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HomeMy WebLinkAbout12_STAGE_ROAD_DESIGN_ASSOCIATION12.1Stage Road Design Association stage road design association section 12 12.2 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Contents Declaration of Covenants...................12.3 Articles of Incorporation......................12.23 Bylaws................................................12.27 Introduction The Stage Road Design Association provides design control for the entire project, including the 12 new free market residential lots, the ranch buildings, the ranch manager’s lot and the cultural use area. 12.3Stage Road Design Association Recording Requested By, And When Recorded Mail To: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. 112 North 1st Street, Suite C Aspen, Colorado 81611 Attn: J. Bart Johnson, Esq. Declaration of Architectural Restrictions for Stage Road Planned Unit Development/Subdivision 12.4 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Table of Contents Page i 1 Recitals..................................................................................................................................1 1.1 Property....................................................................................................................1 1.2 General Purpose ......................................................................................................1 1.3 CCIOA Exemption....................................................................................................1 2 Declaration.............................................................................................................................1 3 Definitions..............................................................................................................................1 3.1 Defined Terms..........................................................................................................1 4 The Association.....................................................................................................................4 4.1 Organization .............................................................................................................4 4.2 Membership..............................................................................................................4 4.3 Allocation of Votes....................................................................................................4 4.4 Co-Owners ...............................................................................................................4 4.5 Powers and Authority ...............................................................................................4 5 The ACC................................................................................................................................5 5.1 The ACC...................................................................................................................5 5.2 Number of and Qualifications for ACC Members.....................................................5 5.3 Appointment and Election.........................................................................................6 5.4 Term .........................................................................................................................6 5.5 Removal....................................................................................................................6 5.6 Officers .....................................................................................................................6 5.7 Compensation and Out-Of-Pocket Expenses ..........................................................6 5.8 Voting; Quorum ........................................................................................................6 6 Design Control.......................................................................................................................7 6.1 Approval Required....................................................................................................7 6.2 Consultants...............................................................................................................7 6.3 Schedule of Fees and Security Deposits .................................................................7 6.4 Design Guidelines ....................................................................................................7 6.5 Review Process........................................................................................................8 6.6 Review Standards ....................................................................................................8 6.7 Scope of Review.......................................................................................................8 6.8 Height and Floor Area Limitations............................................................................8 6.9 Maroon Creek Viewplane.........................................................................................8 6.10 Licensed Architects and Engineers..........................................................................9 12.5Stage Road Design Association Table of Contents Page ii 6.11 Estoppel Certificates.................................................................................................9 6.12 Construction Activity Mitigation ................................................................................9 6.13 Monitoring.................................................................................................................9 6.14 Liability......................................................................................................................9 6.15 Indemnification .......................................................................................................10 7 Enforcement ........................................................................................................................10 7.1 Compliance by Owners ..........................................................................................10 7.2 Fines, Costs and Fees of Enforcement ..................................................................10 7.3 Cumulative Remedies ............................................................................................10 7.4 No Waiver...............................................................................................................11 8 Assessments .......................................................................................................................11 8.1 Creation of Assessments........................................................................................11 8.2 Common Assessments...........................................................................................11 8.3 Reimbursement Assessments................................................................................11 8.4 Owners’ Obligations for Assessments....................................................................12 8.5 Late Charges and Interest......................................................................................12 8.6 Lien for Assessments.............................................................................................12 9 Amendment and Assignment ..............................................................................................13 9.1 Amendment of Declaration by Declarant................................................................13 9.2 Amendment of Declaration by Members................................................................13 9.3 Effectiveness of Amendment..................................................................................13 9.4 Assignment of Declarant’s Rights and Duties........................................................13 10 Miscellaneous......................................................................................................................14 10.1 Term .......................................................................................................................14 10.2 Interpretation ..........................................................................................................14 10.3 Governing Law .......................................................................................................14 10.4 Severability.............................................................................................................14 10.5 Number and Gender...............................................................................................14 10.6 Captions for Convenience......................................................................................14 12.6 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 1 Planned Unit Development/Subdivision Declaration of Architectural Restrictions for Stage Road Planned Unit Development/Subdivision THIS DECLARATION OF ARCHITECTURAL RESTRICTIONS FOR STAGE ROAD PLANNED UNIT DEVELOPMENT/SUBDIVISION is made as of the ____ day of ____________, 200__, by BAR/X RANCH LLC, a Colorado limited liability company. 1 Recitals 1.1 Property. Declarant is the owner in fee simple of the Property. 1.2 General Purpose. Declarant desires to subject the Property to the covenants, conditions and restrictions set forth in this Declaration to establish architectural and design standards governing development of the Property and provide a means to enforce such standards. 1.3 CCIOA Exemption. Pursuant to the limitations contained in Section 8.2.3, the Colorado Common Interest Ownership Act, C.R.S. § 38-33.3-101 et seq., does not and shall not apply to this Declaration or the Association. 2 Declaration Declarant hereby declares that the Property shall be owned, conveyed, encumbered, leased, improved, used, occupied and enjoyed subject to this Declaration. This Declaration shall: (i) run with the Property at law; (ii) bind all persons and entities having or acquiring any interest in the Property or any part thereof; (iii) inure to the benefit of and be binding upon every part of the Property and every interest therein; and (iv) inure to the benefit of, be binding upon, and be enforceable by Declarant and the Association. Notwithstanding the fact that as of the date of this Declaration, Declarant is the owner of all of the Property, Declarant does not intend for such ownership to result in, and such ownership shall not result in, the merger and/or termination of any of the covenants, conditions or restrictions created by this Declaration. 3 Definitions 3.1 Defined Terms. The following terms shall have the meanings given below: ACC: Is defined in Section 5.1. ACC Member: Is defined in Section 5.1. Allocation Percentage: For each Lot, a percentage derived from a fraction, the numerator of which is the number of votes allocated to the Lot pursuant to Section 4.3 and the denominator of which is the total number of votes allocated to all of the Lots within the Property pursuant to Section 4.3 . Application: Is defined in Section 6.1. Articles: The Articles of Incorporation of the Association, as the same may be amended from time to time. 12.7Stage Road Design Association Declaration of Architectural Restrictions for Stage Road 2 Planned Unit Development/Subdivision Assessments: Reimbursement Assessments and Common Assessments. Association: Stage Road Design Association, a Colorado nonprofit corporation, its successors and assigns. Buildings: Any permanent structures, or portion of a structure, built for the shelter or enclosure of human beings or property of any kind, but excluding fences and walls. Bylaws: The Bylaws of the Association, as the same may be amended from time to time. City: The City of Aspen, a municipal corporation of the State of Colorado. Common Assessments: Is defined in Section 8.2. Common Expenses: All costs and expenses incurred by the Association in the course of performing its duties and exercising its rights under this Declaration and enforcing the provisions of this Declaration, the Articles, the Bylaws and the Design Guidelines. Common Expenses shall not include any expenses of the Association that are recovered by the Association through the imposition of Application fees pursuant to this Declaration. Except in unusual or unanticipated circumstances, it is anticipated and intended that the operating costs of the Association will be covered in total by the revenue generated by the imposition of Application fees. Declarant: BAR/X Ranch LLC, a Colorado limited liability company, and any successor or assign of all or any portion of the rights of Declarant under this Declaration pursuant to Section 9.4. Declarant Control Period: That period of time beginning as of the date this Declaration is Recorded and ending on the sooner to occur of the following: (1) the 30th day following the date by which Declarant has conveyed all of the Lots owned by Declarant to Owners other than Declarant, provided that if Declarant makes a total assignment of its rights and powers as Declarant pursuant to Section 9.4 in connection with a sale of all of Declarant’s interest in the Property, then the assignee of such rights and powers shall be considered “Declarant” under this clause and the Declarant Control Period shall not expire by reason of such sale of all Declarant’s interest in the Property pursuant to Section 9.4; or (2) the date on which Declarant, in its sole discretion, voluntarily terminates the Declarant Control Period pursuant to a statement of such termination Recorded and signed by Declarant and acknowledged in the manner of a deed under Colorado law. Declaration: This document, together with the exhibits attached hereto, as amended from time to time. Design Guidelines: Is defined in Section 6.5. Development: Any site preparation; landscaping; earthmoving; excavation; construction; sign or signboard erection or alteration; construction, exterior change, modification, alteration, substitution or enlargement of any Building; paving; fencing; wall construction; or otherwise the making, alteration, addition or removal of any improvements of any kind or nature to any portion of the Property or the Buildings or structures thereon. Fathering Parcel: The Lot depicted and identified as “Lot F” on the Plat. 12.8 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 3 Planned Unit Development/Subdivision First Mortgage: A Recorded bona fide Mortgage which has first and paramount priority under applicable law with respect to the portion of the Property encumbered by it that is not used or made in an attempt to avoid the terms of this Declaration First Mortgagee: A Mortgagee which takes, owns or holds a First Mortgage. Lot: Each lot within the Property established by and depicted on the Plat, including, but not limited to the Fathering Parcel. Member: A member of the Association. The term “Membership” refers to the status of, and the rights and obligations associated with, being a Member. Mortgage: Any mortgage, deed of trust or other document pledging any portion of the Property as security for payment of a debt or obligation. Mortgagee: Any individual, corporation, partnership, trust, company, association or other legal entity which takes, owns, holds or receives a Mortgage. Owner: Every individual, firm, corporation, partnership, limited liability company or partnership, association or other legal entity, or any combination thereof, holding fee simple title of Record to any Lot from time to time. The term “Owner” shall not include any Mortgagee (unless and until such Mortgagee becomes the holder of fee simple title of Record to a Lot), the contract purchaser or vendee under any installment sale contract, or the contract purchaser under any other executory contracts for purchase and sale of the Lot. Plat: The subdivision plat for the Stage Road Subdivision as approved by the City and Recorded at Reception No. __________ on __________, 2003, as it may be amended and/or supplemented from time to time. Property: The real property described on Exhibit A attached hereto. PUD: The final PUD development plan for the Property, as approved by the City and Recorded at Reception No. __________ on __________, 2003, including all tables, guides, plans, exhibits and maps attached thereto and/or incorporated therein, as it may be amended and/or supplemented from time to time. Record: To record in the official real property records maintained by the clerk and recorder of Pitkin County, Colorado; the phrase “of Record” means having been recorded in such real property records. Reimbursement Assessments: Is defined in Section 8.3. Site Plan: Complete plans and specifications for Development proposed on a Lot showing the location of all existing and proposed Buildings and other improvements and such other items or matters as may be required by the ACC pursuant to this Declaration and the Design Guidelines. 