facilities on any property owned by Declarant or owned by the Association
within the Community Area; or to post signs incidental to development, construction, promotion,
marketing, or sales of property within the boundaries of the Community Area. Nothing contained
in this Declaration shall limit the right of Declarant or require Declarant to obtain approvals (a) to
excavate, cut, fill or grade any property owned by Declarant or to construct, alter, demolish, or
replace any Improvements on any property owned by Declarant; (b) to use any structure on any
property owned by Declarant as a construction, model, home or real estate sales office in connection
with the sale of any property within the boundaries of the Community Area; or (c) of the Design
Review Committee or of the Association for any such activity or Improvement to Property on any
property owned by Declarant.

6.5     Declarant's Approval ofConveyances or Changes in Use of Association Properties.
Until such time as Declarant has lost the right to appoint members ofthe Design Review Committee
as provided in Section 4.3 hereof, the Association shall not, without first obtaining the prior written
consent of Declarant, convey, change, or alter the use of Association Properties, Mortgage the
Association Properties, or use Association Properties other than solely for the benefit of Members
or as otherwise specifically allowed hereunder.

6.6     Declarant's Rights to Grant and Create Easements. Declarant shall have and hereby
reserves the right to grant (a) the Conservation Easement; (b) the Kennedy Easement and access to
and egress from the properties benefitted thereby; and (c) the Tomcat Easement and access to and
egress from the properties benefitted thereby. Declarant shall further have and hereby reserves the
right to grant or create temporary or permanent easements or to relocate existing easements for (d)
access to and egress from or through the Community Area; (e) access to and egress from the
Conservation Area in accordance with the Conservation Easement; (f) utilities, including, but not
limited to, water, sewer and electrical lines; (g) drainage, including, but not limited to, drainage and
ditch lateral easements; (h) access across private roads located within the Community Area to the
Annexable Property; and (i) other purposes incident to the development and sale of the Community
Area (collectively the "Easements"). Such Easements may be located by Declarant in, on, under,
over, and across Lots within the Community Area so long as such easements do not lie within any
Building Envelope. Declarant shall further have the right to grant to public or quasi-public entities
the right to construct certain storage or other similar facilities on the Common Areas in connection
with the provision of utilities or other services to the Community Area. Any such facilities so
located, and all distribution lines located in any easements created pursuant to the provisions hereof,
or otherwise, shall, in all events belong to the provider of such services.

6.7     Declarant's Rights to Convey Additional Property to Association. Declarant shall
have and hereby reserve the right, but not the obligation to, convey additional real property and
Improvements thereon to the Association at any time and from time to time in accordance within this
Declaration.

 

6.8     Annexation of Additional Properties.

6.8.1 Right to Annex Additional Property. Declarant shall have and hereby reserves
the right, for a period ofthirty (30) years from the date of the Recording of this Declaration
to annex the Annexable Property to the CommWlity Area. In accordance with the foregoing,
each Owner ofa Lot hereWlder hereby grants to Declarant the right to annex the Annexable
Property to the Community Area, as more particularly set forth in this Paragraph 6.8.
Notwithstanding the foregoing, Declarant is authorized to convey portions ofthe Annexable
Property as it may acquire, prior to its annexation hereto, to such third party or parties as it
may deem appropriate, whether for purposes consistent with the Declaration or otherwise.
Declarant makes no assurances that all or any portion of the Annexable Property will be
added to this Declaration and Declarant reserves the right to annex all or any portion ofthe
Annexable Property to the ComrnWlity Area in any order it deems fit in its sole and absolute
discretion. Any such annexation shall not make or constitute any amendment or
modification to this Declaration except as may otherwise be provided herein. The
annexation of additional real property to the ComrnWlity Area shall be accomplished by the
filing for Record by Declarant with the Clerk and Recorder ofthe County, a Supplemental
Declaration containing a legal description of the land area to be added to the Community
Area, together with any Supplemental Plats applicable thereto. The Supplemental
Declaration shall incorporate the covenants, conditions and restrictions set forth herein and
contain such additional covenants, conditions and restrictions as may be applicable to the
property annexed thereby, including any special or particular uses thereof. In addition, the
Supplemental Declaration shall provide whether or not the lots located in the property
annexed thereby (the "Annexed Property") shall be subject to the jurisdiction of a
subassociation or shall not be subject to the jurisdiction ofa subassociation. The Annexation
ofthe Annexable Property may be accomplished by successive Supplemental Declarations,
in no particular or pre-established order, and may provide that the property annexed thereby
is to be phased so that it is to be made subject to this Declaration at different times. Any
such Supplemental Declaration may impose on the Annexed Property described therein
additional covenants, conditions, restrictions, limitations, reservations, exceptions, equitable
servitudes, limitations, reservations, exceptions, equitable servitudes, and other provisions
than those set forth in this Declaration, taking into account the Wlique and particular aspects
of the proposed development of the Annexed Property covered thereby. Furthermore, the
Declarant shall have the right to reserve in such Supplemental Declaration any such
development right which is necessary or appropriate to complete the development of the
Annexed Property or which is otherwise necessary to meet the unique and particular aspects
of the Annexed Property. A Supplemental Declaration may provide for a subassociation of
owners within the Annexed Property and for the right of the subassociation to assess such
owners. Upon recordation of a Supplemental Declaration, the Annexed Property shall be
subject to all ofthe covenants, conditions, restrictions, limitations, reservations, exceptions,
equitable servitudes, and other provisions set forth in this Declaration, except to the extent
specifically stated in the Supplemental Declaration, but in no event shall the covenants,
conditions and restrictions ofsuch Supplemental Declaration be less stringent than those set
forth herein.

 

6.8.2     Effect of Expansion. In the event any real property is annexed to the
Community Area as provided herein, the definitions used in this Declaration shall be
automatically expanded to encoinpass and refer to the Community Area as expanded; c.g.
"Community Area" shall mean the real property described herein plus any additional real
property annexed thereto; similarly, "Common Area" and "Lots" shall include those areas as
described herein as well as those so designated on any Supplemental Declaration or
Supplemental Plat relating to any real property which is annexed pursuant to this Paragraph
6.8. References to this Declaration shall mean this Declaration as so supplemented by a
Supplemental Declaration. Every Owner of a Lot in the area annexed to the Community
Area shall, by virtue of ownership of such Annexed Property and upon recordation of the
Supplemental Declaration annexing such property to the Community Area, be a Member of
the Association and shall be entitled to the same rights and privileges and subject to the same
duties and obligations as any other Association Member. The recording ofthe Supplemental
Declaration with the Clerk and Recorder ofthe County shall operate automatically to grant,
transfer, and convey to all Owners ofLots located within the Community Area, and Owners
ofLots within the Annexed Property thereto, their respective, appurtenant, undivided rights,
titles, interests, privileges, duties and obligations in and to both the existing Common Area
and any additional Common Area added to the existing Common Area by virtue of such
annexation, ifany. Annual Assessments for Lots within the area annexed to the Community
Area shall commence as of the date ofthe recording of the Supplemental Declaration and
shall be prorated as of such date. Upon recording ofthe Supplemental Declaration and any
other Supplemental Plat with the Clerk and Recorder ofthe County, the additional Lots and
Common Area shall be subject to the terms and provisions ofthis Declaration.

6.9     Annexation of Additional Unspecified Real Estate. Declarant hereby reserves the
right, for a period of thirty (30) years from the date of the recording of this Declaration, to annex
additional, unspecified real estate to the Community Area to the fullest extent permitted by the Act.
In the event that Declarant elects to annex such additional property, Declarant shall annex such
property to the community in accordance with the provisions of this Declaration entitled
"Annexation of Additional Properties".

