DECLARATION OF

COVENANTS, CONDITIONS AND ·RESTRICTIONS

FOR

MERIDIAN RANCH FILING NO. 2, ~OTS 1-350

ROBERT Cl J1808" BALINK El Paso County J CO

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DECLARATION OFCOVENANTS, CONDITIONS AND RESTRICTIONS

FORMERIDIAN RANCH FILING NO.2, LOTS 1-350

TABLE OF CONTENTS

GENERAL STATEMENT OF COVENANTS " 2

.ARTICLE 2 '" .~ , _ _ 2DEFJNITIONS ~ fI " : ;. ,. " " •••2

2.. 1 Armexable Property " "' ~ 22 ..2 Articles offucomoration ,. " 11 22.3 Assessment " ,. " , ,. ,. ~ 22.4 Bylaws ll ll ,. 22 5 County ,. ~ ".. ,. 32.6 Covenants 11 32..7 Declaration ).11 •• #< _ ,. 32.8 Declarant ll. ,. " 32.9 ·DesigrI ·Review Council ,. ). " 32.10 Design Stmdards _ "..32 11 Districts " 32.12 District Are·as · /1" •••••• 11 " ,. "" 42 .. 13 First Mortgage " " 42.14 First Mortgagee "' .." .- " " 42.15 Governing 'Documents ,. ,. ,.42.16 'hnprovement ,. ,.. 42.17 'hnprovement to Property ".11 42.18 Lease 52.19 Lot , 52.20 No-Build Zone #< ;. ,. 52.21 Notice of Completion ,. ;. "',. 52.22 Open Space ~ 52 23 Owner ,. , " ".. ). ~ " " 52..24 PenIlitted Exceptions " " # ,. 52.25 Person , " ,. ,. 62.26 Plat " -. 62.27 Property "' ,. 62.28 Record or Recorded ~ 62..29 Rules " ,.). , ,. 62.30 Supplemental Declar-ation .., 62.31 Supplemental 'Plat ,. ,. " 62.32 VA " _ " ,. ".,. 6

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.ARTICLE 3 ." " _ " 7GENERAL RESTRICTIONS APPLICABLE TO THE PROPERTY U H u u .-..7

3.1 MaintenaIlce ofProperty 73.2 ·PropertyUses ,.." , " 73.3 Construction Type " "' 73.4 Square Footage ". ". "' " 73.5 No Noxious or Offensive Activity uu.u u " uu8

3.6 No Hazardous Activities " "' 83.7 Building Materials " " 83.8 No Unsightliness ll 83.9 Weeds a11d 'Diseased Trees "."...". i> " ,. ~ •••83.. 10 Restrictions on Garbage and Trash u u u 93.. 11 Animals 10 " ,. .. ~ 93.12 No Temporary Structures _" ., ~ 93,,13 Restriction on Antennae, Poles, Utility Lines and Transmitters H UU 93.14 Restrictions on Signs and Advertising u u u u .. u 103.15 'Restrictiol1S on Mining or Drilling." ..- u U u " 103".16 MaintenaIlce ofDrainage " " " " 11.." ".103.17 Compliance "villi Laws and with the Rule "..d l 03.18 Furth.er Subdivision ofLots 1> 1> " 103.19 Restrictions on Sewage Disposal Systems..H H •• 113..20 Restrictions on 'Water Systems ..H u 113..21 Restoration in the Event ofDamage or Destruction h " " uuu 113 ..22 Velucle 'Repairs #. " " 113.23 Storage of Gasoline and Explosives. Etc" ~u u.H H h H l13.24 'Prohibited Vehicles ".113..25 Fencing Regulated and Controlled u.u "H•••u u 123.26 Air Conditioning and Heatitlg Equipment " u " 123 27 O~er's Right to 'Lease Lot u 123..28 Permitted Exceptions ll " " .. 1>. 133.29 Garage and ·Drive\vay ~ " 133..30 Garage Doors " " 133,,31 Builditlg Height Limitation u uU H h ~ ••• H.HU 133.32 Outdoor Lines "" .." " _ " "133.33 Parking 11. " " ; " '" 143 ..34 Sports and Recreational Eguipment u 143.35 Landscaping " 11. " 143.36 Golf Course.iO. II. " .. I>..,. " " _ 153.37 Golf Course Prohibited Activities , u 153.38 Open Space Use "'." , " ,. 163.39 Vie\vs ll ••• iO. .•" " -. JIo. 163.40 Control Dtlring Construction 16

AR.TICLE 4.." 1>. .,. " " " 16DESIGN REVIEW COUNCIL AND ARCHITECTURAL APPROVAL , ,."."" 16

4 .. 1 .Design Review Council II. , " I> " ••• 16

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4.2 Approval of Improvements Required u.~'Hu•••• .,.uu.uuu ••• a •••"HHu .. u •••uuu 174..3 Improvement to Property Defined Huu ~ H u u.uu 174.4 Membership of COUIlcil _." u " 174.5 Address ofDesign Review Council u .,..Hu Hh " ••" H 174.6 Submission ofPlans " lI ".,.lI .ll a ~ .. 174.7 Criteria for Approval lI .ll.; ~,. a .. ,.Il ; " •••11.184 .. 8 Design. Standards ..~ ,. ~.. a •• ,..lI ".,. ,. ".,. 184.9 Design Revie\v Fee ,. 1l 1l 1I,. 194.10 Decision ofCouncil ~ lI " 194.11 Faillrre ofCouncil to Act on Plans uuu uu ,.", ,.. ••• 194.. 12 Prosecution of Work After Approval ,. ,. 194.13 Notice ofCompletion.." , ,..,. ~ ll a " ,. 194.14 In.spection of Work .-.# 204.15 Notice ofNoncomplian.ce ,... a a.,. ,. 204.16 Failure of Council to Act After Completion " u ,.. u H ,..uu 204.17 No lInplied Waiver or Estoppel uu 204.. 18 Council Powerto Grant Variances .,. u u 204.19 Nonliability of COlUlcil Action HI' uuuh ~ u ,. uH.,. uu.u .,.u 214..20 Construction Period Exception ,. ,.. ,. 214.21 Scope of Judicial Review a "'.".,." ,. " ,. 21

ARTICLE 5 ,... ,. ,.,. 1I ,. 21ASSESSMENTS ~.., ~" ,. ,. ,. ,. 1I ,,2·1

5 .. 1 Creation of Association Lien and Personal Obligation to Pay Assessments......... ,. a ,. ,. ,.,. ,. 1I ,. ••• ,. 10. " 21

5.2 Purpose ofAs·sessments.I> III III III ~ " ,.225.3 Deternlmation ofAssessments I> .. ,. ,.. u 225.4 Apportionment ofExpenses " lI" ,. ~ .. u ,.".225.5 Annual Assessments " 11. , ,. ••••,..23.5.6 fustalhnents; Assessmel1ts ,. ,. 1I ~ " ,..,. 235.7 Special Assessments ,. a ,. ,. III .........................••••• 1I,. ,. 235.8 Lien Priority " 1I ~ " ,. ,. " 1I ••••••235 ..9 Reserves/Surplus 245.10 Effect ofNon Payment of Assessments ,.u uu uuu u u24

5.11 Working Capital Fund ,. " ,. lI ,. 24

ARTICLE 6 " ,. " ,. ,.., a 1I 25DEVELOPMENT AND THE DISTRICTS " ,. ,. , "." ,25

6.1 O\vner's Understanding " , 11 1I 256.2 Intergovermnental Agreement , ,. ,. ,... 1I ,.256.3 Special·Districts ~ ,. ,. " 25

ARTICLE 7 ,." ,. ,. ,. 1II" 1I .. 1II ,. ,. " 25DECLARANT'S RIGHTS AND RESERVATIONS ,. 25

7 ..1 Period of Declarant's Rights and Reservations u uu u 257.2 Declarant's Rights to Complete Development ofProperty a hu 26

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7.3 Declarant's Rights to Grant and Create Easements .uuu.. u ......~._H.u...... u .. ~ ....u267..4 Declarant's Rights to Convey Additional Property to ·Districts.'UUHU~"u'1'26

7.5 Annexation ofAdditional Properties ,. U H.I' .. UH • .,. UUU.UU •• U ,. hH277.6 Withdrawal ofAnnexed Property u IO-•••uu u,.u HI' _ ..287.7 Expansion ofPennitted Property Uses u.u ,.. uu•.•_u..u.. lJ uHuu.28

ARTICLE 8 lJ " ,. 10- 28MISCELLANEOUS " """ " 1' 28

8.1 Term of Declaration 1' 1' ••288.2 Amendment ofDeclaration by 'Declarant u u ,. 298..3 Amendment ofDeclaration by Owners .uu •• u uu H •• u •••• u u 298..4 Notices 10- "."".,. IO- ,. " ~29

8.5 Violations Constitute a Nuisance~ u lt u u. h .. ~ U.u 308.6 Enforcement ~ ~ IO- IO- ,.Al 308..7 Violations ofLaw iL ~.Il.~ " ~ " 308.8 Remedies Cmnulative ~ ,. I' ,. 308.9 Costs and Attorneys' Fees It ••• ,, I' ,.IO-•• ~ ,. 308.10 Limitation on Liability 308.11 Liberal futelpretation " 308,12 Governing Law "1' ,,,. 308.13 Severability 1' 10 " " ,. 1' ..318.14 Number and Gender ~ " " " 10- " 318.15 Cautions 'for Convenience 318.16 Mergers or Consolidatiol1s.HlJ u*'u ".. H " u · 318.. 17 Disclaimer Regarding " ,. ~ " " " 318.. 18 No Representations or W31Tanties H uuuu uHuuu , 31

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'DECLARATION OFCOVENANTS, CONDITIONS AND RESTRICTIONS

FOR.MERIDIAN RANCH FILING NO.2, LOTS 1-350

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS("Declaration") is made as of this 30th day of January, 2006, by GTL, Inc. a Californiacorporation doing business in Colorado as GTL DEVELOPMENT, INC.("Declarant")..