4 The Association 4.1 Organization. The Association is or shall be a non-profit Colorado corporation created for the purpose of regulating Development on the Property pursuant to this 12.9Stage Road Design Association Declaration of Architectural Restrictions for Stage Road 4 Planned Unit Development/Subdivision Declaration, the Design Guidelines, the Articles and the Bylaws. Neither the Articles, the Bylaws nor the Design Guidelines promulgated by the ACC shall for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration. In the case of any conflict between this Declaration and the Articles, the Bylaws or the Design Guidelines, this Declaration shall control. 4.2 Membership. Each Owner shall become a Member of the Association upon becoming an Owner, and shall remain a Member so long as such person or entity is an Owner. If any Lot is owned jointly by two or more co-Owners, all co-Owners shall be Members. Membership in the Association shall automatically terminate when a person or entity ceases to be an Owner, whether through sale, intestate succession, testamentary disposition, foreclosure or otherwise. The Association shall recognize a new Owner as a Member upon presentation of satisfactory evidence of Record of the sale, transfer, succession, disposition, foreclosure or other transfer of a Lot to such Owner. Membership in the Association may not be transferred, pledged or alienated in any way, except to a new Owner upon conveyance of a Lot. Any attempted prohibited transfer of a Membership in the Association shall be void and shall not be recognized by the Association. 4.3 Allocation of Votes. With regard to Association matters that are properly presented for decision by the Members pursuant to this Declaration, the Bylaws and the Articles, each Lot shall be allocated one or more vote(s) in the Association as follows: (a) each Lot other than the Fathering Parcel shall have one vote; and (b) the Fathering Parcel shall have three votes. 4.4 Co-Owners. When there is more than one Membership attributable to a particular Lot because such Lot is owned by two or more co-Owners, then, while each such Owner shall be a Member, only one of such co-Owners shall be entitled to exercise the vote(s) allocated to such Lot pursuant to Section 4.4. Such co-Owners must designate one co- Owner to exercise the allocated vote(s) in a written instrument delivered to the Association prior to the exercise of such vote. Such written instrument shall remain in full force and effect until revoked by a written instrument filed with the Association or replaced by a subsequent written instrument filed with the Association replacing the designated co-Owner with another designated co-Owner. If such co-Owners fail to make a designation pursuant to this Section 4.4, then the exercise of the vote(s) allocated to the Lot owned by such co- Owners by any one of them shall be conclusively and irrefutably deemed the vote of all such co-Owners unless objected to by at least one of the co-Owners before final tabulation of the votes cast by all the Members in the particular election at issue. If such an objection is made, then the vote(s) of such co-Owners shall be void and shall not be counted in the particular election at issue. Fractional votes or voting shall not be allowed. 4.5 Powers and Authority. The Association shall have the power and authority to carry out and perform all its rights and duties under this Declaration, the Bylaws, the Articles and the Design Guidelines. Without in any way limiting the generality of the foregoing, the Association shall have the following specific powers: 4.5.1 Assessments. To determine, levy and collect Assessments. 4.5.2 Fees. To determine, levy and collect fees and charges pursuant to Section 6.4. 12.10 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 5 Planned Unit Development/Subdivision 4.5.3 Design Guidelines. To make, establish, promulgate and enforce, and in its discretion to amend or repeal and reenact, the Design Guidelines pursuant to this Declaration. 4.5.4 Enforcement. To enforce, on its own behalf and, in its discretion and sole election, on behalf of all the Owners, all of the covenants, conditions and restrictions set forth in this Declaration and the Design Guidelines, and to perform all other acts reasonably necessary to enforce any of the provisions of this Declaration and the Design Guidelines. 4.5.5 Insurance. To maintain any insurance coverage determined to be desirable or appropriate in the discretion of the ACC. 4.5.6 Borrow Money. To borrow money from Declarant or any other person for the purpose of carrying out any of its functions, powers or duties under this Declaration. 4.5.7 Delegation. The Association may delegate any of its powers or functions under this Declaration with regard to a designated portion of the Property to any other owners association that has jurisdiction over such portion of the Property pursuant to a declaration of covenants encumbering such portion of the Property, including, but not limited to, the Stage Road Homeowners Association, a Colorado nonprofit corporation. In no event shall any such delegation be made to an owners association in a manner that purports to give such association any powers under this Declaration over a portion of the Property that is not under the jurisdiction of such association. Any delegation made pursuant to this Section 4.5.7 shall be in the form of a Recorded written agreement signed on behalf of the Association and the owners association to which the delegation is being made. Such written agreement shall: (a) refer to this Declaration and the declaration establishing the other owners association by name and give the Recording information for both of them; (b) specifically identify the powers and/or functions being delegated to the other association and the duration of such delegation; (c) acknowledge the other association’s consent to such delegation and assumption of the powers and/or functions so delegated; and (d) identify any conditions or limitations placed on such delegation and the manner by which such delegation may be terminated. Such written agreement may contain any other provisions that are consistent with the terms of this Declaration. 5 The ACC 5.1 The ACC. All corporate powers of the Association shall be exercised by, and the business and affairs of the Association shall be managed by, the Stage Road Architectural Control Committee (the “ACC”), which shall have, pursuant to C.R.S. § 7-128-101(2), the authority and perform the duties of a “board of directors” as defined in the Colorado Revised Nonprofit Corporation Act. Except as otherwise specifically mandated by law or this Declaration, the Articles or the Bylaws, the ACC may and shall exercise all rights and powers of the Association without a vote of the Members. 5.2 Number of and Qualifications for ACC Members. The ACC shall have three members (each an “ACC Member”). Each ACC Member shall be a natural person who is eighteen years of age or older. An ACC Member need not be a Member of the Association 12.11Stage Road Design Association Declaration of Architectural Restrictions for Stage Road 6 Planned Unit Development/Subdivision or a representative of a Member of the Association. In addition, following the termination of the Declarant Control Period, one ACC Member shall be an architect licensed in the State of Colorado. 5.3 Appointment and Election. During the Declarant Control Period, Declarant shall appoint all of the ACC Members. After the termination of the Declarant Control Period, the Members of the Association shall elect all of the ACC Members. 5.4 Term. During the Declarant Control Period, the ACC Members shall serve at the pleasure of the Declarant; provided that upon the expiration of the Declarant Control Period the term of all ACC Members appointed by Declarant shall automatically terminate. The ACC Members elected by the Members of the Association upon the expiration of the Declarant Control Period shall serve initial terms as follows: one ACC Member shall be elected to a 3-year term; one ACC Member shall be elected to a 2-year term; and one ACC Member shall be elected to a 1-year term. After the expiration of the initial terms of the ACC Members elected by the Members of the Association, the regular term of office for each ACC Member shall be three years. 5.5 Removal. Any ACC Member appointed by Declarant may be removed, with or without cause, from the ACC at any time by Declarant. In no event shall the Members have the authority or power to remove an ACC Member appointed by Declarant. The Bylaws may provide for removal of ACC Members by vote of the Members after the end of the Declarant Control Period. 5.6 Officers. The ACC shall select a president of the Association from among the ACC Members. The president shall be the presiding officer of the ACC’s meetings. In the absence of the president from a meeting, the ACC Members present shall appoint an ACC Member to serve as acting president at such meeting. The ACC may appoint other officers of the Association as the ACC, in its discretion, deems necessary or as required by the Bylaws. The officers of the Association shall be chosen from among the ACC Members, and a single ACC Member may hold multiple offices. Meetings shall be held upon call of the president or any two ACC Members in such location as shall from time to time be set by the ACC. 5.7 Compensation and Out-Of-Pocket Expenses. Every ACC Member shall be entitled to reimbursement for customary and reasonable out-of-pocket expenses incurred in connection with such ACC Member’s services for the Association. In addition, each ACC Member who serves on the ACC in a professional capacity (e.g., a licensed architect, practicing landscape architect or professional engineer) shall be entitled to receive compensation at reasonable rates for his or her services. Such compensation shall be paid by the Association from the fees collected pursuant to Section 6.3. 5.8 Voting; Quorum. The affirmative vote of a majority of the total number of ACC Members shall constitute the action of the ACC on any matter. At least a majority of the ACC Members must be present in person at any meeting of the ACC to constitute a quorum, but in the absence of a quorum a single ACC Member may adjourn any meeting to a later time or date. 12.12 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 7 Planned Unit Development/Subdivision 6 Design Control 6.1 Approval Required. No Development shall take place on any Lot until a final Site Plan, architectural renderings, sample materials and all other plans and specifications for such Development as required by and in a form satisfactory to the ACC (an “Application”) have been approved by the ACC in writing pursuant to the Design Guidelines and this Section 6. The ACC may take one of the following actions with respect to an Application: (a) approve the Application if it complies with this Declaration and the Design Guidelines; (b) deny the application if it does not comply with this Declaration and/or the Design Guidelines; or (c) approve the Application subject to conditions that the applicant must satisfy to comply with this Declaration and the Design Guidelines. For any Development for which the approval of the City is required pursuant to the PUD or any ordinances, resolutions or regulations of the City, final approval shall not be sought from the City until such Development has been approved by the ACC pursuant to this Section 6. 6.2 Consultants. The ACC is authorized to retain the services of one or more architects, landscape architects, land planners, designers, engineers and other persons as reasonably deemed necessary or convenient by the ACC in order to advise and assist the ACC in performing its functions under this Declaration. The fees and other charges of such consultants’ services shall be paid promptly by the applicant as to whose Application such services are requested by the ACC. 6.3 Schedule of Fees and Security Deposits. Each applicant shall be required to pay the fees and other charges imposed by the ACC for reviewing an Application. The ACC shall establish and provide to applicants from time to time a current schedule of fees and other charges for the review and processing of Applications. The failure to provide any applicant with such schedule shall not limit the obligation of the applicant to pay the fees and other charges imposed by the ACC, including fees and other charges of consultants in connection with the review and processing of such applicant’s Application pursuant to this Section 6. As a condition precedent to the review and processing of any Application, the ACC may require an advance deposit from the applicant to be applied toward the fees and other charges reasonably estimated by the ACC to be incurred for the review and processing of such Application. The application fees imposed by the ACC shall be sufficient to cover the reimbursement and compensation of ACC Members pursuant to Section 5.7. In addition, as a condition precedent to the final approval by the ACC of any Application, the ACC will have the authority to require one or more security deposits (the amount of which shall be in the sole discretion of the ACC) to secure the applicant’s performance of, and compliance with, the terms of this Section 6, including, without limitation, any conditions concerning completion of required landscaping, mitigation of construction impacts outside the designated building envelope and required “green” construction commitments. 