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HomeMy WebLinkAbout13_STAGE_ROAD_HOMEOWNERS_ASSOCIATION13.1Stage Road Homeowners Association stage road homeowners association section 13 13.2 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Contents Declaration of Covenants........................13.3 Articles of Incorporation..........................13.45 Bylaws........................................................13.49 Introduction The Stage Road Homeowners Association serves the 12 new free market residential lots. 13.3Stage Road Homeowners 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 Covenants, Easements, Conditions and Restrictions for Stage Road Planned Unit Development/Subdivision 13.4 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Table of Contents Page i 1 General.....................................................................................................................................1 1.1 Capitalized Terms........................................................................................................1 1.2 Purpose .......................................................................................................................1 1.3 Declaration ..................................................................................................................1 1.4 Easement Issues.........................................................................................................1 1.5 CCIOA Exemption.......................................................................................................1 2 Definitions.................................................................................................................................2 2.1 ACC.............................................................................................................................2 2.2 Access Road System ..................................................................................................2 2.3 Access Road Easement..............................................................................................2 2.4 Access Road Easement Areas....................................................................................2 2.5 Agricultural Lands Conservation Easement................................................................2 2.6 Articles of Incorporation or Articles..............................................................................2 2.7 Assessment.................................................................................................................2 2.8 Association ..................................................................................................................2 2.9 Authorized Representative..........................................................................................2 2.10 Board of Directors or Board.........................................................................................2 2.11 Building Envelope........................................................................................................2 2.12 Bylaws .........................................................................................................................2 2.13 CCIOA .........................................................................................................................3 2.14 City...............................................................................................................................3 2.15 Common Allocation .....................................................................................................3 2.16 Common Assessment .................................................................................................3 2.17 Common Elements......................................................................................................3 2.18 Common Expenses .....................................................................................................3 2.19 Cultural Use Area........................................................................................................3 2.20 Declarant .....................................................................................................................3 2.21 Declarant Control Period.............................................................................................3 2.22 Declaration ..................................................................................................................4 2.23 Delinquency Costs.......................................................................................................4 2.24 Design Guidelines .......................................................................................................4 2.25 Director........................................................................................................................4 2.26 Eligible Holder .............................................................................................................4 13.5Stage Road Homeowners Association Table of Contents (continued) Page ii 2.27 Fathering Parcel..........................................................................................................4 2.28 Fathering Parcel Agricultural Easement......................................................................4 2.29 Fathering Parcel Easement Areas ..............................................................................4 2.30 Final Plat......................................................................................................................4 2.31 First Mortgage .............................................................................................................4 2.32 Fiscal Year...................................................................................................................4 2.33 Improvements..............................................................................................................5 2.34 Lot................................................................................................................................5 2.35 Master Architectural Restrictions.................................................................................5 2.36 Member........................................................................................................................5 2.37 Membership.................................................................................................................5 2.38 Mortgage......................................................................................................................5 2.39 Mortgagee ...................................................................................................................5 2.40 Municipal Code............................................................................................................5 2.41 Owner..........................................................................................................................5 2.42 PUD.............................................................................................................................5 2.43 Permittee .....................................................................................................................5 2.44 Person .........................................................................................................................5 2.45 Pre-Annexation Agreement.........................................................................................6 2.46 Property.......................................................................................................................6 2.47 Quorum........................................................................................................................6 2.48 Ranch Manager’s Lot ..................................................................................................6 2.49 Records .......................................................................................................................6 2.50 Reserve Fund..............................................................................................................6 2.51 Rules............................................................................................................................6 2.52 Special Assessment....................................................................................................6 2.53 Specific Assessment ...................................................................................................6 2.54 Taking..........................................................................................................................6 3 Creation of the Community.......................................................................................................6 3.1 Creation.......................................................................................................................6 3.2 Number of Lots............................................................................................................6 3.3 Allocations ...................................................................................................................6 4 Development of The Property...................................................................................................7 13.6 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Table of Contents (continued) Page iii 4.1 Governmental/Utility Interests .....................................................................................7 4.2 Declarant’s Right to Construct Common Elements.....................................................7 4.3 Subdivision by Owners................................................................................................7 5 Easements................................................................................................................................7 5.1 Easement for Use, Access and Enjoyment in and to the Common Elements............7 5.2 Easements for Encroachment of Common Elements .................................................8 5.3 Easements Benefiting Declarant .................................................................................8 5.4 Right of Entry...............................................................................................................8 5.5 General Access Road Easement................................................................................9 5.6 Fathering Parcel Easements.......................................................................................9 5.7 Access Easement for Cultural Use Area and Ranch Manager’s Lot ........................11 5.8 Easements Run with Land.........................................................................................11 6 The Association......................................................................................................................11 6.1 Function of Association, Generally ............................................................................11 6.2 Membership...............................................................................................................11 6.3 Authorized Representative........................................................................................12 6.4 Majority Approval.......................................................................................................12 6.5 Board of Directors......................................................................................................12 6.6 Removal of Directors.................................................................................................13 6.7 Officers ......................................................................................................................13 6.8 Delivery of Property to Association ...........................................................................13 6.9 Powers.......................................................................................................................13 6.10 Enforcement ..............................................................................................................15 6.11 Board Authority..........................................................................................................15 6.12 Pre-Annexation Agreement and PUD .......................................................................15 7 Financial Matters, Budget and Assessments.........................................................................15 7.1 General Financial Matters; Budget ............................................................................15 7.2 Creation of Assessments...........................................................................................17 