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HomeMy WebLinkAbout21.03 Master Declaration of Covenants, Conditions & Restrictions• MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SPRING VALLEY RANCH P.U.D. • • s • 1 TABLE OF CONTENTS Page ARTICLE I DECLARATION 11 ARTICLE II DEFINITIONS 12 2.1 Act. 12 2.2 Allocated Interests 12 2.3 Annexable Property . 13 2.4 Annexation Deed 13 2.5 Articles of Incorporation 13 2.6 Assessment 13 2.7 Association Property 14 2.8 Budget 14 2.9 Building Envelope 14 2.10 Bylaws 14 2.11 Cabin Lot 14 2.12 Cabin Interest 14 2.13 Club Property 15 2.14 Common Area 15 2.15 Common Expenses 15 2.16 Common Interest Community 17 2.17 County 17 2.18 Declarant 17 2.19 Declaration of Easements and Rights 17 2.20 Deed of Trust 17 2.21 Design Guidelines 17 2.22 Design Review Committee 18 2.23 Estate Lot 18 2.24 Executive Board 18 2.25 Featured Builder 18 2.26 Household Pets 18 2.27 Improvements 18 2.28 Lease 18 2.29 License Agreement 18 2.30 Limited Common Area 19 2.31 Lot 19 2.32 Master Association 19 2.33 Master Declaration 19 2.34 Master Rules and Regulations 19 2.35 Member 19 2.36 Mortgage 19 2.37 Mortgagee 19 2.38 Mortgagor 19 • • • 2.39 Mountain Lot 19 2.40 Notice and Hearing 19 2.41 Occupant 19 2.42 Owner 20 2.43 Permitted Exceptions 20 2.44 Person 20 2.45 Plat 20 2.46 P.U.D. Plan 20 2.47 Real Estate Transfer Assessment 20 2.48 Registered Builder 20 2.49 Record or Recorded 20 2.50 Regular Assessment 21 2.51 Reimbursement Assessment 21 2.52 Shared Driveway 21 2.53 Special Assessment 21 2.54 Special District 21 2.55 Subassociation 21 2.56 Subassociation Common Area 21 2.57 Supplemental Declaration 22 2.58 Supplemental Plat 22 2.59 Water System 22 2.60 Wildfire Mitigation Plan 22 2.65 Wildlife Mitigation Plan 22 ARTICLE III GENERAL RESTRICTIONS APPLICABLE TO THE COMMON INTEREST COMMUNITY 22 3.1 Master Development Control 23 3.2 Violation of Law, Insurance, Etc 23 3.3 General Maintenance of Common Interest Community 23 3.4 Residential Use and Occupancy 24 3.5 New Construction Required; No Temporary Buildings or Occupancy 25 3.6 Building Envelopes 25 3.7 Design Guidelines 25 3.8 Annoying Light, Sound or Odor 26 3.9 Noxious or Offensive Activities; Nuisances; Construction Activities 26 3.10 No Hazardous or Unsafe Activities 27 3.11 No Woodburning Fireplaces or Stoves; Outside Burning; Fire Hazards 27 3.12 No Firearms or Hunting 27 3.13 No Unsightliness; Outside Personal Property Storage and Clothes Drying 27 3.14 Vehicle Parking, Storage, Operation and Repair. 28 3.15 Garages 29 3.16 Restrictions on Equipment, Tanks, Antennae, Satellite Dishes, Etc 29 3.17 Restrictions on Mining or Drilling 30 3.18 Excavations 30 3.19 No Interference with Waterways, Drainage or Irrigation Systems, or with Wetlands/Riparian Habitats 31 • • • 3.20 Lakes, Ponds, Creeks, Ditches 31 3.21 Lake Banks; Beaches 31 3.22 Fences and Walls 31 3.23 Tree and Natural Shrub Preservation 32 3.24 Use of Easement Areas; Utility Installation 33 3.25 Landscaping, Irrigation 33 3.26 Tennis Courts and Basketball Goals 34 3.27 Swimming Pools, Spas, and Related Equipment 34 3.28 Signs and Advertising 34 3.29 Camping and Picnicking 34 3.30 Soliciting 34 3.31 No Individual Water Wells or Individual Sewage Disposal Systems; Exceptions 34 3.32 Regulation of Pesticides 35 3.33 Maintenance of Visibility at Street Intersections 35 3.34 Restoration of Improvements in the Event of Damage or Destruction 35 3.35 Leases 35 3.36 Right of Entry 37 3.37 Damage by Owners During Construction 37 3.38 Restrictions on Resubdivision, Property Restrictions, and Rezoning 37 3.39 Health, Safety and Welfare 38 3.40 Implementation and Variances 38 3.41 Declarant Activities 39 3.42 Landowner Obligations 39 3.43 Recognition of Right -to -Farm 39 ARTICLE IV ROADS AND STREETS IN COMMON INTEREST COMMUNITY 40 4.1 Ownership and Maintenance 40 4.2 Easement for Access 40 4.3 Reserved Declarant Rights 40 4.4 No Liability for Gatehouses or Entry Gate or Security Patrol 41 4.5 Rights Appurtenant to Club Property 41 ARTICLE V WATER AND SEWER SYSTEMS 42 5.1 Water System 42 5.2 Sewer System 42 5.3 Ownership and Maintenance of Systems 42 5.4 Sprinkler Irrigation System 42 5.5 Ownership and Maintenance of Sprinkler Irrigation System 43 5.6 Easements 43 ARTICLE VI DESIGN REVIEW COMMITTEE 43 6.1 Establishment of Design Review Committee 43 6.2 Establishment of Subcommittees 44 6.3 Meetings and Action of Committee 44 6.4 Compensation; Expenses 44 4 • • • 6.5 Records of Actions 44 6.6 Approvals in Annexed Areas 44 6.7 Design Guidelines 44 6.8 Design Review Fee 45 6.9 Registration of Builders 45 6.10 Design Review and Construction Process 46 6.11 Submission of Plans, Specifications and Data 46 6.12 Criteria for Approval or Disapproval 47 6.13 Decisions of Committee; Binding Effect 47 6.14 Completion of Work After Approval 47 6.15 Right to Inspect 48 6.16 Notice of Completion; Inspection of Work; Correction of Defects 48 6.17 Certificate of Compliance 49 6.18 Improvements Must Conform to Approvals 49 6.19 Committee Power to Grant Variances 49 6.20 Nonliability for Approval or Disapproval of Plans and Specifications, for Issuance of Certificates of Compliance, or for Registration of Builders 50 6.21 Featured Builders 51 6.22 Enforcement 51 ARTICLE VII ASSOCIATION PROPERTY 51 7.1 Use and Enjoyment of Association Property 51 7.2 Recreational, Health and Social Facilities 52 7.3 Master Association May Regulate Use of Association Property 53 7.4 Master Association to Maintain and Improve Association Property 53 7.5 No Partition of Association Property 53 7.6 Owner Liability for Owner or Occupant Damage to Association Property 53 7.7 Damage or Destruction to Association Property 54 7.8 Condemnation of Association Property 54 7.9 Title to Association Property Upon Dissolution of Master Association 54 7.10 Mechanic's Liens on Association Property. 54 ARTICLE VIII DECLARANT'S RESERVED RIGHTS 55 8.1 Construction of Improvements 56 8.2 Sales, Marketing and Management 56 8.3 Merger 57 8.4 Declarant Control of Master Association 57 8.5 Annexation of Additional Properties 57 8.6 Annexation Procedure 57 8.7 Annexation of Additional Unspecified Real Estate 58 8.8 Withdrawal Rights and Procedure 58 8.9 Effect of Expansion or Contraction 58 8.10 Subdivision of Lots or Parcels 59 8.11 Transfer of Additional Property to Master Association 59 8.12 Other Reserved Development Rights 59 • • • 8.13 Owner Review, Acceptance and Waiver of Rights Re: P.U.D. Plan and Declarant's Reserved Rights 60 8.14 Declarant As Attorney -in -Fact for Owners 60 8.15 Transfer of Declarant's Reserved Rights 60 8.16 Termination of Declarant's Reserved Rights 60 ARTICLE IX EASEMENTS 61 9.1 Easements for Incidental Encroachments 61 9.2 Blanket Master Association Utility and Drainage Easement Over Streets, Roads, Shared Driveways, and Association Property 61 9.3 Master Association Administrative Easement Over Streets Roads Shared Driveways, and Association Property 61 9.4 Declarant Easement Over Streets, Roads, Shared Driveways, and Association Property 61 9.5 Utility, Drainage, and/or Irrigation Easements 62 9.6 Water Body Maintenance Easements 62 9.7 Fence Maintenance Easements 62 9.8 Berm Maintenance Easements 62 9.9 Equestrian/Pedestrian Trail Easement 63 9.10 Pedestrian/Bike Trail Easement 63 9.11 Conservation Easement 63 9.12 Open Space and Wildlife Movement Corridor Easements 64 9.13 Defensible Space, Fuels Reduction Easements and Fuelbreak Easements 64 9.14 Meadow Parcel Easement 64 9.15 Park Easements 64 9.16 Shared Driveway Easements 65 9.17 Easements for Benefit of Club Property 66 9.18 Blanket Emergency Services Easement 66 9.19 Easements Deemed Created 66 9.20 Restrictions on Owners in Easement Areas 66 9.21 Recorded Easements and Licenses 67 ARTICLE X WILDFIRE MITIGATION PLAN 67 10.1 Wildfire Mitigation Plan 67 10.2 Access, Inspection and Enforcement 67 10.3 Defensible Space and Defensible Space Easement 67 10.4 Fuels Reduction Easement 68 10.5 Fuelbreak Easement 68 10.6 Linked Defensible Space and Overlot Thinning 68 10.7 Universal Construction Standards 68 10.8 Specific Construction Standards 69 ARTICLE XI WILDLIFE MITIGATION PLAN 69 11.1 Wildlife Mitigation Plan 69 11.2 Garbage, Trash; Compost, Containers 69 11.3 Animals and Wildlife 69 • • 11.4 Raptor Nest Protection 71 11.5 Wildlife Damage 71 11.6 Wetlands and Riparian Areas 71 11.7 Golf Course and Open Space Management. 71 11.8 Trail Seasonal Use Restrictions 72 11.9 Tree and Natural Shrub Preservation 72 11.10 Weed Control 72 11.11 Residential Landscaped Areas 73 11.12 Security Enforcement 73 ARTICLE XII REAL ESTATE TRANSFER ASSESSMENTS TO THE WILDLIFE AND WILDFIRE TRUST 73 12.1 Establishment 73 12.2 Purpose and Use of Transfer Assessments 73 12.3 Definitions 74 12.4 Exclusions 75 12.5 Payment and Reports 78 ARTICLE XIII MASTER ASSOCIATION 78 13.1 Master Association 78 13.2 Master Association Executive Board 78 13.3 Membership in Master Association 79 13.4 Voting Rights of Members 79 13.5 Period of Declarant Control of Master Association 80 13.6 Termination of Contracts and Leases of Declarant 82 13.7 Master Association/Subassociations 83 ARTICLE XIV POWERS AND DUTIES OF MASTER ASSOCIATION 83 14.1 General Powers and Duties of Master Association 83 14.2 Power to Grant Easements 83 14.3 Power to Convey or Encumber Association Property 83 14.4 General Power to Provide Services and Facilities to Owners 84 14.5 Power to Provide Services to Subassociations 84 14.6 Power to Provide Special Services to Owners 85 14.7 Power to Charge for Special Association Property Uses and Special Master Association Services. 85 14.8 Power to Acquire Property and Construct Improvements 85 14.9 Power to Adopt Master Rules and Regulations 85 14.10 Power to Contract with Employees, Agents, Contractors, Districts, Consultants and Managers 86 14.11 Power to Assign Future Income 86 14.12 Duty to Accent Property and Facilities Transferred by Declarant 86 14.13 Duty to Maintain and Care for Association Property 87 14.14 Duty to Pay Taxes 87 14.15 Duty to Keep Master Association Records 87 • 14.16 Duty to Support Design Review Committee 87 14.17 Insurance 87 14.18 Damage to Common Interest Community 92 ARTICLE XV ASSESSMENTS 93 15.1 Assessment Obligation and Lien. 93 15.2 Statutory Lien 94 15.3 Lien Superior to Homestead and Other Exemptions 94 15.4 Priority of Lien 94 15.5 Perfection of Lien 95 15.6 Regular Assessments. 95 15.7 Master Association Budget 96 15.8 Reserves Fund Account 97 15.9 Special Assessments 97 15.10 Reimbursement Assessments 97 15.11 Effect of Nonpayment of Assessments; Remedies of the Master Association 98 15.12 Statement of Unsaid Assessments 98 15.13 Assessments for Tort Liability 99 15.14 Working Capital Fund 99 ARTICLE XVI EMINENT DOMAIN 100 . 16.1 Definition of Taking 100 16.2 Representation in Condemnation Proceedings of Association Property 100 16.3 Award for Association Property. 100 16.4 Taking of Lots 100 16.5 Miscellaneous 101 ARTICLE XVII GENERAL PROVISIONS 101 17.1 Duration of Master Declaration 101 17.2 Termination of Common Interest Community 101 17.3 Amendment of Master Declaration and Plat 101 17.4 Compliance; Enforcement 102 17.5 Rights of First Mortgagees 103 17.6 Club Property and Facilities 104 17.7 Club Property Hazards, Risks and Liabilities; Disclosure, Assumption of Risk, Release and Indemnification 105 17.8 Notice 107 17.9 No Dedication to Public Use 107 17.10 Interpretation of Master Declaration and Supplemental Declarations, Conflicts with Act 107 17.11 Conflict With Plats 107 17.12 No Express or Implied Covenants on Lands Not Annexed. 108 17.13 Violations Constitute a Nuisance 108 • 17.14 Declarant's Disclaimer of Representations and Warranties 108 17.15 Captions 108 • • • 17.16 Singular Includes Plural 108 17.17 Remedies Cumulative 109 17.18 Costs and Attorneys' Fees 109 17.19 Governing Law; Jurisdiction 109 17.20 Severability. 109 17.21 Disclaimer Regarding Safety 109 ARTICLE XVIII DISPUTE RESOLUTION 109 18.1 Alternative Method for Resolving Disputes 109 18.2 Claims 109 18.3 Exemptions 110 18.4 Notice of Claim 110 18.5 Timely Initiation 111 18.6 Right to be Heard 111 18.7 Right to Inspect and Repair 111 18.8 Good Faith Negotiations 112 18.9 Mediation. 112 18.10 Arbitration 113 18.11 Consensus for Master Association Action 115 18.12 Liability for Failure to Maintain an Action 116 18.13 Utilization of Funds Resulting from the Cause of Action 116 18.14 Exclusive Remedy 116 18.15 Costs 116 • • MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SPRING VALLEY RANCH P.U.D. THIS MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SPRING VALLEY RANCH P.U.D. (the "Master Declaration"), effective this day of , is made and entered into by Spring Valley Holdings, LLC, a Delaware limited liability company (the "Declarant"). RECITALS 1. Declarant is the owner of that certain real property situated in Garfield County, Colorado, known as Spring Valley Ranch P.U.D. (Phase I), as more particularly described on Exhibit A attached hereto and by reference made a part hereof (the "Common Interest Community"). 2. Declarant is also the owner of certain contiguous and non-contiguous real properties that are more particularly described on Exhibit B attached hereto and by reference made a part hereof (the "Annexable Property"). 3. The Common Interest Community and most of the Annexable Property have been approved for development pursuant to a Planned Unit Development by the County of Garfield, State of Colorado, pursuant to Resolution No. 2008-55, recorded as Reception No. 747015 and Resolution No. 2008-56, recorded as Reception No. 747016 of the real estate records of Garfield County, Colorado and incorporated herein by this reference (the "P.U.D. Plan"). 4. Declarant intends to develop the Common Interest Community as a planned community under the Colorado Common Interest Ownership Act. Declarant reserves the right, but shall have no obligation, to annex to the Common Interest Community from time to time some or, all of (i) the Annexable Property, and/or (ii) additional unspecified real estate to develop such property as part of the planned community. Each such annexation shall be accomplished by the recording of a Supplemental Declaration, together with a Supplemental Plat or Map, which describe and depict any new Lots, Common Areas and/or Subassociation Common Areas thereby added to the Common Interest Community, and which describe any Common Elements or Limited Common Elements and any Cabin Interests thereby created. The Supplemental Declaration shall incorporate this Master Declaration by reference and shall set forth such amendments to the Master Declaration and such additional covenants, conditions, uses, restrictions, and reserved development rights as may be applicable to the annexed property. 5. Under the present P.U.D. Plan, Five Hundred Fifty -Eight (558) legally separate Lots and Nineteen (19) multi -family units are permitted to be created and developed. With the potential addition to the Common Interest Community of Annexable Property that is not covered by the P.U.D. Plan, and of additional unspecified real estate, the maximum number of Lots that may realistically be created and that Declarant reserves the right to create within the Common Interest Community is Five Hundred Fifty -Eight (558) Lots. Declarant reserves the right to further divide the Cabin Lots into undivided interests to be known as "Cabin Interests." 10 • • • 6. Spring Valley Ranch Master Association, a Colorado non-profit corporation, has been formed as a master association to exercise the functions set forth herein and to own, lease, hold, operate, care for and manage certain property for the common benefit of Owners and Occupants of Lots within, and of any other person acquiring an interest in, the Common Interest Community. 7. Declarant desires to establish covenants, conditions and restrictions upon the Common Interest Community and all properties that may hereafter be annexed thereto, and certain mutually beneficial restrictions and limitations with respect to the proper use, occupancy, improvement and enjoyment thereof, all for the purposes of enhancing and protecting the value, desirability and attractiveness of the Common Interest Community and enhancing the quality of life within the Common Interest Community. 8. Declarant desires and intends that the Owners, Mortgagees, Occupants and all other Persons hereafter acquiring any interest in the Common Interest Community shall at all times enjoy the benefits of, and shall hold their interests subject to, the covenants, conditions, restrictions, assessments, charges, servitudes, liens, reservations and easements contained in this Master Declaration, as it may be amended from time to time by Supplemental Declaration or otherwise. ARTICLE I DECLARATION NOW, THEREFORE, for the purposes set forth above and herein, Declarant for itself and its successors and assigns hereby declares that the Common Interest Community and all other property which becomes subject to this Master Declaration in the manner hereinafter provided, and each part thereof, shall be owned, held, transferred, conveyed, sold, leased, rented, hypothecated, encumbered, used, occupied, improved, altered, maintained and enjoyed subject to the covenants, conditions, restrictions, assessments, charges, servitudes, liens, reservations, exceptions, easements, privileges, rights and other provisions hereinafter set forth, for the duration hereof, all of which are declared to be part of, pursuant to, and in furtherance of a common and general plan of development, improvement, enhancement, use, occupancy and enjoyment of the Common Interest Community, and all of which shall run with the land and be binding upon and inure to the benefit of (i) the Common Interest Community and every part thereof, (ii) Declarant and its successors and assigns, (iii) the Master Association and its successors and assigns, (iv) every Member of the Master Association, and (v) all Owners, Occupants and other Persons having or acquiring any right, title or interest in or to the Common Interest Community or any part thereof, or any Improvement thereon, and their respective heirs, personal representatives, successors and assigns. Provided always, that to the extent this Master Declaration provides that Declarant shall not be bound by or is exempt from the application of certain covenants, conditions and restrictions contained herein, Declarant shall not be considered subject to such covenants, conditions or restrictions. Notwithstanding the foregoing, in no event shall the Annexable Property or any portion thereof be burdened or benefited by or otherwise subject to any of the terms or provisions of this Master Declaration until such property has been annexed to the Common Interest Community, at Declarant's sole option and discretion, and expressly subjected to the terms and provisions hereof 11 • • • (and any amendments hereof affecting the annexed property as may be contained in the Supplemental Declaration therefore), all as more particularly provided herein. This Declaration shall be recorded in Garfield County, Colorado and shall be indexed in the Grantee's index in the name of Spring Valley Ranch and the Master Association and in the Grantor's Index in the name of Spring Valley Holdings, LLC. ARTICLE II DEFINITIONS Unless otherwise expressly provided herein, the following words and phrases when used in this Master Declaration shall have the meanings hereinafter specified. 2.1 Act. "Act" shall mean the Colorado Common Interest Ownership Act as set forth in C.R.S. 38-33.3-101, et seq., as the same may be amended from time to time. 2.2 Allocated Interests. "Allocated Interests" means the Common Expenses liability and the votes in the Master Association allocated to each Lot and each Cabin Interest, which interests are allocated as follows: (a) The Common Expenses liability for each Lot is calculated on the basis of a fraction, the numerator of which is one (1) and the denominator of which is the total number of Lots in the Common Interest Community as of the date of the calculation. The denominator may be increased from time to time by the Declarant upon the addition of Lots to the Common Interest Community, which can be conveyed to third parties. Such fraction is then multiplied by the Common Expenses or the Assessment in question to determine that Lot's share thereof. The Common Expenses liability of a Lot is determined without reference to the size, location, value or use of the Lot. (b) If a Cabin Lot is divided into Cabin Interests pursuant to a Supplemental Declaration, the Common Expenses liability for that Lot shall be reallocated in equal shares amongst the Cabin Interests created for the Lot. For example, if a Lot is divided into undivided one-fourth (1/4) Cabin Interests, the Common Expenses liability for each such Cabin Interest shall be 25 percent of the Common Expenses liability allocated to that Lot. (c) Four (4) votes in the Master Association are allocated to each Lot in the Common Interest Community. (d) If a Cabin Lot is divided into Cabin Interests pursuant to a Supplemental Declaration, the votes allocated to that Cabin Lot should be reallocated equally amongst the Cabin Interests created for the Lot. For example, if a Lot is divided into undivided one-fourth (1/4) Cabin Interests, one (1) vote in the Master Association shall be allocated to each such Cabin Interest. (e) The foregoing allocations may not discriminate in favor of Lots or Cabin Interests owned by Declarant or an affiliate of Declarant. 12 • • • (f) If Lots are added to or withdrawn from the Common Interest Community, (i) the Common Expenses liability for each Lot shall be reallocated on the basis of a fraction, the numerator of which is one (1) and the denominator of which is the total number of Lots in the Common Interest Community following the addition or withdrawal of such Lots, and (ii) four (4) votes in the Master Association shall continue to be allocated to each Lot in the Common Interest Community following the addition or withdrawal of such Lots. 2.3 Annexable Property. "Annexable Property" means that certain real property described on attached Exhibit B, which property has not yet been annexed to the Common Interest Community or made subject to the terms and provisions of this Master Declaration. In the sole discretion of Declarant, all or a portion of the Annexable Property may from time to time be annexed to, and made a part of, the Common Interest Community in the manner provided in this Master Declaration. 2.4 Annexation Deed "Annexation Deed" means, for each particular portion of the Annexable Property, the first to occur any of (a) the first deed, executed by the Owner of such portion other than the Declarant, which shall be recorded after the recordation of this Declaration by which title to such portion of the Annexable Property shall be conveyed by such Owner to another party, (b) another instrument executed by the Owner of such portion, and if such Owner is other than Declarant, containing the executed and acknowledged written consent of Declarant to such instrument, referring to this Declaration and stating that such instruments shall constitute an Annexation Deed for such portion of the Annexable Property for the purposes hereof, or (c) any deed made in connection with an involuntary transfer of such portion of the Annexable Property, including, without limitation, any treasurer's deed made in connection with a tax sale of such portion of the Annexable Property or any sheriffs deed or public trustee's deed made in connection with any foreclosure, whether a judicial foreclosure or a foreclosure through the public trustee, of a Mortgage, as defined in this Declaration, encumbering such portion of the Annexable Property, or any deed in lieu of foreclosure of any such Mortgage; provided, however that, notwithstanding the foregoing, the term "Annexation Deed" shall, without limitation, not include any of (i) any deed from the Owner, other than Declarant, of such portion of the Annexable Property to another party if such deed shall expressly refer to this Declaration and state that such deed shall not constitute an Annexation Deed for the purposes hereof and shall contain the executed and acknowledged written consent of Declarant that such deed shall not constitute an Annexation Deed for the purposes hereof, or (ii) any bona fide Mortgage encumbering such portion of the Annexable Property, provided that, as is more particularly provided above, a deed made in connection with, or in lieu of, a foreclosure of such Mortgage shall constitute an Annexation Deed for the purposes hereof. 2.5 Articles of Incorporation. "Articles of Incorporation" or "Articles" means the Articles of Incorporation of Spring Valley Ranch Master Association, which have been filed with the office of the Secretary of State of the State of Colorado, as the same may be amended from time to time. 2.6 Assessment. "Assessment" means a Regular Assessment, Special Assessment, Reimbursement Assessment, or Real Estate Transfer Assessment. 13 • • • 2.7 Association Property. "Association Property" means, to the extent of the Master Association's interest therein: (a) all real and personal property, including Improvements, now or hereafter owned or leased by the Master Association, (b) all Common Areas now or hereafter owned, leased or maintained by the Master Association, together with the Improvements thereon; (c) all easements created or reserved on any Plat, or Supplemental Plat, or in this Master Declaration or in any Supplemental Declaration, or in any separate agreement, for the use and benefit of the Master Association and/or the Owners, and (d) any water rights, ditch rights, and water systems, facilities and/or features (or interests therein) that may be owned, leased or maintained by the Master Association or which the Master Association is entitled to use. Association Property may be located within or outside the Common Interest Community. With the exception of easements which are Association Property, Association Property does not include the Lots or the Improvements constructed thereon, and is subject to the Permitted Exceptions. 2.8 Budget. "Budget" means a written itemized estimate of the Common Expenses to be incurred by the Master Association in performing its functions under this Master Declaration and adopted by the Executive Board pursuant to Section 12.8 of this Master Declaration. 2.9 Building Envelope. "Building Envelope" means that portion of a Lot which may be depicted and designated as the "Building Envelope" on a Plat. If a Lot contains a platted Building Envelope, all Improvements on that Lot must be located entirely within the Building Envelope, including but not limited to dwellings, patios, decks, lawns, garages, kennels, approved privacy and garden fences, approved fenced horse enclosures, swimming pools, storage buildings, and other out buildings, facilities and amenities associated with the residence, but excluding roof overhangs. No disturbance shall be allowed outside the Building Envelope, including without limitation excavation, grading or clearing activities, Improvements, and landscaping, excepting the minimum disturbance required in connection with underground utilities, irrigation and drainage systems, and access driveways, and driveway features approved by the Design Review Committee including retaining walls, guard rails driveway lighting and landscaping (including vegetation manipulation where required by the Wildfire Mitigation Plan), and gate/entry features. In appropriate circumstances, as determined in each instance by the Design Review Committee in the exercise of its sole discretion, individual sewage treatment systems may be located partly or wholly outside the Building Envelopes on Lots for which such systems are approved. 2.10 Bylaws. "Bylaws" means the Bylaws of the Master Association which have been or will be adopted by the Executive Board of the Master Association, as the same may be amended from time to time. 2.11 Cabin Lot. "Cabin Lot" means any Lot which is designated as a Cabin Lot on a Plat, together with all Improvements thereon and appurtenances thereto 2.12 Cabin Interest. "Cabin Interest" means each undivided fee simple owners rated with respect to a Cabin Lot (including the Improvements thereon) pursuant to a Supplemental Declaration. 14 • • • 2.13 Club Property. "Club Property" means those certain properties adjacent to the Common Interest Community which are owned by the Declarant, its successors and assigns (the "Club Property Owner") and which are more particularly described on Exhibit C attached hereto and made a part hereof by this reference, together with all golf, tennis, swimming, clubhouse, other recreational, social and maintenance improvements and facilities that may be located thereon from time to time. In no event shall the Club Property be deemed a part of the Common Interest Community, or be burdened by this Master Declaration. The Club Property is not Association Property. This Master Declaration does not grant or create any rights to or for the benefit of the Owners or Occupants of Lots in the Common Interest Community to use or enjoy the Club Property or any part thereof or improvement or facility thereon for any purpose, except for such limited ingress and egress rights as may be expressly provided in the License Agreement. THE CLUB PROPERTY SHALL NOT BE A COMMON AREA. 2.14 Common Area. "Common Area" means any portion of the Common Interest Community designated in this Master Declaration or any Supplemental Declaration or on a Plat or any Supplemental Plat as Common Area or Limited Common Area or Open Space and which is owned or leased or maintained by the Master Association for the common use and enjoyment of the Owners and Occupants or some of them, including, but not limited to, pathways, trails, guard houses, and other security facilities and entry features. 2.15 Common Expenses. "Common Expenses" means any expenditures made or liabilities incurred by or on behalf of the Master Association, together with any allocations to reserves, including, but not limited to the following: (a) The costs of maintenance, management, operation, repair and replacement of the Association Property, and of all other parts of the Common Interest Community which are managed or maintained by the Master Association, but excluding any areas being managed or maintained at the expense of a Subassociation or a Special District; (b) The costs of Improvements constructed from time to time by the Master Association on or in connection with Association Property, if such costs were included within a duly adopted Budget; (c) Unpaid assessments; (d) The costs of management and administration of the Master Association, including, but not limited to, compensation paid by the Master Association to managers, accountants, attorneys and employees; (e) The costs of utilities and services (including, but not limited to, treated or untreated water, electricity, gas, sewer, trash pick-up and disposal and recycling), which are provided to the Master Association or the Common Interest Community or parts thereof and not individually metered or assessed to Lots, landscaping maintenance, and other services which generally benefit and enhance the value and desirability of the Common Interest Community or parts thereof and which are provided by or on behalf of the Master Association, but excluding any such utilities or services that may be provided by a Subassociation or a Special District; 15 • • • (f) The costs of insurance maintained by the Master Association as required or permitted herein, but excluding any insurance maintained by a Subassociation; (g) Reasonable reserves for contingencies, replacements and other proper purposes as deemed appropriate by the Executive Board to meet anticipated costs and expenses including, but not limited to, maintenance, repair and replacement of Association Property that must be maintained, repaired or replaced on a periodic basis. (h) The costs of bonding the members of the Executive Board, the officers of the Master Association, any professional managing agent or any other Person handling the funds of the Master Association; (i) Taxes paid by the Master Association; (j) Amounts paid by the Master Association for the discharge of any lien or encumbrance levied against Association Property or any portion thereof; (k) The costs and expenses incurred by the Design Review Committee, and compensation that may be paid by the Master Association to members of the Design Review Committee; (1) The costs and expenses incurred by any committees that may be established from time to time by the Executive Board, and compensation that may be paid by the Master Association to members of such committees; (m) The costs of any security or security systems or services that may be installed, operated, contracted for and/or monitored by the Master Association for the benefit of the Common Interest Community or any part thereof, (n) The costs of maintaining, operating and replacing informational, recreational, cultural, health-related or similar facilities or enterprises available to or for the benefit of all or a portion of the Common Interest Community; (o) The costs of implementing and administering the Wildlife Mitigation Plan and the Wildfire Mitigation Plan, to the extent such costs are incurred by or on behalf of the Master Association; (p) All expenses expressly declared to be Common Expenses by this Master Declaration or by a Supplemental Declaration, and all expenses lawfully determined to be Common Expenses by the Executive Board; and (q) Other expenses incurred by the Master Association for any reason whatsoever in connection with Association Property, or the costs of any other item or service provided or performed by the Master Association pursuant to this Master Declaration, any Supplemental Declaration, the Articles, Bylaws, Master Rules and Regulations, or Design Guidelines, or in furtherance of the purposes of the Master Association or in the discharge of any duties or powers of the Master Association. In the event that any common services furnished to the Common Interest Community are part of 16 • • • services that are provided to or benefit property in addition to the Common Interest Community, Common Expenses shall only include the cost of such services reasonably allocated to the services provided to the Common Interest Community. Costs and expenses incurred by a Special District shall not be considered Common Expenses, although charges made by a Special District to the Master Association for services provided by the Special District pursuant to a contract with the Master Association shall be Common Expenses. 2.16 Common Interest Community. "Common Interest Community" means the Common Interest Community described on attached Exhibit A and any additional real property which may from time to time be annexed to the Common Interest Community and made subject to this Master Declaration by Supplemental Declaration and Supplemental Plat, including all Lots, Cabin Interests, and Association Property, together with all Improvements and other amenities now or hereafter located thereon, and together with all easements, rights, appurtenances and privileges belonging or in any way pertaining thereto. If any property is subsequently withdrawn from the Common Interest Community pursuant to the provisions of this Master Declaration, the term "Common Interest Community" shall thereafter not include said withdrawn property. 2.17 County,. "County" means the County of Garfield, State of Colorado. 2.18 Declarant. "Declarant" means Spring Valley Holdings, LLC, a Delaware limited liability company, its successors, assigns, and affiliates. A Person shall be deemed to be a "successor and assign" of Declarant if specifically designated in a duly Recorded instrument as a successor or assign of Declarant under this Master Declaration and shall be deemed a successor and assign of Declarant only as to the particular rights or interests of Declarant under this Master Declaration which are specifically designated in that written instrument. The term "affiliate of Declarant" shall have the meaning set forth in Section 38-33.3-103 (1) of the Act. 2.19 Declaration of Easements and Rights. "Declaration of Easements and Rights" means that certain Declaration of Golf Facilities Development, Construction and Operational Easement that may be made by Declarant and recorded in the Office of the Clerk and Recorder of Garfield County, Colorado, which instrument may establish certain easements and restrictions on the Common Interest Community for the benefit of the Club Property and may establish certain easements and restrictions on the Club Property for the benefit of the Common Interest Community, all as may be more specifically set forth therein. 2.20 Deed of Trust. "Deed of Trust" means a Mortgage. 2.21 Design Guidelines. "Design Guidelines" means the rules, regulations, procedures, standards, guidelines and requirements promulgated from time to time by the Design Review Committee, and all amendments thereto, governing the review and approval or disapproval of proposed Improvements within the Common Interest Community, the performance of construction activities, the registration of Builders, and such other matters as the Design Review Committee considers necessary or appropriate. 17 • • • 2.22 Design Review Committee. "Design Review Committee" means the Design Review Committee provided for in Article 6 of this Master Declaration. 2.23 Estate Lot. "Estate Lot" means any Lot which is designated as an Estate Lot on a Plat, together with all Improvements thereon and appurtenances thereto. 2.24 Executive Board. "Executive Board" or "Board" means the Executive Board of the Master Association. 2.25 Featured Builder. "Featured Builder" means the Owner of a Lot in the Common Interest Community who (a) acquired such Lot from Declarant for the purpose of constructing a residential dwelling for resale to the general public; (b) has submitted to and obtained approval of plans and specifications for such residential dwelling from the Design Review Committee, and has otherwise complied with the provisions of Article 6 of this Master Declaration; and (c) has been designated in writing as a "Featured Builder" by Declarant. In accordance with the provisions of Article 6 hereof, the designation of any Owner of a Lot as a Featured Builder shall be in Declarant's sole and absolute discretion. 2.26 Household Pets. "Household Pets" means generally recognized household pets such as dogs, cats, fish, birds, rodents, and non-poisonous reptiles. 2.27 Improvements. "Improvements" means any improvements, structural or otherwise, alterations, additions, repairs, excavation, grading, landscaping or other work which in any way alter any property within the Common Interest Community, or the improvements located thereon, from its natural or improved state existing on the date this Master Declaration or a Supplemental Declaration for such property was first Recorded, including, but not limited to, dwelling units, buildings, outbuildings, additions, swimming pools, patio covers, awnings, the painting, staining or other change of any exterior surfaces of any visible structure, walkways, outdoor sculptures or artwork, sprinkler or irrigation systems, garages, carports, roads, driveways, parking areas, ponds, ditches, fences, screening walls, retaining walls, stairs, decks, flag poles, fixtures, landscaping (including the addition, alteration or removal of any tree, shrub or other vegetation), hedges, windbreaks, plantings, planted trees and shrubs, gardens, poles, signs, tanks, solar equipment, wind harnessing or other energy generating equipment, exterior air conditioning, water softener fixtures, utilities, antennae and satellite dishes or receivers. Once an Improvement has been constructed or accomplished on a property within the Common Interest Community, any subsequent alteration of or addition to or removal of that improvement shall also constitute an "Improvement" hereunder. 2.28 Lease. "Lease" means and refers to any agreement for the leasing, rental, use or occupancy of a residential dwelling located on a Lot within the Common Interest Community. The required terms and procedures for Leases are more particularly set forth in Section 3.37 below. 2.29 License Agreement. "License Agreement" means that certain Pedestrian Egress and Ingress License, given by the Declarant for the benefit of the Lot Owners, which agreement grants to Lot Owners a revocable license for egress and ingress over and across certain portions of the Club Property, all as more particularly described therein. 18 • • 2.30 Limited Common Area. "Limited Common Area" means a Common Area that is designated by this Master Declaration, by a Supplemental Declaration, on the Plat, or on a Supplemental Plat, for the exclusive use of one or more Lots in the Common Interest Community but fewer than all of the Lots. 2.31 Lot. "Lot" means any part of the Common Interest Community which is designated as a Lot (including without limitation a Mountain Lot, an Estate Lot, or a Cabin Lot) on a Plat or any Supplemental Plat or amendment, together with all Improvements thereon and appurtenances thereto. 2.32 Master Association. "Master Association" means the Spring Valley Ranch Master Association, a Colorado nonprofit corporation, its successors and assigns. 2.33 Master Declaration. "Master Declaration" means this instrument and all Supplemental Declarations, as this instrument and such Supplemental Declarations may be amended from time to time. 2.34 Master Rules and Regulations. "Master Rules and Regulations" means rules and regulations adopted from time to time by the Executive Board, as provided in Section 7.3 of this Master Declaration. 2.35 Member. "Member" means each Lot or any Cabin Interest Owner, including the Declarant. Membership in the Master Association shall be appurtenant to, and may not be separated from, ownership of a Lot or a Cabin Interest. 2.36 Mortgage. "Mortgage" means any mortgage, deed of trust or other security instrument, given voluntarily by the Owner of a Lot or a Cabin Interest, creating a real property security interest in a Lot or Cabin Interest and Recorded in the records of the Clerk and Recorder of the County. "First Mortgage" means a mortgage which is the first and most senior of the Mortgages on the same Lot or Cabin Interest. The term "Mortgage" does not mean a statutory, tax or judicial lien. The term "Deed of Trust" when used herein shall be synonymous with the term "Mortgage." 2.37 Mortgagee. "Mortgagee" means a mortgagee under a Mortgage or a beneficiary under a Deed of Trust, as the case may be, and the assignees of such Mortgagee. 2.38 Mortgagor. "Mortgagor" means the maker, obligor or grantor of a Mortgage. The term "Mortgagor" includes a trustor or grantor under a Deed of Trust. 2.39 Mountain Lot. "Mountain Lot" means any Lot which is designated as a Mountain Lot on a Plat, together with all Improvements thereon and appurtenances thereto. 2.40 Notice and Hearing. "Notice and Hearing" means a written notice and public hearing before the Executive Board, or a panel appointed by the Executive Board, as set forth in the Bylaws. 2.41 Occupant. "Occupant" means any Person who is a tenant in a residence on a Lot • or a Cabin Interest, pursuant to a Lease with the Owner thereof. "Occupant" also means any 19 • • 1 Person who is present within the Common Interest Community as a family member, guest or invitee of an Owner, an Occupant, the Declarant, or the Master Association. 2.42 Owner. "Owner" means the Person, including Declarant, or if more than one, all Persons collectively, who hold fee simple title of record to a Lot or to a Cabin Interest, including sellers under executory contracts of sale and excluding buyers thereunder, but does not include a Mortgagee or the holder of an interest in a Lot or a Cabin Interest solely as security for a debt. A reference herein to a "Lot Owner" shall also be deemed a reference (where applicable) to the collective Owners of the Cabin Interests into which that Lot has been divided. 2.43 Permitted Exceptions. "Permitted Exceptions" means all liens, encumbrances, reservations, restrictions, conditions, easements and other matters of record which encumber the title to all or any part of the Common Interest Community, as of the date this Master Declaration or a Supplemental Declaration is recorded. This Master Declaration and any Supplemental Declaration shall be subject to such Permitted Exceptions. 2.44 Person. "Person" means a natural person, a corporation, a partnership, a limited liability company, a trust, or any other entity capable of holding title to real property pursuant to the laws of the State of Colorado. 2.45 Plat. "Plat" means the Final Plat of Spring Valley Ranch P.U.D. (Phase I), as recorded , 2010 at Reception No. in the Office of the Clerk and Recorder of Garfield County, Colorado, as said Final Plat may be amended from time to time. By this reference, said Final Plat is incorporated in this Master Declaration. The term "Plat" also means each Supplemental Plat Recorded by Declarant and all Recorded amendments thereto. 2.46 P.U.D. Plan. "P.U.D. Plan" means that certain Planned Unit Development Plan for Spring Valley Ranch P.U.D. as approved by the Board of County Commissioners of Garfield County by Resolution No. 2008-55, recorded as Reception No. 747015 and Resolution No. 2008-56, recorded as Reception No. 747016 of the real estate records of Garfield County, Colorado and incorporated herein by this reference, as said P.U.D. Plan may be amended from time to time. All Owners and Occupants shall comply at all times with those restrictions and requirements contained in the P.U.D. Plan that restrict or are to be complied with by Owners or Occupants. 2.47 Real Estate Transfer Assessment. "Real Estate Transfer Assessment" means a change against the transferee of a Lot or Cabin Interest or interest therein and against said transferee Owner's Lot or Cabin Interest, due and payable to the Master Association at the time of transfer, in the amount and pursuant to the procedures set forth in Section 12.14 hereof. 2.48 Registered Builder. "Registered Builder" means a general contractor that has been registered to perform work within Spring Valley Ranch with the Design Review Committee pursuant to the guidelines and procedures set forth herein and in the Design Guidelines. 2.49 Record or Recorded. "Record" or "Recorded" means an instrument of record in, or the act of recording an instrument with, the office of the Clerk and Recorder of Garfield County. 20 • • • 2.50 Regular Assessment. "Regular Assessment" means a charge against an Owner and the Owner's Lot or Cabin Interest for purposes of covering the annual costs of operating and administering the Master Association and all other Common Expenses. Regular Assessments are based on a Budget adopted by the Executive Board in accordance with Section 12.6 below, and are allocated to the Lots and Cabin Interests in accordance with the Allocated Interests, except that Common Expenses that in the judgment of the Executive Board benefit fewer than all of the Lots or Cabin Interests shall be allocated exclusively to the Lots or Cabin Interests benefited. 2.51 Reimbursement Assessment. "Reimbursement Assessment" means a charge against a particular Owner and the Owner's Lot or Cabin Interest for purpose of reimbursing the Master Association for costs and expenses incurred by the Master Association in connection with the enforcement of any provision hereof or the remedying of any violation by the Owner or an Occupant of this Master Declaration or any amendment hereto or any Supplemental Declaration, the Articles, Bylaws, Master Rules and Regulations, or Design Guidelines, or any approvals granted by the Design Review Committee, or for other purposes set forth in the Master Declaration, pursuant to Section 12.10 hereof, together with late charges and interest as provided for herein. Reimbursement Assessment shall include without limitation any Common Expense caused by the misconduct of any Lot or Cabin Interest Owner or of such Owner's Occupants. 2.52 Shared Driveway. "Shared Driveway" means a driveway constructed within a Shared Driveway Easement depicted on the Plat or on any Supplemental Plat. 2.53 Special Assessment. "Special Assessment" means a charge against an Owner and the Owner's Lot or Cabin Interest for purposes of reimbursing the Master Association for costs and expenses incurred or to be incurred by the Master Association for the purpose of paying for the construction, reconstruction, repair, maintenance or replacement of capital improvements to or upon or serving the Common Interest Community, the costs of which were not included in a Regular Assessment, or for excess reconstruction costs or other extraordinary expenses, or to acquire Association Property, or for funding any operating deficit of the Master Association, as authorized by the Executive Board from time to time as provided herein. Special Assessments shall be based on a Budget adopted by the Executive Board in accordance with Section 12.8 below. 2.54 Special District. "Special District" means any special district that may be formed under the Colorado Special District Act (C.R.S. Section 32-1-201 et seq.) to assist in constructing, operating, maintaining, improving and/or replacing certain improvements within the P.U.D., including without limitation the Landis Creek Metropolitan Districts No. 1 and No. 2, and the Spring Valley Sanitation District, as applicable. 2.55 Subassociation. "Subassociation" means any Colorado nonprofit corporation, and its successors and assigns, organized and established by Declarant pursuant to or in connection with any Supplemental Declaration. 2.56 Subassociation Common Area. "Subassociation Common Area" means all real property interests (not just fee title and leasehold interests) and the Improvements or amenities and personal property thereon which may from time to time be owned, leased or maintained by a 21 • Subassociation or otherwise held by a Subassociation for the use, enjoyment and benefit of the members of such Subassociation or some of them. 2.57 Supplemental Declaration. "Supplemental Declaration" means an amendment to this Master Declaration which annexes real property to the Common Interest Community, subjects such real property to this Master Declaration, and sets forth such amendments to the Master Declaration and such additional covenants, conditions, uses and restrictions as may be applicable to the annexed property, executed by Declarant and Recorded in the Office of the Clerk and Recorder of the County, and any Recorded amendments thereto. In the discretion of Declarant, Cabin Interests may be created with respect to Cabin Lots annexed to the Common Interest Community by Supplemental Declaration(s). A Supplemental Declaration may also be used to create a Cabin Interest program for Cabin Lots that are already within the Common Interest Community. 2.58 Supplemental Plat. "Supplemental Plat" means any land survey plat which is Recorded by Declarant for the purpose of annexing the real property described therein to the Common Interest Community, and any Recorded amendments to such Supplemental Plat. Supplemental Plats shall include, without limitation, those Final Plats of subsequent phases of Spring Valley Ranch, or those portions of such Final Plats, as are made subject to this Master Declaration from time to time by Supplemental Declaration. 2.59 Water System. "Water System" means the domestic and irrigation water delivery and augmentation system that serves the Common Interest Community and the Club Property, including all related water rights, and all pumps, water collection and delivery equipment and pipes, conduits, ponds and other water transmission components. 2.60 Wildfire Mitigation Plan. "Wildfire Mitigation Plan" means the Wildfire Mitigation Plan described herein, which is attached to and made a part of the Master Rules and Regulations, as it may be amended from time to time, which Wildfire Mitigation Plan is incorporated in this Master Declaration by this reference. All Owners and Occupants shall comply at all times with the terms and provisions of said Wildfire Mitigation Plan. 2.65 Wildlife Mitigation Plan. "Wildlife Mitigation Plan" means the Wildlife Mitigation Plan, which is described herein and as may be supplemented by the Master Rules and Regulations, which Wildlife Mitigation Plan is incorporated in this Master Declaration by this reference. All Owners and Occupants shall comply at all times with the terms and provisions of said Wildlife Mitigation Plan. ARTICLE III GENERAL RESTRICTIONS APPLICABLE TO THE COMMON INTEREST COMMUNITY It is the intention of Declarant to establish and impose a common and general plan for the improvement, development, use and occupancy of the Common Interest Community, all in order to enhance the value, desirability, and attractiveness of the Common Interest Community and to promote the marketing, development and enjoyment thereof. Accordingly, Declarant hereby declares the entire Common Interest Community, including but not limited, to all Lots and Cabin 22 • • • Interests, shall be owned, held, used, occupied, improved, altered, maintained, conveyed, leased, encumbered and enjoyed subject to the following covenants, conditions, restrictions, reservations, easements, rights and other provisions, and to the further requirements and restrictions set forth in the Design Guidelines, subject to such Declarant exemptions as may be set forth herein. 3.1 Master Development Control. Except as otherwise expressly provided in this Master Declaration or in any Supplemental Declaration, (i) no residence, building, structure, fence, wall, landscaping or other Improvement shall be commenced, made, done, permitted, located, erected, improved, altered or removed within the Common Interest Community without the prior written approval, of the Design Review Committee, and (ii) all subsequent additions to or changes or alterations in any residence, building, structure, fence, wall, landscaping or other Improvement, including without limitation exterior color scheme, and all changes in the grade of Lots, shall also be subject to the prior written approval of the Design Review Committee. No modifications from the approvals granted by the Design Review Committee shall be made without the prior written approval of the Design Review Committee. Notwithstanding the foregoing, in the event of an emergency or the sudden occurrence of unanticipated conditions which threaten the health, safety or physical well-being of Persons or property within the Common Interest Community, the Executive Board and/or the Design Review Committee shall have the authority (without the prior approvals described above), to take whatever remedial action may be necessary anywhere in the Common Interest Community to protect Persons and property until such time as applicable notice and/or approval procedures can reasonably be utilized. Further notwithstanding the foregoing, Design Review Committee approval shall not be required for Improvements made by Declarant in the exercise of any development rights or special Declarant rights reserved by Declarant in this Master Declaration or in any Supplemental Declaration. 3.2 Violation of Law, Insurance, Etc. No Owner or Occupant or Person shall do any act or cause or permit anything to be done or kept in or upon a Lot or a residence constructed thereon, or the Association Property, which would result in the increase of, or cancellation of, insurance maintained by the Master Association or would be in violation of any federal, state, town or other law, ordinance, regulation or code of any governmental body having jurisdiction, or of any Master Rule or Regulation promulgated by the Master Association, or of any provision of this Master Declaration. 3.3 General Maintenance of Common Interest Community. All property within the Common Interest Community, including without limitation all Lots (including unimproved Lots, and Lots on which Improvements are under construction), Association Property, Improvements, and landscaping, shall be kept and maintained in a clean and attractive condition and in good order, condition and repair. (a) Except as specifically set forth in this Section or in a Supplemental Declaration, maintenance, repair, and upkeep of each Lot and the Improvements thereon (including attractive painting and refinishing thereof at regular intervals) shall be the responsibility of the Owner of the Lot or the Owners of the Cabin Interests into which a Lot may be divided. Such maintenance and repair shall be performed by each Owner whenever necessary or appropriate and at regular intervals in order to keep the Lot and 23 • • Improvements in substantially the same condition and appearance as existed at the time of completion of construction, subject to normal wear and tear that cannot be avoided. Said Owner obligations shall include all maintenance, repair or replacement required as a consequence of any fire, wind, vandalism, theft or other casualty. With respect to a Lot, this maintenance obligation extends to all lands and landscaping within the Lot lines, all landscaping on any adjacent street right-of-way that is bounded by the front Lot line, the paved portion of the street, and the continuation of the side Lot lines between the two, and all landscaping on any land lying between the Lot and the water's edge of any natural or manmade body of water, excepting any areas or elements that are to be maintained by the Master Association or a Special District. Unsightly conditions on a Lot shall constitute a nuisance under this Master Declaration. (b) Maintenance, repair, and upkeep of Association Property, including any Improvements and landscaping thereon, shall be the responsibility of the Master Association. (c) The individual Owners and the Executive Board shall each use a reasonable standard of care in providing for the repair, management and maintenance of the properties for which they are responsible so that the entire Common Interest Community will reflect a pride of ownership. (d) If an Owner fails to perform any of such obligations within ten (10) days following receipt of a written notice from the Design Review Committee or the Executive Board requesting the same, the Design Review Committee or the Executive Board shall have the right to enter upon the Lot of the Owner to cure the violation, to perform any needed repairs or maintenance, or to otherwise cause compliance with this Section, and to levy and collect a Reimbursement Assessment upon the Owner and its Lot (or Cabin Interest) for the costs and expenses incurred by the Master Association in connection therewith. The Design Review Committee or the Executive Board shall have no right to enter into the interior of a residence without the consent of the Owner except in the case of a clear emergency. 