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HomeMy WebLinkAbout1.03 Declaration of Covenants, Conditions, Restrictions & EasementsDECLARATION of COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS of THE SAGES AT ASPEN GLEN DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS OF THE SAGES AT ASPEN GLEN TABLE OF CONTENTS RECITALS 7 ARTICLE 1 7 1.1 Declaration 7 1.2 Master Declaration 7 ARTICLE 2 DEFINITIONS 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 Allocated Interest Annual Assessment Articles Assessments Association. Association Documents Board of Directors Bylaws Common Expenses Declarant Declaration Default Assessment Duplex Unit First Mortgage First Mortgagee Common Area Duplex Lot Lot Manager Master Association Master Declaration Member 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 10 10 10 10 10 10 The Sages at Aspen Glen Declaration of Covenants 2 2.23 Mortgage 10 2.24 Mortgagee 10 2.25 Owner 10 2.26 Plat 11 2.27 Property 11 2.28 Residential Unit 11 2.29 Sharing Ratio 11 2.30 Special Assessment 11 2.31 Successor Declarant 11 2.32 The Sages at Aspen Glen 11 ARTICLE 3 12 NAME, DIVISION INTO RESIDENTIAL UNITS 12 3.1 Name 12 3.2 Association 12 3.3 Number of Lots and Residential Units 12 3.4 Identification of Lots 12 3.5 Division of Property into Lots & Allocation of Interests 12 3.6 Ownership of Common Area 13 3.7 Non-Partitionability of General Common Area 13 3.8 Use of Common Area 13 3.9 Description of Lots 13 ARTICLE 4 14 MEMBERSHIP AND VOTING RIGHTS; ASSOCIATION OPERATIONS 14 4.1 The Association 14 4.2 Transfer of Membership 14 4.3 Membership 15 4.4 Declarant Control 15 4.5 Compliance with Association Documents 15 4.6 Books and Records 16 4.7 Manager 16 4.8 Implied Rights and Obligations 16 ARTICLE 5 16 POWERS OF THE BOARD OF DIRECTORS The Sages at Aspen Glen Declaration of Covenants OF THE ASSOCIATION 16 5.1 Power to Adopt Rules and Regulations 16 5.2 Power to Enforce Declaration and Rules and Regulations 17 5.3 Power to Engage Employees, Agents, and Consultants 18 5.4 General Corporate Powers 18 5.5 Power to Employ Managers 18 5.6 Powers Provided by Law 19 ARTICLE 6 19 MECHANIC'S LIENS 19 ARTICLE 7 19 PROPERTY RIGHTS OF OWNERS AND RESERVATIONS BY DECLARANT 19 7.1 Recorded Easements 19 7.2 Other Easements 19 7.3 General Maintenance Easement 20 7.4 Association as Attorney -in -Face 20 7.5 Emergency Access Easement 21 7.6 Model Unit Reservation 21 ARTICLE 8 21 MAINTENANCE, LANDSCAPING AND SPECIAL EASEMENT 21 8.1 Maintenance 21 8.2 Special Easement 21 8.3 Maintenance Contract 22 8.4 Maintenance Responsibilities of Owners 22 8.5 Maintenance Related to Noxious Weeds 22 8.6 Additions, Alterations and Improvements 22 8.7 Owner's Failure to Maintain or Repair 23 8.8 Right of Master Association to Maintain or Repair 23 ARTICLE 9 24 INSURANCE AND FIDELITY BONDS 24 9.1 General Insurance Provisions 24 The Sages at Aspen Glen Declaration of Covenants 9.2 Cancellation 24 9.3 Policy Provisions 24 9.4 Insurance Proceeds 25 9.5 Association Policies 25 9.6 Insurer Obligation 25 9.7 Common Expenses 25 9.8 Fidelity Insurance 25 9.9 Workers' Compensation Insurance 26 9.10 Other Insurance 26 9.11 Insurance Obtained by Owners 26 ARTICLE 10 26 ASSESSEMENTS 26 10.1 Obligation 26 10.2 Purpose of Assessments 27 10.3 Budget 27 10.4 Annual Assessments 27 10.5 Apportionment of Annual Assessments 28 10.6 Special Assessments 28 10.7 Default Assessments 29 10.8 Effect of Nonpayment; Assessment Lien 29 10.9 Collections 30 10.10 Personal Obligation 30 10.11 Successor's Liability for Assessments; Subordination of Lien 30 10.12 Payment by Mortgagee 31 10.13 Statement of Status of Assessment Payment 31 10.14 Capitalization of the Association 31 ARTICLE 11 31 ASSOCIATION AS ATTORNEY-IN-FACT 31 ARTICLE 12 32 DAMAGE OR DESTRUCTION 32 12.1 Role of the Board of Directors 32 12.2 Estimate of Damages or Destruction 32 12.3 Repair and Reconstruction 32 12.4 Funds for Repair and Reconstruction 32 The Sages at Aspen Glen Declaration of Covenants 12.5 Disbursement of Funds for Repair and Reconstruction 33 ARTICLE 13 33 DESIGN REVIEW 33 13.1 Approval Required by Association 33 ARTICLE 14 34 DURATION OF COVENANTS AND AMENDMENT 34 14.1 Term 34 14.2 Amendment by Declarant 34 14.3 Amendment of Declaration by Members 34 ARTICLE 15 35 COVENANTS RELATING TO THE MASTER DECLARATION 35 15.1 Master Declaration Matters 3.5 15.2 Enforcement of Master Declaration 35 ARTICLE 16 36 GENERAL PROVISIONS 36 16.1 Restriction on Declarant Powers 36 16.2 Enforcement 36 16.3 Special Rights of First Mortgagees 36 16.4 Severability 36 16.5 Conflicts Between Documents 37 EXHIBITS 38 Exhibit A - Legal Description 38 Exhibit B — Allocation of Assessments 39 Exhibit C — Garfield County Noxious Weed Management Plan 43 The Sages at Aspen Glen Declaration of Covenants DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS OF THE SAGES AT ASPEN GLEN This DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS of The Sages at Aspen Glen (the "Declaration") is made as of this day of , 2016, by Gerd Zeller (the "Declarant"). RECITALS A. Declarant is owner of that certain real property located in Garfield County, Colorado, more particularly described on the attached Exhibit A (the "Property"). B. Declarant desires to create on the Property a project pursuant to the Colorado Common Interest Ownership Act as set forth in Colorado Revised Statute 38-33.3-101, et.'seq. (the "Act"), the name of which is The Sages at Aspen Glen. ARTICLE 1 DECLARATION AND SUBMISSION 1.1 Declaration. Declarant hereby declares that the Property shall be held, sold and conveyed subject to the following covenants, conditions, restrictions and easements which are for the purpose of protecting the value and desirability of the Property, and which shall run with the land and be binding on all parties and heirs, successors, and assigns of parties having any right, title, or interest in all or any part of the Property. Additionally, Declarant hereby submits the Property to the provisions of the Act. 1.2 Master Declaration. The Property is subject to the Master Declaration of Covenants, Conditions and Restrictions for Aspen Glen recorded in the Office of the Clerk and Recorder of Garfield County, Colorado on April 6, 1995, in Book 936 at Page 350, as amended (the "Master Declaration"). The The Sages at Aspen Glen Declaration of Covenants 7 association (hereafter defined) shall constitute a Sub -association as defined in the Master Declaration. ARTICLE 2 DEFINITIONS The following words when used in this Declaration or any Supplemental Declaration, unless inconsistent with the context of this Declaration, shall have the following meanings: 2.1 "Allocated .interests" means the undivided interests in the Common Area, the Common Expenses, and the votes in the Association. The Allocated Interests for each Lot or Duplex Unit have been allocated so that each Lot's or Duplex Unit's share shall be computed with the numerator being one (1) and the denominator being the total number of Residential Lots created and existing at any one time. 2.2 "Annual Assessment" means the Assessment levied annually. 2.3 "Articles" mean the Articles of Incorporation for The Sages at Aspen Glen Homeowners Association, as amended from time to time. 2.4 "Assessments" mean the Annual, Special, and Default Assessments levied pursuant to Article 10 below. Assessments are also referred to as a Common Expense Liability as defined under the Act. 2.5 "Association" means The Sages at Aspen Glen Homeowners Association, a Colorado nonprofit corporation, and its successors and assigns 2.6 "Association Documents" means this Declaration, the Articles of Incorporation, and the Bylaws of the Association, and any procedures, rules, regulations, or policies adopted under such documents by the Association. 2.7 `Board of Directors" means the governing body of the Association elected to perform the obligations of the Association relative to the operation, maintenance, and management of the Property and all improvements on the Property. The Sages at Aspen Glen Declaration of Covenants 8 2.8 "Bylaws" mean the Bylaws adopted by the Association, as amended from time to time. 2.9 "Common Expenses" means (i) all expenses expressly declared to be common expenses by this Declaration or the Bylaws of the Association, (ii) insurance premiums for the insurance carried under Article 9, and (iii) all expenses lawfully determined to be common expenses by the Board of Directors of the Association. 2.10 "Declarant" means Gerd Zeller, and his successors and assigns. 2.11 "Declaration" means and refers to this Declaration of Covenants, Conditions, Restrictions and Easements of The Sages at Aspen Glen. 2.12 "Default Assessment" means the Assessments levied by the Association pursuant to Article 10.7 below. 2.13 "Duplex Unit" means any one of the two duplex residential units, together with all improvements thereon, which may be created by further subdivision on Duplex Lots S8, S9 and S10, including the individual duplex structure, together with an undivided percentage interest in the Common Area appurtenant to such Lot and all other rights and burdens hereunder. 