6. 10     Withdrawal of Annexed Propertv. Annexed Property for which a Supplemental
Declaration has been recorded may be withdrawn from the Community Area and from this
Declaration by Declarant at any time prior to the time any Lot contained therein has been conveyed
to a third party. Such withdrawal may be accomplished by the execution, acknowledgment, and
recordation of a notice of withdrawal. The notice of withdrawal (a) shall be executed and
acknowledged by the Owner ofthe Annexed Property; (b) shall, ifthe Annexed Property is not then
owned by Declarant, contain the executed and acknowledged written consent of Declarant for so
long as Declarant owns any property in the Community Area and has the power to annex additional
property to the Community Area; (c) shall contain an adequate legal description of the Annexed
Property; (d) shall contain a reference to the Supplemental Declaration for the Annexed Property
which reference shall state the date thereof, the date ofrecordation thereof, and the book and page
of the records in the Office of the Clerk and Recorder of the County where the Supplemental
Declaration was Recorded; and (e) shall contain a statement and declaration that the Annexed
Property is withdrawall from the Community Area and shall not be thereafter subject to this
Declaration or the Supplemental Declaration for the Annexed Property. The withdrawal shall be
effective upon recording ofthe notice ofwithdrawal and, upon recording ofthe notice ofwithdrawal,
the Annexed Property described therein shall no longer be part of the Community Area or subject
to this Declaration or to the Supplemental Declaration for the Annexed Property.

6.11     Expansion or Contraction of Annexable Property. Subject to any limitations of the
Act, the Annexable Property may be expanded or contracted to add or delete real property effective
upon the recordation of a written instrument, executed by Declarant, describing such real property
and declaring that such real property shall thereafter be added to or deleted from the Annexable
Property.

6.12     Creation of Drainage Easements. Notwithstanding anything set forth herein to the
contrary, Declarant shall have the right to enter into such easements and rights-of-way which provide
for the use of the Association and Owners to certain drainage facilities that may be located outside
the Community Area. Such easements may contain the obligation of the Association to bear a
proportionate cost of constructing and maintaining any such facilities that are for the benefit ofthe
Association. The existence of such easements shall in no way be construed as creating any rights
of Owners to use or gain access to such ponds or lakes.

6.13     Conversion ofCommon Areas to Lots. Declarant shall have the right to convert any
Common Areas specifically identified on the Plat or any Supplemental Plat as convertible properties
into Lots owned by Declarant subject to the terms and provisions of any approvals by the County.

6.14     Subdivision of Lots. Declarant shall have and hereby reserves the right to resubdivide
the space within any Lot located within the Community Area to create additional Lots; provided,
however, that the maximum number ofLots within the Community Area shall not exceed thirty-eight
(38); provided that such subdivision is completed in compliance with County subdivision
requirements.

6.15     Expansion of Permitted Property Uses. Notwithstanding anything to the contrary
contained herein, Declarant reserves the right to expand the permitted uses for Lots provided in
Section 3.2 hereof provided that such uses are consistent with Declarant's overall development plan
for the Community Area and are in accordance with County rules, regulations, requirements and
approvals.

 


ARTICLE 7
ASSOCIA TION OPERATION

7.1     Association. The Association has been or will be formed as a Colorado nonprofit
corporation under the Colorado Revised Nonprofit Corporation Act prior to the date of the
conveyance of the first Lot. The Association shall have the duties, powers, and rights set forth in
the Act, the Colorado Revised Nonprofit Corporation Act, this Declaration and in its Articles of
Incorporation and Bylaws. As more specifIcally set forth hereinafter, the Association shall have a
Board of Directors to manage its affairs. Except as may be provided herein, the Articles of
Incorporation or the Bylaws, the Board of Directors shall be elected by O",ners acting in their
capacity as Members of the Association.

7.2     Association Board ofDirectors. The affairs ofthe Association shall be managed by
a Board of Directors. The number, term and qualifications of the Board of Directors shall be fixed
in the Articles of Incorporation and Bylaws. The Board of Directors may, by resolution, delegate
portions of its authority to officers of the Association, but such delegation of authority shall not
relieve the Board of Directors of the ultimate responsibility for management of the affairs of the
Association. Action by or on behalf of the Association may be taken by the Board of Directors or
any duly authorized executive committee, officer, agent, or employee without a vote of Members,
except as otherwise specificaJly provided in this Declaration.

7.3     Membership in Association. Each Owner ofa Lot within the Community Area shall
be a Member of the Association. There shall be one Membership in the Association for each Lot
within the Community Area. The Person or Persons who constitute the Owner of a Lot shall
automatically be the holder of the Membership appurtenant to that Lot, and the Membership
appurtenant thereto shall automatically pass with fee simple title to the Lot. Declarant shall hold a
Membership in the Association for each Lot owned by Declarant. Membership in the Association
shall not be assignable separate and apart from fee simple title to a Lot.

7.4     Voting Rights of Members. Each Member shall have the right to cast one vote for
each Lot owned by such Member in accordance with the Bylaws, provided in no event shall there
be more than one (1) vote per Lot. If title to a Lot is owned by more than one (1) Person, such
persons shall collectively vote their interest as a single vote.

7.5     Declarant Control. Notwithstanding anything contained herein to the contrary,
Declarant shall be entitled to select and appoint, in its sole discretion, Directors, in accordance with
the Bylaws (the "Declarant's Control Period"), until the expiration ofthe Declarant's Control Period
as defined below. Provided, however, the right ofthe Declarant to select and appoint Directors shall
be subject to the provisions of Section 5.5 of the By-Laws. The Declarant's Control Period shall
cease on the happening ofany ofthe following events, whichever occurs earlier: (a) sixty (60) days
after conveyance of seventy-five percent (75%) of the total number of Lots that may be created
within the Community Area have been conveyed to Persons other than Declarant; (b) two (2) years
after the last conveyance of a Lot by Declarant in the ordinary course of business; (c) two (2) years
after any right to add new Lots was last exercised by Declarant; or (d) when, in its discretion,
Declarant so determines.

7.6     Detennination of Member Voting Privileges. Notwithstanding anything to the
contrary contained herein, only Members whose voting rights are in good standing under the
Associations' Bylaws (e.g., voting rights which have not been suspended as provided therein) shall
be entitled to vote on Association matters. In accordance therewith, any and all provisions contained
herein requiring the approval of a requisite percentage of members of the Association shall be
deemed satisfied when the requisite percentage of members entitled to vote has been met.

 

7.7     Registration ofOwners. Each Owner shall register with the Association upon such
Owner's acquisition ofa Lot within the Community Area. Such registration shall be completed by
such owner at the time such Owner closes the purchase of a Lot within the Community Area and
shall be delivered to the Association within seven days ofthe date ofsuch closing. Such registration
shall be in a form prescribed by the Association and shall include: (1) a mailing address where
notices or demands intended to be served upon such Owner may be mailed by the Association; (2)
a designation ofa voting representative for such Let; and (3) an acknowledgment that such Owner
has: (a) received a copy ofthis Declaration and the Bylaws ofthe Association; (b) that such Owner
has read and understands the same; and (c) that such Owner is bound by the terms and provisions
of the Declaration and the Bylaws.

 


ARTICLE 8
DUTIES AND POWERS OF ASSOCIATION

 

8.1     General Duties and Powers of Association. The Association has been or will be
formed to further the common interests ofthe Members. The Association, acting through the Board
or Persons to whom the Board has delegated such powers, shall have the duties and powers
hereinafter set forth and, in general, the power to do anything that may be necessary or desirable to
further the common interests of the Members, to maintain, improve, and enhance the common
interests ofthe Members, to maintain, improve, and enhance Association Properties, and to improve
and enhance the attractiveness, aesthetics, and desirability of the Community Area.

