DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS for SAN JUAN VISTA ESTATES at Durango

A Residential Subdivision

THIS DECLARATION, made on the date hereinafter set forth by Joseph James Verce, Jr and Melanie Williams-Verce, hereinafter referred to as "Declarant."

WITNESSETH:

WHEREAS, Declarant intends these Covenants, Conditions. Restrictions and Easements to be applicable to that certain property in the County of La Plate, State of Colorado, which is more particularly described as shown on the attached legal description Exhibit A which is incorporated herein and which is the subject of that certain Class II Residential Subdivision filing and the plots associated therewith known as San Juan Vista Estates at Durango. and

WHEREAS, by their execution of said Residential Subdivision Master plan filing containing 56 lots and the related plats and agreements, owners of the property Lots 1 through 15, Phase 1 of San Juan Vista Estates Subdivision have adopted, affirmed and ratified this Declaration and made the Covenants, Conditions, Restrictions and Easements herein contained applicable to Lots 1 through 15, Phase I, San Juan Vista Estates Subdivision.

NOW, THEREFORE, Declarant hereby declares that all of the properties above described as Lots 1 through 15, Phase I, San Juan Vista Estates, shall be held, sold and conveyed subject to the following easements, restrictions, covenants, and conditions, which are for the purpose of establishing a general plan and of protecting and maintaining the value and desirability of the Subdivision as a high quality residential development, which shall run with the real property and be binding on all parties having any right, title or interest in the described properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof

ARTICLE I

DEFINITIONS

Section 1. "Association" shall mean and refer to the San Juan Vista Estates at Durango Owners Association, Inc., a Colorado Non-Profit Corporation, its successors and assigns.

Section 2. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Properties, including contract sellers, but excluding Declarant and those having such interest merely as security for the performance of an obligation.

Section 3 "Properties" shall mean and refer to that certain real property hereinabove described, and such additions thereto as may hereafter be brought within the jurisdiction of the Association.

Section 4. "Lot" shall mean and refer to any residential, plot of land shown upon the final plat map of the Properties whether or not all phases and filings have received final approval Declarant as the owner of certain tracts of land have received Master Plan approval from the La Plata County Board of Commissioners for developing 56 single family residential fits. Declarant reserves the absolute right to include remaining lots and any other properties they may now or hereafter acquire to Phase I of the Subdivision and the Association.

Section 5. "Declarant" shall mean and refer to Joseph James Verce and Melanie Williams-Verce and their successors and assigns if such successors or assigns should acquire more than one undeveloped Lot for the purpose of development

Section 6. "Board of Directors" or "Board" shall refer to the Board of Directors of tile Association consisting of persons designated by the Declarant's until one Hundred percent (100°0) of the Lots have been sold or Joseph James Verce and Melanie Williams-Verce waive Declarant's right to designate Directors, whichever event occurs first and the Board of Directors shall thereafter be comprised of Owners designated in accordance with the Articles and By-Laws of the Association.

Section 7. "Subdivision" refers to the development project commonly known as San Juan Vista Estates at Durango as shown by the Final Plat filing and plat so titled Declarant hereby reserves the right to develop, construct and market the project in multiple phases and to make additional phases subject to these declarations Property adjoining ; phase I t , '.(.)Is I-15) has received Master Plan approval with all appurtenant rights as set forth 1 !. is I_ a Plata County Land Use System by La Plata County Board of County Commissioners for a total of 56 lots to be included as a part of the Subdivision.

ARTICLE II

MEMBERSHIP AND VOTING RIGHTS

Section 1. Association Membership Every Owner of a Lot , which is subject to assessment shall be a member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment.

Section 2. Voting. Owners shall be entitled to one vote for each Lot owned. When more than one person holds an interest in any Lot, all such persons shall be members The vote. for such Lot shall be exercised as they determine, but in no event shall more than one vote he cast with respect to any Lot.

Section 3. Declarant's Rights. The Declarant is not an owner as defined in Article II Section 1, however, the Declarant is entitled to cast votes as owner or member for each of the Lots owned by it whether held for development or as unsold inventory or otherwise may be herein expressly authorized and for all purposes of voting in Articles III and IV.

ARTICLE III

COVENANT FOR ASSESSMENTS AND ESTABLISHMENT OF LIEN

Section 1. Creation of the Lien and Personal Obligation of Assessments. Each Owner of any Lot by acceptance of a deed of a Lot, whether or not it shall be so expressed in such deed, is deemed to covenant and agrees to pay to the Association: (1) annual assessments, (2) special assessments for capital improvements, and (3) domestic water assessments. such assessments and dues to be established and collected as hereinafter provided These charges, together with interest, costs and reasonable attorney's fees, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment and the dues, together with interest, costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them.

Section 2. Purpose of Annual Assessments. The annual assessments levied by the Association shall be used exclusively for its operating expenses and to promote the recreation, health, safety and welfare of the residents in the Properties and for the improvement and maintenance of the streets (unless and at such time such street improvement or maintenance responsibility is assumed by La Plata County), lighting and any parks, other services, property, open space, green belts and rights in and to easements owned by the Association

Section 3. Maximum Annual Assessment. The maximum annual assessment shall be as set by the Board of Directors per Lot.