3.4 Residential Use and Occupancy. Each Lot shall be improved, occupied and used only for private single-family residential purposes, except that multi -family or lodge units may be built and occupied upon the Club Property. The creation of Cabin Interests with respect to certain Lots in the Common Interest Community shall not violate this restriction. No structures whatsoever, other than those permitted by the P.U.D. Plan or by other applicable Garfield County zoning regulations and approved in writing by the Design Review Committee, shall be erected, placed or permitted to remain on any Lot. No office, business and/or commercial structures shall be permitted within the Common Interest Community except in those areas where such uses are allowed by applicable provisions of the P.U.D. Plan. No business, professional or other non-residential or commercial use shall be made of any Lot, or conducted in any residence constructed on a Lot, excepting in-home businesses or occupations which do not involve (i) employees, (ii) the solicitation or invitation of the general public, or (iii) the servicing of customers, and which activities are conducted entirely within the residence and do not cause any additional traffic or parking within the Common Interest Community or 24 • otherwise create a nuisance for neighboring Lots or the Common Interest Community. The leasing of a residence in compliance with the provisions of Section 3.37 below shall not violate this restriction. No equipment or materials incident to any business or occupation (whether conducted within the residence or elsewhere) shall be kept or stored on any Lot except within the residence, garage, barn, or other outbuilding approved by the Design Review Committee. Notwithstanding the foregoing, activities normally associated with the sale by the Declarant or an Owner of an improved or unimproved Lot or a Cabin Interest shall be allowed, subject to any limitations contained in this Master Declaration. 3.5 New Construction Required; No Temporary Buildings or Occupancy. All Improvements constructed within or placed upon the Common Interest Community shall be new. No used or temporary house structure, tent, teepee, or non -permanent out -building (specifically including without limitation mobile homes and trailers shall ever be placed, erected or allowed to remain within the Common Interest Community except temporary structures or construction trailers used for construction purposes during the construction of a residence, which temporary facilities shall be removed immediately following completion of construction and in any event no later than 18 months following commencement of construction or remodeling unless a written extension is granted by the Design Review Committee. No trailer, mobile home, incomplete residence or other structure other than a residence completed in accordance with approved plans shall ever be used or occupied at any time for residential purposes, either temporarily or permanently. No completed residence on a Lot shall be occupied in any manner until all provisions of this Master Declaration and of the Design Guidelines and all conditions of development approval have been complied with, and a Certificate of Compliance has been issued pursuant to Section 6.17 below. The work of constructing, altering or remodeling any residence on a Lot or any other Improvement within the Common Interest Community shall be prosecuted diligently from the commencement thereof until the completion thereof Notwithstanding the foregoing, existing structures may remain or be relocated within the Common Interest Community, in the discretion of Declarant. In addition, used materials (e.g., barnwood) and/or structures may be permitted on a Lot if (i) the Owner makes a specific written request to the Design Review Committee for approval of such used materials and/or structures, and (ii) the Design Review Committee determines that the criteria set forth in the Design Guidelines have been met and specifically approves such request in writing. All construction within Spring Valley Ranch P.U.D. shall in all respects be in accordance with the International Fire Code, as amended and in effect. 3.6 Building Envelopes. See the above definition of this term for the general regulations applicable to Building Envelopes. 3.7 Design Guidelines. All excavation and other land disturbance, construction, landscaping and irrigation activities within the Common Interest Community shall be strictly governed by the procedures, standards, guidelines, restrictions and requirements set forth in the Design Guidelines. A violation of the Design Guidelines shall constitute a violation of this Master Declaration and may be enforced by the Design Review Committee or Executive Board in accordance with the terms hereof. 25 • • 3.8 Annovin2 Light, Sound or Odor. All exterior lighting will be the minimum amount necessary and all exterior lighting will be directed inward and downward, towards the interior of the subdivision, except that provisions may be made to allow for safety lighting that goes beyond the property boundaries. Lightpoles will be 12-15 feet in height or less, utilizing no more than 150 watts per lightpole. All exterior lighting installed or maintained on any Lot or on any Improvement located on a Lot shall be placed so that the light source is screened or shielded from the residence on any other Lot and from the Association Property, and shall comply with the Garfield County Lighting Code. No light shall be emitted from any part of the Common Interest Community (including any Lot) which is unreasonably bright or causes unreasonable glare. Without limiting the generality of the foregoing, no spotlights, floodlights or other high- intensity lights shall be permitted within the Common Interest Community without the prior written approval of the Design Review Committee. The Design Guidelines may contain additional standards for exterior lighting including, without limitation, standards for hue and intensity. No sound shall be emitted from any part of the Common Interest Community (including without limitation any Lot) which is unreasonably loud or annoying to others, and no odor shall be emitted from any part of the Common Interest Community (including without limitation any Lot) which is noxious or unreasonably offensive to others. Again without limiting the generality of the foregoing, no exterior speakers, horns, whistles, bells (excepting chimes), or other sound devices, other than security devices used exclusively for security purposes, shall be located or used within the Common Interest Community except with the prior written approval of the Design Review Committee. The Executive Board, in its sole discretion, shall have the right and authority to determine the existence of any violation of this Section including the reasonableness of any light, sound or odor. 3.9 Noxious or Offensive Activities; Nuisances. Construction Activities. No noxious or offensive activity shall occur or be allowed at any time on any property within the Common Interest Community, nor shall anything be done or placed thereon which is or may become a nuisance or cause an unreasonable embarrassment, disturbance, or annoyance to Owners, Occupants, Declarant or the Master Association; or which unreasonably interferes with the peaceful enjoyment or possession and proper use of the Common Interest Community, or any part thereof, by Owners or Occupants. Any activity on a Lot which interferes with satellite dish, television, cable or radio reception on another Lot shall be deemed a nuisance and shall be a prohibited activity. As used herein, the term "nuisance" shall not apply to any activities of Declarant which are reasonably necessary or appropriate to the development, improvement, maintenance, marketing and/or sale of the Common Interest Community or any part thereof. The Executive Board, in its sole discretion, shall have the right and authority to determine the existence of any nuisance or unreasonable embarrassment, disturbance or annoyance under this Section. Each owner shall comply with the Master Rules and Regulations and the requirements of all health authorities and other governmental authorities having jurisdiction over the Common Interest Community. Normal construction activities and parking, during daylight hours, in connection with the building of Improvements on a Lot shall not be considered a nuisance or 26 • • • otherwise prohibited by this Master Declaration unless they are in violation of the Design Guidelines or other requirements of the Design Review Committee, but Lots and Association Property shall be kept in a neat and tidy condition during construction periods, trash and debris shall not be permitted to accumulate, and supplies of brick, block, lumber and other building materials shall be piled only in such areas as may be approved by the Design Review Committee. In addition, construction equipment and building materials may only be stored or kept within the Common Interest Community during and in connection with the construction of Improvements thereon, and then may be kept only in areas approved by the Design Review Committee, which also may require screening of the storage areas. All such equipment and materials shall be removed immediately following completion of construction. 3.10 No Hazardous or Unsafe Activities. No activity shall be conducted on, and no Improvement shall be constructed on, any property within the Common Interest Community which is or might be unsafe or hazardous to any Person or property. Without limiting the generality of the foregoing, and except as allowed below, no explosives, gasoline, fireworks, or other volatile and/or incendiary materials or devices or any materials deemed hazardous or toxic substances under applicable environmental laws, rules, or regulations shall ever be used, kept, stored, permitted to remain or be released or disposed of on any Lot or elsewhere within the Common Interest Community. Gasoline or fuel for an Owner's lawn mower, snowblower, and the like may be maintained on an incidental basis in an enclosed structure on a Lot in an amount not to exceed 10 gallons. 3.11 No Woodburning Fireplaces or Stoves; Outside Burning; Fire Hazards. No woodburning fireplaces or woodburning stoves shall be permitted within the Common Interest Community. No exterior fires shall be lighted or permitted on any property within the Common Interest Community except in a contained barbecue unit while attended and in use for cooking purposes or as a part of the operation and maintenance of a ditch or part thereof. No Owner shall cause or permit any condition on his Lot which creates a fire hazard or is in violation of fire prevention regulations, or which would increase insurance rates for Association Property or for other Owners. Notwithstanding the foregoing, the Declarant and any Special District that serves the Common Interest Community shall have the right to perform burning activities in connection with the development, marketing and maintenance of the Common Interest Community. 3.12 No Firearms or Hunting. The use or discharge of firearms, including but not limited to BB guns and pellet guns, on any part of the Common Interest Community (including without limitation the Lots) is expressly prohibited. Hunting on any part of the Common Interest Community (including without limitation the Lots) is expressly prohibited. 3.13 No Unsightliness; Outside Personal Property Storage and Clothes Drying. All unsightly structures, facilities, equipment, objects, and conditions, all sporting equipment (e.g., skis, snow6oards, bikes, mountain bikes, kayaks, etc.), and all snow removal, garden or maintenance equipment except when in actual use, shall be kept in an enclosed structure or .in a screened area approved in writing by the Design Review Committee. Tasteful patio furniture and accessories, barbecue grills, and playground equipment and other outside personal property approved in writing in advance by the Design Review Committee, may be kept on the side or in the rear of a Lot and must be kept in an attractive and good condition. No laundry or wash shall be dried or hung outside on any Lot, excepting in the yard area behind a residence which is 27 • • • screened from view from streets and other residences within the Common Interest Community by screening approved in writing by the Design Review Committee, and then only on portable outdoor clothes -drying facilities approved in writing by the Design Review Committee, which facilities must be stored indoors when not in use. 3.14 Vehicle Parking, Storage, Operation and Repair. (a) Subject to applicable laws, rules and regulations, passenger automobiles (including without limitation vans and SUVs) and one ton or smaller pickup trucks may be parked in designated parking areas on the streets within the Common Interest Community. (b) No boats, trailers, buses, motor homes, mobile homes, campers (on or off supporting vehicles), snowmobiles, recreational vehicles, all terrain vehicles, trucks, industrial or commercial vehicles (both cabs or trailers), abandoned or inoperable vehicles (as defined below), or any other similar vehicles (excepting passenger automobiles and one ton or smaller pick-up trucks shall be parked or stored on a street or upon any Lot in the Common Interest Community. The Master Association shall establish and maintain a designated secure area or facility for the storage of such recreational vehicles, and shall promulgate appropriate fees, rules and regulations governing the use thereof. (c) No motor vehicle of any kind shall be maintained, repaired, repainted, serviced or rebuilt on Association Property or on any Lot except within a completely enclosed garage which fully screens the sight and sound of the activity from the streets and other Lots and Association Property. This restriction shall not prevent the non- commercial washing and polishing of vehicles and boats, together with activities normally incident thereto. (d) No more than two (2) permitted vehicles (passenger automobiles and/or one ton or smaller pick-up trucks) shall be parked at any time in the driveway of any Lot, except during special occasions and then only for the duration thereof. Permitted vehicles shall not be parked in any location on a Lot except the driveway or an enclosed garage. (e) Notwithstanding the foregoing, vehicles may be temporarily parked on driveways on Lots and on streets within the Common Interest Community for loading, delivery or emergency purposes, but only for the time required to accomplish such purpose, and as necessary on a daily basis for the construction, maintenance or servicing of Improvements within the Common Interest Community. (f) An "abandoned or inoperable vehicle" shall mean any motorized vehicle which does not display a current motor vehicle license, is on blocks or which has not been driven under its own propulsion for a period of one (1) week or longer (excepting otherwise permitted vehicles parked by Owners or Occupants on their Lot driveways while on vacation or during a period of illness), or which does not have an operable propulsion system within the vehicle. 28 • (g) In the event that the Executive Board or the Design Review Committee shall determine that a vehicle is abandoned or inoperable, or is otherwise in violation of the provisions of this Section, a written notice of violation describing said vehicle shall be personally delivered to the vehicle owner (if such owner can be reasonably ascertained and located) or shall be conspicuously placed upon the vehicle (if the owner cannot be reasonably ascertained or located), and if the offending vehicle is not removed within seventy-two (72) hours thereafter, the Executive Board or Design Review Committee (as the case may be) shall have the right to remove and store the offending vehicle, or cause the vehicle to be removed and stored, at the sole expense of the owner of the vehicle if the vehicle is located on a street, or at the sole expense of the Owner of the Lot on which the vehicle is located, and to enter upon an Owner's Lot for such purpose, all without liability on the part of the Executive Board or the Design Review Committee. (h) Snowmobiles, motorcycles, trail bikes, minibikes, dirt bikes, all -terrain vehicles, and similar motorized vehicles shall not be used or operated (but may be transported on trailers) within the Common Interest Community, except that motorcycles properly licensed for operation on public roads may be used on streets within the Common Interest Community. The Master Association shall have the authority to adopt Master Rules and Regulations governing the type and use and storage of golf carts within the Common Interest Community. Notwithstanding the- foregoing, Declarant, the Master Association and/or the Club Property Owner may operate such recreational vehicles within the Common Interest Community solely for maintenance, construction, security or similar purposes or in emergency circumstances. (i) Pursuant to the Declaration of Easements and Rights, authorized users of the Club Property shall have the right to operate golf carts on golf cart paths within the Common Interest Community. The owner of the streets within the Common Interest Community shall have the right to adopt rules and regulations governing the use of golf carts on such streets, and the Master Association shall have the right to adopt Master Rules and Regulations governing the use and storage of golf carts on other areas (including the Lots) within the Common Interest Community. (j) Notwithstanding anything in this Section 3.15 to the contrary, nothing in this Section 3.15 shall be deemed to prohibit or impair the right to parking of any vehicle, the owner of which has the statutory right to park within the Common Interest Community pursuant to Section 106.5(1)(d) of the Act. 3.15 Garages. All garage doors shall be kept closed when not in use. No garage shall be permanently enclosed, and no portion of a garage originally intended for the parking of an automobile shall be converted into living space or storage space without the express prior written approval of the Design Review Committee. 3.16 Restrictions on Equipment, Tanks, Antennae, Satellite Dishes, Etc. Heating, air conditioning (including swamp coolers), air movement, wind collection, or refrigeration equipment must be screened from the view of neighboring properties and must receive the prior written approval of the Design Review Committee. It is expressly understood that except in extenuating circumstances, as determined by the Design Review Committee, only central air 29 • • conditioning will be allowed within the Common Interest Community. The use of solar energy systems (both passive and active) within the Common Interest Community is encouraged, provided such systems comply with governmental guidelines for residential uses and meet the same architectural criteria as are applied to other Improvements within the Common Interest Community, and are approved in advance by the Design Review Committee. No tanks of any kind, whether elevated or buried, shall be erected, placed or permitted to remain upon any Lot or Association Property except in compliance with applicable federal and state regulations, and then only with the prior written consent of the Design Review Committee. Any approved tank must be located underground or adequately concealed from view by fencing or screening approved by the Design Review Committee. If an Owner wishes to install an antenna to receive video programming, the Owner shall notify the Design Review Committee in writing of the proposed installation and location thereof at least ten days before the installation. The antenna installation and location shall comply with all fire, electrical and other applicable safety codes, and the installing Owner shall to the extent feasible install the antenna in a location that minimizes its visibility from neighboring Lots, Association Property, or Club Property. The installing Owner shall be obligated to paint the antenna so that it blends into the background against which it is mounted and to plant and maintain such reasonable landscaping as will screen the antenna, to the extent feasible, from neighboring Lots, Association Property and the Club Property. Provided always, that in the event that in any particular situation any of the foregoing requirements or restrictions cause an unreasonable delay or cost in the installation, maintenance or use of the antenna, or prevent the reception of acceptable quality signals, said requirements or restrictions shall be invalid as they apply to that particular situation. Subject to the Telecommunications Act of 1996 and the regulations promulgated thereunder, satellite dishes that exceed one meter in diameter, and MDS antennas that exceed one meter in diameter or diagonal measurement, shall not be allowed within the Common Interest Community. Mast antennas that extend higher than 12 feet above the roof line and antennas that are not used to receive video programming shall only be permitted within the Common Interest Community if they receive the prior written approval of the Design Review Committee as to design, location and screening from neighboring Lots, Association Property, and Club Property. 3.17 Restrictions on Mining or Drilling. No property within the Common Interest Community shall be used for the purpose of mining, quarrying, drilling, boring, or exploring for, developing or removing, water, geothermal resources, oil, gas, or other hydrocarbons, minerals, rocks, stones, gravel, or earth, except drilling, exploring for, removing, distributing or storing underground water by Declarant or the Master Association. Nothing contained herein shall be construed to limit the rights of the owners of mineral interests severed from the surface of any portion of the Common Interest Community prior to the recording of this Master Declaration. 3.18 Excavations. No excavation or other earth disturbance shall be performed or permitted within the Common Interest Community except in connection with the construction of Improvements, and then only with the prior written approval of the Design Review Committee. Upon completion of construction, openings in the ground shall be backfilled and compacted and all disturbed ground shall be graded and landscaped in accordance with the Design Guidelines and the requirements of the Design Review Committee. 30 • 3.19 No Interference with Waterways, Drainage or Irrigation Systems, or with Wetlands/Riparian Habitats. No Owner or Occupant shall construct, install, maintain or permit any fence or other improvement or obstruction or plant trees or take any other action which damages or interrupts or interferes in any way with (i) the normal flow of water through and along waterways and water features within the Common Interest Community, (ii) any irrigation ditch, lateral, lake, pond or other water collection, storage or distribution system within or serving the Common Interest Community or the Club Property, (iii) normal drainage patterns within the Common Interest Community or the Club Property, or (iv) wetlands areas or within 75 feet of the high water mark of riparian corridors, subject always to the rights of owners of ditches and other water rights and the requirements of the Design Review Committee. The Master Association shall have the authority to take such action as may be necessary to abate or enjoin any such damage or interference, and shall have the right to enter upon a Lot for purposes of correcting or removing the same, and any costs incurred by the Master Association in connection with such abatement, injunctive or corrective activities shall be assessed to the subject Lot Owner in the form of a Reimbursement Assessment. 3.20 Lakes, Ponds, Creeks, Ditches. No swimming or boating or ice skating activities shall be conducted or allowed on any lakes, ponds, creeks or ditches within the Common Interest Community, excepting in recreational areas within Association Property that may be established from time to time by the Master Association in its sole discretion, and then subject to such Master Rules and Regulations as may be adopted by the Executive Board. Fishing may be allowed in designated areas, but only in the sole discretion of the Master Association, and then subject to such Master Rules and Restrictions as may be adopted by the Executive Board. 3.21 Lake Banks; Beaches. All lake banks within the Common Interest Community shall be properly sodded by the adjacent property owner promptly following completion of construction of Improvements on the adjacent property, unless the Design Review Committee otherwise directs in writing. No beach or sandy area contiguous to any lake, pond or canal shall be created within the Common Interest Community without the prior written approval of the Design Review Committee and any appropriate Governmental authority 3.22 Fences and Walls. These fencing restrictions shall not apply to retaining walls, debris flow and rockfall barriers or other engineered structures necessary for the development and protection of structures and common elements. Fencing is restricted throughout Spring Valley Ranch to facilitate wildlife movement, to optimize habitat availability, and to reduce wildlife mortality. Owners and Occupants shall comply with the following restrictions: (a) Perimeter fences around Lots are prohibited. (b) Except as approved by the Association with regard to horse enclosures, in residential zone districts all fencing shall be contained within the designated Building Envelopes pursuant to the Design Guidelines and shall not exceed 48 inches in height. Fenced areas may not exceed the following area for each zone district: (i) Residential/Mountain District — the area of the building envelope 31 • • • (ii) Residential/Ranch District — max. 15,000 sf. (iii) Residential/Estate District — max. 10,000 sf. (iv) Residential/Cabin District — max. 5000 sf. (v) Residential/Pasture District — the area of the building envelope (vi) Privacy fences or walls attached to the residence in any residential district shall be permitted to enclose a maximum area of 4,500 square feet of patio, lawn or similar areas, for purposes of screening lawns, patios and similar features within the Building Envelope on the Lot. Wildlife -proof fences are permitted to protect small garden plots, which must be confined to within the Building Envelope. (c) Except for temporary fencing to protect golf greens and tees, fences within all Open Space Districts, including fencing to prevent domestic livestock from entering the PUD or any area therein, shall be three -strand fences constructed and maintained in accordance with guidelines of the Colorado Division of Wildlife, and Colorado law. (d) Any existing internal barbed wire fences used in the past ranching operations shall be removed and may be replaced by three -strand fences constructed and maintained in accordance with guidelines of the Colorado Division of Wildlife and Colorado law. (e) Fenced kennels or dog runs shall be permitted as provided herein. (f) Lots within areas in which horses are allowed shall be permitted to have fenced horse enclosures and turn -out areas as approved by the Design Review Committee, which fencing must meet Colorado Division of Wildlife standards. Horses shall be kept and maintained within these fenced enclosures. No other fences or walls shall be permitted on Lots within Spring Valley Ranch unless expressly authorized in writing by the Design Review Committee. 3.23 Tree and Natural Shrub Preservation. All Improvements within the Common Interest Community shall be located, designed, and constructed so as to preserve and protect trees and natural shrubs. Unless otherwise required by the Wildfire Mitigation Plan, in order to conserve the natural beauty of the area, no existing trees or natural shrubs (e.g., pine, cedar, pinon, other evergreens, gamble oak or sage brush) may be removed or trimmed except with the prior, written approval of the Design Review Committee. This restriction shall not apply to the removal or trimming of dead or diseased vegetation, or to essential clearing by an Owner in connection with the construction of a residence (but not other Improvements) on a site previously approved by the Design Review Committee. Any violation of this Section shail subject the offending Owner to such penalties, fines and/or other conditions as the Design Review Committee considers appropriate, including without limitation the withdrawal or modification of previously granted development approvals, or the requirement that replacement trees or shrubs of equivalent or different size and type be planted and maintained by the Owner. 32 3.24 Use of Easement Areas; Utility Installation. All easements shown on a Plat or Supplemental Plat covering any portion of the Common Interest Community have been created or reserved for the purposes indicated on such Plat and/or in this Master Declaration. No Owner or Occupant may erect any structure of any type whatsoever in such easement areas, nor may an Owner or Occupant use the surface of such easement areas for any private use, other than landscaping which will not interfere with the use of said easement by the Persons or entities for whose benefit it has been created or reserved and which receives the prior written approval of the Design Review Committee. With respect to easements created for access and/or utility purposes either by the terms of this Master Declaration or any other Recorded agreement or on a Plat, any and all bona fide public and private utility service companies, Special Districts, and the Club Property Owner (but only to the extent set forth in the Declaration of Easements and Rights), shall have the right of access, ingress, egress, and use of such easement areas for the installation, operation and maintenance of utility facilities serving the Common Interest Community and/or the Club Property, subject to the following limitations. Except as to special street lighting or other aerial facilities which may be required by the County, no aerial utility lines or facilities of any type (except meters, risers, service pedestals and other surface installations necessary to maintain or operate appropriate underground facilities) shall be erected or installed within the Common Interest Community, whether upon Lots, Association Property, easements, streets, or rights-of- way of any type, either by a utility company, a Special District, an Owner, the Master Association, the Club Property Owner or any other person or entity (including but not limited to any person owning or acquiring any part of the Common Interest Community) and all utility lines and facilities (including but not limited to water, sewer, gas, electricity, telephone, and cable tv) shall be buried underground. Provided, that during the construction of a residence on a Lot a temporary overhead power line may be installed which shall be promptly removed upon completion of construction. 3.25 Landscaping, Irrigation. No landscaping shall be performed on any Lot or on Association Property unless a landscaping plan therefore has received the prior written approval of the Design Review Committee, and all landscaping shall comply with the Design Guidelines. No lawn or other landscaping shall be permitted outside of the Building Envelope on a Lot. A landscaping plan for each Lot must be, approved by the Design Review Committee before construction is commenced on the residence on that Lot. Such landscaping plan must include landscaping to the waterline or any abutting lake or pond or ditch and to the pavement edge of any abutting road or parking area. Any substantial change in the type or location of approved landscaping vegetation shall require the further approval of the Design Review Committee. No artificial grass, plants or other artificial vegetation shall be placed or permitted to remain within the Common Interest Community (except indoors) without the prior written approval of the Design Review Committee. All irrigation practices within the Common Interest Community shall be governed by the Design Guidelines. Each Lot shall be allowed a maximum amount of irrigated area, as more specifically set forth in the Design Guidelines. Each Owner shall diligently maintain, trim, weed, cultivate, husband, protect, preserve • and otherwise keep in a healthy and attractive condition the shrubs, trees, hedges, grass, planters, 33 • r gardens and other landscaping upon or abutting the Owner's Lot, including, without limitation, the removal of dead and diseased branches and brush and the performance of other tasks necessary to remove or eliminate material which constitutes or creates a fire hazard or nuisance. Each Owner shall also maintain all paved, concrete and other synthetically surfaced areas within the Owner's Lot, including but not limited to, driveway and parking areas, in good condition and repair. 3.26 Tennis Courts and Basketball Goals. Tennis courts, basketball goals, backboards and nets shall not be allowed unless they comply with the Design Guidelines and the written approval of the Design Review Committee is first obtained. Any permitted basketball backboards must be professionally manufactured, and must be installed on black poles, with a white or clear backboard. No garage or roof mounted basketball backboards shall be permitted. 3.27 Swimming Pools, Spas, and Related Equipment. Pools, spas or hot tubs may be erected, constructed or installed on Lots within the Common Interest Community, provided they comply with the Design Guidelines and receive the prior written consent of the Design Review Committee. If a pool, spa or hot tub is approved, all service equipment shall be fenced and located m either (a) a side yard between the front and rear boundaries of the residence, or (b) in the rear yard adjacent to the residence, and shall be adequately screened from any neighboring Lots, the Association Property, the Club Property, and all streets in the Common Interest Community. 3.28 Signs and Advertising. With the exception of one entry/identification sign per Lot during the period of actual construction on the Lot, which sign shall comply with the Design Guidelines, no sign, poster, billboard or advertising device of any kind shall be allowed or displayed upon any Lot or any Association Property within the Common Interest Community except: (a) such signs as may be used by the Declarant in connection with the development, marketing and sale of Lots or Cabin Interests in the Common Interest Community; (b) such signs as may be required by legal proceedings, or the prohibition of which is precluded by law; (c) such signs as may be required for traffic control and for regulation of Association Property; (d) neighborhood monuments (e.g., entrance and directional signs) which are compatible with the architecture of the area (e) such other signs as may be specifically authorized and regulated by the Design Guidelines; and (f) signs, the prohibition of which is prohibited by the Act. All permitted signs must comply with the Design Guidelines. 3.29 Camping and Picnicking. No camping or picnicking shall be allowed on Association Property except in areas, if any, that may be designated for such purpose by the Master Association. 3.30 Soliciting. No soliciting shall be permitted at any time within the Common Interest Community. 3.31 No Individual Water Wells or Individual Sewage Disposal Systems; Exceptions. No individual water wells, and no cesspools, septic tanks or other individual sewage disposal systems, shall be drilled, constructed, maintained or permitted to remain within the Common Interest Community, except such water and/or septic systems as may be installed 34 • by Declarant or Declarant's successor, assign or designee or the Master Association or a Special District to serve the Common Interest Community or portions thereof. Notwithstanding the foregoing, individual water wells shall be permitted as set forth in the P.U.D. Approval. Notwithstanding the foregoing, individual sewage treatment systems ("ISTS") shall be permitted as set forth in the P.U.D. Approval and as designated on the Final Plat, provided they comply with the Design Guidelines and receive the prior written approval of the Design Review Committee. Each Owner of a Lot with an allowable ISTS comply with all applicable requirements of the ISTS Operation and Maintenance Plan adopted by the Landis Creek Metropolitan District, which shall be incorporated into the Design Guidelines. Each such Owner of a Lot with an allowable individual sewage disposal system shall execute a contract with the Landis Creek Metropolitan District No. 1 for the performance of such responsibilities. The obligations of such Lot Owners shall be enforceable by either the Master Association or the Landis Creek Metropolitan District No. 1. hi accordance with the P.U.D Plan, the Master Association shall contract with a third party operator, who must be at least a "Class C" operator to operate and maintain the Ranch Lot and Mountain Lot ISTS. The operator and the contract employing the operator must be acceptable to Garfield County Board of County Commissioners. 3.32 Regulation of Pesticides. The Design Review Committee may adopt reasonable rules and regulations governing the use and application of pesticides, herbicides, fertilizers and fungicides within the Common Interest Community. 3.33 Maintenance of Visibility at Street Intersections. No hedge, shrub, or planting which obstructs the sight lines between two and six feet above the street shall be placed or permitted to remain on any corner Lot within the triangular area formed by the street property lines and the line connecting them at -points twenty-five feet (25') from the intersection of the street lines or in the case of a rounded property corner from the intersection of the street lines as extended. The same sight line limitation shall apply to any portion of a Lot lying within ten feet (10') of the intersection of a street property line with the edge of a driveway pavement. No tree shall be permitted to remain within the above-described restricted areas unless the foliage line is maintained at or above six feet (6') above the street intersection elevation to prevent the obstruction of sight lines. 3.34 Restoration of Improvements in the Event of Damage or Destruction. In the event of damage to or destruction of any Improvement on any Lot the Owner(s) thereof shall cause the damaged or destroyed Improvement to be promptly restored or replaced to its original condition or such other condition as may be approved in writing by the Design Review Committee, or the Owner(s) shall cause the damaged or destroyed Improvement to be promptly demolished and the Lot to be suitably landscaped, subject to the approval of the Design Review Committee, so as to present a pleasing and attractive appearance. Such Improvements shall be repaired, restored or otherwise demolished and suitably landscaped within such reasonable time frame as may be established by the Design Review Committee. 3.35 Leases. The leasing/rental of Cabin Interests shall be governed by the Cabin Interest ownership documents, and shall not be affected by this Section (except that a Cabin Interest shall not be leased for any term of one week or less). Any Owner shall have the right to Lease his Lot under the following conditions: 35 • (a) All Leases shall be in writing, and must cover the entire Lot (i.e., no Leases of bedrooms alone or otherwise covering less than all of the Lot shall be permitted). (b) No lease shall be for a term of less than one month, and no Owner may lease a Lot more than six times in any consecutive 12 -month period without the prior written consent of the Executive Board. The foregoing notwithstanding, and Owner may from time to time permit guests to occupy the residence, without consideration, provided the Master Association is given prior written notice of such occupancy, and further provided that such guest occupancies (in the aggregate) shall not exceed six instances in any consecutive 12 -month period without the prior written consent of the Executive Board. (c) All Leases shall provide (i) that the terms of the Lease and the tenant's (Occupant's) use of the Lot shall be subject in all respects to the provisions of this Master Declaration or any pertinent Supplemental Declaration, and the Articles, the Bylaws, and the Master Rules and Regulations, and the Design Guidelines, (ii) that the Occupant has received and reviewed copies of said documents, and (iii) that any failure by the Occupant to comply with any of the aforesaid documents, in any respect, shall be a default by Occupant under the Lease and a default by Occupant and Owner under said documents which may be enforced against Occupant and/or Owner by the Executive Board. (d) Each Owner shall notify the Master Association immediately upon the leasing of his Lot and shall provide the Master Association with a copy of the Lease and with the name and mailing address of the Occupant and the mailing address (if changed) of the Owner. (e) Each Owner who leases a Lot shall be responsible for assuring compliance by the Occupant with all of the provisions of this Master Declaration, any pertinent Supplemental Declaration, the Articles, the Bylaws, the Master Rules and Regulations, and the Design Guidelines, and shall be jointly and severally responsible with the Occupant for any violations thereof by the Occupant. (f) Each Lease shall expressly provide that the Master Association (via the Executive Board) shall have the right to give the Occupant written notice that the Occupant is in violation of one or more of the documents listed in subsection (c) above, which notice shall specify a period of time (at least 5 days) in which the Occupant may cure the violation. If the violation continues uncured, or if it is repeated within the 3 -month period following the date of the first notice, the Lease shall provide that the Owner gives to the Master Association an irrevocable power of attorney to act on the Owner's behalf to give such statutory notices to the Occupant and to take such other actions as may be necessary or appropriate to terminate the Lease and to evict the Occupant from the Premises. If a Lease does not contain such provisions, the Owner hereby irrevocably appoints the Master Association as its attorney-in-fact to act on its behalf as set forth herein. 36 • 3.36 Right of Entry. During reasonable hours and upon reasonable notice to the Owner or Occupant of a Lot , any member of the Design Review Committee, any member of the Executive Board, and any authorized representative of either of them, shall have the right to enter upon and inspect any Lot , and the Improvements thereon, except for the interior portions of any occupied dwelling (which shall require the permission of the Owner or Occupant, except in case of emergency, when no notice or permission shall be required), for the purpose of ascertaining whether or not the provisions of this Master Declaration (or of any Supplemental Declaration) and of the Design Guidelines have been or are being complied with, or for the purpose of exercising any rights or performing any responsibilities (maintenance, repair, etc) established by this Master Declaration or any Supplemental Declaration, and such individuals shall not be deemed guilty of trespass by reason of such entry. 3.37 Damage by Owners During Construction. Each Owner is responsible for any damage caused to roads, streets, ditches, fences, trails, natural or constructed drainage courses, utilities, Association Property, or to other Lots or Improvements thereon, during the construction or alteration of Improvements upon the Owner's Lot, including without limitation damage caused by any construction vehicles using the roads or streets within the Common Interest Community. Damage shall include any degradation in the appearance or condition of such roads, streets, Association Property, or other Lots or Improvements. The responsible Owner shall promptly repair and clean up any such damage, at its sole expense. Each Owner shall also be responsible for any damage caused by utility cuts in roads, and for washouts and runoff damage caused by failure to properly install culverts, and to promptly repair any such damage. If the Owner fails to repair any such damage within 10 days following receipt of a written notice from the Executive Board requesting the same, the Executive Board shall have the right to perform such repairs on behalf of the Owner, and to levy a Reimbursement Assessment upon the Owner and its Lot to recover the costs thereof. 3.38 Restrictions on Resubdivision, Property Restrictions, and Rezoning. Except as expressly permitted in this Master Declaration or in a Supplemental Declaration by which additional property is annexed to the Common Interest Community, (i) no Lot shall ever be further subdivided or replatted by an Owner into smaller Lots, and (ii) no physical portion less than all of any such Lot, nor any easement or divided interest therein, shall be conveyed, transferred or encumbered by the Owner, and (iii) no Lot may be combined with any other Lot nor the boundary lines adjusted between any two Lots. (a) Declarant reserves the right to subdivide or replat a Lot, or to combine two Lots owned by Declarant, or to adjust or remove boundary lines between Lots owned by Declarant, provided any necessary County approvals are obtained, all Declaration and Plat amendments required by the Act and/or local land use laws are prepared, executed and Recorded, and the necessary reallocation of Allocated Interests of the Owners is accomplished. In the case of the subdivision of a Lot into two or more Lots, each Lot created thereby shall constitute a Lot for purposes of reallocation of Common Expense liability and voting interests. In the case of the combination of two Lots, such interests shall be reallocated to reflect the fact that two Lots have been eliminated and one Lot created in its place, unless the Executive Board requires that the combined Lots continue to pay two Assessments. All costs relating to the foregoing activities shall be the sole responsibility and obligation of Declarant, or of the Owner performing the same. 37 • • • Declarant's rights under this subsection (a) shall terminate upon the first to occur of (i) the date which is 30 years after the Recording of this Master Declaration, or (ii) Declarant's relinquishing of these rights by a Recorded instrument. (b) The boundaries between adjoining Lots may also be adjusted or removed (i.e., the Lots combined) by the Owner(s) thereof other than Declarant, if (i) the written consent of the Executive Board is first obtained, in the sole discretion of the Executive Board, (ii) all applicable regulations and codes are complied with and all necessary County approvals are obtained, (iii) the proposed adjustment or removal does not violate the terms of any document evidencing a security interest in the subject Lots, (iv) all Declaration and Plat amendments required by the Act and/or local land use laws are prepared, executed and Recorded, and (v) the necessary reallocation of Allocated Interests of the Owners is accomplished pursuant to the guidelines set forth above or as otherwise required by the Executive Board. All costs relating to such activity (including the attorneys' fees and costs incurred by the Executive Board in reviewing and acting upon the matter) shall be the sole responsibility and obligation of the Owner(s) applying for the same. (c) No Owner of a Lot shall grant or convey any easement rights affecting any portion of the Lot without the prior written consent of the Executive Board. (d) No further covenants, conditions, restrictions or easements shall be Recorded by any Owner (except Declarant in the exercise of its reserved rights) or other Person against any Lot or any Cabin Interest without the provisions thereof having been first approved in writing by the Executive Board for consistency with the Master Declaration, any applicable Supplemental Declaration, and the general plan of development for the Common Interest Community. Any covenants, conditions, restrictions or easements Recorded without such approvals being evidenced thereon shall be null and void. This provision does not apply to Mortgages. (e) No application for rezoning of any Lot, and no application for any variance or special use permit for any Lot, shall be filed with any governmental authority by any Owner (except Declarant in the exercise of any reserved rights) unless the proposed use of the Lot has first been approved in writing by the Executive Board and the proposed use otherwise complies with the Master Declaration and any applicable Supplemental Declaration. 3.39 Health, Safety and Welfare. In the event any uses, activities, or facilities within the Common Interest Community are deemed by the Executive Board to be an unreasonable annoyance or nuisance, or to adversely affect the health, safety or welfare of Owners or Occupants, the Executive Board may amend the Master Rules and Regulations in order to appropriately restrict and regulate such uses, activities or facilities within the Common Interest Community. Such rules shall be consistent with the purposes and provisions of this Master Declaration. 3.40 Implementation and Variances. The Executive Board may implement the restrictions set forth in this Article 3, or otherwise restrict and regulate the use and occupancy of 38 • the Common Interest Community and the Lots and Cabin Interests by reasonable Master Rules and Regulations of general application adopted by the Executive Board from time to time. The Executive Board may, in its sole discretion and in extenuating circumstances, grant variances from any of the restrictions set forth in this Article 3 (excepting any such restrictions with respect to which the Design Review Committee has the authority to grant variances under Section 6.19 below), if the Executive Board determines, in its sole discretion, (a) either (i) that a particular restriction creates a substantial hardship or burden on an Owner or Occupant, which hardship or burden was not caused by said Owner or Occupant, or (ii) that a change of circumstances since the Recordation of this Master Declaration has rendered such restriction obsolete, and (b) that the activity permitted under the variance, in the judgment of the Executive Board, will not have any material adverse effect on the Owners and Occupants of the Common Interest Community (including neighboring Lots) and is consistent with the high quality of living intended to be promoted hereby throughout the Common Interest Community. When an Owner applies for a variance, the Board must give at least ten (10) days advance written notice of the variance hearing, and of the nature of the variance requested, postage prepaid, by certified mail, return receipt requested, to all Owners of Lots (including Cabin Interests) that are situated within a radius of 300 feet of the Lot for which the variance is sought, at the current addresses for such Owners reflected in the Master Association files. The applying Owner must provide the Committee with an accurate list of the Owners to be so notified. If the foregoing notice requirements are complied with, it is not necessary that the Owners actually receive the notice that is mailed to them, such notices being deemed received upon mailing. No variance shall conflict with the P.U.D. Plan or with ordinances or regulations of the County. If a variance from the P.U.D. Plan, County laws or regulations is also required in connection with a matter for which a variance is desired hereunder, it shall be the Owner's responsibility to obtain such County variance before submitting a variance application to the Executive Board. 3.41 Declarant Activities. Nothing contained in this Master Declaration is intended or shall be construed to prevent, restrict, regulate or delay in any way Declarant's right and ability to develop, improve, maintain, repair, regulate, operate, administer, manage; market, sell, lease, encumber or dispose of the Common Interest Community, the Lots, the Cabin Interests, the Association Property, the Annexable Property, additional unspecified real estate, or any part thereof, including the right to construct Improvements and install signs thereon, all in the complete discretion of Declarant. 3.42 Landowner Obligations. All owners of land, whether ranch or residence, have obligations under State law and County regulations with regard to the maintenance of fences and irrigation ditches, controlling weeds, keeping livestock and pets under control, using property in accordance with zoning, and other aspects of using and maintaining property. Residents and landowners are encouraged to learn about these rights and responsibilities and act as good neighbors and citizens of the County. A good introductory source for such information is A Guide to Rural Living & Small Scale Agricultural put out by the Colorado State University Extension Office in Garfield County. 3.43 Recognition of Right -to -Farm. Colorado is a Right -to -Farm State pursuant • to C.R.S. 35-3-101, et.seq. Landowners, residents and visitors must be prepared to accept the 39 • • • activities, sights, sounds and smells of Garfield County's agricultural operations as a normal and necessary aspect of living in a County with a strong rural character and healthy ranching sector. All must be prepared to encounter noises, odor, lights, mud, dust, smoke, chemicals, machinery on public roads, livestock on public roads, storage and disposal of manure, and the application by spraying or otherwise of chemical fertilizers, soil amendments, herbicides, and pesticides, any one or more of which may naturally occur as part of a legal and non -negligent agricultural operations. ARTICLE IV ROADS AND STREETS IN COMMON INTEREST COMMUNITY 4.1 Ownership and Maintenance. Declarant reserves the right from time to time to convey some or all of the platted roads and streets in the Common Interest Community, together with any associated road drainage easements and facilities, to Garfield County for the use of the public, or to a Special District, or to the Master Association. Whatever entity holds title to a road or street shall be responsible for the maintenance, repair and replacement thereof, although such entity may contract to have such services performed by a third party including, in the case of Master Association ownership, by a Special District. With respect to any roads or streets that are not conveyed or dedicated to Garfield County or a Special District, the Master Association shall formally adopt a maintenance and repair plan for the maintenance and repair of such privately owned roads or streets. 4.2 Easement for Access. There is hereby created, granted and reserved for the use and benefit of Declarant, the Master Association, all Owners and Occupants, and the Club Property Owner and all Club Members and other authorized users or employees of the Club Property, perpetual, nonexclusive easements and rights-of-way over, across and along all platted roads and streets in the Common Interest Community for purpose of access, ingress and egress to and from their respective properties. No road or street shall be used for access to any lands lying outside the Common Interest Community, except the Club Property, unless Declarant expressly grants such access rights to neighboring lands. 4.3 Reserved Declarant Rights. Declarant reserves the following rights with respect to roads and streets in the Common Interest Community, which rights may be exercised by Declarant from time to time in its sole discretion, and without requiring the consent of any Owner or Mortgagee or Special District or the Master Association, to wit: (a) The right to redesignate, relocate, replat or close any such roads or streets that have not been conveyed to the County, so long as no Owner is denied reasonable ingress and egress from its Lot to a public road by reason thereof. In the event Declarant exercises such right, the access easement over such replatted (etc.) road or street shall automatically terminate, and if necessary the Master Association or Special District shall reconvey the original road or street to Declarant. (b) The right to limit, restrict or deny entry to and/or access over the roads and streets or some of them to any person or persons (except Owners and Occupants) who, in the sole judgment of Declarant, do not have legitimate business in the Common Interest Community, or who may create or participate in a disturbance or nuisance within the 40 1 Common Interest Community, or who is otherwise undesirable, through use of a controlled or guarded entrance way or limited access gate, or through such other means and upon such terms and conditions as Declarant may determine to be reasonably appropriate; the right to control and regulate all forms of vehicular and non -vehicular traffic and parking on all or some of said roads and streets; the right to require the removal of any shrub, bush, fence, wall, tree or other item of any sort which might, in the sole judgment of Declarant, impair, or obstruct a motorist's vision on any road or street within or adjacent to the Common Interest Community; and the right to adopt and enforce such other rules and regulations governing the use of such roads and streets as Declarant may consider necessary or appropriate form time to time. (c) The right to grant temporary or permanent non-exclusive access easements over roads and streets (or some of them) in the Common Interest Community for the use and benefit of lands lying outside the Common Interest Community on such terms and conditions as Declarant may consider appropriate. (d) The right to assign any one or more of these reserved rights to the Master Association or to a Special District. (e) All of the foregoing rights shall be permissive only, and neither Declarant nor any assignee of such rights shall have any obligation to exercise any of such rights. 