7.3 Common Assessments..............................................................................................17 7.4 Special Assessments ................................................................................................18 7.5 Specific Assessments................................................................................................18 7.6 Commencement of Assessments..............................................................................19 8 Enforcement of Assessments.................................................................................................19 13.7Stage Road Homeowners Association Table of Contents (continued) Page iv 8.1 Payment of Assessments..........................................................................................19 8.2 Delinquency Notice....................................................................................................19 8.3 Acceleration...............................................................................................................20 8.4 Lien for Assessments................................................................................................20 8.5 Enforcement of Assessments....................................................................................20 8.6 Reallocation...............................................................................................................21 8.7 Disputes and Records...............................................................................................21 8.8 Certificate...................................................................................................................21 9 Maintenance...........................................................................................................................21 9.1 Association’s Responsibilities ...................................................................................21 9.2 Owner’s Responsibility..............................................................................................22 9.3 Maintenance Standard ..............................................................................................23 9.4 Party Structures.........................................................................................................23 9.5 Security......................................................................................................................23 10 Use Restrictions .....................................................................................................................23 10.1 Use ............................................................................................................................23 10.2 Landscaping ..............................................................................................................24 10.3 Unsightly or Unkempt Conditions ..............................................................................24 10.4 Quiet Enjoyment ........................................................................................................24 10.5 Firearms, Fireworks and Explosives .........................................................................24 10.6 Hunting ......................................................................................................................24 10.7 No Harassment of Wildlife.........................................................................................25 10.8 No Hazardous Activities ............................................................................................25 10.9 PUD and Laws...........................................................................................................25 10.10 Limitation on Fences .................................................................................................25 10.11 Storage of Recreational Vehicles ..............................................................................25 10.12 Use of Recreational Vehicles ....................................................................................25 10.13 Trash Containers and Refuse ...................................................................................25 10.14 Dogs and Other Animals ...........................................................................................25 10.15 Lights and Sounds.....................................................................................................26 10.16 No Outdoor Fires.......................................................................................................26 10.17 Variances and Rezonings..........................................................................................26 10.18 Exception for Construction ........................................................................................26 13.8 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Table of Contents (continued) Page v 10.19 Declarant’s Exemption...............................................................................................26 10.20 Fathering Parcel Owner Exemption ..........................................................................26 10.21 Fathering Parcel Enforcement...................................................................................26 11 Insurance, Damage And Takings...........................................................................................27 11.1 Association’s Insurance.............................................................................................27 11.2 Damage and Destruction...........................................................................................28 11.3 Takings......................................................................................................................29 12 Mortgagee Provisions.............................................................................................................30 12.1 No Priority..................................................................................................................30 12.2 Notice to Mortgagees ................................................................................................30 13 Conveyancing and Encumbrancing........................................................................................30 13.1 Lots............................................................................................................................30 13.2 Common Elements....................................................................................................31 14 Amendment ............................................................................................................................31 14.1 Required Votes..........................................................................................................31 14.2 Amending Documents...............................................................................................31 15 General Provisions .................................................................................................................32 15.1 Permittees Bound......................................................................................................32 15.2 Ranching Disclosure, Acknowledgement and Waiver...............................................32 15.3 Duration and Termination..........................................................................................32 15.4 Compliance; Right of Action......................................................................................32 15.5 Attorney Fees ............................................................................................................33 15.6 Indemnity...................................................................................................................33 15.7 Severability................................................................................................................33 15.8 Governing Law ..........................................................................................................33 15.9 Captions.....................................................................................................................33 15.10 Notices.......................................................................................................................33 13.9Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 1 for Stage Road Planned Unit Development/Subdivision Declaration of Covenants, Easements, Conditions and Restrictions for Stage Road Planned Unit Development/Subdivision THIS DECLARATION OF COVENANTS, EASEMENTS, CONDITIONS AND RESTRICTIONS FOR STAGE ROAD PLANNED UNIT DEVELOPMENT/SUBDIVISION is made by Bar/X Ranch LLC, a Colorado limited liability company, as of ________________, 200__. 1 General 1.1 Capitalized Terms. Capitalized terms used in this Declaration are defined in Article 2 below. 1.2 Purpose. This Declaration is executed to impose upon the Property mutually beneficial restrictions under a general plan of improvement for the benefit of the Owners and to establish a flexible and reasonable procedure for the overall development, administration, maintenance and preservation of the Property. 1.3 Declaration. Declarant, for itself and its successors and assigns, hereby declares that all of the Property shall, from and after the date hereof, be owned, held, conveyed, encumbered, leased, improved, used, occupied and enjoyed subject to the covenants, conditions, restrictions, reservations, easements and other provisions set forth in this Declaration in furtherance of, and the same shall constitute, a general plan for the subdivision, ownership, improvement, sale, use and occupancy of the Property and to enhance the value, desirability and attractiveness of the Property. This Declaration shall: (i) run with the Property at law and as an equitable servitude; (ii) bind any Person having or acquiring any right, title or interest in any portion of the Property; (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 and be binding upon Declarant and its successors in interest and assigns, each Owner and its heirs, successors in interest and assigns, and the Association and its successors in interest. 1.4 Easement Issues. As of the execution and Recording of this Declaration, Declarant is also the owner of the Fathering Parcel, the Cultural Use Area, and the Ranch Manager’s Lot. As the owner of the Fathering Parcel, the Cultural Use Area and the Ranch Manager’s Lot, Declarant executes this Declaration for the purpose of (in addition to subjecting the Property to the terms of this Declaration as stated in Section 1.3) declaring, establishing and creating the easements described in Article 5 below to the extent such easements affect or benefit such properties. The fact that Declarant is the owner of the Fathering Parcel, the Property, the Ranch Manager’s Lot and the Cultural Use Area as of the date this Declaration is executed and Recorded is not intended to and shall not result in the termination or failure of any easements established hereby pursuant to the common law doctrine commonly known as the “merger doctrine.” 1.5 CCIOA Exemption. Pursuant to the terms of this Declaration, the Association and this Declaration are exempt from the provisions of CCIOA to the extent permitted under Section 38-33.3-116 of CCIOA because the planned community established by this Declaration contains no more than 20 units and because no development rights are reserved in favor of the Declarant. 13.10 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 2 for Stage Road Planned Unit Development/Subdivision 2 Definitions The following terms shall have the meanings set forth below when used herein: 2.1 ACC: Stage Road Architectural Control Committee or any other supplemental design review committee established pursuant to the Master Architectural Restrictions. 2.2 ADU. An accessory dwelling unit located on any Lot that meets the requirements of the City’s Land Use Regulations for accessory dwelling units. 2.3 Access Road System: (a) The roads now existing or hereafter installed within the Access Road Easement Areas pursuant to the Access Road Easement as set forth in Section 5.5 for the purpose of providing access through, between, from and to the Property, including the individual Lots; and (b) any bridge, roadway Improvement, road-side trail, real property or interest in real property owned, held or maintained by the Association for the purpose of providing access to, from and within the Property. The Access Road System shall include the roadway surface, walkways, trails for pedestrian or equestrian use, grading, slopes, related drainage facilities, berms, vegetation, lighting fixtures, fencing and other Improvements related to the construction, safety, maintenance, repair and replacement of such roads and road-side trails. 