8.2     Dutv to Accept Property and Facilities Transferred by Declarant. The Association
shall accept title to any real property, including any Improvements thereon and personal property
transferred to the Association by Declarant, and equipment related thereto, together with the
responsibility to perform any and all Administrative and Association Functions associated therewith,
provided that such property and functions are not inconsistent with the terms of this Declaration.
Property interests transferred to the Association by Declarant may include fee simple title,
easements, leasehold interests, and licenses to use. Any property or interest in property transferred
to the Association by Declarant shall be within the boundaries of the Community Area; provided,
however, that Declarant shall be entitled to transfer and convey the beneficial use of an easement,
subject to, any obligations thereunder, located outside of the Community Area but which benefits
the Association and the Owners. Any property or interest in property transferred to the Association
by Declarant shall, except to the extent otherwise specifically approved by resolution ofthe Board
of Directors, be transferred to the Association free and clear of all monetary obligations, liens and
encumbrances (other than the lien ofproperty ta'l:es and assessments not then due and payable), but
shall be subject to the terms ofthis Declaration, and easements, covenants, conditions, restrictions,
and equitable servitudes or other encumbrances ofrecord. Except as otherwise specifically approved
by resolution of the Board of Directors, no property or interest in property transferred to the
Association by Declarant shall impose upon the Association any obligation to make monetary
payments to Declarant or any affiliate ofDeclarant, including, but not limited to, any purchase price,
rent, charge, or fee.

 

8.3     Landscaping Easement. Declarant hereby establishes, grants and otherwise conveys
for the benefit of itself and the Association a nonexclusive easement for landscaping maintenance
purposes over that portion of the Lots fronting the streets, roads and rights-of-way within the
Community Area. In accordance with the foregoing, the Association shall have the right, but not the
obligation, to install landscaping and irrigation facilities in areas designated for such purposes on the
Plat or any Supplemental Plat annexing property to the Community Area (the "Landscaping
Easement"). Declarant and the Association shall have the right, but not the obligation, to plant,
maintain, and replace landscaping within any portion ofthe Landscaping Easement as it determines,
for any period that it desires. Further, Declarant or the Association can commence or terminate its
landscaping maintenance, for any portion of the Landscaping Easement, as it chooses, and can
recommence or cease landscaping maintenance from time to time, in its sole discretion. During any
period Declarant or the Association chooses not to maintain the landscaping within all or any portion
ofthe Landscaping Easement, the Owners ofLots for such areas shall have the obligation to maintain
the landscaping within the Landscaping Easement, in accordance with the provisions ofSection 3.1
of this Declaration. Should any Owner fail to maintain the landscaping within the Landscaping
Easement, during a period in which the Association is not maintaining such landscaping, the
Association shall have the right to enter onto such Lot Owners property and maintain the
landscaping, and charge such Lot Owner with the cost of such maintenance, as provided in Section

3.1.

8.4     Duty to Manage and Care for Association Properties. The Association shall manage,
operate, care for, maintain, and repair all Association Properties and keep the same in an attractive
and desirable condition for the use and enjoyment of the Members.

8.5     Duty to Pay Taxes. The Association shall pay all taxes and assessments levied upon
the Association Properties and all taxes and assessments payable by the Association. The
Association shall have the right to contest any such taxes or assessments provided that the
Association shall contest the same by appropriate legal proceedings which shall have the effect of
preventing the collection ofthe tax or assessment and the sale or foreclosure ofany lien for such tax
or assessment and provided that the Association shall keep and hold sufficient funds to pay and
discharge the taxes and assessments, together with any interest and penalties which may accrue with
respect thereto, if the contest of such taxes is unsuccessful.

8.6     Duly to Maintain Casually Insurance. The Association shall obtain and keep in full
force and effect at all times, to the extent reasonably obtainable, property insurance on all insurable
Association Properties, including, but not limited to, improvements and personal property owned
by the Association or that must be owned by the Association in the future. Such insurance shall be
for broad form covered causes of loss, including, casualty, fire, and extended coverage insurance
with respect to all insurable Improvements and personal property owned by the Association
including, if available at reasonable cost, coverage for vandalism and malicious mischief and, if
available and if deemed appropriate, coverage for flood, earthquake, and war risk. Such insurance
shall, to the extent reasonably obtainable, be for the full insurable replacement cost of the insured
property, less applicable deductibles at the time the insurance is purchased and at each renewal date,
exclusive ofland, excavation, foundations and other items normally excluded from property policies.

 

8.7     Dutv to Maintain Liability Insurance. The Association shall obtain and keep in full
force and effect at all times, to the extent reasonably obtainable, general liability insurance against
claims and liabilities arising in connection with the ownership, existence, use, or management ofthe
Association Properties and covering public liability for bodily injury and property damage and, if
the Association owns or operates motor vehicles, public liability for bodily injury and property
damage arising as aresult ofthe ownership and operation ofmotor vehicles. Such liability insurance
for other than motor vehicle liability shall, to the extent reasonably obtainable, (a) have limits ofnot
less than Five Hundred Thousand Dollars ($500,000) per person and One Million Dollars
($1,000,000) per occurrence; (b) insure the Board, the Association, the Manager, if any, and their
respective employees, agents and all Persons acting as agents; (c) include the Declarant as an
additional insured in such Declarant's capacity as a Member or Board member; (d) include the
Members as an additional insured, but only for claims and liabilities arising in connection with the
ownership, existence, use or management ofAssociation Properties; and ( e) cover claims ofone or
more insured parties against other insured properties.

8.8     General Provisions Respecting Insurance. Insurance obtained by the Association may
contain such deductible provisions as good business practice may dictate. Ifthe insurance described
is not reasonably available, or if any policy of such insurance is canceled or renewed without a
replacement policy therefor having been obtained by it, the Association shall promptly cause notice
of that fact to be delivered to all Members. The Association may carry any other type of insurance
it considers appropriate in amounts it deems appropriate, to insure the interest of the Association.
Insurance policies carried pursuant to Sections 8.6 and 8.7 shall provide that (a) each Member is an
insured Person under the policy with respect to liability arising out of such Member's interest in the
Association Properties or membership in the Association; (b) the insurer waives its right of
subrogation under the policy against the Association, each member, and any Person claiming by,
through, or under such Member or any other director, agent, or employee ofthe foregoing; (c) no act
or omission by any Member, unless acting within the scope of such Member's authority on behalf
of the Association, will void the policy or be a condition to recovery under the policy; and (d) ifat
the time of a loss under the policy, there is other insurance in the name of a Member covering the
same risk covered by the policy, the Association's policy shall be the primary insurance. The
Association may adopt and establish written nondiscriminatory policies and procedures relating to
the submittal ofclaims, responsibility for deductibles, and any other matters ofclaims adjustment.
To the extent the Association settles claims for damages to real property, it shall have the authority
to assess negligent Owners causing such loss or benefiting from such repair or restoration for all
deductibles paid by the Association. Insurance obtained by the Association shall, to the extent
reasonably possible, and provided Declarant reimburses the Association for any additional premium
payable on account thereof, name Declarant as an additional insured and shall contain a waiver of
rights of subrogation as against Declarant. Insurance policies and insurance coverage shall be
reviewed at least annually by the Board ofDirectors to ascertain whether coverage under the policies
is sufficient in light of the current values of the Association Properties and in light of the possible
or potential liabilities of the Association. The aforementioned insurance may be provided under
blanket policies covering the Association Properties and property of Declarant.

 

8.9     Maintenance ofFidelity Insurance. In the event the Board ofDirectors delegates its
powers with respect to collection, deposit, transfer, or disbursement of Association funds to other
persons or to a managing agent, as authorized by these Bylaws and the Colorado Common Interest
Ownership Act, then in connection with such delegation of powers, the Board of Directors shall
require:

8.9.1. Thatthe other persons or managing agent maintain fidelity insurance coverage
or a bond in an amount not less than Twenty-Five Thousand Dollars ($25,000) or such higher
amount as the Board of Directors or Executive Committee may require;

8.9.2. That the other persons or managing agent maintain all funds in accounts of
the Association separate from the funds and accounts of other associations managed by the other
persons or managing agent and maintain all reserve accounts of each association so managed
separate from operational accounts of the Association; and

8.9.3. That an annual accounting for Association funds and a financial statement be
prepared and presented to the Association by the managing agent, a public accountant, or a certified
public accountant.

8.10     Other Insurance and Bonds. The Association shall obtain such other insurance as may
be required by law, including workmen's compensation insurance, and shall have the power to obtain
such other insurance and such fidelity, indemnity, or other bonds as the Association shall deem
necessary or desirable.

