Sierra Mohada Covenants

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR

SIERRA MOJADA WEST, CUSTER COUNTY, STATE OF COLORADO

KNOW ALL MEN BY THESE PRESENTS THAT THIS DECLARATION, MADE ON THE DATE HEREAFTER SET FORTH BY MARKUS HERZOG HEREIN REFERRED TO AS THE DECLARANT, WITNESSETH:

WHEREAS, THE DECLARANT IS THE OWNER OF AND HAS TITLE TO A PARCEL OF REAL PROPERTY DESCRIBED IN THE DEED RECORDED ON THE 18th DAY OF NOVEMBER, 1994, AS RECEPTION NUMBER 167700, BOOK 274, PAGE 285, IN THE RECORDS OF CUSTER COUNTY, STATE OF COLORADO, TOGETHER WITH ALL THE IMPROVEMENTS THEREON AND ALL THE WATER RIGHTS, EASEMENTS AND OTHER RIGHTS APPURTENANT THERETO. A PART OF SAID PARCEL, AS SHOWN ON THE ATTACHED LOT MAP, CURRENTLY CONSTITUTES WHAT IS HEREIN CALLED THE PROPERTY AND SHALL BE KNOWN AS SIERRA MOJADA.

WHEREAS, THE DECLARANT DESIRES TO DOCUMENT THE CREATION OF A COMMUNITY WITH COMMON FACILITIES FOR THE BENEFIT OF SAID COMMUNITY AND TO PROVIDE FOR THE INSTALLATION AND MAINTENANCE OF SAID COMMON FACILITIES BY MEANS OF THE SIERRA MOJADA OWNER'S ASSOCIATION, A COLORADO NONPROFIT CORPORATION, HEREIN REFERRED TO AS THE ASSOCIATION.

WHEREAS, THE DECLARANT DESIRES TO DESIGN SAID COMMUNITY IN SUCH A FASHION AS TO PRESERVE AS MUCH OF THE LAND WITHIN THE PROPERTY AS POSSIBLE FOR RANCHING AND USE BY WILDLIFE.

WHEREAS, THE DECLARANT WILL ONLY CONVEY THE PROPERTY OR ANY PART THEREOF, SUBJECT TO CERTAIN PROTECTIVE COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, LIENS AND CHARGES AS HEREIN SET FORTH.

NOW, THEREFORE, IN CONSIDERATION FOR THE BENEFITS DERIVED FROM THIS DECLARATION, THE DECLARANT HEREBY DECLARES THAT ALL OF THE PROPERTY SHALL BE HELD, SOLD AND CONVEYED SUBJECT TO THE FOLLOWING EASEMENTS, RESTRICTIONS, COVENANTS AND CONDITIONS, ALL OF WHICH ARE FOR THE PURPOSE OF ENHANCING AND PROTECTING THE VALUE AND ATTRACTIVENESS OF THE PROPERTY. THESE EASEMENTS, COVENANTS, RESTRICTIONS AND CONDITIONS SHALL BE APPURTENANT TO AND RUN WITH THE LAND. THEY SHALL BE BINDING UPON ALL PARTIES HAVING ACQUIRED ANY RIGHT, TITLE OR INTEREST IN THE PROPERTY OR ANY PART THEREOF, AND SHALL INURE TO THE BENEFIT OF THE OWNERS THEREOF.

DEFINITIONS

ACCESS ROAD: ALL ROADS THAT ARE WITHIN THE PASTURE BUT ARE NOT COUNTY MAINTAINED ROADS.

AGENT: THE OFFICIAL REPRESENTATIVE OF THE ASSOCIATION PERFORMING THE ACTUAL INSTALLATION AND MAINTENANCE OF THE COMMON FACILITIES. THE AGENT MAY BE COMPOSED OF ONE OR MORE PERSONS AND/OR LEGAL ENTITIES.

ASSOCIATION: SIERRA MOJADA OWNER'S ASSOCIATION, A COLORADO NONPROFIT CORPORATION, ITS SUCCESSORS AND/OR ASSIGNS.

BOARD: THE BOARD OF DIRECTORS OF THE ASSOCIATION.

BUILDING ENVELOPE: THAT PART OF A LOT THAT MUST CONTAIN THE DWELLING UNIT.

COMMON FACILITIES: ALL FACILITIES THAT ARE DEDICATED TO THE ASSOCIATION.

DECLARANT: MARKUS HERZOG, POB 361, LOUISVILLE, CO. 80027, (303) 443-4651, HIS SUCCESSORS AND/OR ASSIGNS.

DRIVEWAYS: ALL ROADS THAT ARE WITHIN BUILDING ENVELOPES.

DWELLING UNIT: A SINGLE FAMILY RESIDENTIAL STRUCTURE ALSO CALLED A HOUSE OR A HOME.

GOOD STANDING: NOT OWING ANY MONEYS TO THE ASSOCIATION NOR BEING IN VIOLATION OF ANY OF ITS RULES AND REGULATIONS, ITS ARTICLES OF INCORPORATION NOR ANY OF THE PROVISIONS SET FORTH HEREIN.

INFLATION: ONE (1.0) PERCENT OF THE APPLICABLE AMOUNT FOR EACH FULL QUARTER THAT HAS EXPIRED SINCE JANUARY 1, 1996, COMPOUNDED QUARTERLY. ITS PURPOSE IS TO ADJUST FEES, FINES AND CHARGES FOR INFLATION.

LOT: A PARCEL OF LAND WITHIN THE PROPERTY THAT IS AT LEAST THIRTY-FIVE (35) ACRES IN SIZE.

MAJORITY: A SIXTY (60) PERCENT MAJORITY OF THE VOTES THAT CAN BE CAST BY MEMBERS IN GOOD STANDING.

MEMBER: AN OWNER BY VIRTUE OF BEING AN OWNER. A MEMBER MAY BE COMPOSED OF ONE OR MORE PERSONS AND/OR LEGAL ENTITIES.

OWNER: AN OWNER OF FEE SIMPLE TITLE TO ANY LOT, INCLUDING A CONTRACT BUYER, BUT EXCLUDING THOSE ONLY HAVING AN INTEREST IN ALL OR ANY PART OF THE PROPERTY AS SECURITY FOR THE PERFORMANCE OF AN OBLIGATION. AN OWNER MAY BE COMPOSED OF ONE OR MORE PERSONS AND/OR LEGAL ENTITIES.

PASTURE: THOSE PARTS OF ALL LOTS THAT ARE OUTSIDE THE BUILDING ENVELOPES.

PRIMARY RIGHTS: AN UNDERLYING RIGHT AND EASEMENT OF ENJOYMENT IN AND TO ALL THE COMMON FACILITIES TO BE CONVEYED TO THE ASSOCIATION WHICH SHALL BE EXCLUSIVE WITH RESPECT TO ALL WATER RIGHTS, GRAZING RIGHTS, THE USE OF SURFACE ROCK AND TIMBER, THE INSTALLATION AND MAINTENANCE OF ROADS, FENCES, UNDERGROUND UTILITIES AND RANCH STRUCTURES (E.G. BARNS, STABLES AND CORRALS), AND WHICH SHALL BE NON-EXCLUSIVE WITH RESPECT TO INGRESS AND EGRESS.

PROPERTY: THE PARCEL OF LAND SHOWN ON THE ATTACHED LOT MAP.

RANCHER: THE RANCHER LEASING THE PASTURE.

TO RECORD: TO RECORD IN THE RECORDS OF CUSTER COUNTY, STATE OF COLORADO.

TO REGISTER: TO REGISTER IN WRITING WITH THE SECRETARY OF THE ASSOCIATION.

SECONDARY RIGHTS: A NON-EXCLUSIVE RIGHT AND EASEMENT OF ENJOYMENT IN AND TO PARTS OF THE COMMON FACILITIES TO BE GRANTED BY THE ASSOCIATION TO EACH OWNERS ONLY TO INCLUDE, HOWEVER, INGRESS AND EGRESS, AS RESTRICTED HEREIN. ANY SUCH RIGHT AND EASEMENT GRANTED BY THE ASSOCIATION SHALL BE APPURTENANT TO AND SHALL RUN WITH THE LOT OF EACH OWNER. ALL OTHER RIGHTS TO THE COMMON FACILITIES OWNED BY THE ASSOCIATION SHALL REMAIN WITH THE ASSOCIATION AND THE GRANTING OF THE SECONDARY RIGHTS SHALL NEITHER RELINQUISH, IMPAIR NOR AFFECT THE PRIMARY RIGHTS WHATSOEVER.

TERM OF THE INITIAL BOARD: THE PERIOD OF TIME FROM THE DATE HEREOF UNTIL THE DECLARANT EITHER HAS SOLD MORE THAN TWENTY-FOUR (24) LOTS WITHIN THE PROPERTY OR REQUESTS THE ELECTION OF A NEW BOARD, WHICHEVER COMES FIRST.

VOTING MEMBER: THE NATURAL PERSON REGISTERED TO CAST THE VOTE FOR A MEMBER.

PROVISIONS

1. PROPERTY: IT INCLUDES FORTY-ONE (41) LOTS AS SHOWN ON THE ATTACHED LOT MAP. ALL OF SAID LOTS ARE SUBJECT TO THE PROVISIONS SET FORTH HEREIN.

2. PLAT MAP AND SURVEYS: THE ATTACHED LOT MAP ONLY INDICATES WHERE EACH LOTS IS LOCATED AND ITS BOUNDARIES MAY STILL CHANGE UNTIL A CERTIFIED LAND SURVEY PLAT OR SUBDIVISION PLAT IS RECORDED.

3. BOUNDARY ADJUSTMENTS: THE DECLARANT, FOR EACH LOT OWNED WITHIN THE PROPERTY, HEREBY COVENANTS, AND EACH OWNER OF A LOT BY ACCEPTANCE OF A DEED OR OTHER CONVEYANCE THEREFOR, WHETHER OR NOT IT SHALL BE SO EXPRESSED IN ANY SUCH DEED OR OTHER CONVEYANCE, IS DEEMED TO COVENANT AND AGREE TO ACCEPT AND SIGN SAID PLATS (SEE SECTION TWO (2)) AS DESIGNED BY THE DECLARANT AS WELL AS ANY OTHER DOCUMENTS NECESSARY TO RECORD SAID PLATS OR TO ADJUST THE BOUNDARIES OF ANY LOT AS DETERMINED BY THE DECLARANT.