2.4 Access Road Easement: Is defined in Section 5.5.1. 2.5 Access Road Easement Areas: The areas of the Property and the Fathering Parcel described and depicted on the Final Plat as “Private Access and Utility Easement.” 2.6 Agricultural Lands Conservation Easement: The Agricultural Lands Conservation Easement that was Recorded on _______________, 200__, at Reception No. ________________, or any amended or replacement version thereof in effect from time to time. 2.7 Articles of Incorporation or Articles: The Articles of Incorporation of the Association which have been or will be filed with the Secretary of State of the State of Colorado, as amended from time to time. 2.8 Assessment: An assessment, which may be a Common Assessment, a Special Assessment or a Specific Assessment, that is levied by the Association on one or more Lots pursuant to the terms of this Declaration. 2.9 Association: Stage Road Homeowners Association, a Colorado nonprofit corporation. 2.10 Authorized Representative: A natural person who is appointed by an Owner, pursuant to Section 6.3, as a proxy, attorney-in-fact or authorized representative to vote on behalf of such Owner in matters coming before the Association. 2.11 Board of Directors or Board: The Board of Directors of the Association. 2.12 Building Envelope: The building envelope depicted as such for each Lot on the Final Plat. 13.11Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 3 for Stage Road Planned Unit Development/Subdivision 2.13 Bylaws: The Bylaws of the Association, as amended from time to time. 2.14 CCIOA: The Colorado Common Interest Ownership Act, codified at Colo. Rev. Stat. § 38-33.3-101 et seq., as the same has been and may hereafter be amended from time to time, and any statute which from time to time may replace the same. 2.15 City: The City of Aspen, a municipal corporation of the State of Colorado. 2.16 Common Allocation: A percentage allocated to each Lot that is derived from a fraction, the numerator of which is one and the denominator of which is the total number of Lots within the Property. The percentages comprising the Common Allocations for the various Lots may be rounded by the Association in accordance with its ordinary practices adopted from time to time, provided the rounding methodology is applied in a materially uniform and consistent manner for all of the Lots. 2.17 Common Assessment: An Assessment levied on all Lots subject to assessment to fund the Common Expenses as more particularly described in Section 7.3. 2.18 Common Elements: All property or interests therein (including interests granted by easements) and, in the case of real property, the Improvements thereon, within the Property owned by the Association pursuant to this Declaration for the benefit, use or enjoyment of the Owners. 2.19 Common Expenses: Except for those costs and expenses expressly excluded below, all costs, expenses and financial liabilities incurred by the Association pursuant to this Declaration or the Bylaws, including, without limitation: all costs of operating, managing, maintaining, replacing or restoring the Common Elements and those easements and easement areas for which, the costs of repair, maintenance, etc., thereof, the Association is responsible; obligations of the Association under the PUD; taxes on the Common Elements; general administrative costs incurred by the Association, including any administrative costs incurred in levying and collecting Assessments; and contributions to the Reserve Fund. Common Expenses shall not include costs or expenses to be funded by or payable through the levying of Specific Assessments. 2.20 Cultural Use Area: The portion of real property depicted and described on the Final Plat as “Lot C.” The Cultural Use Area is not a Lot as defined herein and is not part of the Property. Accordingly, the Cultural Use Area is not subject to the covenants, conditions or restrictions of this Declaration. The Cultural Use Area is, however, affected and benefited by certain easements established by this Declaration. 2.21 Declarant: Bar/X Ranch LLC, a Colorado limited liability company, or any successor in interest or transferee who takes title to any portion of the Property for the purpose of development and/or sale and who is designated as Declarant in a Recorded instrument executed by: (a) the immediately preceding Declarant in the case of total transfer of the Declarant status; or (b) the current Declarant in the case of a partial transfer of the Declarant status, it being the intent hereof that the status of Declarant may be jointly held and exercised by more than one Person pursuant to any terms and conditions that Declarant who establishes such jointly held status may impose. 2.22 Declarant Control Period: The period beginning on the date the Association is formed and ending on the first to occur of: (i) 60 days after 100% of the Lots have been 13.12 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 4 for Stage Road Planned Unit Development/Subdivision conveyed to Owners other than Declarant; or (ii) the date on which Declarant, in its sole discretion, voluntarily terminates the Declarant Control Period pursuant to a Recorded statement of termination executed by Declarant. If Declarant terminates the Declarant Control Period pursuant to the preceding clause (ii), Declarant may require that, for the balance of what would have been the Declarant Control Period had Declarant not terminated it, certain actions of the Association or the Board, as described in the Recorded statement of termination, be approved by Declarant before they become effective. After termination of the Declarant Control Period, Declarant, if still an Owner, will have all of the rights and duties given to Owners under this Declaration and will retain all of the rights belonging to Declarant under this Declaration other than those that expire by their terms upon the expiration of the Declarant Control Period. 2.23 Declaration: This Declaration, as amended or supplemented from time to time. 2.24 Delinquency Costs: Is defined in Section 8.1. 2.25 Design Guidelines: Any applicable design guidelines adopted and enforced by the ACC pursuant to the Master Architectural Restrictions, as such guidelines may be amended from time to time. 2.26 Director: A member of the Board of Directors. 2.27 Eligible Holder: An institutional holder, insurer or guarantor of a First Mortgage who provides a written request for notices to the Association, stating the name and address of such holder, insurer or guarantor and the street address, or, if not available, other sufficient information, of the Lot to which its Mortgage relates. 2.28 Fathering Parcel: That portion of real property depicted on the Final Plat as the “Fathering Parcel” or “Lot F.” The Fathering Parcel is not a Lot as defined herein and is not part of the Property. Accordingly, the Fathering Parcel is not subject to the covenants, conditions or restrictions of this Declaration. The Fathering Parcel is, however, affected and benefited by certain easements established by this Declaration. In addition, the owner of the Fathering Parcel has certain rights under this Declaration. 2.29 Fathering Parcel Agricultural Easement: Is defined in Section 5.6.1. The portions of the Lots that are subject to the Fathering Parcel Agricultural Easement are depicted on the Final Plat. 2.30 Fathering Parcel Easement Areas: Those portions of the Lots depicted and described on the Final Plat as “Agricultural Lands Conservation Easement” and “Fathering Parcel Agricultural Easement.” The Fathering Parcel Easement Areas are subject to both the Agricultural Lands Conservation Easement and the Fathering Parcel Agricultural Easement. 2.31 Final Plat: The subdivision plat for Stage Road Subdivision as approved by the City and Recorded at Reception No. __________ on _______________, 200__, or any amended or replacement version thereof in effect from time to time. 2.32 First Mortgage: A Mortgage that is Recorded and has priority of record over all other Recorded liens at the time of its recording, except those liens made superior by statute (e.g., general ad valorem tax liens and special assessments and mechanics’ liens). 13.13Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 5 for Stage Road Planned Unit Development/Subdivision 2.33 Fiscal Year: The fiscal year of the Association set from time to time by resolution of the Board. 2.34 Improvements: All structures, improvements and appurtenances on or to real property of every type and kind including, without limitation, buildings, outbuildings, fixtures, utilities, patios, tennis courts, swimming pools, garages, doghouses, mailboxes, aerials, antennas, facilities associated with regular or cable or satellite television, roads, driveways, parking areas, fences, screening walls, retaining walls, stairs, decks, landscaping, grading, drainage facilities, windbreaks, plantings, planted trees and shrubs, poles, signs, exterior air conditioning units, water softener fixtures or equipment, pumps, wells, tanks, solar collectors, reservoirs, pipes, lines, meters, towers and other facilities used in connection with water, sewer, gas, electricity, solar energy, telephone or other utilities or telecommunications facilities, as well as any construction activities necessary to construct any such items. 2.35 Lot: A lot within the Property as depicted on the Final Plat; provided that the term “Lot” shall not include any Common Elements owned in fee simple by the Association, or any property dedicated or otherwise conveyed to any government, special district or other quasi- governmental entity for a public purpose. The Fathering Parcel, the Ranch Manager’s Lot and the Cultural Use Area are not within the Property and are not Lots. 2.36 Master Architectural Restrictions: The Declaration of Architectural Restrictions for Stage Road Planned Unit Development/Subdivision that is or will be Recorded against Stage Road Subdivision, as such covenants may be amended from time to time. 2.37 Member: A Person who is a member of the Association pursuant to Section 6.2. 2.38 Membership: The membership in the Association held by a Member. 2.39 Mortgage: An unpaid or outstanding mortgage, deed of trust, deed to secure debt or any other form of security instrument encumbering the Property or a portion thereof. 2.40 Mortgagee: A beneficiary or holder of a Mortgage. 2.41 Municipal Code: The Aspen Municipal Code, a codification of the general ordinances of the City, in effect from time to time. 2.42 Owner: A Person or Persons, including Declarant, owning fee simple title of record to any Lot from time to time. The term “Owner” shall include a seller under an executory contract for sale and exclude a buyer thereunder and shall include a landlord under a lease for a Lot and exclude a tenant thereunder. 2.43 PUD: The final PUD development plan for Stage Road Subdivision as approved by the City, including all tables, plans, exhibits and maps attached to or incorporated into such plan, Recorded on _________________, at Reception No. ______, as such development plan may be supplemented, amended and/or restated from time to time. 2.44 Permittee: A Person, other than an Owner, who is a tenant or occupant of a Lot or a Person who is an agent, employee, customer, contractor, licensee, guest or invitee of an Owner or of such tenant or occupant. 13.14 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 6 for Stage Road Planned Unit Development/Subdivision 2.45 Person: A natural person, corporation, partnership, limited liability company, trust, municipality, special district, or other legal entity, whether public or private. 2.46 Pre-Annexation Agreement: The Pre-Annexation Agreement by and between the City and Declarant that was Recorded on _____________, 200__, at Reception No. _________. 2.47 Property: The lots within Stage Road Subdivision described on Exhibit A attached to this Declaration, the appurtenances thereto, and all Improvements now in place or hereafter constructed thereon. The Property does not include the Fathering Parcel, the Ranch Manager’s Lot or the Cultural Use Area. 2.48 Quorum: With respect to a meeting of the Members or the Board, the percentage or number of the Members or Board that constitutes a quorum pursuant to the applicable provisions of the Bylaws. 2.49 Ranch Manager’s Lot: The portion of real property depicted and described on the Final Plat as “Lot RM.” The Ranch Manager’s Lot is not a Lot as defined herein and is not part of the Property. Accordingly, the Ranch Manager’s Lot is not subject to the covenants, conditions or restrictions of this Declaration. The Ranch Manager’s Lot is, however, benefited by certain easements established by this Declaration. 