4.4 No Liability for Gatehouses or Entry Gate or Security Patrol. If one or more gatehouse (manned or unmanned) or limited access entry gates are provided at entrances to the Common Interest Community, and/or if some form of security patrol is provided within the Common Interest Community or any part thereof, neither the Declarant, the Master Association, nor any Special District shall have any liability to any person for any injury, loss or damage of any kind or nature whatsoever arising from the fact that any gatehouse is not manned or from the failure of any person staffing a gatehouse or any mechanical or electrical entry system or any security patrol personnel to prevent or detect a theft, burglary, or any other unauthorized entry into or activity within the Common Interest Community. 4.5 Rights Appurtenant to Club Property. In addition to the access easement established in Section 4.2 above, all platted roads and streets in the Common Interest Community are subject to the access, parking and other rights granted to and enjoyed by the Club Property Owner and all authorized users, invitees (including the public) and employees of the Club Property as set forth in the Declaration of Easements and Rights, including without limitation the right to use such roads and streets for ingress and egress to the Club Property and for parking at, reasonable times before, during and following golf tournaments and other functions held upon the Club Property. All such access, parking and other rights shall be subject at all times to such reasonable rules and regulations as may be promulgated from time to time by the owner or owners of the roads and streets (i.e., the Declarant, the County, the Master Association or a Special District) governing the use of and parking upon the roads and streets, provided such rules and regulations do not substantially impair the rights granted to the Club Property Owner under the Declaration of Easements and Rights. 41 • ARTICLE V WATER AND SEWER SYSTEMS 5.1 Water System. The Water System shall be used as the sole source of potable water within the Common Interest Community, unless another source is expressly authorized by the owner of the Water System. The Water System shall be constructed, maintained and operated in conformance with the rules, regulations, approvals and permitting procedures of all applicable governmental authorities, and the operation thereof shall be governed by such reasonable rules and regulations as may be promulgated from to time by the owner/operator of the Water System. Each Owner shall pay the tap fees and user charges established from time to time by the owner/operator of the Water System. No Owner shall make, install, use, maintain or permit to exist any cross connection between the Water System, including the portion of the Water System that is contained within an Improvement on a Lot, and any pipe, plumbing, fixture, tank, receptacle, equipment or other appurtenance on or serving the Owner's Lot that is a source of contaminated or polluted water, unless the Water System is protected with a backflow prevention assembly that is approved in advance by the owner/operator of the Water System. No water service connection to any Improvement shall be installed, maintained or used unless the Water System is protected in the matter required by the owner/operator of the Water System. Said owner/operator shall discontinue water service to any Improvements if it is determined that an unprotected cross connection exists or that a proper backflow prevention assembly has not been installed or tested or that any such assembly has been removed, bypassed, otherwise rendered ineffective, or improperly maintained or tested. Service shall not be restored until such conditions or defects have been corrected to the satisfaction of the owner/operator of the Water System. 5.2 Sewer System. The central sewage collection and treatment system for the Common Interest Community (excepting Lots with an ISTS) shall be constructed, maintained and operated in conformance with the rules, regulations, approvals, and permitting procedures of all applicable governmental authorities, and the operation thereof shall be governed by such reasonable rules and regulations as may be promulgated from time to time by the owner/operator of the system. Each Owner shall pay the user charges established from time to time by the owner/operator of the system. 5.3 Ownership and Maintenance of Systems. The Water and/or Sewer Systems or portions thereof may be conveyed at any time and from time to time to the County or other appropriate governmental or quasi -governmental entity, a Special District, or the Master Association, and shall be maintained, repaired, improved, replaced, operated and managed by the owner(s) thereof from time to time or by a third party pursuant to contract. Provided, that each Owner shall be responsible for maintaining and repairing all portions of the Water System and the Sewer System that are located within the boundaries of the Owner's Lot. 5.4 Sprinkler Irrigation System. An underground sprinkler system shall be installed, maintained and used to irrigate all landscaping on Lots within the Common Interest Community and all other landscaped areas which an Owner is responsible for maintaining. Said Sprinlder Irrigation System shall be connected to and supplied by the Water System, unless expressly prohibited by the County or other applicable authority or by the owner/operator of the 42 w Water System, or unless another source is approved by the Master Association. If well water is approved for irrigation use by applicable Colorado law and by the Master Association, any underground sprinlder system which utilizes well water shall employ a rust inhibitor system approved by the Design Review Committee so that rust deposits will not accumulate on any building, wall or paved area. No Owner may have a connection between the Water System and a line carrying water from a source other than the Water System, including a well. Each Owner shall pay all user charges levied from time to time by the owner/operator of the Sprinlder Irrigation System. 5.5 Ownership and Maintenance of Sprinkler Irrigation System. The Sprinlder Irrigation System or portions thereof may be conveyed at any time and from time to time to the Master Association or to a Special District, and shall be maintained, repaired, improved, replaced, operated and managed by the owner(s) thereof from time to time or by a third party pursuant to contract. Provided, that each Owner shall be responsible for maintaining and repairing all portions of the Sprinlder Irrigation System (including the sprinkler heads) that are located within the boundaries of the Owner's Lot. Each Owner shall also be responsible for repairing (or paying for the repair of by the owner/operator of the System) any damage to the Sprinkler Irrigation System caused by the Owner or any Occupant of the Owner's Lot. No Owner shall make any Improvements to the Owner's Lot which damage or impair the functioning of the Sprinkler Irrigation System as it serves the Lot or other parts of the Common Interest Community, and any alterations in or changes that an Owner may wish to make to the Sprinlder Irrigation System located on the Owner's Lot shall first receive the prior written approval of the owner/operator of the System. 5.6 Easements. There are hereby created, granted and reserved to the Declarant, the Master Association, and any applicable Special District, perpetual, non-exclusive easements along the as -built alignment and in the as -built location of all elements and components of said Water System, Sewer System, and Sprinlder Irrigation System, throughout the entire Common Interest Community, for the construction, installation, operation, use, maintenance, repair, removal and/or replacement thereof and for access thereto for such purposes. ARTICLE VI DESIGN REVIEW COMMITTEE 6.1 Establishment of Design Review Committee. The Common Interest Community shall have a Design Review Committee, which shall consist of an odd number of members with a minimum of three (3) members and a maximum of seven (7) members, each of whom shall either be (i) a representative of the Declarant, (ii) an Owner or Occupant of a Lot or a Cabin Interest in the Common Interest Community, or (iii) a local architect, landscape architect or engineer. For so long as Declarant owns any Lots in the Common Interest Community (including annexations thereto), or until Declarant relinquishes said right to the Master Association by written notice thereto, Declarant hereby reserves and shall have the sole right to appoint, and to remove without cause, all members of the Design Review Committee, for such terms as Declarant considers appropriate. Following the expiration or relinquishment or other termination of Declarant's right to appoint members of the Design Review Committee, all such members shall be appointed and removed from time to time by the Executive Board in its discretion, and shall serve for such term as may be established by the Executive Board from time 43 • • • to time. A member appointed by the Executive Board may be removed by the Executive Board at any time upon written notice, without cause. Subject to the three (3) member minimum and seven (7) member maximum, and to the membership criteria set forth above, Declarant, or following termination of Declarant's rights under this Section the Executive Board, may increase or decrease the size of the Design Review Committee from time to time in its discretion. The Executive Board may hire or appoint a secretary for the Design Review Committee and shall provide appropriate compensation for any such secretarial services. 6.2 Establishment of Subcommittees. The Design Review Committee shall have the right but never the obligation to establish one or more subcommittees to perform one or more of the functions of the Design Review Committee. For purposes of this Master Declaration, all references to the Design Review Committee shall also refer to any subcommittee established by the Design Review Committee. The procedures for establishment of subcommittees, the rights and duties thereof, and the limitations thereon may be established and adopted by the Design Review Committee from time to time, in its discretion. 6.3 Meetings and Action of Committee. The Design Review Committee shall meet from time to time as necessary to perform its duties hereunder. The Design Review Committee may from time to time, by resolution in writing adopted by a majority of the members, designate a Committee Representative (who may but need not be one of its members) to take any action or perform any duties for or on behalf of the Design Review Committee, except the granting of approval for any Improvements and the granting of variances. The action of such Committee Representative within the authority of such Committee Representative shall constitute the action of the Design Review Committee. A majority of the members of the Design Review Committee shall constitute a quorum of the Committee. Actions of the Committee may be taken (without a meeting) by the written consent of a majority of the members thereof, or at a meeting at which a quorum is present in person, by .the vote of a majority of such members constituting the quorum, but in no event less than two (2) members. 6.4 Compensation; Expenses. The members of the Design Review Committee shall be entitled to reasonable compensation for their services on the Design Review Committee, which compensation shall be set by the Design Review Committee from time to time. The members of the Design Review Committee shall also be entitled to reimbursement for reasonable expenses incurred by them in the performance of their duties hereunder. All expenses of the Design Review Committee, including reasonable compensation of the members thereof, shall be paid by the Master Association and shall constitute a Common Expense. 6.5 Records of Actions. The Design Review Committee shall keep a permanent record of all final actions of the Design Review Committee. 6.6 Approvals in Annexed Areas. The Design Review Committee shall also be responsible for reviewing and approving all proposed Improvements on Lots within properties hereafter annexed to the Common Interest Community, unless a different reviewing body or procedure is established in the Supplemental Declaration which annexes such property. 6.7 Design Guidelines. The Design Review Committee has established an initial set of rules, procedures, standards, guidelines and requirements, including without limitation • architectural, design and development standards and guidelines, which shall govern the review and approval or disapproval of proposed Improvements within the Common Interest Community, and other matters provided for therein (the "Design Guidelines"). The Design Review Committee may make such amendments, deletions or additions to the Design Guidelines as the Committee deems necessary or appropriate from time to time to accomplish the purposes of (and as are not in conflict with) this Master Declaration and of any pertinent Supplemental Declaration and to ensure the orderly and attractive development of the Common Interest Community. Upon its adoption, each such amendment shall be provided to the Executive Board. The Design Guidelines (as they may be amended from time to time) are hereby incorporated herein and shall be deemed to be a part of this Master Declaration and of all Supplemental Declarations and shall be binding on the Common Interest Community, and on all Lot and Cabin Interest Owners, Occupants, Members or other Persons as if expressly set forth herein. A copy of the current Design Guidelines shall, at all times, be a part of the Master Association's records. The Design Review Committee, in its sole discretion, shall have the authority and obligation to determine the existence of any violation of the Design Guidelines or of any approvals granted or other decisions made by, or other requirements of, the Design Review Committee, which determination shall be binding on the Owners. The Design Review Committee, in its sole discretion, shall also have the authority and obligation to resolve disputes involving any Shared Driveway Easement designated on a Plat or on a Supplemental Plat, between the Owners of Lots served by the Shared Driveway Easement, which resolution shall be binding on such Owners, as provided in Section 9.16 below. The Design Guidelines shall at all times include "best management practices" which minimize directly connected impervious areas for storm water runoff within Lots and shall be consistent and comply with the P.U.D. Plan and Wildlife Mitigation Plan. 6.8 Design Review Fee. The Design Review Committee shall adopt, and may from time to time amend, a design review fee schedule which shall apply to requests for the original construction of a residential improvement, and for each subsequent request for approval of an Improvement on a Lot including remodels, renovations or other alterations of the original approval, except that no fee shall be charged for any proposed alteration or addition to an approved landscaping plan. The design review fee schedule shall be set forth in the Design Guidelines. The applicable fee must accompany each request for approval of any proposed Improvement. The Design Review Committee shall, not take any action on a request for approval until all required fees are paid in connection therewith. All fees collected by the Design Review Committee shall be remitted to the Master Association to help defray the expenses of the Design Review Committee's operation. 6.9 Registration of Builders. The construction or renovation of residential improvements on Lots within the Common Interest Community shall be accomplished only by general contractors who are "Registered Builders" as provided in this Section. Subcontractors need not be Registered Builders. In order to register as a Registered Builder, a contractor must submit to the Design Review Committee a signed "Registered Builder Statement" which recites as follows: (a) That the builder is a licensed general contractor in Garfield County, Colorado; 45 • • (b) The names and addresses of the last 5 clients for whom the builder has constructed homes or other structures; (c) That the builder expressly authorizes each of said clients to speak to representatives of the Design Review Committee and/or the Owner regarding the builder's performance for that client, and further authorizes the Design Review Committee to pass on any such performance information to the Owner; (d) That the builder will provide the Owner with, a current financial statement, if requested by the Owner; (e) That the builder will allow the Owner to obtain a credit report on the builder, if requested by the Owner; and (f) That the builder will furnish the Owner with such other information about the builder as the Owner may reasonably request. Upon delivery of a Registered Builder Statement containing all of the required information to the Design Review Committee, a contractor shall be deemed to be a Registered Builder for purposes hereof. Before commencing work on the construction or renovation of a residential improvement on a Lot, the Registered Builder shall obtain a Builder's Risk Insurance Policy covering all Improvements to be constructed on the Lot, with the benefits payable to the Owner, and shall deliver copies of the Policy to the Design Review Committee and to the Owner. In the case of minor renovations where the Design Review Committee does not consider such Policy necessary, the Design Review Committee may waive this requirement, in its sole discretion. 6.10 Design Review and Construction Process. Every Owner proposing to make Improvements on its Lot must comply with the design review and construction procedures that are set forth in the Design Guidelines. 6.11 Submission of Plans, Specifications and Data. Prior to commencement of work to accomplish any proposed Improvements, the Owner proposing to make such Improvements shall submit to the Design Review Committee such descriptions, surveys, plot plans, excavation plans, drainage plans, elevation drawings, construction plans, landscaping plans, waterscaping plans, specifications, and samples of materials and colors as the Design Review Committee shall reasonably request showing among other things the nature, kind, shape, height, width, exterior design, color, materials, and location of the proposed Improvements. The Owner shall also inform the Design Review Committee of the identity of the Owner's proposed Builder, who shall be a Registered Builder. All submissions shall conform to and be in accordance with the Design Guidelines established pursuant to Section 6.7. The Owner shall be entitled to receive a receipt for the same from the Design Review Committee or its authorized agent. The Design Review Committee may require submission of additional plans, specifications, or other information prior to approving or disapproving, the proposed Improvements. Until receipt by the Design Review Committee of all required information and materials in connection with the proposed Improvements and Builder, the Design Review Committee may postpone review of the application. 46 • • • 6.12 Criteria for Approval or Disapproval. The Design Review Committee shall approve any proposed Improvements only if it determines in the exercise of its reasonable judgment that the P.U.D. Plan and the Design Guidelines have been complied with; that the proposed Improvements will not be detrimental to the value or enjoyment of the surrounding areas in the Common Interest Community; that the siting, design, appearance and overall aesthetic impact of the proposed Improvements will be in harmony with the surrounding areas in the Common Interest Community; that the proposed Improvements will enhance the quality, wholesomeness, and attractiveness of the Common Interest Community and the enjoyment thereof by Lot and Cabin Interest Owners; that the upkeep and maintenance of the proposed Improvements will not become a burden on the Master Association; and that in the case of construction or renovation of a residential dwelling, the work will be performed by a Registered Builder. The Design Review Committee may condition its approval of any proposed Improvements upon the making of such changes therein as the Design Review Committee may deem reasonably appropriate, and may require that additional landscaping be performed on the subject Lot. The approval by the Committee of any Improvement shall in no event imply or require that such approval will be granted again in the future for the same or a similar Improvement, and the Committee shall have complete discretion, consistent with the standards and criteria contained herein and in the Design Guidelines, to grant or deny such approval in each instance on the merits of the particular application or proposal and considering the circumstances surrounding the same. 6.13 Decisions of Committee; Binding Effect. Decisions of the Design Review Committee shall be made in accordance with the procedures established in the Design Guidelines, and shall be conclusive and binding on all interested parties. 6.14 Completion of Work After Approval. Following the approval of any proposed Improvements by the Design Review Committee (and identification of the Registered Builder, where required), the proposed Improvements shall be completed by the Lot Owner (using the Registered Builder): (a) as promptly and diligently as possible but in no event in excess of the time periods set forth below; (b) in compliance with the Design Guidelines and with all applicable laws, regulations and codes, (c) in strict conformance with all plans and specifications and other materials furnished to and approved by the Design Review Committee; and (d) in accordance with any and all conditions imposed by the Design Review Committee. All Improvements approved by the Design Review Committee shall be completed, including issuance of a Certificate of Compliance and the removal of all construction equipment, materials and debris (i) within 18 months from the date of approval of such Improvements by the Design Review Committee, or (ii) within such other time period as the Design Review Committee may prescribe in its discretion. Provided, however, that any and all landscaping anti/or gardening approved by the Design Review Committee which is related to the initial construction of a residence on a Lot shall be completed no later than 90 days immediately following the issuance of the Certificate of Occupancy for such residence. In all cases, the Design Review Committee must issue a "Certificate of Compliance" before an Owner or Registered Builder applies to the County for a Certificate of Occupancy. Failure to comply with the terms and conditions of this Section shall constitute noncompliance with the terms and provisions of this Master Declaration and the Design Review Committee and/or the Executive Board shall have the right to invoke all 47 a rights and remedies provided to them hereunder, including but not limited to, the right to seek injunctive relief and/or to impose fines and penalties. 6.15 Right to Inspect. Any member or authorized consultant of the Design Review Committee or of the Executive Board, or any authorized officer, employee or agent of the Declarant or of the Master Association, may (but shall not be obligated to) at any reasonable time enter upon any Lot, without being deemed guilty of trespass, in order to inspect Improvements constructed or being constructed on such Lot, to ascertain whether such Improvements have been or are being built or changed in compliance with the Design Guidelines, the approvals granted by the Design Review Committee, and this Master Declaration. 6.16 Notice of Completion; Inspection of Work; Correction of Defects. (a) Upon the completion of any Improvements (excepting the related landscaping) for which plans and specifications have been approved by the Design Review Committee, the Owner or the Registered Builder shall submit to the Committee a written Notice of Completion, on a form to be provided by the Committee, which Notice shall certify that the Improvements have been completed in accordance with all plans, specifications and other materials furnished to and approved by the Committee, any conditions imposed by the Committee, and with the Design Guidelines. Until receipt of such Notice, the Committee shall not be deemed to have any notice regarding completion of the Improvements. (b) Within fourteen (14) days following receipt of the Notice of Completion, the Design Review Committee or its duly authorized representative shall inspect the Improvements. If the Committee finds that the Improvements have not been completed as set forth in the Notice of Completion, it shall notify the Lot Owner in writing of such noncompliance within said fourteen (14) day period, specifying the particulars of noncompliance, and shall require the Owner to remedy the same. If for any reason other than the Lot Owner's act or neglect, the Committee fails to notify the Owner of any noncompliance prior to the expiration of said fourteen (14) day period, the Improvements shall be deemed in compliance if the Improvements were, in fact, completed as of the date of the Notice of Completion and the Owner or Registered Builder may proceed to request a Certificate of Occupancy from the County. (c) If upon the expiration of thirty (30) days from the date of such notification of non-compliance the Lot Owner shall have failed to remedy such noncompliance, the Design Review Committee shall notify the Executive Board in writing of such failure. Thereupon the Executive Board (and its duly authorized representatives), at the Executive Board's option, may enter upon the Lot at any reasonable time after notice to the Owner, without being deemed guilty of trespass, and remove the noncomplying Improvement or otherwise remedy the noncompliance, and the Owner shall reimburse the Master Association, upon demand, for all expenses, including interest on monies expended and attorneys' fees incurred in connection therewith. If such expenses are not repaid by the Owner to the Master Association within thirty (30) days following delivery of a written demand therefore to the Owner, the Executive Board may levy a Reimbursement 48 • Assessment against such Owner and the Owner's Lot for all such costs and expenses. The right of the Master Association to remedy or remove any noncompliance shall be in addition to all other rights and remedies which the Master Association may have at law, in equity, or under this Master Declaration or any Supplemental Declaration; and the Lot Owner shall have no claim for damages or otherwise on account of the entry upon the property and remedying or removal of the noncomplying Improvement. 6.17 Certificate of Compliance. When the Design Review Committee is satisfied that the Improvements have been completed in accordance with all plans, specifications and other materials furnished to the Design Review Committee, any conditions imposed by the Committee, and with the Design Guidelines, it shall issue to the Owner a Certificate of Compliance with respect to said Improvements. Upon receipt of such Certificate, the Owner or Registered Builder may proceed to request a Certificate of Occupancy from the County. No newly constructed residence on a Lot shall be occupied until a Certificate of Compliance has been issued therefore by the Design Review Committee and a Certificate of Occupancy has been issued therefore by the County. 6.18 Improvements Must Conform to Approvals. No building, fence, wall, structure, landscaping or other Improvement of whatever type shall be commenced, constructed, erected, placed, installed, located, maintained or removed within the Common Interest Community, nor shall there be any additions or changes to the exterior of any residence or other structure or Improvement upon a Lot or the landscaping, grading or drainage thereof, including without limitation, the painting or staining (other than painting or staining with the same color • and type of paint or stain as previously existed) of exterior walls, patio covers and fences, except in accordance with plans and specifications therefore which have been submitted to and approved by the Design Review Committee and in compliance with the Design Guidelines. 6.19 Committee Power to Grant Variances. The Design Review Committee may grant variances from any of the restrictions set forth in this Master Declaration or any Supplemental Declaration or the Design Guidelines pertaining to proposed Improvements and the criteria therefore, including restrictions upon height, size, floor area, setbacks, location or placement of structures, or similar restrictions, when (i) unique circumstances not created by the Lot Owner, such as topography, natural obstructions, or aesthetic or environmental considerations would otherwise result in substantial hardship or burden which is not suffered by other similarly -situated Lots, or (ii) when a change of circumstances since the Recording of this Master Declaration has rendered such restriction obsolete, and (iii) in either case, when the Design Review Committee determines that the activity allowed by the variance will not have any material adverse effect on the Owners and Occupants of the Common Interest Community (including neighboring Lots) and is consistent with the high quality of living intended to be promoted hereby throughout the Common Interest Community. When an Owner applies for a variance, the Committee must give at least ten (10) days written notice of the variance hearing, and of the nature of the variance requested, postage prepaid, by certified mail, return receipt requested, to all Owners of Lots (including Cabin Interests) that are situated within a radius of 300 feet of the Lot for which the variance is sought, at the current addresses for such Owners reflected in the Master Association files. The applying Owner must provide the Committee with an accurate list of the Owners to be so notified. If the foregoing notice requirements are • 49 • • • complied with, it is not necessary that the Owners actually receive the notice that is mailed to them, such notices being deemed received upon mailing. All variances that are granted by the Design Review Committee must be evidenced in writing, must specify the Lot for which the variance is granted and the unique circumstances or change in circumstances justifying the variance, and must be signed by at least a majority of the members of the Committee. If any such variance is granted, no violation of the covenants, conditions and restrictions contained in this Master Declaration or any Supplemental Declaration or the Design Guidelines shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Master Declaration or of any Supplemental Declaration or the Design Guidelines for any purpose except as to the particular property and particular provision hereof covered by the variance. A copy of each variance request and approval, or denial, will be kept on file at the Master Association offices. The granting of a variance in a particular instance shall in no event imply or require that such a variance will be granted again in the future in a similar situation, and the Committee shall have complete discretion, consistent with the standards and criteria contained herein and in the Design Guidelines, to grant or deny a variance in each instance on the merits of the particular application and considering the circumstances surrounding the same. No variance shall conflict with the P.U.D. Plan or with ordinances or regulations of the County. If a variance from the P.U.D. Plan or County laws or regulations is also required in connection with a matter for which a variance is desired hereunder, it shall be the Owner's responsibility to obtain such County variance before submitting a variance application to the Design Review Committee. 6.20 Nonliability for Approval or Disapproval of Plans and Specifications, for Issuance of Certificates of Compliance, or for Registration of Builders. The criteria for Design Review Committee approval of plans and specifications are set forth in Section 6.12 above. The Design Review Committee shall not be responsible for reviewing plans and specifications with respect to engineering design or for compliance with zoning, building ordinances, environmental laws, or any other applicable laws or regulations. By its approval of any such plans and specifications, neither the Design Review Committee, the members thereof, the Master Association, any Member, the Executive Board nor the Declarant assumes or shall have any liability or responsibility with respect to engineering design or for compliance with zoning, building ordinances, environmental laws, or any other applicable laws or regulations, or for any defect in any Improvement constructed from such plans and specifications. Neither the Design Review Committee, any member thereof, the Master Association, the Executive Board nor the Declarant shall be liable to any Lot or Cabin Interest Owner, Occupant or other Person for any injury, damage, loss or prejudice suffered or claimed on account of (a) the approval or disapproval of any plans, drawings or specifications, whether or not defective, (b) the construction or performance of any work, whether or not pursuant to approved plans, drawings and specifications, (c) the issuance of a Certificate of Compliance, or (d) the development, or manner of development of any property within the Common Interest Community. The approval of plans and specifications by the Design Review Committee, and/or the issuance of a Certificate of Compliance by the Design Review Committee, shall not under any circumstances constitute or 50 • be deemed to be a representation or warranty that the plans, specifications or completed Improvements comply with applicable laws, resolutions, ordinances or regulations, including but not limited to, zoning ordinances and building codes and environmental laws. Likewise, Builders shall register with the Design Review Committee in the manner set forth in Section 6.9 above and in the Design Guidelines. By registering a Builder, the Design Review Committee does not represent or warrant, either expressly or by implication, and hereby disclaims any representations or warranties, that the Registered Builder will in fact complete the Improvements on schedule, within the Owner's budget, or in a competent and workmanlike manner, or that the Registered Builder is or will remain financially sound, and the Lot Owners assume all risks regarding such matters. Neither the Design Review Committee, the members thereof, the Master Association, any Member, the Executive Board nor the Declarant shall be liable to any Lot or Cabin Interest Owner, Occupant or other Person for any injury, damage, loss or prejudice suffered or claimed on account of (a) the registration of any Builder, (b) defects or delays in the work performed by a Registered Builder, (c) financial difficulties experienced by a Registered Builder, and/or (d) any other problems arising from an Owner's use of a Registered Builder. 6.21 Featured Builders. Upon compliance with the provisions of this Article 6 and the obtaining of all requisite Design Review Committee approvals, Featured Builders shall have the right to construct or alter Improvements on any Lot(s) owned by the Featured Builder within the Common Interest Community, and to post a sign incident to such activity, which sign has been approved in advance by the Design Review Committee. Nothing contained herein shall obligate the Declarant to designate a Lot Owner as a Featured Builder hereunder, and the designation of any Person as a "Featured Builder" shall be in Declarant's sole and absolute discretion. Furthermore, in no event shall the terms and provisions hereof be construed to obligate Declarant to implement or, once initiated, to continue the Featured Builder program contemplated hereby, which implementation and/or continuation shall be in Declarant's sole discretion. DECLARANT HEREBY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, RELATING TO THE DESIGNATION OF ANY PERSON AS A FEATURED BUILDER HEREUNDER, AND DECLARANT SHALL HAVE NO LIABILITY OF ANY KIND ARISING FROM OR RELATING IN ANY WAY TO THE DESIGNATION OF, OR FAILURE TO DESIGNATE, ANY PERSON AS A FEATURED BUILDER. 6.22 Enforcement. The requirements and provisions of this Article 6 and/or of the Design Guidelines shall be enforceable in accordance with the rights and procedures set forth herein. ARTICLE VII ASSOCIATION PROPERTY 7.1 Use and Enjoyment of Association Property. With the exception of Limited Common Areas, and except as otherwise provided in this Master Declaration, in any Supplemental Declaration, or in the Master Rules and Regulations, each Owner shall have the non-exclusive right to use and enjoy Association Property in common with all other Owners. This right to use and enjoy Association Property shall extend to each Owner, Occupant, and the 51 • • • family members, guests and invitees of each Owner, and to such other users as may be authorized by this Master Declaration or by the Executive Board from time to time, and shall be appurtenant to each Lot or Cabin Interest, subject at all times to the provisions of this Master Declaration (including Declarant's reserved rights hereunder), any applicable Supplemental Declaration, the Articles, Bylaws, and the Master Rules and Regulations. No Owner or Occupant shall place any structure or store or leave any materials or personal property upon Association Property, nor shall any Owner or Occupant engage in any activity which will temporarily or permanently impair free and unobstructed access to all parts of the Association Property (excepting Limited Common Areas) by all Owners. Use of the Association Property is also subject to any applicable terms of the Declaration of Easements and Rights. With respect to Limited Common Areas, each Owner and Occupant of a Lot designated by Declaration or Plat for the use of such Limited Common Area shall have the non-exclusive right to use and enjoy the same in common with all other Owners and Occupants of Lots so designated, for all purposes for which the Limited Common Area was created, subject to any Master Rules and Regulations relating thereto. 7.2 Recreational, Health and Social Facilities. Declarant plans to provide certain recreational, health and social facilities for the use and benefit of Owners and Occupants and other persons authorized from time to time by Declarant or the Master Association, which facilities may include, without limitation, an equestrian center, a trail system, parks, picnic areas, and similar facilities. The location, design, timing, kind, value and nature of such facilities shall be determined by Declarant in the exercise of its sole discretion, and Declarant reserves the right to increase or add to such facilities or to expand or enlarge the facilities, without the consent of the Owners, Mortgagees, or the Master Association. Such facilities may be located within or outside the Common Interest Community, and if and when transferred to the Master Association they shall constitute Association Property. Notwithstanding any other provisions of this Master Declaration, Declarant and/or the Master Association expressly reserve and shall have the following rights with respect to such facilities: (a) Declarant shall have the right at any time and from time to time to use any such facility, or portion thereof, for office or sales or professional purposes or functions, in Declarant's sole discretion, for so long as Declarant owns any Lots or Cabin Interests in the Common Interest Community (including annexations thereto). (b) The Master Association shall have the right to impose a fee or charge for the use and enjoyment of any of such recreational, health or social facilities, or any services offered therein, and may permit the use of any part thereof for private, charitable or professional functions. (c) The Master Association shall have the right to lease or grant concessions or to contract with others to provide programs or services within such facilities for the benefit of Owner and Occupants and such other persons as the Master Association may authorize from time to time. (d) Declarant, for so long as it owns any Lots or Cabin Interests in the Common Interest Community (including annexations thereto), and the Master 52 • • • Association, shall have the right to authorize and permit persons who are not Owners or Occupants in the Common Interest Community (including, without limitation, the public) to use the recreational, health or social facilities upon such conditions, and for such fees and charges payable to the Master Association, as Declarant or the Master Association may determine to be appropriate from time to time, in their discretion. 7.3 Master Association May Regulate Use of Association Property. The Master Association, acting through the Executive Board, shall have the right and authority to regulate the use of Association Property by the promulgation, enforcement and interpretation from time to time of such Master Rules and Regulations relating thereto as the Master Association considers necessary or appropriate for the protection and preservation of Association Property and the enhancement of the use and enjoyment thereof by Owners and Occupants and other authorized users, subject always to any rights or interests created by the Declaration of Easements and Rights. The Master Association, acting through the Executive Board, may for good cause suspend the right of any person to use and enjoy Association Property, including without limitation the right of a Member who or which is delinquent in the payment of any Assessments, and the right of any Member or other authorized user who is in violation of the terms and provisions of this Master Declaration or any Supplemental Declaration, the Articles, Bylaws, Master Rules and Regulations, Design Guidelines or the terms and provisions of any approvals granted by the Design Review Committee. 7.4 Master Association to Maintain and Improve Association Property. The Master Association, its agents and employees, or a Special District, shall maintain and repair, snowplow as necessary, and otherwise manage the Association Property (including the Limited Common Areas), including, but not limited to, any Improvements, postal kiosks, landscaping, paths, trails, parking areas, drives, lighting, signage, and recreational and other facilities located thereon. The Master Association may construct, alter and remove such Improvements and landscaping upon Association Property as the Master Association in its discretion considers necessary, desirable or appropriate from time to time, and may do all such other and further acts which the Executive Board deems necessary or appropriate to preserve, protect and enhance the Association Property and the beauty thereof in accordance with the general objectives for the Common Interest Community reflected in this Master Declaration. Separate bids shall be let for the maintenance of Limited Common Areas so that the costs thereof can be assessed exclusively to the Lots benefited thereby. As provided in Section 11.10 below, the Master Association may contract with third parties, including a Special District, to perform any of the foregoing responsibilities. 7.5 No Partition of Association Property. No Owner or other Person shall have any right to partition or to seek the partition of Association Property or any part thereof. 7.6 Owner Liability for Owner or Occupant Damage to Association Property. Each Owner shall be liable to the Master Association for any damage to Association Property or for any expense, loss or liability suffered or incurred by the Master Association in connection with Association Property arising from (a) the negligence or willful misconduct of such Owner or of any Occupant, agent, employee, family member, guest or invitee of such Owner, or (b) any 53 • • • violation by such Owner or any Occupant, agent, employee, family member, guest or invitee of such Owner of any law, regulation, or code, including without limitation any environmental law, or of any provisions of this Master Declaration, any Supplemental Declaration, or the Master Rules and Regulations, relating to Association Property. Each Owner shall indemnify, defend and hold the Master Association harmless from any loss, damage, expense or liability arising from the circumstances described in subsections (a) or (b) immediately above. The Master Association shall have the power to levy and collect a Reimbursement Assessment against a Lot Owner to recover the costs, expenses, damages, losses or liabilities incurred by the Master Association as a consequence of any such negligence, willful misconduct or violations. 7.7 Damage or Destruction to Association Property. In the event of damage to or destruction of Association Property, including Improvements thereon, by fire or other casualty, the Master Association shall repair or replace the same in accordance herewith. Repair, reconstruction, or replacement of Association Property shall be accomplished under such contracting and bidding procedures as the Master Association shall determine are appropriate. If insurance proceeds available to the Master Association on account of damage or destruction exceed the cost of repair, reconstruction, and replacement, the Master Association may use the same for future maintenance, repair, improvement, and operation. of Association Property or for any other use deemed appropriate by the Executive Board. 7.8 Condemnation of Association Property. If any Association Property or part thereof or interest therein is taken under exercise of the power of eminent domain or by purchase in lieu thereof, the portion of any award in condemnation or the price payable for the deed in lieu that is attributable to the Association Property taken or purchased shall be paid to the Master Association. The Master Association shall have the exclusive right to participate in such condemnation proceedings and to represent the interests of all Owners and Occupants and other Persons therein. Any award or funds received by the Master Association shall be held by the Master Association for the purposes stated in Section 7.7 above or as a reserve for future maintenance, repair, reconstruction, or replacement of Association Property or may be used for Improvements or additions to or operation of Association Property or for such other uses as may be deemed appropriate by the Executive Board. Except as may otherwise be provided by the Act, no Owner or other Person shall be entitled neither to participate as a party or otherwise in any condemnation proceedings nor to receive any proceeds therefrom. 7.9 Title to Association Property Upon Dissolution of Master Association. In the event of dissolution of the Master Association, the Association Property shall, to the extent permitted by law and reasonably possible, be conveyed or transferred to an appropriate public, governmental or quasigovernmental agency or organization or to a nonprofit corporation, association, trust, or other organization, to be used, in any such event, for the common benefit of Owners for the purposes for which the Association Property was held by the Master Association. If the foregoing is not possible, the Association Property shall be sold or disposed of and the proceeds from the sale or disposition shall be distributed to Owners in proportion to each Owner's Allocated Interest in the Common Expenses of the Master Association. 7.10 Mechanic's Liens on Association Property. Declarant shall be responsible for the release of mechanics' liens filed with respect to Association Property, or any part thereof, if such liens arise from labor performed or materials furnished at the instance of Declarant, its 54 • • agents, contractors or subcontractors. Likewise, the Master Association shall be responsible for the release of mechanics' liens filed with respect to Association Property, or any part thereof, if such liens arise from labor performed or materials furnished at the instance of the Master Association, its directors, officers, agents, contractors or subcontractors. No labor performed or materials furnished with respect to a Lot at the instance of the Lot Owner shall be the basis for filing a lien against Association Property. No labor performed or materials furnished with respect to Association Property at the instance of the Executive Board shall be the basis for filing a lien against any Lot. ARTICLE VIII DECLARANT'S RESERVED RIGHTS Declarant hereby expressly reserves to itself and its successors and assigns the following described rights, which include development rights and special Declarant rights, any one or more of which rights may be exercised, in the sole and absolute discretion of Declarant, at any time and from time to time during the period commencing upon the Recording of this Master Declaration in the County and ending on the date of termination of such rights established under Section 8.16 below. It is expressly understood that Declarant shall not be obligated to exercise any of these reserved rights, and that no consent shall be required from any Owner, Mortgagee, Special District or the Master Association for the effective exercise of any of these reserved rights. Except as limited by this Article 8, such reserved rights may be exercised upon or in connection with all or any portion of the Common Interest Community described on attached Exhibit A, the Annexable Property described on attached Exhibit B, and/or the additional unspecified real estate referred to in Section 8.7 below. Such rights may be exercised with respect to different parcels of said real estate at different times, and in connection therewith Declarant hereby states that (i) no assurances are made regarding the boundaries of said different parcels or with respect to the order in which such parcels may be subjected to the exercise of these reserved rights, even if a reference to a phase or phasing appears in a legal description, Plat, P.U.D. Plan or other agreement relating to the property, and (ii) if a particular reserved right is exercised in any portion of the real estate subject to that reserved right, that reserved right is not required to be exercised in all or any portion of the remainder of that real estate. The reserved rights hereinafter set forth shall be prior and superior to any other provisions of this Master Declaration or of any Supplemental Declaration, and may not be amended, modified, terminated or otherwise altered in any way without the express prior written consent of Declarant. All conveyances of Lots and Cabin Interests and other portions of the Common Interest Community hereafter made, whether by Declarant or otherwise, shall be deemed and construed to reserve to Declarant and/or to grant to Declarant all of the rights reserved by and to Declarant in this Article 8 and elsewhere in this Master Declaration or in any Supplemental Declaration, even though no specific reference to such rights appears in the conveyancing instruments. Nothing in this Article 8 shall limit or impair any other rights granted or reserved to Declarant by other provisions of this Master Declaration or of any Supplemental Declaration. The following rights are hereby reserved to Declarant and its successors and assigns: 55 • • • 8.1 Construction of Improvements. The right, but not the obligation, to construct additional Improvements on Association Property at any time and from time to time for the improvement and enhancement thereof for the benefit of the Master Association, the Owners, or some of them, and/or pursuant to the Declaration of Easements and Rights. Furthermore, the right throughout the Common Interest Community to complete Improvements indicated on the Plat filed with this Master Declaration, and on any Supplemental Plats filed with any Supplemental Declarations, as such Plats and Declarations may be amended from time to time. Furthermore, the right to construct and complete Improvements required by the terms of the Subdivision Improvements Agreement Recorded , at Reception No. in the Office of the Clerk and Recorder of Garfield County, Colorado, and by the terms of any other such Subdivision Improvements Agreements that may hereafter be executed by Declarant in connection with annexations to the Common Interest Community, as said Agreement or Agreements may be amended from time to time. Furthermore, the right to create, grant and/or use and enjoy additional non-exclusive easements, and to relocate existing platted or other easements, upon or across any portion of the Common Interest Community (including Lots, but excepting Building Envelopes), as may be reasonably required for the construction by Declarant of the above-described Improvements or the effective exercise by Declarant of any of the other reserved rights described in this Article 8. 8.2 Sales, Marketing and Management. The right to construct, locate or operate, and to maintain upon, and to remove from, any part of the Common Interest Community including Lots owned by Declarant and Association Property, in the discretion of Declarant, and in such number, size and location as may be reasonably required by Declarant in connection with the completion of Improvements, the management of the development, and/or the promotion, marketing, sale or rental of Lots or Cabin Interests, the following: (a) Sales offices, management offices, and/or construction offices, and structures containing or relating to the same. Such offices, to the extent they are not situated on a Lot, are hereby declared to be personal property of the Declarant and shall in any case be removable by Declarant or its successors or assigns promptly upon the Declarant or its successors or assigns ceasing to be a Lot or Cabin Interest Owner; (b) Signs identifying and advertising the Common Interest Community and the Lots and/or Cabin Interests therein, or relating to development or construction thereon; (c) Model residences constructed or to be constructed on Lots; (d) Parking areas and facilities, and lighting, necessary or desirable in the marketing of the Common Interest Community and the Lots and Cabin Interests; (e) Employees in offices; equipment; vehicles; and marketing and construction materials. Together with the right to attract, invite or bring prospective purchasers of Lots and/or Cabin Interests into the Common Interest Community at all times, and to permit them to use and enjoy the Association Property. 56 • 8.3 Merger. The right to merge or consolidate the Common Interest Community • • with another common interest community of the same form of ownership. 8.4 Declarant Control of Master Association. The right to appoint or remove any Executive Board member or officer of the Master Association, as more specifically set forth in Section 10.5 below, but only for and during the "Period of Declarant Control of Master Association" as defined in said section 10.5. 8.5 Annexation of Additional Properties. The right to annex to the Common Interest Community all or any part of the Annexable Property described on attached Exhibit B. Each Owner hereunder hereby grants to Declarant the right to annex all or any part of the Annexable Property to the Common Interest Community and to modify such Owner's Allocated Interests accordingly. Alternatively, Declarant shall have the right and is authorized to develop portions of the Annexable Property and/or to convey, lease or mortgage portions of the Annexable Property to such third party or parties as Declarant may deem appropriate, without annexing them to the Common Interest Community, whether for purposes consistent with this Master Declaration or otherwise. Declarant makes no assurances that all or any portion of the Annexable Property will be added to the Common Interest Community and Declarant reserves the right to annex all or any portion of the Annexable Property to the Common Interest Community in any order it deems appropriate in its sole and absolute discretion. 