(a) The maximum annual assessment may be increased each year not more than ten percent (10%) above the maximum assessment for the previous year; without a vote of the membership.

(b) The maximum annual assessment may be increased above ten percent (10%) by a vote of two-thirds (2/3) of members who are voting in person or by proxy at a meeting duly called for this purpose.

(c) The Board of Directors may fix the annual assessment at an amount less than the maximum

Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association may levy, in any assessment year. a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement owned by the Association designated by the Board of Directors, providing that any such Assessment shall have the assent of two-thirds (2/3) of the votes of the members who are voting in person or by proxy at a meeting duly called for this purpose. Not withstanding the foregoing motivations contained in Article III, Section 3(a-c), it shall be the responsibility and obligation of the lot owners through the Association to pay for the cost of installing pavement or other La Plato County approved applications to the roads at such time as it becomes necessary pursuant to the La Plata County Land Use Code or successor land use rules and regulations.

Section 5. Notice and Quorum for Any Action Authorized Under Sections 3 and 4. A Written notice of any meeting called for the purpose of taking any action authorized under Suction 3 or 4 shall be sent to all Owners entitled to vote not less than 14 days nor more than 60 days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast sixty percent (6O%) of Owners entitled to vote shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half ( 1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than 60 days following the preceding meeting.

Section 6. Uniform Rate of Assessment Both annual and special assessments must be at a uniform rate for all Lots and may be collected on an annual basis Declarants' unsold lots or Declarants' lots held for resale shall be exempt from assessments. provided however, that Developers shall be responsible for any shortfall.

Section 7. Date of Commencement of Annual Assessments; Due Dates, The annual assessments provided for herein shall commence as to each Lot on the last day of the month following the Owners acquisition of a Lot. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the annual assessment for such Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments, dues and water charges on a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot is binding upon the Association as of the date of it issuance.

Section 8 Domestic Water Assessment. In addition to Association membership, all owners of lots shall pay through the Association, or such other billing service as may be designated from time to time, domestic water consumption charges as on assessment. The entity providing domestic water shall set such charges from time to time in accordance with its duly established and published policies. These charges are subject to all lien and collection procedure and remedies provided by this Declaration for assessments.

Section 9 Effect of Nonpayment of Assessments Remedies of the Association. Any assessment not paid within thirty (30) days after the due date shall; bear a late fee and interest from the due date at the rate fifty dollars ($50.00) for late fee per month and eighteen percent ( 18%) per annum interest The Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the property. No Owner may waive or otherwise escape liability for the assessments provided for herein by nonuse of the Association property or services or by abandonment of his Lot. Public notice of the lien shall be given in the event of a delinquency in the payment of any assessment by the recording by the Board of a Notice of Assessment Lien specifying the delinquency, the owner, and the property to which the lien is applicable. In the event of foreclosure. the procedure applicable to judicial foreclosure of Deeds of Trust in Colorado shall be employed A notice of release of a lien shall be provided to the owner when all assessments, costs and charges secured by the lien have been fully paid or satisfied

Section 10. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate in the lien of any first Deed of Trust or mortgage Sale or transfer of any Lot shall not effect the assessment lien. However the sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.

Section 11. Homestead Waiver. Each Owner hereby agrees that the Association's lien on a Lot for assessments shall be superior to the homestead exemption provided by Colorado law as amended from time to time and each Owner hereby agrees that the acceptance of the deed conveying the Owner's property within the subdivision to him shall signify the Owner's waiver of the homestead right granted by said Colorado law.

ARTICLE IV

ARCHITECTURAL CONTROL

Section 1. Approval. No building, fence or other structure or improvement of any kind including home identification devices shall be commenced, erected or maintained upon the Properties, nor shall any exterior repair, replacement, addition to or change or alteration therein be made until detailed and legible plans and specifications showing the nature, kind, color, shape, height, materials, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures, and topography and finish grade elevation by the Developer Evidence of submission of such materials shall be issued by said Board or Committee designated by the Board of Directors to act as the Architectural Control Committee showing the date of such submission. In the event said Board, or its designated committee, fails to approve or request additional information or disapprove with recommendations or disapprove entirely such design and location within thirty (30) days in writing after said plans and specifications have been submitted to it, approval will not be required and this Article will be deemed to have been fully complied with. Approval of such plans and specifications shall not be arbitrarily or unreasonably withheld. So long as an Architectural Control Committee is appointed, the Board of Directors shall refer all requests for approval to the Committee. A reasonable fee may be charged to any Lot Owner for each plan review. Owners must comply with all applicable governmental regulations including but not limited to open space requirements and to the visual impact regulations of the La Plata County Land Use Code as amended from time to time.

Section 1.1, Scenic Corridor. Any structure constructed within the highway 550 scenic corridor shall install roofing material that compliments the existing flora and fauna within the Subdivision.