6.4 Design Guidelines. The ACC shall adopt and promulgate rules and standards for Development consistent with this Declaration and the PUD that, without limitation, may establish: (a) design themes, standards, requirements and regulations for one or more particular areas of the Property; (b) lighting and landscape themes, standards, requirements and regulations for one or more particular areas of the Property; (c) specific and individualized design, lighting, landscaping and architectural standards for Development proposed on any Lot; (d) Site Plan standards for Development proposed on any Lot, including, but not limited to building and landscaping envelopes; (e) standards and rules governing and addressed to the matters within the scope of review of the ACC pursuant to Section 6.7; (f) general construction procedures regarding construction activities on the 12.13Stage Road Design Association Declaration of Architectural Restrictions for Stage Road 8 Planned Unit Development/Subdivision Property; and (g) the procedures to be followed and the materials to be submitted as part of an Application in order to apply for approval from the ACC for proposed Development on any Lot (the “Design Guidelines”). The Design Guidelines may be amended from time to time by the ACC so long as they remain consistent with the PUD and this Declaration. 6.5 Review Process. The process for review by the ACC of all Applications shall be as set forth in the Design Guidelines and shall generally consist of a three-step review process comprised of (a) an initial informal conference and site visit, (b) sketch Site Plan review and (c) final Site Plan review. 6.6 Review Standards. All Development on any Lot and all decisions of the ACC with respect to any Application shall comply with this Declaration, the PUD and the Design Guidelines. 6.7 Scope of Review. The following aspects of any Development proposed to be undertaken on a Lot shall be within the scope of review of the ACC: All aspects of the proposed Development relating to: (i) size; (ii) bulk; (iii) fenestration and articulation of exterior facades; (iv) the type, style, size, configuration and power of exterior lighting fixtures; (v) means of ingress and egress and vehicular access to Lots; (vi) drives and drive lanes; (vii) the color, quality, type and texture of exterior construction materials, including roofing materials; (viii) location, orientation and configuration of any Buildings on a Lot; (ix) compatibility and harmony with the topographical features of the surrounding land; (x) compatibility and harmony with the architectural features of surrounding Buildings; (xi) consistency with the design requirements, if any, of the applicable area of the Property; (xii) consistency with other Development on the same Lot; (xiii) site development and site preparation; (xiv) location of parking; (xv) landscaping (including location of plant materials and method and location of irrigation for agricultural easement areas and urban landscape areas in a manner consistent with the PUD); (xvi) use of passive solar design; (xvii) protection of viewplanes; (xviii) availability of snow storage; (xix) provisions for storm water drainage and retention and the prevention of erosion; (xx) plant and grass material selection; (xxi) irrigation; (xxii) signage; (xxiii) exterior furnishings; (xxiv) effect on existing irrigation systems methods; (xxv) fencing; (xxvi) sustainability, including energy efficiency, water conservation and use of so-called “green” construction methods and materials (including interior materials); (xxvii) protection of environmentally sensitive areas; (xxviii) height of any Buildings; (xxix) allocation of floor area between floor levels; (xxx) protection of occupants’ health and avoidance of interior environmental pollution; and (xxxi) the use of berming and landscaping to screen the visibility of Buildings. 6.8 Height and Floor Area Limitations. The height of each Building, as measured from the undisturbed grade to the highest point of the Building (including any chimneys or other extensions above the highest point of the roof of the Building), shall not exceed 30 feet. In addition, at least two-thirds of the total above-grade floor area of any Building that is a dwelling must be located on the first floor of such Building; no more than one-third of such total above-grade floor area may be located on any upper floor of the Building above the first floor. 6.9 Maroon Creek Viewplane. No Improvements on any Lot shall extend above the Maroon Creek viewplane as depicted and described on the Plat. Prior to constructing any Improvement on any Lot, the Owner of such Lot shall obtain and submit to the ACC for review a site specific analysis by a certified engineer or surveyor demonstrating that the proposed Improvement will not extend above the Maroon Creek viewplane. The City shall 12.14 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 9 Planned Unit Development/Subdivision be an additional beneficiary of the Maroon Creek viewplane restriction contained in this Section 6.9 and may enforce such restriction. 6.10 Licensed Architects and Engineers. The ACC shall require that (a) a licensed architect design any proposed Development on a Lot, and (b) a Colorado licensed engineer perform all soils and geological studies and design the structural elements of any proposed Development on a Lot. 6.11 Estoppel Certificates. The ACC shall, upon the reasonable request of any interested party and after confirming any necessary facts and receipt of any reasonable fee imposed by the ACC, furnish a certificate with respect to the approval or disapproval of any Application for Development on a Lot or the status thereof. Such certificate shall address whether a given Application was approved, approved with conditions or denied or is still pending. Any person or entity, without actual notice to the contrary, shall be entitled to rely on said certificate with respect to all matters set forth therein. 6.12 Construction Activity Mitigation. In addition to any other conditions or limitations the ACC may impose, the ACC may require that during any construction period all construction activity shall comply with the PUD and the ACC’s reasonable requirements as to: (a) dust control; (b) screening of construction activity and storage areas, including temporary waste disposal areas; (c) construction traffic patterns; (d) keeping adjacent drive lanes, roadways and property free of dirt and other construction debris; (e) maintaining access to and from adjoining portions of the Property; (f) maintenance; (g) noise; (h) any hazardous materials transportation, handling or disposal; (i) preventing or limiting the contamination of irrigation water; (j) placement and maintenance of temporary construction trailers; and (k) avoiding damage and impacts outside any designated building or landscaping envelope; provided, however, that nothing herein shall deny to any Owner the right to use such Owner’s Lot for the temporary storage of construction equipment and materials during the continuance of construction activity, subject to the reasonable requirements established by the ACC pursuant to this Section 6.12. 6.13 Monitoring. The ACC or its designated representative may monitor and conduct on-site inspections of any Development on a Lot to the extent required to determine that the work complies with this Declaration, the Design Guidelines and any applicable approvals, conditions or construction procedures issued, imposed or prescribed by the ACC. The ACC or its designated representatives may enter upon any Lot at any reasonable time, for the purpose of observing the progress, status or completion of any Development. 6.14 Liability. Declarant, the Association and the ACC, and their respective officers, directors, members, partners, employees, agents and consultants, shall not be responsible or liable for any defects in any plans or specifications submitted, revised or approved under this 6, nor for any defects in construction pursuant to such plans or specifications. Approval of plans and specifications under this Declaration shall not constitute any representation by Declarant, the Association or the ACC, their respective officers, directors, members, partners, employees or consultants that such plans or specifications are in compliance with applicable governmental regulations and other codes and shall not relieve any Owner of its obligation to comply with applicable laws, regulations and codes. In addition, neither the ACC nor Declarant, their respective successors or assigns, shall be liable in damages to anyone applying for Development approval, or to any Owner affected by this Declaration, by reason of mistake in judgment, negligence or nonfeasance arising out of or in connection with the approval, disapproval, approval with conditions, or failure to approve any plans or specifications for such Development. 12.15Stage Road Design Association Declaration of Architectural Restrictions for Stage Road 10 Planned Unit Development/Subdivision 6.15 Indemnification. The Association shall indemnify each individual who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Association), by reason of the fact that such individual is or was an ACC Member or an officer, agent or employee of or consultant to the Association, against costs, claims, liabilities, expenses (including expert witness and attorneys’ fees), judgments, fines and amounts paid in settlement which are or have been actually and reasonably incurred by such individual in connection with such threatened, pending or completed action, suit or proceeding if such person acted in good faith and in a manner such person reasonably believed to be in the best interest of the Association, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent shall not of itself create a presumption that the person did not act in good faith and in a manner which such individual reasonably believed to be in the best interest of the Association and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful. To the extent permitted by law, the Association may provide such other and additional protection (such as providing directors’ and officers’ liability insurance) and indemnification to the extent set forth in the Articles, Bylaws or a resolution of the ACC. 7 Enforcement 7.1 Compliance by Owners. Each Owner by acceptance of its deed or other instrument of conveyance or assignment agrees to comply strictly with the provisions of this Declaration, the Articles, the Bylaws, the Design Guidelines, and the decisions and resolutions of the ACC pursuant thereto. The Association and Declarant shall have the right and power to enforce the provisions of this Declaration and the Articles, the Bylaws, the Design Guidelines, and the decisions and resolutions of the ACC pursuant thereto. The Association and Declarant may take such actions as are necessary and appropriate to cause such compliance by each Owner. Without limiting the generality of the foregoing, the Association and the Declarant shall have the power to enforce the provisions of this Declaration and the Articles, the Bylaws, the Design Guidelines, and the decisions and resolutions of the ACC pursuant thereto, by any action at law or in equity. In addition, The Association shall have the right to impose fines against any Owner who fails, within a reasonable time after written notice from the Association, to cure any violation of this Declaration, the Design Guidelines or any decisions of the ACC. Such fines may be in an amount not exceeding $10,000.00 per violation (provided that each day that a violation continues after the last day of the cure period granted by the Association in a written notice to the Owner shall be considered a separate violation), and shall be imposed by the Association in relation to the severity of the violation, as determined by the ACC in its reasonable discretion. 7.2 Fines, Costs and Fees of Enforcement. All fines imposed by the Association, attorneys’ fees and other fees, expenses and costs of enforcing this Declaration, the Articles, the Bylaws, the Design Guidelines, and the decisions and resolutions of the ACC, incurred by the Association (whether or not any suit or action shall be commenced and whether or not the same proceeds to judgment) shall be assessed as a Reimbursement Assessment against the Owner found to be in violation. 7.3 Cumulative Remedies. All remedies of the Association and Declarant provided herein or at law or in equity shall be cumulative and not exclusive. Nothing in this 12.16 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 11 Planned Unit Development/Subdivision Declaration shall be deemed to grant, imply or confirm any right or remedy of enforcement in any individual or entity other than the Association and Declarant. 7.4 No Waiver. The failure of the Association or Declarant to enforce any of the conditions, covenants or restrictions contained in this Declaration shall in no event be deemed to be a waiver of the right to do so for subsequent violations or of the right to enforce any other conditions, covenants or restrictions contained in this Declaration. 8 Assessments 8.1 Creation of Assessments. The Association has the authority to levy Assessments in such amounts as the ACC may authorize from time to time in accordance with this Declaration. There shall be two types of Assessments: (a) Common Assessments as described in Section 8.2; and (b) Reimbursement Assessments as described in Section 8.3. Each Owner is deemed to covenant and agree to pay the Assessments. 8.2 Common Assessments. The Association shall have the power to levy assessments against the Lots to pay the Common Expenses, if any, and such assessments shall be “Common Assessments.” Common Assessments, if assessed, shall be calculated, paid and adjusted in accordance with the following provisions: 8.2.1 Calculation. The Association shall levy Common Assessments against all Lots in proportion to the Allocation Percentage of each Lot, such assessments to be set at a level which is reasonably expected to produce during any given fiscal year total income for the Association equal to the total Common Expenses incurred by the Association during such fiscal year. In determining the total funds to be generated through the levy of Common Assessments, the Board shall consider other sources of funds available to the Association, including any surplus from prior years and any income expected to be generated from fees and charges pursuant to Section 6.3 and Section 6.11. Nothing in this Section 8.2.1 shall require the Association to levy Common Assessments. 