8.6 Annexation Procedure. The annexation of additional real property to the Common Interest Community shall be accomplished by the Recording by Declarant with the Clerk and Recorder of Garfield County of an Annexation Deed or a Supplemental Declaration containing a legal description of the land area to be added to the Common Interest Community and amending this Master Declaration accordingly, together with a Supplemental Plat thereof. In no event shall any annexation increase the number of Lots in the Common Interest Community beyond the maximum stated in the Recitals to this Master Declaration. The Supplemental Declaration shall describe any Association Property (including Limited Common Areas) thereby created. The annexation of the Annexable Property may be accomplished by successive Annexation Deeds or Supplemental Declarations, in no particular or pre -established order, and may provide that property annexed thereby (the "Annexed Property") is phased so that it is made subject to this Master Declaration at different times. Upon Recording of an Annexation Deed or Supplemental Declaration, the Annexed Property described therein shall be subject to all of the covenants, conditions, restrictions, limitations, reservations, exceptions, equitable servitudes, and other provisions set forth in this Master Declaration. Any such Annexation Deed or Supplemental Declaration may impose on the Annexed Property described therein additional covenants, conditions, restrictions, limitations, reservations, exceptions, equitable servitudes, and other provisions than those set forth in this Master Declaration, taking into account the unique and particular aspects of the Annexed Property covered thereby and of the proposed development thereof. Furthermore, Declarant shall have the right to reserve in such Annexation Deed or Supplemental Declaration any development rights that Declarant considers necessary or appropriate; provided that such provision shall not extend the termination date for the exercise of Declarant's development rights as set forth in Section 8.16 below. A Supplemental Declaration may provide for a Subassociation of Owners within the Annexed Property described in the 57 • • • Supplemental Declaration and for the right of the Subassociation to assess such Owners for common expenses unique to those Owners. 8.7 Annexation of Additional Unspecified Real Estate. The right to annex additional, unspecified real estate to the Common Interest Community to the fullest extent permitted by the Act. In the event that Declarant elects to annex any such additional unspecified real estate, Declarant shall annex such property to the Common Interest Community in accordance with the provisions of Section 8.6 above. 8.8 Withdrawal Rights and Procedure. The right at any time and from time to time to withdraw from the Common Interest Community (and any annexations thereto) any Declarant - owned Lot(s) or Association Property. Withdrawal may only be accomplished by the recording by Declarant of an amendment to this Master Declaration or any Supplemental Declaration affected by the withdrawal, and an amendment to the Plat or any Supplemental Plat affected by the withdrawal. Upon the recording of such amendments, the withdrawn Lots and/or Association Property shall no longer be part of the Common Interest Community or subject to this Master Declaration or any applicable Supplemental Declaration in any way. Each Declarant -owned Lot, and each Declarant -owned Association Property, is hereby described and declared to be a separate portion of real estate that is subject to this right of withdrawal, and Declarant expressly reserves the right to withdraw one or more Declarant - owned Lots and/or all or a portion of any Declarant -owned Association Property from the Common Interest Community. Once a Lot has been conveyed to a Lot Owner other than Declarant, that portion of the real estate is no longer subject to this right of withdrawal. Likewise, once an Association Property has been conveyed to the Master Association, a Special District, or the County, that portion of the real estate is no longer subject to this right of withdrawal. The withdrawn property shall be subject to whatever easements, if any, may be reasonably necessary for access or utility service to, or operation or management or use or enjoyment of, the Common Interest Community or any part thereof. Similarly, the owner(s) of the withdrawn property shall have whatever easements, if any, are reasonably necessary for access or utility service to or for use or enjoyment of the withdrawn property over and across Special District and/or Association Property within the Common Interest Community. At the time any withdrawal of real estate is accomplished, Declarant shall record whatever documents are necessary to establish such reciprocal easements in the Garfield County records. 8.9 Effect of Expansion or Contraction. In the event any real property is annexed to the Common Interest Community as provided herein, or if any real property is withdrawn from the Common Interest Community as provided herein, the definitions used in this Master Declaration shall be automatically expanded or contracted to encompass and refer to the Common Interest Community as expanded or contracted, e.g., "Common Interest Community" shall mean the real property described herein plus any additional real property annexed thereto and/or minus any real property withdrawn therefrom; similarly, "Association Property" and "Lots" shall mean and include those areas as described herein as well as or less those so 58 • • • designated on any Supplemental Declaration or Supplemental Plat (or any amendment to a Declaration or Plat) relating to any real property which is annexed or withdrawn pursuant to this Article 8. Association Property shall also mean and include all properties located from time to time within the Annexed Property that fall within the definition of Association Property contained in this Master Declaration, less any Association Property removed by withdrawal. References to this Master Declaration shall mean this Master Declaration as so supplemented by any Supplemental Declaration and any Supplemental Plat, or as amended. Every Owner of a Lot or Cabin Interest in the area annexed to the Common Interest Community shall, by virtue of ownership of such Lot or Cabin Interest and upon recordation of the Supplemental Declaration annexing such property to the Common Interest Community, be a member of the Master Association and, except as may be otherwise provided in the Supplemental Declaration, shall be entitled to the same rights and privileges and subject to the same duties and obligations as any other Master Association Member. Regular Assessments for Lots or Cabin Interests within the Annexed Property shall commence as of the date of the Recording of the Supplemental Declaration and shall be prorated as of such date. The recording of amendments to the Master Declaration and Plat, whether in the form of Supplemental Declarations and Supplemental Plats or otherwise, which reallocate the Allocated Interests in the Common Interest Community, shall automatically: (a) Vest in each existing Owner the reallocated Allocated Interests appurtenant to the Owner's Lot or Cabin Interest; and (b) Vest in each existing Mortgagee a perfected security interest in the reallocated Allocated Interests appurtenant to the encumbered Lot or Cabin Interest. 8.10 Subdivision of Lots or Parcels. Declarant shall have and hereby reserves the right to subdivide any Declarant -owned Lot or parcel located within the Common Interest Community to create additional Lots, Association Property, and/or streets, subject to the maximum number of Lots set forth in the Recitals to this Master Declaration; provided, however, that such subdivision is consistent with the P.U.D. Plan or that said P.U.D. Plan is amended if necessary, and that the subdivision is accomplished in compliance with County subdivision requirements. Upon the subdivision of any Lot or parcel in accordance with the terms and conditions contained herein, the Allocated Interests of all Owners shall be reallocated in accordance with the definition of Allocated Interests contained in this Master Declaration. 8.11 Transfer of Additional Property to Master Association. The right, but not the obligation, to transfer additional real and personal property, and Improvements thereon, to the Master Association from time to time in furtherance of this Master Declaration. 8.12 Other Reserved Development Rights. Subject to compliance with any applicable County requirements, the right with respect to all or any Declarant -owned portion of the Common Interest Community (including the Lots) to (a) create Association Property (including Limited Common Areas); (b) create additional Lots, subject to the maximum set forth in the Recitals to this Master Declaration; (c) create Cabin Interests; (d) subdivide Lots as set forth in Section 8.10 above; (e) combine Lots; (f) reconfigure Lots and/or Association Property, or otherwise modify or amend recorded Plats; (g) amend the P.U.D. Plan; (h) convert Lots into 59 • • • Association Property and/or streets; and (i) convert Association Property into Lots and/or streets. Additionally, in order to effectively exercise the rights reserved to Declarant under this Article 8, the right to amend this Master Declaration (without the consent of Owners, Mortgagees or the Master Association being required) for purposes of complying with or qualifying for federal or state registration of the project (ii) satisfying title insurance requirements, or (iii) bringing any provision or provisions of the Master Declaration into compliance with the Act. 8.13 Owner Review, Acceptance and Waiver of Rights Re: P.U.D. Plan and Declarant's Reserved Rights. Each Owner, by its acceptance of a deed or other conveyance vesting in the Owner an interest in a Lot or Cabin Interest in the Common Interest Community, acknowledges that the Owner has carefully reviewed and understands the P.U.D. Plan (as it may be amended from time to time) and the Declarant's reserved rights as set forth in this Article 8 or elsewhere in this Master Declaration or in any Supplemental Declaration, that the Owner accepts and approves such matters and appreciates any potential impacts that the implementation of the P.U.D. Plan and/or the exercise of such reserved rights may have on the Owner's Lot or Cabin Interest, and expressly waives any rights the Owner may have to object to or to interfere in any way with the implementation of such P.U.D. Plan or the exercise of such rights. 8.14 Declarant As Attornev-in-Fact for Owners. Each Owner, by its acceptance of a deed or other conveyance vesting in the Owner an interest in a Lot or Cabin Interest in the Common Interest Community, does hereby irrevocably constitute and appoint Declarant (with full power of substitution) as said Owner's attorney-in-fact, in said Owner's name, place and stead, to take any and all actions and to execute and deliver any and all instruments as may be necessary or appropriate to Declarant's exercise of the various rights reserved to Declarant under this Article 8 or elsewhere in this Master Declaration or in any Supplemental Declaration, specifically including without limitation Declarant's reserved right to use all existing easements within the Common Interest Community, or to create, grant, use and/or replat and relocate additional or existing easements across any portion of the Common Interest Community excepting platted Building Envelopes. 8.15 Transfer of Declarant's Reserved Rights. Any one or more rights created or reserved for the benefit of Declarant under this Article 8 or elsewhere in this Master Declaration or in any Supplemental Declaration may be transferred to any Person by an instrument describing the right or rights transferred and Recorded in Garfield County. Such instrument shall be executed by the transferor Declarant and the transferee. The provisions of Section 38-33.3-304 of the Act shall apply to any transfer of special declarant rights. 8.16 Termination of Declarant's Reserved Rights. With the exception of Declarant's right to appoint or remove Executive Board members and officers of the Master Association, which is addressed in Section 10.5 below, the rights reserved to Declarant in this Article 8 shall automatically terminate and expire upon the first to occur of (i) the date which is thirty (30) years after the Recording of this Master Declaration, or (ii) Declarant's relinquishment and surrender of such rights by Recorded instrument. Declarant may from time to time relinquish and surrender one or more but less than all of the reserved rights, in which event the unrelinquished reserved rights shall remain fully valid and effective for the remainder of the term thereof. The Master Association may extend the time period for exercise of a development right, or reinstate a lapsed development right, subject to whatever terms, conditions and limitations the Master Association 60 • • may impose on the subsequent exercise of the development right. The extension or renewal of a development right and any terms, conditions and limitations shall be included in an amendment executed by Declarant or the owner of the real estate subject to the development right and the Master Association. ARTICLE IX EASEMENTS 9.1 Easements for Incidental Encroachments. If any portion of an Improvement approved by the Design Review Committee encroaches in its approved location upon an Association Property; including any future encroachments arising or resulting from the repair or reconstruction of an Improvement subsequent to its damage, destruction or condemnation, a valid easement on the surface and for subsurface support below such surface and for the maintenance of same, so long as it stands, shall and does exist for such incidental encroachment. 9.2 Blanket Master Association Utility and Drainage Easement Over Streets, Roads, Shared Driveways, and Association Property. There is hereby created, granted and reserved to the Master Association, its agents, employees and assigns, a perpetual, non-exclusive blanket easement over, across, upon and under all streets and roads and Shared Driveways in the Common Interest Community and all Association Property for the construction, installation, testing, operation, monitoring, management, administration, maintenance, repair, removal and replacement of utilities and utility lines, irrigation lines and systems, water features, wetlands areas, and drainage systems, pipes, wires, circuits, conduits, meters, facilities and systems for the benefit of the Common Interest Community or any part thereof or neighboring lands, including but not limited to drainage, domestic water, irrigation water, sewer, gas, telephone, electricity, cable TV and other master TV and communication systems, if any, together with an easement for access, ingress and egress to accomplish such purposes, and together with the right to grant any such easement rights to utility companies and/or Special Districts. The Master Association or other person or entity exercising such utility and drainage easement rights shall be obligated to restore, reseed, replant and/or re -landscape the surface of the disturbed area to as close to its original condition as possible, as promptly as possible following completion of any utility or drainage work. 9.3 Master Association Administrative Easement Over Streets Roads Shared Driveways, and Association Property. There is hereby created, granted and reserved to the Master Association, its agents, employees and assigns, a perpetual, non-exclusive easement over, across, upon and under all streets and roads and Shared Driveways in the Common Interest Community and all Association Property and a right to use the same for purposes of enabling the Master Association to perform the duties and functions which it is obligated or permitted to perform pursuant to this Master Declaration. 9.4 Declarant Easement Over Streets, Roads, Shared Driveways, and Association Property. There is hereby created, granted and reserved to Declarant and its successors and assigns a non-exclusive easement over, across, upon and under all streets and roads and Shared Driveways in the Common Interest Community and all Association Property (including without limitation all easements benefiting the Master Association), including a right of access, ingress and egress thereto, and a right to use such streets, roads, Shared Driveways and Association 61 • • Property, and each and every part thereof, for all purposes reasonably related to (a) Declarant's development, improvement, maintenance, management, marketing and sale of the Common Interest Community and all portions thereof, including any annexations thereto, and/or (b) Declarant's exercise and implementation of the rights reserved to Declarant under this Master Declaration or any Supplemental Declaration, and/or (c) the discharge by Declarant of any of its obligations under this Master Declaration or any Supplemental Declaration or under the Subdivision Improvement Agreement recorded , at Reception No. and any other Subdivision Improvement Agreements that may be executed by Declarant in connection with properties annexed to the Common Interest Community, or any other Declarant obligations relating to the Common Interest Community. Declarant's rights with respect to this easement shall terminate upon the first to occur of (i) the date which is thirty (30) years after the Recording of this Master Declaration, or (ii) Declarant's relinquishment of all or a portion of this easement right by Recorded instrument. 9.5 Utility, Drainage, and/or Irrigation Easements. There are hereby created, granted and reserved for the use and benefit of the Declarant, the Master Association, the Club Property Owner, appropriate public utilities, and Special Districts, if any, perpetual, non- exclusive easements over, upon, across and under those portions of the Common Interest Community that are designated "Utility Easement", "Irrigation Easement", or "Drainage Easement" on the Plat or any Supplemental Plat. Utility Easements may be used for the installation, operation, maintenance, repair, removal or replacement of underground utility lines (and related surface facilities). Drainage Easements and Irrigation Easements may be used for the installation, operation, maintenance, repair, removal or replacement of drainage and irrigation systems and facilities, respectively. Except as may otherwise be provided in any Subdivision Improvements Agreement between Declarant and the County or in any other separate agreement between Declarant and a utility supplier, the party causing the disturbance shall be obligated to restore, repair, reseed and/or relandscape any area disturbed by the exercise of these easement rights to as close to its original condition as possible, as promptly as possible following the completion of any work within a Utility, Drainage or Irrigation Easement. 9.6 Water Body Maintenance Easements. There are hereby created, granted and reserved for the use and benefit of Declarant and the Master Association perpetual, non- exclusive "Water Body Maintenance Easements" in the locations shown on the Plat or on any Supplemental Plat, for purposes of operating; maintaining, repairing and improving the bodies of water (reservoirs, lakes, ponds, etc.) and associated improvements and facilities served by such easements, as may be deemed necessary or appropriate from time to time by the Declarant or the Master Association. 9.7 Fence Maintenance Easements. There are hereby created, granted and reserved for the use and benefit of Declarant and the Master Association perpetual, non-exclusive " Fence Maintenance Easements" in the locations shown on the Plat or on any Supplemental Plat, for purposes of maintaining, repairing and improving fences, and for the control of vegetation within the easements, as may be deemed necessary or appropriate from time to time by Declarant or the Master Association. 9.8 Berm Maintenance Easements. There are hereby created, granted and reserved for the use and benefit of Declarant and the Master Association perpetual, non-exclusive "Berm 62 • • • Maintenance Easements" in the locations shown on the Plat or any Supplemental Plat, for purposes of maintaining, repairing and improving berms, and for the control of vegetation within the easements, as may be deemed necessary or appropriate from time to time by Declarant or the Master Association. 9.9 Equestrian/Pedestrian Trail Easement. There is hereby created, granted and reserved for the use and benefit of the Declarant, the Master Association, and all Owners and Occupants, a perpetual, non-exclusive "Equestrian/Pedestrian Trail Easement" in the location shown on the Plat and on any Supplemental Plat, for purposes of constructing, using and maintaining an equestrian and pedestrian trail. Members of the public shall also have the right to use the Equestrian/Pedestrian Trail Easement, for equestrian purposes only, provided they first check in at the Equestrian Center. The Master Association shall be responsible for maintaining the Equestrian/Pedestrian Trail Easement. 9.10 Pedestrian/Bike Trail Easement. There is hereby created, granted and reserved for the use and benefit of the Declarant, the Master Association and all Owners and Occupants, but not members of the public, a perpetual, non-exclusive "Pedestrian/Bike Trail Easement" in the location shown on the Plat and on any Supplemental Plat, for purposes of constructing, using and maintaining a non -motorized bicycle and pedestrian trail. The Master Association shall be responsible for maintaining the Pedestrian/Bike Trail Easement. 9.11 Conservation Easement. There is hereby created, granted and reserved for the use and benefit of the Association a perpetual, non-exclusive "Conservation Easement" upon all portions of the Lots in all residential zone districts that lie outside of the platted Building Envelopes, for purposes of preserving an enhancing the wildlife habitat in the Conservation Easement area and the open space character of the Conservation Easement area. No disturbance shall be allowed in the Conservation Easement area, including without limitation excavation, grading or clearing activities, Improvements, and landscaping; provided, however, that the following activities are expressly allowed within the areas subject to the Conservation Easement: (a) vegetation manipulation where required by the Wildfire Mitigation Plan or as undertaken by the Wildlife and Wildfire Trust; (b) disturbance required in connection with the construction and maintenance of and access to underground utilities, irrigation and drainage systems, and access driveways and driveway features approved by the Design Review Committee, including retaining walls, guard rails, driveway lighting, landscaping, and gate/entry features; (c) disturbance required in connection with the construction and maintenance of and access to retaining walls, debris flow and rockfall barriers or other engineered structures necessary for the development and protection of structures and common elements; (d) removal of deadfall and selective thinning of vegetation, including but not limited to opening view corridors from the residence with the prior written approval of the Design Review Committee 63 • (e) construction, operation and maintenance of and access to individual sewage treatment systems. The Association shall have the obligation and authority to enforce these restrictions, and shall be responsible for managing, administering and maintaining the Conservation Easement areas in accordance with the purposes described above and in compliance with this Wildlife Mitigation Plan. 9.12 Open Space and Wildlife Movement Corridor Easements. There are hereby created, granted and reserved for the use and benefit of the Master Association perpetual, non- exclusive Open Space and Wildlife Movement Corridor Easements over, across and upon those portions of the Common Interest Community that are designated as "Open Space" or "Wildlife Movement Corridor" on the Plat or on any Supplemental Plat, for purposes of preserving and enhancing wildlife habitat and the open space character of the Open Space areas and of preserving and enhancing wildlife movement along the Wildlife Corridor areas. In addition to activities necessary or appropriate for the furtherance of such purposes, permitted uses in the Open Space areas will be such trail uses as may be depicted on the Plat or any Supplemental Plat, and permitted uses in the Wildlife Corridor areas will be such trail uses as may be depicted on the Plat or any Supplemental Plat. The Master Association shall have the obligation and authority to enforce these restrictions, and shall be responsible for managing, administering and maintaining the Open Space and Wildlife Movement Corridor areas in accordance with the purposes described above and in compliance with the provisions of the Wildlife Mitigation Plan. The Declarant, in its sole discretion, and without requiring the consent of any Owner or Mortgagee or Special District or the Master Association, may subject the Open Space areas to conservation easements or allow the Open Space areas to be held for resource or wetland mitigation land banking. 9.13 Defensible Space, Fuels Reduction Easements and Fuelbreak Easements. The Defensible Space Easement, Fuels Reduction Easement and Fuelbreak Easement described in the Wildfire Mitigation Plan, Article X, below. 9.14 Meadow Parcel Easement. There is hereby created, granted and reserved for the use and benefit of the Master Association a perpetual, non-exclusive "Meadow Parcel Easement" over, across and upon the portion of the Common Interest Community that is designated as the "Meadow Parcel" on the Plat, for purposes of preserving and enhancing the open -space character of the Meadow Parcel. Permitted uses of the Meadow Parcel shall be in the discretion of the Master Association, and may include without limitation the grazing of cattle and/or horses, agricultural (hay or wheat) production, sleigh rides and hay rides, and underground utilities, and such trail uses as may be depicted on the Plat. The Master Association shall have the obligation and authority to enforce these restrictions, and shall be responsible for managing, administering and maintaining the Meadow Parcel in accordance with the purposes generally described above and in compliance with the provisions of the Wildlife Plan. 9.15 Park Easements. There are hereby created, granted and reserved for the use and benefit of the Declarant, the Master Association and all Owners and Occupants, but not members of the public, perpetual, non-exclusive "Park Easements" over, across and upon all portions of the Common Interest Community that are designated as "Parks" on the Plat or on any 64 • • • Supplemental Plat, for such park and recreational purposes as may be determined to be appropriate from time to time by the Master Association. Permitted uses of the Parks may include, without limitation, picnicking, picnic areas and shelters, gazebos, recreational activities and facilities such as softball, soccer, volleyball and horseshoes, and such trail uses as may be depicted on the Plat or any Supplemental Plat. The Master Association shall have the obligation and authority to enforce these restrictions, and shall be responsible for managing, administering and maintaining the Parks in accordance with the purposes generally described above. 9.16 Shared Driveway Easements. There are hereby created, granted and reserved for the use and benefit of the Lots and Lot Owners served thereby, the Declarant, the Master Association, and any Special Districts, perpetual, non-exclusive easements and rights-of-way over, across, along and under the Shared Driveway Easements depicted on the Plat or on any Supplemental Plat, for purposes of access, ingress and egress (both vehicular and pedestrian, but not parking) to and from the Lots served thereby and for the installation, operation, maintenance, repair and replacement of underground utilities that serve said Lots. The Declarant shall be responsible for constructing a driveway within each Shared Driveway Easement. The Master Association (or a Special District pursuant to a contract with the Master Association) shall be responsible for snowblowing the driveways within the Shared Driveway Easements, and for maintaining and repairing the driveways as closely as possible to the condition that existed upon completion of construction thereof, ordinary wear and tear excepted. The costs and expenses incurred by the Master Association in the performance of such services (or the charges made by a Special District to the Master Association for performing such services) shall be Common Expenses which shall be assessed in equal shares among all Lots (and Lot Owners) served by Shared Driveway Easements, regardless of the length of particular driveways, the number of Lots served thereby, the improved or unimproved state of the Lots served thereby, or how much of a given driveway is actually used by a Lot Owner. The annual Assessments for such Lot Owners shall also include a reasonable reserve for the estimated cost of periodically resurfacing the driveways within the Shared Driveway Easements. If an Owner or Occupant (or an employee, contractor or agent thereof) damages a driveway within a Shared Driveway Easement, whether during the construction of improvements on the Owner's Lot or otherwise, said Owner shall be responsible for promptly repairing and restoring the damaged driveway as closely as possible to the condition that existed immediately prior to the occurrence of the damage. If an Owner fails to repair and restore a damaged driveway within 30 days following receipt of written notice from the Design Review Committee requesting the same, the Master Association shall have the authority and obligation to accomplish such repair and restoration and to levy a Reimbursement Assessment on the Owner and the Owner's Lot for all costs and expenses incurred by the Master Association (or a Special District pursuant to contract) in connection therewith, together with attorney's fees and other costs of collection. If an Owner of a Lot served by a Shared Driveway Easement wishes to make additional driveway improvements within the Shared Driveway Easement; he shall have the right to do so at his sole cost (or to share such cost with any other Lot Owners that agree to do so), provided that such improvements do not obstruct or interfere in any way with the driveway or with the free flow of vehicular and pedestrian traffic over and upon the driveway, and provided that any 65 • • • such improvements are consistent with the Design Guidelines and receive the prior written approval of the Design Review Committee. Each Owner of a Lot served by a Shared Driveway Easement shall be responsible for obtaining and maintaining in effect at all times a policy of comprehensive public liability insurance against claims for bodily injury, death or property damage occurring in or upon or in connection with the use of the Shared Driveway Easement and the improvements thereon, in the minimum amount of $1,000,000.00. In the event of a dispute between the Owners of Lots served by a Shared Driveway Easement relating to the use, maintenance or improvement of the Shared Driveway Easement, which dispute cannot be resolved by good faith negotiations, any such Owner may submit the dispute to the Design Review Committee for resolution, which resolution shall be binding on the affected Owners. The Design Review Committee shall have exclusive jurisdiction with respect to such disputes. 9.17 Easements for Benefit of Club Property. The Declaration of Easements and Rights establishes certain non-exclusive easements over, across and upon portions of the Common Interest Community for the use and benefit of the Club Property. Said easements shall be used for the purposes and in the manner provided in the Declaration of Easements and Rights. 9.18 Blanket Emer2encv Services Easement. There is hereby created, granted and reserved for the use and benefit of all police, sheriff, fire protection, ambulance and other similar emergency agencies or persons, now or hereafter serving the Common Interest Community and its Owners and Occupants, a perpetual, non-exclusive blanket Emergency Services Easement over, upon, along and across all streets, roads, Shared Driveways, properties and areas within the Common Interest Community, for use in the lawful performance of their duties. 9.19 Easements Deemed Created. All conveyances of Lots and Cabin Interests and Association Property hereafter made, whether by Declarant or otherwise, shall be deemed and construed to grant and reserve all of the easements referred to in this Article 9 and elsewhere in this Master Declaration and in any Supplemental Declaration, even though no specific reference to such easements appears in the conveyancing instruments. 9.20 Restrictions on Owners in Easement Areas. Owners of Lots and Cabin Interests that are subject to any easements created by this Master Declaration, a Supplemental Declaration, or a recorded Plat, shall acquire no right, title or interest in any cables, conduits, mains, lines, or other equipment or facilities or improvements that may be installed upon, over or under the easement area by a beneficiary of said easement rights. Moreover, Owners and Occupants of Lots and Cabin Interests that are subject to any such easements are hereby prohibited from constructing any improvements upon the easement areas, altering or obstructing the flow of any water or drainage thereon, or landscaping the same, in any manner that might interfere with the full and proper exercise of said easement rights by any beneficiary thereof. Finally, said Owners and Occupants are hereby prohibited from violating any of the restrictions relating to the use of the easement areas as may be set forth in this Master Declaration, any Supplemental Declaration, or in the Wildlife Mitigation Plan. Any Owner or Occupant violating any of these restrictions shall be obligated to remove the offending improvement or landscaping 66 • • • and to restore the surface of the area to its original condition at the Owner's cost and expense, or otherwise to remedy the violation, within 30 days following a written request therefor from any easement beneficiary. If said Owner or Occupant fails to comply with the request in a timely manner, the Master Association shall have the right to enter upon the Owner's Lot to perform the necessary work and may assess the costs thereof against the Owner and the Owner's Lot in the form of a Reimbursement Assessment. 9.21 Recorded Easements and Licenses. In addition to the easements described in this Article 9 and elsewhere in this Master Declaration, the recorded easements and licenses appurtenant to or included in the Common Interest Community are set forth on Exhibit D attached hereto and made a part hereof by this reference ARTICLE X WILDFIRE MITIGATION PLAN 10.1 Wildfire MitiLation Plan. The potential for wildfire in Spring Valley Ranch poses a risk to life, property, wildlife and habitat. The Association shall work closely with the Landis Creek Metro District ("District") and the Authority Having Jurisdiction to take necessary and reasonable steps to mitigate such risk. In this regard, wildfire risk assessment and recommended wildfire mitigation activities have been developed in the Wildfire Mitigation Report prepared by Anchor Point Group, dated February 2007, which is part of the records of the Zoning approval for Spring Valley Ranch in Garfield County, Colorado. The Association shall contract with the District, the Authority Having Jurisdiction and a wildfire expert to review and update the Wildfire Mitigation Report as appropriate on a regular periodic basis, but at least once one year following the recordation of this Declaration, and once every three years thereafter. The Wildfire Mitigation Plan may be revised upon the joint consent of the Board of Directors of the Association, the District and the Authority Having Jurisdiction. The easements established herein shall be blanket, variable easements over Spring Valley Ranch that shall be subject to modification in accordance with the Wildfire Mitigation Report as the same may be revised from time to time. 10.2 Access, Inspection and Enforcement. All Lots shall be subject to inspection by the Association, the Authority Having Jurisdiction and the District to assure compliance with the Wildfire Mitigation Plan. The Association will notify the Owner and/or Occupant of any Lot on which corrective actions must be taken. If the Owner or Occupant does not initiate compliance with the Wildfire Mitigation Plan within 10 days, the Association may contract for the corrective work to be performed by a third party. Any such third party shall have access to the Lot to perform such work, and the Owner and Occupant shall hold such third party harmless from any liability associated with such access and corrective work. All such work shall be at the expense of the Owner of the Lot on which such work is performed, and the Association shall have a lien on such Lot for such expenses. 10.3 Defensible Space and Defensible Space Easement. The Owners and Occupants of all habitable structures in the Spring Valley Ranch shall develop and maintain defensible space, in accordance with the guidelines in the Wildfire Mitigation Report, as said guidelines are applied to actual field conditions from site to site within the Spring Valley Ranch and as the Wildfire Mitigation Report may be revised as provided herein. Plans for the development of 67 • defensible space shall be submitted to and approved by the Design Review Committee at the time of initial approval of construction. No Owner or Occupant shall place or dispose of any combustible materials or yard waste within a defensible space. There is hereby created, granted and reserved for the use and benefit of the Owners and Occupants of Lots adjoining Open Space, a non-exclusive Defensible Space Easement within the Open Space areas shown on Exhibit E attached hereto and incorporated herein by this reference, to allow Owners and Occupants to extend and maintain defensible space beyond their property line if an extended distance is required and approved by the Design Review Committee. 10.4 Fuels Reduction Easement. There is hereby created, granted and reserved for the use and benefit of the Association and the District perpetual, non-exclusive Fuels Reduction Easements within those areas generally depicted on Exhibit F attached hereto and incorporated herein by this reference, having such variable width and for purposes of such vegetation manipulation as may be consistent with the guidelines described in the Wildfire Mitigation Report, as said guidelines are applied to actual field conditions from site to site within the Spring Valley Ranch and as the Wildfire Mitigation Report may be revised as provided herein. The implementation of the guidelines, based upon field conditions, and on-going annual inspection and maintenance of the vegetation manipulation, shall be the responsibility of the Association, the District, or a successor entity with such jurisdiction. 10.5 Fuelbreak Easement. There is hereby created, granted and reserved for the use and benefit of the Association and the District perpetual, non-exclusive Fuelbreak Easements within those areas generally depicted on Exhibit G attached hereto and incorporated herein by this reference, having such variable width and for purposes of such vegetation manipulation as may be consistent with the guidelines described in the Wildfire Mitigation Report, as said guidelines are applied to actual field conditions from site to site within the Spring Valley Ranch and as the Wildfire Mitigation Plan may be revised as provided herein. The implementation of the guidelines, based upon field conditions, and on-going annual inspection and maintenance of the vegetation manipulation, shall be the responsibility of the Association, the District, or a successor entity with such jurisdiction. 10.6 Linked Defensible Space and Overlot Thinning. Prior to the construction of any habitable structure on Lots identified in the Wildfire Mitigation Report, as revised, as requiring over -lot thinning and linked defensible space, the Owner or Occupant shall implement and maintain over -lot thinning and linked defensible space on such Lots as said guidelines are applied to actual field conditions from site to site within the Spring Valley Ranch and as the Wildfire Mitigation Report may be revised as provided herein. The Design Review Committee shall verify that such treatments have been completed before allowing construction and that such treatments are maintained on such Lots. 10.7 Universal Construction Standards. (a) All construction within Spring Valley Ranch shall utilize a Class "A" roof covering. Class "A" roof assemblies is prohibited. (b) Cedar siding and other use for cedar materials on the exterior of any structure is prohibited. 68 • • • 10.8 Specific Construction Standards. Prior to the construction of any habitable structure on Lots identified in the Wildfire Mitigation Plan, as revised, as having fuel model 6, the Owner or Occupant shall implement and maintain over -lot thinning on these Lots sufficient to convert the fuel model from 6 to fuel model 2. The Design Review Committee shall verify that such treatments have been completed before allowing construction and that such treatments are maintained on such Lots. If no over -lot thinning is undertaken on such Lots, structures built on such Lots shall comply with Section 504 Class 1 ignition resistant construction as described in the 2006 International Urban Wildland Interface Code, as the same may be amended. ARTICLE XI WILDLIFE MITIGATION PLAN 11.1 Wildlife Mitigation Plan. Recognizing that one of the primary attributes of the Spring Valley Ranch is the wildlife that occupies the area, the development of the property has been designed to minimize disturbances to wildlife habitat and to avoid disturbances to wildlife to the extent reasonable and practicable. The Wildlife and Wildfire Trust established in these Covenants also will serve to enhance wildlife habitat and undertake wildfire protection on the property. In addition, Owners and Occupants of Spring Valley Ranch should recognize their activities and use of their property will have impacts on wildlife. Therefore, all Owners and Occupants shall comply at all times with the following terms and provisions of this Wildlife Mitigation Plan. 11.2 Garbage, Trash; Compost, Containers. No refuse, garbage, trash, grass, shrub, or tree clippings, plant waste, compost, metal, bulk materials, scrap, rubbish, or debris of any kind shall be kept, stored, maintained or allowed to accumulate or remain on any Lot or on Association Property except temporarily within an enclosed bear -proof structure approved by the Design Review Committee, except that any approved container containing such materials may be placed next to the street not earlier than 6:00 a.m. on the designated morning of garbage collection and must be returned to its enclosed structure that same day. Notwithstanding the foregoing, trash or garbage shall not be kept outdoors unless it is within a locked, roofed, "bear proof' enclosure or in a "bear proof' garbage container approved by the Colorado Division of Wildlife. Compost piles must also be contained within "bear proof' enclosures. No garbage containers, trash cans or receptacles shall be maintained in an unsanitary or unsightly condition, and except when placed for pickup, they shall not be visible from another Lot or Association Property. All such refuse, garbage, trash, plant waste, compost, metal, scrap materials, rubbish and debris shall be promptly removed from Spring Valley Ranch and shall not be burned thereon. Compost structures and containers shall not be placed on a Lot, other than on District property, subject to the reasonable approval of the Design Review Committee. 11.3 Animals and Wildlife. Except as specifically permitted below, no animals, reptiles, primates, fish, fowl or insects of any kind shall be kept, raised, bred, maintained or boarded within or upon any part of Spring Valley Ranch. (a) Each Lot shall be entitled to a maximum of one (1) dog, one (1) cat and a reasonable number of other household pets, so long as such dog, cat or other household pets are not kept for any commercial purpose, are not kept in unreasonable numbers, do not cause an unreasonable amount of noise or odor, or do not otherwise become a 69 • nuisance to other Owners or Occupants. Contractors, subcontractors, and authorized users of the Club Property may not bring dogs, cats or other pets into Spring Valley Ranch. In the event that the Garfield County Subdivision Regulations are ever amended so as to prohibit dogs on some or all of the Lots in Spring Valley Ranch, then the more restrictive of said Subdivision Regulations shall govern the issue of how many dogs are allowed on each Lot. (b) In order for a dog to be permitted on a Lot, the dog must either be kept indoors at all times or in a fenced kennel or dog run (not exceeding 500 square feet in size) constructed within the Building Envelope on the Lot pursuant to the prior written approval of the Design Review Committee. Dogs may never be kept outdoors during the night unless such fenced enclosure is safe from predators. A permitted dog, cat or other household pet must be fenced or restrained at all times upon the Owner's or Occupant's Lot, and shall not be permitted outside such Lot, except when on a leash not exceeding 12 feet in length or undergoing obedience training under the direct control of the pet's owner or the owner's representative. The Association shall have the right to designate specific areas within Spring Valley Ranch where pets may be walked on leashes. All household pets shall be properly immunized and otherwise maintained and cared for as required by applicable laws. All dogs and cats must be spayed or neutered, unless such dog or cat is being competitively shown. (c) The Owner(s) of a Lot where a household pet is kept, as well as the legal owner of the pet (if not such Owner) shall be jointly and severally liable for any and all damage and destruction caused by the pet, and for any clean-up of the Owner's Lot, other Lots or property and streets and sidewalks necessitated by such pet. (d) Pet food shall not be kept outdoors overnight. Bird feeders, including specifically hummingbird feeders, shall not be kept outdoors overnight except during bear hibernation season. (e) With the exception of bird feeders as provided herein, the feeding, baiting, salting, or other means of attracting wildlife to Lots or development facilities is prohibited. (f) The Association shall be responsible for enforcing the restrictions set regarding pets and shall have the right and authority: i) to determine in its sole discretion that dogs, cats and other household pets are being kept for commercial purposes, or are being kept in unreasonable numbers, or are causing an unreasonable amount of noise or odor, or are otherwise a nuisance to other Owners or Occupants, or that an Owner or Occupant is otherwise in violation of this Section; and ii) to take such action or actions as it deems reasonably necessary to remedy the violation, including without limitation the levying of fines and/or reimbursement assessments. Also without limiting the generality of the foregoing, the Association may require the owner or custodian of a dog that barks or howls excessively, or of a dog, cat, or other household pet that harasses wildlife, has other offensive habits or otherwise violates the restrictions regarding pets, to confine such animal indoors, or to permanently remove such animal from Spring Valley Ranch. 70 • • • (g) Horses may be kept on Lots where allowed by applicable zoning, subject in each instance to such rules, regulations and conditions as may be adopted from time to time by the Association. All hay storage must at a minimum be enclosed by an 8 foot mesh fence at the expense of the Lot Owner which fencing must first be approved as to location and materials by the Design Review Committee. 11.4 Raptor Nest Protection. Prior to initiation of construction of infrastructure or facilities by the Declarant, Owner or Occupant, any district, utility provider, the Club or the Association, a qualified biologist will be retained by the development or the Association to conduct a raptor nesting survey. If an active raptor nest exists on Spring Valley Ranch, heavy outdoor construction (e.g. earth -moving and exterior house construction) shall be prohibited within a radius of either 300 feet (if the nest is located in a conifer) or 400 feet (if the nest is located in an aspen or cottonwood) until the young have fledged or the nest naturally fails. A typical fledgling date for the area is July 1. 11.5 Wildlife Damage. The Declarant, for itself and its successors and assigns, including but not limited to all Owners and Occupants and the Association, hereby waives and releases all claims against the State of Colorado, Division of Wildlife with regard to wildlife damage in Spring Valley Ranch. 11.6 Wetlands and Riparian Areas. (a) Plowing and storing of snow shall not occur on wetland or riparian areas, except on bridges. (b) No development shall occur within 75 feet of the high water mark of the riparian portions of Landis Creek. (c) Any bridge construction that may impact streams will be restricted to the period July 15 to October 15. 11.7 Golf Course and Open Space Management. (a) All persons within the PUD are prohibited from chasing, scaring, frightening, disturbing or otherwise harassing wildlife as a part of efforts to force wildlife off golf courses and open space areas during the winter feeding and spring/summer production seasons. (b) The owner/operator of the golf course has the right to locally restrict wildlife from golf course tees, greens, landscaping clumps and other sensitive areas by using temporary fencing and other passive means. Any fencing erected will not restrict free movement of wildlife but will be used only in small, isolated areas to help direct wildlife and/or people. (c) The Best Management Practices Plan for the golf course will be implemented to apply the proper procedures for the application of fertilizers, herbicides, insecticides and any other chemicals. 71 • • • (d) Disturbed ground caused by road construction will be reclaimed using native vegetation that is less palatable to deer and elk. 11.8 Trail Seasonal Use Restrictions. Recognizing that the use of trails during certain times of the year can have adverse effects on wildlife, the Association shall develop and may revise in consultation with a wildlife biologist a seasonal trail usage plan. The plan shall restrict pedestrian, biking, equestrian and vehicle trail usage as appropriate so as to minimize disturbance to wildlife during critical periods such as the deer fawning and elk calving season from May 1 to June 30, and deer and elk winter range period from December 1 through March 31. The plan shall apply to all areas of Spring Valley Ranch except the ResidentiallCabin and Open Space/Golf zone districts. The plan shall not apply to emergency vehicles and continued access pursuant to existing easements for in -holdings and out -parcels not a part of Spring Valley Ranch. 11.9 Tree and Natural Shrub Preservation. All Improvements within Spring Valley Ranch shall be located, designed, and constructed so as to preserve and protect landmark trees to extent reasonable and feasible under the circumstances. This restriction shall not apply to the removal or trimming of dead or diseased vegetation, or to reasonable and necessary clearing by an Owner in connection with the construction of improvements on a site previously approved by the Design Review Committee. The Design Review Committee may approve the thinning of trees within view corridors from the main house, but shall not grant such approval in locations where a forest cover is essential for screening from neighboring home sites or from key points along roads. Any violation of this Section shall subject the offending Owner to such penalties, fines and/or other conditions as the Design Review Committee considers appropriate, including without limitation the withdrawal or modification of previously granted development approvals, or the requirement that replacement trees or shrubs of equivalent or different size and type be planted and maintained by the Owner. The existing native vegetation shall be preserved in all areas lying outside the platted Building Envelopes, except for such minimum disturbance as may be required in connection with underground utilities, irrigation and drainage systems, and access driveways and approved driveway features. The restrictions set forth in this Section shall not apply to activities undertaken pursuant to the Wildfire Mitigation Plan or to activities of the Wildlife and Wildfire Trust that may be performed from time to time by such Trust, Owners or Occupants, the Association, the District, or their respective successors or assigns. Such activities shall not require the review or approval of the Design Review Committee. 11.10 Weed Control. The Owner or Occupant of each Lot within a residential zone district shall be responsible for maintaining healthy vegetation free of infestations of noxious weeds. The Association may inspect Lots periodically and will notify the Owner and/or Occupant of any Lot with a noxious weed infestation that corrective actions must be taken. If the Owner or Occupant does not correct the weed infestation within 10 days, the Association may contract for the corrective work to be performed by a third party. Any such third party shall have access to the Lot to perform such work, and the Owner and Occupant shall hold such third party harmless from any liability associated with such access and corrective work. All such work shall be at the expense of the Owner of the Lot on which such work is performed, and the Association shall have a lien on such Lot for such expenses. 72 • • 11.11 Residential Landscaped Areas. The use of native vegetation that is less palatable to deer and elk is encouraged within all residential landscaped areas. Lawns and associated irrigated landscaping will be confined to the Building Envelopes, and shall be subject to the following limitations: (a) Residential/Mountain zone district — no more than 4,000 square feet per Lot. (b) Residential/Estate zone district — no more than 2,500 square feet per Lot. (c) Residential/Ranch zone district — no more than 2,500 square feet per Lot. (d) Residential/Cabin zone district — no more than 2,000 square feet per Lot. (e) Residential/Pasture zone district — no more than 4,000 square feet per Lot. 11.12 Security Enforcement. If the Association employs a private security company within the Spring Valley Ranch, the Association may grant the security company the necessary authority to enforce the provisions and restrictions of these Covenants, including this Article 11, Wildlife Mitigation Plan. ARTICLE XII REAL ESTATE TRANSFER ASSESSMENTS TO THE WILDLIFE AND WILDFIRE TRUST 12.1 Establishment. Transfer Assessments shall be levied on transfers of Lots or Cabin Interests (or interests therein) in the manner provided in this Article, and shall provide funding to a nonprofit organization established for such purposes and known as the Spring Valley Wildlife and Wildfire Trust. Owner hereby covenants and agrees that, except as provided in Section 12.4 below, a transfer assessment ("Transfer Assessment") based on a percentage of the Consideration paid on the transfer of any portion of or interest in a Lot or Cabin Interest shall be due and payable by the transferee of such interest at the time of transfer and shall apply to each transfer of any portion of or interest in the Lot or Cabin Interest. The Transfer Assessment shall be a minimum of two-tenths of one percent (0.2%) of the Consideration for such transfer. Owner hereby waives, on behalf of itself and its successors in title, any right to challenge the Transfer Assessment on any basis. Transfer Assessments shall not be paid with respect to the transfer of any Lot or Cabin Interest from the Declarant or its successor as an initial sale, or to a transfer by a Featured Builder. Transfer Assessments and any increase or decrease in the amount of Transfer Assessments above two-tenths of one percent (0.2%) shall be made, established and assessed as provided herein. The Association shall pay over to the Spring Valley Wildlife and Wildfire Trust all Transfer Assessments immediately upon receipt. The Spring Valley Wildlife and Wildfire Trust shall periodically review the Transfer Assessment program and make recommendations to the Association regarding the amount thereof. 12.2 Purpose and Use of Transfer Assessments. The funds received by the Spring Valley Wildlife and Wildfire Trust from the Transfer Fee shall be used (1) to acquire, through itself or through qualified entities, open space within or adjacent to the Spring Valley Ranch • PUD, by deed, conservation easement, purchase of development rights or otherwise in order to 73 • • • preserve the open, rural feeling of the Spring Valley Ranch PUD; (2) to undertake projects, including in cooperation with state and federal agencies and other non-profit entities, for the preservation, enhancement and mitigation of wildlife and wildlife habitat and the control of weeds on common open space property located within the Spring Valley Ranch PUD and on adjoining public and private lands; (3) to assist in the implementation of the Wildfire Mitigation Plan, in accordance with the Wildfire Mitigation Report as the same may be revised from time to time; (4) to develop wildlife education and enjoyment materials and facilities within the Spring Valley Ranch PUD or for use by the owners, residents, guests and employees thereof; and (5) to operate and maintain the Spring Valley Wildlife and Wildfire Trust, including pursuing actions to collect and administer the Transfer Fee. Apportionment of the funds among these purposes shall be determined by the Spring Valley Wildlife and Wildfire Trust in the exercise of its discretion. 