RECITALS

WHEREAS Declarant is the owner of that certain parcel of land located in the County ofEI Paso, Colorado, legally described as MERIDIAN 'RANCH FILING NO.. 2, -LOTS 1-350ACCORDING TO THE PLAT THEREOF RECORDED AT RECEPTION Nillv1BER205182525 on November 14, 2005, which is defined in this Declaration as the "Property.1IDeclarant is also the o\vner of those certain parcels of land located .in the County of El Paso,Colorado, legally described as MERIDIAN RANCH FILlNG NO.3, LOTS 351-832 andrvIERIDIAN RANCH FILING NO.6, 'LOTS 1-54. Although the plats for these parcels have notyet been recorded in the real estate records of the Clerk and Recorder for EI Paso, Colorado, it isthe intent of the Declarant that these plats will be recorded and that the identified Lots will besubject to tIns Declaration and subject to membership in and to the authority of the MeridianRanch Design Review COlUlcil No~ 2~ Supplements to this Declaration shall be recorded toevidence the armexation ofFilings 3 and 6. The Property is part of Meridian Ranch which is amaster planned cOlnmunity contemplated to contain 3,275 residential lots together withcommercial and industrial development While the Declarant intends to set up separatecommunities within the overall project and intends to record separate covenants, the Declarantreserves the right to annex additional"real property to the Property.

'WHEREAS this Declaration is executed (a) in furtherance of a common and general planfor the development of the Property, as hereinafter defined; (b) to protect and enhance thequality, value, aesthetic, desirability and attractiveness of the Property; and (c) to define certainduties, powers alld rigllts ofOwners ofLots within the Property.

WHEREAS, as this Declaration does not provide for property owned in common byowners nor for real or personal property to be leased by or to a oo1t o\vners association, there isno commonly-oWlled property or COl11Illon elements~ Ownership of a 'Lot does not require anOwner to pay for real estate taxes, insurance premiunls, maintenance, or improvement of otherreal estate described in this Declaration, nor for property to be owned by a writ ownersassociation. All Lots within the Property are expressly limited to residential use. Nonetheless, tothe extent this Declaration creates a "planned cOITll11lmity" as that term is defmed by C.R.S~

§§38-33~3-101 et seq., the charges levied pursuant to this Declaration are limited as set forthherein and, thus, constitute a limited expense planned community~ Therefore, this regime andthe 'Property would be subject only to C.R.S §38-33.3-105, §38-33,.3-106, and §38-33~3-107..

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ARTICLE 1GENERAL STATEMENT OF COVENANTS

Declarant for itself, its succ~ssors and assigns, hereby declares that the Property, and allproperty \vhich becomes subject to this Declaration in the manner .hereinafter provided from thedate the same becomes subject to this Declaration, shall be owned, held, transferred, conveyed,sold, leased, rented, hypothecated, encumbered, used, occupied, maintained, altered andimproved subject to the covenants, conditions, restrictions, limitations, reservations, exceptions,equitable servitudes and other provisions set forth in this Declaration. The provisions of thisDeclaration are intended to and shall run \vith the land and, until their expiration in accordancewith the terms hereof, shall bind, be a charge upon and inure to the mutual benefit of: (a) theProperty and all property which becomes part of the Property; (b) Declarant and its successorsand assigns; and (c) all Persons having or acquiring any right, title or interest in the Property orin any property which becomes part of the Property, or any Improvement thereon, and their heirs,personal representatives, successors or assigns.

.ARTICLE2DEFINITIONS

·Unless othetwise expressly provided herein, the following words and phraseswhen used in this Declaration shall have the Ineanings hereinafter specified.

2.1 Annexable Property..

That real property which is .part of the Meridian Ranch Overall PUD Development Planapproved by the Board of County Commissioners, El Paso County and \vmch may be annexedhereto and made a part of the Property as more particularly provided herein.

2.2 Articles of Incomoration.

The Articles of lncorporatioll ·for Meridian Ranch Design Review Council No.. 2, aColorado nonprofit corporation, as the same may be amended from time to time.

2.3 J\ssessnaent.

All items levied against a particular Owner or Lot pursuant to this Declaration, includingthose fines and other charges levied against an Owner or a Lot for a violation of the GoverningDocumellts, or incurred by the Association in enforcing the terms ofthis Declaration.

2..4 Bylaws.

The Bylaws of the Meridian Ranch Design Review Council No. 2 as the same may beamended frona time to time.

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2.5 County.

El Pa~o County, Colorado.

2.6 Covenants.

Collective term for all promises, restrictions, reservations, conditions, terms, easements,and rights-of-way specifically set forth or referenced in this Declaration and set forth in theGoverning Documents, as the same may be adopted and amended from time to time.

2.7 Declaration.

This instrument as it may be ~endedor supplemented from time to time.

2.8 'Declarant.

GTL, fuel" a California corporation doing business in Colorado as GTL Development,mc., its successors and assigns. A Person shall be deemed to be a "successor and assign" ofGTL Development, 1l1C. as Declarant only if specifically designated in a duly recordedinstrument as a successor or assign of 'Declarant under this Declaration and shall be deemed asuccessor and assign of Declarant only as to the particular rights or interests of Declarant underthis Declaration which are specifically designated in the written instrument. However, asuccessor to Declarant by consolidation or merger shall automatically be deemed a successor orassign ofDeclarant as Declarant under this Declaration.

2.9 Design Review Council.

The nonprofit corporation knowll as Meridian Ranch 'Design Review COlU1cil No.2, moreparticularly described in Article 4 ofthis Declaration.

2.. 10 Design Standards.

Collective reference to all \vritten design and development guidelines, policies andprocedures, application and review procedures and fee schedules, and all architectural controlswhich shall apply to all construction and all other improvement activities within the Property,and whicll are created by the Declarant or enacted by the Design Review Council Board, inaccordance with the Governing 'Documents.

2"11 'Districts.

Collectively the Meridian Ranch Metropolitan District and the Meridian ServiceMetropolitan District, both quasi-municipal corporations and political subdivisions of the StateofColorado,

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2.12 District Areas.

Those parcels of real property owned by one or more of the Districts. The Covenantsshall not apply to District Areas, as District Areas shall be controlled by the rules, regulations,and ordinances ofthe applicable District.

2.13 First Mortgage.

A mortgage, deed of trust, deed to secure a debt, or any other form ofsecurity instrumentaffecting title. to a Lot (collectively, "Mortgage"), which is subject only to govenunental liens,the lien for real property taxes, and other liens made superior by Colorado la\v#

2.14 First Mortgagee.

A bank, savings and loan association, insurance company, Community mortgageinveshnent trust, pension fund, agency of the United States Government, mortgage banker, theFederal National Mortgage .Association ("FNMA"), the Federal Home Loan MortgageCorporation ("FHLMC") or any other lender, or the Declarant, holding a First Mortgage.

2.15 Governing Documents.

Collective reference to those dOClUl1ents which govern the operation of the Council andthe Property, il1cluding: (a) its Articles of Incorporation; (b) its Byla\vs; (c) its Rules (includingthe Design Standards); (d) all recorded plats affecting the Property; and (e) this Declaration, asOlle or more of the same may be amended from time to time. Each and every provision of theGoverning Documents shall be given the force and effect as if set forth in this Declaration.

2# 16 Improvement.

All structures and improvements located upon or made to a 'Lot and any appurtenancesthereto of every type or kind, including, but not limited to, buildings, outbuildings, swimmingpools, hot tubs, spas, patio covers, a\vnings, painting of any exterior smfaces of any visiblestructure, additions, walkways, outdoor sculptures or artwork, play equipment/structures,gazebos, \-vater features, sprinkler pipes, garages, carports, roads, driveways, parking areas,fel1ces, screening walls, retaining walls, stairs, decks, patios, porches, sheds, .fixtures,landscaping, hedges, windbreaks, planthlgs, planted trees and shrubs, poles, signs, exterior tanks,tennis court, solar equipment, exterior air conditioning and water softener fixtures.

2.17 Improvement to Property.

Any change, alteration, or addition to any -Lot or to real or personal property locatedwithin tIle Property. "Improvement to Property" is more particularly defined in Section 4.2 ofthis Declaration.

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2.18 Lease.

Any agreement for the leasing or rental of a Lot, or any d\velling unit .located thereon andshall specifically include, without limitation, a month-to-month rental~

2.19 Lot.

A physical portion of· the Property \vhich is designated for separate ownership oroccupancy and the boundaries ofwmch are depicted upon the Plat together with a non-exclusiveeasement for use and enjoyment ill any property owned by the Districts. The term Lot shall notinclude any property o\vned by a pu~lic body,

2.20 No-Build Zone.

Those areas designated on the Plat or any Supplemental Plat which form parts of Lotswherein the Owner may erect fencing and landscaping but shall not erect any other pennanentstructures.

2,,21 Notice ofCompletion.

Written notice to the Design Review Council of the completion of any Improvement toProperty pursuant to Article 4 ofthis Declaration.

2.22 Open Space.

An unimproved parcel or area of land or water set aside, dedicated, designated orreserved for public or private use or enjoyment or for the use and enjoyment of owners andoccupants of land adjoining or neighboring such Open Space \vhich is owned and controlled bythe Meridian Service Metropolitall'District.

2 ..23 Owner.

The Person or entity, including Declarant, or, if more than one, all Persons or entitiescollectively, who hold fee simple title to a Lot, including sellers under' executory contracts ofsale and excluding buyers thereunder. For purposes of terminating or amending this Declarationas set forth in Article 7 below, each Owner shall have the right to exercise one vote for each Lotowned by it

2.24 Permitted Exceptions.

All encumbrances, liens, restrictions, easements and other items of record \vmch affectthe Property.

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2.25 Person.

A natural person, a corporation, a partnership, a limited liability company or any otherentity pe1TI1itted to hold title to real pr~pertypursuant to Colorado law.

2.26 Plat.

The land survey plat which depicts all or a portion of the Property and which _furtherdepicts and locates thereon the location of Lots and such other matters as may be required byla\v. The Plat, and the tenns and provisions thereof, are hereby incorporated herein by reference.The term "Plat" shall also include all amendments thereto and such other Supplemental Platsrecorded by the Declarant for the purposes ofannexing real property to the Property.

2.27 Property.

TIle real property legally described as Meridian Ranch Filing No.2, Lots 1-350 accordingto the Plat thereof recorded at Reception Nwnber 205182525 on November 14., 2005, and suchother real property as is made subject to the terms and provisions of this Declaration.

2.28 Record or Recorded.

The filing for -record of any document in the office of the Clerk and Recorder of theCounty.

2.29 Rules.

All rules, regulations, policies and procedures adopted by ,the Design Review Cotulcil'sBoard ofDirectors as amended..

2..30 Supplenlental Declaration.

A written instrument containing covenants, conditions, restrictions, reservations,easements or equitable servitudes, or any combination thereof and which is recorded incOlljUllction with the annexation of additional real prope~y to the Property..

2..31 Supplemental Plat.

Any land survey plat which is 'Recorded by Declarant for the purpose of annexing the realproperty described thereon to the Property..