2.14 "First Mortgage" means any Mortgage which is not junior to any lien or encumbrance except liens for taxes or other liens which are given priority by statute and liens for assessments pursuant to the Master Declaration. 2.15 "First Mortgagee" means any person named as a mortgagee or beneficiary in any First Mortgage, or any successor to the interest of any such person under such First Mortgage. 2.16 "Common Area" or "General Common Area" shall mean those Common Areas reserved for use by all the Owners by virtue of not being Lots. The General Common Area shall include all tangible physical properties of this Property including, but not limited to, the land described in Exhibit A. Unless the context otherwise clearly requires, Common Area shall include "Association Property," which shall mean all real and personal property, other than a Residential The Sages at Aspen Glen Declaration of Covenants 9 Lot or Duplex Lot, owned or leased by the Association for the use, enjoyment or benefit of the Owners or other occupants of the Property or any part hereof; 2.17 "Duplex Lot" those Lots identified as Lots S8, S9 and S10 on the Plat which may be further subdivided in two Duplex Lots each. 2.18 "Lot" means any plot of land labeled as any one of Lots S1 through S10 or Duplex Lot created by further subdivision of the Duplex Lots subject to this Declaration and designated as a "Lot" on any subdivision plat of the Property recorded by Declarant in the office of the Clerk and Recorder of Garfield County, Colorado. 2.19 "Manager" shall mean a person or entity engaged by the Association to perform certain duties, powers, or functions of the Association, as the Board of Directors may authorize from time to time. 2.20 "Master Association" means The Homeowners Association at Aspen Glen, a Colorado nonprofit corporation, and its successors and assigns. 2.21 "Master Declaration" means the Master Declaration of Covenants, Conditions and Restrictions for Aspen Glen recorded in the Office of the Clerk and Recorder of Garfield County, Colorado on April 6, 1995, in Book 936 at Page 350 as it may be amended from time to time. 2.22 "Member" shall mean every person or entity that holds membership in the Association for The Sages at Aspen Glen. 2.23 "Mortgage" shall mean any mortgage, deed of trust, or other document pledging any Lot or interest therein as security for payment of a debt or obligation. 2.24 "Mortgagee" means any person named as a mortgagee or beneficiary in any Mortgage, or any successor to the interest of any such person under such Mortgage. 2.25 "Owner" means the owner of record, whether one or more persons or entities, of fee simple title to any Lot or Duplex Unit, and "Owner" also includes the purchaser under a contract for deed covering a Lot or Duplex Unit The Sages at Aspen Glen Declaration of Covenants 10 with a current right of possession and interest in the Residential Unit, but excludes those having such interest in a Lot merely as security for the performance of an obligation, including a Mortgagee, unless and until such person has acquired fee simple title to the Lot or Duplex Unit pursuant to foreclosure or other proceedings. 2.26 "Plat" means the subdivision plat of The Sages at Aspen Glen recorded , 2016, as Reception No. in the records of the Clerk and Recorder of Garfield County, Colorado and all supplements and amendments thereto. 2.27 "Property" means and refers to that certain real property described on Exhibit A attached to this Declaration. 2.28 "Residential Unit" means "Duplex Lot" and/or "Lot" as described in Article 2 (q) and 2 (r) herein. 2.29 "Sharing Ratio" means the percentage allocation of Assessments to which an Owner's Lot or Duplex Unit is subject as set forth in Exhibit B attached hereto and made a part hereof. 2.30 "Special Assessment" means an assessment levied pursuant to Section 10.6 below on an irregular basis. 2.31 "Successor Declarant" means any party or entity to whom Declarant assigns any or all of its rights, obligations, or interest as Declarant, as evidenced by an assignment or deed of record executed by both Declarant and the transferee or assignee and recorded in the Office of the Clerk and Recorder of Garfield County, Colorado, designating such party as a Successor Declarant. Upon such recording, Declarant's rights and obligations under this Declaration shall cease and terminate to the extent provided in such document. 2.32 "The Sages at Aspen Glen" shall mean the residential development project created by this Declaration, consisting of the Property, the Lots and Residential Units, and any other improvements constructed on the Property and as shown on the Plat. Each capitalized term not otherwise defined in this Declaration or in the Plat shall have the same meanings specified or used in the Act. The Sages at Aspen Glen Declaration of Covenants 11 ARTICLE 3 NAME, DIVISION INTO RESIDENTIAL UNITS 3.1 Name. The name of the residential project is The Sages at Aspen Glen. The Project is a Planned Community pursuant to the Act. 3.2 Association. The name of the Association is The Association of The Sages at Aspen Glen. Declarant has caused to be incorporated under the laws of the State of Colorado the Association as a nonprofit corporation with the purpose of exercising the functions as herein set forth. 3.3 Number of Lots and Residential Units. The number of Lots is 10 and the number of Residential Units of the project is thirteen (13). 3.4 Identification of Lots. The identification number of each Lot shall be shown on the separate Final Plat as filed in the real property records of Garfield County, Colorado. 3.5 Division of Property into Lots and Allocation of interests. The Property shall, upon the filing of the Final Plat indicating individual Single Family Lots and Duplex Units, be divided into fee simple estates, each such estate consisting of the separately designated Residential Units as shown on the Plat, as may be supplemented or amended from time to time. The Allocated Interest in and to the General Common Area appurtenant to each Unit and in the Common Expenses shall be a fractional interest with the numerator being one (1) and the denominator being the total number of Residential Units depicted on the Plat and all supplements and amendments thereto. Each Lot shall be allocated one (1) vote in the Association. In the event any Lot or Property is added to the Project, pursuant to reserved Declarant development rights, the resulting Allocated Interest of the Residential Unit(s) in the Common Areas, Common Expenses, and votes in the Association shall be adjusted so that each Lot has an identical fractional interest with the numerator being one and the denominator being the total number of Units created and shown on the Plat as may be supplemented and amended from time to time. The Sages at Aspen Glen Declaration of Covenants 12 3.6. Ownership of Common Area. Such undivided fee interests shall not be amended without the prior written consent of all Owners having a fee ownership in the Common Area. 3.7 Non-Partitionability of General Common Area. The General Common Area shall be owned in common by all of the Owners of the Residential Units and shall remain undivided, and no Owner shall bring any action for partition or division of the General Common Area . 3.8 The Use of Common Area. Each Owner may use the Common Area in accordance with the purpose for which it is intended, without hindering or encroaching upon the lawful rights of the other Owners, subject to such reasonable rules and regulations as may, from time to time, be established pursuant to the Bylaws of the Association. 3.9 Description of Lots. (a) Each Lot or Duplex Unit, and its appurtenant undivided interest in the General Common Area, shall together comprise one (1) Lot, shall be inseparable and may be leased, devised or encumbered only as a Lot. (b) Title to a Lot or Duplex Unit may be held individually or in any form of concurrent ownership recognized in Colorado. In case of any such concurrent ownership, each co-owner shall be jointly and severally liable for performance and observance of all the duties and responsibilities of an Owner with respect to the Lot in which he owns an interest. For all purposes herein, there shall be deemed to be only one (1) Owner for each Lot or Duplex Unit. The parties, if more than one, having the ownership of a Lot shall agree among themselves how to share the rights and obligations of such ownership, but all such parties shall be jointly and severally liable for performance and observance of all of the duties and obligations of an Owner hereunder with respect to the Lot in which they own an interest. (c) Any contract of sale, deed, lease, Mortgage, will or other instrument affecting a Lot may describe it by its Lot number, The Sages at Aspen Glen, County of Garfield, State of Colorado, according to the Plat thereof recorded , 2016 as Reception No. , and any recorded amendment and supplement thereto, and this Declaration, which will be recorded The Sages at Aspen Glen Declaration of Covenants 13 li in