12.3 Definitions. For purposes of this Article XXII, the following words shall have the meanings ascribed thereto. (a) "Transfer" means and includes, whether in one transaction or in a series of related transactions, any conveyance of ownership or title to any portion of or interest in a Lot or fractional interest as evidenced by any deed or instrument or writing wherein or whereby title to such Lot or fractional interest is granted or conveyed subject to the exclusions provided herein, including but not limited to (i) the conveyance of fee simple title to any Lot or fractional interest or interest therein (including any conveyance arising out of an installment land contract or a lease containing an option to purchase), (ii) the transfer of more than 50 percent of the outstanding shares of the voting stock of a corporation (other than Declarant) which, directly or indirectly, owns one or more Lots or fractional interests or interests therein, and (iii) the transfer of more than interest in net profits or net losses of any partnership, limited liability company, joint venture or other entity (each referred to hereinafter as a "Business Association") which, directly or indirectly, owns one or more Lots or fractional interests or interests therein. (b) "Transferee" means and includes all parties to whom any interest in a Lot or fractional interest passes by a transfer, and each party included in the term "transferee shall have joint and several liability for all obligations of the transferee under this Article. (c) The "fair market value" of the Lot or fractional interest or interest therein subjected to transfer shall be the consideration, as such term is defined below, given for the transfer. (d) "Consideration" means and includes the total of money paid and the fair market value of any property delivered, or contracted to be paid or delivered, in return for the transfer of any Lot or fractional interest or interest therein, and includes any money or property paid or delivered to obtain a contract right to purchase any Lot or fractional interest or interest therein, and the amount of any note, contract indebtedness (including without limitation, obligations which could be characterized as contingent land gain), or rental payment received in connection with such transfer, whether or not secured by any lien, mortgage, or other encumbrance, given to secure the transfer price or any part thereof, or remaining unpaid on the property at the time of transfer, whether or not 74 • assumed by the transferee. The term "consideration" does not include the amount of any outstanding lien or encumbrance for taxes, special benefits or improvements in favor of the United States, the State of Colorado, or a municipal or quasi -municipal governmental corporation or district. 12.4 Exclusions. The Transfer Assessment shall not apply to any of the following, except to the extent that they are used for the purpose of avoiding the Transfer Assessment: (a) Any transfer to the United States, or any agency or instrumentality thereof, the State of Colorado, any county, city and county, municipality, district or other political subdivision of the State of Colorado; (b) Any transfer in consequence of a gift of such property, where no consideration other than love and affection, charitable donation or a nominal compensation is evidenced by the terms of the instrument of transfer; (c) Any transfer to Declarant, to any successor or assign of Declarant, to any affiliate of Declarant, or to the Master Association; (d) Any transfer, whether outright or in trust that is for the benefit of the transferor or his or her relatives, but only if there is no more than nominal consideration for the transfer. For the purposes of this exclusion, the relatives of a transferor shall include without limitation all lineal descendants of any grandparent of the transferor, and the spouses of the descendants. Any person's stepchildren and adopted children shall be recognized as descendants of that person for all purposes of this exclusion. For the purposes of this exclusion, a distribution from a trust shall be treated as a transfer made by the grantors of the trust, in the proportions of their respective total contributions to the trust; (e) Any transfer arising solely from the termination of a joint tenancy or the partition of property held under common ownership, except to the extent that additional consideration is paid in connection therewith; (f) Any transfer or change of interest by reason of death, whether provided for in a will, trust or decree of distribution; (g) Any transfer made (aa) by a majority-owned subsidiary to its parent corporation or by a parent corporation to its majority-owned subsidiary, or between majority-owned subsidiaries of a common parent corporation, in each case for no consideration other than issuance, cancellation or surrender of the subsidiary's stock; or (bb) by a partner, member or a joint venturer (each a "Business Association Member") to a Business Association in which the Business Association Member has not less than a 50 percent interest, or by a Business Association to a Business Association Member holding not less than a 50 percent interest in such Business Association, in each case for no consideration other than the issuance, cancellation or surrender of the interests in the Business Association, as appropriate; or (cc) by a corporation to its shareholders, in connection with the liquidation of such corporation or, distribution of property or dividend in kind to shareholders, if the Lot or fractional interest is transferred generally 75 • pro rata to its shareholders, and no consideration is paid other than the cancellation of such corporation's stock; or (dd) by a Business Association to its Business Association Members, in connection with a liquidation of the Business Association or other distribution of property to the Business Association Members, if the Lot or fractional interest is transferred generally pro rata to its Business Association Members, and no consideration is paid other than the cancellation of the Business Association Members' interests; or (ee) to a corporation or Business Association where such entity is owned in its entirety by the persons transferring the Lot or fractional interest and such persons have the same relative interests in the transferee entity as they had in the Lot or fractional interest immediately prior to such transfer, and no consideration is paid other than the issuance of each such persons' respective stock or other ownership interests in the transferee entity; or (ff) by any person(s) or entity(ies) to any other person(s) or entity(ies), whether in a single transaction or a series of transactions where the transferor(s) and the transferee(s) are and remain under common ownership and control as determined by the Executive Board in its sole discretion applied on a consistent basis; provided, however, that no such transfer or series of transactions shall be exempt unless the Executive Board finds that such transfer or series of transactions (x) is for no consideration other than the issuance, cancellation or surrender of stock or other ownership interest in the transferor or transferee; as appropriate, (y) is not inconsistent with the intent and meaning of this Subsection, and (z) is for a valid business purpose and is not for the purpose of avoiding the obligation to pay the Transfer Assessment. In connection with considering any request for an exception, the Executive Board may require the applicant to submit true and correct copies of all relevant documents relating to the transfer setting forth all relevant facts regarding the transfer, stating that in their opinion the transfer is exempt under said subsection, and setting forth the basis for such opinion; (h) Any transfer made solely for the purpose of confirming, correcting, modifying or supplementing a transfer previously recorded, making minor boundary adjustments, removing clouds on titles, or granting easements, rights-of-way or licenses, and any exchange of Lots or fractional interests between Declarant and any original purchaser from Declarant of the one or more Lots or fractional interests being transferred to Declarant in such exchange. To the extent that consideration in addition to previously purchased Lots or fractional interests is paid to Declarant in such an exchange, the additional consideration shall be a transfer subject to Assessment. To the extent that Declarant, in acquiring by exchange Lots or fractional interests previously purchased from Declarant, pays consideration in addition to transferring Lots or fractional interests, the amount of such additional consideration shall be treated as reducing the original assessable transfer original purchaser from Declarant, who exchanges with Declarant Lots or fractional interests previously purchased from Declarant, to a refund steer Association of the amount of the Transfer Assessment originally paid on that portion of the original transfer; (i) Any transfer pursuant to any decree or order of a court of record determining or vesting title, including a final order awarding title pursuant to a condemnation proceeding, but only where such decree or order would otherwise have the effect of causing the occurrence of a second assessable transfer in a series of transactions 76 • which includes only one effective transfer of the right to use or enjoyment of a Lot or fractional interest; (j) Any lease of any Lot or fractional interest (or assignment or transfer of any interest in any such lease) for a period of less than thirty (30) years; (k) Any transfer to secure a debt or other obligation or to release property which is security for a debt or other obligation, including transfers in connection with foreclosure of a deed of trust or mortgage or transfers in connection with a deed given in lieu of foreclosure; (1) The subsequent transfer(s) of a Lot or fractional interest involved in a "tax free" or "tax deferred" exchange under the Internal Revenue Code wherein the interim owner acquires property for the sole purpose of reselling that property within thirty (30) days after the trade. In these cases, the first transfer of title is subject to Transfer Assessment, and subsequent transfers will only be exempt as long as a Transfer Assessment has been paid in connection with the first transfer of such Lot or fractional interest in such exchange; (m) The transfer of a Lot or fractional interest to an organization which is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code, as amended (or any comparable statute), provided that the Executive Board specifically approves such exemption in each particular case; (n) Any transfer made by a corporation or other entity, for consideration, (1) to any other corporation or entity which owns 100 percent of its equity securities (a "Holding Company"), or (2) to a corporation or entity whose stock or other equity securities are owned, directly or indirectly, 100 percent by such Holding Company; (o) Any transfer from a partially -owned direct or indirect subsidiary corporation to its direct or indirect parent corporation where no consideration is paid for, or in connection with, such transfer; however, unless such transfer is otherwise exempt, such exemption shall apply only to the extent of the direct or indirect beneficial interest of the transferee in the transferor immediately prior to the transfer. For example, if corporation A owns 60 percent of corporation B, and corporation B owns 100 percent of corporation C and corporation C conveys a Lot or fractional interest to corporation A for $2,000,000, 60 percent of the price would be exempt and a Transfer Assessment would be payable only on $800,000 (i.e., 40 percent of the $2,000,000 consideration); (p) The consecutive transfer of a Lot or fractional interest or interest therein wherein the interim owner acquires such Lot or fractional interest or interest for the sole purpose of immediately reconveying such Lot or fractional interest or interest, but only to the extent there is no consideration to such interim owner receives no right to use or enjoyment of such Interest, provided the Executive Board specifically approves such exemption each particular case. To the extent that consideration is paid to, or for the benefit of, the interim owner, the additional consideration shall be a transfer subject to Assessment. In these cases, the first transfer of title is subject to the Transfer Assessment 77 • • • and subsequent transfers will only be exempt as long as a Transfer Assessment has been paid in connection with the first transfer of such Lot or fractional interest or interest in such consecutive transaction and only to the re is no consideration to the interim owner. 12.5 Payment and Reports. The Transfer Assessment shall be due and payable by the transferee to the Association on the same day as the transfer giving rise to such Transfer Assessment. Upon receipt of the Transfer Assessment, the Association shall pay all funds received to the Spring Valley Wildlife and Wildfire Trust. With such payment, the transferee shall make a written report to the Association and the Spring Valley Wildlife and Wildfire Trust on forms prescribed by the Association and the Spring Valley Wildlife and Wildfire Trust, fully describing the transfer and setting forth the true, complete and actual consideration for the transfer, the names of the parties thereto, the legal description of the Lot or fractional interest or interest transferred, and such other information as the Association and the Spring Valley Wildlife and Wildfire Trust may reasonably require. If the full amount of the Transfer Assessment, properly calculated, is not paid to the Association at the time of transfer of the Lot or fractional interest (or interest therein) as provided herein, the delinquent Transfer Assessment shall bear interest at the rate of twenty percent (20%) per annum from the date of transfer until paid in full, shall constitute the personal, joint and several obligation and liability of the transferee(s), and the Association shall have an Assessment Lien on the transferee's Lot or fractional interest for such delinquent amount (together with accrued interest, and costs and attorneys' fees incurred in collecting the same). The Association and the Spring Valley Wildlife and Wildfire Trust shall obtain periodic reports of or check all transfers of record in the Office of the Clerk and Recorder of Garfield County, Colorado for the purpose of verifying the Transfer Assessments due. ARTICLE XIII MASTER ASSOCIATION 13.1 Master Association. The Master Association has been formed as a Colorado nonprofit corporation under the Colorado Revised Nonprofit Corporation Act to manage the affairs of the Common Interest Community. The Master Association shall serve as the governing body for all of the Owners and Occupants for the protection, improvement, alteration, maintenance, repair, replacement, administration and operation of Association Property, the levying and collection of Assessments for Common Expenses and other expenses of the Master Association, and such other matters as may be provided in this Master Declaration, any Supplemental Declaration, the Articles, Bylaws, and Master Rules and Regulations. The Master Association shall not be deemed to be conducting a business of any kind, and all funds received by the Master Association shall be held and applied by it on behalf of the Owners in accordance with the provisions of this Master Declaration, any Supplemental Declaration, the Articles and the Bylaws. 13.2 Master Association Executive Board. The affairs of the Master Association shall be managed by an Executive Board. The number, term, and qualifications of the members of the Executive Board shall be fixed in the Articles of Incorporation or the Bylaws. A quorum shall be deemed present throughout any meeting of the Executive Board if persons entitled to cast at least fifty percent (50%) of the votes on the Executive Board are present at the beginning of the meeting or grant their proxy as provided in C.R.S. Section 7-128-205(4). With the exception of matters that may be discussed in executive session, as set forth in 78 • • • Section 38-33.3-308(3-7) of the Act, all regular and special meetings of the Executive Board or any committee thereof shall be open to attendance by all Members of the Master Association or their representatives. Without limiting the generality of the foregoing, no Master Rule or Regulation may be validly adopted during an executive session. Agendas for meetings of the Executive Board shall be made reasonably available for examination by all Members of the Master Association or their representatives. The Executive Board shall have all of the powers, authority and duties granted or delegated to it by the Act, this Master Declaration, any Supplemental Declaration, the Articles or Bylaws. Except as provided in the Act, this Master Declaration, any Supplemental Declaration, the Articles or Bylaws, the Executive Board may act in all instances on behalf of the Master Association. The Executive Board may not, however, act on behalf of the Master Association to amend this Master Declaration, to terminate the Common Interest Community, or to elect members of the Executive Board or determine the qualifications, powers and duties, or terms of office of Executive Board members, but the Executive Board may fill vacancies in its membership for the unexpired portion of any term. The Executive Board may, by resolution, delegate portions of its authority to officers of the Master Association, but such delegation of authority shall not relieve the Executive Board of the ultimate responsibility for management of the affairs of the Master Association. If appointed by Declarant, in the performance of their duties, the members of the Executive Board and the officers of the Master Association are required to exercise the care required of fiduciaries of the Lot and Cabin Interest Owners. If not appointed by Declarant, no member of the Executive Board and no officer shall be liable for actions taken or omissions made in the performance of such member's or officer's duties except for wanton and willful acts or omissions. 13.3 Membership in Master Association. There shall be one Membership in the Master Association for each Lot and each Cabin Interest within the Common Interest Community. The Person or Persons who constitute the Owner of a Lot or Cabin Interest shall automatically be the holder of the Membership appurtenant to that Lot or Cabin Interest, and shall collectively be the "Member" of the Master Association with respect to that Lot or Cabin Interest, and the Membership appurtenant to that Lot or Cabin Interest shall automatically pass with fee simple title to the Lot or Cabin Interest. Declarant shall hold a Membership in the Master Association for each Lot or Cabin Interest owned by Declarant. Membership in the Master Association shall not be assignable separate and apart from fee simple title to a Lot or Cabin Interest, and may not otherwise be separated from ownership of a Lot or Cabin Interest. 13.4 Voting Rights of Members. Each Lot in the Common Interest Community shall be entitled to four (4) votes in the Master Association. If a Lot is divided into Cabin Interests pursuant to a Supplement Declaration, the votes allocated to that Lot shall be reallocated equally amongst the Cabin Interests created for the Lot, e.g., an undivided one-fourth Cabin Interest shall have one vote in the Master Association. Occupants of Lots shall not have voting rights. If title to a Lot or Cabin Interest is owned by more than one (1) Person, such persons shall collectively cast their allocated vote(s). If only one of the multiple owners of a Lot or Cabin Interest is present at a Master Association meeting, such owner is entitled to cast the vote(s) allocated to 79 • • • that Lot or Cabin Interest. If more than one of the multiple owners is present, the vote(s) allocated to that Lot or Cabin Interest may be cast only in accordance with the agreement of a majority in interest of the owners. There is a majority agreement if any of the multiple owners casts the vote(s) allocated to that Lot or Cabin Interest without protest being made promptly to the person presiding over the meeting by any of the other owners of the Lot or Cabin Interest. In the event of a protest made by one or more multiple owners, and a majority of the multiple owners of the Lot or Cabin Interest cannot agree on how to cast their votes, any votes cast for that Lot or Cabin Interest shall nevertheless be counted in determining the presence of a quorum with respect to the issue being voted upon. In accordance with Section 38-33.3-309 of the Act, and except as may otherwise be provided in the Bylaws, a quorum is deemed present throughout any meeting of the Members of the Master Association if persons entitled to cast at least twenty percent (20%) of the total allocated votes in the Master Association are present, in person or by proxy, at the beginning of the meeting. Provided a quorum of allocated votes entitled to vote is present in person or by proxy, the affirmative vote of a majority of the total allocated votes so present shall constitute approval of any matter voted upon unless a different number is required on a particular matter by the Act, this Master Declaration, any Supplemental Declaration, the Articles, or the Bylaws. The vote(s) allocated to a Lot or Cabin Interest may be cast pursuant to a proxy duly executed by a Lot or Cabin Interest Owner. If a Lot or Cabin Interest is owned by more than one person, each owner of the Lot or Cabin Interest may vote or register protest to the casting of a vote by the other owners of the Lot or Cabin Interest through a duly executed proxy. A Lot or Wilderness Cabin Interest Owner may not revoke a proxy given pursuant to this Section except by actual notice of revocation to the person presiding over a meeting of the Master Association. A proxy is void if it is not dated or purports to be revocable without notice. A proxy shall terminate eleven (11) months after its date, unless a different termination date is otherwise set forth on its face. No vote(s) allocated to a Lot or Cabin Interest owned by the Master Association may be cast. The Lot and Cabin Interest Owners, by a vote of sixty-seven percent (67%) of all allocated votes present and entitled to vote at any meeting of the Lot and Cabin Interest Owners at which a quorum is present, may remove any member of the Executive Board with or without cause, other than a member appointed by Declarant. 13.5 Period of Declarant Control of Master Association. Notwithstanding any other provisions hereof, Declarant shall have and hereby reserves the power to appoint and remove, in its sole discretion, the members of the Executive Board and the officers of the Master Association during the period commencing upon the Recording of this Master Declaration and terminating no later than the earlier of (a) sixty (60) days after conveyance of seventy-five percent (75%) of the Lots that may be created to Owners other than Declarant; or (b) two (2) years after the last conveyance of a Lot by the Declarant in the ordinary course of business; or (c) two (2) years after any right to add new Lots was last exercised by Declarant. For purposes of 80 • • • determining said "Period of Declarant Control" under this Master Declaration and the Articles of Incorporation and Bylaws of the Master Association, a Lot which is divided into Cabin Interests shall be deemed conveyed by Declarant only upon the conveyance by Declarant of one hundred percent (100%) of the Cabin Interests in such Lot. During said Period of Declarant Control of the Master Association: (a) Not later than sixty (60) days after conveyance of twenty-five percent (25%) of the Lots that may be created to Owners other than Declarant, at least one (1) member and not less than twenty-five percent (25%) of the members of the Executive Board must be elected by Lot and Cabin Interest Owners other than Declarant. (b) Not later than sixty (60) days after conveyance of fifty percent (50%) of the Lots that may be created to Owners other than Declarant, not less than thirty-three and one-third percent (33-1/3%) of the members of the Executive Board must be elected by Lot and Cabin- Interest Owners other than Declarant. At any time prior to the termination of the Period of Declarant Control of the Master Association, the Declarant may voluntarily surrender and relinquish the right to appoint and remove officers and members of the Executive Board, but in such event Declarant may require, for the duration of the Period of Declarant Control of the Master Association, that specified actions of the Master Association or the Executive Board, as described in a Recorded instrument executed by Declarant, be approved by Declarant before they become effective. As to such actions, Declarant may give its approval or disapproval in its sole discretion and option, and its disapproval shall invalidate any such action by the Executive Board or the Master Association. Not later than the termination of the Period of Declarant Control of the Master Association, the Owners (including Declarant) shall elect an Executive Board of at least three (3) members, at least a majority of whom must be Owners other than Declarant or designated representatives of Owners other than Declarant, and the Executive Board shall elect the officers, with such Executive Board members and officers to take office upon election. Pursuant to Section 38-33.3-303(9) of the Act, within sixty (60) days after Owners other than Declarant elect a majority of the members of the Executive Board, Declarant shall deliver to the Master Association all property of the Owners and of the Master Association held or controlled by Declarant, including without limitation the following items: (a) The original or a certified copy of the recorded Master Declaration as amended, the Master Association's Articles of Incorporation, Bylaws, minute books, other books and records, and any rules and regulations which may have been promulgated; (b) An accounting for Master Association funds and financial statements from the date the Master Association received funds and ending on the date the Period of Declarant Control ends. The financial statements shall be audited by an independent certified public accountant and shall be accompanied by the accountant's letter, expressing either the opinion that the fmancial statements present fairly the financial position of the Master Association in conformity with generally accepted accounting principles or a disclaimer of the accountant's ability to attest to the fairness of the 81 • • • presentation of the financial information in conformity with generally accepted accounting principles and the reasons therefor. The expense of the audit shall not be paid for or charged to the Master Association. (c) The Master Association funds or control thereof; (d) All of the Declarant's tangible personal property that has been represented by the Declarant to be the property of the Master Association or all of the Declarant's tangible personal property that is necessary for, and has been used exclusively in, the operation and enjoyment of Association Property, and inventories of these properties; (e) A copy, for the nonexclusive use by the Master Association, of any plans and specifications used in the construction of the improvements in the Common Interest Community; (f) All insurance policies then in force, in which the Owners, the Master Association, or its directors and officers are named as insured persons; (g) Copies of any certificates of occupancy that may have been issued with respect to any improvements comprising the Common Interest Community; (h) Any other permits issued by governmental bodies applicable to the Common Interest Community and which are currently in force or which were issued within one year prior to the date on which Lot and Cabin Interest Owners other than the Declarant took control of the Master Association; (i) Written warranties of the contractor, subcontractors, suppliers, and manufacturers that are still effective; (j) A roster of Owners and Occupants and Mortgagees and their addresses and telephone numbers, if known, as shown on the Declarant's records; (k) Employment contracts in which the Master Association is a contracting party; and (1) Any service contract in which the Master Association is a contracting party or in which the Master Association or the Owners have any obligation to pay a fee to the persons performing the services. 13.6 Termination of Contracts and Leases of Declarant. The following contracts and leases, if entered into before the Executive Board elected by the Owners pursuant to Section 38-33.3-303(7) takes office, may be terminated without penalty by the Master Association at any time after the Executive Board elected by the Owners pursuant to said Section 38-33.3-303(7) takes office, upon not, less than ninety (90) days notice to the other party: (i) Any management contract, employment contract or lease of recreational or parking areas or facilities; (ii) Any other contract or lease between the Master Association and Declarant or an affiliate of Declarant; or (iii) Any contract or lease that is not bona fide or was unconscionable to the Owners at the time entered into under the circumstances then prevailing. 82 • • • 13.7 Master Association/Subassociations. Every Supplemental Declaration in which a Subassociation is organized and/or established shall contain sufficient language pursuant to Section 38-33.3(220) of the Act delegating responsibilities and control and subordinating it to the Master Association and to this Master Declaration to effectuate the purposes of this Master Declaration. Each Supplemental Declaration shall provide that the Executive Board shall be elected after the termination of the Period of Declarant Control of the Master Association by all Owners of all Common Interest Communities subject to the Master Declaration. If both a Subassociation and the Master Association have liens for Assessments created at any time on the same Lots or Cabin Interests, the lien of the Master Association shall take priority over the lien of any Subassociation. ARTICLE XIV POWERS AND DUTIES OF MASTER ASSOCIATION 14.1 General Powers and Duties of Master Association. The Master Association shall have and may exercise all of the powers and rights and duties of a Colorado corporation formed under the Colorado Revised Nonprofit Corporation Act, and all of the powers and duties provided for in the Act including those enumerated in Section 38-33.3-302 of the Act, as such laws may be amended from time to time, subject only to the limitations upon such powers as are contained in this Master Declaration. More specifically, and without limiting the generality of the foregoing, the Master Association shall have all of the powers and duties necessary (i) for the administration, management, governance and operation of the Common Interest Community and the Master Association, (ii) to own, operate, improve, maintain, repair, manage, lease, encumber, and otherwise deal with Association Property, (iii) to improve, maintain and repair the Limited Common Areas, and (iv) to do any and all lawful things that may be authorized, required or permitted to be done by the Master Association under the Act and/or under the provisions of this Master Declaration and of any Supplemental Declarations. 14.2 Power to Grant Easements. The Master Association shall have the power to grant access, utility, drainage, irrigation, and such other easements upon, over, across or under Association Property as it deems necessary or desirable for the benefit of the Common Interest Community or parts thereof, or for the benefit of all or less than all of the Owners, or for the benefit of lands situated outside the Common Interest Community. 14.3 Power to Convey or Encumber Association Property. The Master Association shall have the power to convey, or subject to a security interest, portions of the Association Property if Owners entitled to cast at least sixty-seven percent (67%) of the allocated votes in the Master Association, including sixty-seven percent (67%) of the votes allocated to Lots or Cabin Interests not owned by Declarant, agree to that action, except that all Owner(s) of Lots to which any Limited Common Area is allocated must agree in order to convey that Limited Common Area or to subject it to a security interest. Proceeds of the sale are an asset of the Master Association. An agreement to convey, or subject to a security interest, Association Property must be evidenced by the execution of an agreement, in the same manner as a deed, by the Master Association. The agreement must specify a date after which the agreement will be void unless approved by the required percentage of allocated votes. Any grant, conveyance or deed executed 83 • 1 • by the Master Association must be Recorded in the County, and is effective only upon Recordation. The Master Association, on behalf of the Owners, may contract to convey an interest in an Association Property, but the contract is not enforceable against the Master Association until approved, executed and ratified pursuant to this Section. Thereafter, the Master Association shall have all the powers necessary and appropriate to effect the conveyance or encumbrance, including the power to execute deeds or other instruments. Unless in compliance with this Section any purported conveyance, encumbrance, judicial sale, or other transfer of Association Property is void. A conveyance or encumbrance of Association Property pursuant to this Section shall not deprive any Lot of its rights of (i) access, ingress and egress to the Lot, and (ii) support of the Lot. A conveyance or encumbrance of Association Property pursuant to this Section shall not affect the priority or validity of preexisting encumbrances. 14.4 General Power to Provide Services and Facilities to Owners. The Master Association shall have the power, but not the obligation, to acquire, construct, operate, manage, maintain, repair and administer services and facilities for the benefit of the Owners, or some of them, including, without limitation, security, animal control, vegetation control, insect and pest control, television service, parking facilities, transportation facilities, snow removal, signage, (including entry monuments), lighting, (including seasonal lighting), fencing, landscape walls, landscaping services and facilities, drainage facilities, including retention and detention ponds, irrigation facilities; water features, trash and solid waste disposal services, including recycling programs, utility services, recreational facilities and services, maintenance, and such other services, functions and facilities as are deemed appropriate by the Executive Board. The foregoing list shall not be deemed to be a representation by Declarant of services or facilities that will in fact be available for use by the Owners. The Master Association may enter into such agreements and arrangements as it may deem appropriate with any provider of utilities or services to the Common Interest Community or any portion thereof, including any Special Districts that provide such services, and may form or join any districts created to provide such services. The Master Association shall also have the right, but no obligation to enter into a "bulk rate contract" for cable television and/or security monitoring services, in which case the Master Association shall pay the contractual charges as a Common Expense. 14.5 Power to Provide Services to Subassociations. The Master Association shall have the power, but not the obligation, to provide services to Subassociations. Such services to any Subassociation shall be provided pursuant to an agreement in writing between the Master Association and such Sub -association which shall provide for the payment by such Subassociation to the Master Association of the costs and expenses of the Master Association of providing such services to the Subassociation including a fair share of the overhead expenses of the Master Association. Services which may be provided to a Subassociation may include, without limitation, (a) the construction, care, operation, management, maintenance, repair, and replacement of Improvements owned by the Subassociation; (b) the providing of services to the area covered by the Subassociation; (c) the enforcement of the provisions of any Supplemental Declaration for, on behalf of, and in the name of the Subassociation; (d) the collection of assessments for, in the name of, and on behalf of a Subassociation; (e) the payment of taxes for a Subassociation with funds of the Subassociation; (f) the obtaining of insurance for a Subassociation; (g) the collection of charges for use of facilities of a Subassociation; and (h) the appointment and supervision of a manager or managers for a Subassociation. 84 • • • 14.6 Power to Provide Special Services to Owners. The Master Association shall have the power to provide services to an Owner or group of Owners. Any service or services to an Owner or group of Owners shall be provided pursuant to an agreement in writing, or through one or more Supplemental Declarations, which shall provide for payment to the Master Association by such Owner or group of Owners of the costs and expenses of the Master Association in providing such services, including a fair share of the overhead expenses of the Master Association, and shall contain reasonable provisions assuring that the obligation to pay for such services shall be binding upon any heirs, personal representatives, successors and assigns of the Owner or group of Owners and that the payment for such services shall be secured by a lien on the Lot(s) or Cabin Interest(s) of the Owner or a group of Owners. 14.7 Power to CharSe for Special Association Property Uses and Special Master Association Services. The Master Association shall have the power to establish reasonable admission or other fees or charges for any special or extraordinary Association Property uses or Master Association services such as special parking privileges, special recreation facilities, conference rooms, instruction, or similar uses beyond the ordinary use of Association Property and ordinary Master Association services. Such charges or fees shall be set forth in schedules of charges and fees adopted from time to time by the Executive Board. 14.8 Power to Acquire Property and Construct Improvements. The Master Association may acquire, hold, encumber and/or convey any right, title or interest in or to real or personal property, including Improvements. The Master Association may construct Improvements on Association Property and may demolish existing Improvements thereon. 14.9 Power to Adopt Master Rules and Regulations. The Master Association may adopt, amend, repeal, and enforce such Master Rules and Regulations as the Executive Board may consider necessary, desirable or appropriate from time to time with respect to the interpretation and implementation of this Master Declaration, the operation of the Master Association, the use and enjoyment of Association Property (including Limited Common Areas), and the use of any other property within the Common Interest Community, including Lots and Cabin Interests. Any such Master Rules and Regulations shall be effective only upon adoption by resolution at an open meeting of the Executive Board. Notice of the adoption, amendment, or repeal of any Master Rule or Regulation shall be given in writing to each Owner, and copies of the currently effective Master Rules and Regulations shall be made available to each Owner and Occupant upon request and payment of the reasonable expense of copying the same. Each Owner and Occupant (and all other Persons who are authorized users of Association Property) shall comply with such Master Rules and Regulations, and each Owner shall see that Occupants claiming through such Owner comply with such Master Rules and Regulations. Such Master Rules and Regulations shall have the same force and effect as if they were set forth in and were part of this Master Declaration. In the event of conflict between the Master Rules and Regulations and the provisions of this Master Declaration, the provisions of this Master Declaration shall govern. Such Master Rules and Regulations may establish reasonable and uniformly applied penalties (including the levying and collection of fines) for the violation of such Master Rules and Regulations or of any provision of this Master Declaration, the Articles, or the Bylaws. 85 • • • 14.10 Power to Contract with Employees, Agents, Contractors, Districts, Consultants and Managers. The Master Association shall have the power to contract with, and/or to employ and discharge employees, agents, independent contractors and consultants, including lawyers and accountants, and Special Districts, to perform any of the responsibilities of the Master Association under this Master Declaration, including without limitation maintenance responsibilities. The Master Association shall also have the power to retain and pay for the services of a manager or managers, which may be an affiliate of Declarant, to undertake any of the administrative or managerial responsibilities for which the Master Association may have responsibility under this Master Declaration, to the extent deemed advisable by the Master Association, and may delegate any of its duties, powers, or functions to any such manager. Notwithstanding any delegation to a manager of any duties, powers, or functions of the Master Association, the Master Association and its Executive Board shall remain ultimately responsible for the performance and exercise of such duties, powers, and functions. 14.11 Power to Assign Future Income. The Master Association shall have the power to assign its right to future income, including the right to receive Regular Assessments, but only following the affirmative vote of at least fifty-one (51) percent of the total allocated votes in the Master Association, at a duly -called meeting of the Members of the Master Association. 14.12 Duty to Accent Property and Facilities Transferred by Declarant. The Master Association shall accept title to any real property, or interests in real property, including any Improvements and personal property thereon, transferred to the Master Association by Declarant, or Declarant's successors or assigns. Property interests transferred to the Master Association by Declarant or its successors or assigns may include fee simple title, undivided interests, easements, leasehold interests and licenses to use. Except as may otherwise be approved by the Executive Board, any property or interest in property transferred to the Master Association by Declarant or its successors or assigns shall be within the boundaries of the Common Interest Community; provided, however, that Declarant shall be entitled to transfer and convey the beneficial use of an easement, subject to any obligations thereunder, located outside of the Common Interest Community but which benefits the Master Association and the Owners. Any property or interest in property transferred to the Master Association by Declarant shall, except to the extent otherwise specifically approved by resolution of the Executive Board, be transferred to the Master Association free and clear of all monetary obligations, liens and encumbrances (other than the lien of property taxes and assessments not then due and payable), but shall be subject to the terms of this Master Declaration, and easements, covenants, conditions, restrictions, and equitable servitudes or other encumbrances of record or otherwise in existence. Except as otherwise specifically approved by resolution of the Executive Board, no property or interest in property transferred to the Master Association by Declarant shall impose upon the Master Association any obligation to make monetary payments to Declarant or any affiliate of Declarant, including, but not limited to, any purchase price, rent, charge, or fee. Any Improvements or personal property transferred to the Master Association by Declarant shall be in good working order, ordinary wear and tear excepted, and at the time of transfer Declarant shall make any repairs reasonably required to bring the transferred property into good working order. Subject only to the foregoing, the Master Association shall accept all properties transferred to it by Declarant in their "Where Is, As Is" condition, without recourse of 86 • • • any kind, and Declarant disclaims and shall not be deemed to make or to have made any representations or warranties, express or implied, by fact or law, with' respect to the transferred properties or any aspect or element thereof, including without limitation warranties of merchantability, habitability, fitness for a particular purpose, or workmanlike construction. 14.13 Duty to Maintain and Care for Association Property. The Master Association shall manage, operate, care for, maintain, repair and replace all Association Property and keep the same in a functional, clean and attractive condition for the benefit and enjoyment of the Owners. Except as otherwise specifically provided in this Master Declaration or in any Supplemental Declaration, the Master Association shall also manage, operate, care for, maintain and repair the Limited Common Areas. 14.14 Duty to Pay Taxes. The Master Association shall pay any taxes and assessments levied upon Association Property (excepting Limited Common Areas) and any other taxes and assessments payable by the Master Association before they become delinquent. The Master Association shall have the right to contest any such taxes or assessments by appropriate legal proceedings provided no sale or foreclosure of any lien for such tax or assessment occurs and provided further that the Master Association shall keep and hold sufficient funds to pay and discharge the taxes and assessments, together with any interest and penalties which may accrue with respect thereto, if the contest of such taxes is unsuccessful. 14.15 Duty to Keep Master Association Records. The Master Association shall keep financial records in sufficient detail to enable the Master Association to carry out its responsibilities under this Master Declaration and to comply with the requirements of the Act, including, but not limited to, current records of paid and unpaid Assessments for each Lot and Cabin Interest. All financial and other records of the Master Association shall be made reasonably available for examination by the Owners and the authorized agents of the Owners. 14.16 Duty to Support Design Review Committee. The Master Association shall take such actions, provide such funds, and do such other things as may be necessary or appropriate from time to time to support and assist the Design Review Committee in the performance of its responsibilities under this Master Declaration, and shall cooperate with said Committee to the fullest extent possible in such matters. 14.17 Insurance. Commencing not later than the time of the first conveyance of a Lot or Cabin Interest to a Person other than Declarant, the Master Association shall maintain and keep in effect at all times the following types of insurance, and the cost of said coverage shall be paid by the Master Association as a Common Expense: (a) Casualty Insurance. To the extent reasonably available, property insurance on all Association Property, including but not limited to Improvements and personalty, owned or leased by the Master Association, and on all property that must become Association Property. Such insurance shall be for broad form covered causes of loss, including casualty, fire, and extended coverage insurance including, if available at reasonable cost, coverage for vandalism and malicious mischief and, if available and if deemed appropriate, coverage for flood, earthquake, and war risk. Such insurance shall, to the extent reasonably obtainable, be for the full insurable replacement cost of the 87 • insured property, less applicable deductibles at the time the insurance is purchased and at each renewal date, exclusive of land, excavation, foundations and other items normally excluded from property policies. (b) Liability Insurance. Comprehensive general liability insurance against claims and liabilities arising in connection with the ownership, existence, use, maintenance or management of the Association Property (including the Limited Common Areas), and covering public liability or claims of liability for injury to persons and/or property, and death of any person or persons, and, if the Master Association owns or operates motor vehicles, public liability or claims of liability for bodily injury (including death) and property damage arising as a result of the ownership and operation of motor vehicles. Such liability insurance for other than motor vehicle liability shall, to the extent reasonably obtainable, (a) have limits of not less than Five Million Dollars ($5,000,000.00) per person and Five Million Dollars ($5,000,000.00) per occurrence; (b) insure the Executive Board, the Design Review Committee, the Master Association and its officers, the manager, if any, and their respective employees, agents and all Persons acting as agents; (c) include the Declarant as an additional insured as its interests may appear; (d) include the Owners as additional insureds, but only for claims and liabilities arising in connection with the ownership, existence, use, maintenance or management of Association Property; (e) cover claims of one or more insured parties against other insured parties; (f) be written on an occurrence basis; and (g) shall name as additional insureds such other parties as may be required by specific agreements. (c) Contractual Liability Insurance. To the extent reasonably available, contractual liability insurance covering such contractual obligations and liabilities, indemnifications, hold harmless agreements, and agreements to defend, as the Master Association may have or be a party to from time to time, with coverage of at least Two Million Dollars ($2,000,000.00) or such greater amount as the Executive Board shall determine to be appropriate from time to time. (d) Fidelity Bonds. To the extent reasonably available, fidelity bond coverage against dishonest acts on the part of directors, officers, managers, trustees, agents, employees or volunteers responsible for handling funds belonging to or administered by the Master Association. If funds of the Master Association are handled by a management agent, then fidelity bond coverage may also be obtained for the officers, employees, or agents thereof handling or responsible for Master Association funds. The fidelity bond or insurance must name the Master Association as the named insured and shall be written to provide protection in an amount no less than the lesser of (a) one-half times the Master Association's estimated annual operating expenses and reserves, (b) a sum equal to three (3) months aggregate Regular Assessments, plus reserves, as calculated from the current Budget of the Master Association; or (c) the estimated maximum amount of funds, including reserves, in the custody of the Master Association (and its management agent) at any one time. In connection with such coverage, an appropriate endorsement to the policy to cover any person who serves without compensation shall be added if the policy would not otherwise cover volunteers. 88 • • • (e) Worker's Compensation. A Worker's Compensation policy, if necessary, to meet the requirements of law. (f) Directors and Officers Liability Insurance. Directors and officers liability insurance with coverage of at least Two Million Dollars ($2,000,000.00) or such greater amount as the Executive Board shall approve for all Master Association, Executive Board and Design Review Committee directors, officers, members and managers, for any and all errors and/or omissions and other covered actions that occur during their tenure in office or employment. This insurance coverage shall be mandatory. (g) Other Insurance. Such other insurance in such amounts as the Executive Board shall determine, from time to time, to be appropriate to protect the Master Association or the Owners, or as may be required by the Act. (h) General Provisions Respecting Insurance. Insurance obtained by the Master Association may contain such deductible provisions as good business practice may dictate. If the insurance described is not reasonably available, or if any policy of such insurance is canceled or not renewed without a replacement policy therefor having been obtained by it, the Master Association shall promptly cause notice of that fact to be delivered or sent prepaid by U.S. Mail to all Owners. Insurance policies carried pursuant to Sections (a) and (b) above shall provide that (i) each Owner is an insured Person under the policy with respect to liability arising out of such Owner's interest in the Association Property or membership in the Master Association; (ii) the insurer waives its rights of subrogation under the policy against the Master Association, each Owner, and any Person claiming by, through, or under such Owner or any other director, agent, or employee of the foregoing; (c) no act or omission by any Owner, unless acting within the scope of such Owner's authority on behalf of the Master Association, will void the policy or be a condition to recovery under the policy, and (d) if at the time of a loss under the policy, there is other insurance in the name of an Owner covering the same risk covered by the policy, the Master Association's policy shall be the primary insurance. An insurer that has issued an insurance policy for the insurance described in Sections (a) and (b) above shall issue certificates or memoranda of insurance to the Master Association and, upon request, to any Owner or holder of a security interest. Unless otherwise provided by statute, the insurer issuing the policy may not cancel or refuse to renew it until thirty (30) days after notice of the proposed cancellation or nonrenewal has been mailed to the Master Association, and each Owner and holder of a security interest to whom a certificate or memorandum of insurance has been issued, at their respective last -known addresses. Any loss covered by the property insurance policy described in Section (a) above must be adjusted with the Master Association, but the insurance proceeds for that loss shall be payable to any insurance trustee designated for that purpose, or otherwise to the Master Association, and not to any holder of a security interest. The insurance trustee or the Master Association shall hold any insurance proceeds in trust for the Master Association, Owners and lienholders as their interests may appear. Subject to the provisions of Section 38.33.3-313(9) of the Act, the proceeds must be disbursed first for the repair or restoration of the damaged property, and the Master Association, Owners, and lienholders are not entitled to receive payment of any portion 89 • • • of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored or the Common Interest Community is terminated. The Master Association may adopt and establish written nondiscriminatory policies and procedures relating to the submittal of claims, responsibility for deductibles, and any other matters of claims adjustment. To the extent the Master Association settles claims for damages to real property, it shall have the authority to assess negligent Owners causing such loss or benefiting from such repair or restoration for all deductibles paid by the Master Association. In the event more than one Lot is damaged by a loss, the Master Association in its reasonable discretion may assess each Lot Owner a pro rata share of any deductible paid by the Master Association. Insurance obtained by the Master Association shall, to the extent reasonably possible, and provided Declarant reimburses the Association for any additional premium payable on account thereof, name Declarant as an additional insured and shall contain a waiver of rights of subrogation as against Declarant. Insurance policies and insurance coverage shall be reviewed at least annually by the Executive Board to ascertain whether coverage under the policies is sufficient in light of the current values of the Association Property and in light of the possible or potential liabilities of the Master Association and other insured parties. The aforementioned insurance may be provided under blanket policies covering the Association Property and property of Declarant. In no event shall insurance coverage obtained or maintained by the Master Association obviate the need for Owners and Occupants to obtain insurance for their own benefit. Furthermore, to the extent reasonably available, insurance policies obtained by the Master Association shall contain the following provisions: (i) The coverage afforded by such policies shall not be brought into contribution or proration with any insurance which may be purchased by an Owner, Occupant or Mortgagee. (ii) The conduct of any one or more Owners or Occupants shall not constitute grounds for avoiding liability on any such policies. (iii) Each policy must contain a waiver of any defenses based on coinsurance or on invalidity arising from the acts of the insured. (iv) A "severability of interest" endorsement shall be obtained which shall preclude the insurer from denying the claim of an Owner or Occupant because of the conduct or negligent acts of the Master Association and its agents or other Owners or Occupants. (v) Any "no other insurance" clause shall exclude insurance purchased by Owners, Occupants or Mortgagees. (vi) Coverage must not be prejudiced by (i) any act or neglect of Owners or Occupants when such act or neglect is not within the control of the Master Association, or (ii) any failure of the Master Association to comply with any warranty or condition 90 • • i regarding any portion of the Common Interest Community over which the Master Association has no control. (vii) Coverage may not be canceled or substantially modified without at least thirty (30) days (or such lesser period as the Master Association may reasonably deem appropriate) prior written notice to the Master Association. (viii) Any policy of property insurance which gives the carrier the right to elect to restore damage in lieu of a cash settlement must provide that such election is not exercisable without the prior written approval of the Master Association, or when in conflict with the insurance trust provisions contained herein, or any requirement of law. (ix) A recognition of any insurance trust agreement entered into by the Master Association. (x) Each hazard insurance policy shall be written by a hazard insurance carrier which has a financial rating as designated in Best's Key Rating Guide of Class VI or better, or if such rating service be discontinued, an equivalent rating by a successor thereto or a similar such rating service. Each insurance carrier must be specifically licensed or authorized by law to transact business within the State of Colorado. (i) Nonliability of Master Association or Executive Board. Notwithstanding the duty of the Master Association to obtain insurance coverage, as stated herein, neither the Master Association nor any Executive Board member, nor the Declarant, shall be liable to any Owner, Occupant, Mortgagee or other Person, if any risks or hazards are not covered by insurance, or if the appropriate insurance is not obtained because such insurance coverage is not reasonably obtainable on the Master Association's behalf, or if the amount of insurance is not adequate, and it shall be the responsibility of each Owner and Occupant to ascertain the coverage and protection afforded by the Master Association's insurance and to procure and pay for such additional insurance coverage and protection as the Owner or Occupant may desire. (j) Master Premiums. Premiums for insurance policies purchased by the Master Association and other expenses connected with acquiring such insurance shall be paid -by the Master Association as a Common Expense, except that (i) liability insurance on Limited Common Areas shall be separately bid and the cost thereof shall only be included in the Regular Assessments of the Lots entitled to use such Limited Common Areas, and (ii) the amount of increase over any annual or other premium occasioned by the use, misuse, occupancy or abandonment of a Lot or its appurtenances, or Association Property, by an Owner or Occupant, may at the Executive Board's election, be assessed against that particular Owner and his Lot or Cabin Interest as a Reimbursement Assessment. (k) Insurance Claims. The Master Association is hereby irrevocably appointed and authorized, subject to the provisions contained herein, to adjust all claims arising under insurance policies purchased by the Master Association and to execute and deliver releases upon the payment of claims, and to do all other acts reasonably necessary 91 • • 1 to accomplish any of the foregoing. The Executive Board has full and complete power to act for the Master Association in this regard, and may, in its discretion; appoint an authorized representative, or enter into an insurance trust agreement, wherein the trustee shall have the authority to negotiate losses under any policy purchased by the Master Association. (1) Benefit. Except as otherwise provided herein, all insurance policies purchased by the Master Association shall be for the benefit of, and any proceeds of insurance received by the Master Association or any insurance trustee shall be held or disposed of in trust for the Master Association, the Owners, or the Occupants, as their interests may appear. (m) Other Insurance to be Carried by Lot Owners. Insurance coverage on the furnishings and other items of personal property belonging to a Lot or Cabin Interest Owner or Occupant, public liability insurance coverage upon each Lot or Cabin Interest, and casualty insurance coverage on the Improvements constructed on Lots, shall be the responsibility of the Owner or Occupant of the Lot or Cabin Interest. No Lot or Cabin Interest Owner or Occupant shall maintain any insurance, whether on its Lot or Cabin Interest or otherwise, which would limit or reduce the insurance proceeds payable under the casualty insurance maintained by the Master Association in the event of damage to the Improvements or fixtures on Association Property. 