4. RANCH LOTS: LOTS 19 THROUGH 22 ARE DESIGNATED AS RANCH LOTS. A WORKING GUEST RANCH MAY BE ESTABLISHED THEREON. ALL USES CUSTOMARILY ASSOCIATED WITH A CATTLE/HORSE GUEST RANCH ARE PERMITTED ON THE RANCH LOTS. HOWEVER, THE BOARD SHALL HAVE THE RIGHT TO ESTABLISH REASONABLE STANDARDS FOR ANY OF THESE USES THROUGH ITS RULES AND REGULATIONS. THE SIZE OF THE GUEST RANCH SHALL BE LIMITED TO FORTY (40) GUESTS OR, IF MORE RESTRICTIVE, AS PERMITTED BY CUSTER COUNTY LAND USE, ZONING AND SUBDIVISION REGULATIONS.

5. PASTURE: IT SHALL BE LEASED TO A RANCHER FOR GRAZING CATTLE AND/OR HORSES. IT IS EXEMPT FROM CATTLE/HORSE GRAZING RESTRICTIONS APPLICABLE TO AREAS WITHIN BUILDING ENVELOPES. ALL ACTIVITIES CUSTOMARILY ASSOCIATED WITH CATTLE/HORSE GRAZING SHALL BE PERMITTED ON THE PASTURE. OWNERS MAY USE THE PASTURE FOR RECREATIONAL PURPOSES AS LONG AS THEIR ACTIVITIES DO NOT DAMAGE THE PASTURE NOR INTERFERE WITH ITS USE BY THE RANCHER. THE USE OF ANY MOTORIZED VEHICLE OR EQUIPMENT IS PROHIBITED ON THE PASTURE WITHOUT WRITTEN PERMISSION FROM THE BOARD OR AS EXPLICITLY PERMITTED HEREIN. OWNERS MAY NOT ALTER THE PASTURE IN ANY WAY WHATSOEVER WITHOUT WRITTEN PERMISSION FROM THE BOARD. UNFENCED BUILDING ENVELOPES SHALL BE CONSIDERED AS PART OF THE PASTURE UNTIL THEY ARE FENCED OUT FROM THE PASTURE.

6. PASTURE FENCING: IT IS THE RESPONSIBILITY AND EXPENSE OF THE ASSOCIATION TO INSTALL AND MAINTAIN A FENCE AROUND EACH CLUSTER OF BUILDING ENVELOPES INCLUDING A CATTLE GUARD AND/OR GATE WHERE THE ACCESS ROAD LEADS TO OR FROM SUCH A CLUSTER. THE FENCE SHALL BE INSTALLED ONCE AT LEAST ONE RESIDENCE IS BEING CONSTRUCTED WITHIN SUCH A CLUSTER. IT IS THE RESPONSIBILITY OF THE OWNERS TO NOTIFY THE ASSOCIATION OF BROKEN DOWN FENCING AROUND BUILDING ENVELOPES. DAMAGES CAUSED BY ANIMALS GAINING ACCESS TO BUILDING ENVELOPES ARE THE RESPONSIBILITY AND EXPENSE OF THE OWNERS. THE MAINTENANCE OF THE FENCE ALONG THE PERIMETER OF THE PROPERTY SHALL BE THE RESPONSIBILITY AND EXPENSE OF THE RANCHER. HOWEVER, REPLACEMENT OF SAID PERIMETER FENCE SHALL BE THE RESPONSIBILITY AND EXPENSE OF THE ASSOCIATION. ALL NEW FENCING SHALL BE INSTALLED ACCORDING TO WILDLIFE DEPARTMENT RECOMMENDATIONS.

7. BUILDING ENVELOPES: THE SIZES OF THE BUILDING ENVELOPES VARY FROM THREE (3) TO FIVE (5) ACRES. THEY ARE LARGER WHERE BUILDING DENSITY IS HIGHER. THEIR SIZE OR SHAPE MAY NOT BE CHANGED UNLESS APPROVED IN WRITING BY THE BOARD. IF SUCH A CHANGE IS GRANTED, IT IS HIS RESPONSIBILITY AND EXPENSE OF THE OWNER TO MAKE THE REQUIRED CHANGES TO THE PASTURE FENCING AND OTHER COMMON FACILITIES. UNFENCED BUILDING ENVELOPES SHALL BE CONSIDERED AS A PART OF THE PASTURE UNTIL THEY ARE FENCED OUT. THE BOARD SHALL KEEP DETAILED MAPS SHOWING THE SHAPE AND SIZE OF ALL BUILDING ENVELOPES.

8. EASEMENTS: AT EVERY ENTRANCE TO THE PROPERTY THERE SHALL BE A 200'x200' GATE AND WORK AREA EASEMENT. IT SHALL ONLY BE USED BY THE ASSOCIATION (E.G. FOR GATE OPERATION AND ROAD MAINTENANCE).

9. OWNER'S RIGHTS: AS GRANTED BY THE ASSOCIATION, EACH OWNER SHALL ONLY HAVE SECONDARY RIGHTS TO THE COMMON FACILITIES AND MAY NOT USE THOSE PARTS OF HIS LOT DEDICATED TO THE ASSOCIATION AS COMMON FACILITIES FOR THE PURPOSES DEFINED IN THE PRIMARY RIGHTS UNLESS WRITTEN PERMISSION HAS BEEN GRANTED BY THE BOARD. AN OWNER'S RIGHTS ARE ALWAYS SUBJECT TO THE FOLLOWING RESTRICTIONS:

(A) THE RIGHT OF THE BOARD TO SUSPEND THE VOTING RIGHTS OF A MEMBER FOR A PERIOD DURING WHICH ANY ASSESSMENTS AGAINST THE LOT OF SAID MEMBER OR ANY OTHER MONEYS OWED TO THE ASSOCIATION BY SAID MEMBER REMAIN UNPAID, OR, FOR A PERIOD NOT TO EXCEED ONE (1) YEAR, FOR ANY VIOLATION OF THE ASSOCIATION'S RULES AND REGULATIONS OR THE PROVISIONS SET FORTH HEREIN AND

(B) THE RIGHT OF THE ASSOCIATION TO DEDICATE OR TRANSFER ALL OR ANY PART OF THE PRIMARY RIGHTS TO ANY PUBLIC AGENCY, AUTHORITY OR UTILITY AS LONG AS SAID PUBLIC ENTITY AGREES TO AND DOES MAINTAIN THE RELATED FACILITY IN A FIRST-RATE AND WORKMANLIKE MANNER.

10. DELEGATION OF USE: ANY OWNER MAY DELEGATE HIS RIGHTS AND EASEMENTS OF ENJOYMENT TO THE COMMON FACILITIES TO ANY MEMBER OF HIS FAMILY, HIS TENANTS OR HIS GUESTS.

11 ASSOCIATION GUESTS: THE ASSOCIATION MAY GRANT NON-OWNERS LICENSES TO USE ANY COMMON FACILITY. THE ASSOCIATION MAY, BUT NEED NOT, CHARGE ONE-TIME OR YEARLY FEES PLUS A SECURITY DEPOSIT FOR SAID LICENSES WHICH MAY BE PERPETUAL BUT MUST BE REVOCABLE. IT IS THE RESPONSIBILITY OF THE BOARD TO ISSUE OR REVOKE SUCH LICENSES.

12. LOT ACCESS LICENSES: ALL OWNERS, BY VIRTUE OF BEING AN OWNER, HEREWITH GRANT THE APPROPRIATE EASEMENTS AND LICENSES TO THE DECLARANT AND HIS REPRESENTATIVES AS WELL AS TO ANY AND ALL REPRESENTATIVES OF THE ASSOCIATION SO THAT SAID INDIVIDUALS CAN PROCEED UNHINDERED WITH THEIR DUTIES AS OUTLINED HEREIN., INCLUDING BUT NOT LIMITED TO SURVEYING, FENCE MAINTENANCE AND WEED CONTROL.

13. ASSOCIATION: THE ASSOCIATION MAY NOT OWN REAL PROPERTY OR IMPROVEMENTS THEREON EXCEPT FOR THE PRIMARY RIGHTS. THEREFORE, IT CANNOT OWN THE COMMON FACILITIES AS SUCH BUT ENJOYS SPECIFIC RIGHTS OF USE. THE ASSOCIATION SHALL NOT HAVE ANY EMPLOYEES AT ANY TIME NOR OWN ANY EQUIPMENT OR MATERIALS REQUIRED TO INSTALL OR MAINTAIN THE COMMON FACILITIES. INSTEAD, THE AGENT SHALL PROVIDE THEM AS NEEDED.

14. CORPORATE SEAL: THE ASSOCIATION SHALL ADOPT A CORPORATE SEAL AN IMPRESSION OF WHICH SHALL BE MADE ON ALL INSTRUMENTS THAT ARE RECORDED BY THE ASSOCIATION.

15. RULES AND REGULATIONS: THE ASSOCIATION HAS THE RIGHT AND POWER TO ADOPT SUCH RULES AND REGULATIONS AS ARE NECESSARY FROM TIME TO TIME TO REGULATE AND GOVERN THE USE OF THE COMMON FACILITIES OR THE INTERPRETATION OF THE PROVISIONS SET FORTH HEREIN. SAID RULES AND REGULATIONS SHALL NOT BE DISCRIMINATORY. IT IS THE RESPONSIBILITY OF THE BOARD TO DRAFT SAID RULES AND REGULATIONS EACH ONE OF WHICH MUST BE APPROVED BY A MAJORITY AND THEN BE MAILED TO THE REGISTERED ADDRESS OF EACH VOTING MEMBER WITHIN THIRTY (30) DAYS OF ADOPTION.

16. OBLIGATIONS OF THE ASSOCIATION: THE ASSOCIATION IS RESPONSIBLE FOR THE MAINTENANCE OF THE COMMON FACILITIES. SNOW REMOVAL, HOWEVER, IS THE RESPONSIBILITY OF THE INDIVIDUAL OWNERS. THE SCOPE OF THESE OBLIGATIONS MAY CHANGE FROM TIME TO TIME AS THE SCOPE OF THE COMMON FACILITIES CHANGES. ALL SUCH CHANGES MUST BE APPROVED BY A MAJORITY

17. OBLIGATIONS OF THE DECLARANT: ITS IS THE RESPONSIBILITY AND EXPENSE OF THE DECLARANT TO INSTALL THE ACCESS ROAD AS A DIRT DRIVE, RECORD THE PLAT MAP AND INSTALL ELECTRIC POWER AND PHONE SERVICE. HOWEVER, THE INSTALLATION AND MAINTENANCE OF OTHER COMMON FACILITIES OR THE MAINTENANCE OF THOSE INSTALLED BY THE DECLARANT SHALL BE THE RESPONSIBILITY AND EXPENSE OF THE ASSOCIATION.