8.2.2 Adjustment. To the extent the Association estimates or determines that payments of Common Assessments during any fiscal year will be inadequate or more than required to satisfy the Common Expenses for the balance of such fiscal year, the Board may increase or decrease the Common Assessments for the balance of the fiscal year by giving not less than 30 days’ prior notice to all Owners. 8.2.3 CCIOA Limitation. It being the intent of Declarant that this Declaration not be a “declaration” as defined in the Colorado Common Interest Ownership Act, under no circumstances shall the Association use any of the Common Assessments collected from the Owners to pay for any of the real estate taxes, insurance premiums, maintenance or improvements of any portion of the Property. 8.3 Reimbursement Assessments. The Association shall have the power to levy assessments against any Lot for the following purposes, and such assessments shall be “Reimbursement Assessments”: 8.3.1 To cover the costs incurred by the Association (including attorneys’ fees and costs) in bringing the Lot and/or its Owner into compliance with the terms of this Declaration, the Bylaws or the Design Guidelines. 12.17Stage Road Design Association Declaration of Architectural Restrictions for Stage Road 12 Planned Unit Development/Subdivision 8.3.2 To collect fines imposed by the Association pursuant to Section 7.2. 8.3.3 To collect late charges and interest pursuant to Section 7.2 and Section 8.5, and attorneys’ fees and other costs and expenses incurred by the Association to collect or attempt to collect delinquent Assessments and enforce the provisions of this Declaration, the Articles, the Bylaws and the Design Guidelines. 8.3.4 To collect any other amounts collectible by the Association as Reimbursement Assessments pursuant to the express terms of this Declaration. 8.4 Owners’ Obligations for Assessments. Each Assessment, together with interest and late charges pursuant to Section 8.5, costs and reasonable attorneys’ fees, shall be a charge and continuing lien upon the Lot against which the Assessment is made until paid, as more particularly provided in Section 8.6. If a Lot is owned jointly by two or more co- Owners, all co-Owners of such Lot shall be jointly and severally liable to the Association for the payment of all Assessments levied against such Lot. Each such Assessment, together with such interest, late charges, costs and reasonable attorneys’ fees, also shall be the personal obligation of the Owner or Owners of such Lot at the time the Assessment arose. Upon the conveyance of fee simple title to a Lot, the grantee (excluding a First Mortgagee who becomes an Owner pursuant to foreclosure of its Mortgage and any purchaser at a foreclosure sale who becomes an Owner by taking title to such Lot) shall be liable, jointly and severally, with the grantor for unpaid Assessments against the grantor due prior to the conveyance of such Lot. 8.5 Late Charges and Interest. If any Assessment or ACC-authorized installment of an Assessment is not paid within 30 days after it was due and payable, the Association may assess a late charge on the delinquent Assessment or installment in an amount not greater than 5% of the delinquent Assessment or installment in order to cover the extra costs and expenses involved in processing such delinquent Assessment or installment. Such late charge shall be assessed by the Association and payable by such Owner as a Reimbursement Assessment. In addition, any Assessment or any ACC-authorized installment of an Assessment not paid within 60 days of the date on which it was due shall bear interest at the rate equal to the lesser of the maximum legal rate or 18% per annum commencing on the expiration of such 60-day period and continuing until such Assessment or installment, together with all accrued interest and late charges, are paid in full. Such interest shall be assessed by the Association and payable by such Owner as a Reimbursable Assessment. 8.6 Lien for Assessments. 8.6.1 Perfection and Priority of Lien. All Assessments assessed or levied by the Association but unpaid by the Owner of any Lot (including, without limitation, late charges and interest) shall constitute a lien on such Lot and all improvements now or hereafter made or situated on such Lot. Such lien shall be superior and prior to all other liens and encumbrances, except for all unpaid sums under a First Mortgage recorded against such Lot and prior tax and special assessment liens created by statute. Such lien shall be perfected upon the recording of this Declaration and no further claim of lien shall be required. The Association may, but is not obligated to, prepare and record a notice of lien setting forth (i) the amount of any Assessment, installment, late charge, penalty, fine or other amount due and owing to the Association as of the date of such notice; (ii) the date such amount was due and payable and the date from which interest accrues; (iii) all costs and 12.18 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 13 Planned Unit Development/Subdivision expenses including reasonable attorneys’ fees incurred by the Association in collecting the unpaid amount as of the date of Recording of such notice of lien; (iv) the Lot affected by the lien; and (v) the name or names, last known to the Association, of the Owner of the Lot. 8.6.2 Enforcement of Lien. Such lien, when delinquent, may be enforced in the same manner as provided for the foreclosure of mortgages under the laws of the State of Colorado. The Association may sue for unpaid Assessments and other charges authorized under this Declaration without foreclosing or waiving the lien securing them. The sale or transfer of any Lot shall not affect an existing lien for previous Assessments or relieve such Lot from any lien for subsequent Assessments. However, the transfer of fee simple title to any Lot pursuant to the bona fide foreclosure of a First Mortgage shall extinguish the lien as to any installments of such Assessments due prior to such sale or transfer. 9 Amendment and Assignment 9.1 Amendment of Declaration by Declarant. During the Declarant Control Period, Declarant may, without the consent of any other Owner (except as expressly provided below), amend this Declaration to: (a) make any additional property within the vicinity of the Property subject to the terms of this Declaration, provided that any such amendment shall require the consent of the owner of the additional property if other than Declarant; (b) withdraw any portion of the Property from the Property such that it is no longer subject to the terms of this Declaration, provided that any such amendment shall require the consent of the Owner of the withdrawn portion of the Property if other than Declarant; (c) correct any clerical or typographical errors; and (d) make changes to the terms of the Declaration that do not materially increase the scope of authority or powers of the Association beyond the powers and authority described in Section 4.5 and that do not materially increase the burdens or restrictions placed on the Property or any of the Lots pursuant to this Declaration. 9.2 Amendment of Declaration by Members. This Declaration may be amended at any time upon the prior approval of the Owners entitled to cast at least 75% of the votes in the Association, provided that during the Declarant Control Period any such amendment shall also require the written consent of Declarant. 9.3 Effectiveness of Amendment. Any amendment to this Declaration shall be effective upon the Recording of an instrument, executed by the president of the Association, setting forth the amendment in full and certifying that the amendment has been approved pursuant to the Section 9.1 or Section 9.2, as applicable. 9.4 Assignment of Declarant’s Rights and Duties. The rights, powers and reservations of Declarant contained herein may be assigned in writing by Declarant to any purchaser of all or substantially all of the portions of the Property owned by Declarant at the time of such purchase pursuant to such terms and conditions on which Declarant and the assignee may agree. Any such purchaser, after consenting in writing to such assignment, shall succeed to the rights, powers and reservations of Declarant contained herein. Upon such assignment, Declarant shall be relieved from such rights, powers and reservations, and the liabilities, obligations and duties occurring after such assignment with respect thereto. Any assignment made under this Section 9.4 shall be evidenced by a Recorded memorandum or similar document that summarizes the essential terms of such assignment. 12.19Stage Road Design Association Declaration of Architectural Restrictions for Stage Road 14 Planned Unit Development/Subdivision If at any time Declarant ceases to exist and has not made such an assignment, the Association shall be Declarant’s successor to its rights, powers and reservations hereunder. Any assignee of Declarant’s rights, powers or reservations pursuant to this Section 9.4 may in turn assign such rights, powers or reservations to a subsequent purchaser of all or substantially all of the portions of the Property owned by Declarant’s assignee at the time of such purchase. 10 Miscellaneous 10.1 Term. All provisions of this Declaration shall continue in effect in perpetuity unless this Declaration is terminated with the consent of those Owners entitled to cast at least 75% of the votes in the Association; provided, however, that any termination of this Declaration during the Declarant Control Period shall also require the written approval of Declarant and a majority of the ACC Members. The termination of this Declaration shall be effective upon the recording of a certificate, executed by the President of the ACC declaring that this Declaration has been terminated as provided herein, and if applicable, approved by Declarant and a majority of the ACC Members as provided herein. 10.2 Interpretation. The provisions of this Declaration shall be construed as a whole to effectuate the purpose of this Declaration. With respect to matters addressed by more than one restriction, the more restrictive shall be interpreted to override the less restrictive. 10.3 Governing Law. This Declaration shall be construed and governed under the laws of the State of Colorado. 10.4 Severability. Each of the provisions of this Declaration shall be deemed independent and severable and the invalidity or unenforceability or partial invalidity or partial enforceability of any provision or portion thereof shall not affect the validity or enforceability of any other provision. 10.5 Number and Gender. Unless the context requires a contrary construction, the singular shall include the plural and the plural the singular, and the masculine, feminine or neuter shall each include the masculine, feminine and neuter. 10.6 Captions for Convenience. The titles, headings and captions used in this Declaration are intended solely for convenience of reference and shall not be considered in construing any of the provisions of this Declaration. [remainder of page intentionally blank] 12.20 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Architectural Restrictions for Stage Road 15 Planned Unit Development/Subdivision IN WITNESS WHEREOF, Declarant has executed this Declaration. DECLARANT: BAR/X RANCH LLC, a Colorado limited liability company By: Name: Title: STATE OF ___________________________ ) ) ss. COUNTY OF __________________________ ) The foregoing instrument was sworn and subscribed before me this _____ day of ____________, 200___, by ____________________ as ___________________________ of Bar/X Ranch LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: _______________________ _____________________________________ Notary Public 12.21Stage Road Design Association Declaration of Architectural Restrictions for Stage Road A-1 Planned Unit Development/Subdivision EXHIBIT A Legal Description of the Property 12.22 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission This page intentionally left blank 12.23Stage Road Design Association Articles of Incorporation of Stage Road Homeowners Association Articles of Incorporation of Stage Road Homeowners Association The Incorporator designated below, a natural person at least 18 years of age, hereby verifies and acknowledges these Articles of Incorporation (these “Articles”) for the purpose of forming a nonprofit corporation under the Colorado Revised Nonprofit Corporation Act (the “Act”). 1 Name The name of the corporation is Stage Road Homeowners Association (the “Association”). 2 Duration The period of duration of the Association will be perpetual. 3 Purposes The Association is organized to be and constitutes the “Association” pursuant to the Declaration of Covenants, Easements, Conditions and Restrictions for Stage Road Planned Unit Development/Subdivision that has been or will be recorded in the real property records of Pitkin County, Colorado (the “Declaration”). All initially capitalized terms used in these Articles have the same meanings as used in the Declaration, unless otherwise defined in these Articles. 4 Powers Subject to any limitations imposed by the Bylaws of the Association or the Declaration, the Association has all of the powers that a nonprofit corporation may exercise under the Act and the laws of the State of Colorado in effect from time to time. 5 Registered Office and Agent and Principal Office The street address of the initial registered office of the Association is ___________________________________. The initial registered agent of the Association at the registered office is ________________________. The street address of the initial principal office of the Association is _____________________________________________________________. 6 Board of Directors The affairs of the Association will be managed by the Board of Directors. The duties, qualifications, number and term of the members of the Board of Directors and the manner of their election, appointment and removal will be as set forth in the Declaration and the Bylaws of the Association. 