2.32 VA.

The VA, FHA, HUD, GinnieMae, 'FreddieMac and shall include any rules and/orregulations promulgated by such govermnental housing entities

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ARTICLE 3GENERAL RESTRICTIONS APPLICABLE TO THE PROPERTY

All real property \vithin the Property shall be .held, used, and enjoyed subject ·to thefollowing limitations and restrictions and subject to the rights and reservations of Declarant setforth in this Declaration. The strict application of· the following limitations and restrictions inany specific case may be modified or waived in \vhole or in part by the Design Review Councilif such strict application would be unreasonably or unduly harsh under the circumstances. Anysuch modification or waiver must be in writing or be contained in \vritten guidelines or rulespromulgated by the Design Review CounciL Further, the Design ·Review Council shall adoptsuch rules as it determines are necessary or desirable, including adding entirely new restrictions.

3.1 Maintenance of Property.

No property \vithin the Property shall be pennitted to ·fall into disrepair and all real andpersonal property within the ·Property, including any Improvements, shall be kept and maintainedin a clean, attractive, and sightly condition. Maintenance, repair, and upkeep of each Lot shall bethe responsibility of the Owner of the Lot.

3..2 Property Uses.

All Lots shall be used :for ,private residential purposes. No dwelling unit erected ormaintail1ed within Property shall be used or occupied for any purpose other than for asingle-family residence. Nonvithstanding the .foregoing, business activities associated with thesale of Lots or residences constructed thereon shall be allowed. In additiop, in-home businessesnot involving the servicing of customers or employees shall be allowed, provided such activitiesare conducted solely witliin the residence and do not create or result in any umeasonabIe,unwarranted, or unlawful use or interference with public rights, including, but not limited to,ul1reasonable or Ull\varranted use or interference with public streets, rights-of-\vay, or sidewall{s,or in any other offensive or noxious activities.

3,,3 Construction Type.

All construction shall be new. No modular, mobile, or prefabricated homes or d\vellingunits of any type may be placed or located within the Community. No building previously usedat anotIler location nor any building or structure originally constnicted as a ·mobile dwelling orSllucture may be moved onto a Lot Architectural standards are established to the end that theProperties may benefit from the natural advantages of its particular location. While the standardsfor architectural style are flexible~ compatibility with the infonnal natural environment isrequired.

3.4 Square Footage.

Unless otherwise approved in writing by the Desi~ Review Council, no dwelling unitshall be erected on allY Lot which, exclusive of basements below garden level, ·porches, patios,covered but lUlenclosed areas, garages, and any attached accessory buildings has a gross livable

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I,·I

finished floor area less than 1,300 square feet for a single level or any ranch style d\velling unitwithin Filing No.2, Lots 1 through 278 and Lots 340 through 3~O; Filing No.3, Lots 467tlrrough 832; Filing No.6, Lots 1 through 54; and, not less than 1,500 square feet within FilingNo.2, Lots 279 through 339; and Filing No.3, Lots 351 through 466. For multi-level dwellingsthe gross livable finished floor area shall be not less than 1,500 square feet \vithin Filing No 2,Lots 1 through 278 and Lots 340 through 350; Filing No.3, Lots 467 tlrrough 832; Filing No.6,Lots 1 tlrrough 54; and, 2,000 square feet within Filing No.2, Lots 279 through 339; and ·FilingNo.3, Lots 351 through 466. Notwithstanding the above minimum square footage requirements,it: in the sole and absolute discretion of the Design Review COWlcil, the size, construction cost,architectural design or other features of a proposed dwelling unit cause it to be compatible toexisting dwelling units within the Property, the Design ·Review Council shall have the authorityto waive the minimum square footage requirements set forth in this Section.

3.5 No Noxious or Offensive Activity.

No noxious or offensive activity shall be carried on upon any property within theProperty, nor shall anything be done or placed thereon which is or may become a nuisance orcause an unreasonable embarrassment, disturbance, or annoyance to others. No offensive orhazardous activities may be carried on any Lot or in any dwelling unit. No atllloying lights,sound or odors shall be permitted to emanate from any dwelling unit or Lot.

3.6 No Hazardous Activities.

No activity shall be conducted on, and no Improvement shall be constructed on any Lotor any property within the Property which is or might be unsafe or hazardous to any ·Person orproperty. Witll0Ut linliting the generality of the foregoing, no fireanns shall be discharged uponany property within the ·Property an~ no open fires shall be lighted or pennitted on any propertywithin the Property except in a contained barbecue unit while attended and in use for cookingpurposes or witllin an interior or exterior fir~place designed to prevent the dispersal of burningembers.

3.7 Building Materials.

No building materials shall be stored on any Lot except temporarily during continuousconstruction or alteration of Improvements thereon, unless otherwise approved b.y the DesignReview Council.

3.8 No Unsightliness.

All unsightly conditions, structures, .facilities, equipment, objects, and conditions shall beenclosed within a structure, including snow removal equipment and garden or maintenanceequipment, except when in actual use..

.3.9 Weeds and Diseased Trees.

The entire area of every Lot (except approved landscape areas) shall be kept mowed to a

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.maximum height of 6 inches for Filing No~ 2, Lots 1 through 278 and 'Lots 340 through 350;Filing No.3, Lots 351 through 832; 'Filing No.. 6, Lots 1 through 54; and, 12 inches for Lots 279through 339.. In addition, each Lot shall be kept free from brush or other grO\vth or trash which,in the reasonable opinion of the Design 'Review Council, is unsightly or causes undue danger offire. The entire area of every Lot on which no building .has been constructed shall be kept freefrom plant or weeds infested with noxious insects or plant diseases and .from \veeds which, in theopinion of the Design Review Council, are likely to cause the spread of infestation or \veeds toneighboring property. Trees infested with mistletoe, pine beetle or other diseases shall beremoved by the Owner, To the extent an Owner removes existing trees or plants, the O,vnershall be responsible for promptly replacing any removed trees or plants \vith healthy trees andplants of the same general type.. Design Review Council approval is not necessary for installingreplacement plant materials of the same general type, however, if the Owner intends to' installplant materials of a different type Design Review Council written consent must be obtained..

3# 10 Restrictions on Garbage and Trash.

No refuse, garbage, trash, lumber, grass, shrub, tree clippings, plant waste, compost,metal, bulk materials, scrap, refuse or debris of any kind shall be kept, stored, or allowed toaccumulate on any Lot except within an enclosed structure or appropriately screened from view,except that any container containing such materials may be placed outside at such times as maybe necessary to pennit garbage or trash pick-up_ Burning oftrash is prohibited.

3.11 Animals.

No animals, live stock or poultry of any kind shall be raised, bred or kept on any Lot,except that domesticated birds or fisll and other small domestic animals \vill be allowed subjectto the Rules. No otller animals, except an aggregate ofnot more than tlrree domesticated animals(e.g., two cats alld one dog), \vill be pennitted within a Lot; provided that they are not kept, bred,or maintained for any commercial purpose. No animal of any kind shall be permitted which inthe opinion ofthe Design Review Council makes an unreasonable amount ofnoise or odor or is alluisance. All household pets shall be controlled by their Owner and shall not be allowed off theO\vner's Lot except when properly leashed~ Each Owner of a household pet shall be financiallyresponsible ~d liable for any damage caused by said household pet

3.. 12 No Temporary Structures.

No tent (except for occasional recreational use), treehouse, barn, shack, trailer, temporarystructure, or temporary building shall be placed upon any Lot except with the prior \vrittenconsent of the Design Review CounciL

3.13 Restriction on Antennae, Poles, Utility Lines and Transmitters.

Except for utility meters, pipes for \vater, gas, sewer, drainage or other purposes, allwires, poles, aerials, antennae, satellite dishes and other facilities for the transmission orreception of audio or visual Sigtla1S or electricity or other utility facilities shall be kept andmaintained, to tlle extent reasonably possible, underground or within an enclosed structure. No

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exterior radio antelUla, television antenna, or other antelll1a of any type shall be erected ormaintained \vithin the Property except as expressly pennitted by the federal law and inaccordance \vith the Design Guidelines. Specifically, no exterior radio antennae, televisionantenna, or satellite dish shall exceed one (1) meter in diameter and project higher than four (4)feet above the tallest projection ofthe dwelling unit or other improvement.

3.14 Restrictions on Signs and Advertising.

No sign, poster, billboard, advertising device, or display of any kind shall be erected ormaintained anywhere within the Property so as to be evident to public vie\v, except: (a) signs asmay be approved in writing by the Design Review Council; or (b) signs, posters, billboards orany other type of advertising device or display erected ·by Declarant incidental to thedevelopment, construction, ·promotion, marketing or sales ·of Lots \vitbin the Property orincidental to the Golf Course; or (c) one sign on each lot where a home is under constructionwhich sign advertises the builder; provided however, that the sign complies with the standardsrelating to dimensions, color, style, and location as determined ·from time to time by the DesignReview Council. A sign advertising a lot for sale or for lease may be placed on a Lot; provided,however, that standards relating to dimensions, color, style, and .location of such sign shall bedetennined from time to time by the Design Revie\v Council.

3.15 Restrictions on Mining or Drilling.

No property within the Property shall be used for the purpose of mining, quarrying,drilling, boring or exploring for or removing oil, gas, or other hydrocarbons, minerals, rocks,stolles, gravel or earth..

3.16 Maintenance ofDrainage.

There shall be no interference with tIle established drainage pattern over any propertywithin the Property. The "established drainage pattern" shall mean the drainage pattern whichexists at the tinle the overall grading of any property is completed. The established drainagepattern nlay include the drainage pattern: (a) from any property owned by the County or otherPersons over any Lot; (b) from any Lot over property owned by the County or other P~rsons;

from any property owned by the "Districts over any Lot; (d) from any Lot over any 'propertyowned by tile Districts; or (e) from any Lot over another ·Lot.

3,,17 Compliance with La\vs and with the Rules.

Nothing shall be done or kept on any Lot in violation of any law, ordinance, rule orregulation of any governmental authority having jurisdiction over the Property, nor shallanything be done or kept on any Lot in violation ofthe Rules ..

3.. 18 Furtller Subdivision ofLots.

The OWller of a Lot shall not further subdivide that Lot.

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3.19 Restrictions on Sewage Disposal Systems.

No cesspool, septic tank or other sewage disposal system shall be installed within anyLot..

3~20 Restrictions on Water Systems.

No individual water supply system shall be installed or maintained for any Lot All \vaterand water rights are or will be owned by one or more ofthe Districts.