2.50 Records: The official real property records maintained by the clerk and recorder of Pitkin County, Colorado; the phrases “to Record” and “Recording” mean, respectively, to file or filing for recording in the Records, and the phrases “of Record” and “Recorded” mean having been recorded in the Records. 2.51 Reserve Fund: A reserve fund that may be established and maintained by the Association for the periodic major repair or replacement of the Common Elements and for unbudgeted and unplanned Common Expenses incurred by the Association from time to time. 2.52 Rules: The rules and regulations, if any, governing the use of the Property adopted from time to time by the Association. The Rules shall be binding upon all Owners and their Permittees. 2.53 Shared Services Discount. Is defined in Section 7.3.2. 2.54 Special Assessment: An Assessment levied in accordance with Section 7.4. 2.55 Specific Assessment: An Assessment levied in accordance with Section 7.5. 2.56 Taking: A taking of property by the exercise of eminent domain or conveyance in lieu thereof. 3 Creation of the Community 3.1 Creation. Upon the Recording of this Declaration, the Property shall be a small planned community pursuant to Section 38-33-3-116 of CCIOA. 13.15Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 7 for Stage Road Planned Unit Development/Subdivision 3.2 Number of Lots. There are 12 Lots within the Property. Without limiting the restrictions of this Declaration on subdivision of the Lots, in no event may there be more than 20 Lots within the Property. 3.3 Allocations. 3.3.1 Allocation of Votes. In all matters submitted to a vote of the Members, each Lot is allocated one vote in the Association, provided, however, that no vote shall be exercised for any Lot owned by the Association. 3.3.2 Allocation of Common Expenses. Subject to Section 7.6, each Lot is allocated, and the Owner of the Lot is liable for, a percentage of the Common Expenses equal to such Lot’s Common Allocation in effect from time to time. All other costs and expenses of the Association are allocated among the Lots as otherwise provided in this Declaration. 4 Development of The Property 4.1 Governmental/Utility Interests. For so long as Declarant owns any of the Property, Declarant may designate sites within the Property for fire protection and utility facilities. Such a site may include Common Elements, in which case the Association shall take whatever action is required with respect to such site to permit such use, including conveyance of the site, if so directed by Declarant. Such a site may include other property not owned by Declarant provided the Owner of such property consents. The Association may dedicate portions of the Common Elements to the City or to any other local, state or federal governmental or quasi-governmental entity subject to such approval as may be required by Section 13.2. 4.2 Declarant’s Right to Construct Common Elements. Without creating any obligation on the part of Declarant to construct any Common Elements or Improvements on any of the Common Elements, Declarant shall have the right to construct any Common Elements or Improvements thereon. 4.3 Subdivision by Owners. No Lot may be subdivided, resubdivided or reconfigured except in accordance with the PUD and the requirements of the City. Amendments to the PUD shall be considered rezonings that are subject to Section 10.16. The provisions of this Section 4.3 shall not be construed as limiting the authority or discretion of the ACC pursuant to the Master Architectural Restrictions and the Design Guidelines. Without limiting the foregoing, no Lot may be subdivided and no boundary line between adjoining Lots may be adjusted without the prior written consent of the owner of the Fathering Parcel. 5 Easements 5.1 Easement for Use, Access and Enjoyment in and to the Common Elements. Declarant hereby establishes and grants to each Owner a nonexclusive easement of use, access and enjoyment in and to the Common Elements for the purposes for which the Common Elements are intended and operated by the Association. Any Owner may extend its right of use and enjoyment to its Permittees subject to reasonable regulation by the Association. Unless otherwise provided in a writing furnished to the Association by the Owner, an Owner who leases its Lot shall be deemed to have assigned all such rights to the lessee or lessees of such Lot. Without limiting the generality of the foregoing, Declarant 13.16 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 8 for Stage Road Planned Unit Development/Subdivision hereby grants to each Owner a nonexclusive easement over and across all walkways and other pedestrian access-ways and the Access Road Easement Areas for the purpose of gaining pedestrian or vehicular access between and among the roads, trails and sidewalks, if any, adjoining or within the Property, other Common Elements and any Lots. The easement established by this Section 5.1 shall be appurtenant to and pass with the title to the Lots and shall be subject to: 5.1.1 This Declaration and any other applicable covenants; 5.1.2 Any restrictions or limitations contained in any deed conveying any of the Common Elements to the Association; 5.1.3 The right of the Association to adopt Rules regulating the use and enjoyment of the Common Elements; 5.1.4 The right of the Association to suspend the right of any Owner or such Owner’s Permittees to use any recreational facility or other amenity of any type situated within or on the Common Elements (i) for any period during which any charge against such Owner’s Lot remains delinquent, and (ii) for a period not to exceed 30 days for a single violation (or for a longer period in the case of any continuing violation) of this Declaration, the Bylaws or the Rules, after providing such notice and hearing as may be required by the Bylaws; 5.1.5 The right of the Association to dedicate or transfer any of the Common Elements, subject to Section 13.2 and such other requirements as may be set forth in this Declaration; and 5.1.6 The right of the Association to mortgage, pledge or hypothecate any of the Common Elements as security for money borrowed or debts incurred, subject to the requirements set forth in Section 13.2. 5.2 Easements for Encroachment of Common Elements. In the event that, as a result of the construction, reconstruction, shifting, settlement, restoration, rehabilitation, alteration or improvement of any Improvement located on the Common Elements or any portion thereof, any portion of any Common Elements now or hereafter is unintentionally and without the actual knowledge of the Association made to encroach upon any Lot, Declarant hereby establishes and grants an easement for the continued existence and maintenance of such encroachment which will continue for so long as such encroachment exists and which will burden the Lot encroached upon and benefit the encroaching Common Element. In no event, however, will an easement for any such encroachment be deemed established or granted if such encroachment is materially detrimental to or interferes with the reasonable use and enjoyment of the Lot(s) burdened by such encroachment or if such encroachment occurred with the actual knowledge of the Association. 5.3 Easements Benefiting Declarant. Declarant reserves such easements over and across the Property as may be reasonably necessary for Declarant’s exercise of any of its rights or obligations hereunder, including, without limitation, the showing of the Property or any portion thereof to prospective purchasers or lessees. 5.4 Right of Entry. Declarant reserves for itself and for the Association an easement for the right, but not the obligation, to enter upon any Lot: (i) for emergency, security and safety 13.17Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 9 for Stage Road Planned Unit Development/Subdivision reasons; (ii) to inspect any Lot for the purpose of ensuring compliance with this Declaration, the Bylaws and the Rules; and (iii) to access any property owned by Declarant within, adjacent to or near the Property. Such right may be exercised by any member of the Board and the Association’s officers, agents, employees and managers and, for emergency, security and safety purposes, all police, fire and ambulance personnel and other similar emergency personnel in the performance of their duties. This right of entry shall include the right of the Association to enter upon any Lot to cure any condition which may increase the possibility of a fire or other hazard in the event an Owner fails or refuses to cure such condition within a reasonable time after requested by the Association, but shall not authorize entry into the residence located on any Lot without permission of the occupant, except by emergency personnel acting in their official capacities. 5.5 General Access Road Easement. 5.5.1 Creation of Easement. Subject to Sections 5.6.2 and 5.7, a perpetual, nonexclusive easement is hereby created and established over, through and across the Access Road Easement Areas for the purposes set forth in Section 5.5.2 (the “Access Road Easement”). Without limiting Sections 5.6.2 and 5.7, the Access Road Easement shall be for the benefit of Declarant (for purposes of carrying out its rights as Declarant under this Declaration), the Association and the Owners, and may be used by Declarant, the Association, the Owners and their respective Permittees. 5.5.2 Purposes. Subject to the provisions of this Declaration, the Access Road Easement shall be for the following purposes: (i) construction, maintenance, service, improvement, repair and replacement of the Access Road System by the Association and, in Declarant’s discretion, Declarant; (ii) pedestrian, equestrian and vehicular access on the Access Road System to and from the portions of the Property accessed by the Access Road System; (iii) ingress and egress to and from each Lot from and to any public or private right-of-way accessible from the Access Road System. Use of the Access Road Easement shall comply with applicable laws and shall be subject to the Rules. No Owner shall use or permit the use of the Access Road Easement in any manner that unreasonably interferes with any other Owner's or Permittee’s or Declarant’s permitted use of the Access Road Easement. Neither the Owners, the Association nor the Declarant shall use the Access Road Easement in a manner that unreasonably interferes with the rights of the owner of the Fathering Parcel pursuant to the easements established by Section 5.6. Declarant reserves the right to grant to neighboring properties access and utility easements within the portion of the Access Road Easement Areas that run along the formerly public road known as Stage Road, upon terms and conditions that comply with the requirements of the Pre-Annexation Agreement. 5.5.3 No Public Dedication. Nothing contained in this Declaration shall be deemed to be a gift or dedication of any portion of the Access Road Easement Area or the Access Road System or any other portion of the Property to or for the general public for any public purpose whatsoever. 5.5.4 Common Elements. The Access Road Easement and the Access Road System are Common Elements. 5.6 Fathering Parcel Easements. Declarant hereby reserves and declares the following perpetual easements for the benefit of, and as appurtenances to, the Fathering Parcel for the benefit of the owner of the Fathering Parcel. 