8.11     Duty to Prepare Budgets. The Association shall prepare Budgets for the Association
as elsewhere provided in this Declaration.

8.12     Duty to Levy and Collect Assessments. The Association shall levy and collect
Assessments as elsewhere provided in this Declaration.

8.13     Duty to Keep Association Records. The Association shall keep financial records
sufficiently detailed to enable the Association to comply with the Act, including, but not limited to,
financial records sufficiently detailed to provide a statement setting forth the amount ofany unpaid
Assessments currently levied against an Owner.

8.14     Duties with Respect to Design Review Committee Approvals. The Association shall
perform functions to assist the Design Review Committee as elsewhere provided in this Declaration.
Additionally, the Association shall have the right to delegate the duties of the Design Review
Committee to a similar committee performing similar functions at other planned unit developments
within Garfield County, Colorado.

8.15     Power to Acquire Property and Construct Improvements. The Association may
acquire property or interests in property for the common benefit ofOwners including improvements
and personal property. The Association may construct Improvements on property and may demolish
existing Improvements.

8.16     Power to Adopt Rules and Regulations. The Association may adopt, amend, repeal,
and enforce Rules and Regulations as may be deemed necessary or desirable with respect to the
interpretation and implementation ofthis Declaration, the operation of the Association, the use and
enjoyment ofAssociation Properties, and the use ofany other property within the Community Area,
including Lots. Any such Rules and Regulations shall be effective only upon adoption by resolution
ofthe Board of Directors. Notice of the adoption, amendment, or repeal of any Rule or Regulation
shall be given in writing to each Member at the address for notices to Members as elsewhere
provided in this Declaration or the Bylaws, and copies of the currently effective Rules and
Regulations shall be made available to each Member upon request and payment of the reasonable
expense ofcopying the same. Each Member shall comply with such Rules and Regulations and shall
see that Persons claiming through such Member comply with such Rules and Regulations. Such
Rules and Regulations shall have the same force and effect as ifthey were set forth in and were part
of this Declaration. In the event of conflict between the Rules and Regulations and the provisions
ofthis Declaration, the provisions of this Declaration shall prevail.

8.17     Power to Enforce Declaration and Rules and Regulations. The Association shall have
the power to enforce the provisions ofthis Declaration and the Rules and Regulations and shall take
such action as the Board deems necessary or desirable to cause such compliance by each member
and each Person claiming by, through, or under such Member ("Related User"). Without limiting
the generality ofthe foregoing, the Association shall have the power to enforce the provisions ofthis
Declaration and the Rules and Regulations by anyone or more ofthe following means: (a) by entry
upon any property within the Community Area after Notice and Hearing (unless a bona fide
emergency exists), without liability to the Owner thereof or the Association, for the purpose of
enforcement or causing compliance with this Declaration or the Rules and Regulations; (b) by
commencing and maintaining actions and suits to restrain and enjoin any breach or threatened breach
of the provisions of this Declaration or the Rules and Regulations, by mandatory injunction or
otherwise; (c) by commencing and maintaining actions and suits to recover damages for breach of
any of the provisions of this Declaration or the Rules and Regulations; (d) by suspension, after
Notice and Hearing, of the voting rights of a Member during and for up to ten (10) days following
any breach by such Member or a Related User ofsuch Member ofthis Declaration or the Rules and
Regulations, unless the breach is a continuing breach in which case such suspension shall continue
for so long as such breach continues; (e) by levying and collecting, after Notice and Hearing, a
Reimbursement Assessment against any Member for breach of this Declaration or the Rules and
Regulations by such Member or Related User ofsuch Member; and (f) uniformly applied fines and
penalties, established in advance in the Rules and Regulations ofthe Association, from any Member
or Related User for breach of this Declaration or the Rules and Regulations by such Member or
Related User of such Member. In the event that the Association fails to enforce the provisions of
this Declaration as provided for herein, each Member shall, upon thirty (30) days written notice to
the Association, have the power (a) to enforce the provisions hereofby commencing and maintaining
actions and suits to retrain and enjoin any breach or threatened breach of the provisions of this
Declaration, by mandatory injunction or otherwise; or (b) to commence or maintain actions and suits
to recover damages for breach of any ofthe provisions of this Declaration.

8.18     Power to Grant Easements. The Association shall have the power to grant access,
utility, drainage, water facility, and such other easements in, on, over, or under Association
Properties as it deems necessary or desirable for the benefit of the Community Area. The
Association shall have the further power to designate portions of the Association Properties as
limited common elements for the benefit of specific Lot owners.

8. 19     Power to Convey and Dedicate Property to Governmental Agencies. The Association,
with the approval ofMembers representing at least sixty-seven percent (67%) ofthe Owners entitled
to vote (exclusive ofthe Declarant), shall have the power to grant, convey, dedicate, or transfer any
Association Properties or facilities to any public, governmental or quasi-governmental agency or
authority for such purposes and subject to such terms and conditions as the Association shall deem
appropriate, subject to the provisions elsewhere contained in this Declaration for approval of the
same by Declarant with respect to property transferred to the Association by Declarant. Further, to
the extent that any easement or right-of-way is required under or across any Association Properties
which would not impair or hinder the use thereof, the Association shall have the right to grant or
convey the same without the consent of the Members.

8.20     Power to Borrow Money and Mortgage Property. The Association shall have the
power to borrow money and, with the approval ofMembers representing at least sixty-seven percent
(67%) of the Owners entitled to vote (exclusive of the Declarant), to encumber Association
Properties as security for such borrowing, subject to provisions elsewhere contained in tlus
Declaration with respect to required approvals and consents to such action. An Agreement to
convey, or subject the Association Properties to a security interest in accordance with this Section
and Section 8.18 above shall be evidenced by the execution of an agreement, or ratification thereof,
in the same manner as a deed, by the requisite number of Owners. The agreement shall specify a
date after which the agreement will be void unless Recorded before the date and shall be effective
upon Recordation. Notwithstanding the foregoing, the Association, to the extent permitted by law,
shall have the power to borrow money and to pledge existing and future receivables as security for
such borrowing without the approval of the Members.

8.21     Power to Engage Employees, Agents. and Consultants. The Association shall have
the power to hire and discharge employees and agents and to retain and pay for management, (e.g.,
management company), legal and accounting services as may be necessary or desirable in connection
with the performance of any duties or the exercise of any powers of the Association under this
Declaration.

8.22     General Corporate Powers. The Association shall have all ofthe ordinary powers and
rights of a Colorado corporation formed under the Colorado Nonprofit Corporation Act, including,
without limitation, entering into partnership and other agreements, subject only to such limitations
upon such powers as may be set forth in this Declaration or in the Articles of Incorporation or
Bylaws. The Association shall also have the power to do any and all lawful things which may be
authorized, required, or permitted to be done under this Declaration or the Articles oflncorporation
or Bylaws and to do and perform any and all acts which may be necessary or desirable for, or
incidental to, the exercise of any of the express powers or rights of the Association under this
Declaration and the Articles ofIncorporation or Bylaws.

8.23     Power to Provide Association Functions. The Association shall have the power to
acquire, construct, operate, manage, maintain, repair, and replace all necessary facilities and to
provide Association Functions as defined in this Declaration. The Association may enter into such
cooperative agreements and arrangements as it may deem necessary and appropriate with any
provider ofutilities or public services to Owners, including any special municipal or quasi-municipal
districts created for the purpose ofprovi,ding such services.

8.24     Power to Provide Special Services to Members. The Association shall have the
power to provide services to a Member or group ofMembers. Any service or services to a Member
or group ofMembers shall be provided pursuant to an agreement in writing, or through one or more
Supplemental Declarations, which shall provide for payment to the Association by such Member or
group of Members ofthe reasonably estimated costs and expenses of the Association of providing
such services, including a fair share ofthe overhead expenses ofthe Association and shall contain
reasonable provisions assuring that the obligation to pay for such services shall be binding upon any
heirs, personal representatives, successors and assigns ofthe Member or group ofMembers and that
the payment for such services shall be secured by a lien on the property ofthe Member or group of
Members.