18. BOARD: THE BOARD SHALL CONSIST OF TWO OR THREE NATURAL MEMBERS, THE DIRECTORS, THEY MAY APPOINT THEMSELVES AS ONE OF THE THREE OFFICERS, THAT IS, EITHER AS PRESIDENT, SECRETARY OR TREASURER, EXCEPT FOR THE INITIAL BOARD, THE SOLE MEMBER OF WHICH SHALL BE THE DECLARANT WHO SHALL SERVE AS BOTH PRESIDENT AND TREASURER AND WHO, HEREWITH, APPOINTS TRUDY HUGHES, A CERTIFIED PUBLIC ACCOUNTANT AT PO BOX 3435, BOULDER, CO. 80307, AS SECRETARY WITHOUT DIRECTOR STATUS UNTIL HER RESIGNATION OR AN EARLIER REMOVAL. IF THERE ARE LESS THAN THREE DIRECTORS THE POSITIONS OF PRESIDENT AND TREASURER MAY BE HELD BY ONE AND THE SAME DIRECTOR. DURING THE TERM OF THE INITIAL BOARD SAID BOARD SHALL REMAIN ACTIVE, CANNOT BE REPLACED, AND ITS DECISIONS CANNOT BE OVERTURNED BY THE NON-DECLARANT MEMBERS SINCE THEIR VOTES DO NOT CONSTITUTE A MAJORITY. THEREAFTER, DIRECTORS SHALL SERVE FOR PERIODS OF TWO (2) YEARS OR UNTIL THEY RESIGN OR ARE REPLACED. THEY MAY BE RE-ELECTED WITHOUT LIMITS OR REMOVED BY A MAJORITY AT ANY TIME.

19. ELECTION OF BOARD MEMBERS AND OFFICERS: DURING THE TERM OF THE INITIAL BOARD, THE DECLARANT SHALL HAVE THE SOLE POWER TO APPOINT OR REMOVE OFFICERS. THEREAFTER, NOMINATIONS FOR THE BOARD SHALL BE MADE AT A MEETING OF THE MEMBERS CALLED FOR THAT PURPOSE AND BE MADE FROM THE FLOOR BY MEMBERS PROVIDED THAT THE CANDIDATES ARE MEMBERS IN GOOD STANDING AND HAVE GIVEN THEIR CONSENT TO SERVE IF ELECTED. IN TURN, THEY MAY APPOINT THEMSELVES AS ONE OF SAID THREE OFFICERS. ADDITIONAL OFFICERS WITHOUT DIRECTOR STATUS MAY BE APPOINTED BY THE BOARD AS NEEDED.

20. DUTIES OF THE BOARD: THE BOARD SHALL SERVE WITHOUT COMPENSATION AND PRESIDE OVER ASSOCIATION MEETINGS, COLLECT AND MANAGE THE ASSOCIATION FUNDS, EXERCISE ARCHITECTURAL CONTROL, VERIFY THAT THE AGENT RENDERS HIS SERVICES AS PROPOSED PLUS ALL OTHER FUNCTIONS THAT ARE NOT THE RESPONSIBILITY OF THE AGENT NOR THE MEMBERS. THE BOARD'S FUNCTION IS OF A SUPERVISORY AND CONTROLLING NATURE AND NEED NOT INCLUDE ANY PHYSICAL INVOLVEMENT IN THE ACTUAL INSTALLATION, AND MAINTENANCE OF THE COMMON FACILITIES. ALL DECISIONS AND ACTIONS OF THE BOARD MUST BE ACCEPTED AND RATIFIED BY AT LEAST TWO DIRECTORS EXCEPT DURING THE TERM OF THE INITIAL BOARD WHEN THE DECLARANT IS THE SOLE MEMBER OF THE BOARD. IN EITHER CASE, SUCH DECISIONS OR ACTIONS MAY NOT VIOLATE THE PROVISIONS SET FORTH HEREIN.

21. TERM OF THE INITIAL BOARD: WHEN THE TERM OF THE INITIAL BOARD EXPIRES THEN THE MEMBERS SHALL ELECT A NEW BOARD WHICH SHALL ASSUME CONTROL OF THE COMMON FACILITIES AS WELL AS THE ASSOCIATION, ITS FUNDS AND ASSETS

22. MEMBERS: WHEN NOT IN GOOD STANDING, MEMBERS SHALL HAVE THEIR VOTING RIGHTS SUSPENDED.

23. MEMBERSHIP: EVERY OWNER SHALL HAVE ONE (1) MEMBERSHIP IN THE ASSOCIATION. IT SHALL BE APPURTENANT TO AND MAY NOT BE SEPARATED FROM THE OWNERSHIP OF A LOT WHICH SHALL BE THE SOLE QUALIFICATION FOR MEMBERSHIP.

24. VOTING RIGHTS: DURING THE TERM OF THE INITIAL BOARD, ALL DECISIONS REQUIRING A MAJORITY SHALL BE MADE BY THE DECLARANT. THEREAFTER, ALL MEMBERS SHALL BE ENTITLED TO VOTE IN PERSON OR BY PROXY, WITH ONE VOTE PER LOT. CUMULATIVE VOTING SHALL NOT BE PERMITTED. PROXIES MUST BE REGISTERED BEFORE THE APPOINTED TIME OF EACH MEETING AND SHALL ONLY BE VALID FOR SAID MEETING. IF THERE IS MORE THAN ONE OWNER TO A LOT THEN THE VOTE APPURTENANT TO SAID LOT SHALL NOT BE SEVERABLE. THE NAME OF THE NATURAL PERSON TO CAST THE VOTE FOR A MEMBER SHALL BE REGISTERED AS THE VOTING MEMBER. ANY VOTING MEMBER MAY REGISTER A REPRESENTATIVE FOR THE PURPOSE OF VOTING. SAID REPRESENTATIVE MAY, BUT NEED NOT, BE A MEMBER AND HIS VOTE CEASES TO BE VALID UPON CONVEYANCE OF THE MEMBER'S LOT. A LIST OF THE NAMES AND ADDRESSES OF ALL VOTING MEMBERS AND THEIR REPRESENTATIVES SHALL BE MAINTAINED BY THE SECRETARY OF THE ASSOCIATION. IF THE VOTING RIGHTS OF A MEMBER ARE SUSPENDED THEN THE VOTE OF THAT MEMBER SHALL NOT BE CONSIDERED WHEN DETERMINING A MAJORITY.

25. VOTING RESPONSIBILITIES: MEMBERS SHALL ONLY VOTE ON THE FOLLOWING MATTERS. THEY MAY:

(1) DETERMINE THE NUMBER OF MEMBERS OF THE BOARD AND ELECT THE MEMBERS OF THE BOARD,

(2) AUTHORIZE EXPENDITURES THAT REQUIRE SPECIAL ASSESSMENTS,

(3) DETERMINE THE SCOPE OF THE COMMON FACILITIES,

(4) AUTHORIZE CHANGES TO THIS DECLARATION, OR THE ARTICLES OF INCORPORATION,

(5) AUTHORIZE CHANGES TO THE RULES AND REGULATIONS, AND

(6) TAKE ANY OTHER ACTION AS REQUIRED BY THE COLORADO NONPROFIT CORPORATION ACT, AS AMENDED.

26. VOTING PROCEDURE: ALL VOTING SHALL TAKE PLACE AT MEETINGS CALLED FOR THE STATED PURPOSE AND MAY BE BY BALLOT, SHOWING OF HANDS OR VOICE. A MAJORITY CONSTITUTES A QUORUM AND IF LESS THAN A QUORUM ARE PRESENT THEN THE MEETING MUST BE ADJOURNED AND NO BUSINESS SHALL BE TRANSACTED UNTIL THE NEXT MEETING. OTHERWISE, IF A MAJORITY AGREES THEN THE MATTER IN QUESTION IS CONSIDERED AS PASSED. IF NOT, THEN THE MATTER AT HAND IS CONSIDERED AS NOT PASSED UNLESS THERE IS MORE THAN ONE CHOICE IN WHICH CASE THE LEAST POPULAR CHOICE(S) MUST BE ELIMINATED AND THE VOTING PROCESS MUST BE REPEATED UNTIL A MAJORITY AGREES ON ONE OF THE CHOICES OR REJECTS ALL CHOICES.

27. MEETINGS: THE ASSOCIATION SHALL HOLD YEARLY MEETINGS OF THE MEMBERS AT 7:00 P.M. ON THE FIRST THURSDAY IN OCTOBER. DURING THE TERM OF THE INITIAL BOARD, NO MEETINGS NEED TAKE PLACE. THEREAFTER, SPECIAL MEETINGS OF THE MEMBERS MAY BE CALLED AT ANY TIME AS LONG AS AT LEAST FIFTY (50) PERCENT OF THE VOTING MEMBERS REQUEST SUCH A MEETING WHICH SHALL BE SCHEDULED ONCE A LIST OF THE REQUIRED SIGNATURES HAS BEEN SUBMITTED TO THE BOARD. THE TIME AND PLACE OF EACH SUCH MEETING SHALL BE DETERMINED BY THE BOARD AND WRITTEN NOTICE THEREOF SHALL BE GIVEN TO THE REGISTERED ADDRESS OF EACH VOTING MEMBER NOT LESS THAN FOURTEEN (14) NOR MORE THAN FIFTY (50) DAYS IN ADVANCE OF SAID MEETING. SAID NOTICE SHALL STATE THE TIME AND DATE OF THE MEETING AND THE PURPOSE THEREOF. THE BOARD SHALL MEET AS NECESSARY BUT AT LEAST ONCE A QUARTER.

28. ORDER OF BUSINESS: IT SHALL BE THE SAME FOR ALL MEETINGS OF THE MEMBERS OR THE BOARD AND SHALL BE ROLL CALL, READING OF LAST MEETING'S MINUTES, REPORTS OF OFFICERS, UNFINISHED AND NEW BUSINESS.

29. RECORD KEEPING: THE ASSOCIATION SHALL MAKE AVAILABLE FOR INSPECTION, UPON REQUEST, DURING NORMAL BUSINESS HOURS OR OTHER REASONABLE CIRCUMSTANCES, CURRENT COPIES OF THIS DECLARATION, THE RULES AND REGULATIONS, ARTICLES OF INCORPORATION, BOOKS, RECORDS AND FINANCIAL STATEMENTS OF THE ASSOCIATION TO ANY OWNER, FIRST MORTGAGEE OR INSURER/GUARANTOR OF A FIRST MORTGAGE.