the records of the Clerk and Recorder of Garfield County, Colorado, and any recorded amendment and supplement hereto. (d) Each Lot or Duplex Unit and the undivided interest in the General Common Area appurtenant thereto shall be considered a separate parcel of real property and shall be separately assessed and taxed. (e) Each Lot and Duplex Unit shall be used and occupied solely for dwelling or lodging purposes. All of the above stated uses and occupancies shall be only as permitted by and subject to the appropriate and applicable governmental zoning and use ordinances, rules and regulations from time to time in effect. Notwithstanding the foregoing, Declarant, for itself and its successors and assigns, hereby retains a right to maintain any Lot or Units as sales offices, management offices or model residences so long as Declarant, or its successor or assigns, continues to be an Owner of a Residential Unit. The use by Declarant of any Lot as a model residence, office or other use shall not affect the Lot's designation on the Plat as a separate Lot. (f) An Owner shall have the right to lease his Lot upon such terms and conditions as the Owner may deem advisable; provided, however, that (i) any such lease shall be in writing and shall provide that the lease is subject to the terms of this Declaration, (ii) a Lot may be leased only for the uses provided hereinabove, and (iii) any failure of a lessee to comply with the terms of this Declaration, Articles of Incorporation, Bylaws or rules of the Association shall be a default under the lease enforceable by the Association. ARTICLE 4 MEMBERSHIP AND VOTING RIGHTS; ASSOCIATION OPERATIONS 4.1 The Association. Every Owner of a Lot or Duplex Unit shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Residential Unit. 4.2 Transfer of Membership. An Owner shall not transfer, pledge, or alienate his membership in the Association in any way, except upon the sale or encumbrance of his Lot or Duplex Unit and then only to the purchaser or Mortgagee of his Lot. The Sages at Aspen Glen Declaration of -Covenants 14 4.3 Membership. The Association shall have one (1) class of membership consisting of all Owners including the Declarant so long as Declarant continues to own an interest in any Residential. Unit. Except as otherwise provided for in this Declaration, each Member shall be entitled to vote in Association matters pursuant to this Declaration on the basis of one (1) vote for each Lot or Duplex Unit owned. When more than one (1) person holds an interest in any Residential Unit, all such persons shall be Members. The vote for such Lot shall be exercised by one (1) person or an alternative person (who may be a tenant of the Owners) appointed by proxy in accordance with the Bylaws. In the absence of a proxy, the vote allocated to the Lot shall be suspended in the event more than one (1) person or entity seeks to exercise the right to vote on any one (1) matter. Any Owner of a Lot or Duplex Unit which is leased may assign his voting right to the tenant, provided that a copy of a proxy appointing the tenant is furnished to the Secretary of the Association prior to any meeting in which the tenant exercises the voting right. In no event shall more than one (1) vote be cast with respect to any one (1) Lot. 4.4 Declarant Control. Notwithstanding anything to the contrary provided for herein or in the Bylaws, Declarant shall be entitled to appoint and remove the members of the Association's Board of Directors and officers of the Association to the fullest extent permitted under the Act. The specific restrictions and procedures governing the exercise of Declarant's right to so appoint and remove Directors and officers shall be set out in the Bylaws of the Association. Declarant may voluntarily relinquish such power evidenced by a notice executed by Declarant and recorded in the office of the Clerk and Recorder for Garfield County, Colorado, but in such event, Declarant may at its option require that specified actions of the Association or the Board of Directors as described in the recorded notice, during the period Declarant would otherwise be entitled to appoint and remove directors and officers, be approved by Declarant before they become effective. 4.5 Compliance with Association Documents. Each Owner shall abide by and benefit from each provision, covenant, condition, restriction and easement contained in the Association Documents. The obligations, burdens, and benefits of membership in the Association concern the land and shall be covenants running with each Owner's Lot or Duplex Unit for the benefit of all other Residential Units and for the benefit of Declarant's adjacent properties. The Sages at Aspen Glen Declaration of Covenants 15 4.6 Books and Records. The Association shall make available to Owners and to Mortgagees for inspection, upon request, during normal business hours or under other reasonable circumstances, current copies of the Association Documents and the books, records, and financial statements of the Association prepared pursuant to the Bylaws. The Association may charge a reasonable fee for copying such materials. The Association shall maintain such books and records as may be required under the Act. 4.7 Manager. The Association may employ or contract for the services of a Manager to whom the Board of Directors may delegate certain powers, functions, or duties of the Association, as provided in the Bylaws of the Association. The Manager shall not have the authority to make expenditures except upon prior approval and direction by the Board of Directors. The Board of Directors shall not be liable for any omission or unproper exercise by a Manager of any duty, power, or function so delegated by written instrument executed by or on behalf of the Board of Directors. Any such Manager employed by or contracted with by the Board of Directors shall be licensed in accordance with the laws of the State of Colorado which govern licensing of managers for community associations. 4.8 Implied Rights and Obligations. The Association may exercise any right or privilege expressly granted to the Association in the Association Documents, and every other right or privilege reasonably implied from the existence of any right or privilege given to the Association under the Association Documents or reasonably necessary to effect any such right or privilege. The Association shall perform all of the duties and obligations expressly imposed upon it by the Association Documents, and every other duty or obligation implied by the express provisions of the Association Documents or necessary to reasonably satisfy any such duty or obligation. ARTICLE 5 POWERS OF THE BOARD OF DIRECTORS OF THE ASSOCIATION 5.1 Power to Adopt Rules and Regulations. The Association may adopt, amend, repeal, and enforce Rules and Regulations as may be deemed necessary or desirable with respect to the interpretation and implementation of this Declaration, the operation of the Association, the use and enjoyment of Association Properties, and the use of any other property within the Community The Sages at Aspen Glen Declaration of Covenants 16 Area, including Lots. Any such Rules and Regulations shall be effective only upon adoption by resolution of the Board of Directors. Notice of the adoption, amendment, or repeal of any Rule or Regulation shall be given in writing to each Member at the address for notices to Members as elsewhere provided in this Declaration or the Bylaws, and copies of the currently effective Rules and Regulations shall be made available to each Member upon request and payment of the reasonable expense of copying the same. Each Member shall comply with such Rules and Regulations. Such Rules and Regulations shall have the same force and effect as if they were set forth in and were part of this Declaration. In the event of conflict between the Rules and Regulations and the provisions of this Declaration, the provisions of this Declaration shall prevail. 