3..21 Restoration in the Event ofDamage or Destruction.

ill the event of the damage or destruction of IDlY hnprovement on any Lot, the O\vnerthereof shall cause the damaged or destroyed hnprovement to be restored or replaced to itsoriginal condition or such other condition as may be approved in writing by the Design Revie\vCouncil, or the Owner shall cause the damaged or destroyed Improvement to be demolished andthe Lot to be suitably landscaped, subject to the approval of the Design Review Council, so as topresent a pleasing and attractive appearance. Such rebuilding or restoration must be commencedwithin three months after the damage or destruction occurs and thereafter diligently pursued tocompletion within a reasonable time not to exceed one year after the date the damage occurred orsuch longer period of time as may be approved by the Design Review COlUlcil due to unusualcircumstances..

3.22 Vehicle Repairs.

No maintenance, servicing, repair, disnlantling or painting of any type of vehicle, boat,machine or device nlay be carried on except within a completely enclosed structure \vhichscreens tIle sigllt and sound of such activity from the street and from other Lots..

3..23 Storage of Gasoline and Explosives. Etc..

No Lot shall be used for the storage of explosives, gasoline or other volatile and/orincendiary materials or devices except for gasoline or fuel for an Owner's lawn mower,snowblower and the like, not to exceed five (5) gallons, and propane in tanks not exceeding ten(10) .pounds may be maintained on an incidental basis on the Lot.

3.24 'Prohibited Vehicles.

No boat, camper (on or off supporting vehicles), camper shell, trailer, tractor, truck,industrial or commercial vehicle (both cabs or trailers)~ tqwed trailer unit, motorcycle, disabled,junk, or abandoned vehicles, motor home, mobile home, recre~tional vehicle, or any othervehicle, the primary purpose of which is recreational, sporting or commercial use, shall beparked or stored in, on, or about any 'Lot or street within the Property except within the garage orlU11ess such vehicles are concealed or screened from view as approved by the Design ReviewCouncil. For the purposes of this covenant, a one (1) ton or smaller vehicle cormnonly known asa piclrup truck shall not be deemed a connnercial vehicle or truck, provided that any attached

II

camper shell not exceed in height more than ten (10) inches above the cab portion of the vehicle.Prohibited vehicles shall not be allowed in any driveway or other exposed parking areas, or anystreet within the Property, except for the purposes of loading, unloading, short telID stops (e.g.between errands), making deliveries, washing and waxing vehicles, or emergency repairs("Transitory Use"), provided that no Transitory Use shall extend over more than twenty-fourhours during any seven (7) consecutive days. The Design Review Council shall have thecomplete au~ority to clarify and further define this Section 3.24 for safety or aesthetic reasons.

3 ..25 Fencing Regulated and Controlled.

No fences or walls shall be constructed on any Lot without the prior approval of theDesign Review CounciL All fencing must be in conformity with the standards and designspecifications adopted from time to time by the Design Review CounciL Fencing of front yardsis prohibited within the setback areas as defined by EI Paso County rules and regulations, or asShOWll on the recorded Plat; provided, however, that builders are allowed fencing within thesetback areas in connection with the use of model homes. Chain link fencing of any type isprohibited except as approved by the Design Review Council for use as "dog runs" notexceeding 200 square feet Fencing will be approved by the Design Review Council that isconsistent with other approved fencing and is compatible with the overall development. In thisregard, fencing standards "viII control the height, size, color, 19cation, and material compositionofall fel1ces and walls.

3__26 Air Conditioning and -Heating Equipment.

No heating, air conditioning or refrigeration equipment shall be placed, allowed ormaintained anywhere other than on'the ground; provided, however, that solar units 'meeting allgovernmental guidelines for residential uses may be located on the roof if such solar unit is builtinto and made an integral part of the -roof flashing or the structure of any house constructed onsuch Lot.

,3.27 Owner's Right to Lease Lot.

All Owners shall have the right to lease such Owner's 'Lot provided that: (a) all 'Leasesshall be in writing; (b) all Leases shall be -for a Lot with a certificate of occupancy issued for allImprovemel1ts thereon; (c) all Leases shall provide that the terms of the Lease and the lessee'soccupancy of the Lot shall be subject to the Governing Documents and that any failure by thelessee to comply with any ofthe aforesaid documents in any respect shall be a default under suchLease; (d) all Leases shall provide that the terms of the Lease and the lessee's occupancy of theLot shall be subject to the ordinances, 'regulations and fees of the Districts and that any failure bythe lessee to comply \vith any of the aforesaid obligations in any respect shall be a default underSUCll Lease; and (e) such Owner shall notify the Design Review Council innnediately upon theleasing of such Lot and register with the Council both the name(s) of the tenant(s) and ne\vmailing infonnation for notices to be sent directly to such Owner.

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3,.28 Permitted Exceptions.

By acceptance of a deed for a Lot within the Property, all Owners of Lots within theProperty ackno\vledge that all or portions of the Property may be subject to, or benefited by, thePennitted Exceptions, including, but not limited to, all easement and licenses described therein.

3.29 Garage and Driveway.

The dwelling units on Filing No.2, 'Lots .1 through 278 and Lots 340 through .350; 'FilingNo.3, Lots 467 tlrrough 832; Filing No.6, Lots 1 through 54, shall include at least a nvo (2) caror larger fully enclosed garage or such equivalent garage arrangements as may be approved bytIle Design Revie\v Council, The dwelling units on Filing No.2, 'Lots 279 through 339; FilingNo.. 3, Lots 351 tlrrough 466 shall include at least a three (3) car or larger fully enclosed garageor such equivalent garage arrangements as may be approved by the Design Review Council. Allprimary driveways must be constructed of concrete, colored concrete, textured concrete, brick,tile or slate, or a combination thereof. Dirt, gravel, and asphalt ,viII not be pennitted. Drivewaysmay not comprise more than sixty-five percent (65%) ofthe front portion ofany Lot.

For secondary garages constructed on 'Lots 279 through 339, the driveway materials forthe secondary chiveway shall complement the materials used on the primary driveway. Use ofgravel or asphalt for a secondary driveway is subject to approval by the Design Review CounciLNo gravel or asphalt shall be pennitted for driveway areas located within the setback area on aLot..

3.30 Garage Doors.

In order to further enhance the attractiveness of the Property and to discourage theft andvandalism, garage doors shall be .kept closed except when the garage is being actively llsed butmay be left open not more than 12" for ventilation pmposes.

3,.31 'Building Height Limitation.

No building or other structure shall exceed thirty-five (35) .feet in height (or themaximwn height permitted by the EI Paso County 'Land Development Code) from the lowestelevation of the natural grade along the perimeter of the structure to the mid-point of the highestgable of a pitched or hip roof or to the top of the coping on the flat roof without the priorpermission ofthe Design Review CounciL .

3.32 Outdoor Lines.

All outdoor clothes poles, clothes lines and other facilities .for drying or airing of clothingor household goods shall be placed or screened by fence or shrubbery so as .not to be visible fromneighboring property or adjacent streets.

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3.33 Parking,

Except as expressly heretofore provided, no part of the public street adjoining theProperty, no part of any Lot, and no .part of other public areas, unless specifically designated bythe Design Review Council, shall be used for the parking, storage or display of any vehiclesincluding private passenger vehicles and pickup trucks. Parking on driveways is permittedsubject to the provisions of Section 3A24 and further subject to the limitation that a total of two(2) vehicles belonging to a guest qr a resident of .Filing NolO 2, Lots 1 through 278 and 340tlrrough 350; Filing No.3, Lots 467 through 832; Filing NolO 6, Lots 1 through 54 may be ·parkedon a driveway at anyone time and a total of three (3) vehicles belonging to a guest or a residentof Filing No.2, Lots 279 through 339; Filing No.3, Lots 351 through 466, may be parked on adriveway at anyone time_ Temporary parking (less than 24 hours) of guests! vehicles for theduration of a social gathering shall.not be subject to these restrictions. All parking within theproperty is subject in all respects to the Rules.

3.34 Sports and Recreational Equipment.

Sports equipment, recreational equipment, play structures, and amusement structuresshall not be pennanently attached to the front portion of any Lot except that a basketball hoopmay be pennanently attached to the dwelling unit or placed on a pennanent pole.

3~35 Landscaping.

All landscaping plans must be submitted to the Design Review Council for approval andare subject to the procedures described in Article 4. Landscaping plans should be submitted tothe Design Review Council at least 45 days prior to the commencement of work to allo\v forDesign Review Council consideration and action. Within six (6) months after substantialcompletion of the Improvemellts 011 a Lot which are deemed to be substantially complete in themonths of March through August; within nine (9) months after substantial completion of theImprovements on a Lot which are deemed to be substantially complete in the months ofSeptember through February, or within any extension of that period granted by the DesignReview Council, all yards and open space on the 'Lot shall be landscaped and thereaftermaintained" All irrigated landscaping must be in compliance with the rules and regulations ofthe Districts ID.1d all landscaping must consist of a minimwn number of front yard trees andshrubs as ,required by the approved Meridian Ranch Overall 'PUD Development 'Plan, howeverthese requirements may be modified with the approval of the Design Review Council and theDistricts, as long as the modifications are in compliance with the Meridian ·Ranch Overall PUDDevelopment Plan. Landscaping may include partial areas ofnatural vegetation and preservationofnative grasses, trees, and shrubs. There shall be no prohibition or limitation on xeriscaping, ortlle installation or use ofdrought-tolerant vegetative landscapes nor shall cultivated vegetation berequired to consist exclusively or primarily of turf grass. The Design Review Council will, fromtime to time, promulgate landscaping standards and guidelines taking into account the size ofLotand location of other Improvements.

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3..36 Golf Course.

By acceptance of a deed to any Lot, each Owner acImowledges and agrees that owningproperty in a community with a golf course has benefits as \vell as detriments and that thedetriments include: (a) the risk of damage to property or injury to persons or animals .from golfballs which. are bit onto a Lot or other portions of the Property as a result of the design,construction, operation and maintenance of the golf course; (b) the entry by golfers onto a Lot orother portions of the Property used by an Owner to retrieve golf balls and/or other acts oromissions of persons using the golf course; (c) overspray in connection with the watering of theroughs, fairways and greens on the golf course; (d) noise from golf course maintenance andoperation equipment, including, \vithout limitation, compressors, blowers, mulchers, tractors,utility vellicles, mowers and pumps, all of which may operated at all times of the day or nightand continuously; (e) odors arising from irrigation and/or fertilization of the golf course; (f)disturbance and loss ofprivacy resulting from golf course traffic and golfers; (g) the existence ofwater hazards, ponds, and/or lakes on the golf course. Additionally, each Owner aclmowledgesthat pesticides and chemicals ·may be applied to the golf course throughout the year and thatreclaimed water, treated \vaste water and other sources of non-potable water 'may be used forinigation of the golf course. Each Owner hereby assumes such risks of owning propertyadjacent to a golf course and forever waives and relinquishes, and agrees not to institute anyaction or suit at law or in equity nor to prosecute any claim, demand or compensation against the .Declarant, its successors and assigns; other Lot owners; the golf course operator and manager;any builder or contractor; the Districts; any officer, director, manager, employee or agent of anyof the foregoing .for or on account of any damage, loss, or injury to either person or property, orboth, resulting directly or il1directly from the design, construction, operation, maintenance and/oruse of the golf course. Each Owner hereby agrees to take any necessary steps to maintainadequate hazard and other insurance policies to protect such Owner and such Owner's family,guest, invitees, agents, and employees against all such risks associated with the golf course.