8.25     Power to Charge for Association Properties, Facilities and Services. The Association
shall have the power to establish reasonable and uniformly applied charges for the use ofAssociation
Properties, facilities and services. The charges may include reasonable admission or other fees for
any special or extraordinary use of Association Properties.

8.26     Power to Emplov Managers. The Association shall have the power to retain and pay
for the services of a manager or Managers, which may be an affiliate of Declarant, to undertake any
ofthe management or Administrative Functions, or Association Functions for which the Association
has responsibility under this Declaration to the extent deemed advisable by the Association, and may
delegate any ofits duties, powers, or functions to any such Manager. Any contract or agreement with
any such Manager shall be terminable by the Association for cause on no more than thirty (30) days
prior written notice, and shall be terminable by the Association without cause and without payment
of a termination fee on no more than ninety (90) days prior written notice. Any such contract or
agreement shall be for a term of no more than one (I) year and may be subj ect to renewal for
succeeding terms ofno more than one (1) year each. Notwithstanding any delegation to a Manager
of any duties, powers, or functions of the Association, the Association and its Board of Directors
shall remain ultimately responsible for the performance and exercise of such duties, powers and
functions.

8.27     Powers Provided by Law. In addition to the above-referenced powers, the
Association shall have full power to take and perform any and all actions which may be lawfully
taken by the Association under the Colorado Revised Nonprofit Corporation Act and the Colorado
Common Interest Ownership Act.

 

ARTICLE 9
ASSESSMENTS, BUDGETS AND FUNDS

9.1     Maintenance Funds to be Established. The Association may (but shall not be required
to) establish and maintain the following separate Maintenance Funds: (a) an Administrative
Functions Operating Fund; and (b) an Administrative Functions Reserve Fund. The Maintenance
Funds shall be established as one or more trust savings or trust checking accounts at any financial
institution in which deposits are insured by an agency ofthe federal government. Notwithstanding
anything else to the contrary contained herein, in no event shall the Association be required to apply
any surplus funds ofthe Association remaining after payment ofor provision for common expenses,
or any prepayment of or provision for reserves, against any Members' future Common Assessment
or return such surplus funds to the Members.

9.2     Establishment of Other Funds. The Association may establish other funds as and
when needed. Nothing herein shall limit, preclude, or impair the authority of the Association to
establish other funds for specified purposes authorized by this Declaration. If the Association
establishes any additional funds, the Board shall designate an appropriate title for the fund to
distinguish it from other funds maintained by the Association.

9.3     Deposit of Common Assessments to Maintenance Funds. If the Association
establishes separate Maintenance Funds, monies received by the Association from Common
Assessments shall be deposited in the Maintenance Funds in accordance with the following
provisions: (a) there shall be deposited to the Administrative Functions Operating Fund that portion
ofthe Common Assessments which, according to the Association Budget for the year, was budgeted
for operating costs and expenses ofthe Administrative and Association Functions; and (b) there shall
be deposited to the Administrative Functions Reserve Fund that portion ofthe Common Assessments
which were budgeted for the Reserve Fund for Administrative and Association Functions.

9.4    Other Deposits to Maintenance Funds. If the Association establishes separate
Maintenance Funds, the Association shall deposit monies received by the Association from sources
other than Common Assessments in the Maintenance Fund determined by the Board ofDirectors to
be most appropriate. For example, the Reimbursement Assessments shall be deposited to the
Maintenance Fund from which the costs and expenses were or will be paid which form the basis for
the Reimbursement Assessments; and Special Assessments for capital repairs, maintenance,
replacements, and Improvements shall be deposited to the Reserve Fund from which such capital
costs have been or will be paid. Interest and late charges received on account of delinquent
assessments may be allocated among the Maintenance Funds in the same proportions as the
delinquent assessments were allocated or, at the discretion of the Board of Directors, may be
allocated to anyone or more of the Maintenance Funds or other funds.

 

9.5     Disbursements from Maintenance Funds. All amounts deposited in the Maintenance
Funds shall be used solely for the common benefit of all the Members for purposes authorized by
this Declaration. Disbursements from particular Maintenance Funds shall be limited to specified
purposes as follows: (a) disbursements from the Administrative Functions Operating Fund may be
made for such purposes as are necessary or proper under this Declaration, except those purposes for
which disbursements are to be made from other Maintenance Funds; and (b) disbursements from the
Administrative Functions Reserve Fund shall be made solely for purposes of funding those
administrative Functions which cannot be expected to recur on an annual or more frequent basis.

9.6     Authority for Disbursements. The Board shall have the authority to make or to
authorize an agent to make disbursements of any monies in the Maintenance Fund.

9.7     Common Assessments. For each calendar year, the Association may levy Common
Assessments against Owners of the Lots. Each Owner shall be obligated to pay the Common
Assessments levied against and allocated to such Owner and the Lot of such Owner, as hereinafter
provided.

9.8     Apportionment of Common Assessments. For purposes of assessing the Common
Assessments, each Lot shall constitute one (1) Unit regardless ofthe size, value, location, or use of
such Lot. The amount ofthe Common Assessment for any year, payable by the Owner of such Lot,
shall be computed by multiplying the total amount to be raised by the Common Assessments for that
year, as shown in the Association Budget for that year, by a percentage (rounded to the nearest onetenth
of one percent (0.1 %), derived from a fraction, the numerator of which is one (I) and the
denominator of which is the total number of Lots in the Community Area as ofthe first day ofthat
calendar year. If Lots have been combined pursuant to Section 3.21 hereof, each Lot so combined
shall be counted separately in determining the amount of such Common Assessment and shall be
assessed separately.

9.9     Funding ofReserve Funds. The Board, in budgeting and levying assessments, shall
endeavor, whenever possible, to fund the Administrative Functions Reserve Fund by regularly
scheduled payments, included as part of the Common Assessments, rather than by large Special
Assessments. Amounts in the Administrative Functions Reserve Fund may be used in the discretion
of the Board of Directors, from time to time, for any purpose for which a Common or Special
Assessment may be used.

9.10     Supplemental Common Assessments. Subject to the provision ofSection 9.14 hereof,
if the estimated sums prove inadequate for any reason, including nonpayment of any Owner's
Common Assessment, the Board may, from time to time, levy a Supplemental Common Assessment
for any of the Maintenance Funds. Such Supplemental Common Assessment shall be assessed
against the Owner of each lot, in the same manner Common Assessments are originally assessed
each year by the Board with respect to the particular Maintenance Fund. Written notice of any
change in the amount of any annual Common Assessment shall be sent to every Owner subject
thereto, not less than thirty (30) days prior to the effective date of such change.

 

9.11     Annual Budgets. The Board ofDirectors shaH cause to be prepared, at least sixty (60)
days prior to the commencement of each calendar year, a Budget for such calendar year, including
a reasonable provision for contingencies and deposits into the Administrative Functions and Reserve
Funds. The Budget shaH show, in reasonable detail, the categories of expenses and the amount of
expenses in each Maintenance Fund, and shaH reflect any expected income of the Association for
the coming calendar year and any expected surplus from the prior year and any existing surplus in
any Reserve Fund. The budget may include an amount for contingencies and amounts deemed
necessary or desirable for deposits to create, replenish, or add to the proper Reserve Fund for major
capital repairs, replacements, and improvements for Association Properties. The Budget shall
include a line item or category reflecting aH annual expenses associated with the Conservation
Easement. Within thirty (30) days after the adoption of any Budget; the Board shaH cause a copy
of the Budget to be distributed to each Member and shall set a date for a meeting of the Owners to
consider ratification of the Budget not less than fourteen (14) nor more than sixty (60) days after
mailing or other delivery ofthe summary. Such meeting may be concurrent with the annual meeting
of members as provided in the Bylaws. Unless at that meeting, a majority of all Owners vote to
reject the Budget, the Budget shall be deemed ratified, whether or not a quorum is present. In the
event the budget is rejected, the periodic Budget last ratified by the O-wners must be continued until
such time as the Owners ratity a subsequent Budget proposed by the Board. At such time as the
Association publishes a newsletter for Members, the Budget shaH be published in such newsletter.
Copies ofthe Budget shall be made available by the Association to any Members requesting a copy
of the same upon payment of the reasonable expense of copying the same.