5.2 Power to Enforce Declaration and Rules and Regulations. The Association shall have the power to enforce the provisions of this Declaration and the Rules and Regulations and shall take such action as the Board of Directors deems necessary or desirable to cause such compliance by each Member. Without limiting the generality of the foregoing, the Association shall have the power to enforce the provisions of this Declaration and the Rules and Regulations by any one or more of the following means: (a) by entry upon any property within the Community Area after Notice and Hearing (unless a bona fide emergency exists), without liability to the Owner thereof or the Association, for the purpose of enforcement or causing compliance with this Declaration or the Rules and Regulations; (b) by commencing and maintaining actions and suits to restrain and enjoin any breach or threatened breach of the provisions of this Declaration or the Rules and Regulations, by mandatory injunction or otherwise; (c) by commencing and maintaining actions and suits to recover damages for breach of any of the provisions of this Declaration or the Rules and Regulations; (d) by suspension, after Notice and Hearing, of the voting rights of a Member during and for up to ten (10) days following any breach by such Member or a Related User of such Member of this Declaration or the Rules and Regulations; unless the breach is a continuing breach in which case such suspension shall continue for so long as such breach continues; (e) by levying and collecting, after Notice and Hearing, a Reimbursement Assessment against any Member for breach of this Declaration or the Rules and Regulations by such Member or Related User of such Member; and (f) uniformly applied fines and penalties, established in advance in the Rules and Regulations of the Association, from any Member or Related User for breach of The Sages at Aspen Glen Declaration of Covenants 17 1 this Declaration or the Rules and Regulations by such Member or Related User of such Member. In the event that the Association fails to enforce the provisions of this Declaration as provided for herein, each Member shall, upon thirty (30) days written notice to the Association, have the power (a) to enforce the provisions hereof by commencing and maintaining actions and suits to restrain and enjoin any breach or threatened breach of the provisions of this Declaration, by mandatory injunction or otherwise; or (b) to commence or maintain actions and suits to recover damages for breach of any of the provisions of this Declaration. 5.3 Power to Engage Employees, Agents, and Consultants. The Association shall have the power to hire and discharge employees and agents and to retain and pay for management, (e.g., management company), legal and accounting services as may be necessary or desirable in connection with the performance of any duties or the exercise of any powers of the Association under this Declaration. 5.4 General Corporate Powers. The Association shall have all of the ordinary powers and rights of a Colorado corporation formed under the Colorado Nonprofit Corporation Act, including, without limitation, entering into partnership and other agreements, subject only to such limitations upon such powers as may be set forth in this Declaration or in the Articles of Incorporation or Bylaws. The Association shall also have the power to do any and all lawful things which may be authorized, required, or permitted to be done under this Declaration or the Articles of Incorporation or Bylaws and to do and perform any and all acts which may be necessary or desirable for, or incidental to, the exercise of any of the express powers or rights of the Association under this Declaration and the Articles of Incorporation or Bylaws. 5.5 Power to Employ Managers. The Association shall have the power to retain and pay for the services of a Manager or Managers, which may be an affiliate of Declarant, to undertake any of the management or Administrative Functions, Recreation Functions, or Public Functions for which the Association has responsibility under this Declaration to the extent deemed advisable by the 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 Association, the Association and its Board of Directors shall remain ultimately responsible for the performance and exercise of such duties, powers, and functions. The Sages at Aspen Glen Declaration of Covenants 18 5.6 Powers Provided by Law. In addition to the above -referenced powers, the Association shall have full power to take and perform any and all actions which may be lawfully taken by the Association under the Colorado Nonprofit Corporation Act and the Colorado Common Interest Ownership Act. ARTICLE 6 MECHANIC'S LIENS If any Owner shall cause any material to be furnished to his Lot or Duplex Unit or any labor to be performed therein or thereon, no Owner of any other Lot shall under any circumstances be liable for the payment of any expense incurred or for the value of any work done or material furnished. All such work shall be at the expense of the Owner causing it to be done, and such Owner shall be solely responsible to contractors, laborers, materialmen and other persons furnishing labor or materials to his Lot or Duplex Unit, ARTICLE 7 PROPERTY RIGHTS OF OWNERS AND RESERVATIONS BY DECLARANT 7.1 Recorded Easements. The Property shall be subject to all easements as shown on any recorded plat affecting the Property and to any other easements and licenses of record or of use as of the date of recordation of this Declaration. In addition, the Property is subject to those easements set forth in this Article 7. 7.2 Other Easements. (a) Easement for Benefit of Owners. All of the Owners of Lots shall have a nonexclusive right in common with all of the other Owners to use of sidewalks, pathways, roads and streets located within the entire Property, if any. This easement is subject to the following rights of the Association: (i) the right to reasonably limit the number of guests (not including lessees or members of the Owner's or lessee's family residing on a Lot). The Sages at Aspen Glen Declaration of Covenants 19 (ii) the right to establish uniform rules as to the use of any facilities on the Property, including without limitation the right to establish and enforce parking restrictions; (iii) the right to suspend the right of an Owner, his lessees and their families or guests to the benefit or use of any facilities on the Property for any period of time during which any assessment against a Lot remains unpaid and delinquent and also for a period of time not exceeding thirty (30) days for any single infraction of the rules of the Association. (b) The Declarant under the Master Declaration and the officers, agents, employees and independent contractors of the Master Association shall have a nonexclusive easement to enter upon the Property for the purpose of performing or satisfying their respective obligations as set forth in the Master Declaration, Master Association bylaws and rules and regulations. 7.3 General Maintenance Easement. An easement is hereby reserved to Declarant, and granted to the Association, and any member of the Board of Directors or the Manager, and their respective officers, agents, employees, and assigns, upon, across, over, in, and under the Property and a right to make such use of the Property as may be necessary or appropriate to make emergency repairs, to perform the duties and functions which the Association is obligated or permitted to perform pursuant to the Association Documents, or to exercise its rights under Article 8 below, including the right to enter upon any Lot for the purpose of performing maintenance, including but not limited to work involving drainage, irrigation and other water features, as set forth in Article 8 below. 7.4 Association as Attorney -in -Fact. Each Owner, by his acceptance of a deed or other conveyance vesting in him an interest in a Residential Unit, does irrevocably constitute and appoint the Association and/or Declarant with full power of substitution as the Owner's name, place and stead to deal with Owner's interest in order to effectuate the rights reserved by Declarant or granted to the Association, as applicable, with full power, right and authorization to execute and deliver any instrument affecting the interest of the Owner and to take any other action which the Association or Declarant may consider necessary or advisable to give effect to the provision of this Section and this Declaration generally. If requested to do so by the Association or Declarant, each Owner shall execute and deliver a written, acknowledged instrument confirming such appointment. The Sages at Aspen Glen Declaration of Covenants 20 7.5 Emergency Access Easement. A general easement is hereby granted to all police, sheriff, fire protection, ambulance, and other similar emergency agencies or persons to enter upon the Property in the proper performance of their duties. 7.6 Model Unit Reservation. Declarant reserves for itself and for any Successor Declarant or assign the right to construct and maintain a model home or duplex unit for the purpose of sales efforts upon any Lot in the Project. ARTICLE 8 MAINTENANCE, LANDSCAPING AND SPECIAL EASEMENT 8.1 Maintenance. In order to maintain a uniform appearance and a high standard of maintenance within The Sages at Aspen Glen, the Association shall maintain: (a) General Common Area. The Association shall have the sole discretion to determine the time and manner in which maintenance shall be performed. (b) Roadways, Landscaping, Drainage, Irrigation and Other Water Features contained within the Property and General Common Area; provided, however, that the Association's obligation of maintenance of the Roads and right to the use of the water and water rights contained in any such drainage, irrigation or other Water Features shall be subject to the Aspen Glen P.U.D. approvals, the Master Declaration and/or agreement between the Declarant and the Master Association. (c) Association's Right to Create Rules Regarding Owner's Maintenance of Lot. The Association shall have the right to promulgate reasonable rules and regulations regarding the maintenance by the Owner of the landscaping and lawn care of each Lot. 8.2 Special Easement. The Association and the Board of Directors and their respective representatives are hereby granted a nonexclusive easement to enter the Lots as may be necessary or appropriate to perform the duties and functions which they may be obligated or permitted to perform pursuant to this Article 8. The Sages at Aspen Glen Declaration of Covenants 21 8.3 Maintenance Contract. The Association or Board of Directors may employ or contract for the services of an individual or maintenance company to perform certain delegated powers, functions, or duties of the Association to maintain the Common Area. The employed individual or maintenance company shall have the authority to make expenditures upon prior approval and direction of the Board of Directors. The Board of Directors shall not be liable for any omission or improper exercise by the employed individual or management company of any duty, power, or function so delegated by written instrument executed by or on behalf of the Board of Directors. 