12.24 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Articles of Incorporation of Stage Road Homeowners Association 2 Initially, there shall be three members of the Board of Directors. The names and addresses of the persons who serve as the initial members of the Board of Directors are: Name: Address: ____________________ ________________________________________ ________________________________________ ________________________________________ ____________________ ________________________________________ ________________________________________ ________________________________________ ____________________ ________________________________________ ________________________________________ ________________________________________ 7 Members Each Owner shall become a Member of the Association upon becoming an Owner and shall remain a Member as long as such person or entity is an Owner. If any Lot is owned jointly by two or more co-Owners, all such co-Owners shall be Members. Each Membership is appurtenant to the fee simple title to a Lot. Membership in the Association automatically terminates when a person or entity ceases to be an Owner, whether through sale, intestate succession, testamentary disposition, foreclosure or otherwise, and the new Owner automatically succeeds to the Membership in the Association. The Association will recognize a new Member upon presentation by a new Owner of satisfactory evidence of the sale, transfer, succession, disposition, foreclosure or other transfer of a Lot. Membership in the Association may not be transferred, pledged or alienated in any way, except to the new Owner upon conveyance of a Lot. Any prohibited transfer is void and will not be recognized by the Association. The Association will have no more than one class of Members, as provided for in the Bylaws. Votes in the Association shall be allocated to the Members in accordance with the Declaration. 8 Proxy Voting A Member may vote in person, as provided in the Bylaws, and may be authorized in the Bylaws to vote by proxy on any matters on which the Member is entitled to vote. 9 Cumulative Voting Cumulative voting by Members in the election of members of the Board of Directors is not permitted. 10 Bylaws The Board of Directors has the power to make and alter the Bylaws, not inconsistent with these Articles, the laws of the State of Colorado or the Declaration, for the administration and regulation of the affairs of the Association. The Board of Directors may alter, amend or repeal the Bylaws or adopt new Bylaws, subject to the provisions of the Bylaws and the Declaration. The Bylaws may not be amended by action of the Members. 12.25Stage Road Design Association Articles of Incorporation of Stage Road Homeowners Association 3 11 Amendment of Articles The Board of Directors may adopt, without approval of the Members, any amendment to these Articles of Incorporation permitted under the Act without Member approval. All other amendments to these Articles of Incorporation shall require Member approval pursuant to the Act. Notwithstanding the foregoing, no amendment shall be made to these Articles of Incorporation that is contrary to or inconsistent with any provision of the Declaration. In addition, during the Declarant Control Period, any amendment to these Articles of Incorporation shall require the consent of Declarant. 12 Dissolution Subject to Article 13, in the event of dissolution of the Association, the sale of the Association’s property and the distribution of the proceeds from the sale will conform with the provisions of the Act and the Declaration. 13 Indemnification and Limitation of Liability 13.1 Indemnification. The Association will indemnify, to the maximum extent permitted by law, any person who is or was a director or officer of the Association, and may indemnify any other person, against any claim, liability or expense arising against or incurred by the person made party to a proceeding because he or she is or was a director, officer, agent, fiduciary or employee of the Association or because he or she is or was serving another entity as a director, officer, partner, trustee, employee, fiduciary or agent at the Association’s request. The Association further may, to the maximum extent permitted by law, purchase and maintain insurance providing for such indemnification, advance expenses to persons indemnified by the Association, and provide indemnification to any person by general or specific action of the Board of Directors, the Bylaws of the Association, contract or otherwise. The Association may obtain and maintain directors’ and officers’ insurance and such other insurance as deemed appropriate by the Board of Directors from time to time. 13.2 Limitation on Directors’ and Officers’ Liability. No director or officer shall be liable for actions taken or omissions made in the performance of such director’s or officer’s duties as such, except for wanton and willful acts or omissions. Without limiting the generality of the foregoing sentence, no director shall have any personal liability to the Association or its Members for monetary damages for breach of fiduciary duty as a member of the Board of Directors; except that the personal liability of such director shall not be eliminated for: (i) any breach of the director’s duty of loyalty to the Association or its Members; (ii) acts or omissions by the director not in good faith or that involve intentional misconduct or a knowing violation of the law; (iii) voting for or assenting to any unlawful distributions as defined under Section 7-128-403 of the Act, provided that the extent of liability for such vote or assent shall be determined pursuant to Section 7-128-403 of the Act; (iv) consenting to or participating in the making of any loan by the Association to any director or officer, provided that the extent of liability for such consent or participation shall be determined pursuant to Section 7-128-501 of the Act; or (v) any transaction from which the director directly or indirectly derived an improper personal benefit. No director or officer shall be personally liable for any injury to person or property arising out of a tort committed by an employee of the Association unless such director or officer was personally involved in the situation giving rise to the injury or unless such director or officer committed a criminal offense in connection with such situation. Nothing contained in this Section 13.2 shall be construed to deprive any director or officer of his or her right to all defenses ordinarily 12.26 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Articles of Incorporation of Stage Road Homeowners Association 4 available to a director or officer of a nonprofit corporation nor shall anything herein be construed to deprive any director of any right he or she may have for contribution from any other director or other person. 14 Incorporator The Incorporator’s name and address is: Name Address J. Bart Johnson 112 North First Street, Suite C Aspen, CO 81611 The Incorporator has verified these Articles and caused the same to be delivered to the Secretary of State for the State of Colorado as of __________________, 200__. The designated registered agent of the Association consents to serving as the initial registered agent of the Association. 12.27Stage Road Design Association Bylaws of Stage Road Design Association 12.28 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Table of Contents Page i 1 General..................................................................................................................................1 1.1 Purpose of Bylaws....................................................................................................1 1.2 Terms Defined in the Declaration.............................................................................1 1.3 Controlling Laws and Instruments............................................................................1 2 Offices....................................................................................................................................1 2.1 Principal Office .........................................................................................................1 2.2 Registered Office and Agent ....................................................................................1 3 Members and Voting Rights..................................................................................................1 3.1 General.....................................................................................................................1 3.2 Votes.........................................................................................................................2 3.3 Authorized Representative.......................................................................................2 3.4 Resignation of Members...........................................................................................3 3.5 Membership Termination; Member Sanctions..........................................................3 3.6 Purchase of Memberships by Association ...............................................................3 3.7 Resolution of Voting Disputes ..................................................................................3 3.8 Transfer of Memberships on Association Books......................................................3 4 Meetings of Members............................................................................................................3 4.1 Place of Members’ Meetings....................................................................................3 4.2 Annual Meetings of Members...................................................................................3 4.3 Special Meetings of Members..................................................................................3 4.4 Record Date .............................................................................................................4 4.5 Notice of Members’ Meetings...................................................................................4 4.6 Proxies......................................................................................................................4 4.7 Quorum at Members’ Meeting..................................................................................5 4.8 Adjournments of Members’ Meetings .......................................................................5 4.9 Vote Required at Members’ Meeting........................................................................5 4.10 Officers of Meetings..................................................................................................5 4.11 Expenses of Meetings..............................................................................................5 4.12 Waiver of Notice.......................................................................................................5 4.13 Action of Members Without a Meeting .....................................................................5 4.14 Action of Members by Mail Ballot.............................................................................6 4.15 List of Members for Meeting and Action by Mail Ballot............................................6 4.16 Meetings by Telecommunication..............................................................................6 12.29Stage Road Design Association Table of Contents (continued) Page ii 5 Architectural Control Committee............................................................................................7 5.1 General Powers and Duties of ACC.........................................................................7 5.2 Special Powers and Duties of ACC..........................................................................7 5.3 Qualifications of ACC Members ...............................................................................7 5.4 General Standards of Conduct for ACC Members and Officers ..............................7 5.5 Term of ACC Members.............................................................................................8 5.6 Appointment and Election of ACC Members............................................................8 5.7 Removal of ACC Members.......................................................................................8 5.8 Resignation of ACC Members..................................................................................8 5.9 Vacancies in ACC Members.....................................................................................8 5.10 Manager or Managing Agent....................................................................................8 5.11 Conflicting Interest Transactions..............................................................................8 5.12 Limitations of Liability and Indemnification of ACC Members..................................9 6 Meetings of ACC Members .................................................................................................10 6.1 Place of ACC Members’ Meetings .........................................................................10 6.2 Annual Meeting of ACC Members..........................................................................10 6.3 Special Meetings of ACC Members .......................................................................10 6.4 Notice of ACC Members’ Meetings........................................................................10 6.5 Proxies....................................................................................................................10 6.6 Quorum of ACC Members......................................................................................10 6.7 Adjournment of ACC Member’s Meetings..............................................................10 6.8 Vote Required at ACC Members’ Meeting.............................................................10 6.9 Officers at Meetings................................................................................................11 6.10 Waiver of Notice.....................................................................................................11 6.11 Action of ACC Members Without a Meeting...........................................................11 6.12 Meeting Attendance; Executive Sessions..............................................................11 7 Officers ................................................................................................................................12 7.1 Officers, Employees and Agents............................................................................12 7.2 Appointment and Term of Office of Officers...........................................................12 7.3 Removal of Officers................................................................................................12 7.4 Resignation of Officers...........................................................................................12 7.5 Vacancies in Officers..............................................................................................12 7.6 President.................................................................................................................12 12.30 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Table of Contents (continued) Page iii 8 Miscellaneous......................................................................................................................12 8.1 Amendment of Bylaws............................................................................................12 8.2 Biennial Corporate Reports....................................................................................12 8.3 Fiscal Year..............................................................................................................13 8.4 Seal.........................................................................................................................13 8.5 Shares of Stock and Dividends Prohibited.............................................................13 8.6 Minutes and Presumptions Thereunder.................................................................13 8.7 Checks, Drafts and Documents..............................................................................13 12.31Stage Road Design Association Bylaws of Stage Road Design Association 1 Bylaws of Stage Road Design Association 1 General 1.1 Purpose of Bylaws. These Bylaws of Stage Road Design Association (these “Bylaws”) are adopted for the regulation and management of the affairs of the Stage Road Design Association (the “Association”). The Association is organized as a Colorado nonprofit corporation under the Colorado Revised Nonprofit Corporation Act, C.R.S. § 7- 121-101 et seq. (the “Nonprofit Act”), and is the Association under the Declaration of Architectural Restrictions for Stage Road Planned Unit Development/Subdivision (the “Declaration”). The Declaration relates to the real property in Pitkin County, Colorado, that is or may become subject to the Declaration (the “Property”). 