13.18 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 10 for Stage Road Planned Unit Development/Subdivision 5.6.1 Agricultural Easement. A perpetual, exclusive easement is hereby created and established over, through and across the Fathering Parcel Easement Areas for the benefit of and as appurtenance to the Fathering Parcel for agricultural and ranching uses of every nature whatsoever (subject to applicable laws) by the owner of the Fathering Parcel and its employees, agents, lessees, licensees and invitees, including, without limitation: (a) raising, grazing, pasturing, feeding, watering, herding, transporting and breeding livestock (as defined in C.R.S. § 35-1-102 as in effect on the date this Declaration is Recorded); (b) cultivating, growing, mowing, harvesting, baling and storing hay, straw and any crops, which hay, straw and other crops shall be the property of the cultivator or grower and may be removed from the Fathering Parcel Easement Area as the personal property of such cultivator or grower; and (c) installing and repairing such fencing as is necessary and customarily associated with such uses, provided that such fencing shall include gates and cattle guards as are necessary to avoid any unreasonable obstruction of the Access Road System and any driveways (the “Fathering Parcel Agricultural Easement”). The owner of the Fathering Parcel may lease its interest in the Fathering Parcel Agricultural Easement or any part of the Fathering Parcel Agricultural Easement. Though the Fathering Parcel Agricultural Easement is an exclusive easement, to the extent that any portion of the Access Road System is located within the Fathering Parcel Easement Area, such exclusive nature of the Fathering Parcel Agricultural Easement shall not prevent the Owners’ and the Association’s full use of the Access Road Easement to the full extent permitted under Section 5.5. The owner of the Fathering Parcel shall have the option at any time, by written notice to the Association, to require that the Association take over responsibility for maintenance and upkeep of any part of the Fathering Parcel Easement Area on either a temporary or permanent basis, in which case the Fathering Parcel Agricultural Easement shall be deemed assigned to and assumed by the Association and shall be considered part of the Common Elements with respect to the applicable portion of the Fathering Parcel Easement Area for the duration of such assignment. If the owner of the Fathering Parcel exercises the option described in the preceding sentence, the owner of the Fathering Parcel shall also license or otherwise grant to the Association the use of such water rights and access thereto as are reasonably required to property irrigate the applicable portion of the Fathering Parcel Easement Area. The owner of the Fathering Parcel shall also have the right to assign rights to use and/or maintain the Fathering Parcel Easement Area to an Owner with respect to the portion of the Fathering Parcel Easement Area located on said Owner’s Lot. The portions of the Lots that are within the Fathering Parcel Easement Areas are, in addition to being subject to the Fathering Parcel Agricultural Easement, also subject to the Agricultural Lands Conservation Easement. No use shall be made of any portion of the Property that is subject to the Agricultural Lands Conservation Easement in violation of the terms and conditions of the Agricultural Lands Conservation Easement. 5.6.2 Access Easement. A perpetual, nonexclusive easement is hereby reserved over, through and across the Access Road Easement Areas for the benefit of the owner of the Fathering Parcel and as an appurtenance to the Fathering Parcel for the purposes of: (1) pedestrian, livestock, vehicular, and equestrian access on the Access Road System for the purpose of providing ingress to and egress from the Fathering Parcel and between the Fathering Parcel and the Fathering Parcel Easement Area and any lands adjoining or near the Property owned by the owner of the Fathering Parcel; (2) in the discretion of the owner of the Fathering Parcel, constructing, repairing, servicing, improving, maintaining and replacing an entrance feature and cattle guard at the entrance to the Property at the point where the Access 13.19Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 11 for Stage Road Planned Unit Development/Subdivision Road System intersects Stage Road; and (3) in the discretion of the owner of the Fathering Parcel, constructing, maintaining, repairing, replacing, improving or servicing any other element of the Access Road System. The owner of the Fathering Parcel shall not use the easement established by this Section in a manner that unreasonably interferes with the rights of the Owners, the Association or the Declarant pursuant to the Access Road Easement established by Section 5.5; provided, however, that the owner of the Fathering Parcel shall have the right to temporarily close sections of the Access Road System to vehicular traffic for the purpose of moving livestock. 5.6.3 Irrigation Easement. A perpetual, nonexclusive easement is hereby created and established over, through, under and across all of the Property, excluding the area of the Property within each Building Envelope, for the benefit of the owner of the Fathering Parcel and as an appurtenance to the Fathering Parcel for the purposes of constructing, installing, using, operating, maintaining, repairing, relocating and replacing headgates, ditches, laterals, wells, ponds, irrigation lines, pipes, flumes, sprinklers and other Improvements relating to the use and enjoyment of water rights and the conveyance and storage of water for both domestic and agricultural uses. 5.7 Access Easement for Cultural Use Area and Ranch Manager’s Lot. A perpetual, nonexclusive easement is hereby created and established over, through and across the Access Road Easement Areas for the benefit of the owners of the Cultural Use Area and the Ranch Manager’s Lot and as an appurtenance to, respectively, the Cultural Use Area and Ranch Manager’s Lot for the purposes of pedestrian, equestrian and vehicular travel on the Access Road System for the purpose of providing ingress to and egress from, respectively, the Cultural Use Area and Ranch Manager’s Lot and any public or private rights-of-way accessible by use of the Access Road System. 5.8 Easements Run with Land. Except for the easements described in Section 5.3, all easements established and granted pursuant to this Article 5 are appurtenant to and run with the Property and will be perpetually in full force and effect and will inure to the benefit of and be binding upon Declarant, the Association, Owners, Permittees and any other Persons having any interest in the Property or any part thereof. The Lots and the Common Elements will be conveyed and encumbered subject to all easements set forth in this Article 5, whether or not specifically mentioned in such conveyance or encumbrance. 6 The Association 6.1 Function of Association, Generally. The Association shall be responsible for: management, maintenance, repair, replacement, operation and control of the Common Elements and collection of the Assessments. The Association shall be the primary entity responsible for enforcement of this Declaration, the Articles, the Bylaws and the Rules. The purposes and powers of the Association and the rights and obligations of Members may and shall be amplified by provisions of the Articles, the Bylaws and the Rules. Neither the Articles, the Bylaws nor the Rules shall for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration. In case of conflict between the Declaration and the Articles, the Bylaws or the Rules, this Declaration shall govern. 6.2 Membership. Every Owner, including Declarant to the extent it is the Owner of one or more Lots, shall be a Member. When an Owner consists of more than one Person, all 13.20 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 12 for Stage Road Planned Unit Development/Subdivision such Persons will, collectively, constitute one Member of the Association and all such Persons shall be jointly and severally obligated to perform the responsibilities of Owner. Membership will automatically terminate when a Person ceases to be an Owner, whether through sale, transfer, intestate succession, testamentary disposition, foreclosure or otherwise. The Association will recognize a new Owner as a Member upon presentation of satisfactory evidence of the sale, transfer, succession, disposition, foreclosure or other transfer of a Lot to such Owner. Membership 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 will be void and will not be recognized by the Association. 6.3 Authorized Representative. Any Owner who is either: (i) two or more Persons; or (ii) one Person that is not a natural person (i.e., an estate or a trust, corporation, partnership, limited liability Association or other entity), shall appoint, and any Owner who is one natural person may appoint, an Authorized Representative. Any Owner so required to appoint an Authorized Representative shall do so immediately upon becoming an Owner. Any Owner who is required or elects to appoint an Authorized Representative shall provide written notice to the Association of the appointment of such Authorized Representative or any subsequent replacement therefor within 10 days after appointment. Such notice will be deemed a proxy given by all Persons constituting such Owner to the Authorized Representative named therein for all purposes under this Declaration, the Bylaws, and the Colorado Revised Nonprofit Corporation Act, except that such proxy may have an indefinite duration. The appointment of an Authorized Representative will be binding upon all Persons comprising the appointing Owner and the vote of the Authorized Representative will be conclusive as to the Association, unless and until the Association receives a notice appointing a replacement Authorized Representative (or, in the case of an Authorized Representative appointed by an Owner who is one natural person, a notice terminating the appointment of such Authorized Representative). Unless the notice of appointment expressly states otherwise, the Authorized Representative shall be authorized to designate in a writing delivered to the Association a temporary, substitute Authorized Representative. Upon receipt of any notice appointing an Authorized Representative, the Association may request such additional evidence of authority as it may reasonably deem 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, such Owner may elect to appoint: (1) the same natural person to service as Authorized Representative for each Lot owned by such Owner; (2) a different natural person to serve as Authorized Representative for each such Lot; or (3) the same natural person to serve as Authorized Representative for two or more of such Lots and one or more different natural persons to serve as Authorized Representatives for the remaining Lot(s) owned by such Owner. 6.4 Majority Approval. Except as otherwise provided in this Declaration or the Bylaws, the affirmative vote of the Owners present and voting, either in person or by proxy, at a meeting of the Association called and held in accordance with the Bylaws will be sufficient to approve any matter submitted to a vote of the Association if such Owners hold a majority (i.e., more than 50%) of the percentage of votes in the Association represented at such meeting. 6.5 Board of Directors. The affairs of the Association shall be governed by the Board of Directors, which may, by resolution, delegate any portion of its authority to an executive committee or an officer, executive manager or Director of the Association. The qualifications and number of Directors, the term of office of Directors, the manner in which Directors shall be elected and the manner in which Directors shall be replaced upon removal or resignation 13.21Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 13 for Stage Road Planned Unit Development/Subdivision shall be as set forth in the Bylaws. The Bylaws shall contain provisions that are identical in all substantive respects to the following provisions: 6.5.1 Appointment of Directors during Declarant Control Period. During the Declarant Control Period, there shall be three Directors, all of whom shall be appointed by Declarant. No Director appointed by Declarant shall be required to be an Owner or the Authorized Representative of an Owner. 6.5.2 Election of Directors after Declarant Control Period. From and after the end of the Declarant Control Period, the Board will consist of three Directors (or such other number, but never fewer than three, as may from time to time be set forth in the Bylaws), elected by the Owners. Directors elected under this Section 6.5.2 shall take office upon termination of the Declarant Control Period. 6.6 Removal of Directors. Notwithstanding any provision of this Declaration or the Bylaws to the contrary, the Owners, by the affirmative vote of Owners 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 Director other than a Director appointed by Declarant. Any Director appointed by Declarant may be removed, with or without cause, only by Declarant. 6.7 Officers. The Bylaws shall provide for appointment of officers of the Association by the Board; provided, however, that during the Declaration Control Period, the Declarant may appoint and remove the officers of the Association with or without cause. 6.8 Delivery of Property to Association. Within 60 days after the Owners other than Declarant elect a majority of the Directors, Declarant shall deliver to the Association all property of the Association in the possession or control of Declarant. 