8.4 Maintenance Responsibilities of Owners. Each Owner is responsible for providing all maintenance upon their Lot at their own expense. Such responsibility shall include, without limitation, maintenance of the entire buildings on a Lot and the Lot. The Association shall have the right and power to prohibit storage or other activities deemed unsafe, unsightly, unreasonably noisy or otherwise offensive to the senses and perceptible from another Lot. 8.5 Maintenance Related to Noxious Weeds. Each Owner is responsible for the identification, control and management of noxious weeds which may grow on their Lot. Owners shall utilize the resources contained in the Garfield County Vegetation Management Plan for the identification, management and treatment of any of the noxious weeds contained listed in Section 2.04 of the Noxious Weed List created by the Garfield County Vegetation Management Plan, attached hereto as Exhibit C and incorporated herein. Owners are encouraged to utilize the resources available through the Garfield County Vegetation Management Department. 8.6 Additions, Alterations, and Improvements. Subject to the reservation of rights of Declarant hereof, no improvement to the Property (other than for maintenance) which results in a Common Expense shall be constructed except with the prior approval of the members of the Association having at least sixty-seven percent (67%) of the total number of votes outstanding and entitled to be cast at a membership meeting as provided in the Bylaws. Dissenting Owners shall not be relieved of their obligation to pay their proportionate share of any Common Expenses. An individual Owner shall do no alterations, additions, or improvements (for his individual benefit or for the benefit of his Lot) to the General Common Area or the Limited Common Area without prior written The Sages at Aspen Glen Declaration of Covenants 22 approval of the Board of Directors. No Owner shall decorate or fence any of the Lot area without the prior written approval of the Board of Directors. Utilities shall not be disturbed or relocated by an Owner without the written consent and approval of the Board. All repairs, alterations or remodels are coupled with the obligation to replace materials removed with similar or better quality materials. An Owner shall do no act nor any work that will or may impair any easement without the written consent of the Board of Directors, after first proving to the satisfaction of the Executive Board that such structural soundness or integrity will be maintained during and after any such act or work shall be done or performed. Any expense to the Board of Directors for investigation under this paragraph shall be borne by the Owner. Further, any augmentation or increase in the landscaping of the landscaped garden areas shall include a plan for the maintenance thereof. Such approved additional landscaping shall be maintained at the sole cost and expense of the Owner whose Lot is affected in accordance with the approved plan of maintenance. 8.7 Owner's Failure to Maintain or Repair. In the event that landscaping upon any Lot is not maintained properly, then the Association, after notice to the Owner and with the approval of the Board of Directors, shall have the right to enter upon the Lot to perform such work as is reasonably required to restore the landscaping thereon to a condition of good order. All costs incurred by the Association in connection with the restoration shall be reimbursed to the Association by the Owner of the Lot upon demand. All unreimbursed costs shall be a lien upon the Lot until reimbursement is made. The lien may be enforced in the same manner as a lien for an unpaid Assessment levied in accordance with Article 10 of this Declaration. 8.8 Right of Master Association to Maintain or Repair. In the event that any property, whether pertaining to a Lot (as described in Paragraph 8.6 hereof) or to Common Area located anywhere within the Sages at Aspen Glen are not properly maintained or are damaged or destroyed by an event of casualty and neither the Owner thereof or the Association takes reasonable measures to diligently pursue the repair and reconstruction of the damage or destruction, then the Master Association, after notice to the Owner, if applicable, and to the Association, shall have the right to enter the affected property and perform such work as is reasonably required to restore the property and any improvement thereon to a condition of good order and repair. All costs incurred by the Master Association in connection with the restoration shall be reimbursed to the Master The Sages at Aspen Glen Declaration of Covenants 23 Association by the Owners of the affected Lot, or by the Association upon demand. All unreimbursed costs shall be a lien upon the affected Lot or Units and the property of the Association until reimbursement is made. This lien may be enforced in the same manner as a lien for an unpaid Assessment levied in accordance with Article 10 of this Declaration. ARTICLE 9 INSURANCE AND FIDELITY BONDS 9.1 General Insurance Provisions. The Association shall maintain, to the extent reasonably available, such insurance as the Board of Directors considers appropriate, including insurance on Common Areas. 9.2 Cancellation. If the insurance described in Article 9.1 is not reasonably available, or if any policy of such insurance is canceled or not renewed without a replacement policy therefor having been obtained, the Association promptly shall cause notice of that fact to be hand delivered or sent prepaid by United States mail to all Owners. 9.3 Policy Provisions. Insurance policies carried pursuant to Article 9.1 must provide that: (a) Each Owner is an insured person under the policy with respect to liability arising out of such Owner's membership in the Association; (b) The insurer waives its rights to subrogation under the policy against any Owner or member of his household; (c) No act or omission by any Owner, unless acting within the scope of such Owner's authority on behalf of the 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 Association's policy shall provide primary insurance. The Sages at Aspen Glen Declaration of Covenants 24 9.4 Insurance Proceeds. Any loss covered by the property insurance policy described in Article 9.1 must be adjusted with the Association, but the insurance proceeds for that loss shall be payable to any insurance trustee designated for that purpose, or otherwise to the Association, and not to any holder of a security interest. The insurance trustee or the Association shall hold any insurance proceeds in trust for the Owners and Mortgagees as their interests may appear. The proceeds must be disbursed first for the repair or restoration of the damaged property, and the Association. Owners and Mortgagees are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the damaged property has been completely repaired or restored or the regime created by this Declaration is terminated. 9.5 Association Policies. The 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 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 of all or an equitable portion of the deductible paid by the Association. 9.6 Insurer Obligation. An insurer that has issued an insurance policy for the insurance described in Article 9.1 shall issue certificates or memoranda of insurance to the Association and, upon request, to any Owner or Mortgagee. 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 Association and to each Owner and Mortgagee to whom a certificate or memorandum of insurance has been issued at their respective last -known addresses. 9.7 Common Expenses. Premiums for insurance that the Association acquires and other expenses connected with acquiring such insurance policy as described in Article 9.1, are Common Expenses. 