3..37 Golf Course Prohibited Activities.

Owners, as well as their families, tenants) guests, invitees, and pets shall be obligated torefrain from any actions which would detract from the playing qualities of any golf course. Suchprohibited activities shall include, but shall not be limited to, burning materials \vhere the smoke,viII cross the golf course property (except for outdoor barbeques and enclosed fireplaces);maintenance of dogs or other pets under conditions \vhich interfere with golf course play due toloud barking or other actions; playing of loud radios, televisions, stereos or musical instruments;numing, bicycling, sl{ateboarding, rollerblacling, operating scooters, crossing, walking, sitting ortrespassing in any way on the golf course property; and searching for, collecting or picking upballs or sitni1ar interference with play" In addition, no ·Person shall, by virtue of this Declaration,11ave any rights to use any portion of the golf course, including cart paths, whether in DistrictAreas or 110t, without tIle prior written approval of the owner of the golf course or the manager"All golf course use, including the cart paths, is regulated and no easement or other license hasbeen reserved or granted over or across the golf course for the benefit of any Owners, theirfamilies, guest, invitees, or pets. This covenant is for the benefit of th~ golf course and personsplaying golfon said golf course~

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3 ..38 Open Space Use.

.AII Open Space areas are .for the use and benefit of Lot Owners and their guests~ OpenSpace areas are o\vned by Meridian Service Metropolitan District. Each user shall use the OpenSpace areas in a manner consistent with the Rules and consistent and so as not to interfere withthe enjoyment of other users or the privacy of residents. No motorized vehicles are permitted onany of the Open Space areas Wlless ,expressly authorized by the Rules or authorized in writing bythe Meridian Service Metropolitan District.

3.39 Views.

Neither the Declarant, the Districts, the developer or any contractor guaranties orr~presents that the Lots or any portion of the Property or any public facilities "viII be preservedwithout impainnent of the views and there shall be no obligation to prune or thin trees or otherlandscaping. Trees and other landscaping may be added to any portion of the Property or itspublic areas and the location, configuration, size and elevations of trees, bunkers, fairways andgreen on the golf course may be changed at any time whether the same diminishes or obstructsany view. Any express or implied easements for view purposes for the passage of light or air arehereby expressly disclaimed.

3,,40 ,Control During Construction.

During the period of construction of a dwelling unit or other Improvements on a Lot, theOwner of the Lot or his contractor shall comply with all construction rules and regulations whichthe Design Review Council may establish from time to time" In addition, the Owner of the Lotand his contractor sllall control dirt and dust, keep surrounding streets reasonably clean and keepconstruction debris confined to a trash receptacle. Trash shall be removed from the Lot on aregular basis.. All construction debris which is blown by the wind shall be collected and place inthe trash receptacle. Construction debris may not be dumped or left on any Lot or the Property.Contractors, subcontractors, and construction personnel shall not enter npon any other Lot or anyof the Property ,Area without the pennission of the Owner of such property~ The storage orplacing of construction materials on any street is prohibited at all times and no constructionequipment, construction trailers or construction vehicles shall be left overnight on any street,

ARTICLE 4DESIGN REVIEW COUNCIL AND ARCHITECTURAL APPROVAL

4.1 Design Revie,v CounciL

TIle Design Review COlUlcil acts in all matters by and through its Board of Directorspursuant to the Articles andBylaws~ The Design Revie\v Council shall have the power to retainand pay for the services of a manager or 'managers to undertake any of the management orfunctions for which tile Council has respol1sibility and may delegate any of its duties, powers,and functions. The Rules and Design Standards adopted by the Council shall be enforceable as ifset fourth in the Declaration.

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4_2 Approval ofhnprovements Required.

The approval of the Design Revie\v Council shall be required for any ~provement toproperty on any Lot except: (a) for any Improvement to Property made by Declarant; (b) whereapproval is not reasonably required to carry out the purposes of this Declaration; and (c) whereprior approval of Improvements to Property may be waived or certain Improvements to Propertymay be exempted in writing or under written guidelines or rules promulgated by the DesignReview CounciL

4_3 Improvement to Property Defined.

"Improvement to Property" requiring approval of the Design Review Council shall meanand include, \vithout limitation: (a) the construction, installation, erection or expansion of anybuilding, structure or other Improvement, including landscaping, utility facilities and fences; (b)the removal, demolition or destruction, by voluntary action, of any building, structure,landscaping, trees or other Improvement, (except that approval is not required for thereplacement of landscaping); (c) the grading, excavation, filling, or similar disturbance to thesurface of the land including, without limitation, change of grade, change of ground level,change of drainage pattern, or change of stream bed; and (d) any change or alteration of anypreviously approved Improvement to Property including any change of exterior appearance,color, or texture.. Improvements shall not be approved without an engineer's certification or otherassurance tllat damage \vill not occur to other Lots, Property, or District Areas,.

4.4 Memberslnp of Council.

All Owners shall be members of the Council and membership in the Design ReviewCouncil shall be appurtenant to ownership of a Lot The Design Review Council shall beoperated by a board of three (3) directors, all of whonl shall be appointed by Declarant until thelast Lot is sold and Improvements constructed thereon (which date is referred to as "turnover").Directors appointed by Declarant may be removed at any time by Declarant and shall serve .forsuch term as may be designated by Declarant or until resignation or removal by DeclarantDeclarant may at any time and from time to time change the number of directors of the DesignReview Council, but the number ofdirectors of the Design Review Council shall not be less thanthree (3) nor more than five (5). Within three months after turnover, all directors shall be e~ected

by the Owners in accordance with the Bylaws.

4,5 . Address ofDesign Review Council.

The address of the Design Review Council shall be as designated by the COlUlcil fromtime to time.

4.6 Submission ofPlans.

'Prior to commencement of work to accomplish any proposed Improvement to a Lot, thePerson proposing to make such Improvement to Property ("Applicant") shall submit to the

17

Design Review Council at its offices the applicable 'fees together with such descriptions, surveys,plot plans, drainage plans, elevation drawings, construction plans, specifications and samples ofmaterials and colors as the Design Revie\v Council shall request showing the nature, kind, shape,height, wid~, color, materials and location of the proposed Improvement to Property~ TheApplicant shall be entitled to receive a receipt for the same from the Design 'Review Councilorits authorized agent. The Design 'Revie\v Council may require submission of additional plans,specifications or other infonnation prior to approving or disapproving the proposed Improvementto Property. Until receipt by the Design Review Council of all required materials in cOlll1ectionwith the proposed Improvement to Pr~perty and its written aclmowledgment is received by theApplicant, tIle Design Review Council may postpone revie\v of any materials submitted forapproval.

4~7 Criteria for Approval.

The.Design Revie\v Council shall ~pprove any proposed Improvement to Property only ifit deems in its reasonable discretion that: (a) the Improvement to Property in the locationindicated will not be detrimental to the appearance of the surrounding areas of the Property as a\vhole; (b) the appearance of the proposed Improvement to Property will be in harmony with thesurrounding areas of the Property; (c) the Improvement to Property \vill not detract from thebeauty, wholesomeness and attractiveness of the Property or the enjoyment thereof by OWners;(d) the upkeep and maintenance of the proposed Improvement to Property will not become aburden on the any other party other than Owner; and (e) the proposed Improvement to Propertydoes not affect the drainage plan for the Property or any portion thereof: The Design ReviewCouncil may condition its approval of any proposed Improvement to Property upon the makingofsuch changes therein as the Design Review Council may deem appropriate.

4~8 Design Standards.

The Design Review Council may issue standards or 'rules ('~Design Standards") relatingto the procedures, materials to be submitted, fees and additional factors \vhich will be taken intoconsideration in connection with the approval of any proposed Improvement to ·Property. DesignStandards may regulate, among other things, the location and orientation of a dwelling unit on alot, site coverage, setbacks, building height, materials atld colors, roof lines, elevations, exteriorlighting, entrances, sidewalks and driveways, fencing, placement and screening of satellitedishes, patios, swimming pools, tennis courts, basketball backboards and other play eq~pment)

plant materials, vegetation and the removal of the same, and irrigation systems. The pesignStandards may specify circumstances under which the strict ~pplication of limitations orrestrictions under this Declaration will be waived or deemed waived in whole or in part becausestrict application of such limitations or restrictions would be unreasonable or unduly harsh underthe circumstances. The Design StaJ.ldards may waive the requirement for approval of certainImprovements to Property or exempt certain Improvements to Property from the requirement forapproval, if such approval is not .reasonably required to carry out the purposes of thisDeclaration. Different areas and types of dwelling units, residences or improvements may havedifferent 'Design Standards.

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4.9 Design Revie\v Fee..

The Design Revie\v Council may, through the Design Standards or otherwise, provide forthe payment- of a fee to accompany each request for approval of any proposed Improvement(except landscaping) to a Lot. The Design Review Council may provide that the amolUlt ofsuchfee shall be unifonn for similar types of proposed Improvements to Lots or that the fee shall bedetermined in any other reasonable ,manner including the estimated cost of the proposedImprovement to a Lot~

4.10 Decision ofCouncil.

Any decision of the ,Design Review Council shall be made within sixty (60) days afterreceipt by the Design Review Council of all materials required by the Design Review Council,unless such time period is extended 'by mutual agreement. The decision shall be in writing and ifthe decision is not to approve a proposed Improvement to Property, the reasons therefore sllall bestated. The decision of the Design "Review Council shall be promptly transmitted to theApplicant at the address furnished by the Applicant to the DesignReview Council.

4 .. 11 Failure of COlUlcil to Act on Plans.

Any request for approval of a proposed hnprovement to Property shall be deemedapproved unless disapproval or a request for additional information or materials is transmitted tothe Applicant by the pesign Review Council within thirty (30) days after the date of receipt bythe Design Review Council of all required materials.

4.. 12 Prosecution ofWork After Approval.