9.12     Commencement ofCommon Assessments/Community Areas. Common Assessments
shall commence and be due and payable as to each Lot within the Commlmity Area six (6) months
following the date of Recordation of the first Deed conveying a Lot within the Community Area.
The initial Common Assessments for the first calendar year that Common Assessments are levied
shaH be prorated on the basis ofthe number of days in such calendar year remaining from the date
of commencement of such Common Assessments to the end of such calendar year.

9.13     Payment of Assessment. Except for the Initial Assessment, Common Assessments
shall be due and payable in advance to the Association by the assessed Member on or before the first
day ofthe second month of each calendar year, or in such other manner and on such other dates as
the Board ofDirectors may designate in its sole and absolute discretion. Notice ofthe amount ofthe
Common Assessments shall be given to each Member prior to January I of each year.

9.14     Failure to Fix Assessment. The failure by the Board of Directors to levy an
Assessment for any year shaH not be deemed a waiver or modification with respect to any of the
provisions ofthis Declaration or a release ofthe liability ofany Member to pay Assessments, or any
instaHment thereof, for that or any subsequent year. No abatement of the Common Assessment or
any other Assessment shaH be claimed or allowed for inconvenience or discomfort arising from the
making of repairs or Improvements to Association Properties or from any action taken to comply
with any law or any determination of the Board of Directors or for any other reason.

 

9.15     Special Assessments for Capital Expenditures. In addition to Common Assessments,
the Board ofDirectors may, subject to the provisions of this Section, levy Special Assessments for
the purpose of raising funds not otherwise proved under the budget from Common Assessments to
construct or reconstruct, repair, or replace capital Improvements upon Association Properties,
including necessary personal property related thereto; to add to the Association Properties; to provide
for necessary facilities and equipment to offer the services authorized in this Declaration; orto repay
any loan made to the Association to enable it to perform the duties and functions authorized in this
Declaration. The Board of Directors shall not levy Special Assessments without the vote of the
Members representing at least a majority of the Owners of Lots subject to the Special Assessment
who are entitled to vote. The Association shall notify Members in writing of the amount of any
Special Assessment and ofthe manner in which, and the date on which, any such Special Assessment
is payable and the Members shall pay any such Special Assessment in the manner so specified.

9.16     Reimbursement Assessments. The Board ofDirectors may, subject to the provisions
hereof, levy an Assessment against any member ifthe willful or negligent failure ofthe Member, or
a Person claiming through the Member, to comply with this Declaration, the Articles of
Incorporation, the bylaws, or the rules and Regulations, shall have resulted in the expenditure of
funds by the Association to cause such compliance, including, but not limited to, court costs and
attorneys' fees. Such Assessment shall be known as a Reimbursement Assessment and shall be
levied only after Notice and Hearing. The amount of the Reimbursement Assessment shall be due
and payable to the Association thirty (30) days after notice to the Member of the decision of the
Board of Directors that the Reimbursement Assessment is owing. A Reimbursement Assessment
may also be levied against a Member for the purpose ofcollecting fines or damages imposed against
such Member as a result ofsuch Member's violation ofany provision ofthe Conservation Easement.

9.17     Late Charges and Interest. If any Common Assessment, Special Assessment, or
Reimbursement Assessment or any installment thereof is not paid when due, the Member obligated
to pay the Assessment may be required to pay a reasonable late charge to be determined by the
Board.. Any Assessment or installment of an Assessment which is not paid when due shall bear
interest from the date said Assessment was due at the highest rate then established by statute in
Colorado for interest on damages for personal injury or on judgments in other actions, whichever is
higher, but in no event less than eighteen percent (18%) per annum simple interest.

9.18    Attribution of Payments. Ifanyinstallmentofa Common Assessmentpaymentis less
than the amount assessed and the payment does not specify the Maintenance Fund or Funds into
which it should be deposited, the receipt by the Association from that Owner shall be credited in the
following order of priority: (a) to the Administrative Functions Reserve Fund until that portion of
the Common Assessment has been satisfied; and (b) to the Administrative Functions Operating
Fund. In each of the foregoing cases, receipts shall be credited first to interest, attorneys' fees and
other costs of collection, and next to principal reduction, satisfying the oldest obligations first,
followed by more current obligations, in accordance with the foregoing order of priority.

9.19     Notice of Default. Except as otherwise provided herein, ifany Common Assessment,
Special Assessment, or Reimbursement Assessment or any installment thereof is not paid within ten
(10) days after its due date, the Board of Directors may, but shall not be obligated to, mail a notice
of default ("Notice of Default") to the Owner and to each first Mortgagee of the Lot who has
requested a copy ofthe notice. The notice shall specifY (a) the fact that the installment is delinquent;
(b) the action required to cure the default; (c) a date, not less than thirty (30) days from the date the
notice is mailed to the Member, by which such default must be cured; and (d) that failure to cure the
default on or before the date specified in the notice may result in (i) acceleration of the balance of
the Assessment or the installments of the Assessment for the then current calendar year, if
applicable, and (ii) the filing and foreclosure of the lien for the Assessment against the Lot of the
Member. The notice shall further inform the Member ofany right to cure the default and ofany right
to bring a court action to assert the nonexistence of a default or any other defense of the Member.
Ifthe delinquent Assessment and any late charges or interest thereon are not paid in full on or before
the date specified in the notice, the Board, at its option, may declare all ofthe unpaid balance ofthe
Assessment to be immediately due and payable without further demand, if applicable, and may
enforce the collection of the Assessment and all charges and interest thereon in any manner
authorized by law in this Declaration, subject to the protection afforded to Mortgagees under this
Declaration.

9.20     Remedies to Enforce Assessments. Each Assessment levied hereunder shall be a
separate, distinct, and personal debt and obligation ofthe Owner or Member against whom the same
is assessed. In the event of a default in payment ofany Assessment or installment thereof, whether
Common, Special, or Reimbursement, the Board may, in addition to any other remedies provided
under this Declaration or by law, enforce such obligation on behalf of the Association by suit or by
filing and foreclosure of a lien as hereinafter provided.

9.21     Lawsuit to Enforce Assessments. The Board may bring a suit at law to enforce any
Assessment obligation. Any judgment rendered in such action shall include any late charges,
interest, and other costs of enforcement, including reasonable attorneys' fees in the amount as the
court may adjudge, against the defaulting Owner or Member.

9.22     Lien to Enforce Assessments. Pursuant to and in accordance with the Act, the
Association shall have a statutory lien on a Lot for any Assessment levied against that Lot, or fines
imposed against its Owner, from the time the Assessment or fine becomes due. All fees, charges,
late charges, attorneys' fees, fines and interest outstanding from such Owner shall be included in such
lien. The lien created hereby and under the Act shall be prior to any declaration ofhomestead rights
recorded after the time that the Lot becomes a part ofthe Community Area and shall have the priority
attached to such lien under the Act and under Colorado law. The lien shall continue until the
amounts secured thereby and all subsequently accruing amounts are fully paid or otherwise satisfied.
Unless paid or otherwise satisfied, the lien may be foreclosed in the manner for foreclosure of
mortgages in the State of Colorado or in any other manner provided under Colorado law.

9.23     Estoppel Certificates. Upon the written request of any Member and any Person with,
or intending to acquire, any right, title, or interest in the Lot of such Member, the Association shall
furnish a written statement setting forth the amount ofany Assessments or other amounts, ifany, due
and accrued and then unpaid with respect to a Lot and the Owner thereof, and setting forth the
amount ofany Assessment levied against such Lot which is not yet due and payable. Such statement
shall, with respect to the Person to whom it is issued, be conclusive against the Association and all
Persons for all purposes, that no greater or other amounts were then due or accrued and unpaid and
that no other Assessments have been levied. The Association shall have the right from time to time
to establish a reasonable administrative charge for the issuance ofsuch statements.