1.2 Terms Defined in the Declaration. Initially capitalized terms used but not defined in these Bylaws are defined in the Declaration and have the same definition as in the Declaration. 1.3 Controlling Laws and Instruments. These Bylaws are controlled by and shall always be consistent with the provisions of the Nonprofit Act, the Declaration and the Articles of Incorporation of the Association filed with the Secretary of State of Colorado (the “Articles”), as any of them are amended from time to time. The Declaration, the Articles and these Bylaws, as any of them may be amended from time to time, together with all exhibits or attachments to any of them, are herein collectively referred to as the “Association Instruments.” 2 Offices 2.1 Principal Office. The ACC, in its discretion, may fix and change the location of the principal office of the Association from time to time. 2.2 Registered Office and Agent. The ACC may change the Association’s initial registered office and initial registered agent specified in the Articles at any time by filing a statement as specified by law in the Office of the Secretary of State of Colorado. At all times, the street addresses of the Association’s registered office and the business office of the Association’s registered agent shall be identical. 3 Members and Voting Rights 3.1 General. 3.1.1 By this reference, these Bylaws incorporate the membership and voting rights provisions of the Declaration. Each Owner of a Lot is a member of the Association (a “Member”). An Owner’s membership in the Association is hereinafter referred to as a “Membership.” Each Membership is appurtenant to the fee simple title to a Lot. The Owner of fee simple title to a Lot is automatically the holder of the Membership appurtenant to the Lot, and the Membership automatically passes with fee simple title to the Lot. 3.1.2 In any matter coming before the Association for which a vote of the Members is required, for any Lot owned by multiple owners (the “Multiple Owners”): 12.32 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Design Association 2 (i) if only one such Multiple Owner is present when such vote occurs, such Multiple Owner shall be entitled to cast any and all votes allocated to such Lot; (ii) if more than one of the Multiple Owners are present, any and all votes allocated to such Lot shall be cast only in accordance with the agreement of a majority in interest of the Multiple Owners, provided that a majority agreement among the Multiple Owners shall be deemed to exist if any one of the Multiple Owners casts the vote or votes allocated to such Lot without protest being made promptly to the person presiding over the meeting by any of the other Multiple Owners, and provided further that the Multiple Owners shall not be entitled to cast any vote on such matter unless a majority agreement is reached among the Multiple Owners before the conclusion of the tabulation of votes on such matter by the Association. Fractional voting by Multiple Owners shall not be permitted. 3.1.3 The Association itself shall have no vote for any Lot it owns. 3.2 Votes. In all matters coming before the Association for which a vote of the Members is required, each Lot is allocated one or more vote(s) in the Association pursuant to the Declaration. 3.3 Authorized Representative. 3.3.1 Any Owner that is not a natural person (i.e., an estate or a trust, corporation, partnership, limited liability company or other entity) shall appoint a natural person as such Owner’s attorney-in-fact and authorized representative (an “Authorized Representative”) and may vote only through its Authorized Representative. Any Owner who is a natural person may appoint a proxy to vote on behalf of the Owner in matters coming before the Members of the Association, provided that if such proxy is not a natural person, such proxy shall appoint an Authorized Representative pursuant to this Section 3.3. 3.3.2 Any Owner required to appoint an Authorized Representative will do so immediately upon becoming an Owner. Any Owner who is required or elects to appoint an Authorized Representative will notify the Association of its Authorized Representative or any subsequent replacement for its Authorized Representative within 10 days after appointment. The notice will have the effect of a proxy given by all Persons constituting that Owner to the Authorized Representative named in the notice for all purposes under the Association Instruments and the Nonprofit Act, except that the duration of the notice will be perpetual or as stated therein. The appointment of an Authorized Representative is binding upon all Persons comprising the appointing Owner and the vote of the Authorized Representative is conclusive as to the Association, unless and until the Association receives (A) a notice appointing a replacement Authorized Representative or (B) in the case of an Authorized Representative appointed by an Owner who is a natural person, a notice terminating the appointment of the Authorized Representative. Upon receiving any notice appointing an Authorized Representative, the Association may request additional evidence of authority that it reasonably deems necessary to verify the due appointment of the named Authorized Representative. If an Owner who is required or elects to appoint an Authorized Representative owns more than one Lot, the Owner may appoint (1) one natural person to serve as Authorized Representative for all of its Lots; or (2) a different natural person to serve as Authorized Representative for each of its Lots or any number of its Lots. 12.33Stage Road Design Association Bylaws of Stage Road Design Association 3 3.3.3 Unless the context clearly indicates otherwise, the term “Member” as used in these Bylaws means a Member or its Authorized Representative. 3.4 Resignation of Members. No Member may resign from the Association. An Owner’s Membership in the Association shall terminate only upon the conveyance by such Member of all of such Member’s ownership interests in any and all Lots within the Property. 3.5 Membership Termination; Member Sanctions. No Member may be expelled from the Association and no Member’s Membership may be terminated as long as such Member is an Owner. Notwithstanding the foregoing, if any Member fails to comply with any provision of the Association Instruments, the Association may impose such enforcement sanctions as are provided for in the Declaration. Without limiting the foregoing, the ACC may suspend the voting rights of and/or any of the other privileges of Membership of any Member during and following any breach by such Member of any provision of the Declaration or any Rules adopted by the ACC. 3.6 Purchase of Memberships by Association. The Association shall not purchase the Membership of any Member. The Association shall only be a Member, and shall only have such rights as are attendant to Membership, to the extent that it is also an Owner. 3.7 Resolution of Voting Disputes. In the event of any dispute as to the entitlement of any Member to vote or as to the outcome of any vote of the Members (i.e., whether a particular matter or item was duly approved by the vote of the Members), the ACC shall act as arbitrators and the decision of a disinterested majority of the ACC shall, when rendered in writing, be final and binding as an arbitration award and may be acted upon in accordance with the Colorado Uniform Arbitration Act of 1975, as the same may be amended. No dispute as to the entitlement of any Member to vote shall postpone or delay any vote for which a meeting of the Members has been duly called pursuant to the provisions of these Bylaws if a quorum is present at such meeting. 3.8 Transfer of Memberships on Association Books. Transfers of Memberships shall be made on the books of the Association only upon presentation of evidence, satisfactory to the ACC, of the transfer of ownership of the Lot to which the Membership is appurtenant. Prior to presentation of such evidence, the Association may treat the previous owner of the Membership as being entitled to all rights in connection with the Membership. 4 Meetings of Members 4.1 Place of Members’ Meetings. Meetings of the Members shall be held at the principal office of the Association or at such other place, within or convenient to the Property, as may be fixed by the ACC and specified in the notice of the meeting. 4.2 Annual Meetings of Members. During the Declarant Control Period, there shall be no annual meetings of the Members. Commencing after the end of the Declarant Control Period, annual meetings of the Members shall be held on the date fixed in accordance with a resolution of the ACC at such time of day as is fixed by the ACC and specified in the notice of meeting. The annual meetings shall be held to transact such business that properly comes before each such meeting. 4.3 Special Meetings of Members. During the Declarant Control Period, special meetings of the Members may be called by the ACC but not the Members. Following the Declarant Control Period, special meetings of the Members may be called by the ACC or by 12.34 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Design Association 4 the Members holding not less than 20% of the total votes in the Association. No business shall be transacted at a special meeting of the Members except as indicated in the notice thereof. 4.4 Record Date. For the purpose of determining the Members entitled to notice of, or to vote at, any meeting of the Members, or for the purpose of determining such Members for any other proper purpose, the ACC of the Association may fix in advance a future date as the record date for any determination of the Members. The record date may not be more than 70 days prior to the meeting of the Members or the event requiring a determination of the Members. 4.5 Notice of Members’ Meetings. Written notice of any meeting of the Members will be delivered not less than two nor more than 50 days before the date of the meeting, either personally or by first class or registered mail to each Member entitled to vote at the meeting. The notice of any meeting will state the time and place of the meeting and the items on the agenda, including the general nature of any proposed amendment to the Declaration or Bylaws, any budget changes and any proposal to remove a member of the ACC. If mailed, the notice will be deemed to be delivered five business days after it is deposited in the United States mail, first-class postage prepaid, addressed to the Member at the mailing address for the Member appearing in the Association’s records. If mailed, the notice will be deemed to be delivered 10 days after it is deposited in the United States mail, first-class postage prepaid, addressed to the Member at the mailing address for the Member appearing in the Association’s records. If delivered personally, the notice will be deemed to be delivered when delivered to the physical address of the Member appearing in the Association’s records. If delivered by overnight courier, the notice will be deemed to be delivered on the next business day following the day on which the notice is deposited with the overnight courier service and addressed to the address of the Member appearing in the Association’s records. If delivered by facsimile, the notice will be deemed to be delivered when the facsimile machine used by the Association confirms transmittal of the notice to the facsimile number for the Member appearing in the Association’s records. 4.6 Proxies. 4.6.1 In addition to the appointment of an Authorized Representative pursuant to Section 3.3 of these Bylaws, a Member (including an Authorized Representative) that is entitled to vote may vote in person or by proxy if the proxy is executed in writing by the Member and delivered to the secretary of the meeting prior to the time the proxy is exercised. A Member may appoint a proxy by signing an appointment form, either personally or by the Member’s attorney-in-fact, or by transmitting or authorizing the transmission of an electronic transmission providing a written statement of the appointment to the proxy or other person duly authorized by the proxy to receive appointments as agent for the proxy or to the Association, except that the transmitted appointment shall set forth or be transmitted with written evidence from which it can be determined that the Member transmitted or authorized the transmission of the appointment. 4.6.2 A proxy may be revoked by a written revocation filed with the chairman of the meeting prior to the time the proxy is exercised or by voting in person. A proxy automatically ceases upon a change in the ownership of the Membership on the Association’s books. No proxy is valid after 11 months from the date of its execution unless otherwise provided in the proxy appointment form. Any form of proxy or written ballot furnished or solicited by the Association will afford an 12.35Stage Road Design Association Bylaws of Stage Road Design Association 5 opportunity for the Members to specify on the form a choice between approval and disapproval of each matter (or group of related matters) which is known, at the time the form of proxy or written ballot is prepared, and which may come before the meeting, and will provide, subject to reasonably specified conditions, that if a Member specifies a choice with respect to any matter, the vote will be cast in accordance with the Member’s choice. 