Section 2. Lot Owner Consent. Neither the architectural committee, the Board of Directors nor Declarant nor their respective successors or Assign shall be liable in damages to anyone submitting plans and specifications for approval, or to any Owner affected by this Declaration, by reason of mistake in judgment, negligence or nonfeasance arising out of or in connection with the approval or disapproval or failure to approve any such plans and specifications. Every Owner or other person who submits plans for approval agrees by submission of such plans and specifications, that he will not bring any action or suit against the approving body or Declarant to recover any such damages Approval of plans and specifications shall not be deemed to constitute compliance with the requirements of any local building codes or land use regulations and it shall be the responsibility of the Owner or other person submitting plans and specifications to comply therewith.

Section 3. Standards and Specifications The Architectural Control Committee or the Board of Directors if no committee is appointed shall promulgate architectural standards and specifications which shall be published in booklet form Such standards and specifications. subject to amendment by the adopting entity, shall govern all structures, improvements, commercial signs and home identification devices proposed for any Lot.

Section 4. Financial Responsibility The Architectural Control Commitee or the Board of Directors may, as a condition of approval of any construction on any lot require proof of the applicant's financial ability to pay for the entire cost of the proposed work.

Section 5. View Restriction. No vegetation or other obstruction shall be planted or maintained upon any lot in such location or of such height as to unreasonably obstruct the view from any other lot in the vicinity thereof. In the event of a dispute among owners as to the obstruction of a view from a lot, such dispute shall be submitted to the Developer or Board whose decision in such matters shall be binding. The Developer or Board may refer the matter to the Architectural Control Committee. Any such obstruction shall upon request of the Developer or Board or the Committee, be removed or otherwise altered to the satisfaction thereof by the owner of the lot upon which the obstruction is located. Each owner shall be responsible for periodic trimming and pruning of all hedges, shrubs and trees located on his lot so that they do not grow in a manner as to unreasonably obstruct the view of adjacent owners or street traffic Only trees indigenous to the Subdivision may be planted save and except Lot 10 which retains all farm rights for agricultural purposes and pursuant to the Colorado Right to Farm Act.

Section 6. Committee Membership If the Board elects to appoint an Architectural Control Committee (sometimes herein referred to as the "Committee") it shall designate three or more persons to so act. Members of the Committee need not be owners. each shall hold office until he resigns or has been removed or his successor has been appointed Members of the Committee may he removed by the Developer or Board at any time without cause.

Section 7. Committee Inspection The Committee shall have the right and authority to inspect construction in progress to assure its conformance with plans approved by the Committee

Section 8. Meetings of the Committee The Committee shall meet from time to time as necessary to perform its duties hereunder. The Committee may from time to time by resolution unanimously adopted in writing designate a Committee representative (who may, but need not. be one of its members) to take any action or perform any duties for and on behalf of the Committee, except the granting of variances as authorized by this Declaration In the absence of such designation, the vote of any two (2) members of the Committee, or the written consent of any two members of the Committee taken without a meeting, shall constitute an act of the Committee.

Section 9. No Waiver of Future Approvals. The approval of the Committee to any proposals or plans and specifications or drawings for any work done or proposed or in connection with any other matter requiring the approval and consent of the Committee. shall not be deemed to constitute a waiver of any right to withhold approval or consent as to any similar proposals, plans and specifications, drawings or matter whatever subsequently or additionally submitted for approval or consent.

Section 10 . Compensation of Members The members of the Committee shall receive no compensation for services rendered, other than reimbursement for expenses incurred by them for the performance of their duties hereunder. A Committee representative, however, may be paid as a consultant to the Committee

Section 11. Correction of Defects Inspection of work and correction of defects thereto shall proceed as follows.

(a) The Committee or its representatives may at any time inspect any improvement for which approval of plans is required under this Declaration; provided, however, that the Committee's right of inspection of improvements for which plans have been submitted and approved shall terminate sixty (60) days after such work of improvement shall have been completed and the respective owner shall have given written notice to the Committee of such completion. The Committee's rights of inspections shall not terminate pursuant to this paragraph in the event that plans for the work of improvement have not previously been submitted to and approved by the Committee. If, as a result of such inspection, the Committee finds that such improvement was done without obtaining approval of the plans therefor or was not done in substantial compliance with the plans approved by the Committee, it shall notify the owner in writing of failure to comply, specifying the particulars of noncompliance. The Committee shall have the authority to require the owner to take such action as may be necessary to remedy the, noncompliance.

(b) If upon the expiration of sixty (60) days from the date of such notification, the owner shall have failed to remedy such noncompliance, the Committee shall notify the Board in writing of such failure. Upon notice and hearing, as provided in the By-Laws, the Board shall determine whether there is a noncompliance and, if so, the nature thereof and the estimated cost of correcting or removing the same. If a noncompliance exists, the owner shall remedy or remove the same within a period of not more than forty five (45) days from the date that notice of the Board ruling is given to the owner. If the owner does not comply with the Board ruling within such period, the Board, at its option, may record a notice of noncompliance in the office of the La Plata County Clerk and Recorder and may thereafter peacefully remove the noncomplying improvement or otherwise peacefully remedy the noncompliance, and the owner shall reimburse the Association, upon demand, for all expenses, including reasonable attorney's fees incurred in connection therewith. If such removal or remedy may not peacefully be Accomplished, the Board may take such legal action as may be required to accomplish the acts herein authorized. If expenses are not promptly repaid by the owner to the Association or, in any event, if the Board is required to take Court action, the Board shall levy an assessment against such owner for reimbursement as authorized in this Declaration for other assessments The Board shall have all remedies and rights in such proceedings as are otherwise granted to it in this Declaration.