14.18 Damage to Common Interest Community. Any portion of the Common Interest Community for which insurance is required under Section 38-33.3-313 of the Act (except any portion on which insurance is carried by a Subassociation) which is damaged or destroyed must be repaired or replaced promptly by the Master Association unless: (i) repair or replacement is the responsibility of a Subassociation under a Supplemental Declaration, (ii) the Common Interest Community is terminated; (iii) repair or replacement would be illegal under any state or local statute or ordinance governing health or safety; (iv) sixty-seven percent (67%) of the Lot Owners, including owners of every Lot that will not be rebuilt, vote not to rebuild; or (v) prior to the conveyance of any Lot or Cabin Interest to a person other than Declarant, a Mortgagee on the damaged portion of the Common Community rightfully demands all or a substantial part of the insurance proceeds. The cost of repair or replacement in excess of insurance proceeds and reserves is a Common Expense. If the entire Common Interest Community is not repaired or replaced, the insurance proceeds attributable to (he damaged Association Property must be used to restore the damaged area to a condition compatible with the remainder of the Common Interest Community, and, except to the extent that other Persons will be distributees, the insurance proceeds attributable to Lots that are not rebuilt must be distributed to the Owners of those Lots, or to lienholders, as their interests may appear, and the remainder of the proceeds must be distributed to all Owners or lienholders as their interests may appear in proportion to the Common Expense liabilities of all the Lots and Cabin Interests. In the event of damage to or destruction of all or a portion of the Association Property due to fire or other adversity or disaster, the insurance proceeds, if sufficient to reconstruct or repair the damage, shall be applied by the Master Association to such reconstruction and repair. 92 • • • If the insurance proceeds with respect to such Association Property damage or destruction are insufficient to repair and reconstruct the damage or destruction, the Master Association may levy a Special Assessment in the aggregate amount of such deficiency, or if any Owner or group of Owners is liable for such damage, may levy a Reimbursement Assessment against the Owner or group of Owners responsible therefor, and shall proceed to make such repairs or reconstruction. Such Assessment shall be due and payable as provided by resolution of the Executive Board, but not sooner than sixty (60) days after written notice thereof. The Assessment provided for herein shall be a debt of each Owner assessed and a lien on his Lot or Interest, and may be enforced and collected in the same manner as any Assessment Lien provided for in this Master Declaration. If the entire damaged Association Property is not repaired or replaced, the insurance proceeds attributable to the damaged Association Property must be used to restore the damaged area to a condition compatible with the remainder of the Common Interest Community. No distributions of insurance proceeds shall be made unless made jointly payable to the Owners and first Mortgagees of their respective Lots or Cabin Interests, if any. 11.19 Limited Liability. Neither the Master Association nor its past, present or future officers or directors, nor any other employee, agent or committee member of the Master Association shall be liable to any Owner or Occupant or to any other Person for actions taken or omissions made except for wanton and willful acts or omissions. Without limiting the generality of the foregoing, the Master Association, the Executive Board and the Design Review Committee shall not be liable to any Owner or Occupant or other Person for any action or for any failure to act with respect to any matter if the action taken or failure to act was in good faith and without malice. Acts taken upon the advice of legal counsel, certified public accountants, registered or licensed engineers, architects or surveyors shall conclusively be deemed to be in good faith and without malice. To the extent insurance carried by the Master Association for such purposes shall not be adequate, the Owners severally agree to indemnify and to defend the Master Association, the Executive Board and the Design Review Committee against claims, damages or other liabilities resulting from such good faith action or failure to act. ARTICLE XV ASSESSMENTS 15.1 Assessment Obligation and Lien. Declarant, for each Lot and Cabin Interest, shall be deemed to covenant and agree, and each Lot and Cabin Interest Owner, by acceptance of a deed therefor (including a public trustee's or sheriffs deed), whether or not it shall be so expressed in any such deed or other instrument of conveyance, shall be deemed to covenant and agree, to pay to the Master Association: (1) Regular Assessments or charges, (2) Special Assessments, (3) Reimbursement Assessments, and (4) Real Estate Transfer Assessments, such assessments to be established and collected as hereinafter provided (collectively the "Assessments"). No Owner shall have any right to set-off against an Assessment any claims that the Owner may have or may claim to have against the Master Association. The Assessments, together with interest, late charges, costs, and reasonable -attorneys' fees, shall be a continuing lien and security interest upon the Lot or Cabin Interest against which each such Assessment is charged. The obligation for such payments by each Lot or Cabin Interest Owner to the Master Association is an independent covenant, with all amounts due from time to time payable in full without notice (except as otherwise expressly provided in this Declaration) or demand, and without set-off or deduction of any kind or nature. Each Lot and Cabin Interest Owner is liable 93 • • • for Assessments made against such Owner's Lot or Cabin Interest during his period of ownership of the Lot or Cabin Interest. Each Assessment, together with interest, late charges, costs and reasonable attorneys' fees, shall also be the joint, several and personal obligation of each Person who was an Owner of such Lot or Cabin Interest at the time when the Assessment became due. Upon the transfer of title to a Lot or Cabin Interest, the transferor and the transferee shall be jointly, severally and personally liable for all unpaid Assessments and other charges due to the Master Association prior to the date of transfer, and the transferee shall be personally liable for all such Assessments and charges becoming due thereafter. 15.2 Statutory Lien. The Master Association has a statutory lien pursuant to Section 38-33.3-316 of the Act on the Lot or Cabin Interest of an Owner for all Assessments levied against such Lot or Cabin Interest or fines imposed against such Lot's or Cabin Interest's Owner from the time the Assessment or fine becomes due (the "Assessment Lien"). Fees, charges, late charges, attorneys' fees, fines and interest charged by the Master Association pursuant to the Act or this Master Declaration or any Supplemental Declaration are enforceable as Assessments. The amount of the lien shall include all such items from the time such items become due. If an Assessment is payable in installments, the Master Association has an Assessment Lien for each installment from the time it becomes due, including the due date set by the Executive Board's acceleration of installment obligations. An Assessment Lien is extinguished unless proceedings to enforce the lien are instituted within 6 years after the full amount of Assessments becomes due. 15.3 Lien Superior to Homestead and Other Exemptions. An Assessment Lien shall be superior to any homestead exemption now or hereafter provided by the laws of the State of Colorado or any exemption now or hereafter provided by the laws of the United States. The acceptance of a deed subject to this Master Declaration shall constitute a waiver of the homestead and any other exemption as against said Assessment Lien. 15.4 Priority of Lien. With the exception of Assessment Liens relating to Real Estate Transfer Assessments, an Assessment Lien is prior to all other liens and encumbrances on a Lot or Cabin Interest except as follows: (a) Liens and encumbrances Recorded before the recordation of this Master Declaration; (b) A security interest on the Lot or Cabin Interest which has priority over all other security interests on the Lot or Cabin Interest and which was Recorded before the date on which the Assessment sought to be enforced became delinquent. An Assessment Lien is prior to the security interest described in the preceding sentence to the extent of an amount equal to the Regular Assessments (based on a Budget adopted by the Master Association pursuant to Section 12.8 below) which would have become due, in the absence of any acceleration, during the six (6) months immediately preceding institution by the Master Association or any party holding a lien senior to any part of the Master Association lien created under this Article 12 of an action or a nonjudicial foreclosure either to enforce or to extinguish the lien; 94 • 1 (c) Liens for real estate taxes and other governmental assessments or charges against the Lot or Cabin Interest; and (d) As may otherwise be set forth in the Act. The priority of mechanics' and materialmen's liens is not affected by the Act. This Article 12 does not prohibit an action or suit to recover sums for which this Article 12 creates a lien or prohibit the Master Association from taking a deed in lieu of foreclosure. Sale or transfer of any Lot or Cabin Interest shall not affect the lien for an Assessment. 15.5 Perfection of Lien. The Recording of this Master Declaration and of each Supplemental Declaration constitutes record notice and perfection of the statutory lien. No further Recordation of any claim of lien for Assessments is required; however, a claim may be Recorded at the Master Association's option, in which event costs and attorneys' fees incurred in connection with the preparation and filing of such claim shall be assessed against the Lot or Cabin Interest as a Reimbursement Assessment. 15.6 Regular Assessments. (a) A Regular Assessment shall be made annually against each Lot and Cabin Interest, based upon an annual Budget prepared by the Executive Board, for purposes paying (i) the annual costs of operating and administering the Master Association and all other Common Expenses, (ii) reasonable reserves for contingencies, replacements, and other proper purposes, (iii) the costs of services rendered or expenditures incurred by the Master Association to or for less than all Lots or Cabin Interests, (iv) the costs of improving or maintaining Limited Common Areas, and reasonable reserves for such costs, which costs shall be assessed only to the Lots designated for the use of said Limited Common Areas, (unless such costs are for the general benefit of the Common Interest Community), and (v) such other matters as may be reasonably determined by the Executive Board to be the subject of a Regular Assessment; (b) Regular Assessments shall be allocated in accordance with the Allocated Interests of each Lot and Cabin Interest in the Common Interest Community. Any Common Expense or portion thereof benefiting fewer than all of the Lots or Cabin Interests shall be assessed exclusively against the Lots or Cabin Interests benefited. If Common Expense liabilities are reallocated, Common Expense Assessments and any installment thereof not yet due shall be reallocated in accordance with the reallocated Common Expense liabilities. (c) Regular Assessments shall be levied on a calendar year basis, except that the initial Regular Assessment period shall commence on the first day of the calendar month or quarter in which the first Lot or Cabin Interest is conveyed by Declarant to a Person other than Declarant. Regular Assessments shall be paid in installments on a monthly, quarterly or semi-annual basis, as the Executive Board may determine from time to time, and shall be due either on the first day of each calendar month or on the first day of each calendar year quarter (January 1, April 1, July 1 and October 1), or on the first day of a semi-annual period (e.g., January 1, July 1) as appropriate. Unless and until 95 • • • changed to a monthly or semiannual system by the Executive Board, Regular Assessments shall be due and payable on the first day of each calendar quarter. Any Lot or Cabin Interest Owner acquiring a Lot or Cabin Interest between installment due dates shall pay a pro rata share of the immediately preceding installment. (d) The Executive Board shall fix the amount of the Regular Assessment, using the Budget procedure described below, at least thirty (30) days before the end of each calendar year. Written notice of the Regular Assessment shall be sent to each Owner. Failure of the Executive Board timely to fix and levy the Regular Assessments for any year or to send a notice thereof to any Owner shall not relieve or release any Owner from liability for payment of Regular Assessments or any installments thereof for that or subsequent years as soon as the Executive Board levies the Regular Assessment and provides notice thereof. If a duly adopted Budget is amended during the calendar year, the Executive Board shall provide written notice to the Owners of any changes caused thereby in the remaining Regular Assessments due during that year. (e) The Executive Board shall also mail to each Owner at least ten (10) days prior to the due date thereof a written notice of the amount of the next quarterly (or monthly or semi annual, as the case may be) installment of Regular Assessment that is due from such Owner, and the date on which such installment is due pursuant to paragraph 12.6(d) above. Failure of the Executive Board to send timely notice to any Owner of an installment of Regular Assessment due shall not relieve or release any Owner from liability for payment of that installment as soon as the Executive Board in fact provides such notice. (1) In accordance with Section 38-33.3-314 of the Act, any surplus funds remaining after payment of or provision for Master Association expenses and any prepayment of or provision for reserves shall be carried forward as a credit against the next year's budget. 15.7 Master Association Budget. Commencing in the first year of operations of the Master Association, and during the last three (3) months of each year thereafter, the Executive Board shall prepare or cause to be prepared an operating budget (the "Budget") for the next calendar year. The Budget shall provide for the allocation of any surplus funds remaining from any previous Budget period. The annual Budget may provide for a Special Assessment in any calendar year, if considered necessary or appropriate by the Executive Board. Alternatively, the Executive Board may at any time adopt a Special Budget that provides for a Special Assessment. Within thirty (30) days after adoption of any proposed Budget for the Master Association, the Executive Board shall mail, by ordinary first-class mail, or otherwise deliver, a summary of the Budget to all Owners and shall set a date for a meeting of the Owners to consider ratification of the Budget not less than fourteen (14) nor more than sixty (60) days after the mailing or other delivery of the summary. Such meeting may, but need not be, concurrent with the annual meeting of the Members as provided in the Bylaws. Unless at that meeting sixty-seven percent (67%) of all allocated votes in the Master Association reject the Budget, the Budget shall be ratified, whether or not a quorum of Owners is present. In the event that the proposed Budget is rejected, the Budget last ratified by the Owners shall be continued until such time as the Owners ratify a subsequent Budget proposed by the Executive Board. 96 • • • If the Executive Board considers it necessary or appropriate, a duly adopted Budget may be amended during the calendar year by the Executive Board, provided the same notice and ratification procedure is followed for the Amended Budget as is required for the annual Budget. 15.8 Reserves Fund Account. The Executive Board shall establish a separate bank account (the "Reserves Fund Account") for Master Association funds designated by the Executive Board as reserves for the future periodic maintenance, repair or replacement of the major components of the Common Areas. Declarant makes no representation or warranty that the amount of in the Reserves Fund Account from time to time will fully or adequately fund, the reserves required for the future periodic maintenance, repair or replacement of the items for the reserves are maintained.. Neither Declarant nor any member, director, officer, employee or agent of Declarant nor any person serving as a director or officer of the Master Association shall be liable to the Master Association, any Member or any other Person as a result of such reserves not being funded in excess of the amount of reserves held in the Reserves Fund Account. 15.9 Special Assessments. In addition to the other Assessments authorized in this Article 12, the Executive Board 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, maintenance or replacement of capital improvements (including related fixtures and personal property and including without limitation irrigation systems), to or upon or serving the Common Interest Community, or for excess reconstruction costs or other extraordinary expenses, or to acquire Association Property, or for funding any operating deficit of the Master Association. Special Assessments shall be allocated in the same manner as Regular Assessments, that is, in accordance with the Allocated Interests of each Lot and Cabin Interest in the Common Interest Community, and shall be due and payable to the Master Association on the due date fixed by the Executive Board in the notice given to the Owners of such Special Assessment, which due date shall be no earlier than thirty (30) days after the giving of such notice. Any Special Assessment for an Improvement or other expenditure which will benefit fewer than all of the Lots or Cabin Interests shall only be levied against the Lots or Cabin Interests benefited; provided, that expenditures in connection with Association Property (excepting Limited Common Areas) shall be deemed for the general benefit of all Lots and Cabin Interests, wherever located. If fewer than all of the Interests will be subject to the Special Assessment, then such Special be allocated equally amongst those Lots and Cabin Interests. 15.10 Reimbursement Assessments. In addition to the other Assessments authorized in this Article 12, the Executive Board may levy against any Owner or Owners, at any time and from time to time, a Reimbursement Assessment for purposes of reimbursing the Master Association for all costs and expenses incurred by it in enforcing any provision of or in remedying any violation of this Master Declaration, or of any Supplemental Declaration, the Articles, Bylaws, Master Rules and Regulations or Design Guidelines, or any approvals granted by the Design Review Committee, by such Owner or Owners, their Occupant(s), or their agents, employees or contractors. Reimbursement Assessments may also be made by the Executive Board for any other purposes for which this Master Declaration provides for the levying of a Reimbursement Assessment. Finally, and in addition to the foregoing, a Reimbursement Assessment may also be levied in the form of a reasonable fine against an Owner for a violation of this Master Declaration, a Supplemental Declaration, the Articles, Bylaws, or the Master 97 • • • Rules and Regulations, but only after the Owner(s) to be so fined have been provided with Notice and Hearing. Reimbursement Assessments shall be due and payable to the Master Association on the due date fixed by the Executive Board in the notice given to the Owner(s) of such Reimbursement Assessment, which date shall be no earlier than thirty (30) days after the giving of such notice. 15.11 Effect of Nonpayment of Assessments; Remedies of the Master Association. Any Assessment or portion or installment thereof which is not paid when due (or for which a bad check is issued) shall be deemed delinquent and shall bear interest from and after the due date at the rate of interest set by the Executive Board from time to time, which shall not be less than twelve percent (12%) nor more than twenty-one percent (21%) per year, and the Executive Board may also assess a bad check charge in the amount of 10 percent (10%) of the bad check or $50.00, whichever is greater. The interest rate on delinquent Real Estate Transfer Assessments is established in Section 12.14(e) below. The Executive Board may also elect to accelerate the installment obligations of any Regular Assessment for which an installment is delinquent. The Executive Board may also suspend the delinquent Owner's use of Association Property and Master Association services or benefits. The delinquent Owner shall also be liable for all costs, including attorneys' fees, which may be incurred by the Master Association in collecting a delinquent Assessment, which collection costs shall be added to the delinquent Assessment. The Executive Board may but shall not be required to record a Notice of Delinquent Assessment or charge against any Lot or Cabin Interest as to which an Assessment or charge is delinquent. The Notice shall be executed by an officer of the Executive Board, and shall set forth the amount of the unpaid Assessment or charge, the name of the delinquent Owner and a description of the Lot or Cabin Interest. The Assessment Lien may be foreclosed by the Master Association in the same manner as a mortgage on real property. The Master Association shall be entitled to purchase the Lot or Cabin Interest at foreclosure. The Master Association may also bring an action at law against the Owner personally obligated to pay the delinquent Assessment and/or foreclose the lien against said Owner's Lot or Cabin Interest in the discretion of the Master Association. No Owner may exempt himself or otherwise avoid liability for the Assessments provided for herein by waiver of the use or enjoyment of any of the Association Property or by abandonment of the Lot or Cabin Interest against which the Assessments are made. In any action by the Master Association to collect Assessments or to foreclose a lien for unpaid Assessments, the court may appoint a receiver to collect all sums alleged to be due from the Lot or Cabin Interest Owner prior to or during the pending of the action. The court may order the receiver to pay any sums held by the receiver to the Master Association during the pending of the action to the extent of the Master Association's Regular Assessments. 15.12 Statement of Unsaid Assessments. The Master Association shall furnish to an Owner or such Owner's designee or to a holder of a security interest or its designee upon written request, delivered personally or by facsimile transmittal or by certified mail, first class postage prepaid, return receipt requested, to the Master Association, a written statement setting forth the amount of unpaid Assessments currently levied against such Owner's Lot or Cabin Interest, whether delinquent or not. The statement shall be furnished within fourteen (14) days after receipt of the request and is binding on the Master Association, the Executive Board, and every 98 • • • Owner. If no statement is furnished either delivered personally or by facsimile transmission or by certified mail, first-class postage prepaid, return receipt requested, to the inquiring party, then the Master Association shall have no right to assert a lien upon the Lot or Cabin Interest for unpaid Assessments which were due as of the date of the request. 15.13 Assessments for Tort Liability. In the event of any tort liability against the Master Association, which is not covered completely by insurance, each Owner shall contribute for the payment of such liability as a Special Assessment. The Master Association may, however, require a larger contribution from fewer than all Owners under any legal or equitable principles regarding liability for negligent or willful acts or omissions. 15.14 Working Capital Fund. In addition to the various Assessments provided for, at the time of closing of each conveyance of a Lot or Cabin Interest in the Common Interest Community, including initial conveyances to the Lot or Cabin Interest Owners, and all subsequent resales, the Lot or Cabin Interest purchaser shall be obligated to pay to the Master Association a non-refundable contribution to the Master Association's working capital fund in the amount of two (2) times the most recently adopted regular monthly assessment. Said working capital fund may be used by the Master Association from time to time for any Master Association purpose deemed appropriate by the Executive Board, and need not be segregated or accumulated. Such payment shall not be deemed to be a prepayment of any Assessment, and shall not relieve the Owner from the obligation to pay all Assessments as and when due. At the time of closing of a reconveyance of an Owner's Lot or Cabin Interest to a new Owner, the selling Owner shall forfeit any right to the working capital fund and the new Owner shall pay an additional non-refundable contribution to the working capital fund in the amount calculated as above set forth. Notwithstanding the foregoing, any builder acquiring an undeveloped Lot from Declarant for the purpose of constructing a residential dwelling thereon and selling the same in the ordinary course of the builder's business, and not for the builder's own residence, shall not be required to pay the above-described contribution to the working capital fund until the first to occur of the following: (a) the new residence on the Lot is occupied by a tenant or otherwise; or (b) the Lot is sold to a third party, in which case the purchaser shall make the payment to the working capital fund. The following conveyances shall be exempt from the working capital fund contribution obligation: Gift transfers and other transfers for no consideration, transfers for estate planning purposes or public purposes, transfers by court order (including foreclosure sales) or by will or intestacy, and transfers to a successor or assign of Declarant or an affiliate of Declarant. If a working capital fund contribution is not timely paid to the Master Association as above required, the delinquent contribution shall bear interest at the rate of twenty percent (20%) from the date of the conveyance until paid in full, shall constitute the personal, joint and several obligation and liability of the transferee(s), and the Master Association shall have a lien and security interest on the title to the transferee's Lot or Cabin Interest in the amount of the delinquent contribution, accrued interest thereon, and costs and attorneys' fees incurred in collecting the same, which may foreclosed by the Master Association in the same manner as a mortgage on real property. 99 • 1 • ARTICLE XVI EMINENT DOMAIN 16.1 Definition of Taking. The term "taking", as used in this Article 13, shall mean condemnation by eminent domain or sale under threat of condemnation. 16.2 Representation in Condemnation Proceedings of Association Property. In the event of a threatened taking of all or any portion of the Association Property, the Owners hereby appoint the Master Association through such persons as the Executive Board may designate to represent the Master Association and all of the Owners in connection therewith. The Master Association shall act in its sole discretion with respect to any awards being made in connection with the taking and shall be entitled to make a voluntary sale to the condemnor in lieu of engaging in a condemnation action. Service of process on the Master Association shall constitute sufficient notice to all Owners, and service of process on each individual Owner shall not be necessary. 16.3 Award for Association Property. Any awards received by the Master Association on account of the taking of Association Property shall be paid to the Master Association. The Master Association may, in its sole discretion, retain any award in the general funds of the Master Association or distribute all or any portion thereof to the Owners as their interests may appear. The rights of an Owner and the Mortgagee of a Lot or Cabin Interest as to any such distribution shall be governed by the provisions of the Mortgage encumbering the Lot or Cabin Interest. 16.4 Taking of Lots. If a Lot is acquired by eminent domain or part of a Lot is acquired by eminent domain leaving the Owner with a remnant which may not practically or lawfully be used for any purpose permitted by this Master Declaration, the award must include compensation to the Owner for that Lot and its Allocated Interests whether or not any Association Property was acquired. Upon acquisition, unless the decree otherwise provides, that Lot's Allocated Interests are automatically reallocated to the remaining Lots (as appropriate) in proportion to the respective Allocated Interests of those Lots before the taking. Any remnant of a Lot remaining after part of a Lot is taken is thereafter Association Property. Otherwise, if part of a Lot is acquired by eminent domain, the award must compensate the Owner for the reduction in value of the Lot and its interest in the Association Property whether or not any Association Property was acquired. Upon acquisition, unless the, decree otherwise provides: (a) That Lot's Allocated Interests are reduced in proportion to the reduction in the size of the Lot; and (b) The portion of Allocated Interests divested from the partially acquired Lot is automatically reallocated to that Lot and to the remaining Lots (as appropriate) in proportion to the respective interests of those Lots before the taking, with the partially acquired Lot participating in the reallocation on the basis of its reduced Allocated Interests. 100 • • • 16.5 Miscellaneous. The court decree shall be recorded in Garfield County. The reallocations of Allocated Interests pursuant to this Article shall be confirmed by an amendment to the Master Declaration prepared, executed, and recorded by the Master Association. ARTICLE XVII GENERAL PROVISIONS 17.1 Duration of Master Declaration. The term of this Master Declaration shall be perpetual. 17.2 Termination of Common Interest Community. The Common Interest Community may be terminated only by the agreement of (i) Owners to which at least eighty percent (80%) of the Master Association are allocated, and (ii) the holders of all First Mortgages on Lots and n Interests. In the event of such termination, the provisions of Section 38-33.3-218 of the Act shall apply. 17.3 Amendment of Master Declaration and Plat. This Master Declaration and the Plat may be amended pursuant to Section 38-33.3-217 of the Act. Under the Act, the Master Declaration may be amended by Declarant in certain defined circumstances, including without limitation (a) when the Declarant is exercising reserved rights under Article 6 hereof, (b) for purposes of correcting clerical, typographical or technical errors, or (c) to comply with the requirements, standards, or guidelines of recognized secondary mortgage markets, the Department of Housing and Urban Development, the Federal Housing Administration, the Veterans Administration, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or the Federal National Mortgage Association. The Act also provides that the Master Declaration may be amended by the Master Association in certain defined circumstances. Otherwise, and subject always to (i) any provisions of this Master Declaration requiring the consent of Declarant, and (ii) the provisions above allowing Owners to amend this Master Declaration (with the consent of the Master Association) in certain circumstances (lot line adjustments), this Master Declaration and any Supplemental Declarations (including the Plat and any Supplement Plats) may be amended only by the vote or agreement of Owners to which more than fifty percent (50%) of the votes in the Master Association are allocated. No amendment shall be effective to change, limit, impair, reduce or eliminate any right of Declarant as provided in this Master Declaration or in any Supplemental Declaration unless such amendment is approved in writing by Declarant. Furthermore, Section 38-33.3-217(4) of the Act provides that except to the extent expressly permitted or required by other provisions of the Act (e.g., permitted Declarant or Master Association amendments), no amendment may (i) create or increase special Declarant rights, (ii) increase the number of Lots, or (iii) change the boundaries of any Lot or the Allocated Interests of a Lot or Cabin Interest in the absence of a vote or agreement of Owners to which at least sixty-seven percent (67%) of the votes in the Master Association are allocated, including sixty-seven percent (67%) of the votes allocated to Lots and Cabin Interests not owned by Declarant. Further, Section 38-33.3-217(4.5) of the Act provides that except to the extent expressly permitted or required by other provisions of the Act, no amendment may change the uses to 101 • which any Lot is restricted in the absence of a vote or agreement of Owners to which at least • • sixty-seven percent (67%) of the votes in the Master Association are allocated. No consent of any mortgage or trust deed holder shall be required to accomplish any such amendments. With the exception of amendments accomplished by Supplemental Declaration (when lands are annexed to the Common Interest Community), an amendment to this Master Declaration shall be in the form of a "First (or Second, etc.) Amendment to Master Declaration and Plat of Spring Valley Ranch P.U.D." With the exception of Declarant amendments, amendments to this Master Declaration shall be duly executed by the President and Secretary of the Master Association and Recorded in the Office of the Clerk and Recorder of Garfield County. All amendments to this Master Declaration shall be indexed in the Grantee's index in the names of the Common Interest Community and the Master Association, and in the Grantor's index in the name of each Person executing the amendment. 17.4 Compliance; Enforcement. Every Owner and Occupant in the Common Interest Community and every other Person who may be an authorized user of Association Property, shall fully and faithfully observe, abide by, comply with and perform all of the covenants, conditions and restrictions set forth in this Master Declaration, any Supplemental Declaration, the Articles, Bylaws, Master Rules and Regulations, the P.U.D. Plan, the Design Guidelines and all approvals granted by the Design Review Committee, as the same or any of them may be amended from time to time. In addition to any other rights or remedies that may be provided to any Person under the terms and provisions of this Master Declaration or of any Supplemental Declaration, Declarant (for so long as it holds any of the rights set forth in Articles 6 and 8 hereof), the Master Association through its Executive Board, the Design Review Committee as to matters involving (i) Improvements within the Common Interest Community, (ii) the Design Guidelines, or (iii) any other matters arising under Article 6 hereof or with respect to which the Design Review Committee is otherwise expressly given enforcement authority under this Master Declaration or any Supplemental Declaration, and every Owner (except an Owner that is delinquent in the payment of Assessments hereunder) shall have the right, acting alone or together with others having such right, to enforce, by any proceeding at law or in equity, any or all of the covenants, conditions, restrictions, assessments, charges, liens, servitudes, easements and other provisions now or hereafter imposed by this Master Declaration, any Supplemental Declaration, the Articles, Bylaws, Master Rules and Regulations, the P.U.D. Plan, the Design Guidelines, and approvals granted by the Design Review Committee. Such enforcement rights shall include without limitation the right to bring an injunctive action for any form of injunctive relief available under Colorado law (including specific performance), or an action for damages, or both. Injunctive relief may include, without limitation, orders to stop work, orders to remove Improvements constructed in violation hereof, orders to compel performance, and any other orders appropriate under the circumstances. The Executive Board shall have the further right (a) to levy and collect, after Notice and Hearing, reasonable fines for the violation of any of the foregoing matters, (b) to levy and collect a Reimbursement Assessment against any Owner, (c) to enter upon any Lot within the Common Interest Community, after giving the Owner or Occupant at least five (5) days' written notice of 102 • • • the nature of the violation, (unless an emergency exists, in which case without notice), without liability to the Owner or Occupant thereof, to enforce or cause compliance with such matters, at the cost and expense of the Owner or Occupant in violation, and/or (d) where the violation has continued for more than ninety (90) days after the Executive Board has given the Owner or Occupant written notice of the violation, the Executive Board may temporarily cut off any or all Master Association services or benefits to the subject Owner or Occupant and his Lot or Cabin Interest , including the right to use Association Property (except access roads), until the violation is cured. In any action brought under this Section, the prevailing party shall be entitled to an award of its reasonable attorneys' fees and costs incurred in connection therewith. Failure by any party entitled to do so to exercise in a particular instance any of the rights available to it under this Section shall in no event be deemed a waiver of the right to do so in any other instance. Provided always, that no Owner shall have the right to bring an enforcement action against another Owner or Occupant for a breach by that Owner or Occupant of any of such matters, or against Declarant, the Master Association or the Design Review Committee for a breach by Declarant, the Master Association or the Design Review Committee of any of such matters or for a. failure by the Declarant, Master Association or the Design Review Committee to enforce compliance with such matters by others, until the aggrieved Owner has given the offending Owner or Occupant, or Declarant, the Master Association and/or the Design Review Committee at least thirty (30) days prior written notice of the aggrieved Owner's complaint and the opportunity to resolve the problem during that thirty (30) day period. And further provided, that notwithstanding any law to the contrary, no action shall be commenced or maintained to enforce the terms of any building restriction contained in the provisions of this Master Declaration or any Supplemental Declaration, the Bylaws, the Articles of Incorporation, the P.U.D. Plan, the Design Guidelines, or the Master Rules and Regulations, or to compel the removal of any building or Improvement because of the violation of the terms of any such building restriction, unless the action is commenced within one year from the date from which the person commencing the action knew or in the exercise of reasonable diligence should have known of the violation for which the action is sought to be brought or maintained. 17.5 Rights of First Mortgagees. Upon the filing of a written request therefor with the Master Association, the holder of a First Mortgage on any Lot or Cabin Interest in the Common Interest Community shall be entitled to: (a) Written notice from the Master Association that the Owner of the subject Lot or Cabin Interest is delinquent in the payment of Assessments thereon; (b) Inspect the books and records of the Master Association during normal business hours; (c) Receive copies of annual Master Association financial statements; (d) Receive written notice of meetings of the Master Association where matters will be considered that, if approved, will require the consent of First Mortgagees or some of them; 103 • (e) Receive written notice of condemnation proceedings affecting any • • Association Property; and (0 Receive written notice of the lapse of any insurance that the Master Association is required to maintain under this Master Declaration. In addition, any First Mortgagee shall be entitled to pay any taxes or other charges which are in default and which may or have become a lien against Association Property and may pay any overdue premiums on hazard or general liability insurance policies covering Association Property, and shall be entitled to immediate reimbursement therefor from the Master Association, unless the Master Association is contesting any unpaid taxes or other charges and has set aside sufficient funds to pay the contested amounts if necessary. 17.6 Club Property and Facilities. In no event and for no purpose shall the Club Property or any golf course improvements or other improvements or facilities constructed thereon or related thereto, be deemed to be a part of the Common Interest Community, to constitute Association Property, or to be burdened by this Master Declaration or any Supplemental Declaration. This Master Declaration does not grant or create any rights or privileges to or for the benefit of the Owners or Occupants in the Common Interest Community to use or enjoy the Club Property or any part thereof or improvements or facilities thereon for any purpose, except for such limited ingress and egress rights as may be expressly provided in the License Agreement. Without limiting the generality of the foregoing, no Lot or Cabin Interest shall have any right (i) to have golf course or other improvements or facilities constructed on the Club Property or some of them, or to have them constructed in any particular location on the Club Property, (ii) to have or preserve a visual or sight easement over and across any portion of the Club Property, and/or (iii) to have access to or across the Club Property in any particular location or alignment. The Club Property is private property owned and operated by the Declarant or its successors or assigns and administered according to membership policies and rules and regulations adopted by the Club Property Owner from time to time. The Club Property may include, without limitation, golf courses, practice facilities, clubhouses, tennis courts, swimming pools, and other recreational, social, maintenance and administrative improvements and facilities. These facilities shall be developed and provided at the discretion of the Club Property Owner. The Club Property Owner has the exclusive right to determine from time to time, in its sole discretion and without notice or approval of any change, how and by whom these facilities shall be used, if at all: By way of example, but not limitation, the Club Property Owner shall have the right to approve users and determine eligibility for use, to reserve use rights, to terminate any or all use rights, to change, eliminate or cease operation of any or all of the facilities, to transfer any or all of the Club Property or the operation thereof to anyone (including without limitation a member -owned or equity club) and on any terms, to limit the availability of use privileges, and to require the payment of a purchase price, membership contribution, initiation fee, membership deposit, dues, use charges and other charges for use privileges. Ownership of a Lot or Cabin Interest or membership in the Master Association does not give any vested right. or easement, prescriptive or otherwise, to use the Club Property, and does not grant any ownership or membership interest therein. 104 • • 17.7 Club Property Hazards, Risks and Liabilities; Disclosure, Assumption of Risk, Release and Indemnification. The Club Property may be used as private or public golf courses and related improvements, facilities and uses. By acceptance of a deed to a Lot or Cabin Interest, each Owner acknowledges (i) that the use and operation of the Club Property as golf courses and related facilities will involve certain risks to the Common Interest Community, including but not limited to damage to property and improvements and personal injury and death caused by errant golf balls that may be hit into the Common Interest Community, and (ii) that while the Common Interest Community has been designed to minimize these risks to the extent reasonably possible, it would be impossible to render the Common Interest Community free of all golf course -related risks. Certain of the more common hazards associated with the operation of a golf course are more particularly described in subsections (a) through (g) below (collectively the "Golf Course Hazards"): (a) Errant Golf Balls. Owners of Lots or Cabin Interests, particularly Lots or Cabin Interests abutting the Club Property, acknowledge the inherent risks of errant golf balls (including without limitation property damage, personal injury and death), and assume and accept such risks, including the associated trespasses. Owners acknowledge that golfers have the right to enter upon Lots in the Common Interest Community to retrieve golf balls that are visible from the fairway, and each Owner agrees to release and waive any claims said Owner may have against the Declarant or the Club Property Owner as a result of such entry and retrieval and any trespass associated therewith. (b) View Impairment/Impairment of Privacy. Owners of Lots or Cabin Interests, including Owners of Lots or Cabin Interests abutting the Club Property, have no guarantee that their views over and across the Club Property or any part thereof will be forever preserved without impairment, that the views from the Club Property will not be impaired, or that their privacy will not be impaired. The Club Property Owner has no obligation to the Owners to prune or not prune trees or other landscaping and such Club Property Owner may change, add to or reconfigure the golf course(s) and related or unrelated facilities and improvements on the Club Property, including without limitation structural improvements, fences, trees, landscaping, practice facilities, tees, bunkers, fairways, greens, clubhouses, tennis courts, swimming pools, and other recreational, social, maintenance and administrative improvements and facilities, in any manner or location and at any time deemed appropriate by said Club Property Owner, without liability or obligation to the Owners. (c) Pesticides and Fertilizers. Pesticides, fertilizers and other chemicals may be utilized in connection with the operation and maintenance of the Club Property and related landscaping and the Owners acknowledge, accept and assume the risks associated with the use of pesticides, fertilizers and other chemicals. (d) Overspray. Owners of Lots or Cabin Interests, particularly Lots or Cabin Interests abutting the Club Property, may experience "overspray" from the Club Property irrigation system, and such Owners acknowledge, accept and assume the risks associated with such "overspray". • (e) Noise and Light; Tournaments. Owners of Lots or Cabin Interests, particularly Lots or Cabin Interests in proximity to the golf course clubhouse(s), may be exposed to lights, noises or activities resulting from the use of the golf course(s) for tournaments, from the use of the clubhouse(s) for dining and entertainment, and from use of the parking lot(s), and such Owners acknowledge, accept and assume the risks associated with such uses. (f) Maintenance. The Club Property and related improvements and facilities will require daily maintenance, including mowing, irrigation and grooming, during early morning, evening and night hours, including without limitation the use of tractors, mowers, blowers, pumps, compressors and utility vehicles. Owners of Lots or Cabin Interests, particularly Lots or Cabin Interests in proximity to the Club Property, will be exposed to the noise and other effects of such maintenance, and such Owners acknowledge, accept and assume the risks associated with such maintenance activities. IN CONSIDERATION FOR THE ABOVE -ACKNOWLEDGED ENHANCEMENT IN VALUE, AND WITH FULL AWARF THESE AND OTHER RISKS, BY ACCEPTING THE DEED TO A LOT OR CABIN INTEREST EACH LOT OR CABIN INTEREST OWNER FOR HIMSELF AND HIS OCCUPANTS, INVITEES, LICENSEES, SUCCESSORS AND ASSIGNS (COLLECTIVELY THE "OWNER'S RELATED PARTIES") HEREBY (I) ACKNOWLEDGES, ACCEPTS AND ASSUMES THE RISKS ASSOCIATED WITH SAID GOLF COURSE HAZARDS AND OF ANY DAMAGE TO PROPERTY OR TO THE VALUE OF PROPERTY, DAMAGE TO IMPROVEMENTS, PERSONAL INJURY OR DEATH, OR THE CREATION OR MAINTENANCE OF A TRESPASS OR NUISANCE, CAUSED BY OR ARISING IN CONNECTION WITH ANY OF SAID GOLF COURSE HAZARDS OR OTHER RISKS, HAZARDS AND DANGERS ASSOCIATED WITH THE OPERATION OF PRIVATE OR PUBLIC GOLF COURSES OR ARISING FROM THE DESIGN OF SUCH GOLF COURSES (COLLECTIVELY THE "ASSUMED RISKS"), AND (II) RELEASES, WAIVES, DISCHARGES, COVENANTS NOT TO SUE, INDEMNIFIES AND AGREES TO DEFEND AND HOLD HARMLESS THE DECLARANT, THE MASTER ASSOCIATION, AND THE CLUB PROPERTY OWNER, AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, PARTNERS, SHAREHOLDERS, MEMBERS, AFFILIATES, EMPLOYEES, CONTRACTORS, CONSULTANTS, AGENTS, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE "RELEASED PARTIES") EACH OF THEM, FROM ANY AND ALL LIABILITY TO THE LOT OR CABIN INTEREST OWNER OR OWNER'S RELATED PARTIES FOR ANY DAMAGES, LOSSES, COSTS (INCLUDING, WITHOUT LIMITATION, ATTORNEYS' FEES), CLAIMS, DEMANDS, SUITS, JUDGMENTS, ORDINARY NEGLIGENCE, OR OTHER OBLIGATIONS ARISING OUT OF OR CONNECTED IN ANY WAY WITH ANY OF THE ASSUMED RISKS. THIS RELEASE IS INTENDED TO BE A COMPREHENSIVE RELEASE OF LIABILITY BUT IS NOT INTENDED TO ASSERT DEFENSES WHICH ARE PROHIBITED BY LAW. NOTWITHSTANDING THE FOREGOING, HOWEVER, THIS SECTION SHALL NOT LIMIT THE LIABILITY OF INDIVIDUAL GOLFERS USING THE CLUB PROPERTY. 106 • • • In addition to the foregoing, the Declaration of Easements and Rights also establishes certain easements and restrictions upon portions of the Common Interest Community for the benefit of the Club Property Owner and the Club Property, and each Owner acknowledges having read that document and being familiar with the terms thereof. The acknowledgments, assumptions of risk and agreements contained in this Section shall be deemed to run with the title to each Lot and Cabin Interest within the Common Interest Community. 17.8 Notice. Each Owner, and each First Mortgagee if it so elects, shall register its mailing address from time to time with the Master Association. Except as otherwise specifically provided in this Master Declaration, any notice permitted or required to be given hereunder shall be in writing and may be delivered either personally, or by facsimile transmission, or by mail. Notices delivered personally or sent by facsimile transmission shall be deemed given on the date so delivered or sent. If delivery is made by mail, it shall be deemed to have been delivered two (2) business days after a copy of the same has been posted in the first-class U.S. Mail with adequate postage affixed, addressed to the receiving party at the address last registered by such party with the Master Association, or in the case of an Owner that has not provided such an address, to the Lot of that Owner. Notices to the Master Association shall be sent to such address as it may from time to time designate in writing to each Owner. 17.9 No Dedication to Public Use. Except as otherwise expressly provided herein or therein to the contrary, nothing- contained in this Master Declaration or in any Supplemental Declaration shall be deemed to be or to constitute a dedication of all or any part of the Common Interest Community to the public or to any public use. 17.10 Interpretation of Master Declaration and Supplemental Declarations. Conflicts with Act. The provisions of this Master Declaration and of all Supplemental Declarations shall be liberally construed to effectuate their purpose of creating a common and general plan for the development, improvement, enhancement, protection and enjoyment of the Common Interest Community, and to the extent possible, shall be construed so as to be consistent with the Act. In the event that any of the terms and conditions of this Master Declaration or of any Supplemental Declaration are determined to be inconsistent with the Act, the Act shall control. Notwithstanding anything to the contrary in this Master Declaration or in any Supplemental Declaration, no rights or powers reserved to Declarant hereunder or in any Supplemental Declaration shall exceed the time limitations upon or the permissible extent of such rights or powers under the Act, and in the event any of such reserved rights or powers are determined to be inconsistent with the Act, the related provisions shall not be invalidated but shall be modified to the extent required to comply with the Act. 17.11 Conflict With Plats. In the event of any conflict or inconsistency between the provisions of this Master Declaration or any Supplemental Declaration and the Plat, or any Supplemental Plat, including the Plat notes thereon, the provisions of said Plat or Supplemental Plat or Plat notes, as the case may be, shall govern and control and this Master Declaration or any Supplemental Declaration shall automatically be amended, but only to the extent necessary to conform the conflicting provisions hereof with the provisions of said Plat, Supplemental Plat or Plat notes. 107 • • • 17.12 No Express or Implied Covenants on Lands Not Annexed. Nothing in this Master Declaration or in any Supplemental Declaration shall create, or be deemed to create, any express or implied covenants upon or with respect to any real property or interest therein not actually annexed to the Common Interest Community in the manner provided herein, including without limitation the properties described in attached Exhibit B. 17.13 Violations Constitute a Nuisance. Any violation of any provision, covenant, condition, restriction or equitable servitude contained, in this Master Declaration, or in any Supplemental Declaration, whether by act or omission, is hereby declared to be a nuisance and may be enjoined or abated, whether or not the relief sought is for negative or affirmative action, by any Person entitled to enforce the provisions of this Master Declaration. This provision does not limit the remedies that may be available under this Master Declaration or at law or in equity. Failure of the Master Association to bring enforcement action to correct any violation of this Master Declaration or any Supplemental Declaration shall not constitute a waiver of or estop the Master Association from bringing a future or subsequent enforcement action to correct such violation or any other similar violation. 