9.8 Fidelity Insurance. To the extent reasonably available, fidelity bonds may be maintained by the Association to protect against dishonest acts on the part of its officers, directors, trustees, and employees and on the part of all others who handle or are responsible for handling the funds belonging to or administered by the Association in an amount not less than two (2) months' current The Sages at Aspen Glen Declaration of Covenants 25 Assessments plus reserves as calculated from the current budget of the Association. In addition, if responsibility for handling funds is delegated to a Manager, such bond may be obtained for the Manager and its officers, employees, and agents, as applicable. Any such fidelity coverage shall name the Association as an obligee and such bonds shall contain waivers by the issuers of all defenses based upon the exclusion of persons serving without compensation form the definition of "employees," or similar terms or expressions. 9.9 Workers' Compensation Insurance. The Board of Directors shall obtain workers' compensation or similar insurance with respect to its employees, if applicable, in the amounts and forms as may now or hereafter be required by law. 9.10 Other Insurance. The Association shall also maintain insurance to the extent reasonably available and in such amounts as the Board of Directors may deem appropriate on behalf of Directors against any liability asserted against a Director or incurred by him in his capacity of or arising out of his status as a Director. The Board of Directors may obtain insurance against such other risks of a similar or dissimilar nature as it shall deem appropriate with respect to the Association's responsibilities and duties. 9.11 Insurance Obtained by Owners. Each Owner shall obtain and at all times maintain physical damage and liability insurance for such Owner's benefits at such Owner's expense, covering the full replacement value of the Owner's Lot improvements. All Owners are required to maintain on file copies of all such current policies with the Association to evidence their obligations hereunder and to facilitate recovery of all appropriate rewards or proceeds by the Association. ARTICLE 10 ASSESSMENTS 10.1 Obligation. Each Owner, including Declarant, by accepting a deed for a Lot, is deemed to covenant to pay to the Association (i) the Annual Assessments imposed by the Board of Directors as necessary and pursuant to the Budget adopted annually by the Association, for common expenses associated with the maintenance, repair or replacement of common elements and expenses necessary to perform the functions of the Association, (ii) Special Assessments for capital improvements and other purposes as stated in this Declaration, if permitted under the Act, and (iii) Default Assessments which may be assessed against a Lot The Sages at Aspen Glen Declaration of Covenants 26 for the Owner's failure to perform an obligation under the Association Documents or because the Association has incurred an expense on behalf of the Owner under the Association Documents. 10.2 Purpose of Assessments. The Assessments shall be used exclusively to promote the health, safety and welfare of the Owners and occupants of The Sages at Aspen Glen, and for the improvement and maintenance of the Property, the Common Area, and other areas of Association responsibility referred to herein, as more fully set for the in this Article below. 10.3 Budget. Within thirty (30) days after the adoption of any proposed budget for the Association, the Board of Directors shall mail, by ordinary first- class mail, or otherwise deliver a summary of the budget to all the 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 mailing or other delivery of the summary. Unless at that meeting a majority of all Owners reject the budget, the budget is ratified, whether or not a quorum is present. In the event the proposed budged is rejected, the periodic budget last ratified by the Owners must be continued until such time as the Owners ratify a subsequent budget proposed by the Board of Directors. The Board of Directors shall adopt a budget and submit the budget to a vote of the Owners as provided herein no less frequently than annually. The Board of Directors shall levy and assess the Annual Assessments in accordance with the annual budget. 10.4 Annual Assessments. Annual Assessments made shall be based upon the estimated cash requirements as the Board of Directors shall determine by the Annual Budget to be paid by all of the Owners, subject to Article 10.3 above. Estimated Common Expenses shall include, but shall not be limited to, the cost of routine maintenance and operation of the Property and the Common Area; expenses of management; insurance premiums for insurance coverage as deemed desirable or necessary by the Association; landscaping of the Property; care of grounds within the Common Area; routine repairs and renovations within the Common Area, including wages; common water and utility charges for the Common Area; legal and accounting fees; management fees; expenses and liabilities incurred by the Association under or by reason of this Declaration; payment of any default remaining from a previous assessment period; and the creation of a reasonable contingency or other reserve or surplus fund for general, The Sages at Aspen Glen Declaration of Covenants 27 routine maintenance, repairs, and replacement of improvements within the Common Area on a periodic basis, as needed. Annual Assessments shall be payable in quarterly installments on a prorated basis in advance and shall be due on the first day of each quarter. The omission or failure of the Association to fix the Annual Assessments for any assessment period shall not be deemed a waiver, modification, or release of the Owners from their obligation to pay the same. The Association shall have the right, but not the obligation, to make prorated refunds of any Annual Assessments in excess of the actual expenses incurred in any fiscal year. 10.5 Apportionment of Annual Assessments. Each Owner shall be responsible for that Owner's share of the Common Expenses, which shall be divided among the Residential Units on the basis of the Sharing Ratio in effect on the date of assessment, subject to the following provisions: Expenses (including, but not limited to, costs of maintenance, repair, and replacement) relating to fewer than all of the Residential Units, to the extent not covered by insurance, may, in the sole discretion of the Board of Directors, be assessed only to Owners of the affected Residential Units; provided, however, that assessments for maintenance of the Limited Conunon Area shall be shared equally on the basis of the Sharing Ratio. 10.6 Special Assessments. In addition to the Annual Assessments authorized by this Article 10, the Association, if permitted under the Act, may levy in any fiscal year one or more Special Assessments, payable over such a period as the Association may determine, for the purpose of defraying, in whole or in part, the cost of any unexpected repair or replacement of improvements on the Property or the Common Area or for such other expense incurred or to be incurred as provided in this Declaration. This Section 10.6 shall not be construed as an independent source of authority of the Association to incur expense, but shall be construed to prescribe the manner of assessing expenses authorized by other sections of this Declaration. Any amounts assessed pursuant to this Section shall be assessed to Owners in the same proportion as provided for Annual Assessments in Section 10.4, subject to the requirement that any extraordinary insurance costs incurred as a result of the value of a particular Owner's residence or the actions of a particular Owner (or his agents, servants, guests, tenants, or invitees) shall be borne by that Owner, and subject to Section 10.5 above. Notice in writing in the amount of such Special Assessments and the time for payment of the Special The Sages at Aspen Glen Declaration of Covenants 28 Assessments shall be given promptly to the Owners, and no payment shall be due Less than thirty (30) days after such notice shall have been given. 