9.24     No Offsets. All Assessments shall be payable in the amounts specified in the levy
thereof, and no offsets or reduction thereof shall be permitted for any reason including, without
limitation, any claim that the Association or the Board of Directors is not properly exercising its
duties and powers under this Declaration.


ARTICLE 10
SPECIAL PROVISIONS

 

10.1     Air Ouality Restrictions. In order to protect against the degradation which occurs to
air quality as a result of the utilization of wood-burning devices, the following restrictions are
imposed:

10.1.1 No open hearth solid fuel fireplaces will be allowed anywhere within any new
dwelling units located within the Community Area.

10.1.2 All dwelling units within the Community Area will be allowed an unrestricted
number of natural gas burning fireplaces or appliances.

10.1.3 All dwelling units within the Comminity Area will be allowed one (I) new
wood-burning stove as defined by C.R .. 25-7-401 et. seq. and all the regulations promulgated
thereunder.

10.1.4 The foregoing air quality instructions shall be included as plat notes on all
Final Plats of the Property.

10.2     Duration and Enforceability. The restrictions set forth in this Article 10 shall
constitute covenants running with the Community Area and shall be binding upon Declarant and the
Owners and all other persons and parties claiming through the Declarant or Owners and shall be for
the benefit of and limitations upon all future Owners of the Property. Notwithstanding any other
provision of this Declaration, all use restrictions set forth in this Article 10 may be set forth in
individual deeds to Lots and shall be enforceable in perpetuity and shall not be amended or
terminated by action of the Owners or Declarant nor by any provision for termination of this
Declaration. The restrictions ofthese special environmental use restrictions shall be enforceable in
any and all manners provided in this Declaration by any Owners, by Declarant, or by any County,
State or Federal agency charged with preservation of the affected areas. Any such enforcement
action shall entitle the enforcing party to recovery ofdamages equal to the cost ofrestoration ofthe
Property, but not less than One Thousand Dollars ($1,000) and such enforcing party shall be entitled
to an award of its reasonable attorney fees and costs of enforcement, including but not limited to,
court costs, expert witness fees, and cost of depositions and exhibits.

 

ARTICLE II
MISCELLANEOUS

 

11.1     Term of Declaration. Unless amended as herein provided, and except for those
provisions set forth in Article 10 hereof, each provision contained in this Declaration shall continue
and remain in full force and effect until December 3 I, 2060, and thereafter shall be automatically
extended for successive periods often (I0) years each Illlless terminated by the affirmative vote, and
written ballot, of Members holding at least seventy-five percent (75%) of the membership of the
Association. In the event this Declaration is terminated, the termination ofthis Declaration shall be
evidenced by a termination agreement ("Termination Agreement"), or ratification thereof, executed
by the requisite number of Owners. The Termination Agreement shall specifY a date after which the
Termination Agreement will be void Illlless Recorded before such date. The T this Declaration may
be amended or terminated by Declarant by the Recordation of a written instrument, executed by
Declarant, setting forth such amendment or termination; provided, however, that no provision hereof
regarding the Conservation Easement shall be amended without the prior written approval of the
Roaring Fork Conservancy. After the conveyance of the first Lot, the Declarant ermination
Agreement shall be Recorded and the termination of this Declaration shall be effective upon such
Recording.

11.2     Amendment ofDeclaration by Declarant. Until the first Lot subject to this Declaration
has been conveyed by Declarant by a Recorded deed, any of the provisions, covenants, conditions,
restrictions, and equitable servitudes contained in this Declaration may be amended or terminated
by Declarant by the Recordation of a written instrument, executed by Declarant, setting forth such
amendment or termination; provided, however, that no provision hereof regarding the Conservation
Easement shall be amended without the prior written approval of the Roaring Fork Conservancy.
After the conveyance of the first Lot, the Declarant may not amend the provisions, covenants,
conditions, restrictions and equitable servitudes contained in this Declaration without the consent
ofthe Members as provided in Section IIJ unless such amendment is made in accordance with the
Act.

11.3     Amendment of Declaration by Members. Except as otherwise provided in this
Declaration, including Section 6.1, and subject to provisions elsewhere contained in this Declaration
requiring the consent of Declarant or others, any provision, covenant, condition, restriction, or
equitable servitude contained in this Declaration may be amended or repealed at any time and from
time to time upon approval of the amendment or repeal by Members of the Association holding at
least fifty-one percent (51 %) ofthe Members; provided, however, that no provision hereof regarding
the Conservation Easement shall be amended without the prior written approval ofthe Roaring Fork
Conservancy. The approval ofany such amendment or repeal shall be evidenced by the certification
by the Members to the Board of Directors of the Association of the votes of Members. The
amendment or repeal shall be effective upon the Recordation of a certificate, executed by the
President or a Vice President and the Secretary or an Assistant Secretary of the Association setting
forth the amendment or repeal in full and certifying that the amendment or repeal has been approved
by the Members. Any Amendment to the Declaration made hereunder shall be effective only when
Recorded. All amendments hereto shall be indexed in the grantee's index in the name ofDeclarant
and the Association and in the Grantor's index in the name ofeach Person executing the amendment.

11.4     Amendment ofArticles and Bylaws. The Articles ofIncorporation and Bylaws may
be amended in accordance with the provisions set forth in such instruments or, in the absence ofsuch
provisions, in accordance with applicable provisions of the Colorado Nonprofit Corporation Act.

11.5     Alternative Dispute Resolution. Except as may otherwise be provided herein and
alter exercising all rights and remedies provided hereunder or under the Bylaws, any claim,
controversy, or dispute over any Special Assessment or Reimbursement Assessment, or any decision
ofthe Design Review Committee, or any other matters as the Association and the affected party may
agree, shall be resolved by binding arbitration in accordance with the Colorado Arbitration Act. The
parties to such dispute shall agree upon a single arbitrator who shall be an experienced operator or
manager of a Planned Community. In the event the parties are unable to agree upon an arbitrator
within sixty (60) days after written notice, the presiding Judge ofthe District Court of the County
shall appoint an arbitrator qualified as set forth herein upon application by a party. Judgment upon
the determination ofthe arbitrator shall be entered by the District Court for the County. Any and all
discovery conducted in conjunction with such arbitration shall be in accordance with the limited
discovery provisions of the Colorado rules ofCivil Procedure.

11.6     Special Rights ofFirst Mortgagees. Any First Mortgagee (meaning a Mortgage with
first priority over other Mortgages) of a Mortgage encumbering any Lot in the Community Area,
upon filing a written requestthereforwith the Association, shall be entitled to (a) written notice from
the Association of any default by the Mortgagor of such Lot in the performance of the Mortgagor's
obligations under this Declaration, the Articles of Incorporation, the bylaws, or the rules and
Regulations, which default is not cured within sixty (60) days after the Association learns of such
default; (b) examine the books and records of the Association during normal business hours; (c)
receive a copy of financial statements of the Association including any arumal financial statement
within ninety (90) days following the end of any fiscal year of the Association; (d) receive written
notice ofall meetings ofMembers; (e) designate a representative to attend any meeting ofMembers;
(I) receive thirty (30) days' written notice prior to the effective date of any proposed material
amendment to this Declaration, the Articles of Incorporation, or the Bylaws; and (g) receive
immediate written notice as soon as the Association receives notice or otherwise learns of any
damage to the Association Properties if the cost of reconstruction exceeds Ten Thousand Dollars
($10,000) and as soon as the Association receives notice or otherwise learns of any condemnation
or eminent domain proceedings or other proposed acquisition with respect to any portion of the
Association Properties.