Section 12. Russian Knapweed The Weed Eradication and Enforcement Officer for La Plata County has identified the presence of Russian Knapweed on the Property. In order to comply with the Weed Control statutes of the state of Colorado, it shall be the duties of the Homeowners Association to adopt and implement any recommendations that are made by the La Plata County Weed Control Officer pursuant to the Weed Control Statutes of the State of Colorado to control and eradicate Russian Knapweed or other noxious weeds which may subsequently be identified on the property.

ARTICLE V

RESTRICTIONS

Section 1. Dwelling, Quality and Size All structures must be of permanent nature constructed on site affixed to a permanent foundation, and no modular home, trailer house or mobile home shall be set upon any Lot within said Subdivision. All dwellings must be of workmanlike quality using new materials and shall be completely finished before occupancy Completion must occur within one (1) year of issuance of a building permit. Each residence structure shall contain at least 1,800 square feet of living space of which not less than 1,260 square feet shall be the above ground, ground level main floor. Square footage is to be determined by exterior wall measurement.

Section 2. Signs & Exterior Lighting Except for activities of Declarant, no signs, advertisements, billboards or advertising structures of any kind or character may be erected or maintained upon a Lot including those for the sole purpose of advertising the sale or lease of a residence.

Notwithstanding the forgoing, the Board or its Commitee may approve and authorize home identification devices and signage for street identification. public directions, and rules of enforcement. No barn yard security or large yard lights will be above tree line or allowed to burn from 11:00 o'clock P.M. to 6:00 o'clock A.M. on residential Lots unless approved by the Board of Directors or its Architectural Control Committee. No roof material or building materials that reflect light shall be employed on any structure.

Section 3. Commercial Activity Prohibited. Except for sales offices and activities of Declarant related to the property, no business or commercial uses may be made on the premises of any residential Lot, provided, however, that permission to operate home businesses such as are generally defined as "cottage industries" exemplified by sewing goods, Tupperware sales, craft objects, carvings, stained glass, photography, paintings, woodworking, specialty advertising sales, and professional home offices may be granted upon request by the Architectural Control Committee or the Board of Directors upon an express finding that such home business activity will not unreasonably interfere with the peace and quiet of the neighborhood, significantly increase traffic or create a safety hazard.

These covenants shall preclude use of residential Lots as a base or place of operations for businesses that store inventories or goods outside of the residence. Examples of businesses that might fall in this category are contractors who store supplies for future use such as building contractors storing scaffolding. ladders, lumber, sheet rock. etc. and other goods which would create visual intrusion on the neighborhood.

Section 4. Setback On residential lots  No permanent structure of any kind except fences, shall be placed within twenty-five (25) feet of boundary lines adjacent to open space property or open field areas and fifty (50) feet from Subdivision roadways nor within fifty (50) feet of other boundary lines. Any exceptions must be reviewed and approved in writing prior to construction by the Architectural Control Committee or the Board of Directors. Notwithstanding the setback designations herein specified, the Board or Committee may, at the time of initial plan review, impose greater or allow lesser setback requirements in the event of circumstances unique to individual situations if required for safety or aesthetic or other reasons. Driveways will be constructed so that dwellings are not readily visible from roadways and shall be easily accessible by emergency equipment.

Section 5. Use

(I) Residential. Each residential Lot shall be used for one single family private dwelling only per Lot, designed for the occupancy of and by one family except that maid's quarters ("granny quarters") and separate living quarters occupied only by related persons may be constructed upon approval by the Architectural Control Committee. The Owner must also construct one two-car garage with doors attached to or within thirty (30) feet of the residence, provided said garage is constructed of suitable material and design so as to be aesthetically compatible with the dwelling and approved by the Board of Directors or its Architectural Control Committee. There will be no uncovered boat. R.V. or other uncovered storage within the subdivision.

Section 6 Livestock and Pets. No agricultural activity shall be undertaken for any business or commercial purpose except for agronomic use of Lot 10 and no animals, livestock or poultry of any kind shall be raised, bred or kept upon any Lot in the Subdivision for business or commercial purposes. Homeowners may keep not to exceed two (2) generally recognized house or yard pets provided they a appropriately fenced and kept within the Owner's control both on and off the Owners Lot. Within the Owners control shall mean on a leash when not on the Owners property and a dog shall not be allowed to disturb neighbors by barking, whining or making other noises. Except for bird feeders containing approved bird feed, owners and their guests shall not provide feed and/or water to wildlife except such as is naturally available within the subdivision or as may be grown pursuant to agronomic use of lot 10.