After approval of any proposed Improvement to Property, the proposed Improvement toProperty shall be accomplisl1ed as promptly aIld diligently as possible and in completeconformity with: (a) the description of the proposed Improvement to Property; (b) any materialssubmitted to the Design Review Council in connection with the proposed 'Improvement toProperty; and (c) any conditions imposed by the Design Review Council. If construction is notcompleted within eighteen (18) months after the date of approval or such shorter period asspecified in writing by the Design Review Council, or if construction is not completed inaccordance with the description and materials furnished to, and the conditions imposed by, theDesign Review Council, or if construction shall cease for a period of forty-five (45) days withoutthe consent of the Design Review Council, this shall constitute noncompliance with therequirements for approval of Improvements to Propert,Y. If construction ceases for a period offorty-five (45) days, the Design Review Council may give the owner written notice of such fact,and if construction does not resume within thirty days, the unfinished Improvements shall bedeemed a nuisance and shall be removed forthwith by and at the cost of the Owner~

4.13 Notice ofCompletion.

Upon completion of the "Improvement to Property, the Applicant may give written Noticeof Completion to the Design 'Review Council. Until the date of receipt of such Notice of

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Completion, the Design Review Council shall not be deemed to have notice of completion ofsuch Improvement to Property_

4_14 Inspection ofWork.

The Design Review Councilor its duly authorized representative shall'have the right toinspect any Improvement to Property prior to or after completion; provided that the right ofinspection shall tenninate thirty (30) days after the Design Review Council shall have received aNotice of Completion fraul Applicant.

4.15 Notice ofNoncompliance.

If, as a result of inspections or otherwise, the Design Review Council finds that anyImprovement to Property has been done in violation of the design standards or this Declarationor was not done in substantial confonnity with the description and materials .furnished to, andany conditions imposed by, tIle Design Review Council, the Design Revie\v Council shall notifythe Applicant ill writing of the noncompliance, which notice shall be given, in any event, \vithinthirty (30) days after the Design ReVie\v COlUlcil receives a Notice of Completion from theApplicant.. The notice shall specify the particulars of the noncompliance and shall require theApplicant to take such action as may be necessary to remedy the noncompliance_

4,16 Failure ofCouncil to Act After Completion.

If, for any reason other than the Applicant's act or neglect, the Design Review Councilfails to notify the Applicant ofany 11oncompliance within one (1) year after'rece~ptby the DesignReview Council of written Notice of Completion from the Applicant, the Improvement toProperty shall be deemed in compliance if the Improvement to Property \vas, in fact, completedas of the date ofNotice of Completion.

4.17 No Implied Waiver or Estoppel.

No action or failure to act b.y the Design Review Council shall constitute a \vaiver orestoppel with respect to future action by the Design Revie\v Council with respect to anyImprovement to Property_ The approval of the Design Review COWlcil of any hnprovement toProperty shall not be deemed a waiver of any right to withhold approval for any similarImprovement to Property or any similar proposals, plans, specifications or other materialssubmitted witll respect to any other Inlprovement to Property..

4~18 Council Power to Grant Variances.

The Design Review Council may authorize variances from compliance \vith any of theprovisions of this Declaration, including restrictions upon height, size, floor area or placement ofstructures or similar restrictions, when circumstances such as topography, natural obstructions,hardship, aesthetic or envirolll11ental consideration may .require such variances. Such variancesmust be evidenced in writing and shall become effective when signed by at least a majority ofthe members of the Design Review Council. If any such variance is granted, no violation of the

20

provisions of this Declaration shall be deemed to have occurred with respect to the matter forwhich the variance was granted; provided, however, that the granting of a variance shall notoperate to waive any of the provisions of this Declaration "for any purpose except as to theparticular property and particular provision hereof covered by the variance, nor shall the grantingofa variance affect in any way the Owner's obligation to comply with all governmental1aws andregulations affecting the property concerned, including, but not limited to, zoning ordinances andsetback lines or requirements imposed by any governmental authority having jurisdiction.

4.19 Nonliability of Council Action.

There. shall be no liability imposed on the Design Review Council, any member of theDesign Review Council, or Declarant for any loss, damage, cost, expense or injury arising out ofor in any \vay cOlUlected with the performance of the duties of the Design Review Council unlessdue to the willful misconduct of the party to be held liable. In revie~ng any matter, the DesignReview Council shall not be responsible for reviewing, nor shall.its approval of an Improvementto Property be deemed approval of the "Improvement to Property from the standpoint of safety,whether structural or othelWise, or such Improvement to Property's confonnance with buildingcodes or other govemmentallaws or regulations.

4.20 Construction Period Exception.

During the course of actual COllstruction of any permitted structure or Improvement toProperty nothhlg sllall be done which will result in a violation of any of the provisions of thisDeclaration upon completion of construction and nothing will be done which will constitute anuisance or unreasonable interference with the use and enjoyment of other property \vithin theProperty.

4A21 Scope ofJudicial Review.

The scope ofjudicial review'of any action taken by the Design Review Council pursuantto this Article 4, including but not limited to the promulgation and enforcement of DesignStandards and review) sllall be lilnited to cases of fraud, bad faith, or lack ofdue process.

ARTICLESASSESSMENTS

5.1 Creation of Association Lien and "Personal Obligation to Pay Assessments.

Each Owner, whether or not it shall be so expressed in any such deed or otherconveyance, shall be deemed to covenant and agree to pay Assessments to the Design ReviewCouncil, pUrSUaIlt to the Governing Documents. Such Assessments shall be the personalobligation of the Owner of such Lot at the time when the Assessment became due. TheAssessments shall be a charge on each Lot and shall be a continuing lien upon the Lot againstwmcll each such Assessment is made. If any Assessment is payable in installments, the fullamount of the Assessment is a lien from the time the first installment becomes due. The personalobligation to pay any past due sums shall not pass to a successor in title unless expressly

21

assumed by them. No Owner may become exempt from liability for payment ofthe Assessmentsby abandonment of the Lot against which the Assessments are made. All Assessments shall bepayable in the amounts specified in the levy thereof, and no offsets or reduction thereof shall bepennitted by any reason including, without limitation, any claim that the Design Review Councilis not properly exercising its duties and powers under this Declaration.

5..2 Purpose ofAssessments.

Assessments shall be used .for the purposes of promoting the health, safety, and welfareof Owners ~d residents, and in particular:

i. To enforce all provisions of the Governing Documents;

iL To exercise all rights and powers and to di.scharge all duties andobligations of the Design Review Council; and

iii, To fund any operating deficit or reserves the Association deemsnecessary to meet its financial obligations.

5..3 "Detennination ofAssessments.

Untillanuary 1 of the year immediately following the conveyance of the first Lot, themaximum annual Assessment shall be one hundred fi~y ($150.00) dollars per Lot per year. Fromand after January 1 of the year immediately following the conveyance of the first Lot, themaximum annual Assessment may be increased each year so as to cover the total costs ofenforcement including a reserve fund; provided ho\vever, that said Assessments will not increasemore than twenty percent (20%) from the previous year's Assessment; and further provided thatthe annual Assessment liability for each Lot, exclusive of optional user fees and any insurancepremiums paid by the Design Revie\v Council, 'may not exceed four hundred dollars, as adjustedbelow. The four-hundred-dollar limitation set forth in this Section 5.3 shall be increased·annually on July 1, 2004, and on July 1 of each succeedillg year in accordance with any increasein the United States Department of Labor Bureau of Labor Statistics final consumer price indexfor the Denver-Boulder consolidated metropolitan statistical area for the preceding calendar year..The limitation shall not be increased if the final consumer·price index for the preceding calendaryear did not increase and shall not be decreased if the final consumer price index for thepreceding calendar year decreased.

5.4 Apportiolll11ent of Expenses.

Except as provided below and elsewhere in this Declaration, all Assessments shall beassessed unifonnly against all Lots; ·provided, however, that because of the infrastructure that isbeing designed and constructed by Declarant, Lots owned by the Declarant shall not be subject toAssessments. Additionally, in the sole discretion ofthe Design Review Council:

i.. Any expense for services provided by the Design Revie\v Councilto an individual Lot pursuant to the Governing Documents or at the

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request ofthe Owner may be as~essed against that Lot.

It. If an yxpense is caused by the misconduct of an Owner, the .COlli1cil may assess that expense exclusively against that Ownerand that Lot, in addition to sums charged to "the Owner..

iiL Fees, charges, taxes, impositions, late charges, fines, attorneys'fees, collection costs and interest charged against an Owner areenforceable as Assessments.

5.5 Annual Assessments.

Assessments shall be made on an annual basis against all Lots based upon the advancebudget of the cash requirements needed by the Design Revie\v Council to provide ·for theadministration and performance of its duties during such Assessment year~ The omission orfailure of the Design Review Council to levy the Assessment for any period shall not be deemeda waiver, modification or a release of the Owners from their obligation to pay.

5.6 Installments; Assessments.

The Design Review Council may deteffi1ine that any Assessment shall be payable ininstallments and may also elect to accelerate the installments remaining for such Assessment.

5.7 Special Assessments.

The Design Review Council may at any tinle, from time to time, determine, levy andassess a Special Assessment applicable to that particular assessment year for the purpose ofdefraying, in whole or in part, payments .for any operating deficit and/or Wlbudgeted costs, feesand expenses of the Design Review CounciL

5.8 Lien Priority.

The Assessment lien is prior to all other liens and encumbrances on a Lot except: (i)liens and encumbrances recorded before the recordation of this Declaration; (ii) liens for realestate taxes and other govenllnental assessments or charges against the Lot; and (iii) a FirstMortgage on the Lot. This Section does not affect the priority of mechanics or materialmens'liens. The lien for Assessments under this Article is not subject to the provisions of anyhomestead exeluption as allo\ved by state or federal law. Sale or transfer of any Lot shall notaffect the lien for said Assessments except that the sale or transfer of any Lot pursuant to·foreclosure of any First Mortgage or any proceeding in lieu thereof, including deed in lieu offoreclosure, or cancellation or forfeitUre shall only extinguish the lien ofAssessment as providedby applicable la\v. No such sale, transfer, foreclosure, or any proceeding in lieu thereot:including deed in lieu of foreclosure, nor cancellation or forfeiture shall relieve any Owner .fromcontinuing liability for any Assessment charges thereafter becoming due nor from the lienthereof:

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5.9 Reserves/Surplus.

The Design Review Council may maintain a reserve fund and any surplus funds derivedfrom Assessments shall be transferred to the reserve fund or used for operations, in the solediscretion of the Design Review Council and by acceptance of a deed to his or her Lot, eachOwner hereby directs the Design Review Council to make this detennmation each year.

5..10 Effect arNon-Payment ofAssessments.