30. ASSESSMENTS: THE DECLARANT, FOR EACH LOT OWNED WITHIN THE PROPERTY, HEREBY COVENANTS, AND EACH OWNER OF A LOT BY ACCEPTANCE OF A DEED OR OTHER CONVEYANCE THEREFOR, WHETHER OR NOT IT SHALL BE SO EXPRESSED IN ANY SUCH DEED OR OTHER CONVEYANCE, IS DEEMED TO COVENANT AND AGREE TO PAY, TO THE ASSOCIATION ANNUAL AND SPECIAL ASSESSMENTS, CHARGES FOR DAMAGES TO THE COMMON FACILITIES OR VIOLATIONS OF THIS DECLARATION. THE FIRST ANNUAL ASSESSMENT IS FOR 1996 AND SHALL BE DUE ON FEBRUARY 1, 1996. SUBSEQUENT ANNUAL ASSESSMENT ARE FOR EACH SUCCEEDING CALENDAR YEAR AND SHALL BE DUE ON FEBRUARY 1 OF EACH YEAR THEREAFTER. AS PROVIDED HEREIN, ALL ASSESSMENTS TOGETHER WITH INTEREST, LATE CHARGES AND OTHER FEES DESCRIBED HEREIN AS WELL AS COSTS OF COLLECTION AND ATTORNEY FEES, SHALL BE A CHARGE ON THE LAND AND A CONTINUING LIEN UPON THE LOT AGAINST WHICH EACH SUCH ASSESSMENT IS MADE AS WELL AS A PERSONAL OBLIGATION OF THE PERSON WHO WAS OWNER OF SAID LOT AT THE TIME WHEN SAID ASSESSMENT BECAME DUE. THE GRANTEE OF A LOT SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE GRANTOR FOR ALL ASSESSMENTS AGAINST THE LATTER UP TO THE TIME OF THE GRANT OR CONVEYANCE. NO OWNER MAY THROUGH NON-USE OF A COMMON FACILITY OR ABANDONMENT OF A LOT AVOID THE BURDENS AND OBLIGATIONS IMPOSED ON AN OWNER BY THIS DECLARATION, INCLUDING ANY ASSESSMENTS DUE. ALL ASSESSMENTS MUST BE LEVIED AT A UNIFORM RATE FOR ALL LOTS WHETHER THEY ARE IMPROVED OR NOT. ALL PROPERTY DEDICATED TO AND ACCEPTED BY A LOCAL PUBLIC AUTHORITY SHALL BE EXEMPT FROM ANY ASSESSMENTS DESCRIBED HEREIN.

31. SPECIAL ASSESSMENTS: FROM TIME TO TIME, A SPECIAL ASSESSMENT MAY BE REQUIRED TO PAY FOR THE INSTALLATION OR IMPROVEMENT OF COMMON FACILITIES. ALL EXPENDITURES REQUIRING A SPECIAL ASSESSMENT MUST BE APPROVED BY A MAJORITY UNLESS EXPLICITLY STATED OTHERWISE HEREIN.

32. ASSESSMENT AMOUNT: THE AMOUNT OF ALL ASSESSMENTS SHALL BE DETERMINED BY THE BOARD. EACH OWNER SHALL BE GIVEN WRITTEN NOTICE THEREOF TO THE REGISTERED ADDRESS OF EACH VOTING MEMBER AT LEAST THIRTY (30) DAYS IN ADVANCE OF THE DUE DATE. THE AMOUNT OF THE FIRST YEARLY ASSESSMENT SHALL BE ONE-HUNDRED-FORTY DOLLARS ($140.00). IT SHALL BE INCREASED OR DECREASED FOR SUBSEQUENT YEARS AS THE BOARD SEES FIT BUT NOT MORE THAN TEN (10) PERCENT FROM ONE YEAR TO THE NEXT. ALL AMOUNTS DUE FROM AN OWNER SHALL BE THE PERSONAL AND INDIVIDUAL DEBT OF SAID OWNER. SUIT TO RECOVER A MONEY JUDGMENT FOR AMOUNTS DUE SHALL BE MAINTAINABLE WITHOUT FORECLOSING OR WAIVING THE LIEN SECURING THE SAME. THE BOARD SHALL SEND MONTHLY WRITTEN NOTICES TO ALL OWNERS WITH DELINQUENT PAYMENTS DUE TO THE ASSOCIATION TO THE REGISTERED ADDRESS OF THE VOTING MEMBER. A HANDLING FEE OF TWENTY DOLLARS ($20.00) PLUS INFLATION MAY, BUT NEED NOT, BE CHARGED TO SAID OWNERS FOR EACH SUCH NOTICE. SUCH A NOTICES MAY ALSO BE REQUESTED BY ANY OTHER PARTY INTERESTED IN SUCH A NOTICE AND SHALL BE SENT TO SAID PARTY WITHIN TEN (10) DAYS OF RECEIPT OF PAYMENT OF SAID TWENTY DOLLAR ($20.00) FEE. ANNUAL ASSESSMENTS SHALL BE PRORATED ON TRANSFER OF A LOT.

33. PURPOSE OF ASSESSMENTS: THE ASSESSMENTS LEVIED BY THE ASSOCIATION SHALL BE USED EXCLUSIVELY FOR PROMOTING THE SAFETY, HEALTH, AND WELFARE OF THE RESIDENTS OF THE PROPERTY, AND IN PARTICULAR, FOR THE SERVICES AND FACILITIES DEVOTED TO THIS PURPOSE AND RELATED TO THE USE AND ENJOYMENT OF THE COMMON FACILITIES.

34. RANCH LEASE AND INCOME: INCOME FROM RANCH ACTIVITIES ON THE PASTURE SHALL BE CONSIDERED INCOME OF THE DECLARANT DURING THE TERM OF THE INITIAL BOARD AND THE ASSOCIATION THEREAFTER. THE BOARD SHALL REPRESENT ALL OWNERS IN REGARDS TO THE LEASING OF THE PASTURE AND NO OWNER SHALL INTERFERE THEREWITH. ALL LOTS SHALL BE HELD, SOLD AND CONVEYED SUBJECT TO SAID LEASE WHETHER OR NOT IT HAS BEEN SO EXPRESSED IN ANY DEED OR OTHER CONVEYANCE.

35. ASSOCIATION FUNDS: THE FUNDS HELD BY THE ASSOCIATION SHALL BE DEPOSITED IN AN INTEREST BEARING ACCOUNT AND HELD AS CASH THEREIN. CHECKS DRAWN ON SAID ACCOUNT MUST BE SIGNED BY TWO OFFICER EXCEPT DURING THE TERM OF THE INITIAL BOARD WHEN ONLY THE DECLARANT'S SIGNATURE SHALL BE REQUIRED. THE ASSOCIATION SHALL NOT BE REQUIRED TO SPEND ALL THE SUMS COLLECTED FOR ONE YEAR DURING THE SAME YEAR. EXCESS FUNDS SHALL BE KEPT AS RESERVES FOR MAJOR EXPENDITURES.

36. DELINQUENCY: ANY ASSESSMENT OR ANY OTHER AMOUNT DUE FROM AN OWNER AS PROVIDED HEREIN WHICH IS NOT PAID WHEN DUE SHALL BE DELINQUENT. WITH RESPECT TO EACH AMOUNT NOT PAID WITHIN THIRTY (30) DAYS AFTER ITS DUE DATE, THE ASSOCIATION MAY, AT ITS OPTION, REQUIRE THE OWNER TO PAY A LATE CHARGE IN THE AMOUNT OF FIFTY DOLLARS ($50.00) PLUS INFLATION OR TEN (10) PERCENT OF THE AMOUNT DUE, WHICHEVER IS GREATER, REGARDLESS OF THE NUMBER OF INDIVIDUAL AMOUNTS DUE. IF ANY AMOUNT DUE, INCLUDING ITS LATE CHARGE, IS NOT PAID WITHIN THIRTY (30) DAYS AFTER THE DATE OF DELINQUENCY, THEN SAID AMOUNT AND ITS LATE CHARGE SHALL BEAR INTEREST FROM THE DATE OF DELINQUENCY AT THE RATE OF EIGHTEEN (18) PERCENT PER ANNUM.

37. LIEN: ALL DELINQUENT AMOUNTS SHALL CONSTITUTE A LIEN AGAINST THE LOT OF THE DELINQUENT OWNER. UPON RECORDING OF NOTICE THEREOF BY THE ASSOCIATION SUCH A LIEN SHALL BE CONSTITUTED UPON SAID OWNER'S INTEREST IN SAID LOT TOGETHER WITH SAID OWNER'S INTEREST IN THE COMMON FACILITIES PRIOR TO ALL OTHER LIENS, EXEMPTIONS AND ENCUMBRANCES, EXCEPTING ONLY TAXES AND SPECIAL ASSESSMENTS LEVIED BY A POLITICAL OR MUNICIPAL ENTITY AS WELL AS ANY PRIOR FIRST MORTGAGE AND FIRST DEED OF TRUST AND ITS RELATED OBLIGATORY PAYMENTS. EACH OWNER OF A LOT BY ACCEPTANCE OF A DEED OR OTHER CONVEYANCE THEREFOR, WHETHER OR NOT IT SHALL BE SO EXPRESSED IN ANY SUCH DEED OR OTHER CONVEYANCE, IS DEEMED TO HAVE WAIVED THE COLORADO HOMESTEAD EXEMPTION AND ANY OTHER SIMILAR EXEMPTION NOW OR HEREAFTER PROVIDED BY STATE OR FEDERAL LAW. SUCH A LIEN MAY BE ENFORCED BY FORECLOSURE OF SAID LOT IN LIKE MANNER AS MORTGAGES ON REAL PROPERTY AND SAID OWNER SHALL BE REQUIRED TO PAY ALL THE COSTS AND EXPENSES OF SUCH PROCEEDINGS PLUS ALL OTHER AMOUNTS THAT COME DUE DURING THE PERIOD OF FORECLOSURE AND THE ASSOCIATION SHALL BE ENTITLED TO THE APPOINTMENT OF A RECEIVER TO COLLECT SAID AMOUNTS. ANY LOTS ACQUIRED BY THE ASSOCIATION BY MEANS OF FORECLOSURE OR OTHER COLLECTION PROCEDURES SHALL BE SOLD AS SOON AS POSSIBLE TO THE HIGHEST BIDDER. PROCEEDS FROM SUCH A SALE SHALL BE USED AS THE BOARD SEES FIT.

38. AGENT: THE ASSOCIATION SHALL BE REPRESENTED BY A PROPERLY DESIGNATED AGENT. ANY PERSON SELECTED AS AGENT OR ANY PART THEREOF MAY, BUT NEED NOT, BE A MEMBER. THE PRESIDENT MUST ACT AS INTERIM AGENT IF NO QUALIFIED AGENT CAN BE FOUND. ALL AGENTS MUST BE SELECTED BY THE BOARD AND MAY BE REPLACED AT ANY TIME. NO ONE SHALL ACT AS AGENT UNLESS AUTHORIZED BY THE BOARD.