Section 7. Temporary Structures No structures of a temporary character, tent, shack, basement, trailer. barn, garage or other outbuilding shall be used on any part of said Subdivision.  Construction trailers approved as to size and and location by the Architectural Review Committee may be used during construction.

Section 8, Fences. All fences must be approved by the Board of Directors or its Architectural Control Committee and all fences must be maintained to good repair. There will be allowed only, small privacy fences or fences for swimming pools in an area not to exceed 2,000 square feet directly surrounding a house Lot line perimeter fences are expressly prohibited This condition is included herein to encourage wildlife habitat and travel across the Subdivision and is a requirement for approval of the Subdivision by the Colorado Department of Wildlife. Lot 10 shall maintain its northern boundary fence.

Section 9. Repairs. Any building or improvement which has been damaged by fire or other casualty causing the same to be unsightly shall be repaired or removed within four(4) months from the date of such casualty. All structures, buildings and improvements erected on Lots within the Subdivision shall at all times be kept in good repair and attractive.

Section 10. Abandoned Vehicles. Vehicle Screening and Parking

(a) No abandoned vehicles shill be permitted on any Lot. A vehicle shall be considered abandoned if it remains non-operative for a period of thirty (30) days. In such instance the Association shall send a letter requiring removal of the vehicle within thirty (30) days from the receipt of the letter and if the Owner does not comply within that period of time the Association may have the vehicle towed away and stored at the violator's expense

(b) Parking of vehicles on the roads and streets within the Subdivision is prohibited. Further, other than automobiles, all vehicles including but not limited to recreational vehicles, cycles, campers, motor homes, horse trailers, and snowmobiles, shall be parked in a garage or carport attached to the garage or screened from view from streets, roads, open space and neighboring property by approved structures, natural vegetation or terrain

(c) Motor homes. recreational vehicles and campers may be hooked up to an owner's water or sewer system and they may be occupied by owner's guests on a t temporary basis and in any event for not more than ten (10) days in any calendar month or allowed by the Architectural Control Committee during the reasonable construction period of a residence.

Sectlon 11. Burning and Trash Disposal. Trash or garbage shall not be permitted to accumulate upon any Lot except in properly covered containers which shall be emptied on a regular basis to avoid overflow and unreasonable odors or conditions resulting therefrom. Solid waste disposal is the responsibility of the individual homeowner or occupant. Open burning of trash or any combustible material is expressly prohibited. This covenant shall not be construed to prohibit fireplaces or barbecue pits or open cooking on Lots. The Association may contract with a trash removal service within the Subdivision, however, the expense for such service will be the responsibility of each Owner who elects to participate in the service. Use of coal, other than in the event of a National Energy Emergency, as a heat source in fireplaces, furnaces and stoves is prohibited.

Section 11, Weed Control. Weeds must be cut often enough so as to not permit land within the Subdivision to become unsightly or a fire hazard due to the overgrowth of weeds or be in violation of State law prohibiting the proliferation of certain noxious weeds. If such weed control is not exercised by an Owner, the Association will have the right to hire the weeds mowed and assess the Owner for the expense of same with the Association having all the rights and remedies provided by Article III Section 10 above. (See Section 24 of this Article V).

Section 13. Off Road Vehicles Prohibited

(a) Except for construction and maintenance equipment, only vehicles licensed to operate on public streets may be operated within the Subdivision and on the Lots and roads thereof: provided, however, that prohibited vehicles may be operated for purposes of loading and unloading.

Section 14. Mining and Drilling Activities Prohibited Any use of the surface of any Lot within the Subdivision for water other than wells owned by the operator of and for a domestic water system; oil, gas, mineral, geothermal or oil shale exploration, development, mining or drilling activities of any kind whatsoever is expressly and absolutely prohibited.

Section 15. Offensive Activity No noxious or offensive activity or odors shall be permitted or carried on at any Lot nor shall anything be done or placed therein which may be or become a nuisance or cause unreasonable embarrassment, disturbance or annoyance to other Owners in the enjoyment of their Lots or in the property of the Association. Firearms shall not be discharged within the Subdivision.

Section 16. Antenna Prohibited Radio antenna, television antenna and satellite dishes may be installed with the consent of the committee A commercial lot may be included in a later phase for the purpose of housing a community television operation to provide television or telecommunication services to the Subdivision.

Section 17 Clothes Dryers Prohibited No exterior clothes dryer shall be erected. installed or maintained on any Lot, or on any structure thereon.

Section 18. Utility Lines Under ground. Electric, telephone, television, radio and other utility lines shall be placed underground when extended from the street or Lot line to any structure on a Lot. All Trenching routes shall be approved by developer or committee to avoid damage to trees and plants and all trenches shall be fully compacted and shall contain not less than four (4) inches of indigenous topsoil placed in the top of the trench to the end that the prior natural state of the area trenched is replicated.