11.7     Priority ofFirst Mortgage Over Assessments. Except as may otherwise be provided
by the Act, each First Mortgagee of a Mortgage encumbering a Lot who obtains title to such Lot
pursuant to the remedies provided in the Mortgage, by judicial foreclosure, or by deed or assignment
in lieu of foreclosure shall take title to the Lot free and clear of any claims for unpaid Assessments
or charges against such Lot which accrued prior to the time such holder acquires title to such Lot.
Nothing herein relieves such First Mortgagee from responsibility for subsequent Assessments or
charges against such Lot after such time the holder acquires title to such Lot.

11.8     First Mortgage Right to Pay Taxes and Insurance Premiums. Any such First
Mortgagee or any such First Mortgagees,jointly or singly, shall be entitled to pay any taxes or other
charges which are in default and which mayor have become a charge against any ofthe Association
Properties and may pay any overdue premiums on hazard insurance policies for any Association
Properties, and the First Mortgagees making such payments shall be entitled to immediate
reimbursement therefor from the Association.

11.9     Association Right to Mortgage Information. Each Owner hereby authorizes any First
Mortgagee holding a Mortgage on such Owner's Lot to furnish information to the Association
concerning the status of such First Mortgage and the loan which it secures.

11.10     Notices. Any notice permitted or required to be given under this Declaration shall
be in writing and may be given either personally or by mail, telephone, or telegraph. If served by
mail, each notice shall be sent postage prepaid, addressed to any Person at the address given by such
Person to the Association for the purpose of service of such notice, or to the Lot of such Person if
no address has been given to the Association and shall be deemed given, if not actually received
earlier, at 5 :00 p.m. on the second business day after it is deposited in a regular depository of the
United States Postal Service. Such address may be changed from time to time by notice in writing
to the Association.

11.11     Persons Entitled to Enforce Declaration. The Association, acting by authority ofthe
Board, and any Member ofthe Association entitled to vote (as more fully provided herein) shall have
the right to enforce any or all of the provisions, covenants, conditions, restrictions, and equitable
servitudes contained in this Declaration against any property within the Community Area and the
Owner thereof. Notwithstanding the foregoing, prior to the enforcement ofthe terms and provisions
of this Declaration by any Member, such Member shall provide the Association with 30 days prior
written notice of such member's intention to do so. Such notice will state such Member's claim for
enforcement under the Declaration. In the event the Association fails to initiate action on such
Member's claim for enforcement within 30 days of the Association's receipt of such notice, such
Member shall be entitled to proceed with the enforcement within 30 days ofthe Association's receipt
of such notice, such Member shall be entitled to proceed with the enforcement of such claim
individually. The rights of enforcement provided herein shall include the right to levy fines and/or
penalties as the Board may reasonably determine and/or bring an action for damages as well as an
action to enjoin any violation of any provision of this Declaration.

11.12     Violations Constitute a Nuisance. Any violation of any proVISIOn, covenant,
condition, restriction, and equitable servitude contained in this Declaration, whether by act or
omission, is hereby declared to be a nuisance and may be enjoined or abated, whether or not the
relief sought is for negative or affirmative action, by any Person entitled to enforce the provisions
of this Declaration.

11.13     Enforcement of Self-Help. Declarant or the Association, or any authorized agent of
either of them, may enforce, by self-help, any ofthe provisions, covenants, conditions, restrictions
and equitable servitudes contained in this Declaration, provided such self-help is preceded by Notice
and Hearing as set forth in the Bylaws.

11.14     Violations of Law. Any violation of any federal, state, municipal, or local law,
ordinance, rule or regulation, pertaining to the ownership, occupation, or use ofany property within
the Community Area is hereby declared to be a violation ofthis Declaration and shall be subject to
any and all enforcement procedures set forth in this Declaration.

11.15     Remedies Cumulative. Each remedy provided under this Declaration is cumulative
and not exclusive.

11.16     Costs and Attorneys' Fees. In any action or proceeding under this Declaration, the
prevailing party shall be entitled to recover its costs and expenses in connection therewith including
reasonable attorneys' fees.

11. 17     Limitation on Liability. The Association, the Board ofDirectors, the Design Review
Committee, Declarant, and any Member, agent, or employee of any of the same shall not be liable
to any Person for any action or for any failure to act if the action or failure to act was in good faith
and without malice.

11. 18     No Representations or Warranties. No representations or warranties of any kind,
express or implied, shall be deemed to have been given or made by Declarant or its agents or
employees in connection with any portion ofthe Community Area, or any Improvement thereon, its
or their physical condition, zoning, compliance with applicable laws, fitness for intended use, or in
connection with the subdivision, sale, operation, maintenance, cost of maintenance, taxes or
regulation thereof, unless and except as shall be specifically set forth in writing herein, in any
purchase agreement executed by Declarant, or in any closing document related thereto.

11. 19     Liberal Interpretation. The provisions ofthis Declaration shall be liberally construed
as a whole to effectuate the purpose of this Declaration.

11.20     Governing Law. This Declaration shall be construed and governed under the laws
of the State of Colorado.

11.21     Colorado Common Interest Ownership Act. In the event that any of the terms and
conditions of this Declaration are in conflict or inconsistent with the terms and conditions of the
Colorado Common Interest Ownership Act, the terms and conditions of the Act shall control. All
terms and provisions contained herein, to the extent possible, shall be construed in accordance with
the terms and provisions of the Act.

11.22     Severability. Each ofthe provisions ofthis Declaration shall be deemed independent
and severable, and the invalidity or unenforceability or partial validity or partial enforceability ofthe
provisions or portion thereof shall not affect the validity or enforceability of any other provision.

11.23     Number and Gender. Unless the context requires a contrary construction, the singular
shall include the plural and the plural the singular, and the masculine, feminine, or neuter genders
shall each include the masculine, feminine, and neuter genders.

11.24     Captions for Convenience. The titles, headings, and captions used in this Declaration

are intended solely for convenience ofreference and shall not be considered in construing any ofthe

provisions of this Declaration.

11.25     Mergers or Consolidations. Upon a merger or consolidation ofthe Association with
another association, its properties, rights, and obligations may, by operation of law, be transferred
to another surviving or consolidated association or, alternatively, the properties, rights, and
obligations of another association may, by operation of law, be added to the properties, rights and
obligations of the Association as a surviving corporation pursuant to a merger. The surviving
consolidated association may administer and enforce the covenants, conditions and restrictions
established by this Declaration governing the Property, together with the covenants and restrictions
established upon any other property, as one plan.
11.26 Disclaimer Regarding Safety. DECLARANT AND THE ASSOCIATION HEREBY
DISCLAIM ANY OBLIGATION REGARDING THE SECURITY OF ANY PERSONS OR
PROPERTY WITHIN THE COMMUNITY AREA. A.l\IY OWNER OF PROPERTY WITHIN THE
COMMUNITY AREA ACKNOWLEDGES THAT DECLARANT AND THE ASSOCIATION
ARE ONLY OBLIGATED TO DO THOSE ACTS SPECIFICALLY ENUMERATED HEREIN,
OR IN THE ARTICLES OF INCORPORATION AND BYLAWS, AND IS NOT OBLIGATED TO
DO ANY OTHER ACTS WITH RESPECT TO THE SAFETY OR PROTECTION OF PERSONS
OR PROPERTY WITHIN THE COMMUNITY AREA.

 

IN WITNESS WHEREOF, Declarant has executed this Declaration the day and year first
above written.

CORYELL RANCH COMPANY, L.L.c., a
Colorado limited liability company

Title:_____________________

STATE OF_______ )

COUNTY OF ________)

() The foregoing instrument was acknowledge before me this I81hday of January, 2000, by

owld l PorrlS ,as ILw fh,Sdeot for Coryell Ranch Management
Company, Inc., a South Carolina corporation, Manager of Coryell Ranch Company, L.L.c., a
Colorado limited liability company.

WITNESS my hand and official seal.

My commission expires: _______

818 Colorado Avenue
Glenwood Springs, CO 81601
My Commission expires April 28, 2001

By; Coryell Ranch

By:_________________________
Declaration of Covenants, Conditions and Restrictions for Coryell Ranch Page 50 of 50

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