39. INITIAL AGENT: THE DECLARANT SHALL BE THE FIRST AGENT FOR THE ASSOCIATION AND NEED NOT BE COMPENSATED FOR HIS TIME SPENT ACTING AS AGENT. HOWEVER, CONTRACTED SERVICES, MATERIALS AND EQUIPMENT SHALL BE PAID FOR BY THE ASSOCIATION. NEITHER THE ASSOCIATION NOR ANY OWNER SHALL INTERFERE WITH OR MAKE ANY DEMANDS ON THE INITIAL AGENT AS LONG AS THE PROVISIONS SET FORTH HEREIN ARE NOT VIOLATED. THE DECLARANT MAY, BUT NEED NOT, RESIGN AS INITIAL AGENT ONCE THE NON-DECLARANT MEMBERS CONSTITUTE A MAJORITY.

40. DUTIES OF AGENT: THE AGENT SHALL PERFORM OR CAUSE TO PERFORM THE ACTUAL TASKS REQUIRED FOR THE INSTALLATION AND MAINTENANCE OF THE COMMON FACILITIES. IT IS THE FUNCTION OF THE AGENT TO FREE THE ASSOCIATION FROM ANY PHYSICAL INVOLVEMENT IN THE ROUTINE TASKS OF THE INSTALLATION AND MAINTENANCE OF THE COMMON FACILITIES. IT IS THE RESPONSIBILITY OF THE AGENT TO DETERMINE HOW TO BEST EXECUTE SAID ACTUAL TASKS AND NEITHER THE ASSOCIATION NOR ANY OWNER SHALL INTERFERE UNLESS IT BECOMES EVIDENT THAT THE AGENT IS NOT ACTING IN THE BEST INTEREST OF THE ASSOCIATION IN WHICH CASE THE AGENT MUST COMPLY WITH THE ASSOCIATION'S REQUESTS OR A NEW AGENT SHALL BE SELECTED. THE BOARD SHALL HAVE SOLE AUTHORITY IN RATING THE PERFORMANCE OF THE AGENT.

41. SELECTION OF AGENT: WHENEVER AN AGENT IS TO BE SELECTED, PROSPECTIVE AGENTS ARE INVITED BY THE BOARD TO SUBMIT WRITTEN BIDS DETAILING THE TASKS AND COMPENSATION REQUIRED FOR A SPECIFIC JOB, INCLUDING LABOR, MATERIALS AND EQUIPMENT COSTS. SAID BIDS SHALL BE BASED ON AN ACCURATE DESCRIPTION OF THE EXPECTED DUTIES OF THE AGENT PREPARED BY THE BOARD. NEXT, THE BOARD SELECTS THE AGENT MOST SUITED AND EFFECTIVE FOR THE JOB. THE BOARD MAY, BUT NEED NOT, RECEIVE MORE THAN ONE (1) BID IN ORDER TO SELECT AN AGENT.

42. COMPENSATION OF AGENT: ONCE AN AGENT HAS BEEN SELECTED, THE AGREED UPON COMPENSATION SHALL ONLY BE PAID FOR COMPLETED WORK. THE AGENT MAY CONTINUE TO RENDER SERVICES UNDER THE SAME CONDITIONS FOR REPETITIVE TASKS WITHOUT HAVING TO SUBMIT A NEW BID. THE AGENT SHALL BE PAID AS AN INDEPENDENT CONTRACTOR.

43. SUBCONTRACTORS: THE AGENT MAY HIRE OWNERS AS WELL AS ANY OTHER PERSON AND/OR LEGAL ENTITY AS INDEPENDENT CONTRACTORS TO RENDER SERVICES AS ALONG AS THE AGENT PAYS FOR SAID SERVICES.

44. SERVICES TO OWNERS: THE AGENT MAY CONTRACT WITH AND BE PAID BY INDIVIDUAL OWNERS FOR ANY TASK WHATSOEVER WITHOUT BEING IN CONFLICT OF INTEREST WITH THE ASSOCIATION.

45. COMMON FACILITIES: THEY ARE ONLY TO BE USED BY OWNERS OR LICENSEES BUT NOT BY THE GENERAL PUBLIC. IF THE ASSOCIATION MAKES PERMANENT IMPROVEMENTS WITHIN THE COMMON FACILITIES, SUCH AS INSTALLING BENCHES, TRAILS OR PONDS, THEN SAID IMPROVEMENTS ARE OWNED BY THE OWNER OF THE LOT UPON WHICH SAID IMPROVEMENTS HAVE BEEN MADE. THE ASSOCIATION SHALL MAINTAIN SAID IMPROVEMENTS AND SAID OWNER CANNOT INTERFERE WITH THE INSTALLATION, MAINTENANCE OR USE OF SAID IMPROVEMENTS AND MUST ABIDE BY THE PROVISIONS SET FORTH HEREIN AND IN THE EASEMENTS DEFINING THE COMMON FACILITIES WITHIN WHICH SAID IMPROVEMENTS HAVE BEEN MADE. AN UPDATED LIST OF ALL COMMON FACILITIES SHALL BE MAINTAINED BY THE SECRETARY OF THE ASSOCIATION. CURRENTLY, THEY INCLUDE THE FOLLOWING:

(1) THE ACCESS ROAD (GENERALLY A SIXTY (60) FOOT WIDE EASEMENT),

(2) THE UTILITIES (GENERALLY A TWELVE (12) FOOT WIDE EASEMENT),

(3) THE PASTURE (AN EASEMENT OVER ABOUT EIGHTY-EIGHT (88) PERCENT OF THE PROPERTY),

(4) THE TRASH COLLECTION AND MAIL BOX EASEMENT (200 FEET BY 200 FEET)

(5) THE GATE AND WORK AREA EASEMENTS (GENERALLY 200 FEET BY 200 FEET)

(6) ALL RANCH STRUCTURES ON THE PASTURE,

(7) ALL GATES, CATTLE GUARDS AND FENCES ALONG THE PASTURE BOUNDARIES, AND

(8) ALL WATER RIGHTS INCLUDING ALL PONDS WITHIN THE PASTURE.

46. ACCESS ROAD: ITS INSTALLATION AS A PRIVATE DIRT DRIVE SHALL BE THE RESPONSIBILITY AND EXPENSE OF THE DECLARANT. ITS MAINTENANCE, HOWEVER, SHALL BE THE RESPONSIBILITY AND EXPENSE OF THE ASSOCIATION. IT MAY INCLUDE ROADS THAT ARE NOT INTERCONNECTED. THE GATES OR CHAINS INSTALLED AT ITS INTERSECTIONS WITH PUBLIC ROADS SHALL BE KEPT CLOSED AT ALL TIMES.

47. DRIVEWAYS: THEY ARE NOT CONSIDERED COMMON FACILITIES AND ARE THE RESPONSIBILITY OF THE OWNERS UNLESS EXPLICIT AND WRITTEN AGREEMENTS TO THE CONTRARY HAVE BEEN MADE WITH THE ASSOCIATION.

48. SNOW REMOVAL: THE REMOVAL OF SNOW FROM THE ACCESS ROAD IS THE RESPONSIBILITY OF THE OWNERS USING SAID ACCESS ROAD UNLESS THE ASSOCIATION ELECTS TO DO SO FOR THE OWNERS.

49. UTILITIES: ALL UTILITIES SHALL BE UNDERGROUND. THE INSTALLATION OF ELECTRIC POWER AND PHONE SERVICE SHALL BE THE RESPONSIBILITY AND EXPENSE OF THE DECLARANT AND BE CARRIED OUT BY THE RESPECTIVE UTILITY COMPANY AND MAINTAINED THEREAFTER BY SAID COMPANY AT THEIR EXPENSE.

50. CREEKS AND PONDS: ALL WATER RIGHTS APPURTENANT TO THE PROPERTY, IF ANY, SHALL BELONG TO THE ASSOCIATION. OWNERS MAY CONTRACT WITH THE ASSOCIATION FOR USE OF SAID WATER RIGHTS ON A YEARLY BASIS. DITCHES TO BE USED IN CONJUNCTION WITH SAID WATER RIGHTS MUST BE ALLOWED TO RUN THROUGH BUILDING ENVELOPES. THE DECLARANT, FOR EACH LOT OWNED WITHIN THE PROPERTY, HEREBY COVENANTS, AND EACH OWNER OF A LOT BY ACCEPTANCE OF A DEED OR OTHER CONVEYANCE THEREFOR, WHETHER OR NOT IT SHALL BE SO EXPRESSED IN ANY SUCH DEED OR OTHER CONVEYANCE, IS DEEMED TO COVENANT AND AGREE TO GRANT TO THE ASSOCIATION THE NECESSARY EASEMENTS AS LAID OUT BY THE BOARD TO INSTALL DITCHES AND PONDS AS PERMITTED BY STATE LAW. PONDS MAY ONLY BE USED BY OWNERS FOR FISHING AND NON-MOTORIZED BOATING.

51. ARCHITECTURAL CONTROL: NO BUILDING SHALL BE ERECTED, PLACED, OR ALTERED ON ANY PART OF THE PROPERTY UNTIL THE CONSTRUCTION PLANS AND SPECIFICATIONS AS WELL AS A PLAN SHOWING THE LOCATION OF THE BUILDING HAVE BEEN APPROVED BY THE BOARD AS TO QUALITY OF WORKMANSHIP, QUALITY AND TYPE OF EXTERIOR MATERIALS, HARMONY OF DESIGN WITH EXISTING STRUCTURES AND ENVIRONMENT, AND LOCATION WITH RESPECT TO TOPOGRAPHY AND FINISHED GRADE ELEVATIONS AS WELL AS THE LOCATION AND TYPE OF EXTERIOR LIGHTING, ANTENNAS AND FENCING. THE BOARD'S APPROVAL MAY ONLY BE GIVEN IN WRITING AND SHALL NOT BE WITHHELD WITHOUT ANY REASONABLE CAUSE. IN THE EVENT THAT THE BOARD FAILS TO APPROVE OR DISAPPROVE A SET OF PLANS AND SPECIFICATIONS WITHIN THREE (3) WEEKS AFTER SAID PLANS AND SPECIFICATIONS HAVE BEEN SUBMITTED TO THE BOARD OR, IN ANY EVENT, IF NO SUIT TO ENJOIN THE CONSTRUCTION HAS BEEN COMMENCED PRIOR TO THE COMPLETION THEREOF, APPROVAL SHALL NOT BE REQUIRED AND THE RELATED COVENANTS SHALL BE DEEMED TO HAVE BEEN FULLY COMPLIED WITH. CONSTRUCTION OF ANY NEW STRUCTURES OR ALTERATIONS TO ANY EXISTING STRUCTURES ON THE PROPERTY MUST BE COMPLETED WITHIN ONE (1) YEAR FROM BREAKING GROUND OR COMMENCING CONSTRUCTION. THE BOARD MUST KEEP SAID PLANS AND SPECIFICATIONS FOR AT LEAST FIVE (5) YEARS AFTER CONSTRUCTION HAS BEEN COMPLETED.