Section 19. Sound Devices Prohibited. No exterior horns, whistles, bells or other sound devices except security devices used exclusively to protect the security of dwellings and other improvements located on the Lot or essential to the function of community services shall be placed or used on any Lot or elsewhere in the Subdivision

Section 20. Miscellaneous. Except for fire hazards, maintaining or improving plant health and vigor or for removal of insect or disease affected vegetation, for approved driveways, for construction of approved structures, no indigenous trees or perennial bushes may be cut or removed, no action affecting drainage direction or affecting other property and no grading of the land surface shall be done within the Subdivision except upon variance as hereafter authorized. (See Article VI, Section 6). Application for such variance shall be accompanied by such drawings, plans or photographs as may be reasonably required to show the nature of the proposed cutting, removal or grading. It is desirable to preserve the natural character of the area and therefore to limit cutting, removal and grading to that which is necessary to the reasonable use and enjoyment of the property within the Subdivision. Approval of applications for variances within the contemplation of this section may be conditioned upon installation of appropriate drainage facilities to be installed at the applicant's expense. Water wells and cisterns are prohibited on any lot. Domestic water for use on all lots must be obtained from the water system installed by the developer or his assign. House numbers shall be assigned by the Committee and shall be posted by the owner so as to be readily visible from the street as prescribed by the committee.

Section 21. Sewage Disposal. No sewage collection system or sewage disposal shall be installed or used on any Lot unless and until such system is designed, constructed and located in conformity with the then existing standards, regulations and criteria employed by the La Plata County Sanitarian acting under the direction and within the regulations of the State of Colorado. The Architectural Control Committee shall review and approve all sewage disposal system plans No sewage lagoon will be permitted. No construction of any such system shall be undertaken until the plans, specifications and design therefor have received such approval and no such system shall be placed in use until the completed construction has received final governmental approval. If and when community sewage disposal is feasible and installed, the homeowners shall immediately connect to the community system and pay all applicable fees and costs.

Section 22. Insurance Rates. Nothing shall be done or kept in the properties which will increase the rate of insurance on any Association property without the approval of the Board or the Committee, nor shall anything be done or kept in the properties which would result in the cancellation of insurance on any Association property or which would be in violation of any law.

Section 23. No Further Subdivision. Except for Lot 10, no lot may be further subdivided nor may any easement or other interest therein less than the whole be conveyed by the owner thereof without the consent of the original owners to the property, Declarants, which consent shall be the absolute right of said original owners, their successor, heirs or assigns.

Section 24. Association Remedies. In the event any owner fails to comply with any affirmative duty imposed on owners by or under the authority of this Declaration, the Association may perform such after fifteen (15) days prior written notice to the owner and charge the owner with the expense thereof. The Association shall have the right to enter the owner's lot for this purpose but unless there exists an emergency, there shall be no entry into a building without the consent of the owner. In the event the Association is required under the terms of this section to perform a duty of the owner, the cost thereof including reasonable attorney's fees, shall constitute an assessment payable by the offending owner which cost shall create a lien enforceable in the manner set forth in Article III, Section 10 above.

Section 25. Declarant's Rights. Nothing in this Declaration shall be construed to limit or interfere with the Declarant's development of the property, construction of the amenities or the construction of utilities or other facilities contemplated by the Phase 1 Plan or the Master Plan or subsequent phases as the Developer may create.

Section 26. Fire Protection Plan Each individual Homeowner will be required to meet the following home fire protection guidelines:

(a) Thin out continuous tree and brush cover within 30 feet of home. Adequate thinning is reached in the 30 foot "defensible space" when the outer edge of tree crowns are at least 10 to 12 feet apart. Occasional clumps of 2 or 3 trees are permitted for natural effects if more space surrounds them. Small patches of brush or shrubs may be left if they are separated by at least 10 feet of irrigated grass or noncombustible material. If your home is on a slope, enlarge the defensible space, especially of the downhill side. If it is located at the crest of a steep hill, thin fuels at least 100 feet below the crest

(b) Dispose of all slash and debris left from thinning. Common disposal methods are I) lop and scatter (cut debris into small pieces and disperse over area to accelerate decomposition); 2) pile and bum (only when snow cover is sufficient to prevent fire spread); and 3) chipping.

(c) Remove dead limbs, leaves, and other ground litter within the defensible space.

(d) Stack firewood uphill and at least 15 feet from your home.

(e) Maintain an irrigated greenbelt immediately around your home using grass. flower garden, or ornamental shrubbery. An alternative is rock or other noncombustible material, avoid bark or wood chip mulch in this area

(f) Mow dry grasses and weeds to a height of two inches or less and keep well watered, especially during Periods of high fire danger.

(g) Prune branches from trees within the defensible space. Also remove shrubs, small treys, or other potential "ladder" fuels from beneath large trees; left in place, these can carry a ground fire into tree crowns.

(h) Trim branches which extend over the eaves of your roof. Remove branches within 15 feet of a chimney.

(i) Clean roof and gutters of pine needles and leaves to eliminate an ignition source for firebrands, especially during the hot, dry weather of the fire season.

(j) Reduce density of surrounding forest at least 100 feet out from homesite (it is preferable to thin your entire lot) Thin trees so crowns do not touch each other. Whenever possible, harvest sawlogs, posts, poles, or firewood.