17.14 Declarant's Disclaimer of Representations and Warranties. No representations or warranties of any kind, express or implied, have been given or made or shall be deemed to have been given or made by Declarant or its agents or employees in connection with the Common Interest Community, the Club Property, or any portion thereof or any Improvements thereon, its or their physical condition, zoning, compliance with applicable laws, fitness for intended use or operation, adequacy or availability of utilities, or in connection with the subdivision, sale, improvement, operation, maintenance, cost of maintenance, taxes or regulation thereof, unless and except as shall be specifically set forth in writing herein, in any registration statement or purchase and sale agreement executed by Declarant, or in any closing document related thereto. Furthermore, no such representations or warranties have been given or made or shall be deemed to have been given or made by Declarant or its agents or employees that the plans presently envisioned for the complete development of the Common Interest Community, the Association Property, and/or the Club Property, can or will be carried out, or that any land now owned or hereafter acquired by Declarant is or will be subjected to this Master Declaration or that any such land (whether or not it is subjected to this Master Declaration) is or will be committed to or developed for a particular (or any) use, or that if such land is once used for a particular use, such use will continue in effect, unless and except as shall be specifically set forth in writing herein, in any registration statement or purchase and sale agreement executed by Declarant, or in any closing document related thereto. 17.15 Captions. Captions given to various Articles and Sections herein are for convenience only and are not intended to modify or affect the meaning of any of the substantive provisions hereof and shall not be considered in interpreting any of the provisions hereof. 17.16 Singular Includes Plural. Unless the context requires a contrary construction, as employed in this Master Declaration the singular shall include the plural and the plural the singular; and the masculine, feminine or neuter shall each include the masculine, feminine and neuter. 108 • • 17.17 Remedies Cumulative. Each remedy provided under this Master Declaration and any Supplemental Declaration is cumulative and not exclusive. 17.18 Costs and Attorneys' Fees. In any action or proceeding involving the interpretation or enforcement of any provision of this Master Declaration or of any Supplemental Declaration, the prevailing party shall be entitled to recover its reasonable attorneys' fees and costs incurred in connection therewith. 17.19 Governing Law; Jurisdiction. The laws of the State of Colorado shall govern the interpretation, validity, performance, and enforcement of this Master Declaration and any Supplemental Declaration. Any legal action brought in connection with this Master Declaration or any Supplemental Declaration shall be commenced in the District Court for Garfield County, Colorado, and by acceptance of a deed to a Lot or Cabin Interest each Lot and Cabin Interest Owner voluntarily submits to the jurisdiction of such court. 17.20 Severability. Any determination by any court of competent jurisdiction that any provision of this Master Declaration or of any Supplemental Declaration is invalid or unenforceable shall not affect the validity or enforceability of any of the other provisions hereof. Where any provision of this Master Declaration or of any Supplemental Declaration is alleged to be or declared by a court of competent jurisdiction to be unconscionable, Declarant shall have the right by amendment to this Master Declaration or Supplemental Declaration to replace such provision with a new provision, as similar thereto as practicable but which in Declarant's reasonable opinion would be considered not to be unconscionable. 17.21 Disclaimer Regarding Safety. DECLARANT AND THE MASTER ASSOCIATION HEREBY DISCLAIM ANY OBLIGATION REGARDING THE SECURITY OF ANY PERSONS OR PROPERTY WITHIN THE COMMON INTEREST COMMUNITY. ANY OWNER OF PROPERTY WITHIN THE COMMON INTEREST COMMUNITY ACKNOWLEDGES THAT DECLARANT AND THE MASTER ASSOCIATION ARE ONLY OBLIGATED TO DO THOSE ACTS SPECIFICALLY ENUMERATED HEREIN, OR IN THE ARTICLES OF INCORPORATION AND BYLAWS, AND ARE NOT OBLIGATED TO DO ANY OTHER ACTS WITH RESPECT TO THE SAFETY OR PROTECTION OF PERSONS OR PROPERTY WITHIN THE COMMON INTEREST COMMUNITY. ARTICLE XVIII DISPUTE RESOLUTION 18.1 Alternative Method for Resolving Disputes. Declarant, the Master Association, its officers and directors and all Owners (each of the foregoing entities being referred to as a "Party"), agree to encourage the amicable resolution of disputes involving the Common Interest Community and all of its improvements and agrees to submit all Claims to the procedures set forth in this Article XV. 18.2 Claims. Except as specifically excluded in Section 15.3 below, and except as provided by applicable law, all claims, disputes and other controversies between the Master Association and any Owner, or between two or more Owners, or between any Owner and 109 • Declarant or between the Master Association and Declarant, including, without limitation, the • • following: (a) any purchase agreement between Declarant and any Owner (except as may be expressly provided otherwise therein); (b) purchase of a Lot or Cabin Interest from Declarant; (c) interpretation, application or enforcement of Governing Documents (except as provided in Section 15.3 below); (d) the soils of any property that lies within the Common Interest Community, including the Lots and Cabin Interests and Common Areas; (e) land development, design, construction, and/or alteration of the improvements within the Common Interest Community, including the Lot or Cabin Interests and Common Areas and/or any alleged defect therein; (f) Documents; any rights, obligations and duties of any Party under the Governing (g) any personal injury or property damage that any Owner alleges to have sustained on the Common Interest Community, including the Lot or Cabin Interests and Common Areas; (h) any limited warranty issued in connection with the sale of a Lot or Cabin Interest by Declarant; and (i) any breach of any of the foregoing. 18.3 Exemptions. The following shall not be Claims and shall not be subject to the provisions of this Policy: (a) the levying and collection of Assessments; (b) any action by the Master Association enforce any provision of the this Declaration or any of the other documents governing the Common Interest Community or where time is of the essence in order to comply with applicable law or contractual provision of a contract or lease or in the case of emergency; and (c) any dispute that involves or that includes, through joinder, interpleader or otherwise, any third parties, who are not Parties. 18.4 Notice of Claim. Any Party alleging a Claim ("Claimant") against any other Party ("Respondent") shall submit all of its Claims by written notification delivered to each Respondent, stating plainly and concisely: 110 • • 1 (a) the nature of the Claim, including a list of any alleged construction defects, the Persons involved and Respondent's role in the Claim; (b) the legal or contractual basis of the Claim (i.e., the specific authority out of which the Claim arises); (c) the date on which the Claim first arose; (d) the name and address of every Person, including without limitation any current or former employees of Respondent, whom Claimant believes does or may have information relating to the Claim; and (e) the specific relief and/or proposed remedy sought. 18.5 Timely Initiation. All Claims shall be initiated by the Claimant within a reasonable time after the Claim has arisen, but in no event later than two years after the Claim arises, regardless of the nature of the Claim. 18.6 Right to be Heard. Upon receipt of a Claim and prior to the Master Association or any Owner asserting the Claim commencing any mediation or arbitration, Respondent shall have the right to make a written response and be heard by Claimant, affected Owners, and Master Association in an effort to resolve the Claim. 18.7 Right to Inspect and Repair. If the Claim is based on the land development, design, construction and/or alteration of any improvements within the Common Interest Community then, upon reasonable notice to any affected Owners (or the Master Association if the affected area is owned by the Master Association), Respondent shall have the right to access the affected area at a reasonable time(s) for purposes of inspecting the condition complained of including but not be limited to, any investigative, invasive or destructive testing. In the exercise of the inspection rights contained herein, the Party causing the inspection to be made ("Inspecting Party") shall: (a) be careful to avoid any unreasonable intrusion upon, or harm, damage or costs to the other party including, without limitation, using its best efforts to avoid causing any damage to, or interference with, any improvements on the property being inspected ("Affected Property"); (b) minimize any disruption or inconvenience to any person who occupies the Affected Property; (c) remove daily all debris caused by the inspection and located on the Affected Property; and (d) in a reasonable and timely manner, at the Inspecting Party's sole cost and expense, promptly remove all equipment and materials from the Affected Property and 111 • • • repair and replace all damage, and restore the Affected Property to the condition of the Affected Property as of the date of the inspection, unless the Affected Property is to be immediately repaired. (e) In the event the Inspecting Party wishes to make repairs to resolve the subject matter of the Claim, the Inspecting Party shall have the right, at its option, to do so and to enter the Affected Property at a reasonable time(s) and upon reasonable notice for such purpose. The Inspecting Party shall not permit any claim, lien or other encumbrance arising from the exercise of its right to inspect and/or repair to accrue against or attach to the Affected Property. 18.8 Good Faith Negotiations. The Parties shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. Any party may be represented by attorneys and independent consultants (at such Party's cost) to assist such party in negotiations and to attend meetings. 18.9 Mediation. (a) If the Parties do not resolve the Claim through negotiations within 30 days after the date of submission of the Claim to Respondent(s), as may be extended upon agreement of all affected Parties, any Party shall have 30 additional days to submit the Claim to mediation under the auspices of an independent mediation service reasonably acceptable to all Parties. If no Party submits the Claim to mediation within such time, or does not appear for the mediation, Claimant shall be deemed to have waived the Claim, and all Respondent(s) shall be released and discharged from any and all liability to Claimant on account of such Claim. (b) Any settlement of the Claim through mediation shall be documented in writing by the mediator and signed by the Parties. (c) If the Parties do not settle the Claim within 30 days after submission of the matter to the mediation, or within such other time as determined by the mediator or agreed to by the Parties, the mediator shall issue a notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of Mediation notice shall state that the Parties are at an impasse and the date that mediation was terminated. (d) Within 10 days after issuance of a Termination of Mediation, Claimant shall make a final written Settlement Demand to the Respondent(s), and the Respondent(s) shall make a final written Settlement Offer to the Claimant. If the Claimant fails to make a Settlement Demand, Claimant's original Claim shall constitute the Settlement Demand. If the Respondent(s) fail to make a Settlement Offer, Respondent(s) shall be deemed to have made a "zero" or "take nothing" Settlement Offer. (e) Each Party shall bear its own costs, including attorney's fees, and each Party shall share equally all charges rendered by the mediator(s) and all filing fees and costs of conducting the mediation proceeding. 112 • • (f) If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance with this Policy and any Party thereafter fails to abide by the terms of such agreement, then any other affected Party may file suit to enforce such agreement without the need to again comply with the procedures set forth in this Policy. In such event, the Party taking action to enforce the agreement shall be entitled to recover from the non -complying Party all costs incurred in enforcing such agreement, including, without limitation, reasonable attorney's fees and court costs. 18.10 Arbitration. (a) If the Parties do not reach a settlement of the Claim within fifteen days after issuance of any Termination of Mediation and reduce the same to writing, the Claimant shall have fifteen additional days to submit the Claim to binding arbitration in accordance with the Procedures contained below ("Arbitration Procedures") and in accordance with the Uniform Arbitration Act. (b) The Parties agree that where any Claim, dispute or other controversy existing between them is submitted to arbitration, and any other Party may have liability with respect thereto, all Parties including any third Parties agree that the third Parties may be joined as additional Parties in the arbitration, or if a separate arbitration exists or is separately initiated, to the consolidation of all arbitrations. It is the intent of the Parties to resolve all rights and obligations of all interested Parties at one time in one forum rather than in multiple proceedings. (c) Within 60 days after submission of the Claim, Claimant shall file with the arbitrator and deliver to Respondent(s) a certified list of construction defects that are the subject of the Claim, if applicable, which list shall be signed by the attorney for Claimant, or if Claimant does not have an attorney, by Claimant, and shall include: (i) a statement that (A) the Claimant, or his attorney, has consulted with a Person not a Party to the Claim with expertise in the area of each construction defect that is the subject of the Claim (the "Construction Consultant") and (B) the Construction Consultant has inspected the improvements for which the construction defects are claimed, has reviewed the known facts, including such records, documents and other materials the Construction Consultant has found to be relevant to the construction defects, and has concluded that the Claim has substantial justification based on the Construction Consultant's inspection and review of the known facts; (ii) a certification that the Construction Consultant can demonstrate by competent evidence that, as a result of training, education, knowledge and experience, the Construction Consultant is competent to testify as an expert and render an opinion as to the alleged construction defects; (iii) a certification signed by the Construction Consultant stating (A) such Person's name, address, qualifications and credentials that render him or her 113 • • competent to express an expert opinion as to the alleged construction defect, (B) that he or she has inspected each improvement and reviewed the known facts, including such records, documents and other materials which he or she has found to be relevant to the construction defects at issue, and (C) as to each improvement for which a construction defect Claim is asserted, an identification of the owner of the improvement, the location and date of construction of the improvement, and an identification of each claimed construction defect and its specific location; (iv) a computation of the damages alleged for each construction defect; (v) an identification, with respect to each improvement and construction defect, of each Party alleged to be responsible for such defect; (vi) a certification that each Party alleged to be responsible for the alleged construction defect has been given written notice of the defect and an opportunity to remedy the defect under the foregoing provisions of this Article and that the defect has not been remedied; and (vii) a copy of the notice of Claim served by Claimant on each Person that is named as a Party to the Claim. (d) If the parties are unable to agree upon an Arbitrator within 30 days from the date of the Arbitration Notice, the presiding judge of the District Court in which the Common Interest Community is located shall appoint a qualified arbitrator upon application of a party. (e) The award rendered by the Arbitrator shall be final and binding, may be filed with any court of competent jurisdiction in the County in accordance with applicable law and judgment obtained thereon, and execution may issue. (f) Claimant shall notify Respondent(s) prior to retaining any Person or entity as an expert witness for purposes of any arbitration or authorized litigation. (g) All Claims subject to arbitration shall be decided by a single private party arbitrator to be appointed by the parties. (h) If the Claim is not timely submitted to arbitration, if Claimant fails to appear for the arbitration proceeding, or if Claimant fails to file and deliver the certified list of construction defects as provided in subparagraph (c) above, the Claim shall be deemed abandoned, and Respondent(s) shall be released and discharged from any and all liability to Claimant arising out of such Claims. (i) No person shall serve as the arbitrator where that person has any financial or personal interest in the result of the arbitration or any family, social or significant professional acquaintance with any other party to the arbitration. Any person designated as an arbitrator shall immediately disclose in writing to all Parties any circumstance 114 • • likely to affect the appearance of impartiality, including any bias or financial or personal interest in the outcome of the arbitration ("Arbitrator Disclosure"). If any Party objects to the service of any arbitrator within 14 days after receipt of that Arbitrator's Disclosure, such arbitrator shall be replaced in the same manner in which that arbitrator was selected. (j) The Arbitrator shall fix the date, time and place for the hearing. The arbitration proceedings shall be conducted in the County in which the Common Interest Community is located unless otherwise agreed by the Parties. (k) No formal discovery shall be conducted in the absence of an order of the Arbitrator or express written agreement among all the Parties. Oral statements, not made during the arbitration proceeding, unless verified or authorized by a written document, shall not be admissible in any arbitration proceeding. (1) Unless directed by the Arbitrator, there will be no post -hearing briefs. (m) The Arbitration Award shall address each specific Claim to be resolved in the arbitration, provide a summary of the reasons therefore and the relief granted, and be rendered promptly after the close of the hearing and no later than 14 days from the close of the hearing, unless otherwise agreed by the Parties. The Award shall be in writing and shall be signed by the Arbitrator. (n) The Arbitrator shall award the prevailing party such party's costs and expenses, including reasonable attorney's fees. In the event that the arbitration is between the Master Association and an Owner or Owners, and the Owner or Owners are the prevailing parties, then the attorneys fees awarded shall be Common Expenses, but shall not be assessed against those Owners that were the prevailing parties. 18.11 Consensus for Master Association Action. Except as otherwise provided for in this Policy, the Master Association shall not commence any action, mediation or arbitration against any Party for a Claim unless the Owners to which at least 67% of the votes in the Master Association are allocated agree to such proceedings. However, such Owner consent must be obtained by the Master Association only after the Board delivers written notice to all Members of the Master Association in accordance with the procedures set forth in the Bylaws with respect to meetings of Members; which notice shall include: (a) a description of the nature of the Claim and the relief sought; (b) a copy of any written response thereto, including any settlement proposal; (c) a statement advising Owners of their duties to disclose to prospective purchasers and lenders the Claim that the Master Association proposes to assert; (d) a statement that any recovery from the action may not result in receipt of funds to pay all costs of remedying the Claim as estimated by experts retained by the Master Association; 115 • • (e) an estimate of the expenses and fees to the Master Association that the Board anticipates will be incurred in prosecuting the claim; (f) a description of the agreement with the attorneys whom the Board proposes to retain to prosecute the cause of action; and (g) 33.3-303.5. any other information required to be disclosed pursuant to C.R.S. § 38- 18.12 Liability for Failure to Maintain an Action. No director or officer of the Master Association shall be liable to any Person for failure to institute or maintain or bring to conclusion a cause of action, mediation or arbitration for a Claim if the following criteria are satisfied: (a) the director or officer was acting within the scope of his or her duties; (b) the director or officer was acting in good faith; and (c) the act or omission was not willful, wanton or grossly negligent. 18.13 Utilization of Funds Resulting from the Cause of Action. In the event the Master Association receives funds as a result of any settlement, mediation, arbitration or judgment based upon a cause of action, after payment of fees and costs incurred in connection with prosecution of such action, the Master Association shall: (a) deposit the proceeds in a special, interest-bearing account; and (b) utilize the proceeds only for the purpose of performing remedial or repair work on the conditions which were the subject of the Claim or otherwise for purposes of remedying the Claim. 18.14 Exclusive Remedy. The provisions contained in this Article shall be the sole and exclusive remedy that the Master Association and other Parties shall have against Declarant for any Claim, and Declarant, the Master Association and each Owner expressly waives any right it may have to seek resolution of any Claim contemplated by this Article in any court of law or equity and any right to trial by jury. 18.15 Costs. Should any Party commence litigation or any other action against any other Party, in violation of the terms of this Article, such Party shall reimburse the costs and expenses, including attorneys' fees, incurred by the other Party seeking dismissal of such litigation or action. If Claim involves Declarant or the Master Association, no Party shall record a memorandum or notice of lis pendens or similar instrument that would encumber or create a lien on real property owned by either Declarant or the Master Association, and any recording of the same shall be null and void and of no force or effect. 116 1 • IN WITNESS WHEREOF, Declarant has executed this Master Declaration as of the day and year first above written. Spring Valley Holdings, LLC, a Delaware Limited Liability Company By: Its: STATE OF c; (-04,taz. .5n -Ail f' �f ) ss. COUNTY OF -5 4l ! gCe ) The foregoing Master Declaration was ac owledged before me this 2_v/day of byy} \o -Q)15 ask�,, 1 o Y��f Spring Va y Holdings, LLC, a Delaware Limited Liability Company, Declarant. WITNESS my hand and official seal. My commission expires: (SEAL) ALICE FONG NG Commission #1871686 Notary Public - California San Francisco County My Comm. Expires Dec 17, 2013 Notary Public `-J 117 • • EXHIBIT A LEGAL DESCRIPTION OF COMMON INTEREST COMMUNITY A parcel of land located in Sections 28, 29, 32 and 33, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at the Center Quarter Corner of said Section 33 being a 3 inch Aluminum Cap (County Surveyor) found in place; thence N 88°27'28" W 1112.41 feet along the south line of Lot 6, of said Section 33 to the southwest corner of said Lot 6 being a 3 inch Aluminum Cap (County Surveyor) found in place; thence N 01°56'25" E 838.15 feet along the west line of said Lot 6 to the southeast corner of Lot 5 of said Section 33 being a 3 inch Aluminum Cap (County Surveyor) found in place; thence N 89°14'27" W 1072.10 feet along the south line of said Lot 5 to a point on the northerly right-of-way of Garfield County Road 119; thence the following seventeen courses along the northerly right-of-way of said County Road 119: 1. thence along the arc of a non -tangent curve to the left having a radius of 190.00 feet, and a central angle of 38°53'15" for a distance along the curve of 128.96 feet; the chord of said curve bears N 70°21'49" W a distance of 126.50 feet; 2. thence N 89°48'27" W 335.07 feet to a point on the west line of said Section 33 whence the Northwest Corner of said Section 33 being a 3 -inch County Surveyor's Aluminum Cap found in place bears N 01°14'21" E 1729.72 feet; 3. thenceN 89°48'27" W 746.63 feet 4. thence along the arc of a curve to the right having a radius of 9975.00 feet, and a central angle of 01°23'23" for a distance along the curve of 241.95 feet; the chord of said curve bears N 89°06'46" W a distance of 241.94 feet; 5. thenceN 88°25'04" W 886.82 feet; 6. thence along the arc of a curve to the right having a radius of 30.00 feet, and a central angle of 101°43'17" for a distance along the curve of 53.26 feet; the chord of said curve bears N 37°33'26" W a distance of 46.54 feet; 7. thenceN 13°18'13" E 1531.48 feet; 8. thence along the arc of a curve to the left having a radius of 715.00 feet, and a central angle of 15°55'12" for a distance along the curve of 198.67 feet; the chord of said curve bears N 05°20'37" E a distance of 198.03 feet to a point on the south line of said Section 29 whence the Southeast Corner of said Section 29 bears S 89°03'23" E a distance of 1570.16 feet; 9. thence along the arc of a curve to the left having a radius of 715.00 feet, and a central angle of 29°05'27" for a distance along the curve of 363.03 feet; the chord of said curve bears N 17°09'43" W a distance of 359.14 feet; 10. thence along the arc of a curve to the left having a radius of 1853.11 feet, and a central angle of 14°56'46" for a distance along the curve of 483.40 feet; the chord of said curve bears N 39°10'49" W a distance of 482.03 feet; 11. thenceN 46°39'12" W 512.11 feet; 12. thence along the arc of a curve to the left having a radius of 544.29 feet, and a central angle of 29°19'12" for a distance along the curve of 278.53 feet; the chord of said curve bears N 61°18'49" W a distance of 275.50 feet; 13. thence N 75°58'25" W 274.72 feet; 14. thence along the arc of a curve to the right having a radius of 777.56 feet, and a central angle of 10°01'45" for a distance along the curve of 136.11 feet; the chord of said curve bears N 70°57'32" W a distance of 135.93 feet; 15. thence N 65°56'40" W 288.79 feet; 16. thence along the arc of a curve to the right having a radius of 934.49 feet, and a central angle of 12°43'09" for a distance along the curve of 207.45 feet; the chord of said curve bears N 59°35'05" W a distance of 207.03 feet; 17. thence N 53°13'30" W 363.38 feet to a point on the west line of Lot 26 of said Section 29; thence N 00°30'27" E 619.90 feet along the west line of said Lot 26 to the northwest corner of said Lot 26; thence N 90°00'00" W 65.41 feet to a fence post with a pk-nail in the top and accepted as the southwest corner of Lot 20 of said Section 29; thence N 00°34'26" E 2165.03 feet along the accepted west line of Lots 20, 16, and 8 of said Section 29 to a red plastic cap (P.L.S. 27929); thence N 00°32'35" E 431.30 feet to the southwest corner of a parcel of land described in Book 527, Page 951 in the office of the Garfield County Clerk and Recorder; thence along the southerly boundary of said parcel of land described in Book 527, Page 951 S 89°32'20" E 431.36 feet; thence the following two courses along the Southerly boundary of a parcel of land described in Book 872, Page 768 in the office of the Garfield County Clerk and Recorder: 1. thence S 50°51'48" E 497.50 feet; 2. thence S 57°58'21" E 57.39 feet to a point on the Southerly boundary of a parcel of land described in Book 915, Page 112 in the office of the Garfield County Clerk and Recorder; • thence S 57°58'21" E 305.00 feet along the Southerly boundary of said parcel of land described in Book 915, Page 112; thence S 33°33'03" E 149.53 feet along the Southwesterly boundary of a parcel of land described in Book 621, Page 219 in the office of the Garfield County Clerk and Recorder to a point being the southwesterly corner of said parcel of land described in Book 621, Page 219; thence S 81°36'23" E a distance of 135.95 feet along the southerly boundary of said parcel of land described in Book 621, Page 219 to a point being the southeasterly corner of said parcel of land described in Book 621, Page 219; thence S 81°42'23" E a distance of 302.25 feet along the southerly boundary of a parcel of land described in Book 1540, Page 930 in the office of the Garfield County Clerk and Recorder to a point being the southeasterly corner of said parcel of land described in Book 1540, Page 930; thence the following two courses along the easterly boundary of said parcel of land described in Book 1540, Page 930 1. thence N 05°12'20" E a distance of 149.95 feet to a point; 2. thence 39.08 feet along the arc of a non tangent curve to the right having a radius of 55.23 feet, a central angle of 40°32'42", and the chord bears N 25°29'02" E a distance of 38.27 feet, to a point on the southerly boundary of a parcel of land described in Book 1416, Page 237 in the office of the Garfield County Clerk and Recorder; thence S 81 °42'37" E a distance of 123.19 feet along said southerly boundary of said parcel of land described in Book 1416, Page 237 to a point being the southeasterly corner of said parcel of land described in Book 1416, Page 237; thence N 21 °00'23" W a distance of 884.46 feet along the northeasterly boundary of said parcel of land described in Book 1416, Page 237 to a point on the southerly right-of-way of Garfield County Road 115 (CR115); thence the following seven courses along said southerly CR115 right-of-way: • 2 • • • 1. thence 378.35 feet along the arc of a non tangent curve to the left having a radius of 5348.82 feet, a central angle of 04°03'10", and the chord bears S 77°50'30" E a distance of 378.27 feet; 2. thence S 79°52'05" E a distance of 452.89 feet; 3. thence 311.06 feet along the arc of a tangent curve to the right having a radius of 870.00 feet, a central angle of 20°29'08", and the chord bears S 69°37'31" E a distance of 309.41 feet; 4. thence S 59°22'57" E a distance of 217.30 feet; 5. thence 653.85 feet along the arc of a tangent curve to the right having a radius of 1051.34 feet, a central angle of 35°38'00", and the chord bears S 41°33'57" E a distance of 643.36 feet; 6. thence S 23°44'57" E a distance of 73.66 feet to a point; 7. thence 163.46 feet along the arc of a tangent curve to the left having a radius of 993.47 feet, a central angle of 09°25'38", and the chord bears S 28°27'47" E a distance of 163.28 feet, to a point on the northerly boundary of a parcel of land described in Book 886, Page 329 in the office of the Garfield County Clerk and Recorder; thence along the northerly and westerly boundaries of said parcel of land described in Book 886, Page 329 the following three courses: 1. thence S 82°52'22" W a distance of 323.76 feet; 2. thence S 04°18'35" E a distance of 374.95 feet; 3. thence S 05°36'42" E a distance of 538.91 feet to a point on the westerly boundary of a parcel of land described in Book 736, Page 345 in the office of the Garfield County Clerk and Recorder; thence along the westerly and southerly boundaries of said parcel of land described in Book 736, Page 345 the following five courses: 1. thence S 05°08'09" E a distance of 580.16 feet; 2. thence S 25°54'08" E a distance of 19.09 feet; 3. thence S 50°53'55" E a distance of 27.02 feet; 4. thence S 66°59'35" E a distance of 380.19 feet; 5. thence S 74°53'28" E a distance of 35.87 feet; thence N 58°03'40" E a distance of 625.36 feet along the southerly boundaries of parcels of land described in Book 988, Page 802 and Book 736, Page 345 in the office of the Garfield County Clerk and Recorder to a point on the boundary of a parcel of land described in Book 988, Page 802 in the office of the Garfield County Clerk and Recorder; thence the following six courses around the southerly, easterly and northerly boundaries of said parcel of land described in Book 988, Page 802: 1. thence N 14°45'31" W a distance of 57.78 feet; 2. thence N 00°37'24" W a distance of 148.37 feet; 3. thence N 88°48'28" W a distance of 25.57 feet; 4. thence N 00°01'52" E a distance of 69.06 feet; 5. thence N 89°58'08" W a distance of 101.60 feet; 6. thence N 13°45'40" W a distance of 111.74 feet to a point on the parcel of land described in Book 495, Page 596 in the office of the Garfield County Clerk and Recorder; thence the following four courses along the Southerly Boundary of said parcel of land described in Book 495, Page 596: 1. thence N 59°30'35" E a distance of 216.33 feet; 2. thence S 42°16'19" E a distance of 154.20 feet; 3. thence N 54°10'41" E a distance of 185.54 feet; 4. thence S 89°58'08" E a distance of 327.05 feet to the southeast corner of said parcel of land described in Book 495, Page 596; thence N 00°01'52" E a distance of 114.31 feet along the easterly boundary of said parcel of land described in Book 495, Page 596 to a point on said southerly right-of-way of CR115 ; thence the following two courses along said southerly CR115 right-of-way: 1. thence S 73°02'14" E a distance of 593.48 feet; 2. thence 39.62 feet along the arc of a tangent curve to the right having a radius of 594.56 feet, a central angle of 03°49'04", and the chord bears S 71°07'42" E a distance of 39.61 feet; thence S 00°25'03" E a distance of 928.00 feet; thence S 43°14'55" E a distance of 36.33 feet to a point on the westerly boundary of a parcel of land described in Book 638, Page 941 in the office of the Garfield County Clerk and Recorder; thence S 01°00'28" W a distance of 2326.48 feet along said westerly boundary of said parcel of land described in Book 638, Page 941 to a point on the south line of Section 28 whence the Southwest Corner of Section 28 being a 3 inch County Surveyor Aluminum Cap found in place bears S 88°33'15" E 1495.74 feet; thence S 88°33'15" E a distance of 1084.24 feet along the south line of Section 28 to the South Quarter Corner of Section 28 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence continuing along the south line of Section 28 S 86°11'17" E a distance of 829.99 feet to a point on said southerly right-of-way of CR115; thence the following two courses along said southerly right-of-way of CR115: 411 1. thence 21.25 feet along the arc of a non tangent curve to the left having a radius of 430.00 feet, a central angle of 02°49'54", and the chord bears S 58°28'20" E a distance of 21.25 feet; 2. thence S 59°53'17" E a distance of 155.58 feet; thence leaving said southerly right-of-way of CR115 S 20°15'05" W a distance of 552.69 feet; thence S 19°01'26" E a distance of 1341.54 feet; thence S 26°06'27" E a distance of 780.49 feet to a point on the south line of the NE Quarter of Section 33; thence along said south line of the NE Quarter of Section 33 N 88°27'45" W a distance of 1577.58 feet to the point of beginning; containing 696.0741 acres more or less. a Along with: A parcel of land located in Section 28, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point on the southerly right-of-way of Garfield County Road 115 (CR115) whence the West Quarter corner of said Section 28 bears S 01°09'28" W a distance of 987.24 feet along the West line of said Section 28; thence the following four courses along said southerly CR115 right-of-way: 1. thence S 72°18'24" E a distance of 158.70 feet; 2. thence 154.94 feet along the arc of a tangent curve to the right having a radius of 347.41 feet, a central angle of 25°33'14", and the chord bears S 59°31'47" E a distance of 153.66 feet; 3. thence S 46°45'10" E a distance of 235.64 feet; 4. thence 121.81 feet along the arc of a tangent curve to the left having a radius of 826.12 feet, a central angle of 08°26'53", and the chord bears S 50°58'37" E a distance of 121.70 4 • • feet to a point on the northerly line of a parcel of land described in Book 495, Page 596 in the office of the Garfield County Clerk and Recorder; thence along said northerly line of said parcel of land described in Book 495, Page 596 N 88°09'03" W a distance of 557.11 feet to a point on said West line of said Section 28; thence along said West line of Section 28 N 01°09'28" E a distance of 346.32 feet; to the point of beginning. containing 2.6579 acres more or less. Along with: A parcel of land located in Sections 33 and 34, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point on the northerly right-of-way of Garfield County Road 115 (CR115) whence the Quarter Corner common to said Sections 33 and 34 bears S 25°07'26" E a distance of 325.02; thence N 16°02'33" E a distance of 630.62 feet; thence N 84°55'34" E a distance of 563.88 feet; thence S 10°35'55" E a distance of 486.06 feet to a point on said northerly right-of- way of CR115; thence the following two courses along said CR115 northerly right-of-way: 1. thence 133.48 feet along the arc of a non tangent curve to the left having a radius of 310.00 feet, a central angle of 24°40'14", and the chord bears S 80°08'58" W a distance of 132.45 feet; 2. thence 715.35 feet along the arc of a tangent curve to the right having a radius of 2141.07 feet, a central angle of 19°08'35", and the chord bears S 77°23'09" W a distance of 712.03 feet; to the point of beginning; containing 8.7751 acres more or less. The combined area of the above described three parcels is 707.507 acres more or less 5 • • EXHIBIT B LEGAL DESCRIPTION OF PROPERTY ANNEXABLE TO THE COMMON INTEREST COMMUNITY A parcel of land located in Sections 14, 15, 16, 20, 21, 22, 23, 26, 27, 28, 29, 32, 33, and 34, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at the Northwest Corner of said Section 20 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence S 88°16'08" E 2627.19 feet along the north line of said Section 20 to the North Quarter Corner of said Section 20 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence S 88°15'48" E 2625.91 feet along the north line of said Section 20 to the Northeast Corner of said Section 20 being a 2-1/2 inch GLO Brass Cap found in place said corner also being on the west line of said Section 16; thence N 00°00'14" W 2631.77 feet along the west line of said Section 16 to the East Quarter Corner of Section 17, T. 6 S., R. 88 W., 6th P.M. being a 2-1/2 inch GLO Brass Cap found in place; thence N 00°08'04" W 340.70 feet continuing along the west line of said Section 16 to the West Quarter Corner of said Section 16 being a 2-1/2 inch GLO Brass Cap found in place; thence N 00°01'47" E 1047.99 feet continuing along the west line of said Section 16 to the southwest corner of a parcel of land described in Book 795, Page 980 in the office of the Garfield County Clerk and Recorder; thence the following three courses along the boundary of said parcel described in Book 795, Page 980: 1. thenceN 89°16'47" E 334.10 feet; 2. thence N 03°35'47" E 252.06 feet; 3. thence N 88°27'52" W 349.87 feet to a point on the west line of said Section 16; thence N 00°01'47" E 977.15 feet along the west line of said Section 16 to the Northeast Corner of said Section 17 being a 2-1/2 inch GLO Brass Cap found in place; thence N 00°01'20" W 344.80 feet continuing along the west line of said Section 16 to the Northwest Corner of said Section 16 being a 2-1/2 inch GLO Brass Cap found in place; thence N 89°57'15" E 2703.26 feet along the north line of said Section 16 to the North Quarter Corner of said Section 16 being a 2-1/2 inch GLO Brass Cap found in place; thence N 89°57'09" E 2637.87 feet continuing along the north line of said Section 16 to the Northeast Corner of said Section 16 being a 2-1/2 inch GLO Brass Cap found in place; thence N 89°58'17" E 2638.56 feet along the north line of said Section 15 to the North Quarter Corner of said Section 15 being a 2-1/2 inch GLO Brass Cap found in place; thence S 89°59'36" E 1318.31 feet continuing along the north line of said Section 15 to the west line of the NE1/4NE1/4 of said Section 15 being a 3 -inch Aluminum Cap (L.S. 15710) found in place whence the northeast corner of said Section 15 being a 2-1/2 inch GLO Brass Cap found in place bears S 89°59'36" E 1318.31 feet; thence S 00°00'09" E 1312.36 feet along the west line of the NE1/4NE1/4 of said Section 15 to the southwest corner of the NE1/4NE1/4 of said Section 15 being a 3 -inch Aluminum Cap (L.S. 15710) found in place; thence N 89°55'46" E 1317.67 feet along the south line of the NE1/4NE1/4 of said Section 15 to the southeast corner of the NE1/4NE1/4 of said Section 15 being a 3 -inch Aluminum Cap (L.S. 15710) found in place; thence S 89°58'46" E 1320.64 feet along the north line of the SW1/4NW1/4 of said Section 14 to the northeast corner of the SW1/4NW1/4 of said Section 14 • • being a 3 -inch Aluminum Cap (L.S. 15710) found in place; thence S 00°01'34" W 1312.94 feet along the east line of the SW1/4NW1/4 of said Section 14 to the southeast corner of the SW1/4NW1/4 of said Section 14 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence S 00°01'19" E 2647.58 feet along the east line of the W1/2SW1/4 of said Section 14 to the southeast corner of the W1/2SW1/4 of said Section 14 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence S 89°59'40" E 1318.39 feet along the north line of said Section 23 to the North Quarter Corner of said Section 23 being a 2-1/2 inch GLO Brass Cap found in place; thence S 00°05'23" E 5277.46 feet along the east line of the W1/2 of said Section 23 to the South Quarter Corner of said Section 23 being a 2-1/2 inch GLO Brass Cap found in place; thence S 00°00'49" W 5529.94 feet along the east line of the W1/2 of said Section 26 to the South Quarter Corner of said Section 26 being a 2-1/2 inch GLO Brass Cap found in place; thence S 84°59'30" W 31.37 feet along the south line of said Section 26 to the North Quarter Corner of Section 35, T. 6 S., R. 88 W., 6th P.M., being a 2-1/2 inch GLO Brass Cap found in place; thence S 84°41'15" W 1292.34 feet along the south line of said Section 26 to the southeast corner of Lot 14 of said Section 26 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence N 00°21'37" E 372.49 feet along the east line of said Lot 14, Section 26 to the northeast corner of said Lot 14 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence N 89°53'31" W 1611.72 feet along the north line of said Lot 14 to the northwest corner of said Lot 14 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence S 00°00'14" W 525.17 feet along the west line of said Lot 14 to the Southwest Corner of said Section 26 being a 2-1/2 inch GLO Brass Cap found in place; thence N 89°14'59" W 2647.44 feet along the south line of said Section 27 to the South Quarter Corner of said Section 27 being a 2-1/2 inch GLO Brass Cap found in place; thence N 89°17'11" W 1319.72 feet along the north line of said Section 34 to the northeast corner of the W1/2NW1/4 of said Section 34 being a 2 -inch Aluminum Cap (P.E.L.S. 5933) whence the Northwest Corner of said Section 34 being a 2 -1/2 -inch GLO Brass Cap found in place bears N 89°17'11" W 1319.72 feet; thence S 00°05'58" E a distance of 2353.81 feet to a point on the northerly right-of-way of Garfield County Road 115; thence the following three courses along the northerly right-of-way of said County Road 115: 1. thence 235.33 feet along the arc of a non tangent curve to the right having a radius of 639.07 feet, a central angle of 21°05'53", and the chord bears N 67°17'16" W a distance of 234.00 feet; 2. thence N 56°44'19" W a distance of 393.81 feet; 3. thence 166.52 feet along the arc of a tangent curve to the left having a radius of 310.00 feet, a central angle of 30°46'36", and the chord bears N 72°07'37" W a distance of 164.52 feet; thence departing said Garfield County Road 115 N 10°35'55" W a distance of 486.06 feet; thence S 84°55'34" W a distance of 563.88 feet; thence S 16°02'33" W a distance of 630.62 feet to a point on the northerly right-of-way of said Garfield County Road 115; thence the following thirty courses along the northerly right-of-way of said County Road 115: 1. thence 168.86 feet along the arc of a non tangent curve to the right having a radius of 2141.07 feet, a central angle of 04°31'07", and the chord bears S 89°13'00" W a distance of 168.81 feet; 2. thence 159.12 feet along the arc of a tangent curve to the right having a radius of 170.00 feet, a central angle of 53°37'43", and the chord bears N 61°42'35" W a distance of 153.37 feet; • • • 3. thence 460.26 feet along the arc of a tangent curve to the right having a radius of 699.53 feet, a central angle of 37°41'54", and the chord bears N 16°02'47" W a distance of 452.01 feet; 4. thence N 02°48'10" E a distance of 238.01 feet; 5. thence 429.79 feet along the arc of a tangent curve to the left having a radius of 912.82 feet, a central angle of 26°58'38", and the chord bears N 10°41'09" W a distance of 425.83 feet; 6. thence N 24° 10'27" W a distance of 644.62 feet; 7. thence 504.76 feet along the arc of a tangent curve to the left having a radius of 809.79 feet, a central angle of 35°4T49", and the chord bears N 42°01'52" W a distance of 496.63 feet; 8. thence N 59°53'17" W a distance of 459.39 feet; 9. thence 167.17 feet along the arc of a tangent curve to the right having a radius of 370.00 feet, a central angle of 25°53'11", and the chord bears N 46°56'42" W a distance of 165.75 feet; 10. thence N 34°00'06" W a distance of 1152.91 feet; 11. thence 1191.15 feet along the arc of a tangent curve to the right having a radius of 2377.42 feet, a central angle of 28°42'24", and the chord bears N 19°38'54" W a distance of 1178.73 feet; 12. thence 245.56 feet along the arc of a tangent curve to the left having a radius of 430.00 feet, a central angle of 32°43'14", and the chord bears N 21°39'19" W a distance of 242.24 feet; 13. thence 376.29 feet along the arc of a tangent curve to the right having a radius of 1361.75 feet, a central angle of 15°49'57", and the chord bears N 30°05'57" W a distance of 375.10 feet; 14. thence N 22°10'58" W a distance of 307.62 feet; 15. thence 580.97 feet along the arc of a tangent curve to the left having a radius of 654.56 feet, a central angle of 50°51'15", and the chord bears N 47°36'36" W a distance of 562.09 feet; 16. thence N 73°02'14" W a distance of 636.67 feet; 17. thence 351.46 feet along the arc of a tangent curve to the right having a radius of 766.12 feet, a central angle of 26°17'03", and the chord bears N 59°53'42" W a distance of 348.38 feet; 18. thence N 46°45'10" W a distance of 235.64 feet; 19. thence 181.70 feet along the arc of a tangent curve to the left having a radius of 407.41 feet, a central angle of 25°33'14", and the chord bears N 59°31'47" W a distance of 180.20 feet; 20. thence N 72°18'24" W a distance of 432.60 feet; 21. thence 264.71 feet along the arc of a tangent curve to the right having a radius of 420.00 feet, a central angle of 36°06'40", and the chord bears N 54°15'04" W a distance of 260.35 feet; 22. thence 202.78 feet along the arc of a tangent curve to the right having a radius of 933.47 feet, a central angle of 12°26'47", and the chord bears N 29°58'21" W a distance of 202.38 feet; 23. thence N 23°44'57" W a distance of 73.66 feet; • 24. thence 691.16 feet along the arc of a tangent curve to the left having a radius of 1111.34 feet, a central angle of 35°38'00", and the chord bears N 41°33'57" W a distance of 680.07 feet; 25. thence N 59°2T57" W a distance of 217.30 feet; 26. thence 332.51 feet along the arc of a tangent curve to the left having a radius of 930.00 feet, a central angle of 20°29'08", and the chord bears N 69°37'31" W a distance of 330.75 feet; 27. thence N 79°52'05" W a distance of 452.89 feet; 28. thence 416.54 feet along the arc of a tangent curve to the right having a radius of 5288.82 feet, a central angle of 04°30'45", and the chord bears N 77°36'43" W a distance of 416.43 feet; 29. thence 250.87 feet along the arc of a curve to the right having a radius of 5288.82 feet, and a central angle of 02°43'04", and the chord bears N 73°59'48" W a distance of 250.84 feet; 30. thence N 72°38'16" W 1244.87 feet to a point on the accepted east line of Lot 4 of said Section 20 whence the southeast corner of a parcel of land recorded under reception number 467225 in the office of the Garfield County Clerk and Recorder being a 2 -inch Aluminum Cap (P.E.L.S. 5933) and accepted as a point on the east line of said Lot 4 bears S 01°51'02" W 9.41 feet; thence N 01°51'02" E 490.79 feet along the accepted east line of said Lot 4 to the northeast corner of said Lot 4 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence N 88°18'52" W • 1429.59 feet along the north line of said Lot 4 and Lot 3 of said Section 20 to the northwest corner of said Lot 3 being a 2 -inch Aluminum Cap (P.E.L.S. 5933) whence the Southwest Corner of said Lot 20 being a 2-1/2 inch Aluminum Cap (P.L.S. 27929) found in place bears S 00°06'31" E 1008.11 feet; thence N 00°06'31" W 1630.93 feet along the west line of said Section 20 to the West Quarter Corner of said Section 20 being a 2 -inch Aluminum Cap (P.E.L.S. 5933); thence N 00°04'12" E 2632.88 feet along the west line of said Section 20 to the Northwest Corner of said Section 20 being the POINT OF BEGINNING containing 5198.85 acres more or less, prior to the following excepted parcel: • EXCEPTING THE FOLLOWING FIVE PARCELS: Section 15 Exception: A parcel of land being the Northwest Quarter of the Southwest Quarter of Section 15, Township 6 South Range 88 West, of the Sixth Principal meridian, said parcel being further described as follows: Beginning at the West Quarter corner of said Section 15 being a 2-1/2 inch GLO Brass Cap found in place, thence N 89°51'07" E 1323.59 feet along the North line of the NW1/4SW1/4 of said Section 15 to the northeast corner of the NW1/4SW1/4 of said Section 15; thence S 00°01'49" E 1540.50 feet along the East line of the NW1/4SW1/4 of said Section 15 to the Southeast Corner of the NW1/4SW1/4; thence S 89°58'25" W 1323.59 feet along the south line of the NW1/4SW1/4 of said Section 15 to the southwest corner of the NW1/4SW1/4 of said section 15; whence the Southwest Corner of said Section 15 being a 2-1/2 inch GLO Brass Cap found in place bears S 00°01'49" E 1537.70 feet; thence N 00°01'49" W 1537.70 feet along the • west line of the NW1/4SW1/4 of said section 15 to the northwest corner of the NW1/4SW1/4 of said section 15 being the POINT OF BEGINNING containing 46.76 acres more or less. Club Parcel A Exception: A parcel of land located in Sections 22 and 27, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the corner common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 16°33'46" W a distance of 2869.89 feet; thence N 24°03'56" E a distance of 704.78 feet; thence N 27°44'26" W a distance of 146.44 feet; thence 277.79 feet along the arc of a non tangent curve to the left having a radius of 238.30 feet, a central angle of 66°47'27", and the chord bears N 05°12'14" E a distance of 262.33 feet; thence 75.72 feet along the arc of a tangent curve to the left having a radius of 1080.95 feet, a central angle of 04°00'50", and the chord bears N 30°11'54" W a distance of 75.71 feet; thence N 59°21'42" E a distance of 121.50 feet; thence N 21°55'31" W a distance of 343.96 feet; thence N 53°33'07" W a distance of 283.51 feet; thence N 23°51'37" W a distance of 66.58 feet; thence N 00°15'41" W a distance of 201.29 feet; thence N 70°15'59" W a distance of 131.21 feet; thence 98.12 feet along the arc of a non tangent curve to the right having a radius of 388.80 feet, a central angle of 14°27'33", and the chord bears N 30°23'53" E a distance of 97.86 feet; thence N 37°37'40" E a distance of 102.50 feet; thence 435.35 feet along the arc of a tangent curve to the left having a radius of 472.00 feet, a central angle of 52°50'48", and the chord bears N 11°12'15" E a distance of 420.08 feet; thence N 15°13'09" W a distance of 270.92 feet; thence 257.41 feet along the arc of a tangent curve to the right having a radius of 850.00 feet, a central angle of 17°21'03", and the chord bears N 06°32'37" W a distance of 256.42 feet; thence 49.23 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 112°49'36", and the chord bears N 58°32'43" E a distance of 41.65 feet; thence 68.29 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 35°53'49", and the chord bears S 47°05'34" E a distance of 67.18 feet; thence 238.84 feet along the arc of a tangent curve to the left having a radius of 233.30 feet, a central angle of 58°39'27", and the chord bears S 58°28'23" E a distance of 228.55 feet; thence S 87°48'07" E a distance of 53.67 feet; thence 50.92 feet along the arc of a tangent curve to the right having a radius of 225.00 feet, a central angle of 12°58'05", and the chord bears S 81°19'04" E a distance of 50.82 feet; thence S 74°50'02" E a distance of 12.21 feet; thence 78.47 feet along the arc of a tangent curve to the right having a radius of 166.00 feet, a central angle of 27°05'00", and the chord bears S 61°17'32" E a distance of 77.74 feet; thence S 33°11'51" W a distance of 33.66 feet; thence S 23°13'42" E a distance of 263.55 feet; thence S 03°15'29" E a distance of 228.41 feet; thence S 47°10'57" E a distance of 425.45 feet; thence S 28°23'01" E a distance of 280.60 feet; thence S 27°30'02" E a distance of 560.26 feet; thence S 23°04'41" E a distance of 239.14 feet; thence S 21°36'57" E a distance of 592.55 feet; thence S 13°37'50" W a distance of 178.93 feet; thence S 85°38'04" W a distance of 342.22 feet; thence N 66°28'44" W a distance of 262.01 feet; thence S 11°51'13" W a distance of 319.84 feet; thence S 33°53'10" E a distance of 171.07 feet; thence 274.78 feet along the arc of a non tangent curve to the left having a radius of 233.30 feet, a central angle of 67°28'58", and the chord bears S 18°43'59" W a distance of 259.17 feet; thence S 15°00'30" E a distance of 86.40 feet; thence 236.13 feet along the arc of a tangent curve to the right having a radius of 183.30 feet, a central angle of 73°48'35", and the chord bears S 21°53'48" W a distance of 220.14 feet; thence S 58°48'06" W a distance of 21.20 feet; thence 34.15 feet along the arc of a tangent curve 5 • to the right having a radius of 25.00 feet, a central angle of 78°16'22", and the chord bears N 82°03'43" W a distance of 31.56 feet; thence 60.22 feet along the arc of a tangent curve to the left having a radius of 221.00 feet, a central angle of 15°36'42", and the chord bears N 50°43'53" W a distance of 60.03 feet; thence N 58°32'15" W a distance of 107.70 feet; thence 179.84 feet along the arc of a tangent curve to the right having a radius of 268.00 feet, a central angle of 38°26'51", and the chord bears N 39°18'49" W a distance of 176.48 feet; thence 172.91 feet along the arc of a tangent curve to the left having a radius of 238.00 feet, a central angle of 41°37'30", and the chord bears N 40°54'09" W a distance of 169.13 feet; thence 118.71 feet along the arc of a tangent curve to the right having a radius of 268.00 feet, a central angle of 25°22'47", and the chord bears N 49°01'30" W a distance of 117.75 feet; thence 270.26 feet along the arc of a tangent curve to the left having a radius of 253.00 feet, a central angle of 61°12'18", and the chord bears N 66°56'16" W a distance of 257.59 feet to the point of beginning; containing 61.9080 acres more or less. Club Parcel B Exception: A parcel of land located in Section 22, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the corner common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 07°02'56" W a distance of 5573.72 feet; thence S 78°05'34" W a distance of 110.10 feet; thence 114.02 feet along the arc of a non tangent curve to the left having a radius of 323.30 feet, a central angle of 20°12'28", and the chord bears N 06°44'08" W a distance of 113.43 feet; • thence N 16°50'22" W a distance of 79.64 feet; thence 182.81 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 96°05'44", and the chord bears N 31°12'30" E a distance of 162.13 feet; thence 45.11 feet along the arc of a non tangent curve to the right having a radius of 25.00 feet, a central angle of 103°23'15", and the chord bears S 49°03'00" E a distance of 39.24 feet; thence 281.89 feet along the arc of a tangent curve to the left having a radius of 910.00 feet, a central angle of 17°44'55", and the chord bears S 06°13'49" E a distance of 280.77 feet to the point of beginning; containing 0.7439 acres more or less. • Club Parcel C Exception: A parcel of land located in Sections 21, 22, 27 and 28 Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the corner common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 17°54'09" W a distance of 2230.97 feet; thence S 67°49'37" W a distance of 422.10 feet; thence 317.97 feet along the arc of a non tangent curve to the left