6.9 Powers. In the performance of its functions and duties, the Association shall have the power to: 6.9.1 adopt and amend the Bylaws, and make and enforce the Rules, consistent with the rights, duties, terms and conditions established by this Declaration and the Bylaws; 6.9.2 adopt and amend budgets for revenues, expenditures and reserves and assess and collect any Assessments and any other amounts due from Owners or others to the Association; 6.9.3 hire and terminate managing agents and other employees, agents and independent contractors; 6.9.4 exercise any of the enforcement powers set forth in Section 6.10 or elsewhere in this Declaration; 6.9.5 institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more Owners on matters affecting the Property or the Association; 13.22 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 14 for Stage Road Planned Unit Development/Subdivision 6.9.6 make contracts and incur liabilities in accordance with a properly ratified budget; 6.9.7 borrow funds to cover Association expenditures and pledge Association assets as security therefor, provided that Common Elements may be subjected to a security interest only pursuant to Section 13.2; 6.9.8 provide for the use, maintenance, repair, replacement and modification of the Common Elements in accordance with the properly ratified budget or otherwise in accordance with this Declaration; 6.9.9 cause additional Improvements to be made as a part of the Common Elements in accordance with the properly ratified budget, or otherwise in accordance with this Declaration; 6.9.10 acquire, hold, encumber and convey in its own name any right, title or interest to real or personal property (including, without limitation, one or more Lots), provided that Common Elements may be conveyed or encumbered only pursuant to Section 13.2; 6.9.11 grant easements, leases, licenses, and concessions through or over the Common Elements; 6.9.12 impose and receive any payments, fees or charges for any special services provided to Owners; 6.9.13 impose charges for late payment of Assessments and recover reasonable attorneys’ fees and other legal costs for collection of Assessments and other actions to enforce the powers of the Association, regardless of whether or not suit was initiated, and, after providing notice and an opportunity to be heard, levy reasonable fines for violations of this Declaration, the Bylaws or the Rules; 6.9.14 impose reasonable charges and fees for services including, but not limited to, the preparation, copying and recordation of amendments to this Declaration or statements of unpaid Assessments pursuant to Section 8.8; 6.9.15 provide for the indemnification of its officers and Directors as provided in the Bylaws or the Articles and maintain directors’ and officers’ liability insurance; 6.9.16 assign its right to future income, including the right to receive Assessments; 6.9.17 enter into any agreements with any other owners association with jurisdiction over any land near or adjacent to Stage Road Subdivision for the coordinated performance of any permitted functions the Association desires to have performed uniformly; 6.9.18 enter into any agreement with other landowners (including the owner of the Fathering Parcel or any land near or adjacent to Stage Road Subdivision) by which the Association agrees to perform property management, maintenance or upkeep functions in exchange for a fee or other consideration; 13.23Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 15 for Stage Road Planned Unit Development/Subdivision 6.9.19 perform any duties or functions properly delegated to the Association by the ACC; 6.9.20 exercise any other powers expressly conferred by this Declaration, the Bylaws or reasonably implied from or necessary to effectuate such powers; 6.9.21 except as prohibited by the Articles, the Bylaws or this Declaration, exercise all other powers that may be exercised in the State of Colorado by a nonprofit corporation; and 6.9.22 exercise any other powers necessary and proper for the governance and operation of the Association. 6.10 Enforcement. 6.10.1 Sanctions and Self-Help. The Association may impose sanctions for violations of this Declaration, the Bylaws or the Rules in accordance with procedures set forth in the Bylaws, including reasonable monetary fines and suspension of the right to use any Common Elements sufficient to ensure compliance therewith. In addition, in accordance with the Bylaws, the Association may exercise self-help (e.g., enter upon a Lot and make any corrective measure necessary to cure a violation) to cure violations and suspend any services it provides to the Lot of any Owner who is more than 30 days delinquent in paying any Assessment or other charge due to the Association following delivery of a notice of such violations to such Owner. All remedies set forth in this Declaration and the Bylaws shall be cumulative of each other and of any remedies available at law or in equity. In any action to enforce the provisions of this Declaration or the Rules, if the Association prevails it shall be entitled to recover all costs, including, without limitation, attorneys’ fees and court costs, reasonably incurred in such action. 6.10.2 No Waiver. In no event shall the Association’s failure to enforce any covenant, requirement, restriction or rule provided for in this Declaration, the Bylaws or the Rules constitute a waiver of the Association’s right to later enforce such provision or any other covenant, requirement, restriction or rule. 6.11 Board Authority. Except as otherwise specifically provided by law or in this Declaration, the Articles or the Bylaws, all rights and powers of the Association may be exercised by the Board without a vote of the Members. In the performance of their duties, the Directors will act according to their ordinary business judgment. Unless otherwise provided in this Declaration, the affirmative vote of a majority (i.e., more than 50%) of the Directors will be necessary and sufficient to approve any matter before the Board. The Board shall select the officers of the Association, which officers may also serve as Directors, except that during the Declarant Control Period, Declarant may appoint and may remove the officers of the Association. 6.12 Required Van Service. The Association shall purchase, maintain and operate (or contract for the operation of) a passenger van with a minimum of 10 seats, and keep it available to: (a) take employees to and from the intercept parking area that will be established on or near the Property; (b) take children to and from school; (c) collect groceries for multiple Owners; and (d) provide other transportation services for the Owners and their Permittees for the purpose of reducing automobile usage. While not reducing overall trip 13.24 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 16 for Stage Road Planned Unit Development/Subdivision demand, providing a van service combines multiple trips into a single vehicle and thereby reduces overall trip generation. 6.13 Pre-Annexation Agreement and PUD. In addition to all other duties imposed on the Association by law and this Declaration, the Association shall perform all of its obligations under the Pre-Annexation Agreement and the PUD. 7 Financial Matters, Budget and Assessments 7.1 General Financial Matters; Budget. The Board, on behalf of the Association, shall discharge the following obligations with respect to financial matters: 7.1.1 Books and Records. The Board shall cause to be maintained full and complete books and records of the Association’s business and operations, including, without limitation, current copies of this Declaration and all amendments hereto, the Articles, the Bylaws, the Rules, the budget for the current Fiscal Year, financial statements, books and records reflecting all assets, liabilities, capital, income and expenses of the Association, and supporting materials, such as bank statements and invoices, for at least the shorter of (i) the prior seven Fiscal Years or (ii) all of the Fiscal Years in which the Association has been in existence. All of such books and records will be made available for inspection by any Owner, holder of a First Mortgage, insurer or guarantor of a First Mortgage or their respective authorized representatives and the owner of the Fathering Parcel, during normal business hours upon reasonable prior written request. 7.1.2 Returns. The Board will cause to be prepared and filed before delinquency any and all tax, corporate or similar returns or reports that the Association is required by law to prepare and file. 7.1.3 Preparation of Budget. The Board will cause to be prepared and will adopt annually a budget for the Association for each Fiscal Year. The Board will deliver each adopted budget to the Owners within 30 days following its adoption. Each annual budget will include all of the following items, in addition to any other items the Board deems appropriate: 7.1.3.1 the estimated Common Expenses of the Association for such Fiscal Year; 7.1.3.2 the estimated revenues of the Association that will be available to defray the Common Expenses; 7.1.3.3 the amount of Common Assessments that will be necessary to meet the estimated Common Expenses of the Association for such Fiscal Year; 7.1.3.4 the current cash balance in the Reserve Fund, which fund shall be established and maintained by the Board if the Board determines there is a need for the Reserve Fund; 7.1.3.5 an estimate of the amount required to be spent during such Fiscal Year from the Reserve Fund for the major repair or replacement of the Common Elements; and 13.25Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 17 for Stage Road Planned Unit Development/Subdivision 7.1.3.6 a statement of the amount required to be added to the Reserve Fund during such Fiscal Year to cover anticipated withdrawals and adequately address contingencies and anticipated needs in future Fiscal Years. 7.1.4 Annual Financial Statements. The Board will cause to be prepared annually a report with respect to the financial condition of the Association. Such report shall consist of a balance sheet as of the end of the preceding Fiscal Year, an operating (income) statement for such Fiscal Year and a statement of changes in the Association’s financial position for such Fiscal Year. A copy of such annual report will be distributed to each Owner within 120 days after the close of each Fiscal Year. 7.1.5 Reserve Fund. If the Association establishes a Reserve Fund, the Board shall cause the Reserve Fund to be maintained in a bank account that is separate from the bank account(s) used for the Association’s ordinary receipts and disbursements. 7.2 Creation of Assessments. There shall be three types of Assessments: (a) Common Assessments as described in Section 7.3; (b) Special Assessments as described in Section 7.4; and (c) Specific Assessments as described in Section 7.5. Each Owner, by accepting a deed for any Lot, is deemed to covenant and agree to pay these Assessments pursuant to the terms and conditions of this Declaration. 7.3 Common Assessments. Each Lot is subject to Common Assessments for the Lot’s share of the Common Expenses as allocated pursuant to Section 3.3.2. Prior to the time that Common Assessments have commenced as to all of the Lots, Declarant shall fund any shortfall in the revenues of the Association as necessary to cover the Common Expenses. Common Assessments will be calculated, paid, adjusted and reconciled in accordance with the following provisions: 7.3.1 Budget and Payment. Taking into account any funds provided by Declarant pursuant to Section 7.3, the Association shall set the Common Assessments for each Fiscal Year at a level that is reasonably expected to produce total revenues for the Association for such Fiscal Year equal to the total Common Expenses set forth in the budget adopted by the Board. In determining the total funds to be generated through the levy of Common Assessments, the Board may consider other sources of funds available to the Association, including any surplus from prior Fiscal Years. In addition, the Board may take into account the number of Owners that are expected to qualify during the applicable Fiscal Year for the Shared Services Discount. 