Any Assessmellt or any instalhnent thereof, which is not fully paid within ten (10) daysafter the due date thereof, shall bear interest at the rate of twenty-one percent (21 %) per .annumor at such lesser rate as may be set by the Design Review Council from time to time from the duedate, and the "Design Review Council may assess a monthly late charge thereon. Failure to makepayment within the sixty (60) days of the due date thereof shall cause the total amount of suchAssessment for tIle remainder of that fiscal year to become immediately due and payable at theoption of the Design Review Council. Further, the Design Review Council m~y bring an actionat law or in equity, or both, against any Owner personally obligated to pay such overdueAssessments, or monthly or other instalhnents thereof, and may also proceed to foreclose its lienagainst such Owner's Lot# An action at law or in equity by the Design Review Council againstan Owner to recover a money judgment for unpaid Assessments, or any monthly or otherinstalhnent thereof, may be commenced and pursued by the Council without foreclosing or inany way waiving the Assessment lien. The costs ofsuit, expenses and reasonable attorneys' feesincurred simply by virtue of the failure of the Owner to timely pay Assessments when due,including attolneys' fees and costs for preparing and recording any lien notice, and the DesignReview Council?s costs of suit, expenses and reasonable attorneys' fees incurred for any suchaction and/or foreclosure proceedings, shall be taxed by the court as a part of the costs of anysuch action or foreclosure proceeding and shall be recoverable from any O\vner personallyobligated to pay the same and from the proceeds of the foreclosure sale of such Owner's LotForeclosure or attempted foreclosure by the Design Review Council of its lien shall not bedeemed to estop or otherwise preclude it "from thereafter again foreclosing or attempting toforeclose its lien for any subsequent Assessments, or monthly or other installments thereof,which are not "fully paid when due. The Design Review COWlcil shall have the power and rightto bid on or purcllase any Lot at foreclosure or other legal sale, and to acquire and hold, lease,mortgage, and cast the votes appurtenant to such Lot, and to conveyor otherwise deal with thesame. The grantee of a Lot shall be jointly and severally liable with the grantor for all unpaidAssessments against the Lot \vhich accrued prior to the conveyance, without prejudice" to thegrantee's right to recover from the grantor the amounts paid by the grantee therefor.. Whether ornot the "DesignRevie\v Council "forecloses its lien, it may apply for the ex parte appointment of areceiver for a Lot and the Owner of such "Lot shall be liable for all costs and expenses in securingand maintaining this appointment, including receiver's fees, attorney's fees, and costs..

5,,11 Workillg Capital Fund.

The Design Review Councilor Declarant may require the first Owner of each Lot (otherthaIl Declarant) to make a non-refundable payment to the Council in an amount not to exceed$150.00, which SUln shall be held, without interest, by the Design Revie\v Council as a working

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capital fund.' Said working capital fund shall be collected and transferred to the Design ReviewCouncil at the time of closing of,th~ initial sale by 'Declarant of each Lot, as aforesaid, and shallbe -for the use and benefit of the Council. Such payment shall not relieve an O\vner from making'regular payments ofAssessments as the same become due. Upon subsequent transfer, a Lot maybe subject to a transfer fee as detennined by the Design Review Council for the payment ofadministrative expenses associated with the transfer.

ARTICLE 6DEVELOPMENT AND THE DISTRICTS

6.1 Owner's Understanding.

The property is subject to an overall PUD Development 'Plan that has been approved bythe Board of County Commissioners of the COW1ty. The PUD Development Plan is a generalproposal for the future developnlent and is not meant to be exact and may be subject tomodification. Ownership hereWlder implies a knowledge and acceptance of the existing PUDDevelopment Plan and an acquiescence in its future modification so long as said modificationdoes not substantially increase ,the overall density of the original PUD Development 'Plan or doesnot materially affect the Owners use ofits Lot..

6,,2 Intergovernmental Agreement.

All Owners recognize and lU1derstand that the Property is controlled by anintergovermnental agreement between the Meridian 'Ranch Metropolitan District and theMeridian Service Metropolitan District and that the design, construction, management andoperation of the Meridian Ranch Metropolitan District's infrastructure is perfonned by MeridianService Metropolitan 'District and that the Meridian Ranch Metropolitan District has anobligation, based upon its assessed valuation, to issue long term debt for the purpose of payingfor said infrastructure.

6..3 Special Districts.

The Owners further recognize and understand that the Property is within the boundariesof the Districts which supply various municipal and recreational services to the property and thatthe Owners' Lots are subject to the ordinances, regulations, and various fees and charges now inforce or which might be adopted by the Districts including a mill levy proposed at 25 mills witha cap of50 mills .. The Owners further recognize that the property is \vithin the bound-aries' of theWoodmen Road Metropolitan District which was organized to collect platting fees, buildingpennit _fees, and a mill levy proposed at 10 mills with a cap of25 mills.

ARTICLE 7DECLARANT'S RIGHTS AND RESERVATIONS

7.1 Period ofDeclarant's Rights and Reservations.

Declarant shall ,have, retain and reserve certain rights as hereinafter set forth in this

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Article 7 from the date hereof, until the later of: (i) the date which is seven (7) years followingthe recordation of this Declaration or (ii) the date which is five (5) years 'following therecordation of the most recently recorded Supplemental Declaration as set forth in Section 7.51'The rights and reservations hereinafter set forth shall be deemed excepted and reserved in eachdeed or other instrwnent by which any property within the Property is conveyed by Declarant_The rights, reservations and easements hereinafter set forth shall be prior and superior to anyother provisions of this Declaration and may not, without Declarant's prior written consent, bemodified, amended, rescinded or affected by any amendment of this Declaration. Declarant'sconsent to anyone such amendment shall.not be construed as consent to any other subsequentamendment. Declarant makes no assurances that Declarant will exercise the rights reserved byDeclarant herein with respect to all or any portion of the Property and Declarant reseIVes theright to exercise SUCll rights with respect to the Property in such time frames and in such amanner as Declarant deems lit in its sole and absolute discretion.

7.2 Declarant's Rights to Complete Development ofProperty.

No provision of this Declaration shall be construed to prevent or limit Declarant's rightsto (a) complete the development of property within the bOWldaries of the Property or \vithin theboundaries of Meridian Ranch; (b) construct or alter Improvements on any property o\vned byDeclarant within the Property, including temporary buildings; (c) maintain model homes,temporary buildings or offices for construction or sales purposes, or similar facilities on anyproperty owned by Declarant or builders within the Property; or (d) post signs incidental to thedevelopment, construction, promotion, marketing or sales of prope~y within the Pr~perty.

Nothing cont~illed in this Declaration shall limit the right of Declarant or require Declarant toobtain approvals to: (a) excavate, cut, fill or grade any 'property owned by Declarant or toconstruct, alter, demolish or replace any Improvements on any property owned by Declarant; (b)use any structure on any property owned by Declarant as a construction, model home or realestate sales office in cOl1l1ection with the sale of any property within the boundaries of theProperty; or (c) to require Declarant to seek or obtain the approval of the Design Review CotU1cilfor any such activity or Improvement to 'Property on any property owned by Declarant. Nothingin tlns Declaration shall limit or impair the reserved rights ofDeclarant as elsewhere provided inthis Declaration.

7~3 Declarant's Rights to Grant and Create Easements.

Declarant shall have and hereby reserves the right to grant or create temporary orpermanent easements for access, utilities, drainage, and water in, on, under, over and across Lotsowned by Declarant for any purpose incident to the development and sale of Lots within theProperty.

7.4 . Declarant's 'Rights to Convey Additional Property to Districts.

Declarant shall have and hereby reserves the right, but not the obligation to conveyadditional real property and Improvements thereon to the Districts at any time and from time totime.

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7.5 Annexation ofAdditional Properties.

Declarant hereby reserves the right, forthe period set forth in this Article 7, (for itself orany then owner of all or any portion ofthe Annexable Property) to annex additional real propertyto the Property in accordance \vith the following terms and provisions:

(a) Right to Annex Additional Property. Declarant (which for purposes ofthis Section only shall be deemed to include any then owner of all or any portion of theAnnexable Property) shall have and hereby reserves the right to a1lllex the Armexable Property tothe ·Property. In accordance with the foregoing, each Owner of a "Lot within the Property grantsto Declarant the right to annex the Annexable Property to the Property as more particularly setforth in this Article 7. Notwithstanding the foregoing, Declarant reserves the right to convey allor any portion of the Annexable Property to such third party or parties as Declarant deemsappropriate whether for purposes consistent with the Declaration or otherwise. Declarant makesno assurances that all or any portion of the Annexable Property will be annexed to the Propertyand Declarant reserves the right to annex all or any portion of the Atmexable Property to theProperty in such order and in such a manner as De~larant deems fit in its sole and absolutediscretion.

(b) Atmexation Procedure. The annexation of additional real property to theProperty by Declarant shall be effectuated by the filing of record with the Clerk and Recorder ofthe County of: (a) a Supplemental Declaration containing a legal description ofthe real propertyto be annexed to the Property and such other terms and provisions as Declarant may prescribe inaccordance with the terms and provisions hereof; and (b) a Supplemental Plat or map whichdepicts the real property to be annexed to the ·Property and which otherwise contains allinfonnation required by law. The Supplemental Declaration shall incorporate the covenants,conditiollS and restrictions set forth herein and contain such additional covenants, conditions,restrictions, limitations, reservations, exceptions, equitable servitudes and provisions asDeclarant may impose on such annexed property taking into account the unique and particularaspects of the proposed development of the real property encumbered by such SupplementalDeclaration. Declarant shall have the right to reserve in a Supplemental Declaration any and alldevelopment rights \vhich Declarant deems necessary or appropriate to complete thedeveloplnent of the property being annexed to the Property or which .is otherwise necessary tomeet the unique and particular aspects of such property"

(c) Effect ofExpansion. Upon recordation of a Supplemental Declaration anda Supplemental Plat, the property described therein shall be subject to all covenants, conditions,restrictions, limitations, reservations, exceptions, equitable servitudes and other provisions setforth in this Declaration. In the event any real property is annexed to the Property as providedherein, tIle definitions used in this .Declaration sllall automatically be expanded to encompass andreferto the Property as expanded..Accordingly, the term "Property" shall mean the real property.described herein plus all additional real property annexed thereto pursuant to a SupplementalDeclaration" The term "Lots" shall include those areas described as such herein and on the Platas well as those areas so designated within any Supplemental Declaration or upon anySupplemental Plat. References to this Declaration shall mean this Declaration as sosupplemented by any Supplemental Declaration. Upon recordation of a Supplemental

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Declaration and Supplemental Plat, every Owner ofa Lot in such annexed area shall, by virtue ofownership of such oLot, be a Member of the Districts and shall be entitled to the same rights andprivileges and subject to the same duties and obligations as any other Members of the Districts,which rights and obligations shall include, but shall not be limited to, the obligation to pay feesto the Districts and the fees required hereunder.

