DECLARATION OF COVENANTS, CONDITIONS AND

RESTRICTIONS OF

SHORTVILLE SUBDIVISION

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS is made this day __ of November, 1983, by LYLE R. SHORT and JILL SHORT, hereinafter collectively referred to as the "Declarant." and MICHAEL D. SHEPHERD and NANCY K. SHEPHERD, owners of Lot 5 in SHORTVILLE SUBDIVISION.

RECITALS:

1. Declarant is the fee simple owner of certain real property located in the County of La Plata, State of Colorado, said property being, more particularly described as follows:

2. Michael D. Shepherd and Nancy K. Shepherd are the owners of Lot 5, SHORTVILLE SUBDIVISION, and have agreed to become bound by and to have their land subjected to this Declaration.

3. That said Declarant desires to submit the real property herein above set forth and any improvements thereon to the Declaration of Covenants, Conditions and Restrictions and make any subsequent transfer of lots within SHORTVILLE SUBDIVISION subject to the covenants, restrictions and conditions.

4. That the subdivided real property known as SHORTVILLE SUBDIVISION was subdivided and the plat thereof was recorded in the Office of the Clerk and Recorder, La Plata County, Colorado, on the 6th day of January, 1982 at Reception No. 46481 .

5. Declarant desires to create thereon a residential community, to insure the attractiveness of the Property, to prevent nuisances, protect the value and amenities of the Property, and to provide for the maintenance of the roads within the subdivision.

6. That the following conditions, covenants, reservations and restrictions shall henceforth apply to all lots within SHORTVILLE- SUBDIVISION, and any amendments thereto.

7. NOW, THEREFORE, hereby declares that all of the property shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions which are for- the purpose of protecting the value and desirability of and which shall run with the real property and be binding on all parties having any right, title and/or interest in the described Property, or any part thereof, their heirs, successors, and assigns, and shall inure to the benefit of each owner thereof

Section 1.2 "Declarant" shall mean and refer to LYLE R. SHORT and JILL SHORT, their successors or assigns if such successors or- assigns should acquire more than three (3) undeveloped lots from Declarant for the purpose of development.

Section 2.1 Membership. Every person or entity who is an owner shall be automatically a member of the Association.

Section 2.2 Voting Rights. The Association shall have two classes of voting membership

CLASS A: Class A members shall be all the owners of Declarant. The Declarant may, however, become a Class A member upon termination of their Class B membership as hereinafter provided. Class A members shall be entitled to one vote for each single family lot owned. When more than one person holds an interest in any single family lot all such persons shall be members and the vote provided for herein shall be exercised as they among themselves determine. In no event, shall there be more than one (1) vote cast with respect to any single family lot.

CLASS B: The Declarant shall be the sole Class B member and shall be entitled to three (3) votes for each single family lot owned. Class B, membership shall cease and be converted to Class A Membership on the happening of' either of the following events, whichever occurs earlier.

(i) When the total votes outstanding is equal to the total votes outstanding in the Class B Membership or

(ii) On the 31st day of December, 1990; or

(iii) At such time as the Declarant voluntarily relinquishes its Class B membership rights .

ARTICLE III

Section -3.1 Creation of the Lien and Personal Obligation for Assessments. Each Owner of any Lot within the Property other than the Declarant, by acceptance of a deed thereof whether or not it shall be so expressed therein or by acceptance of any other conveyance thereof (except a conveyance in connection with the establishment of a mortgage), shall be deemed to covenant and agree to pay to the Association:

(a) Monthly assessments for road maintenance;

(b) Monthly assessments for water system maintenace;

(c) Annual assessments or charges;

(d) Special assessments for capital improvements or maintenance thereof;

(e) Special assessments in connection with an Owner's failure to perform the required exterior maintenance or improvements of his property or in connection with an Owner's failure to comply with this Declaration all as hereinafter described with more particularity.

Section 3.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents of the Property; for the improvement and maintenance of all roads and rights-of-way; for improvement to and maintenance of the water system; and for such other purpose as may be decided upon by the Board of Directors of the Association.

Section 3.3 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 deferring in whole or in part the cost of any construction, reconstruction, repair or replacement of the roads, right-of-way, and water system, provided that any such assessments shall have the assent of a majority of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose .

Section 3.4 Special Assessments for Maintenance of Property or Enforcement of the Declaration. In the event that the Owner of any lot shall fail to maintain the premises and the improvements situated thereon in a manner consistent with this Declaration and Design Review Standards-found in Article IV, the Board of Directors of the Association shall have the right through its agents and employees to enter upon said parcel and to repair, maintain and restore the same and exterior of the buildings and any other improvements erected thereon, including landscaping, in the manner, contemplated by the above provisions. The cost of such exterior maintenance, construction or reconstruction shall thereupon be added to and become a part of the annual assessment to which said parcel is subject to as aforesaid .

Section 3.5 Due Date, Date of Commencement, and Termination of Annual Assessments provided herein shall commence on such date in the By-Laws of the Association or in any Supplementary Declarations. The assessment shall be on a full calendar year basis with the first annual assessment being adjusted according to the number of months remaining in the calendar year. At least thirty (30) days in advance of each calendar year, the Board of' Directors of the Association shall fix the amount of the annual assessment against each lot. Written notice of the annual assessment shall be sent to each owner subject thereto. The Board of Directors shall fix the annual and special assessments as well as establish the method of installment payments and the due dates for said assessments. Annual and Special assessments shall be without limitation unless otherwise specified in a Supplementary Declaration.

Section 3.6 Due Date of Commencement, and Payment of Monthly Assessment. The monthly assessments, provided herein for road maintenance shall commence on the lst day of the month following an Owner's purchase, and shall be due and payable on the 1st day of each month thereafter. The assessment provided for in this Section shall be set aside and be used solely for the upgrading and maintenance of the roads and rights-of way within the subdivision and for such purposes as may be decided upon by the Board of Directors

Section 3.7 Affect of Nonpayment of Assessments and Personal Liability of the Owner. Any assessment not paid within thirty (30) days after the due date, (being the date specified in Section 3.5 hereof) shall become delinquent and shall bear interest from the due date at eighteen percent (18%) per annum. The assessment interest and any cost of collection thereof shall become a continuing lien on the property, which shall bind such property in the hands of the then Owner, his heirs, divisees, personal representatives, successors and assigns. In addition, to the rights, it shall be the personal obligation of the then Owner to pay such assessment and such personal obligation shall continue even though the Owner's interest in the property shall be transferred.

The Association may bring legal action against the new Owner personally obligated to pay the delinquent assessment or to foreclose the lien against the property and there shall be added to the amount of such assessment all costs incurred by the Association in foreclosing the lien or in collecting the amount owing, including any reasonable attorney's fees.

Section 3.8 Subordination of the Lien to Mortgage. The lien of the assessment provided for herein shall be subordinate to the lien of any mortgages now or hereafter placed upon the property subject, to assessment; PROVIDED, HOWEVER, such subordination shall apply only to the assessments which have become due and payable prior to the sale and transfer of such property pursuant to the decree of foreclosure and other proceedings in lieu of foreclosure . Such sale or transfer shall not release such property from liability for any assessment thereafter becoming due nor from the lien of any subsequent assessment.

ARTICLE IV

Section 4.1 Single Family Use Restrictions. All lots within the Property shall be used for single family lot purposes. Single family lots shall not contain more than one (1) single family residential unit per lot, plus an attached or detached guest home, plus one detached outbuilding.

(a) No commercial uses shall be allowed except that a home occupation may be carried out in the residence on a lot, PROVIDED, it does not interfere with the residential character of the dwelling or neighborhood, is secondary to the use of the residence as a dwelling place, causes no undue parking or traffic problems; and has no outward appearance of such home occupation.

(b) No oil or gas drilling with the extraction thereof or mining operations shall be permitted on these lots .

(c) Septic, or sewage disposal system will be permitted on any lot for use of single family residence or guest home.

(d) No noxious or offensive activity shall be 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 the Owners in the enjoyment of lots or the out properties. No garbage or trash or other waste shall be placed or stored anywhere on any lot other than in covered, sanitary containers. No waste shall be burned on any lot. All garbage and trash collection and disposal shall be in strict compliance with the rules of the Association.

(e) No domestic animals totaling more than three (3) generally recognized house or yard pets shall be maintained on any lot, except that each lot is permitted to have horses not exceeding three (3) in number. All such pets shall at all times be kept under control by its owner while anywhere on the Property. Animals shall not be permitted to roam at will, and at the option of Declarant or Association, steps may be taken to control any animals not under the immediate control of their owners, including the right to impound animals not under such control, and charge substantial fees to their owner for their return. No stallions are permitted.