having a radius of 250.00 feet, a central angle of 72°52'23", and the chord bears N 52°57'46" W a distance of 296.97 feet; thence 0.07 feet along the arc of a non tangent curve to the left having a radius of 250.35 feet, a central angle of 00°00'56", and the chord bears N 89°23'57" W a distance of 0.07 feet; thence N 89°23'57" W a distance of 222.04 feet; thence 423.37 feet along the arc of a tangent curve to the right having a radius of 214.35 feet, a central angle of 113°09'59", and the chord bears N 32°48'58" W a distance of 357.83 feet; thence N 23°46'02" E a distance of 108.52 feet; thence 115.21 feet along the arc of a tangent curve to the left having a radius of 277.00 feet, a central angle of 23°49'47", and the chord bears N 11°51'08" E a distance of 114.38 feet; thence N 6 00°03'46" W a distance of 13.14 feet; thence 180.73 feet along the arc of a tangent curve to the left having a radius of 435.00 feet, a central angle of 23°48'16", and the chord bears N 11°57'54" W a distance of 179.43 feet; thence N 89°34'38" E a distance of 348.84 feet; thence N 30°03'00" E a distance of 223.48 feet; thence N 27°02'33" W a distance of 127.78 feet; thence S 78°07'15" W a distance of 317.21 feet; thence 385.41 feet along the arc of a non tangent curve to the right having a radius of 730.00 feet, a central angle of 30°15'00", and the chord bears N 44°30'05" W a distance of 380.95 feet; thence N 60°37'25" E a distance of 223.04 feet; thence N 50°29'46" W a distance of 201.56 feet; thence N 00°20'46" E a distance of 538.01 feet; thence N 06°31'58" W a distance of 325.27 feet; thence N 47°45'44" W a distance of 160.47 feet; thence 61.13 feet along the arc of a non tangent curve to the left having a radius of 325.00 feet, a central angle of 10°46'36", and the chord bears N 04°28'51" W a distance of 61.04 feet; thence N 09°52'10" W a distance of 248.52 feet; thence 158.30 feet along the arc of a tangent curve to the left having a radius of 625.00 feet, a central angle of 14°30'43", and the chord bears N 17°07'31" W a distance of 157.88 feet; thence N 24°22'52" W a distance of 178.52 feet; thence N 23°47'35" W a distance of 162.78 feet; thence 160.07 feet along the arc of a non tangent curve to the right having a radius of 275.00 feet, a central angle of 33°21'03", and the chord bears N 01°23'09" W a distance of 157.82 feet; thence N 15°1722" E a distance of 163.59 feet; thence 433.06 feet along the arc of a tangent curve to the left having a radius of 287.00 feet, a central angle of 86°27'15", and the chord bears N 27°56'16" W a distance of 393.13 feet; thence N 49°49'56" E a distance of 186.06 feet; thence N 40°10'04" W a distance of 155.40 feet; thence N 60°25'32" W a distance of 209.16 feet; thence N 28°11'33" W a distance of 559.06 feet; thence N 25°25'36" W a distance of 539.94 feet; thence N 21°07'26" E a distance of 197.15 feet; thence N 82°52'40" W a distance of 99.96 • feet; thence N 82°52'40" W a distance of 76.55 feet; thence N 82°52'40" W a distance of 176.51 feet; thence S 23°19'25" W a distance of 416.11 feet; thence S 10°57'55" W a distance of 320.15 feet; thence N 66°23'08" W a distance of 261.56 feet; thence N 15°00'55" W a distance of 232.79 feet; thence N 15°00'55" W a distance of 342.05 feet; thence N 23°30'15" E a distance of 68.80 feet; thence N 23°30'15" E a distance of 208.77 feet; thence N 23°30'15" E a distance of 231.38 feet; thence N 23°30'15" E a distance of 367.50 feet; thence 88.61 feet along the arc of a non tangent curve to the left having a radius of 1030.00 feet, a central angle of 04°55'45", and the chord bears N 75°36'47" E a distance of 88.59 feet; thence N 73°08'54" E a distance of 83.54 feet; thence 277.40 feet along the arc of a tangent curve to the left having a radius of 780.00 feet, a central angle of 20°22'37", and the chord bears N 62°57'36" E a distance of 275.94 feet; thence 103.67 feet along the arc of a tangent curve to the right having a radius of 178.30 feet, a central angle of 33°18'46", and the chord bears N 69°25'40" E a distance of 102.21 feet; thence 256.72 feet along the arc of a tangent curve to the left having a radius of 730.00 feet, a central angle of 20°08'58", and the chord bears N 76°00'34" E a distance of 255.40 feet; thence 205.06 feet along the arc of a tangent curve to the right having a radius of 178.30 feet, a central angle of 65°53'41", and the chord bears S 81°07'05" E a distance of 193.94 feet; thence S 48°10'14" E a distance of 246.91 feet; thence 91.35 feet along the arc of a tangent curve to the right having a radius of 170.00 feet, a central angle of 30°47'17", and the chord bears S 32°46'36" E a distance of 90.26 feet; thence S 17°22'57" E a distance of 52.13 feet; thence S 09°47'41" W a distance of 76.34 feet; thence S 23°04'06" E a distance of 554.75 feet; thence S 10°13'44" E a distance of 265.53 feet; thence S 39°14'54" E a distance of 142.99 feet; thence S 23°30'41" E a distance of 371.48 feet; thence S 09°30'57" E a distance of 83.46 feet; thence 63.28 feet along the arc of a non tangent curve to the right having a radius of 175.00 feet, a central angle of 20°43'04", and the chord bears S 40°29'20" E a distance of 62.93 feet; thence S 30°07'48" E a distance of 194.17 feet; thence S 21°06'00" E a distance of 606.86 feet; thence N 42°31'17" E a distance of 663.00 feet; thence S 87°32'40" E a distance of 69.64 feet; thence 86.64 feet along the arc of a tangent curve to the right having a radius of 120.00 feet, a central angle of 41°22'04", and the chord bears S 66°51'38" E a distance of 84.77 feet; thence S 46°10'36" E a distance of 127.37 feet; thence 385.39 feet along the arc of a tangent curve to the right having a radius of 410.00 feet, a central angle of 53°51'24", and the chord bears S 19°14'54" E a distance of 371.36 feet; thence S 07°40'48" W a distance of 208.78 feet; thence 35.15 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 80°34'01", and the chord bears S 47°57'48" W a distance of 32.33 feet; thence 129.96 feet along the arc of a tangent curve to the left having a radius of 159.00 feet, a central angle of 46°49'50", and the chord bears S 64°49'53" W a distance of 126.37 feet; thence 161.66 feet along the arc of a tangent curve to the left having a radius of 159.00 feet, a central angle of 58°15'20", and the chord bears S 12°17'18" W a distance of 154.79 feet; thence S 16°5022" E a distance of 79.64 feet; thence 96.39 feet along the arc of a tangent curve to the right having a radius of 273.30 feet, a central angle of 20°12'28", and the chord bears S 06°44'08" E a distance of 95.89 feet; thence 69.72 feet along the arc of a tangent curve to the right having a radius of 273.30 feet, a central angle of 14°36'59", and the chord bears S 10°40'35" W a distance of 69.53 feet; thence S 17°59'04" W a distance of 52.85 feet; thence 411.21 feet along the arc of a tangent curve to the right having a radius of 343.10 feet, a central angle of 68°40'14", and the chord bears S 52°19'11" W a distance of 387.04 feet; thence 68.14 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 35°49'13", and the chord bears N 75°26'05" W a distance of 67.04 feet; thence N • 57°31'29" W a distance of 105.67 feet; thence 158.53 feet along the arc of a tangent curve to the left having a radius of 323.30 feet, a central angle of 28°05'42", and the chord bears N 71°34'20" W a distance of 156.95 feet; thence S 04°22'49" W a distance of 50.00 feet; thence 134.01 feet along the arc of a non tangent curve to the right having a radius of 273.30 feet, a central angle of 28°05'42", and the chord bears S 71°34'20" E a distance of 132.67 feet; thence S 57°31'29" E a distance of 105.67 feet; thence N 86°43'53" W a distance of 130.68 feet; thence S 43°09'11" W a distance of 111.24 feet; thence S 35°04'24" E a distance of 129.43 feet; thence S 59°03'57" E a distance of 304.37 feet; thence N 52°35'12" E a distance of 102.28 feet; thence N 52°35'12" E a distance of 209.48 feet; thence N 71°38'02" E a distance of 155.41 feet; thence N 26°51'05" E a distance of 282.77 feet; thence S 15°13'09" E a distance of 18.10 feet; thence 380.01 feet along the arc of a tangent curve to the right having a radius of 412.00 feet, a central angle of 52°50'48", and the chord bears S 11°12'15" W a distance of 366.68 feet; thence S 37°37'40" W a distance of 102.50 feet; thence 393.74 feet along the arc of a tangent curve to the left having a radius of 448.80 feet, a central angle of 50°16'02", and the chord bears S 12°29°39" W a distance of 381.24 feet; thence 2.16 feet along the arc of a tangent curve to the left having a radius of 785.71 feet, a central angle of 00°09'28", and the chord bears S 12°43'07" E a distance of 2.16 feet; thence 37.73 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 86°27'51", and the chord bears S 30°26'05" W a distance of 34.25 feet; thence S 73°40'00" W a distance of 11.18 feet; thence 96.92 feet along the arc of a tangent curve to the left having a radius of 145.00 feet, a central angle of 38°17'50", and the chord bears S 54°31'05" W a distance of 95.13 feet; thence S 35°2T10" W a distance of 73.88 feet; thence 55.50 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 29°10'21", and the chord bears S 49°57'21" W a distance of 54.90 feet; thence S •64°3T31" W a distance of 68.12 feet; thence S 64°32'31" W a distance of 16.91 feet; 8 thence 226.12 feet along the arc of a tangent curve to the left having a radius of 323.30 feet, a central angle of 40°04'26", and the chord bears S 44°30'18" W a distance of 221.54 feet; thence 205.70 feet along the arc of a tangent curve to the right having a radius of 273.00 feet, a central angle of 43°10'19", and the chord bears S 46°03'15" W a distance of 200.87 feet; thence S 67°38'24" W a distance of 7.32 feet; thence S 67°3824" W a distance of 16.71 feet; thence 27.69 feet along the arc of a tangent curve to the right having a radius of 30.00 feet, a central angle of 52°53'09", and the chord bears N 85°55'01" W a distance of 26.72 feet; thence 298.09 feet along the arc of a non tangent curve to the left having a radius of 60.00 feet, a central angle of 284°39'22", and the chord bears S 21°48'08" E a distance of 73.34 feet; thence 27.11 feet along the arc of a non tangent curve to the right having a radius of 30.00 feet, a central angle of 51°46'13", and the chord bears N 41°45'18" E a distance of 26.19 feet; thence N 67°38'24" E a distance of 25.10 feet; thence 30.37 feet along the arc of a tangent curve to the left having a radius of 323.00 feet, a central angle of 05°23'12", and the chord bears N 64°56'48" E a distance of 30.36 feet; thence 213.01 feet along the arc of a tangent curve to the left having a radius of 323.00 feet, a central angle of 37°47'06", and the chord bears N 43°21'39" E a distance of 209.17 feet; thence 191.15 feet along the arc of a tangent curve to the right having a radius of 273.30 feet, a central angle of 40°04'26", and the chord bears N 44°30'18" E a distance of 187.28 feet; thence N 64°32'31" E a distance of 42.52 feet; thence N 64°32'31" E a distance of 42.52 feet; thence 80.96 feet along the arc of a tangent curve to the left having a radius of 159.00 feet, a central angle of 29°10'21", and the chord bears N 49°57'21" E a distance of 80.08 feet; thence N 35°22'10" E a distance of 73.88 feet; thence 63.50 feet along the arc of a tangent curve to the right having a radius of 95.00 feet, a central angle of 38°17'50", and the chord bears N 54°31'05" E a distance of 62.32 feet; thence N 73°40'00" E a distance of 11.18 feet; thence 37.73 feet along the arc of a non tangent curve to the right having a radius of 25.00 feet, a central angle of 86°27'51", and the chord bears S 63°06'08" E a distance of 34.25 feet; thence 391.91 feet along the arc of a non tangent curve to the left having a radius of 785.71 feet, a central angle of 28°34'44", and the chord bears S 34°09'31" E a distance of 387.86 feet; thence 0.48 feet along the arc of a tangent curve to the left having a radius of 785.71 feet, a central angle of 00°02'06", and the chord bears S 48°27'56" E a distance of 0.48 feet; thence 0.03 feet along the arc of a tangent curve to the right having a radius of 1020.95 feet, a central angle of 00°00'06", and the chord bears S 48°28'56" E a distance of 0.03 feet; thence 85.69 feet along the arc of a tangent curve to the right having a radius of 1020.95 feet, a central angle of 04°48'33", and the chord bears S 46°04'36" E a distance of 85.67 feet; thence 275.85 feet along the arc of a tangent curve to the right having a radius of 1020.95 feet, a central angle of 15°28'50", and the chord bears S 35°55'55" E a distance of 275.01 feet; thence 252.74 feet along the arc of a tangent curve to the right having a radius of 178.30 feet, a central angle of 81°12'59", and the chord bears S 12°25'00" W a distance of 232.10 feet; thence S 53°01'29" W a distance of 184.98 feet; thence 82.00 feet along the arc of a tangent curve to the left having a radius of 565.00 feet, a central angle of 08°18'56", and the chord bears S 48°52'01" W a distance of 81.93 feet; thence 31.83 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 72°57'26", and the chord bears S 81°11'16" W a distance of 29.73 feet; thence 78.88 feet along the arc of a tangent curve to the left having a radius of 119.00 feet, a central angle of 37°58'41", and the chord bears N 81°19'22" W a distance of 77.44 feet; thence 16.08 feet along the arc of a tangent curve to the right having a radius of 69.00 feet, a central angle of 13°20'57", and the chord bears S 86°21'47" W a distance of 16.04 feet; thence N 60°58'25" E a distance of 231.46 feet; thence N 11°57'09" E a distance of 74.57 feet; thence N 9 • 60°37'09" W a distance of 538.88 feet; thence S 51°15'08" W a distance of 82.72 feet; thence S 09°06'34" E a distance of 696.62 feet; thence S 84°16'03" E a distance of 173.58 feet; thence 21.94 feet along the arc of a non tangent curve to the left having a radius of 565.00 feet, a central angle of 02°13'29", and the chord bears S 08°42'02" W a distance of 21.94 feet; thence 94.05 feet along the arc of a tangent curve to the right having a radius of 193.00 feet, a central angle of 27°55'16", and the chord bears S 21°32'55" W a distance of 93.12 feet; thence S 35°30'33" W a distance of 85.21 feet; thence 31.89 feet along the arc of a tangent curve to the left having a radius of 164.00 feet, a central angle of 11°08'32", and the chord bears S 29°56'17" W a distance of 31.84 feet; thence S 59°42'50" W a distance of 51.55 feet; thence S 87°20'16" W a distance of 72.13 feet; thence S 27°40'22" W a distance of 344.05 feet; thence S 27°4022" W a distance of 162.75 feet; thence N 80°51'32" E a distance of 445.39 feet; thence N 25°16'42" W a distance of 92.29 feet; thence N 16°26'12" E a distance of 58.56 feet; thence 49.28 feet along the arc of a non tangent curve to the left having a radius of 74.00 feet, a central angle of 38°09'22", and the chord bears N 57°39'13" E a distance of 48.37 feet; thence 30.04 feet along the arc of a tangent curve to the right having a radius of 30.00 feet, a central angle of 57°22'22", and the chord bears N 67°15'43" E a distance of 28.80 feet; thence 100.78 feet along the arc of a tangent curve to the left having a radius of 164.00 feet, a central angle of 35°12'37", and the chord bears N 78°20'35" E a distance of 99.21 feet; thence N 60°44'17" E a distance of 15.51 feet; thence N 60°44'17" E a distance of 26.50 feet; thence 279.34 feet along the arc of a tangent curve to the right having a radius of 193.00 feet, a central angle of 82°55'37", and the chord bears S 77°47'55" E a distance of 255.59 feet; thence 145.29 feet along the arc of a tangent curve to the left having a radius of 328.00 feet, a central angle of • 25°22'47", and the chord bears S 49°01'30" E a distance of 144.11 feet; thence 129.32 feet along the arc of a tangent curve to the right having a radius of 178.00 feet, a central angle of 41°37'30", and the chord bears S 40°54'09" E a distance of 126.49 feet; thence 220.10 feet along the arc of a tangent curve to the left having a radius of 328.00 feet, a central angle of 38°26'51", and the chord bears S 39°18'49" E a distance of 215.99 feet; thence S 58°32'15" E a distance of 107.70 feet; thence 359.40 feet along the arc of a tangent curve to the right having a radius of 161.00 feet, a central angle of 127°54'06", and the chord bears S 05°24'48" W a distance of 289.29 feet; thence S 69°21'51" W a distance of 71.42 feet; thence 30.32 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 69°29'36", and the chord bears N 75°53'21" W a distance of 28.50 feet; thence 160.78 feet along the arc of a tangent curve to the left having a radius of 116.00 feet, a central angle of 79°24'49", and the chord bears N 80°50'57" W a distance of 148.22 feet; thence N 16°49'57" W a distance of 109.44 feet; thence N 77°14'53" W a distance of 452.71 feet; to the point of beginning; containing 176.3843 acres more or less. • Club Parcel D Exception: A parcel of land located in Sections 21 and 28 Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the corner common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 14°47'46" E a distance of 3405.59 feet; thence N 61°56'21" W a distance of 234.03 feet; thence S 81°46'07" W a distance of 165.02 feet; thence 82.76 feet along the arc of a non tangent curve to the right having a radius of 525.00 feet, a central angle of 09°01'57", and the chord bears N 21°50'59" W a distance of 82.68 feet; thence N 17°20'00" W a distance of 125.84 feet; 10 thence 135.21 feet along the arc of a tangent curve to the left having a radius of 850.00 feet, a central angle of 09°06'52", and the chord bears N 21°53'26" W a distance of 135.07 feet; thence N 11°59'46" E a distance of 226.02 feet; thence N 36°48'43" W a distance of 632.74 feet; thence N 05°17'11" W a distance of 241.12 feet; thence N 83°57'36" E a distance of 385.26 feet; thence N 27°49'50" W a distance of 623.11 feet; thence N 52°28'42" W a distance of 551.00 feet; thence N 75°35'20" W a distance of 196.96 feet; thence 158.78 feet along the arc of a non tangent curve to the left having a radius of 175.00 feet, a central angle of 51°59'06", and the chord bears N 48°21'21" W a distance of 153.39 feet; thence N 74°20'54" W a distance of 97.12 feet; thence 89.53 feet along the arc of a tangent curve to the right having a radius of 125.00 feet, a central angle of 41°02'08", and the chord bears N 53°49'50" W a distance of 87.62 feet; thence 46.86 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 107°24'02", and the chord bears N 20°23'15" E a distance of 40.30 feet; thence 98.45 feet along the arc of a tangent curve to the right having a radius of 184.00 feet, a central angle of 30°39'25", and the chord bears N 89°24'59" E a distance of 97.28 feet; thence 20.05 feet along the arc of a tangent curve to the left having a radius of 341.00 feet, a central angle of 03°22'06", and the chord bears S 76°56'22" E a distance of 20.04 feet; thence S 56°57'00" E a distance of 55.33 feet; thence S 01°31'00" W a distance of 58.52 feet; thence N 89°48'00" E a distance of 233.10 feet; thence N 26°34'00" E a distance of 104.77 feet; thence S 76°24'47" E a distance of 19.39 feet; thence S 53°23'00" E a distance of 97.92 feet; thence S 13°56'00" W a distance of 39.87 feet; thence S 58°15'00" E a distance of 140.63 feet; thence S 66°55'57" E a distance of 121.84 feet; thence S 82°18'37" E a distance of 149.68 feet; thence S 86°55'23" E a distance of 230.20 feet; thence S 40°47'44" E a distance of 170.85 feet; thence S • 40°47'44" E a distance of 201.81 feet; thence S 30°28'47" E a distance of 620.96 feet; thence N 89°17'10" E a distance of 114.41 feet; thence S 09°5T10" E a distance of 175.46 feet; thence 142.56 feet along the arc of a tangent curve to the right having a radius of 275.00 feet, a central angle of 29°42'10", and the chord bears S 04°58'55" W a distance of 140.97 feet; thence 30.72 feet along the arc of a tangent curve to the left having a radius of 425.00 feet, a central angle of 04°08'28", and the chord bears S 17°45'46" W a distance of 30.71 feet; thence S 68°07'03" W a distance of 246.45 feet; thence S 14°2526" E a distance of 292.28 feet; thence S 01°05'21" W a distance of 212.99 feet; thence S 39°56'11" E a distance of 186.62 feet; thence 47.98 feet along the arc of a non tangent curve to the left having a radius of 425.00 feet, a central angle of 06°28'06", and the chord bears S 09°43'59" W a distance of 47.95 feet; thence S 06°29'56" W a distance of 133.59 feet; thence 220.40 feet along the arc of a tangent curve to the left having a radius of 425.00 feet, a central angle of 29°42'48", and the chord bears S 08°2128" E a distance of 217.94 feet; thence S 77°42'41" W a distance of 149.15 feet; to the point of beginning; containing 35.1485 acres more or less. • The total area minus the five exception parcels is 4,877.91 acres more or less. ALONG WITH: A parcel of land located in Sections 33 and 34, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at the Quarter Corner common to said Sections 33 and 34 being a 2 -inch Aluminum Cap (P.E.L.S 5933) thence N 88°2745" W a distance of 551.40 feet along the south line of the NE1/4 of said Section 33 to a point on the southerly right-of-way of Garfield County Road 114; 11 • • • thence along the southerly right-of-way of said Garfield County Road 114 the following two courses: 1. thence N 40°27'03" E a distance of 70.18 feet; 2. thence 388.21 feet along the arc of a tangent curve to the right having a radius of 470.00 feet, a central angle of 47°19'32", and the chord bears N 64°06'49" E a distance of 377.27 feet to a point on the southerly right-of-way of Garfield County Road 115; thence the following four courses along the northerly right-of-way of said Garfield County Road 115: 1. thence 766.87 feet along the arc of a tangent curve to the left having a radius of 2201.07 feet, a central angle of 19°57'44", and the chord bears N 77°47'43" E a distance of 763.00 feet; 2. thence 241.93 feet along the arc of a tangent curve to the right having a radius of 250.00 feet, a central angle of 55°26'50", and the chord bears S 84°27'44" E a distance of 232.60 feet; 3. thence S 56°44'19" E a distance of 393.81 feet; 4. thence 270.44 feet along the arc of a tangent curve to the left having a radius of 699.07 feet, a central angle of 22°09'54", and the chord bears S 67°49'16" E a distance of 268.75 feet to a point on the east line of the W1/2NW1/4 of said Section 34; thence S 00°05'58" E a distance of 50.95 feet along the east line of the W1/2NW1/4 of said Section 34 to the southeast corner of the W1/2NW1/4 of said Section 34 being a 2 -inch aluminum cap (P.E.L.S 5933); thence S 89°51'39" W a distance of 1389.27 feet along the south line of the W1/2NW1/4 of said Section 34 to the point of beginning; containing 10.9573 acres more or less. The combined area of the above described two parcels and excluding the five exception parcels is 4,888.86 acres more or less. 12 • • EXHIBIT C LEGAL DESCRIPTION OF CLUB PROPERTY Club Parcel A - Legal Description: A parcel of land located in Sections 22 and 27, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the comer common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 16°33'46" W a distance of 2869.89 feet; thence N 24°03'56" E a distance of 704.78 feet; thence N 27°44'26" W a distance of 146.44 feet; thence 277.79 feet along the arc of a non tangent curve to the left having a radius of 238.30 feet, a central angle of 66°47'27", and the chord bears N 05°12'14" E a distance of 262.33 feet; thence 75.72 feet along the arc of a tangent curve to the left having a radius of 1080.95 feet, a central angle of 04°00'50", and the chord bears N 30°11'54" W a distance of 75.71 feet; thence N 59°21'42" E a distance of 121.50 feet; thence N 21°55'31" W a distance of 343.96 feet; thence N 53°33'07" W a distance of 283.51 feet; thence N 23°51'37" W a distance of 66.58 feet; thence N 00°15'41" W a distance of 201.29 feet; thence N 70°15'59" W a distance of 131.21 feet; thence 98.12 feet along the arc of a non tangent curve to the right having a radius of 388.80 feet, a central angle of 14°27'33", and the chord bears N 30°23'53" E a distance of 97.86 feet; thence N 37°37'40" E a distance of 102.50 feet; thence 435.35 feet along the arc of a tangent curve to the left having a radius of 472.00 feet, a central angle of 52°50'48", and the chord bears N 11°12'15" E a distance of 420.08 feet; thence N 15°13'09" W a distance of 270.92 feet; thence 257.41 feet along the arc of a tangent curve to the right having a radius of 850.00 feet, a central angle of 17°2F03", and the chord bears N 06°32'37" W a distance of 256.42 feet; thence 49.23 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 112°49'36", and the chord bears N 58°32'43" E a distance of 41.65 feet; thence 68.29 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 35°53'49", and the chord bears S 47°05'34" E a distance of 67.18 feet; thence 238.84 feet along the arc of a tangent curve to the left having a radius of 233.30 feet, a central angle of 58°39'27", and the chord bears S 58°28'23" E a distance of 228.55 feet; thence S 87°48'07" E a distance of 53.67 feet; thence 50.92 feet along the arc of a tangent curve to the right having a radius of 225.00 feet, a central angle of 12°58'05", and the chord bears S 81°19'04" E a distance of 50.82 feet; thence S 74°50'02" E a distance of 12.21 feet; thence 78.47 feet along the arc of a tangent curve to the right having a radius of 166.00 feet, a central angle of 27°05'00", and the chord bears S 61°17'32" E a distance of 77.74 feet; thence S 33°11'51" W a distance of 33.66 feet; thence S 23°13'42" E a distance of 263.55 feet; thence S 03°15'29" E a distance of 228.41 feet; thence S 47°10'57" E a distance of 425.45 feet; thence S 28°23'01" E a distance of 280.60 feet; thence S 27°30'02" E a distance of 560.26 feet; thence S 23°04'41" E a distance of 239.14 feet; thence S 21°36'57" E a distance of 592.55 feet; thence S 13°37'50" W a distance of 178.93 feet; thence S 85°38'04" W a distance of 342.22 feet; thence N 66°28'44" W a distance of 262.01 feet; thence S 11°51'13" W a distance of 319.84 feet; thence S 33°53'10" E a distance of 171.07 feet; thence 274.78 feet along the arc of a non tangent curve to the left having a radius of 233.30 feet, a central angle of 67°28'58", and the chord bears S 18°43'59" W a distance of 259.17 feet; thence S 15°00'30" E a distance of 86.40 feet; thence 236.13 feet along the arc of a tangent curve to the right having a radius of 183.30 feet, a central angle of 73°48'35", and the chord bears S 21°53'48" W a distance of 220.14 feet; • • thence S 58°48'06" W a distance of 21.20 feet; thence 34.15 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 78°16'22", and the chord bears N 82°03'43" W a distance of 31.56 feet; thence 60.22 feet along the arc of a tangent curve to the left having a radius of 221.00 feet, a central angle of 15°36'42", and the chord bears N 50°43'53" W a distance of 60.03 feet; thence N 58°32'15" W a distance of 107.70 feet; thence 179.84 feet along the arc of a tangent curve to the right having a radius of 268.00 feet, a central angle of 38°26'51", and the chord bears N 39°18'49" W a distance of 176.48 feet; thence 172.91 feet along the arc of a tangent curve to the left having a radius of 238.00 feet, a central angle of 41°37'30", and the chord bears N 40°54'09" W a distance of 169.13 feet; thence 118.71 feet along the arc of a tangent curve to the right having a radius of 268.00 feet, a central angle of 25°2T47", and the chord bears N 49°01'30" W a distance of 117.75 feet; thence 270.26 feet along the arc of a tangent curve to the left having a radius of 253.00 feet, a central angle of 61°12'18", and the chord bears N 66°56'16" W a distance of 257.59 feet to the point of beginning; containing 61.9080 acres more or less. Club Parcel B - Legal Description: A parcel of land located in Section 22, Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the corner common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 07°02'56" W a distance of 5573.72 feet; thence S 78°05'34" W a distance of 110.10 feet; thence 114.02 feet along the arc of a non tangent curve to the left having a radius of 323.30 feet, a central angle of 20°12'28", and the chord bears N 06°44'08" W a distance of 113.43 feet; thence N 16°50'22" W a distance of 79.64 feet; thence 182.81 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 96°05'44", and the chord bears N 31°12'30" E a distance of 162.13 feet; thence 45.11 feet along the arc of a non tangent curve to the right having a radius of 25.00 feet, a central angle of 103°23'15", and the chord bears S 49°03'00" E a distance of 39.24 feet; thence 281.89 feet along the arc of a tangent curve to the left having a radius of 910.00 feet, a central angle of 17°44'55", and the chord bears S 06°13'49" E a distance of 280.77 feet to the point of beginning; containing 0.7439 acres more or less. Club Parcel C - Legal Description: A parcel of land located in Sections 21, 22, 27 and 28 Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the corner common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 17°54'09" W a distance of 2230.97 feet; thence S 67°49'37" W a distance of 422.10 feet; thence 317.97 feet along the arc of a non tangent curve to the left having a radius of 250.00 feet, a central angle of 72°52'23", and the chord bears N 52°57'46" W a distance of 296.97 feet; thence 0.07 feet along the arc of a non tangent curve to the left having a radius of 250.35 feet, a central angle of 00°00'56", and the chord bears N 89°23'57" W a distance of 0.07 feet; thence N 89°23'57" W a distance of 222.04 feet; thence 423.37 feet along the arc of a tangent curve to the right having a radius of 214.35 feet, a central angle of 113°09'59", and the chord bears N 32°48'58" W a distance of 357.83 feet; thence N 23°46'02" E a distance of 108.52 feet; thence 115.21 feet along the arc of a tangent curve to the left having a radius of 277.00 feet, a 2 • central angle of 23°49'47", and the chord bears N 11°51'08" E a distance of 114.38 feet; thence N 00°03'46" W a distance of 13.14 feet; thence 180.73 feet along the arc of a tangent curve to the left having a radius of 435.00 feet, a central angle of 23°48'16", and the chord bears N 11°57'54" W a distance of 179.43 feet; thence N 89°34'38" E a distance of 348.84 feet; thence N 30°03'00" E a distance of 223.48 feet; thence N 27°02'33" W a distance of 127.78 feet; thence S 78°07'15" W a distance of 317.21 feet; thence 385.41 feet along the arc of a non tangent curve to the right having a radius of 730.00 feet, a central angle of 30°15'00", and the chord bears N 44°30'05" W a distance of 380.95 feet; thence N 60°37'25" E a distance of 223.04 feet; thence N 50°29'46" W a distance of 201.56 feet; thence N 00°20'46" E a distance of 538.01 feet; thence N 06°31'58" W a distance of 325.27 feet; thence N 47°45'44" W a distance of 160.47 feet; thence 61.13 feet along the arc of a non tangent curve to the left having a radius of 325.00 feet, a central angle of 10°46'36", and the chord bears N 04°28'51" W a distance of 61.04 feet; thence N 09°52'10" W a distance of 248.52 feet; thence 158.30 feet along the arc of a tangent curve to the left having a radius of 625.00 feet, a central angle of 14°30'43", and the chord bears N 17°07'31" W a distance of 157.88 feet; thence N 24°22'52" W a distance of 178.52 feet; thence N 23°47'35" W a distance of 162.78 feet; thence 160.07 feet along the arc of a non tangent curve to the right having a radius of 275.00 feet, a central angle of 33°21'03", and the chord bears N 01°23'09" W a distance of 157.82 feet; thence N 15°17'22" E a distance of 163.59 feet; thence 433.06 feet along the arc of a tangent curve to the left having a radius of 287.00 feet, a central angle of 86°27'15", and the chord bears N 27°56'16" W a distance of 393.13 feet; thence N 49°49'56" E a distance of 186.06 feet; thence N 40°10'04" W a distance of 155.40 feet; thence N 60°25'32" W a distance of 209.16 feet; thence N 28°11'33" W a distance of 559.06 feet; thence N 25°25'36" W a distance of 539.94 • feet; thence N 21 °07'26" E a distance of 197.15 feet; thence N 82°52'40" W a distance of 99.96 feet; thence N 82°52'40" W a distance of 76.55 feet; thence N 82°52'40" W a distance of 176.51 feet; thence S 23°19'25" W a distance of 416.11 feet; thence S 10°57'55" W a distance of 320.15 feet; thence N 66°23'08" W a distance of 261.56 feet; thence N 15°00'55" W a distance of 232.79 feet; thence N 15°00'55" W a distance of 342.05 feet; thence N 23°30'15" E a distance of 68.80 feet; thence N 23°30'15" E a distance of 208.77 feet; thence N 23°30'15" E a distance of 231.38 feet; thence N 23°30'15" E a distance of 367.50 feet; thence 88.61 feet along the arc of a non tangent curve to the left having a radius of 1030.00 feet, a central angle of 04°55'45", and the chord bears N 75°36'47" E a distance of 88.59 feet; thence N 73°08'54" E a distance of 83.54 feet; thence 277.40 feet along the arc of a tangent curve to the left having a radius of 780.00 feet, a central angle of 20°22'37", and the chord bears N 62°57'36" E a distance of 275.94 feet; thence 103.67 feet along the arc of a tangent curve to the right having a radius of 178.30 feet, a central angle of 33°18'46", and the chord bears N 69°25'40" E a distance of 102.21 feet; thence 256.72 feet along the arc of a tangent curve to the left having a radius of 730.00 feet, a central angle of 20°08'58", and the chord bears N 76°00'34" E a distance of 255.40 feet; thence 205.06 feet along the arc of a tangent curve to the right having a radius of 178.30 feet, a central angle of 65°53'41", and the chord bears S 81°07'05" E a distance of 193.94 feet; thence S 48°10'14" E a distance of 246.91 feet; thence 91.35 feet along the arc of a tangent curve to the right having a radius of 170.00 feet, a central angle of 30°47'17", and the chord bears S 32°46'36" E a distance of 90.26 feet; thence S 17°22'57" E a distance of 52.13 feet; thence S 09°47'41" W a distance of 76.34 feet; thence S 23°04'06" E a distance of 554.75 feet; thence S 10°13'44" E a distance of 265.53 feet; thence S 39°14'54" E a distance of 142.99 feet; thence S 23°30'41" E a distance of 371.48 feet; thence S 09°30'57" E a distance of 83.46 feet; • thence 63.28 feet along the arc of a non tangent curve to the right having a radius of 175.00 feet, 3 • • • a central angle of 20°43'04", and the chord bears S 40°29'20" E a distance of 62.93 feet; thence S 30°07'48" E a distance of 194.17 feet; thence S 21°06'00" E a distance of 606.86 feet; thence N 42°31'17" E a distance of 663.00 feet; thence S 87°32'40" E a distance of 69.64 feet; thence 86.64 feet along the arc of a tangent curve to the right having a radius of 120.00 feet, a central angle of 41°22'04", and the chord bears S 66°51'38" E a distance of 84.77 feet; thence S 46°10'36" E a distance of 127.37 feet; thence 385.39 feet along the arc of a tangent curve to the right having a radius of 410.00 feet, a central angle of 53°51'24", and the chord bears S 19°14'54" E a distance of 371.36 feet; thence S 07°40'48" W a distance of 208.78 feet; thence 35.15 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 80°34'01", and the chord bears S 47°57'48" W a distance of 32.33 feet; thence 129.96 feet along the arc of a tangent curve to the left having a radius of 159.00 feet, a central angle of 46°49'50", and the chord bears S 64°49'53" W a distance of 126.37 feet; thence 161.66 feet along the arc of a tangent curve to the left having a radius of 159.00 feet, a central angle of 58°15'20", and the chord bears S 12°17'18" W a distance of 154.79 feet; thence S 16°50'22" E a distance of 79.64 feet; thence 96.39 feet along the arc of a tangent curve to the right having a radius of 273.30 feet, a central angle of 20°12'28", and the chord bears S 06°44'08" E a distance of 95.89 feet; thence 69.72 feet along the arc of a tangent curve to the right having a radius of 273.30 feet, a central angle of 14°36'59", and the chord bears S 10°40'35" W a distance of 69.53 feet; thence S 17°59'04" W a distance of 52.85 feet; thence 411.21 feet along the arc of a tangent curve to the right having a radius of 343.10 feet, a central angle of 68°40'14", and the chord bears S 52°19'11" W a distance of 387.04 feet; thence 68.14 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 35°49'13", and the chord bears N 75°26'05" W a distance of 67.04 feet; thence N 57°31'29" W a distance of 105.67 feet; thence 158.53 feet along the arc of a tangent curve to the left having a radius of 323.30 feet, a central angle of 28°05'42", and the chord bears N 71°34'20" W a distance of 156.95 feet; thence S 04°22'49" W a distance of 50.00 feet; thence 134.01 feet along the arc of a non tangent curve to the right having a radius of 273.30 feet, a central angle of 28°05'42", and the chord bears S 71°34'20" E a distance of 132.67 feet; thence S 57°31'29" E a distance of 105.67 feet; thence N 86°43'53" W a distance of 130.68 feet; thence S 43°09'11" W a distance of 111.24 feet; thence S 35°04'24" E a distance of 129.43 feet; thence S 59°03'57" E a distance of 304.37 feet; thence N 52°35'12" E a distance of 102.28 feet; thence N 52°35'12" E a distance of 209.48 feet; thence N 71°38'02" E a distance of 155.41 feet; thence N 26°51'05" E a distance of 282.77 feet; thence S 15°13'09" E a distance of 18.10 feet; thence 380.01 feet along the arc of a tangent curve to the right having a radius of 412.00 feet, a central angle of 52°50'48", and the chord bears S 11°12'15" W a distance of 366.68 feet; thence S 37°37'40" W a distance of 102.50 feet; thence 393.74 feet along the arc of a tangent curve to the left having a radius of 448.80 feet, a central angle of 50°16'02", and the chord bears S 12°29'39" W a distance of 381.24 feet; thence 2.16 feet along the arc of a tangent curve to the left having a radius of 785.71 feet, a central angle of 00°09'28", and the chord bears S 12°43'07" E a distance of 2.16 feet; thence 37.73 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 86°27'51", and the chord bears S 30°26'05" W a distance of 34.25 feet; thence S 73°40'00" W a distance of 11.18 feet; thence 96.92 feet along the arc of a tangent curve to the left having a radius of 145.00 feet, a central angle of 38°17'50", and the chord bears S 54°31'05" W a distance of 95.13 feet; thence S 35°22'10" W a distance of 73.88 feet; thence 55.50 feet along the arc of a tangent curve to the right having a radius of 109.00 feet, a central angle of 29°10'21", and the chord bears S 49°57'21" W a distance of 54.90 feet; thence S 64°32'31" W a distance of 68.12 feet; thence S 64°32'31" W a distance of 16.91 feet; thence 226.12 feet along the arc of a tangent curve to the left having a radius of 323.30 feet, a central angle of 40°04'26", and the chord bears S 44°30'18" W a distance of 221.54 feet; thence 205.70 feet along the arc of a tangent curve to the right having a radius of 273.00 feet, a central angle of 43°10'19", and the chord bears S 46°03'15" W a distance of 200.87 feet; thence S 67°38'24" W a distance of 7.32 feet; thence S 67°38'24" W a distance of 16.71 feet; thence 27.69 feet along the arc of a tangent curve to the right having a radius of 30.00 feet, a central angle of 52°53'09", and the chord bears N 85°55'01" W a distance of 26.72 feet; thence 298.09 feet along the arc of a non tangent curve to the left having a radius of 60.00 feet, a central angle of 284°39'22", and the chord bears S 21°48'08" E a distance of 73.34 feet; thence 27.11 feet along the arc of a non tangent curve to the right having a radius of 30.00 feet, a central angle of 51°46'13", and the chord bears N 41°45'18" E a distance of 26.19 feet; thence N 67°38'24" E a distance of 25.10 feet; thence 30.37 feet along the arc of a tangent curve to the left having a radius of 323.00 feet, a central angle of 05°23'12", and the chord bears N 64°56'48" E a distance of 30.36 feet; thence 213.01 feet along the arc of a tangent curve to the left having a radius of 323.00 feet, a central angle of 37°47'06", and the chord bears N 43°21'39" E a distance of 209.17 feet; thence 191.15 feet along the arc of a tangent curve to the right having a radius of 273.30 feet, a central angle of 40°04'26", and the chord bears N 44°30'18" E a distance of 187.28 feet; thence N 64°32'31" E a distance of 42.52 feet; thence N 64°32'31" E a distance of 42.52 feet; thence 80.96 feet along the arc of a tangent curve to the left having a radius of 159.00 feet, a central angle of 29°10'21", and the chord bears N 49°57'21" E a distance of 80.08 feet; thence N 35°22'10" E a distance of 73.88 feet; thence 63.50 feet along the arc of a tangent curve to the right having a radius of 95.00 feet, a central angle of 38°17'50", and the chord bears N 54°31'05" E a distance of 62.32 feet; thence N 73°40'00" E a distance of 11.18 feet; thence 37.73 feet along the arc of a non tangent curve to the right having a radius of 25.00 feet, a central angle of 86°27'51", and the chord bears S 63°06'08" E a distance of 34.25 feet; thence 391.91 feet along the arc of a non tangent curve to the left having a radius of 785.71 feet, a central angle of 28°34'44", and the chord bears S 34°09'31" E a distance of 387.86 feet; thence 0.48 feet along the arc of a tangent curve to the left having a radius of 785.71 feet, a central angle of 00°02'06", and the chord bears S 48°27'56" E a distance of 0.48 feet; thence 0.03 feet along the arc of a tangent curve to the right having a radius of 1020.95 feet, a central angle of 00°00'06", and the chord bears S 48°28'56" E a distance of 0.03 feet; thence 85.69 feet along the arc of a tangent curve to the right having a radius of 1020.95 feet, a central angle of 04°48'33", and the chord bears S 46°04'36" E a distance of 85.67 feet; thence 275.85 feet along the arc of a tangent curve to the right having a radius of 1020.95 feet, a central angle of 15°28'50", and the chord bears S 35°55'55" E a distance of 275.01 feet; thence 252.74 feet along the arc of a tangent curve to the right having a radius of 178.30 feet, a central angle of 81°1259", and the chord bears S 12°25'00" W a distance of 232.10 feet; thence S 53°01'29" W a distance of 184.98 feet; thence 82.00 feet along the arc of a tangent curve to the left having a radius of 565.00 feet, a central angle of 08°18'56", and the chord bears S 48°5T01" W a distance of 81.93 feet; thence 31.83 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 72°57'26", and the chord bears S 81°11'16" W a distance of 29.73 feet; thence 78.88 feet along the arc of a tangent curve to the left having a radius of 119.00 feet, a central angle of 37°58'41", and the chord bears N 81°19'22" W a distance of 77.44 feet; thence 16.08 feet along the arc of a tangent curve to the right having a radius of 69.00 feet, a • central angle of 13°20'57", and the chord bears S 86°21'47" W a distance of 16.04 feet; thence N 5 60°58'25" E a distance of 231.46 feet; thence N 11°57'09" E a distance of 74.57 feet; thence N 60°37'09" W a distance of 538.88 feet; thence S 51°15'08" W a distance of 82.72 feet; thence S 09°06'34" E a distance of 696.62 feet; thence S 84°16'03" E a distance of 173.58 feet; thence 21.94 feet along the arc of a non tangent curve to the left having a radius of 565.00 feet, a central angle of 02°13'29", and the chord bears S 08°42'02" W a distance of 21.94 feet; thence 94.05 feet along the arc of a tangent curve to the right having a radius of 193.00 feet, a central angle of 27°55'16", and the chord bears S 21°32'55" W a distance of 93.12 feet; thence S 35°30'33" W a distance of 85.21 feet; thence 31.89 feet along the arc of a tangent curve to the left having a radius of 164.00 feet, a central angle of 11°08'32", and the chord bears S 29°56'17" W a distance of 31.84 feet; thence S 59°4T50" W a distance of 51.55 feet; thence S 87°20'16" W a distance of 72.13 feet; thence S 27°40'22" W a distance of 344.05 feet; thence S 27°40'22" W a distance of 162.75 feet; thence N 80°51'32" E a distance of 445.39 feet; thence N 25°16'42" W a distance of 92.29 feet; thence N 16°26'12" E a distance of 58.56 feet; thence 49.28 feet along the arc of a non tangent curve to the left having a radius of 74.00 feet, a central angle of 38°09'22", and the chord bears N 57°39'13" E a distance of 48.37 feet; thence 30.04 feet along the arc of a tangent curve to the right having a radius of 30.00 feet, a central angle of 57°22'22", and the chord bears N 67°15'43" E a distance of 28.80 feet; thence 100.78 feet along the arc of a tangent curve to the left having a radius of 164.00 feet, a central angle of 35°12'37", and the chord bears N 78°20'35" E a distance of 99.21 feet; thence N 60°44'17" E a distance of 15.51 feet; thence N 60°44'17" E a distance of 26.50 feet; thence 279.34 feet along the arc of a tangent curve to the right having a radius of 193.00 feet, a central angle of 82°55'37", and the chord bears S 77°47'55" E a distance of 255.59 feet; thence 145.29 feet along • the arc of a tangent curve to the left having a radius of 328.00 feet, a central angle of 25°22'47", and the chord bears S 49°01'30" E a distance of 144.11 feet; thence 129.32 feet along the arc of a tangent curve to the right having a radius of 178.00 feet, a central angle of 41°37'30", and the chord bears S 40°54'09" E a distance of 126.49 feet; thence 220.10 feet along the arc of a tangent curve to the left having a radius of 328.00 feet, a central angle of 38°26'51", and the chord bears S 39°18'49" E a distance of 215.99 feet; thence S 58°32'15" E a distance of 107.70 feet; thence 359.40 feet along the arc of a tangent curve to the right having a radius of 161.00 feet, a central angle of 127°54'06", and the chord bears S 05°24'48" W a distance of 289.29 feet; thence S 69°2P51" W a distance of 71.42 feet; thence 30.32 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 69°29'36", and the chord bears N 75°5321" W a distance of 28.50 feet; thence 160.78 feet along the arc of a tangent curve to the left having a radius of 116.00 feet, a central angle of 79°24'49", and the chord bears N 80°50'57" W a distance of 148.22 feet; thence N 16°49'57" W a distance of 109.44 feet; thence N 77°14'53" W a distance of 452.71 feet; to the point of beginning; containing 176.3843 acres more or less. • Club Parcel D - Legal Description: A parcel of land located in Sections 21 and 28 Township 6 South, Range 88 West, Sixth Principal Meridian being more particularly described as follows: Beginning at a point whence the corner common to sections 27, 28, 33 and 34 Township 6 South, Range 88 West of the Sixth Principal Meridian being a 2-1/2" GLO brass cap found in place bears S 14°47'46" E a distance of 3405.59 feet; thence N 61°56'21" W a distance of 234.03 feet; thence S 81°46'07" W a distance of 165.02 feet; thence 82.76 feet along the arc of a non tangent curve to the right having a radius of 525.00 feet, a central angle of 09°01'57", and the chord bears N 21°50'59" W a distance of 82.68 feet; thence N 17°20'00" W a distance of 125.84 feet; thence 135.21 feet along the arc of a tangent curve to the left having a radius of 850.00 feet, a central angle of 09°06'52", and the chord bears N 21°5326" W a distance of 135.07 feet; thence N 11°59'46" E a distance of 226.02 feet; thence N 36°48'43" W a distance of 632.74 feet; thence N 05°17'11" W a distance of 241.12 feet; thence N 83°57'36" E a distance of 385.26 feet; thence N 27°49'50" W a distance of 623.11 feet; thence N 52°28'42" W a distance of 551.00 feet; thence N 75°35'20" W a distance of 196.96 feet; thence 158.78 feet along the arc of a non tangent curve to the left having a radius of 175.00 feet, a central angle of 51°59'06", and the chord bears N 48°21'21" W a distance of 153.39 feet; thence N 74°20'54" W a distance of 97.12 feet; thence 89.53 feet along the arc of a tangent curve to the right having a radius of 125.00 feet, a central angle of 41°02'08", and the chord bears N 53°49'50" W a distance of 87.62 feet; thence 46.86 feet along the arc of a tangent curve to the right having a radius of 25.00 feet, a central angle of 107°24'02", and the chord bears N 20°23'15" E a distance of 40.30 feet; thence 98.45 feet along the arc of a tangent curve to the right having a radius of 184.00 feet, a central angle of 30°39'25", and the chord bears N 89°24'59" E a distance of 97.28 feet; thence 20.05 feet along the arc of a tangent curve to the left having a radius of 341.00 feet, a central angle of 03°22'06", and the chord bears S 76°5622" E a distance of 20.04 feet; thence S 56°57'00" E a distance of 55.33 feet; thence S 01°31'00" W a distance of 58.52 feet; thence N 89°48'00" E a distance of 233.10 feet; thence N 26°34'00" E a distance of 104.77 feet; thence S 76°24'47" E a distance of 19.39 feet; thence S 53°23'00" E a distance of 97.92 feet; thence S 13°56'00" W a distance of 39.87 feet; thence S 58°15'00" E a distance of 140.63 feet; thence S 66°55'57" E a distance of 121.84 feet; thence S 82°18'37" E a distance of 149.68 feet; thence S 86°55'23" E a distance of 230.20 feet; thence S 40°47'44" E a distance of 170.85 feet; thence S 40°47'44" E a distance of 201.81 feet; thence S 30°28'47" E a distance of 620.96 feet; thence N 89°17'10" E a distance of 114.41 feet; thence S 09°52'10" E a distance of 175.46 feet; thence 142.56 feet along the arc of a tangent curve to the right having a radius of 275.00 feet, a central angle of 29°42'10", and the chord bears S 04°58'55" W a distance of 140.97 feet; thence 30.72 feet along the arc of a tangent curve to the left having a radius of 425.00 feet, a central angle of 04°08'28", and the chord bears S 17°45'46" W a distance of 30.71 feet; thence S 68°07'03" W a distance of 246.45 feet; thence S 14°25'26" E a distance of 292.28 feet; thence S 01°05'21" W a distance of 212.99 feet; thence S 39°56'11" E a distance of 186.62 feet; thence 47.98 feet along the arc of a non tangent curve to the left having a radius of 425.00 feet, a central angle of 06°28'06", and the chord bears S 09°43'59" W a distance of 47.95 feet; thence S 06°29'56" W a distance of 133.59 feet; thence 220.40 feet along the arc of a tangent curve to the left having a radius of 425.00 feet, a central angle of 29°42'48", and the chord bears S 08°21'28" E a distance of 217.94 feet; thence S 77°42'41" W a distance of 149.15 feet; to the point of beginning; containing 35.1485 acres more or less. The total area of all four parcels containing 274.18 acres more or less. • • • • EXHIBIT D RECORDED EASEMENTS AND LICENSES 1. Farm and Pasture Lease dated January 1, 2003 by and among Spring Valley Development, Inc., Spring Valley Holdings, USA, Ltd., and Nieslanik Ranch, LLC. 2. Right of the proprietor of a vein or lode to extract and remove his ore therefrom, should the same be found to penetrate or intersect the premises hereby granted, as reserved in United States Patent recorded as follows: DATE RECORDED BOOK PAGE RECEPTION NO. August 8, 1896 12 430 19517 April 11, 1923 112 388 82446 March 26, 1965 364 486 229186 September 8, 1896 12 435 19569 September 1, 1906 56 557 32339 June 2, 1916 71 606 54279 and as shown on the ALTA/ACSM Land Title Survey of Spring Valley Ranch P.U.D. by Gamba & Associates, Inc., dated November 15, 2005, by Michael J. Gamba, P.E. & P.L.S. No. 28036. 3. Right of way for ditches or canals constructed by the authority of the United States, as reserved in United States Patent recorded as follows: DATE RECORDED BOOK PAGE RECEPTION NO. August 8, 1896 12 430 19517 December 7, 1912 71 582 45724 Aprilll, 1923 112 388 82446 February 28, 1926 112 435 94056 October 31, 1939 194 590 137373 February 26, 1952 263 234 178630 February 26, 1952 263 235 178631 February 26, 1952 263 236 178632 February 26, 1952 263 237 178633 February 26, 1952 263 238 178634 February 26, 1952 263 240 178636 March 3, 1952 263 271 178688 March 3, 1952 263 276 178689 March 3, 1952 263 272 178690 March 26, 1965 364 486 229186 September 8, 1896 12 435 19569 September 1, 1906 56 557 32339 June 2, 1916 71 606 54279 April7, 1923 112 558 82381 May 20, 1940 194 617 139733 February 26, 1952 263 231 178627 February 26, 1952 263 233 178629 68\1\1088974.3 • • • February 26, 1952 263 239 178635 February 26, 1952 263 241 178637 February 26, 1952 263 232 178628 and as shown on the ALTA/ACSM Land Title Survey of Spring Valley Ranch P.U.D. by Gamba & Associates, Inc., dated November 15, 2005, by Michael J. Gamba, P.E. & P.L.S. No. 28036. 4. All rights under an application by the Glenwood High Line Railway Company, approved November 9, 1893 under Act of March 3, 1875, being an application for right of way, as reserved in United States Patent recorded December 7, 1912 in Book 71 at Page 582 as Reception No. 45724 and as shown on the ALTA/ACSM Land Title Survey of Spring Valley Ranch P.U.D. by Gamba & Associates, Inc., dated November 15, 2005, by Michael J. Gamba, P.E. & P.L.S. No. 28036. 5. Excepting and reserving, however, to the U.S. all the coal and other minerals in the lands so entered and patented, together with the right to prospect for, mine and remove the same pursuant to the Act of December 29, 1916 (39 Stat. 862) as reserved in United States Patent recorded October 31, 1939 in Book 194 at Page 590 as Reception No. 137373 and as shown on the ALTA/ACSM Land Title Survey of Spring Valley Ranch P.U.D. by Gamba & Associates, Inc., dated November 15, 2005, by Michael J. Gamba, P.E. & P.L.S. No. 28036. 6. Affidavit from the Public Service Company of Colorado, purported owner of easements for electric transmission lines and telephone and telegraph lines, recorded March 9, 1959 in Book 315 at Page 525 as Reception No. 204592. 7. Excepting an easement and right-of-way over and across existing roadways for purposes of ingress and egress, together with any and all grazing rights and privileges as disclosed in Deed recorded June 24, 1965 in Book 367 at Page 185 as Reception No. 230466 and in Deed recorded June 24, 1965 in Book 367 at Page 188 as Reception No. 230467. 8. Excepting and reserving, however, to the U.S. all the coal and other minerals in the lands so entered and patented, together with the right to prospect for, mine, and remove the same pursuant to the Act of December 29, 1916 (39 Stat. 862) as reserved in United States Patent recorded February 26, 1952 in Book 263 at Page 239 as Reception No. 178635 AND AS SHOWN ON THE ALTA/ACSM Land Title Survey of Spring Valley Ranch P.UD. by Gamba & Associates, Inc., dated November 15,2005, by Michael J. Gamba, P.E. & P.L.S. No. 28036. 9. A non-exclusive easement and right-of-way for roadway access purposes; together with a covenant running with the title to a certain parcel of land that grantors covenant and agree that they will not erect or construct any residential or commercial building structures upon a certain parcel more particularly described in following recited Special Warranty Deed; all as disclosed in Special Warranty Deed recorded April 19, 1977 in Book 495 at Page 596 as Reception No. 277987. 68\1\1088974.3 2 • • 10. Twenty-four foot or fifteen foot easements for roadway access, pipelines, and utilities as granted in the following Deeds: RECEPTION NO. 281051 281052 281588 281622 282773 11. Resolutions by the RESOLUTION NO. 80-248 84-126 84-127 87-106 94-135 94-141 2000-95 2002-07 2003-98 2003-99 2005-83 2005-84 2008-55 2008-56 2010-38 BOOK 501 501 502 502 504 PAGE 393 395 387 467 751 RECORDING DATE October 4, 1977 October 4, 1977 November 2, 1977 November 3, 1977 January 6, 1978 Board of County Commissioners of Garfield County: RECEPTION NO. 308660 353974 353975 386620 471850 472056 572999 595731 642016 642017 686066 686067 747015 747016 786992 BOOK PAGE 558 439 652 840 652 842 722 745 924 728 925 340 1220 159 1321 72 1543 420 1543 430 1743 888 1743 894 RECORDING DATE October 24, 1980 July 12, 1984 July 12, 1984 October 13, 1987 December 6, 1994 December 13, 1994 December 1, 2000 January 15, 2002 December 2, 2003 December 2, 2003 November 8, 2005 November 8, 2005 April 22, 2008 April 22, 2008 June 8, 2010 12. Right -of -Way and twenty foot wide easement together with right to clear all trees and brush, by machine work or otherwise, within said easement, and the further right to cut trees, even though outside of said easement, which are tall enough to strike the wires in falling and agreement that all poles, wire and other facilities installed by Grantee shall remain the property of Grantee, and shall be removable at the option of Grantee as disclosed by Holy Cross Electric Association, Inc. Right -of -Way Easement recorded November 19,1984 in Book 660 at Page 166 as Reception No. 357370. 13. Memorandum of Agreement on Boundary Line among F. Peter Simmons, Dorothy M. Simmons and Spring Valley Ranch recorded April 26, 1995 in Book 938 at Page 691 as Reception No. 477245. 14. Twenty foot easement for road and utility purposes as disclosed in Warranty Deed recorded October 9, 1967 in Book 388 at Page 331 as Reception No. 239151 and as shown on the ALTA/ACSM Land Title Survey of Spring Valley Ranch P.U.D. by Gamba 68\1\1088974.3 3 • • & Associates, Inc., dated November 15, 2005, by Michael J. Gamba, P.E. & P.L.S. No. 28036. 15. Pre -inclusion and Wastewater Treatment Plant Development Agreement recorded August 30, 2001 in Book 1282 at Page 8 as Reception No. 587475. 16. Adverse matters disclosed on the ALTA/ACSM Land Title Survey of Spring Valley Ranch P.UD. by Gamba & Associates, Inc., dated November 15, 2005 by Michael J. Gamba, P.E. & P.L.S. No. 28036: a. survey notes; b. ditches; c. possessory rights associated with fences; d. house and garage encroachment and corresponding Deed overlap from the East Exception Parcel; e. underground water line (in Section 29); f. overhead electric lines and utility poles; g. roads 681\1088974.3 4 • • • EXHIBIT E - DEFENSIBLE SPACE Extended Defensible Space Easements Lot Lines Roads SVR Boundary N t FIRE MANAGEMENT 0 0.75 1.5 Miles • • • EXHIBIT F FUEL REDUCTION EASEMENTS Treatment Type Annual Mowing LDS; Linked Defensible Spaces OT Overlot Thinning RT Roadside Thinning N 0 0.75 1.5 Miles Lot Lines Roads ESVR Boundary • EXHIBIT G - FUEL BREAK EASEMENTS • 0 Fuelbreak Lot Lines Roads SVR Boundary 0.75 1.5 Miles •