52. BUILDING TYPE: NO STRUCTURE SHALL BE ERECTED, PLACED OR PERMITTED TO REMAIN ON THE PROPERTY OTHER THAN NEWLY CONSTRUCTED DETACHED, SINGLE FAMILY DWELLINGS NOT TO EXCEED THE CUSTER COUNTY BUILDING HEIGHT RESTRICTION OR TWENTY-FIVE (25) FROM THE LOWEST GROUND AROUND THE HOUSE TO THE HIGHEST POINT ON THE ROOF EXCLUDING CHIMNEYS, WHICHEVER IS LESS. SAID DWELLING MAY INCLUDE ONE PRIVATE ATTACHED OR DETACHED GARAGE FOR THE USE OF ITS RESIDENTS AND OTHER OUT-BUILDINGS NORMALLY USED IN CONJUNCTION WITH COUNTRY, RANCH OR ESTATE LIVING. ALL STRUCTURES MUST BE APPROVED BY THE BOARD BEFORE BEING ERECTED OR PLACED ON THE PROPERTY. GUEST AND/OR SERVANT'S QUARTERS, DETACHED OR ATTACHED, ARE NOT CONSIDERED SEPARATE DWELLING UNITS AS LONG AS SAID QUARTERS ARE PERMITTED UNDER THE APPLICABLE CUSTER COUNTY LAND USE, ZONING AND SUBDIVISION REGULATIONS. PROPANE TANKS AND OTHER UTILITY STRUCTURES SUCH AS FUEL TANKS, HOT-TUBS, COOLING/HEATING EQUIPMENT AND CISTERNS MUST BE ENCLOSED IN A FENCE LIKE STRUCTURE SO THAT THEY ARE NOT DIRECTLY VISIBLE.

53. DWELLING SIZE: NO DWELLING SHALL BE ERECTED, PLACED, ALTERED OR PERMITTED TO REMAIN ON ANY PART OF THE PROPERTY UNLESS THE FINISHED LIVING AREA THEREOF, EXCLUSIVE OF OPEN PORCHES, BASEMENTS AND GARAGES, SHALL BE NO LESS THAN ONE-THOUSAND (1,000) SQUARE FEET AND NO LARGER THAN FOUR-THOUSAND (4,000) SQUARE FEET. UTILITY STRUCTURES MAY BE PLACED ON A LOT BEFORE THE RESIDENCE IS CONSTRUCTED, THEY MUST, HOWEVER, HAVE AN APPEARANCE COMPATIBLE WITH RESIDENTIAL STRUCTURES.

54. BUILDING LOCATION: NO BUILDING SHALL BE LOCATED ON ANY PART OF A LOT NEARER THAN FIFTY (50) FEET TO A LOT BOUNDARY. FOR THE PURPOSE SET FORTH IN THIS SECTION, EAVES, STEPS AND OPEN PORCHES (NOT ROOFED) SHALL NOT BE CONSIDERED AS A PART OF A BUILDING UNLESS SUCH STRUCTURE WOULD CREATE AN ENCROACHMENT ACROSS SUCH A BOUNDARY. THE BOARD MAY REQUIRE AND ENFORCE MORE RESTRICTIVE SETBACK REQUIREMENTS IN ORDER TO ENHANCE THE VIEW OF ADJACENT OWNERS OR TO OTHERWISE ENHANCE THE BEAUTY AND HARMONY OF THE PROPERTY.

55. ROOFING AND SIDING: ROOFING AND SIDING MATERIALS MUST MEET OR PREFERABLY EXCEED CUSTER COUNTY FIRE RESISTANCE STANDARDS APPLICABLE FOR AREAS ALONG THE SANGRE DE CRISTO MOUNTAINS. THEY MUST BE COMPLEMENTARY TO THE PARTICULAR SURROUNDINGS AND BE CONSISTENT AMONG ALL BUILDINGS COMPRISING A RESIDENCE. IT IS THE BOARD'S RESPONSIBILITY, THROUGH ITS ARCHITECTURAL CONTROL PROCESS, TO MAKE SURE THAT THE APPROPRIATE ROOFING AND SIDING MATERIALS ARE USED.

56. LANDSCAPING AND SWIMMING POOLS: ALL TERRAIN AROUND A RESIDENCE MUST REMAIN IN AS NATURAL A STATE AS POSSIBLE. LAWNS AND OTHER WATER INTENSIVE VEGETATION AS WELL AS SWIMMING POOLS MAY ONLY BE INSTALLED AS REGULATED BY THE WELL PERMIT. ALL LANDSCAPING AROUND A RESIDENCE MUST BE COMPLETED WITHIN ONE (1) YEAR OF COMPLETING ITS CONSTRUCTION. DAMAGES MADE TO LANDSCAPING DUE TO ALTERATIONS MADE ON A RESIDENCE MUST BE REPAIRED WITHIN SIX (6) MONTHS OF COMPLETING SAID ALTERATIONS.

57. VARIANCES: REASONABLE VARIANCES TO THE ARCHITECTURAL PROVISIONS STATED HEREIN MAY, BUT NEED NOT, BE GRANTED BY THE BOARD. SUCH VARIANCES MUST BE OBTAINED IN WRITING AND KEPT, ALONG WITH THE RELATED PLANS AND SPECIFICATIONS, FOR AT LEAST FIVE (5) YEARS AFTER CONSTRUCTION HAS BEEN COMPLETED. THE BOARD SHALL ALSO KEEP COPIES OF SAID VARIANCES FOR THE SAME PERIOD OF TIME.

58. DAMAGES DUE TO CONSTRUCTION: THE OWNER OF A LOT ON WHICH IMPROVEMENTS ARE MADE IS RESPONSIBLE FOR ALL DAMAGES TO THE PROPERTY OR THE COMMON FACILITIES CAUSED BY THE ACTIVITIES RELATED TO SAID IMPROVEMENTS AND IS FULLY AND PERSONALLY LIABLE FOR THE REQUIRED REPAIRS. VIOLATIONS UNDER THIS SECTION WILL BE PUNISHED WITH A MINIMUM FINE OF FIVE-HUNDRED DOLLARS ($500.00) PLUS INFLATION IN ADDITION TO THE POTENTIAL COSTS REPAIRING THE DAMAGES.

59. TEMPORARY STRUCTURES: NO STRUCTURE OF A TEMPORARY CHARACTER, SUCH AS A TRAILER, BASEMENT, TENT, SHACK, BARN OR OTHER OUT-BUILDING, SHALL BE USED ON ANY PART OF THE PROPERTY AT ANY TIME AS A TEMPORARY OR PERMANENT RESIDENCE EXCEPT FOR A REASONABLE PERIOD OF TIME DURING THE CONSTRUCTION OF A RESIDENCE OR COMMON FACILITY.

60. CABLES AND PIPES: ALL UTILITIES FROM UTILITY EASEMENTS TO A RESIDENCE OR ANY OTHER STRUCTURE MUST BE INSTALLED UNDERGROUND. OTHER UTILITIES, SUCH AS PROPANE, IRRIGATION, WATER AND SEWER PIPES, AS WELL AS EXTERIOR LIGHTING, SATELLITE DISH AND ANTENNA CABLES MUST ALSO BE INSTALLED UNDERGROUND.

61. SIGNS AND MAILBOXES: NO SIGN OF ANY KIND SHALL BE DISPLAYED TO THE PUBLIC VIEW ON ANY PART OF THE PROPERTY EXCEPT ONE PROFESSIONAL SIGN PER RESIDENCE PLUS ONE SIGN ADVERTISING A RESIDENCE FOR SALE OR RENT, BOTH OF NOT MORE THAN FIVE (5) SQUARE FEET IN SIZE. THE FORMER MUST BE APPROVED BY THE BOARD BEFORE IT IS INSTALLED WHILE THE LATTER IS OF A TEMPORARY NATURE AND NEED NOT BE APPROVED. DURING THE TERM OF THE INITIAL BOARD, THE DECLARANT IS PERMITTED TO ERECT AND MAINTAIN A SIGN THAT IS UP TO SIXTEEN (16) SQUARE FEET IN SIZE ADVERTISING LOTS FOR SALE. THE PLACEMENT OF MAILBOXES MUST ALSO BE APPROVED BY THE BOARD. IF ALL MAILBOXES ON THE PROPERTY ARE TO BE LOCATED AT THE SAME PLACE THEN IT SHALL BE THE RESPONSIBILITY AND EXPENSE OF THE ASSOCIATION TO ERECT AND MAINTAIN A STRUCTURE ADEQUATE TO HOLD ALL MAILBOXES.

62. PARKING: ALL VEHICLES BELONGING TO RESIDENTS OF THE PROPERTY MUST BE PARKED INSIDE GARAGES. OTHER VEHICLES MAY NOT REMAIN PARKED IN THE OPEN FOR LONGER THAN ONE (1) WEEK. NO VEHICLE MAY BE PARKED ON COMMON FACILITIES EXCEPT AS REQUIRED DURING CONSTRUCTION. CAMPERS, TRAILERS, BOATS, AIRCRAFT AND ANY OTHER MOBILE EQUIPMENT SHALL BE CONSIDERED A VEHICLE WHETHER IN WORKABLE OR UNWORKABLE CONDITION. ALL OWNERS, BY VIRTUE OF BEING AN OWNER, HEREWITH GIVE THE APPROPRIATE PERMISSIONS TO THE ASSOCIATION SO THAT ITS REPRESENTATIVES CAN HAVE ANY VIOLATING VEHICLE TOWED OFF THE PROPERTY AT THE EXPENSE OF THE OWNER OF THE VEHICLE.

63. STORAGE OF MATERIALS AND MACHINERY: EXCEPT FOR A REASONABLE PERIOD OF TIME DURING CONSTRUCTION, NO MATERIALS, EQUIPMENT OR MACHINERY OF ANY SORT MAY BE STORED IN THE OPEN ON THE PROPERTY UNLESS A SOLID WOOD FENCE OR EARTH DAM IS BUILT AROUND SUCH A STORAGE AREA COMPLETELY HIDING SUCH MATERIALS, EQUIPMENT OR MACHINERY FROM VIEW.

64. DESTROYED IMPROVEMENTS: IF A STRUCTURE OR ANY OTHER IMPROVEMENT ON THE PROPERTY IS DESTROYED FOR ANY REASON WHATSOEVER THEN IT MUST BE REPAIRED OR ITS REMAINS REMOVED FROM THE PROPERTY WITHIN SIX (6) MONTHS OF SAID DESTRUCTION.