10.7 Default Assessments. All monetary fines assessed against an Owner pursuant to the Association Documents, or any expense of the Association which is the obligation of an Owner or which is incurred by the Association on behalf of the Owner pursuant to the Association Documents, shall be a Default Assessment and shall become a lien against such Owner's Lot which may be foreclosed or otherwise collected as provided in this Declaration. Notice of the amount and due date of such Default Assessment shall be sent to the Owner subject to such Assessment at least thirty (30) days prior to the due date. 10.8 Effect of Nonpayment; Assessment Lien. Any Assessment installment, whether pertaining to any Annual, Special, or Default Assessment, which is not paid on or before its due date shall be delinquent. If an Assessment installment becomes delinquent, the Association, in its sole discretion, may take any or all of the following actions: (a) assess a late charge for each delinquency in such amount as the Association deems appropriate; (b) assess an interest charge from the date of delinquency at the yearly rate of two (2) points above the prime rate charged by the Association's bank, or such other rate as the Board of Directors may establish, not to exceed twenty-one percent (21 %) per annum; (c) suspend the voting rights of the Owner during any period of delinquency; (d) accelerate all remaining Assessment installments so that unpaid Assessments for the remainder of the fiscal year shall be due and payable at once; (e) bring an action at law against any Owner personally obligated to pay the delinquent Assessments however a lien for unpaid assessments is extinguished unless proceedings to enforce said lien are instituted within six (6) years after the full amount of assessments become due; and (f) proceed with foreclosure as set forth in more detail below. The Sages at Aspen Glen Declaration of Covenants 29 Assessments chargeable to any Lot or Duplex Lot shall constitute a lien on such Residential Unit. The Association may institute foreclosure proceedings against the defaulting Owner's Lot in the manner for foreclosing a mortgage on real property under the laws of the State of Colorado, however no such institution of a foreclosure shall commence against any delinquent owner until the balance due equals or exceeds six (6) months of assessment fees. Additionally, prior to instituting any foreclosure action, the Board of Directors must formally resolve, by a recorded vote, to authorize the filing of legal action against the owner of the Residential Unit on an individual basis. In the event of any such foreclosure, the Owner shall be liable for the amount of unpaid Assessments, any penalties and interest thereon, the cost and expenses of such proceedings, the cost and expenses for filing the notice of the claim and lien, and all reasonable attorney's fees incurred in connection with the enforcement of the lien. The Association shall have the power to bid on a Lot at foreclosure sale and to acquire and hold, lease, mortgage, and convey the same. 10.9 Collections. In order to collect past due assessments and other delinquent payments under this Article 10, the Board of Directors shall adopt and comply with a collection policy that meets the requirements set forth in C.R.S. §38-33.3-205.5 (5) and shall further make a good faith effort to coordinate with the Residential Unit owner to set up a one-time payment plan established in writing and signed by the delinquent owner. This one time opportunity to enter into a payment plan does not extend to any owner who does not occupy the Residential Unit and who has acquired the property as a result of a default on a mortgage (i.e. Public Trustee foreclosure) or a foreclosure of the Association's lien. 10.10 Personal Obligation. The amount of any Assessment chargeable against any Lot shall be a personal and individual debt of the Owner of same. No Owner may exempt himself from liability for the Assessment by abandonment of his Residential Unit. Suit to recover a money judgment for unpaid Assessments, any penalties and interest thereon, the costs and expenses of such proceedings, and all reasonable attorneys' fees in connection therewith shall be maintainable without foreclosing or waiving the Assessment lien provided in this Declaration. 10.11 Successor's Liability for Assessments; Subordination of Lien. The provisions of the Act shall govern and control (i) the obligations of successors to The Sages at Aspen Glen Declaration of Covenants 30 the fee simple title of a Lot on which Assessments are delinquent, and (ii) the subordination by the lien of the Assessments provided for in this Declaration 10.12 Payment by Mortgagee. Any Mortgagee holding a lien on a Lot may pay any unpaid Assessment payable with respect to such Lot, together with any and all costs and expense incurred with respect to the lien, and upon such payment that Mortgagee shall have a lien on the Lot for the amounts paid with the same priority as the lien of the Mortgage. 10.13 Statement of Status of Assessment Payment. Upon payment of a. reasonable fee set from time to time by the Board of Directors and upon fourteen (14) days' written request to the Manager or the Association's registered agent, any Owner, Mortgagee, prospective Mortgagee, or prospective purchaser of a Lot shall be furnished with a written statement setting forth the amount of the unpaid Assessments, if any, with respect to such Residential Unit. Unless such statement shall be issued by personal delivery or by certified mail, first class postage prepaid, return receipt requested, to the inquiring party (in which even the date of posting shall be deemed the date of delivery) within fourteen (14) days, the Association shall have no right to assert a lien upon the Lot over the inquiring party's interest for unpaid Assessments which were due as of the date of the request. 10.14 Capitalization of the Association. Upon acquisition of record title to a Lot from Declarant or any seller after Declarant, each Owner shall contribute to the working capital and reserves of the Association an amount equal to twenty-five percent (25%) of the Annual Assessment determined by the Board of Directors for that Lot for the year in which the Owner acquired title. Such payments shall not be considered advance payments of Annual Assessments. The unused portion of the working capital deposit shall be returned to each Owner upon the sale of his Residential Unit, provided that the new purchaser of the Lot has deposited the required working capital deposit with the Association. ARTICLE 11 ASSOCIATION AS ATTORNEY-IN-FACT Each Owner hereby irrevocably appoints the Association as the Owner's true and lawful attorney-in-fact for the purposes of dealing with any improvements covered by insurance written in the name of the Association pursuant to Article 9 upon their damage or destruction as provided in Article 12. Acceptance by a The Sages at Aspen Glen Declaration of Covenants 31 grantee of a deed or other instrument of conveyance or any other instrument conveying any portion of the Property shall constitute appointment of the Association as the grantee's attorney-in-fact, and the Association shall have full authorization, right, and power to make, execute, and deliver any contract, assignment, deed, waiver, or other instrument with respect to the interest of any Owner which may be necessary to exercise the powers granted to the Association as attorney-in-fact. ARTICLE 12 DAMAGE OR DESTRUCTION 12.1 Role of the Board of Directors. In the event of damage or destruction to any property covered by insurance written in the name of the Association, the Board of Directors shall arrange for and supervise the prompt repair and restoration of the damaged property insured by the Association. 12.2 Estimate of Damages or Destruction. As soon as practicable after an event causing damage to or destruction of any part of the Association -Insured Property, the Board of Directors shall, unless such damage or destruction shall be minor, obtain an estimate or estimates that itdeems reliable and complete of the costs of repair and reconstruction. "Repair and reconstruction" as used in Article 12 shall mean restoring the damaged or destroyed improvements to substantially the same condition in which they existed prior to the damage or destruction. Such costs may also include professional fees and premiums for such bonds as the Board of Directors or the Insurance Trustee, if any, determines to be necessary. 12.3 Repair and Reconstruction. As soon as practical after the damage occurs and any required estimates have been obtained, the Association shall diligently pursue to completion the repair and reconstruction of the damaged or destroyed Association -Insured Property. As attorney-in-fact for the Owners, the Association may take any and all necessary or appropriate actions to effect repair and reconstruction of any damage to the Association -Insured Property, and no consent or other action by any Owner shall be necessary. Assessments of the Association shall not be abated during the period of insurance adjustments and repair and reconstruction. 12.4 Funds for Repair and Reconstruction. The proceeds received by the Association from any hazard insurance carried by the Association shall be used The Sages at Aspen Glen Declaration of Covenants 32 for the purpose of repair, replacement, and reconstruction of the Association - Insured Property. If the proceeds of the Association's insurance are insufficient to pay the estimated or actual cost of such repair, replacement, or reconstruction, or if upon completion of such work the insurance proceeds for the payment of such work are insufficient, the Association may, pursuant to Section 10.6, if permitted under the Act, levy, assess, and collect in advance from the Owners, without the necessity of a special vote of the Owners, a Special Assessment sufficient to provide funds to pay such estimated or actual costs of repair and reconstruction. Further levies may be made in like manner if the amounts collected prove insufficient to complete the repair, replacement, or reconstruction. 