7.3.2 Shared Services Discount. The Association shall have the power and authority to establish a discount (a “Shared Services Discount”) against the Common Assessments payable by an Owner during any time that the Owner rents the ADU on the Owner’s Lot to a person who provides “qualified services” (as defined below) that are available to the Owner and other Owners of the Property. The phrase “qualified services” refers to services that, in the reasonable judgment of the Association, offer necessary or desired support services to the Owners, the providing of which by persons who live on the Property can be expected to reduce the number of daily automobile trips to and from the Property because the services would otherwise be provided by persons who live off the Property. Examples of potential “qualified services” include, without limitation, gardening and landscaping, house cleaning, cooking and babysitting services. A person living in an ADU who is designated generically as a “caretaker” but who receives only minimal compensation or 13.26 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 18 for Stage Road Planned Unit Development/Subdivision compensation merely in the form of discounted rent and who does not actively provide significant services that are available to other Owners shall not be considered a provider of “qualified services” under this Section 7.3.2. The Association shall have the power and authority to specifically define “qualified services” from time to time and may establish from time to time minimum hourly wage rates that must be paid to providers of qualified services for the Shared Services Discount to apply. In addition, the Association shall have the power and authority to adopt Rules implementing the provisions of this Section 7.3.2, which Rules may provide specific requirements for how Owners demonstrate eligibility for the Shared Services Discount. 7.3.3 Adjustment. If during any Fiscal Year it becomes apparent that the estimated Common Expenses and/or revenues of the Association as set forth in the budget upon which the Common Assessments were based were in error for any reason, including nonpayment by any Owner of its Common Assessments, to the extent that the Common Assessments the Board determines will be received for the balance of such Fiscal Year will be inadequate, or more than required, to meet the Association’s obligations intended to be covered by such Common Assessments, the Board may amend the budget and increase or decrease the Common Assessments for the balance of such Fiscal Year upon not less than 30 days’ prior notice to all Owners. 7.3.4 Reconciliation. If the Board, in its discretion, determines that one or more Owners may have been materially under-billed or over-billed for their Common Allocation of the Common Expenses for any Fiscal Year, the Board shall cause the actual Common Expenses incurred by the Association during such Fiscal Year to be reconciled against the Common Assessments received by the Association from the Owners. To the extent that any Owner has paid more than its Common Allocation of such actual Common Expenses (even though the Owner timely paid all billed amounts), the Board may in its discretion either refund the overpayment to the Owner or credit such overpayment against such Owner’s obligation for Common Assessments for the next ensuing Fiscal Year. To the extent any Owner has underpaid its Common Allocation of such actual Common Expenses, the Board may in its discretion either demand in writing that such Owner pay the amount of such underpayment of Common Assessments to the Association within a specified period of time, as determined by the Board, after the Board notifies such Owner of such underpayment (which period of time may not be less than 30 days), or the Board may include such underpayment in such Owner’s obligations for Common Assessments for the next ensuing Fiscal Year. Nothing in this Section 7.3.4 shall be construed as limiting any of the enforcement rights of the Association with respect to delinquent Assessments under Article 8. 7.3.5 Failure to Assess. Failure of the Association to fix Common Assessments amounts or rates for a given Fiscal Year or to deliver or mail to each Owner a Common Assessments notice shall not be deemed a waiver, modification or release of any Owner’s obligation to pay its allocated share of Common Assessments. In such event, each Owner shall continue to pay Common Assessments on the same basis as during the last year for which Common Assessments amounts were set by the Association, if any, until new Common Assessments are levied, at which time the Association may retroactively assess any shortfalls in collections. 7.4 Special Assessments. In addition to other authorized Assessments, the Association may levy Special Assessments from time to time to cover unbudgeted expenses 13.27Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 19 for Stage Road Planned Unit Development/Subdivision or expenses in excess of those budgeted, including, without limitation, the costs of any construction, restoration, unexpected repair or replacement of any Common Elements, Improvements thereon or any other capital Improvements that benefit all of the Owners and are not covered by the Reserve Fund, if any. Except as otherwise provided in Section 7.6, each Lot is subject to Special Assessments for the Lot’s Common Allocation of the total Special Assessments levied by the Association. Except as otherwise specifically provided in this Declaration, no Special Assessment shall require the approval of the Owners. Special Assessments shall be payable in such manner and at such times as determined by the Board, and may be payable in installments extending beyond the Fiscal Year in which the Special Assessment is approved. The Board shall have the right to require that Special Assessments be paid in advance of the provision of the subject services or materials. Without limiting the generality of the foregoing, the Board may levy Special Assessments to cover certain costs of restoration or replacement of Common Elements in the event of damage, destruction or Taking of Common Elements, as set forth in Sections 11.2.1.5 and 11.3. 7.5 Specific Assessments. The Association shall have the power to levy Specific Assessments against one or more particular Lot(s) as follows: 7.5.1 to cover the costs, including overhead and administrative costs, of providing benefits, items or services to such Lot or occupants thereof upon request of the Owner of such Lot pursuant to a menu of special services which the Board may from time to time authorize to be offered to Owners and occupants (which may include, without limitation, landscape maintenance, weed control, cleaning services, snow removal, and pest control), which Specific Assessments may be levied in advance of the provision of the requested benefit, item or service as a deposit against charges to be incurred by the Owner; 7.5.2 to cover costs incurred in bringing the Lot into compliance with the terms of this Declaration, the Bylaws or the Rules, or costs incurred as a consequence of the conduct of the Owner or such Owner’s Permittees; provided, however, the Board shall give the Owner of such Lot notice and an opportunity to be heard as provided in the Bylaws before levying any Specific Assessment under this Section 7.5.2; 7.5.3 to cover necessary costs or expenses incurred by the Association that benefit one or more Lots but fewer than all Lots, such as, for example, the costs of repairing a utility line that serves only one or two Lots but no others, and, unless the Owners of all the benefited Lots otherwise agree, each benefited Lot shall be assessed a percentage of the Special Assessments so incurred that is derived from a fraction, the numerator of which is one and the denominator of which is the number of Lots so benefited, and the Board shall have the authority to assess Specific Assessments for such costs without the approval of the benefited Owners; 7.5.4 to cover any costs or expenses that are recoverable as Specific Assessments pursuant to other provisions of this Declaration. 7.5.5 to cover the costs of maintenance, crop production, weed control, fence construction and repair and irrigation within the Fathering Parcel Easement Areas within any Lot when such costs are to be borne by an Owner or the Association pursuant to an assignment of such obligations from the owner of the Fathering Parcel. 13.28 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 20 for Stage Road Planned Unit Development/Subdivision 7.6 Commencement of Assessments. The obligation to pay Common Assessments and Special Assessments shall commence as to each Lot on the day on which the Association first levies Assessments pursuant to this Article 7. The obligation to pay Specific Assessments shall commence as to any Lot when the Association levies the Specific Assessments against the Lot pursuant to this Declaration. 8 Enforcement of Assessments 8.1 Payment of Assessments. Each Owner shall pay, or cause to be paid, all Assessments assessed against such Owner’s Lot, by the Association in accordance with the terms of this Declaration. Each Assessment is a separate, distinct and personal debt and obligation of the Owner, against whose Lot the Assessment is levied. All Assessments are payable in full without offset for any reason whatsoever. The obligation to pay Assessments is entirely independent of any obligation of the Association to the Owner or of Declarant or any other Owner to that Owner. No Owner may exempt itself from liability for any Assessment by non-use of Common Elements, abandonment of its Lot or any other means. Any Assessment or installment, of an Assessment not paid within 30 days after it becomes due is delinquent. If an Assessment or installment of an Assessment is delinquent, the Association may recover all of the following (collectively, the “Delinquency Costs”): (a) interest from the date due at the rate of 12% per annum; (b) a one-time late charge of 10% of the amount owed plus any other monetary penalties imposed by the Association pursuant to this Declaration, the Rules or the Bylaws; and (c) all collection and enforcement costs, including reasonable attorneys’ fees (whether or not suit is actually brought), incurred by the Association, together with any and all other costs incurred and/or accrued after the date of the delinquency notice described in Section 8.2 below. Each Assessment, together with any applicable Delinquency Costs shall be a charge and continuing lien upon the Lot against which the Assessment is levied until paid, as more particularly provided in Section 8.4. Each such Assessment, together with any applicable Delinquency Costs, also shall be the personal obligation of the Person that was the Owner of such Lot at the time the Assessment and the applicable Delinquency Costs arose. Where the Owner consists of multiple Persons, each such Person shall be jointly and severally liable for each and every obligation of the Owner. 8.2 Delinquency Notice. If any Assessment or installment of any Assessment is delinquent, the Association may notify the Owner of the delinquency and state in the notice: (a) the amount and due date of the delinquent Assessment or installment thereof; (b) the Delinquency Costs accrued to date; and (c) the date by which the delinquent Assessment installment thereof and all associated Delinquency Costs must be paid. 8.3 Acceleration. If the Association gives the written notice required by Section 8.2 with respect to a delinquent Assessment that is payable in regular uniform installments (e.g., a Common Assessment) and the Owner responsible for such Assessment does not pay, or cause to be paid, such delinquent Assessment (including all associated Delinquency Costs) in full by the due date specified in the notice, then the Association may declare all unpaid installments of the subject Assessment for the current Fiscal Year of the Association to be immediately due and payable in full without further demand or notice and may enforce the collection of the Assessment (including any associated Delinquency Costs and any installments that were so accelerated) in accordance with Section 8.5. 8.4 Lien for Assessments. The Association has an automatic lien against each Lot, as applicable, to secure payment of all Assessments and associated Delinquency Costs levied by the Association against such Lot. Such lien shall be perfected upon the Recording of this 13.29Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 21 for Stage Road Planned Unit Development/Subdivision Declaration, and no further claim of lien shall be required. Notwithstanding the foregoing and without limitation on the automatic lien against each Lot established hereby, the Association has the right, but not the obligation, to prepare and Record a “Notice of Lien” setting forth (i) the amount of any Assessment or Delinquency Costs or other amount due and owing to the Association; (ii) the date such amount was due and payable and the date from which interest accrues; (iii) all Delinquency Costs accrued 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 subject Owner. The automatic lien of the Association against each Lot established and perfected by this Section 8.4 shall be superior to all other liens and encumbrances, except (a) liens and encumbrances Recorded before this Declaration; and (b) liens for real estate taxes and other governmental assessments or charges against the Lot. Subject to the limitations of the preceding sentence, the sale, transfer or assignment of any Lot shall not affect the lien for any existing delinquent Assessments. 