65. SHARED IMPROVEMENTS: INDIVIDUAL OWNERS MAY INSTALL AND MAINTAIN SHARED IMPROVEMENTS THAT ARE NOT CONTROLLED BY THE ASSOCIATION NOR MADE AVAILABLE TO ALL OWNERS WITHIN THE PROPERTY.

66. FLOOD PROTECTION: ALL STRUCTURES ERECTED ON THE PROPERTY SHALL BE PLACED IN SUCH A MANNER THAT SEASONAL CREEKS CANNOT FLOOD THEM. HOWEVER, SAID CREEKS MAY NOT BE DIVERTED AND NO ALTERATIONS WHATSOEVER MAY BE MADE TO CREEK BEDS. THE BOARD RESERVES THE RIGHT TO REQUEST THE INSTALLATION OF BERMS AND/OR OTHER FLOOD CONTROL MEASURES AT THE OWNER'S EXPENSE. NON-COMPLIANCE UNDER THIS SECTION WILL BE PUNISHED WITH A MINIMUM FINE OF FIVE-HUNDRED DOLLARS ($500.00) PLUS INFLATION IN ADDITION TO THE POTENTIAL COSTS OF REPAIRING FLOOD DAMAGES.

67. DRAINAGE: EACH OWNER IS RESPONSIBLE FOR DAMAGES CAUSED BY DRAINAGE DUE TO ALTERATIONS MADE TO THE TOPOGRAPHY OR VEGETATION ON HIS LOT. EACH OWNER MUST CONSIDER EXISTING DRAINAGE PATTERNS DUE TO RUNOFF VIA CULVERTS, DITCHES AND CREEKS AND MAY NOT ALTER SAID PATTERNS WITHOUT WRITTEN PERMISSION FROM THE BOARD. WHILE THE ROADS REMAIN UNPAVED SUCH RUNOFF CAN CARRY SOIL ONTO A LOT AND AN OWNER CANNOT REQUEST THAT SUCH RUNOFF PATTERNS BE ALTERED TO ACCOMMODATE HIM. IT IS HIS RESPONSIBILITY AND EXPENSE TO MINIMIZE DAMAGES CAUSED TO HIS LOT BY SUCH RUNOFF. IF NEW CULVERTS AND/OR DITCHES ARE INSTALLED BY THE ASSOCIATION CREATING NEW RUNOFF PATTERNS THEN THE ASSOCIATION SHALL INSTALL THEM IN COOPERATION WITH THE AFFECTED OWNER TO MINIMIZE POTENTIAL DAMAGES THAT COULD BE CAUSED BY SAID NEWLY CREATED RUNOFF PATTERNS. HOWEVER, IT REMAINS THE OWNER'S RESPONSIBILITY AND EXPENSE TO MINIMIZE DAMAGES CAUSED TO HIS LOT BY SUCH NEW RUNOFF.

68. WATER AND SANITATION: OUTHOUSES ARE PROHIBITED. CHEMICAL TOILETS MAY ONLY BE USED FOR A REASONABLE PERIOD OF TIME DURING CONSTRUCTION. POTABLE WATER SHALL BE SUPPLIED BY A WELL AS REGULATED BY THE STATE OF COLORADO. SEWAGE DISPOSAL SHALL BE TREATED BY A SEPTIC SYSTEM AS REGULATED BY CUSTER COUNTY. EACH OWNER IS RESPONSIBLE FOR CONTROLLING SEPTIC SYSTEM EFFLUENTS WITH RESPECT TO ODOR, VOLUME, EROSION, ETC. WELLS AND SEPTIC SYSTEMS SHALL BE LOCATED WITHIN THE BUILDING ENVELOPES. WRITTEN PERMISSION MUST BE OBTAINED FROM THE BOARD TO LOCATE THEM WITHIN THE PASTURE. DAMAGES TO WELLS OR SEPTIC SYSTEMS PLACED WITHIN THE PASTURE REMAIN THE RESPONSIBILITY AND EXPENSE OF THE OWNER NO MATTER WHAT THE CAUSE. NO CHEMICALS OR PETROLEUM PRODUCTS SHALL BE ALLOWED TO DRAIN OFF OR SEEP INTO THE GROUND ON THE PROPERTY. HOWEVER, THE APPLICATION OF CUSTOMARY INSECT, ANIMAL OR PLANT CONTROL SUBSTANCES, FERTILIZERS AND PLANT FOODS ARE PERMITTED IN NORMAL QUANTITIES.

69. LAND USE: NO PART OF THE PROPERTY SHALL BE OCCUPIED OR USED BY ANYBODY FOR OTHER THAN RESIDENTIAL OR RANCH PURPOSES. THERE MAY NEVER BE MORE THAN ONE DWELLING UNIT PER LOT EVEN IF PERMITTED BY COLORADO STATE LAW AND/OR THE CUSTER COUNTY LAND USE, ZONING AND SUBDIVISION REGULATIONS. HOWEVER, THE FOUR RANCH LOTS ARE EXEMPT FROM THE LAND USE RESTRICTIONS SET FORTH HEREIN TO THE EXTENT DESCRIBED IN SECTION FOUR (4). ANY TWO OR MORE LOTS MAY ADJUST THEIR BOUNDARIES AS THEIR OWNERS SEE FIT AND AS PERMITTED BY COLORADO STATE LAW AND THE CUSTER COUNTY LAND USE, ZONING AND SUBDIVISION REGULATIONS.

70. SUBDIVISION: NO LOT MAY BE SUBDIVIDED TO A SIZE SMALLER THAN THIRTY-FIVE (35) ACRES EVEN IF PERMITTED BY COLORADO STATE LAW AND/OR THE CUSTER COUNTY LAND USE, ZONING AND SUBDIVISION REGULATIONS.

71. NUISANCES: NO NOXIOUS OR OFFENSIVE ACTIVITY SHALL BE CARRIED ON UPON THE PROPERTY, NOR SHALL ANYTHING BE DONE THEREON WHICH MAY BE OR MAY BECOME AN ANNOYANCE OR NUISANCE TO THE NEIGHBORHOOD IN ANY FORM WHATSOEVER. THE USE OF A LOT BY A CHURCH OR ANY OTHER ORGANIZATION SHALL NOT BE PERMITTED. NO AIRCRAFT OF ANY NATURE SHALL BE PERMITTED TO LAND ON OR TAKE OFF FROM THE PROPERTY. ANY VIOLATIONS UNDER THIS SECTION WILL BE PUNISHED WITH A MINIMUM FINE OF TWO-HUNDRED DOLLARS ($200.00) PLUS INFLATION.

72. DOMESTIC ANIMALS: NO ANIMALS, INSECTS, LIVESTOCK OR POULTRY OF ANY KIND SHALL BE RAISED, BRED, KEPT OR BROUGHT ON ANY PART OF THE PROPERTY EXCEPT FOR PETS THAT ARE KEPT INSIDE BUILDING ENVELOPES OR AS SET FORTH IN SECTIONS FOUR (4) AND FIVE (5). PETS THAT ARE BROUGHT ONTO THE PASTURE MUST BE KEPT ON A LEASH. OWNERS MAY CONTRACT WITH THE ASSOCIATION OR THE RANCHER FOR BOARDING HORSES OR OTHER ANIMALS ON THE PASTURE. HORSEBACK RIDING IS PERMITTED ON ANY OF THE COMMON FACILITIES.

73. WILDLIFE, FLOWERS AND WEED CONTROL: EXCEPT IN SELF-DEFENSE, NO CONDUCT ON THE PART OF ANY PERSON SHALL BE PERMITTED WHICH IS DESIGNED TO OR DOES, IN FACT, FRIGHTEN WILDLIFE ON THE PROPERTY. IT IS ALSO NOT PERMITTED TO REMOVE ROCKS OR SOIL, CUT TREES, PICK WILD FLOWERS OR MAKE OTHER CHANGES TO THE COMMON FACILITIES IN ANY FORM WHATSOEVER. ONLY THE AGENT MAY MAKE CHANGES TO THE COMMON FACILITIES. IT IS THE RESPONSIBILITY AND EXPENSE OF THE ASSOCIATION TO CONTROL WEEDS WITHIN THE PASTURE, WHILE IT IS THE OWNER'S WITHIN HIS BUILDING ENVELOPE.

74. HUNTING AND BLASTING: NO HUNTING, TRAPPING OR POISONING OF ANIMAL LIFE BY ANY MEANS WHATSOEVER SHALL BE PERMITTED ON THE PROPERTY EXCEPT WHEN SUCH ANIMAL LIFE IS COMMONLY CONSIDERED A HOUSEHOLD PEST SUCH AS INSECTS, ANTS AND RODENTS INDOORS. DURING HUNTING SEASON, THE RANCHER MAY HUNT ON THE PROPERTY AS LONG AS HE HAS WRITTEN PERMISSION FROM THE BOARD AND NO OWNER OBJECTS TO HIS HUNTING ACTIVITIES. HE MAY INVITE GUESTS TO HUNT BUT MUST ALWAYS BE PRESENT HIMSELF. UNDER THESE CONDITIONS, HE IS EXEMPT FROM THE HUNTING AND FIRE ARMS RESTRICTIONS SET FORTH HEREIN. EXCEPT IN SELF-DEFENSE, NO DISCHARGE OF FIRE ARMS, FIREWORKS OR ANY OTHER EXPLOSIVES SHALL BE PERMITTED ON THE PROPERTY AND BLASTING FOR CONSTRUCTION PURPOSES MUST BE AUTHORIZED BY THE BOARD. VIOLATIONS UNDER THIS SECTION WILL BE PUNISHED WITH A MINIMUM FINE OF FIVE-HUNDRED DOLLARS ($500.00) PLUS INFLATION IN ADDITION TO THE POTENTIAL COSTS OF FIGHTING A FIRE AND REPAIRING THE DAMAGES DONE.

75. MINING: NO MINING OR EXTRACTION OF MINERALS OR SOIL SHALL BE PERMITTED ON THE PROPERTY INCLUDING SEISMIC OR OTHER MINERAL OR EXTRACTION TESTING. HOWEVER, ALL GRADING REQUIRED TO INSTALL, AND MAINTAIN THE COMMON FACILITIES SHALL BE PERMITTED.

76. OPEN FIRES AND FIRE WOOD: OPEN FIRES ARE NOT PERMITTED ON THE PROPERTY AT ANY TIME EXCEPT IN FIREPLACES, WOOD BURNING STOVES AND BARBECUES ALL OF WHICH MUST BE EQUIPPED WITH SPARK ARRESTING SCREENS. VIOLATIONS UNDER THIS SECTION WILL BE PUNISHED WITH A MINIMUM FINE OF FIVE-HUNDRED DOLLARS ($500.00) PLUS INFLATION IN ADDITION TO THE POTENTIAL COSTS OF FIGHTING A FIRE AND REPAIRING THE DAMAGES DONE BY SUCH A FIRE. FIRE WOOD MUST BE STORED IN SUCH A MANNER THAT IT DOES NOT POSE A MAJOR FIRE HAZARD IN CASE OF A HOME OR FOREST FIRE.