(d) Annexation of Additional Unspecified Real Estate. Declarant herebyreserves the right, for the period set forth in this Article 7, to annex additional, unspecified realestate to the Property to the fullest extent pennitted by law_ In the event that Declarant elects toannex such additional property, Declarant shall annex such property to the Community inaccordance with the provisions of this Article 7.

7.6 Withdrawal of Annexed Property.

Property for which a Supplemental Declaration has been recorded may be withdrawnfrom the Property by Declarant at any time prior to the time that any Lot contained therein hasbeen conveyed to a third party.. Such withdrawal may be accomplished by the execution,acknowledgment, and recordation of a "Notice ofWithdrawaL" The Notice ofWithdrawal shall:(a) be executed and aclmowledged by Declarant, as the Owner ofthe °property being withdrawn;(b) contain an adequate legal description of the property being withdrawn from the Property; (c)contain a reference to the Supplemental Declaration by which such property was annexed to theProperty including the date thereof and recording infonnation ofsuch Supplemental Declaration;(d) contain a statement and declaration that the such property is withdrawn from the Property andshall not be thereafter subject to this Declaration or the Supplemental Declaration for suchproperty_ The withdrawal ofsuch property from the Property shall be effective upon therecordation of the Notice ofWithdrawal and, upon the recordation ofthe Notice ofWithdrawal,the property described therein shall no longer be part ofllie Property or subject to thisDeclaration or Supplenlental Declaration far such PropertYlt

7..7 °Expansion ofPermitted Property Uses.

Notwithstanding anything to tIle contrary contained herein, Declarant reserves the right toexpand the permitted uses for Lots as provided in Article 3 hereof provided that such uses: (a)are consistent with Declarant's overall development plan for the Property; and (b) are inaccordance with County rules, regulations, requirements and approvals.

ARTICLE 8MISCELLANEOUS

8.1 Tenn ofDeclaration.

Unless amended as herein provided, each provision contained in this Declaration shallcontinue and remain ill full force and effect until December 31, 2050, and thereafter shall beautomatically extended for successive periods of ten (10) years each unless terminated by thevote, by written ballot, of Owners holding at least ninety-five percent (95%) of the voting powerof Owners of Lots entitled to vote. In the event this Declaration is tenninated, the tennination of

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this Declaration shall be evidenced by a tennination agreement ("Termination Agreement"), orratification thereot: executed by the requisite number of Owners. The Termination Agreementshall specify a date after which the Termination Agreement will be void unless recorded beforesuch date. The Termination Agreement shall be recorded and the termination of this "Declarationshall be effective upon such recording.

8~2 Amendment ofDeclaration by Declarant_

Until such time as Declarant has conveyed any portion of the Property to a third party,any of the provisions, covenants, conditions, restrictions and equitable servitudes contained inthis Declaration may be amended or terminated by Declarant by the recordation of a writteninstrument, executed by Declarant, setting forth such amendment or termination. Declarantreserves the right to unilaterally amend this Declaration in all circumstances permitted by lawand which do not conflict with VA guidelines. Notwithstanding anything contained within thisDeclaration, and to the extent pennitted by law, ifDeclarant detennines that any amendments tothis Declaration shall be necessary in order for existing or future Mortgages or other securityinstruments to be acceptable to the VA then Declarant shall have and hereby specifically reservesthe right and power to make, execute and record any such amendments without obtainingapproval of the Owners or Mortgagees (or any percentage thereot). Notwithstanding anythingcontained within this Declaration, during the period of Declarant control, amendments ofdocuments previously approved by the VA, must be subsequently approved by the VA.

8,,3 Amendment of Declaratioll by Owners.

Except as otherwise provided in this Declaration, any provision, covenant, condition,restriction or equitable servitude contained in this Declaration may be changed or ,repealed, andany such provision, covenant, condition, restriction or equitable servitude added to thisDeclaration at any time at.Id from time to time upon approval of the amendment by Ownersholding at least seventy-five percent (75%) of the voting po\ver of the O\vuers entitled to voteprovided that the Declarant so consents which consent must be obtained so long as the Declarantowns any Lot within the Property. The approval of any such amendment or repeal shall beevidenced by a certification executed by the requisite number of Owners, and, as provided in thisSection 8.3, by the Declarant. Any amendmellt to this Declaration made hereunder shall beeffective only when Recorded..

8.4 Notices.

Any notice permitted or required to be given under this Declaration shall be in writingand may be given either personally or by mail, telephone telecopier or telegraph. If served bymail, each notice shall be sent postage prepaid, addressed to any Person at the address given bysuch Person to tlle Declarant and/or Districts for the purpose of service of such notice, or·to theLot of such Person if no address has been given to the Declarant and/or Districts and shall bedeemed given, if not actually received earlier, at 5:00 p"m. on the second business day after it isdeposited in a regular depository of the 'United States Postal Service. Such address may bechanged from time to time by notice in writing to the Declarant and/or Districts.

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8..5 Violations Constitute a Nuisance.

Any violation of any provision, covenant, condition, restriction, and equitable servitudecontained in this Declaration, whether by act or omission, is hereby declared t~ be a nuisance andmay be enjoined or abated, \vhether or not the relief sought is for negative or affinnative action,by any Person entitled to enforce the provisions of this Declaration.

8.6 Enforcement.

Declarant, the Design Review Council, or any authorized agent of the Declarant orDesign Review Council, may enforce any of tIle provisions, covenants, -conditions, .restrictionsand equitable servitudes contained in the Governing Docmnents.

8.7 Violations of Law.

Any violation of any federal, state, municipal, or local law, ordinance, rule, or regulation,pertaining to the o\vnership, occupation, or use of any property within the Property is herebydeclared to be a violation of this Declaration and shall be subject to any and all enforcementprocedures set forth in this Declaration.

8.8 Remedies Cumulative.

Each remedy provided under this Declaration is cumulative and not exclusive.

8_9 Costs and Attorneys' Fees.

In any action or proceeding lUlder this Declaration, the prevailing party shall be entitledto recover its costs and expenses in connection therewith including reasonable attorneys' fees.

8.10 Limitation on Liability.

The Design Review Council, Declarant, and any member, agent, or employee of any ofthe same shall not be liable to any Person for any action or for any ·failure to act if the action orfailure to act was in good faith and without malice.

8.. 11 Liberal Intemretation.

The provisions of this Declaration shall be liberally construed as a whole to effectuate thepurpose of this Declaration.

8.. 12 Governing Law.

This Declaration shall be construed and governed under the laws of the State ofColorado..

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8.13 Severability.

Each of the provisions of this Declaration shall be deemed independent and severable,and the invalidity or unenforceability or partial validity or partial enforceability of the provisionsor portion thereof shall not affect the validity or enforceability of any other provision~

8~14 Number and Gender.'

Unless the context requires a contrary construction, the singular shall include the pluraland the plural the singular, and the masculine, feminine, or neuter genders shall each include themasculine, feminine, and neuter genders.

8.15 Captions for Convenience.

TIle titles, headings, and captions used in this Declaration are intended solely forconvenience of reference and shall not be considered in construing ~y of the provisions of thisDeclaration.

8.. 16 Mergers or Consolidations"

Upon a merger or consolidation ofthe Declarant with another entity, its properties, rights,and obligations may, by operation of law, be transferred to anotller surviving or consolidatedentity Of, alternatively, the properties, rights, and obligations of another entity may, by operationof law, be added to the properties, rights and obligations of the Declarant as a survivingcorporation pursuant to a merger. The surviving consolidated entity may administer and enforcethe covenants, conditions, and restrictions established by this Declaration governing theProperty, together with the covenants and restrictions established upon any other pr~perty, as oneplan"

8_17 Disclaimer Regarding.

DECLARANT HEREBY DISCLATh1S ANY OBLIGATION REGARDING THESECURITY OF ANY PERSONS OR PROPERTY WITHIN THE PROPERTY. ANY OWNEROF PROPERTY WITHIN THE PROPERTY ACKNOWLEDGES THAT DECLARANT ISONLY OBLIGATED TO DO THOSE ACTS SPECIFICALLY ENUMERATED HEREIN,AND IS .NOT OBLIGATED TO DO ANY OTHER ACTS WITH RESPECT TO THE SAFETYOR PROTECTION OF 'PERSONS OR PROPERTY WITHIN THE PROPERTY.

8.. 18 No 'Representations orW31Tanties.

NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS ORJJv1PLIED, SHALL BE DEEMED TO HAVB BEEN GWEN OR MADE BY DECLARANT ORITS AGENTS OR E11PLOYEES IN CONNECTION WITH ANY PORTION OF THEPROPERTY, OR ANY JJv1PROVEMENT THEREON, ITS OR THEIR. PHYSICALCONDITION, ZONrnG, COlVIPLIANCE WITH APPLICABLE 'LAWS, .FITNESS FOR'INTENDED USE, OR IN CONNECTION WITH THE SUBDNISION, SALE, OPERATION,

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MAJNTENANCE, COST OF MAIN"TENANCE, TAXES OR REGULATION THEREOF,UNLESS AND EXCEPT AS SHALL BE SPECIFICALLY SET FORTH IN WRITING IN ASEPARATE DOCUMENT~

IN WITNESS WHEREOF, .Declarant has executed this ·Declaration the day and year firstabove written..

GTL, INC. 'DBA GTL DEVELOPMENT, INC.

By; ~--:#-_-----

Title:----~-----~----

STATE OF CALlFORNIA ))

COUNTY OF SAN DIEGO )

On January 30 ,2006 before me Susan E. Eubanka Notary Public in and for said State, personally appeared .Paul K. Tchangpersonally mown to me (or proved to me on the basis of satisfactory evidence) to be theperson(s) whose name(s) is/are subscribed to the within instrwnent and aclmowledged to .me thathe/she/they executed the same in his/11ers/their authorized capacity(ies), and that by his/hers/theirsignature(s) on the instrument the person(s), or the entity upon behalfofwhich the persons acted,executed the instrwnent.

Signature~~~~T--JI.---"'~~ _.... e <"'t A d"> A <"> 0, <>00 dOn A 0, A 1:te..'SUSAN E. EUBANK~o .~ 4 COMM. ff 1394222 ~

CJ:eGo ~ •M NOTARY PUBLIC-CALIFORNIA G)O.. .., . SAN DIEGO coumy

i;:., ';'.Ov ';O~M:,.EWJEE:E·~

WITNESS my hand and official seal,

!

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