Any individual Homeowner who fails to reasonably meet these guidelines upon failure to do so grants authority to the Homeowners Association to undertake any and all work necessary to meet such guidelines. Homeowner further agrees that payment will be made at completion of the work and failure to pay when work is completed shall create lien rights with costs and attorneys fees in the Homeowners Association subject to the Homeowner rights with regard to foreclosure as previously set forth to these covenants, conditions and restrictions or as the law is set forth in the Colorado Revised Statutes Annotated for lien foreclosures on real property in the State of Colorado.

ARTICLE, VI

GENERAL PROVISIONS

Section 1, Enforcement. The Declarant, the Association, a Sub-Association, any Owner, the Board of County Commissioners of La Plata County, Colorado, or any special district subsequently created shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration and shall recover reasonable attorney's fees and costs for doing so. Such right of enforcement includes but is not limited to actions and suits to restrain and enjoin any breach or threatened breach of any provision of this Declaration or the rule:, regulations and compliance sanctions adopted pursuant to Section 5 of this Article VI or the standards and specifications adopted pursuant to Section 3 of Article IV above. Failure by the Declarant, the Association, the County or any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver or abandonment of the right to do so thereafter.

Section 2. Severability Invalidation of any one of these covenants or restrictions by Judgment or Court Order shall to no way affect any other provisions which shall remain in full force and effect.

Section 3. Amendment. The covenants and restrictions of this Declaration shall run with and bind the land, for a term of twenty-five (25) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of twenty-five (25) years. This Declaration may be amended during the first six (6) years alter recording by an instrument signed and notarized by not less than fifty percent (50) of the Lot Owners. Each additional phase shall be added for the purposes of determining the number of lot owners at the time notice of the application is published. Thereafter by an instrument signed by not less than seventy-five percent (75) of the Lot Owners. Any amendment must be recorded. For purposes of this Section, Declarant and its assigns and successors are considered Lot Owners as to Lots held by the Declarant whether for development, investment or resale. Not with standing the foregoing provisions permitting amendment of this Declaration, it is expressly a condition hereof that this sentence, Article III, Sections 1, 8 and 9, the requirement that visual impact regulations be met, subpart (d) of Section 7 of this Article, and Section 17 of this Article may not be amended under any circumstances. The foregoing partial prohibition on amendment is in compliance with La Plata County requirements and in recognition of owners' rights to enforce operational standards of the water delivery entity or other utility related entities which may hereafter be created.

Section 4. Annexation. Additional property may be annexed to the Properties by Declarant or its successor or assigns.

Section 5. Rules. Regulations and Compliance Sanctions

(a) The Board of Directors shall have authority to adopt reasonable rules and regulations for the purposes of ensuring compliance with this Declaration and interpreting any of the provisions hereof as well as governing use of the property of the association

(b) The Board of Directors shall also have the right to suspend the voting rights of any Owner who is delinquent in payment of assessments or for infraction on of such rules and regulations. Compliance sanctions may also include the imposition of fines to penalize infractions of such rules and regulations.

Section 6. Variances. The Board of Directors or its Architectural Control Committee if appointed as herein authorized shall have the authority to grant variances from the terms and conditions contained in Article V hereof so long as such variances do not result in conditions which are inconsistent with the general concept, harmony and values within the Subdivision.

Section 7. Association Property and Management. Declarant shall convey to the Association a perpetual easement to the property shown on the plat other than the Lots, open space and other private property therein designated. Such conveyance shall take place not later than Twenty-four (24) months after the date the first Lot is conveyed to an Owner At the time of the conveyance, the Association property shall be free of any mortgage, judgement liens or similar liens or encumbrances. The Association shall hold such property subject to the right of the Declarant, its successors and assigns, to lay, install, construct and maintain roads utilities and other improvements in the areas designated therefor on the plat. The proper rights conveyed to the Association shall be held by it for the use, benefit and enjoyment, in common, of each Owner, Each Owner, in common with all other Owners, shall have the right and privilege to use and enjoy the property of the Association for the purposes for which the same were designed. This right and privilege shall be appurtenant to and pass with the title to the Lot. The right to the use and enjoyment of such property shall be subject to:

(a) The right of the Association or its assigns to charge reasonable admission and other fees for use of facilities; and

(b) The right of the Association to suspend the voting rights and rights to use the Association property by an Owner for any period in which any assessment against his Lot remains unpaid or for a period not to exceed sixty (60) days for any infraction of published rules and regulations of the Association.

(c) The Association shall supervise, manage, use, repair, provide utility services and maintain its property and easements, at its own cost and expense, in such manner as is determined by its Board of Directors from time to time.

(d) The Association constitutes the organization for the maintenance of find payment of taxes on the open space required by Section 6.11 "Open Space Requirements" of the County of La Plata Land Use Code providing for adequate future stewardship and maintenance of open space and common areas.

The provisions of this Section 7 are applicable to all of the property and assets owned by the Association or any Sub-Association thereof but are not applicable to property, assets and easements owned or reserved by Declarant such as the appurtenant facilities and water rights.