(f) No exterior fires shall be permitted except for barbeque fires contained within receptacles designed for that use.

(g) No overnight parking upon any road within SHORTVILLE SUBDIVISION will be permitted. All overnight parking must be upon the residential lot.

(h) No signs shall be permitted within any lot with the exception of those listed below:

(i) Signs required by legal proceedings;

(ii) Residential identification signs;

(iii) One "For Sale" sign which shall not exceed a total face area of six (6) square feet.

(i) Resubdivision of single family lot shall not be permitted which will increase the density or change the land use defined within these covenants.

(j) No junk vehicles or vehicles not with current registration shall be allowed on the Property or any lot within SHORTVILLE SUBDIVISION.

(k) All out-buildings shall be attractive and in keeping with the primary dwelling on each lot.

(l) No outdoor toilets shall be placed or maintained on the Property or any lot within the subdivision, at any time.

(m) No structure of a temporary character, travel trailer, recreational vehicle, basement, tent, shack, barn or other outbuilding shall be used or maintained as a residence, on any lot within the subdivision.

(n) Natural trees and vegetation indigenous to the area shall be reasonably preserved on the lots, and shall not be removed except to the extent reasonably necessary in the construction of buildings and access routes and for landscaping.

ARTICLE V

Section 5.1 Effective Official Development Plan and Other Filed Documents Filed With The County of La Plata. The official development plan of SHORTVILLE SUBDIVISION and other related documents which are on record in the office of the Clerk and Recorder of the County of La Plata or other applicable government agencies has the affect and only the affect described by the statutes of the State of Colorado in the rules and regulations of said County. Said plan and related documents are not intended to create any private property or contract rights in the owners and residents of said development. During an extended development program, various factors may intervene which may hinder the effectiveness of the said plan and which may threaten the benefits to be derived by the residents, owners and public unless the plan can be modified as prescribed by the applicable laws.

Section 5.2 Duration and Amendments. The covenants and restrictions of this Declaration shall run with and bind the land for a term of twenty (20) years from the date this Declaration is recorded, after which time , they shall be automatically extended for successive periods of five (5) years. This Declaration may be amended during the first twenty (20) year period by an instrument signed by not less than seventy-five percent (75%) of the lot owners and thereafter by an instrument signed by not less than fifty-one percent (51%) of the lot owners; PROVIDED, HOWEVER, that no such amendment shall be effective in any event prior to December 31, 1990, without written approval of the Declarant. Any amendment must be recorded.

Section 5.4 Assignment of Declarant's Rights and Duties. Any and all of the rights, powers and reservations of Declarant herein contained may be assigned by the Declarant to the Association to assume any and all of the duties of the Declarant hereunder and upon the Association's evidencing its consent in writing to accept such assignment, said Association, to the extent of such assignment, shall assume Declarant's duties hereunder, have the same rights and powers and be subject to the same obligations and duties as are given to and assumed by the Declarant hereunder. Upon such assignment, and to the extent thereof, Declarant shall thereafter be relieved from all liabilities, obligations and duties hereunder.

Section 5.6 Benefits and Burdens. The terms and provisions contained in this Declaration shall bind and inure to the benefit of the Declarant, the lot, and the private dwelling unit owners located within the Property and their respective heirs, successors personal representatives and a assigns.

Section 5.7 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 and plural, in any other gender, Masculione or feminine, as the context requires.

ARTICLE VI

These convenants, conditions and reservations may be enforced as provided hereinafter by the Declarant acting for himself, by the Association and by any Owner. In the event that any covenant shall be violated the offending party may be notified in writing by certified mail, return receipt requested by any enforcing party as defined above. Such notification shall state the name and description of the covenant which has been violated. The offending party shall have a minimum of ten (10) days to remedy the violation. In the event the violation continues enforcement shall be by any proceeding at law or in equity and may seek an order to restrain the violation or to recover damages including reasonable attorney's fees or both. Failure by the Association or by any owner to enforce any covenant or restriction contained herein shall in no event be deemed a waiver of the right to do so thereafter.

IN WITNESS WHEREOF the parties have executed this instrument on the day and year first above written.

Lyle R. Short

Jill Short

Michael D. Shepherd

Nancy K. Shepherd

View Shortville Subdivision Plat

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