4.7 Quorum at Members’ Meeting. Except as may be otherwise provided in the Declaration, the Articles of Incorporation or these Bylaws, the presence, in person or by proxy, of Members entitled to cast at least 40% of the votes in the Association shall constitute a quorum at any meeting of such Members. The Members present in person or by proxy at a duly organized meeting may not continue to transact business if some of the Members withdraw from the meeting, leaving less than a quorum. 4.8 Adjournments of Members’ Meetings. Members present in person or by proxy at any meeting may adjourn the meeting from time to time, whether or not a quorum is present in person or by proxy, without notice other than announcement at the meeting for a total period or periods not exceeding 60 days after the date set for the original meeting. At any adjourned meeting held without notice other than announcement at the meeting, the quorum requirement may not be reduced or changed, but if the originally required quorum is present in person or by proxy, any business may be transacted which might have been transacted at the meeting as originally called. Notwithstanding the foregoing, if the adjourned meeting is set for a date that is more than 70 days after the record date initially fixed for the meeting pursuant to Section 4.4 of these Bylaws, then notice of the adjourned meeting (pursuant to Section 4.5 of these Bylaws) must be given to the Members of record as of the new record date fixed for such adjourned meeting pursuant to Section 4.4 of these Bylaws. 4.9 Vote Required at Members’ Meeting. At any meeting of the Members called and held in accordance with these Bylaws, if a quorum is present, the affirmative vote of Members entitled to cast a majority (i.e., more than 50%) of the votes, present and voting either in person or by proxy, which may be cast on a matter are necessary to adopt the matter, unless a different percentage is required by law or by the Association Instruments, in which case the different requirement shall control. There shall be no cumulative voting for ACC Members or for any other action considered by the Members. 4.10 Officers of Meetings. At any meeting of the Members, the President (or any other ACC Member) shall act as chairperson, and a person designated by the chairperson shall act as secretary of the meeting. 4.11 Expenses of Meetings. The Association shall bear the expenses of all meetings of the Members. 4.12 Waiver of Notice. A waiver of notice of any meeting of the Members, signed by a Member, whether before or after the meeting, shall be equivalent to the giving of notice of the meeting to such Member. Attendance of a Member at a meeting, either in person or by proxy, shall constitute waiver of notice of such meeting except when the Member attends for the express purpose of objecting to the transaction of business because the meeting is not lawfully called or convened. 4.13 Action of Members Without a Meeting. Any action required to be taken or which may be taken at a meeting of the Members may be taken without a meeting if a written 12.36 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Design Association 6 consent setting forth the action taken is signed by all of the Members, including any Multiple Owners, entitled to vote on the subject matter of the action. In order for any action taken without a meeting to be effective, the written consent of all Members entitled to vote on the subject matter of the action must be received by the Association within 60 days after the earliest date upon which the Association received any such written consent. Action taken without a meeting shall be effective when the last written consent necessary to effect the action is received by the Association (the “Effective Date”), unless the written consents set forth a different Effective Date. Any Member submitting a written consent under this Section 4.13 may revoke such consent by a writing signed and dated by the Member describing the action and stating that the Member’s prior consent thereto is revoked, provided that such writing is received by the Association before the Effective Date. The record date for determining Members entitled to take action without a meeting or to receive notice of such action shall be the date that the first written consent concerning the action is received by the Association. 4.14 Action of Members by Mail Ballot. 4.14.1 Any action required to be taken or which may be taken at a meeting of the Members may be taken by mail ballot without a meeting to the extent permitted by Section 7-127-109 of the Nonprofit Act. In order for an action taken by mail ballot to be effective: (i) the Association must have delivered a written ballot to every Member entitled to vote on the subject matter of the action, (ii) the number of votes cast by ballot must have satisfied the quorum requirement set forth in Section 4.7 of these Bylaws, (iii) the number of approvals must have satisfied the affirmative vote requirement set forth in Section 4.9 of these Bylaws, and (iv) all ballots and ballot solicitations must have satisfied the specific requirements therefor as set forth in Section 7-127-109 of the Nonprofit Act. 4.14.2 With respect to any action taken by mail ballot, if only one ballot is received by the Association from among any group of Multiple Owners of a Lot, such ballot shall be deemed to represent the vote or votes, as the case may be, allocated to such Lot. If more than one ballot is received by the Association from among any group of Multiple Owners of a Lot, any and all votes allocated to such unit shall be cast only in accordance with the unanimous agreement of all such ballots received by the Association. If any ballot received from among a group of Multiple Owners of a Lot conflicts with any other such ballot, none of the votes allocated to such Lot shall be entitled to be cast. 4.15 List of Members for Meeting and Action by Mail Ballot. After fixing a record date for notice of a meeting pursuant to Section 4.4 of these Bylaws or for determining the Members entitled to take action by mail ballot pursuant to Section 4.14 of these Bylaws, the Association shall prepare an alphabetical list of the names, addresses, and votes in the Association of all Members entitled to notice of, and to vote at, the meeting or to take such action by written ballot. The list shall be made available for inspection by the Members in accordance with the specific requirements set forth in Section 7-127-201 of the Nonprofit Act. Failure by the Association to prepare or make available the list of Members will not affect the validity of action taken at the meeting or by means of such written ballot. 4.16 Meetings by Telecommunication. Any or all of the Members may participate in an annual, regular, or special meeting of the Members by, or the meeting may be conducted through the use of, any means of communication by which all persons 12.37Stage Road Design Association Bylaws of Stage Road Design Association 7 participating in the meeting may hear each other during the meeting. A Member participating in a meeting by this means is deemed to be present in person at the meeting. 5 Architectural Control Committee 5.1 General Powers and Duties of ACC. The ACC has the duty to manage and supervise the affairs of the Association and has all powers necessary or desirable to permit it to do so. Without limiting the generality of the previous sentence, the ACC has the power to exercise or cause to be exercised for the Association, all of the powers, rights and authority of the Association not reserved to the Owners in the Association Instruments or the Nonprofit Act. Pursuant to Section 7-128-101(2) of the Nonprofit Act, the ACC shall have the authority and perform the duties of a “board of directors” as defined in the Nonprofit Act. The ACC may delegate any portion of its authority to an executive committee, officer, executive manager or manager of the Association. 5.2 Special Powers and Duties of ACC. Without limiting the general powers and duties set forth in Section 5.1 of these Bylaws, the ACC has all the powers and duties set forth for it in the Declaration, including, without limitation, the specific powers and duties set forth in the Declaration. 5.3 Qualifications of ACC Members. There shall be three ACC Members. Each ACC Member shall be a natural person who is at least 18 years of age. An ACC Member may be reelected, and there shall be no limit on the number of terms an ACC Member may serve on the ACC. An ACC member need not be a Member of the Association or the Authorized Representative of a Member. After the Declarant Control Period, one ACC Member shall be an architect licensed in the State of Colorado. 5.4 General Standards of Conduct for ACC Members and Officers. To the extent not otherwise inconsistent with Colorado law, any ACC Member, in connection with the authority and powers granted to the ACC by the Association Instruments or by any applicable law, including but not limited to, management, personnel, maintenance and operations, interpretation and enforcement of the Association Instruments, the development of rules and restrictions, insurance, contracts and finance, shall act in good faith, with such care as an ordinarily prudent person in a like position would use under similar circumstances, and in a manner that such ACC Member believes is in the best interests of the Association. In discharging his or her duties, an ACC Member is entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, in each case prepared or presented by: (i) one or more officers or employees or agents or independent contractors of the Association whom the ACC Member believes to be reliable and competent in the matters presented; or (ii) legal counsel, public accountants or other persons as to matters which the ACC Member believes to be within such person’s professional or expert competence, so long as, in any such case, the ACC Member acts in good faith, after reasonable inquiry when the need therefor is indicated by the circumstances and without knowledge that would cause such reliance to be unwarranted. In addition to the limitations on liability set forth in Section 5.12 of these Bylaws, an ACC Member shall not be liable as such to the Association for any act or omission if, in connection with such act or omission, the ACC Member performed the duties of his or her position in compliance with this Section 5.4. An ACC Member or officer shall not be deemed to be a trustee with respect to the Association or with respect to any property held or administered by the Association. 12.38 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Design Association 8 5.5 Term of ACC Members. The term of each ACC Member shall be as set forth in the Declaration. 5.6 Appointment and Election of ACC Members. During the Declarant Control Period, Declarant shall appoint all of the ACC Members. After the termination of the Declarant Control Period, the Members of the Association shall elect all of the ACC Members. 5.7 Removal of ACC Members. Any ACC Member appointed by Declarant may be removed, with or without cause, only by Declarant. Following the Declarant Control Period, the Members, by the affirmative vote of Members holding more than 50% of the votes in the Association present, either in person or by proxy, and entitled to vote at any meeting of the Association at which a Quorum is present, may remove, with or without cause, any ACC Member. 5.8 Resignation of ACC Members. Any ACC Member may resign at any time by giving written notice to the President, to the Secretary or to the ACC stating the effective date of such resignation. Acceptance of such resignation shall not be necessary to make the resignation effective. 5.9 Vacancies in ACC Members. Any vacancy of an ACC seat previously held by a Declarant appointee shall be filled by a further appointment made by Declarant. Any vacancy occurring in an ACC seat held by an ACC Member elected by the Members shall be filled by the affirmative vote of a majority of the remaining ACC Members, though less than a quorum of the ACC. An ACC Member elected or appointed to fill a vacancy shall be elected or appointed for the unexpired term of his or her predecessor in office. 5.10 Manager or Managing Agent. The ACC, by resolution adopted by a majority of the ACC Members in office, may designate and appoint a manager, managing agent and/or other agent responsible for any of the affairs of the Association. The manager, managing agent and/or other agent will have and exercise those powers and will fulfill those duties of the ACC as specified in the resolution, and may be Declarant or an affiliate of Declarant 5.11 Conflicting Interest Transactions. 5.11.1 No loans shall be made by the Association to any ACC Member or officer. 5.11.2 No contract, transaction, or other financial relationship between the Association and an ACC Member, or between the Association and a party related to an ACC Member, or between the Association and an entity in which an ACC Member has a financial interest (a “Conflicting Interest Transaction”) shall be void or voidable or be enjoined, set aside, or give rise to an award of damages or other sanctions in a proceeding by a Member or by or in the right of the Association, solely because the Conflicting Interest Transaction involves an ACC Member or a party related to an ACC Member or an entity in which an ACC Member has a financial interest or solely because the ACC Member is present at or participates in the meeting of the ACC that authorizes, approves, or ratifies the Conflicting Interest Transaction or solely because the ACC Member's vote is counted for such purpose if: (i) the material facts as to the ACC Member's relationship or interest and as to the Conflicting Interest Transaction are disclosed or are known to the ACC, and the ACC in good faith authorizes, approves, or ratifies the Conflicting Interest Transaction by the affirmative vote of a majority of the disinterested ACC Members, 12.39Stage Road Design Association Bylaws of Stage Road Design Association 9 even though the disinterested ACC Members are less than a quorum; or (ii) the material facts as to the ACC Member's relationship or interest as to the Conflicting Interest Transaction are disclosed or are known to the ACC Members entitled to vote thereon, and the Conflicting Interest Transaction is specifically authorized, approved, or ratified in good faith by a vote of the ACC Members entitled to vote thereon; or (iii) the Conflicting Interest Transaction is fair as to the Association. Common or interested ACC Members may be counted in determining the presence of a quorum at a meeting of the ACC which authorizes, approves, or ratifies the Conflicting Interest Transaction. 