12.5 Disbursement of Funds for Repair and Reconstruction. The insurance proceeds held by the Association and the amounts received from the Special Assessments provided for above constitute a fund for the payment of the costs of repair and reconstruction after casualty. It shall be deemed that the first money disbursed in payment for the costs of repair and reconstruction shall be made from insurance proceeds, and the balance from the Special Assessments. If there is a balance remaining after payment of all costs of such repair and reconstruction, such balance shall be distributed to the Owners in proportion to the contributions each Owner made as Special Assessments, then in equal shares per Residential Unit, first to the Mortgagees and then to the Owners, as their interests appear. ARTICLE 13 DESIGN REVIEW 13.1 Approval Required by Association. No initial improvement or alteration of the exterior of a Lot or other structure located on a Lot, including repainting of the structure, shall be made unless first approved in writing by the Board of Directors. The Board of Directors shall exercise its best judgment to ensure that all modifications to structures and on land within the Property conform to and harmonize with existing surroundings and structures. The Board of Directors has the absolute right to deny any requested changes which the Board of Directors reasonably determines do not conform to and harmonize with existing surroundings and structures. The provisions for architectural control contained in this Declaration shall be in addition to, and not in lieu of, the architectural control The Sages at Aspen Glen Declaration of Covenants 33 provisions contained in the Master Declaration. The granting of approval for proposed work hereunder shall not dispense with the requirement to also comply with the approval procedures set forth in the Master Declaration. All proposed construction, modifications, alterations and improvements shall be approved pursuant to this Declaration before being submitted for approval pursuant to the Master Declaration. ARTICLE 14 DURATION OF COVENANTS AND AMENDMENT 14.1 Term. The covenants and restrictions of this Declaration shall run with and bind the land in perpetuity, subject to the termination provisions of the Act. 14.2 Amendment by Declarant. Until the first Lot subject to this Declaration has been conveyed by Declarant by a recorded deed, any of the provisions, covenants, conditions, restrictions and equitable servitudes contained in this Declaration may be amended or terminated by Declarant by the recordation of a written instrument executed, by Declarant setting forth such amendment or termination. 14.3 Amendment of Declaration by Members. Except as otherwise provided in this Declaration, any provision, covenant, condition, restriction or equitable servitude contained in this Declaration may be amended or repealed at any time and from time to time, upon approval of the amendment or repeal by members of the Association holding at least seventy-five percent (75%) of the votes of members. The approval of any such amendment or repeal shall be evidenced by the certification by the members to the Board of Directors of the Association of the votes of members. The amendment or repeal shall be effective upon the recording in the real property records of Garfield County, of a certificate executed by the president or a vice-president and the secretary or an assistant secretary of the Association setting forth the amendment or repeal in full and certifying that the amendment or repeal has been approved by the members. Any amendment to the Declaration made hereunder shall be effective only when recorded in the real property records of Garfield County. All amendments hereto shall be indexed in the grantee's index in the name of Declarant and the Association and in the grantor's index in the name of each person executing the amendment. The Sages at Aspen Glen Declaration of Covenants 34 ARTICLE 15 COVENANTS RELATING TO THE MASTER DECLARATION 15.1 Master Declaration Matters. Each Owner, by accepting a deed to a Residential Unit, recognizes that (1) the Property is subject to the Master Declaration and (ii) by virtue of his ownership, he has become a member of The Homeowners' Association at Aspen Glen. Each Owner, by accepting a deed to a Lot or Residential Unit, acknowledges that he has received a copy of the Master Declaration. The Owner agrees to perform all of his obligations as a member of the Homeowners Association at Aspen Glen as they may from time to time exist, including, but not limited to, the obligation to pay assessments as required under the Master Declaration and other governing documents of The Homeowners Association at Aspen Glen. 15.2 Enforcement of Master Declaration. (a) The Association shall have the power, subject to the primary power of the Board of Directors of the Master Association, to enforce the covenants and restrictions contained in the Master Declaration, but only if said covenants and restrictions relate to the Property, and to collect assessments on behalf of the Master Association. (b) This Declaration is intended to supplement the Master Declaration as it applies to the Property. In addition to all of the obligations which are conferred or imposed upon the Association pursuant to this Declaration, the Bylaws or the Articles of Incorporation, the Association shall be subject to all of the obligations imposed upon it pursuant to the Master Declaration and the Bylaws of the Master Association. The Association and all committees thereof shall also be subject to all superior rights and powers which have been conferred upon the Master Association pursuant to the Master Declaration and the Bylaws of the Master Association. The Association shall take no action in derogation of the rights of, or contrary to the interests of, the Master Association. The Sages at Aspen Glen Declaration of Covenants 35 ARTICLE 16 GENERAL PROVISIONS 16.1 Restriction on Declarant Powers. Notwithstanding anything to the contrary herein, no rights or powers reserved to Declarant hereunder shall exceed the time limitations or permissible extent of such rights or powers as restricted under the Act. Any provision in this Declaration in conflict with the requirements of the Act shall not be deemed to invalidate such provision as a whole but shall be adjusted as is necessary to comply with the Act. 16.2 Enforcement. (a) Except as otherwise provided in this Declaration, the Board of Directors, Declarant, or any Owner shall have the right to enforce, by a proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Board of Directors of the Association, Declarant, or by any Owner to enforce any covenant or restriction contained in this Declaration shall in no event be deemed a waiver of the right to do so thereafter. (b) The Master Association shall be entitled to enforce the provisions of this Declaration to the same extent as the Association or any Owner. The failure of the Master Association to enforce any of the limitations, restrictions, conditions or covenants contained herein shall not constitute a waiver of the right to enforce the same thereafter. No liability shall be imposed on, or incurred by, the Master Association as a result of such failure. The prevailing party in any action at law or in equity instituted by the Master Association or the Association to enforce or interpret said limitations, restrictions, conditions or covenants, shall be entitled to all costs incurred in connection therewith, including without limitation reasonable attorney's fees. 16.3 Special Rights of First Mortgagees. First Mortgagees shall have all rights granted to First Mortgagees under the Master Declaration, specifically Sections 11.6, 11.7, 11.8 and 11.9. 16.4 Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provision which shall remain in full force and effect. The Sages at Aspen Glen Declaration of Covenants 36 16.5 Conflicts 'Between Documents. (a) In case of conflict between this Declaration and the Articles and the Bylaws of the Association, this Declaration shall control. In case of conflict between the Articles and the Bylaws, the Articles shall control. (b) The covenants, restrictions and provisions of this Declaration shall be cumulative with those of the Master Declaration; provided, however, in the event of conflict between or among the provisions of this Declaration, the Bylaws, Articles of Incorporation or rules and regulations pursuant thereto and the Master Declaration, its bylaws, articles of incorporation or rules and regulations, those of the Master Association shall be superior to those of the Association. The foregoing priorities shall not prevent enforcement by the Association of provisions or rules which are stricter than those of the Master Association. Executed this DECLARANT: day of , 2016. Gerd Zeller STATE OF COLORADO COUNTY OF GARFIELD )ss. The above and foregoing instrument was acknowledged before me this day of , 2016, by the Declarant, Gerd Zeller. Witness my hand and seal. My commission expires: The Sages at Aspen Glen Declaration of Covenants Notary Public 37 EXHIBITS TO DECLARATION OF COVENANTS, CONDITIONS, RESTRCITIONS AND EASEMENTS THE SAGES AT ASPEN GLEN