(e) The Association may obtain and pay for the services of a managing agent to manage its affairs, or any part thereof, to the extent deemed advisable by the Board of Directors thereof. The Association may also employ other personnel deemed to be necessary or desirable for the proper operation of the assets of the Association whether such personnel are furnished or employed directly by the Association or by any person, firm or entity with which the Association contracts. The Association may obtain and pay for legal and accounting services necessary or desirable in connection with its business and shall provide such operating statements, reports and budgets as it may deem advisable.

(f) The Board is authorized to charge, at its actual cost, an administrative fee to other entities for which it collects and disburses assessments and dues, as provided in this Declaration, such as the domestic water provider. The Board shall comply with all lawful requests of such other entities for the imposition of assessments, dues and charges, increases therein and enforcement remedies related thereto

Section 8. Amendment. Declarant or its successors or assigns reserves the absolute right to amend or add to the plat filings from time to time as may be authorized by the applicable governmental entity.

Section 9. Easements.

(a) Easements for the installation and maintenance of utilities and drainage facilities, if any, are hereby reserved by Declarant for itself and its assignees over the ten (10) feet adjacent to the boundaries of each Lot. No conveyance of a Lot by Declarant shall be deemed to be a conveyance or release of the foregoing easement in the absence of a specific expression in writing and properly acknowledged of intent to do so. The Association is hereby granted the right to grant and convey to any person or firm casements and rights of way in, on, over or under any portion of Association property in carrying out any duty or power belonging to the Association.

(b) Declarent expressly reserves for the benefit of all properties reciprocal casements for access, ingress and egress for all owners and Declarant to and from their respective lots; for installation and repair of utility services; for encroachment: of improvements constructed by Declarant or authorized by the Board over Association assets; for drainage of water over, across and upon adjacent lots and property of the Association resulting from the normal use of adjoining lots or property of the Association; and for necessary maintenance and repair of any improvement. Such easements may be used by the Declarant, its successors, assigns, the Association and all owners, their guests, tenants and invitees.

Section 10. Liability Insurance The Association and Sub-Association shall be required to maintain liability insurance insuring against injury to persons or property as a result of use of the property of the Association. Such insurance shall be maintained with a company licensed to do business in the State of Colorado and shall have minimum amounts of liability for injury or damage to persons or property in the amount of ONE MILLION DOLLARS (S1,000,000.00), with such amount to be adjusted periodically and increased if the same is required in the reasonable judgment of the Board of Directors of the Association and if such increased amounts of insurance are available for purchase at such time.

Section 10. No Representations Except as expressly set forth herein, Declarant makes no representations regarding use of the property of tile Association or within the Subdivision and the restrictions placed thereon by these Covenants or by the County of La Plata or by other governmental authorities. Further, Declarant makes no representations as to the existence, preservation or permanence of any view from any Lot

Section 11. Notices. Any notice required to be sent to any Owner under the provisions of this Declaration shall be deemed to have been properly sent when mailed, postage prepaid, to the last known address of the person who appears as such Owner of the records of the Association at the time of such mailing. Each owner shall keep the Association informed of any address changes.

Section 13. Singular and Plural Words used herein, regardless of the number and gender specifically used, shall be deemed and construed to include any other number singular or plural, specifically and any other gender, masculine, feminine or neuter. As the context requires.

Section 14. Cumulative Remedies. Each remedy provided herein is cumulative and not exclusive. The Association, without waiving its right to foreclose an assessment lien, may at its option bring a suit to enforce and/or collect a delinquent assessment obligation or any violation of any provision of the Declaration.

Section 15. Liberal Construction The provisions of this Declaration shall be liberally construed to promote and effectuate the purposes hereof.

Section 16. All captions and titles used in this Declaration are intended solely for convenience of reference and shall not affect that which is set forth in any of the provisions hereof.

Section 17. Transfer And Tap Fee A fee of $1,000,00 is due and payable at the time of the transfer of any legal or equitable interest in any lot except a transfer made to related persons for estate planning purposes or in lieu of foreclosure or by virtue of law through any judicial or administrative proceeding or a transfer made by Declarant The transfer fee shall be paid to Declarant's General Partner and commingled but accounted for separately from other assets of Declarant. The transfer fee proceeds shall be used for such purposes as Declarant may determine to be in the best interest of the development of the subdivision including but not limited to infrastructure, association property, administrative expenses and capital improvements but shall not be used for Declarant's debt reduction or its property acquisition. Declarant shall provide an accounting annually to the association as to the income and expenses of the transfer fee fund Payment of the fee is subject to the lien and collection remedies here: , provided for the association and the association is authorized to take such action as Declarant may request to assure the recovery of the transfer fee. At such time as Declarant specifies to the association in writing that the subdivision project is totally sold out, the transfer fee shall thereafter be payable to the association and collectable in accordance with assessment procedures. The association shall then be entitled to use the transfer fee income for any association purpose At any time after the association becomes entitled to receive the transfer fee, the membership may vote to terminate or modify the transfer fee.

A water tap fee for connecting to the water system will be assessed in the amount of Two Thousand Five Hundred Dollars ($2,500) at the time of transfer of ownership from Declarant.

Section 18. Revegetation Land owners shall revegetate disturbed areas after construction.