5.12 Limitations of Liability and Indemnification of ACC Members. 5.12.1 No ACC Member shall be liable for actions taken or omissions made in the performance of such ACC Member’s duties as such, except for wanton and willful acts or omissions. 5.12.2 Without limiting the generality of Section 5.12.1 of these Bylaws, no ACC Member shall have any personal liability to the Association or its Members for monetary damages for breach of fiduciary duty as an ACC Member; except that the personal liability of such ACC Member shall not be eliminated for: (i) any breach of the ACC Member’s duty of loyalty to the Association or its Members; (ii) acts or omissions by the ACC Member not in good faith or that involve intentional misconduct or a knowing violation of the law; (iii) voting for or assenting to any unlawful distributions as defined under Section 7-128-403 of the Nonprofit Act, provided that the extent of liability for such vote or assent shall be determined pursuant to Section 7-128-403 of the Nonprofit Act; (iv) consenting to or participating in the making of any loan by the Association to any ACC Member, provided that the extent of liability for such consent or participation shall be determined pursuant to Section 7-128-501 of the Nonprofit Act; or (v) any transaction from which the ACC Member directly or indirectly derived an improper personal benefit. 5.12.3 No ACC Member shall be personally liable for any injury to person or property arising out of a tort committed by an employee of the Association unless such ACC Member was personally involved in the situation giving rise to the injury or unless such ACC Member committed a criminal offense in connection with such situation. 5.12.4 Nothing contained in this Section 5.12 will be construed to deprive any ACC Member of his or her right to all defenses ordinarily available to the member of a board of directors under the Nonprofit Act nor will anything herein be construed to deprive any ACC Member of any right he or she may have for contribution from any other ACC Member or other person. 5.12.5 The Association will indemnify, to the maximum extent permitted by law, any person made a party to a proceeding because such person is or was an ACC Member against liability incurred in the proceeding and against reasonable expenses incurred by the person in connection with the proceeding. The Association further may, to the maximum extent permitted by law, purchase and maintain insurance on behalf of a person who is or was an ACC Member against liability asserted or incurred by the person in that capacity or arising from the person’s status as an ACC Member. 12.40 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Design Association 10 6 Meetings of ACC Members 6.1 Place of ACC Members’ Meetings. Meetings of the ACC may be held any place designated by the ACC. 6.2 Annual Meeting of ACC Members. Annual meetings of the ACC shall not be required. 6.3 Special Meetings of ACC Members. Special meetings of the ACC may be called by the President or a majority of the ACC Members. 6.4 Notice of ACC Members’ Meetings. When notice is required for any meeting of the ACC, notice stating the place, day and hour of the meeting will be delivered not less than two nor more than 50 days before the date of the meeting, by mail, facsimile, telephone or personally, by or at the direction of the persons calling the meeting, to each ACC Member. If mailed, the notice will be deemed delivered five business days after it is deposited in the mail addressed to the ACC Member at his or her home or business address as either appears in the records of the Association, with its first-class postage prepaid. If by facsimile, the notice will be deemed delivered when facsimilied to the ACC Member at his or her home or business facsimile number as either appears on the records of the Association. If by telephone, the notice will be deemed delivered when given by telephone to the ACC Member or to any person answering the telephone who sounds competent and mature at the ACC Member’s home or business phone number as either appears on the records of the Association. If given personally, the notice will be deemed delivered upon delivery of a copy of a written notice to, or upon verbally advising, the ACC Member or some person who appears competent and mature at the ACC Member’s home or business address as either appears on the records of the Association. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the ACC need be specified in the notice or waiver of notice of such meeting. 6.5 Proxies. For purposes of determining a quorum of ACC Members with respect to a particular proposal, and for purposes of casting a vote for or against a particular proposal, an ACC Member may be deemed to be present at a meeting and to vote if the ACC Member has granted a signed written proxy to another ACC Member who is present at the meeting, authorizing the other ACC Member to cast the vote that is directed to be cast by the written proxy with respect to the particular proposal that is described with reasonable specificity in the proxy. 6.6 Quorum of ACC Members. A majority of the number of ACC Members fixed in these Bylaws shall constitute a quorum for the transaction of business by the ACC. 6.7 Adjournment of ACC Member’s Meetings. The ACC Members present at any meeting of the ACC may adjourn the meeting from time to time, whether or not a quorum is present, for a total period or periods not to exceed 30 days after the date set for the original meeting. Notice of an adjourned meeting will be given to all ACC Members. At any adjourned meeting, the quorum requirement will not be reduced or changed, but if the originally required quorum is present, any business may be transacted which may have been transacted at the meeting as originally called. 6.8 Vote Required at ACC Members’ Meeting. At any meeting of the ACC, if a quorum is present either in person or by proxy, the affirmative vote of a majority of the ACC 12.41Stage Road Design Association Bylaws of Stage Road Design Association 11 Members present shall be necessary for the adoption of the matter, unless a greater proportion is required by law or the Association Instruments. 6.9 Officers at Meetings. The President (or in his or her absence, any other ACC Member) shall act as chairman and the ACC shall designate an ACC Member or other person to act as secretary at all meetings of ACC Members. 6.10 Waiver of Notice. A waiver of notice of any meeting of the ACC, signed by an ACC Member, whether before or after the meeting, shall be equivalent to the giving of notice of the meeting to such ACC Member. Attendance of an ACC Member at a meeting in person shall constitute waiver of notice of such meeting, except when the ACC Member attends for the express purpose of objecting to the transaction of business because the meeting is not lawfully called or conveyed. 6.11 Action of ACC Members Without a Meeting. Any action required to be taken or which may be taken at a meeting of the ACC may be taken without a meeting if all of the ACC Members in writing: (i) vote for such action by the unanimous affirmative vote of the ACC Members then in office; or (ii) vote against such action or abstain from voting, and waive the right to demand that action not be taken without a meeting. Such action taken without a meeting shall not be effective unless and until all such writings necessary to effect the action, which have not been revoked as provided herein below, are received by the Association; except that the writings may set forth a different effective date. Any ACC Member who has signed and submitted a writing pursuant to this Section 6.11 may revoke such writing by a subsequent writing signed and dated by the ACC Member describing the action and stating that the ACC Member’s prior vote with respect thereto is revoked, if such writing is received by the Association before the last writing necessary to effect the action is received by the Association. 6.12 Meeting Attendance; Executive Sessions. 6.12.1 The ACC may permit any ACC Member to participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all persons participating may hear each other during the meeting. AN ACC Member participating in a meeting by this means is deemed to be present in person at the meeting. 6.12.2 The ACC or any committee thereof may hold an executive or closed door session and may restrict attendance to ACC Members and such other persons requested by the ACC during a regular or specially announced meeting or a part thereof. The matters to be discussed at such an executive session shall be limited to: (i) matters pertaining to employees of the Association or involving the employment, promotion, discipline, or dismissal of an officer, agent, or employee of the Association; (ii) consultation with legal counsel concerning disputes that are the subject of pending or imminent court proceedings or matters that are privileged or confidential between attorney and client; (iii) investigative proceedings concerning possible or actual criminal misconduct; (iv) matters subject to specific constitutional, statutory, or judicially imposed requirements protecting particular proceedings or matters from public disclosure; or (v) any matter the disclosure of which would constitute an unwarranted invasion of individual privacy. Prior to the time that the ACC or any committee thereof convenes an executive session, the chair shall announce the general matter of discussion as enumerated above. No rule or regulation of the ACC or any committee thereof shall be adopted during an 12.42 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Design Association 12 executive session. The minutes of all meetings at which an executive session was held shall indicate that an executive session was held and the general subject matter of the executive session. 7 Officers 7.1 Officers, Employees and Agents. The officers of the Association shall consist of a President, and such other officers, assistant officers, employees and agents as the ACC deems necessary. Any two or more offices may be held by the same person. 7.2 Appointment and Term of Office of Officers. Except as otherwise provided in this Section 7.2, each officer of the Association shall be appointed by the ACC and shall hold office subject to the pleasure of the ACC until the officer’s successor is appointed, whichever is later, unless the officer resigns or is earlier removed. During the Declarant Control Period, Declarant may appoint the officers of the Association. 7.3 Removal of Officers. Except as otherwise provided in this Section 7.3, any officer, employee or agent may be removed by the ACC, with or without cause, whenever in the ACC’s judgment the best interests of the Association will be served thereby. The removal of an officer, employee or agent shall be without prejudice to the contract rights, if any, of the officer, employee or agent so removed. Election or appointment of an officer, employee or agent shall not of itself create contract rights. During the Declarant Control Period, Declarant may remove the officers of the Association with or without cause. 7.4 Resignation of Officers. Any officer may resign at any time by giving written notice to the President of the ACC stating the effective date of his or her resignation. Acceptance of such resignation shall not be necessary to make the resignation effective. 7.5 Vacancies in Officers. Except as otherwise provided in this Section 7.5, any vacancy occurring in any position as an officer may be filled by the ACC. During the Declarant Control Period, any vacancy occurring in any officer position may be filled by Declarant. An officer appointed to fill a vacancy shall be appointed for the unexpired term of his or her predecessor in office. 7.6 President. The President shall be the principal executive officer of the Association and, subject to the control of the ACC, shall direct, supervise, coordinate and have general powers generally attributable to the chief executive officer of a corporation. The President shall preside at all meetings of the ACC and of the Members. The President may prepare, execute, certify, and record duly made amendments to the Declaration on behalf of the Association. 8 Miscellaneous 8.1 Amendment of Bylaws. Except as provided in the Nonprofit Act, the ACC may alter, amend or repeal these Bylaws or adopt new Bylaws. These Bylaws may contain any provision for the regulation or management of the affairs of the Association not inconsistent with law, the Declaration or the Articles of Incorporation. These Bylaws may not be amended, repealed or replaced by vote of the Members. 8.2 Biennial Corporate Reports. The Association shall file with the Secretary of State of Colorado, within the time prescribed by law, biennial corporate reports on the forms 12.43Stage Road Design Association Bylaws of Stage Road Design Association 13 prescribed and furnished by the Secretary of State and containing the information required by law and shall pay the fee for such filing as prescribed by law. 8.3 Fiscal Year. The Fiscal Year of the Association shall be determined by the ACC. 8.4 Seal. The ACC may, but is not required to, adopt a seal which shall have inscribed thereon the name of the Association and the words “SEAL” and “COLORADO.” 8.5 Shares of Stock and Dividends Prohibited. The Association shall not have or issue shares of stock and no dividend shall be paid and no part of the income or profit of the Association shall be distributed to its Members, ACC Members or officers. Notwithstanding the foregoing paragraph, the Association may issue certificates evidencing Membership therein, may confer benefits upon its Members in conformity with its purposes and, upon dissolution or final liquidation, may make distributions as permitted by law, and no such payment, benefit or distribution shall be deemed to be a dividend or distribution of income or profit. 8.6 Minutes and Presumptions Thereunder. Minutes or any similar records or the meetings of the Members, or of the ACC, when signed by the Secretary or acting secretary of the meeting, shall be presumed to truthfully evidence the matters set forth therein. A recitation in any such minutes that notice of the meeting was properly given shall be prima facie evidence that the notice was given. 8.7 Checks, Drafts and Documents. All checks, drafts or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable to the Association, shall be signed or endorsed by such person or persons, and in such manner as, from time to time, shall be determined by resolution of the ACC. ADOPTED AS OF ___________________, 200__, BY THE STAGE ROAD ARCHITECTURAL CONTROL COMMITTEE. Name: Name: Name: 12.44 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission This page intentionally left blank