77. TRESPASSING: NO ONE MAY WALK, RIDE OR TRESPASS IN ANY OTHER WAY FOR ANY REASON ON ANY PART OF THE PROPERTY EXCEPT AS SET FORTH HEREIN.

78. "NO TRESPASSING" SIGNS: IT IS THE RESPONSIBILITY OF THE OWNERS TO POST THE NECESSARY "NO TRESPASSING" SIGNS ALONG THE BOUNDARIES OF THEIR BUILDING ENVELOPE IF THEY DESIRE TO DO SO. THE ASSOCIATION MAY ELECT TO POST SUCH SIGNS ALONG THE OUTSIDE BOUNDARIES OF THE PROPERTY AND NO OWNER SHALL INTERFERE WITH SUCH AN EFFORT.

79. GARBAGE AND REFUSE DISPOSAL: NO PART OF THE PROPERTY MAY BE USED OR MAINTAINED AS A DUMPING GROUND FOR RUBBISH. ALL TRASH, GARBAGE OR ANY OTHER HOUSEHOLD WASTE SHALL BE KEPT IN SANITARY CONTAINERS INDOORS AND SHALL BE REMOVED FROM THE PROPERTY AND BROUGHT TO THE CUSTER COUNTY PUBLIC DUMPING SITE AT REGULAR INTERVALS. THE RESIDENT OWNERS MAY ELECT TO SET UP A CUSTER COUNTY APPROVED TRASH CONTAINER AT A CONVENIENT CUSTER COUNTY APPROVED GARBAGE COLLECTION POINT ON THE PROPERTY. THE COST OF SUCH A WASTE REMOVAL PROGRAM SHALL BE BORN BY THE RESIDENT OWNERS. INCINERATORS ARE NOT PERMITTED TO BE OPERATED ON ANY PART OF THE PROPERTY. ALL PREMISES SHALL BE KEPT IN A CLEAN AND SANITARY CONDITION AT ALL TIMES INCLUDING PERIODS OF CONSTRUCTION. THE REMOVAL OF LITTER ON ANY LOT IS THE RESPONSIBILITY OF ITS OWNER. HOWEVER, THE ASSOCIATION MAY ORGANIZE DRIVES TO COLLECT LITTER, AS NEEDED, AND MAY CHARGE AN OWNER AN APPROPRIATE FEE IF EXCESSIVE AMOUNTS OF LITTER ARE FOUND ON HIS LOT. SUCH A FEE MAY BE COLLECTED IN THE SAME FASHION AS DELINQUENT ASSESSMENTS. THE CLEAN UP OF LITTER THAT IS BLOWN AWAY FROM A LOT IS THE RESPONSIBILITY AND EXPENSE OF THE OWNER OF THE LOT WHERE THE LITTER ORIGINATED FROM.

80. DISPOSAL OF LARGE ITEMS AND TOXIC CHEMICALS: LARGE ITEMS SUCH AS OLD APPLIANCES AND FURNITURE AS WELL AS TOXIC CHEMICALS SUCH AS LUBRICANTS AND PAINTS MUST BE DISPOSED OF AS REGULATED BY CUSTER COUNTY OR THE STATE OF COLORADO. THE PROPER DISPOSAL OF SUCH ITEMS SHALL REMAIN THE RESPONSIBILITY OF THE OWNER. THEY MAY NOT BE BROUGHT TO A GARBAGE COLLECTION POINT ON THE PROPERTY. VIOLATIONS UNDER THIS SECTION WILL BE PUNISHED WITH A MINIMUM FINE OF TWO-HUNDRED DOLLARS ($200.00) PLUS INFLATION IN ADDITION TO THE COSTS OF REMOVING THE ITEMS IN VIOLATION.

81. TERM: THE PROVISIONS HEREIN SET FORTH ARE TO BE CONSTRUED AS COVENANTS APPURTENANT TO AND RUNNING WITH THE LAND AND SHALL BE BINDING ON ALL PARTIES AND PERSONS CLAIMING ANY PART OF OR RESIDING ON THE PROPERTY. THIS DECLARATION SHALL BE IN FULL FORCE AND EFFECT FOR A PERIOD OF THIRTY (30) YEARS FROM THE DATE HEREOF, AFTER WHICH TIME, IT SHALL BE AUTOMATICALLY EXTENDED FOR A SUCCESSIVE PERIOD OF TEN (10) YEARS. THE DECLARANT, FOR EACH LOT OWNED WITHIN THE PROPERTY, HEREBY COVENANTS, AND EACH OWNER OF A LOT BY ACCEPTANCE OF A DEED OR OTHER CONVEYANCE THEREFOR, WHETHER OR NOT IT SHALL BE SO EXPRESSED IN ANY SUCH DEED OR OTHER CONVEYANCE, IS DEEMED TO COVENANT AND AGREE TO ACCEPT AND SIGN A NEW DECLARATION AS APPROVED BY A MAJORITY ON OR BEFORE THE EXPIRATION OF THIS DECLARATION. PROVISIONS FOR THE MAINTENANCE OF ROADS AND EASEMENTS SHALL NOT BE PERMITTED TO LAPSE WITH THE OTHER COVENANTS UNLESS OTHER PROVISIONS HAVE BEEN MADE FOR THE CONTINUATION OF SAID MAINTENANCE.

82. ENFORCEMENT: ANY OWNER, THE ASSOCIATION, THE AGENT OR ANY OTHER REPRESENTATIVE OF THE ASSOCIATION MAY ENFORCE THE PROVISIONS HEREIN SET FORTH BY PROCEEDINGS AT LAW OR IN EQUITY AGAINST ANY PERSON OR PERSONS VIOLATING OR ATTEMPTING TO VIOLATE ANY OF SAID PROVISIONS, EITHER TO RECOVER DAMAGES FOR SUCH VIOLATIONS INCLUDING COURT COSTS AND ATTORNEY FEES OR TO RESTRAIN SUCH VIOLATIONS OR ATTEMPTED VIOLATIONS. IF APPLICABLE, VIOLATIONS BY NON-OWNERS BECOME THE PERSONAL LIABILITY OF THE RELATED OWNERS. THE ASSOCIATION SHALL HAVE THE RIGHT TO ACT IN BEHALF OF AN OWNER IF SAID OWNER DOES NOT COMPLY WITH THE PROVISIONS SET FORTH HEREIN WITHIN A REASONABLE TIME. UNLESS STATED OTHERWISE HEREIN, SAID REASONABLE TIME SHALL ALWAYS BE SIXTY (60) DAYS. ALL COSTS INCURRED BY THE ASSOCIATION, WHEN ACTING IN BEHALF OF AN OWNER, PLUS INTEREST, A HANDLING FEE NOT TO EXCEED TWO-HUNDRED DOLLARS ($200.00) PLUS INFLATION AND ATTORNEY FEES, SHALL BECOME A PERSONAL LIABILITY OF SAID OWNER AND CAN BE COLLECTED IN THE SAME FASHION AS DELINQUENT ASSESSMENTS.

83. FINES: ALL VIOLATIONS OF THIS DECLARATION MAY BE PUNISHED WITH A FINE. THE STANDARD FINE FOR ANY VIOLATIONS IS ONE-HUNDRED DOLLARS ($100.00) PLUS INFLATION. HIGHER FINES MAY BE ASSESSED AS SET FORTH ABOVE. FINES MAY BE COLLECTED IN THE SAME FASHION AS DELINQUENT ASSESSMENTS.

84. LIABILITY OF ASSOCIATION: NO MEMBER, DIRECTOR OR OFFICER OF THE ASSOCIATION NOR THE AGENT OR ANY OTHER REPRESENTATIVE THEREOF SHALL BE PERSONALLY LIABLE TO ANY OWNER, OTHER PERSON OR ENTITY FOR ANY ERROR OR OMISSION IF HAVING ACTED IN GOOD FAITH. HOWEVER, THE ASSOCIATION SHALL CARRY STANDARD LIABILITY INSURANCE FOR ONE-MILLION DOLLARS ($1,000.000.00) COVERAGE.

85. SEVERALTY: THE INVALIDATION OF ANY ONE OF THE PROVISIONS HEREIN SET FORTH SHALL NOT IMPAIR NOR AFFECT ANY OF THE OTHER PROVISIONS OF THIS DECLARATION WHICH SHALL REMAIN IN FULL FORCE AND EFFECT AS IF SUCH INVALID PROVISION HAD NEVER BEEN INCLUDED HEREIN.

86. AMENDMENTS: THIS DECLARATION MAY BE AMENDED BY THE DECLARANT DURING THE TERM OF THE INITIAL BOARD AND BY A MAJORITY THEREAFTER WITH RESPECT TO ANY OF THE PROVISIONS SET FORTH HEREIN IN ANY WAY WHATSOEVER. ALL SUCH AMENDMENTS MUST BE SIGNED BY ALL THE APPROVING MEMBERS BEFORE A NOTARY PUBLIC AND BE RECORDED. SIMILARLY, THE ARTICLES OF INCORPORATION OF THE ASSOCIATION MAY BE AMENDED BY THE DECLARANT DURING THE TERM OF THE INITIAL BOARD AND BY A MAJORITY THEREAFTER.

87. GOVERNMENT REGULATIONS: ANY LOCAL OR OTHER GOVERNMENTAL REGULATIONS, ORDINANCES OR LAWS THAT ARE MORE RESTRICTIVE THAN THE PROVISIONS SET FORTH ABOVE SHALL TAKE PRECEDENCE OVER SAID PROVISIONS WITHOUT INVALIDATING THEM.

88. GENDER: THE USE OF ANY GENDER SHALL BE APPLICABLE TO ALL GENDERS.

89. HEADINGS: THE SECTION HEADINGS GIVEN HEREIN ARE FOR CONVENIENCE ONLY AND IN NO WAY DEFINE, LIMIT OR DESCRIBE THE SCOPE OF THIS DECLARATION.

IN WITNESS WHEREOF, THE PARTY HERETO HAS SIGNED THE FOREGOING DECLARATION THIS 5th DAY OF JULY, 1995.

STATE OF COLORADO ) ____________________________________________

) SS. MARKUS HERZOG (303) 443-4651

COUNTY OF BOULDER ) PO BOX 361, LOUISVILLE, CO. 80027

THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS 5th DAY OF JULY, 1995, BY MARKUS HERZOG. WITNESS MY HAND AND OFFICIAL SEAL.

MY COMMISSION EXPIRES ___________________, 19___ ____________________________________________

NOTARY PUBLIC