8.5 Enforcement of Assessments. The amount of any delinquent Assessments (including any installments accelerated by the Association pursuant to Section 8.3) and associated Delinquency Costs may be enforced against the Owner liable for them in either or both of the following ways, at the option of the Association (which shall not be exclusive of any other remedies or enforcement rights available to the Association at law or in equity): 8.5.1 Suit. The Association may bring a suit or suits at law to enforce the Owner’s obligation to pay a delinquent Assessment (including any installments accelerated by the Association pursuant to Section 8.3) and associated Delinquency Costs. Each action will be brought in the name of the Association. Upon full satisfaction of the judgment, the Association, by one of its officers, will execute and deliver to the judgment debtor an appropriate satisfaction of the judgment. 8.5.2 Lien Foreclosure. If the Association gives a notice concerning the delinquent Assessment that substantially complies with the provisions of Section 8.2 and the delinquent Assessment is not paid in full by the due date specified in such notice, then the Association may foreclose, in the same manner as the foreclosure of a mortgage under the laws of the State of Colorado, the lien established in Section 8.4 securing the Assessment, any installments accelerated by the Association pursuant to Section 8.3, and any associated Delinquency Costs. The Association may bid for a Lot at any foreclosure sale, pay all or part of the bid amount by crediting the lien amount against the bid, and acquire, hold, lease, mortgage, convey or assign such Lot. While a Lot is owned by the Association following foreclosure: (a) no right to vote shall be exercised on behalf of the Association as the Owner of such Lot; (b) no Assessments shall be levied against such Lot; and (c) each other Lot shall be charged, in addition to its usual Assessments, its pro rata share of the Assessments that would have been charged against the Lot acquired by foreclosure had such Lot not been acquired by the Association. 8.6 Reallocation. If any Assessment remains unpaid for more than six months after it is first due, the Association may treat the unpaid Assessment as a Common Expense to be assessed against all Lots; provided, however, that if the Association subsequently collects all or any part of the unpaid Assessment, through foreclosure of its lien or otherwise, then any Owner who has paid a portion of the unpaid Assessment as a Common Expense is entitled to a credit (in an amount equal to its pro rata share of the amount of the unpaid Assessment subsequently collected by the Association) against any Common Assessments subsequently due from that Owner. 13.30 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 22 for Stage Road Planned Unit Development/Subdivision 8.7 Disputes and Records. Any Owner or an Owner’s Authorized Representative may inspect the books and records of the Association during regular business hours upon reasonable prior notice. If an Owner disputes the amount of any Assessment against its Lot and is unable to resolve the issue through an inspection of the Association’s books and records, the Owner will continue to pay in a timely manner the full amount of the disputed Assessment until, if ever, it is finally determined that the amount is incorrect (in which case the Association will promptly refund any overpayment). If the Owner fails to pay the disputed Assessment while the dispute is pending, the Association may immediately pursue any of its remedies for the failure (including, without limitation, suit against the Owner and/or foreclosure of the Association’s lien against the Owner’s Lot), and the pendency of the dispute is not a bar or defense to any actions by the Association. 8.8 Certificate. Within 21 calendar days after receiving a written request from any Owner, Mortgagee or a designee of either of them, delivered personally or by certified mail, first-class postage prepaid, return receipt requested, to the Association’s registered agent, the Association will furnish to the requesting party, by personal delivery or first-class mail postage prepaid, a certificate executed on behalf of the Association and addressed to the requesting party, stating any then unpaid Assessments due from the requesting Owner or the Owner of the Lot encumbered by the requesting Mortgagee’s Mortgage, or stating that there are no unpaid Assessments due from such Owner, as the case may be. A certificate furnished by the Association pursuant to this Section 8.8 is binding on the Association, the Board and every Owner. Such Owner’s Lot shall not be subject to a lien for any unpaid Assessments against the Lot to the extent that the lien arises before the date of the certificate and the amount of the lien exceeds any unpaid amounts stated in the certificate. The Association may charge the Owner of any Lot for which such a certificate is furnished pursuant to this Section 8.8, and the Owner will pay, a reasonable fee for the preparation of the certificate in an amount determined by the Board from time to time. 9 Maintenance 9.1 Association’s Responsibilities. 9.1.1 Maintenance of Common Elements. The Association shall maintain and keep in good repair the Common Elements, including, without limitation, the Access Road System. The Association’s methods and procedures for maintenance of the Access Road System shall be subject to the prior review and reasonable approval of the owner of the Fathering Parcel. 9.1.2 Maintenance of Other Property. The Association may maintain other property which it does not own, including, without limitation, any property that has been transferred to the City or dedicated to the public (but excluding the Fathering Parcel Easement Areas, unless the rights to use and maintain said areas have been assigned by the owner of the Fathering Parcel to the Association), if the Board determines that such maintenance is necessary or desirable to maintain the appearance or image of the Property as an attractive, clean and well-maintained development project. 9.1.3 Weed Control. The Association shall perform, at least annually and more frequently if necessary, weed control on the Property (excluding the Fathering Parcel Easement Areas, unless such obligation is to be borne by an Owner or the Association pursuant to an assignment of rights from the owner of the Fathering 13.31Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 23 for Stage Road Planned Unit Development/Subdivision Parcel to use and maintain any portion of the Fathering Parcel Easement Areas) under the supervision and advice of a professional biologist. 9.1.4 Mosquito Control. The Association may perform mosquito control on and around the Property. 9.1.5 Operation of Facilities. The Association shall maintain the Improvements, facilities and equipment, if any, within the Common Elements in continuous operation, except for any periods necessary, as determined in the sole discretion of the Board, to perform required maintenance or repairs. 9.1.6 Election to Perform Owners’ Duties. The Association may elect to maintain or repair any Lot or portion thereof or Improvements thereon, the maintenance or repair of which is the responsibility of an Owner pursuant to Section 9.2, if (i) such Owner has failed, for more than 30 days after notice from the Association, to perform its responsibilities under this Declaration with respect to the maintenance or repair of its Lot (provided, however, that no such 30-day notice period will be required in the case of emergencies), and (ii) such failure has a material effect on the appearance of such Lot when viewed from any area outside such Lot or has a material adverse effect on the use of another Lot or any Common Element for its permitted and intended use; provided, however, that if such failure is not susceptible of being cured within such 30-day period, the Association will not be entitled to perform any repairs or maintenance if such Owner commences performance of its obligations within such 30-day period and thereafter diligently completes such performance. Such Owner will pay as a Specific Assessment all costs reasonably incurred by the Association in accordance with this Section 9.1.6. 9.2 Owner’s Responsibility. 9.2.1 Maintenance and Repair of Lot. Each Owner shall maintain its Lot and Improvements on the Lot and perform all required repairs of such Lot and Improvements. 9.2.2 Damages Caused by Owners. Each Owner will pay as a Specific Assessment all costs of repair or replacement of any portion of the Property that is damaged or destroyed by reason of the misconduct or negligence of such Owner or any of its Permittees. 9.3 Maintenance Standard. Unless otherwise specifically provided herein or in other instruments creating and assigning such maintenance responsibility, responsibility for maintenance shall include responsibility for repair and replacement, as necessary. All maintenance shall be performed in a manner consistent with the quality or maintenance prevailing within Stage Road Subdivision and all applicable covenants. Neither the Association nor any Owner shall be liable for any damage or injury occurring on or arising out of the condition of property which it does not own, except pursuant to Section 9.2.2 or to the extent that it has been negligent in the performance of its maintenance responsibilities. 9.4 Party Structures. Each wall, landscaping berm, landscaping planting, fence, driveway or similar structure or improvement, or portion thereof, built as a part of the improvement of the Lots which serves and/or separates any two adjoining Lots shall constitute a party structure. To the extent not inconsistent with the provisions of this 13.32 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 24 for Stage Road Planned Unit Development/Subdivision Section 9.4, the laws of the State of Colorado regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. The cost of reasonable repair and maintenance of a party structure shall be shared equally by the Owners who make use of the party structure. 9.5 Security. The Association may, but shall not be obligated to, maintain or support certain activities on the Property designed to make the Property safer than it otherwise might be. Neither the Association nor Declarant shall in any way be considered an insurer or guarantor of security on the Property, nor shall any of them be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. No representation or warranty is made that any fire protection system, or security system or measures, cannot be compromised or circumvented, nor that any such system or security measure undertaken will in all cases prevent loss or provide the detection or protection for which the system is designed or intended. Each Owner acknowledges, understands and covenants to inform his or her Permittees that the Association, the Board of Directors and committees thereof, and Declarant and any successor Declarant are not insurers and that each Person using the Property assumes all risks of personal injury and loss or damage to property, including Lots and the contents of Lots, resulting from acts of third parties. 10 Use Restrictions 10.1 Use. Outside of the Building Envelope, each Lot may be used by the Owner thereof and such Owner’s Permittees only for landscaping, recreational or open space purposes and agricultural uses within the Fathering Parcel Easement Areas, subject to the rights of the owner of the Fathering Parcel in and to such easement, which rights are exclusive, unless otherwise agreed by the owner of the Fathering Parcel. Only residential single family uses and improvements, an accessory dwelling unit as allowed by the PUD and accessory uses allowed under the PUD shall be permitted on each Lot within its respective Building Envelope. No uses other than those set forth above shall be permitted on any Lot; provided, however, that nothing in the preceding sentences is intended to, or shall, limit the rights of the owner of the Fathering Parcel pursuant to the Fathering Parcel Agricultural Easement. Unless otherwise approved by the ACC pursuant to the Design Guidelines, any portion of a Lot outside of the Building Envelope shall remain in a natural vegetative state, which may include the introduction of indigenous plant and tree species. 10.2 Landscaping. All landscaping shall be subject to approval by the ACC pursuant to the Design Guidelines. All urban-style landscaping within each Lot shall be limited to the area of the Lot that is within 100 feet of building exteriors. 10.3 Unsightly or Unkempt Conditions. Taking into consideration the permitted uses in Section 10.1, all portions of a Lot outside of enclosed structures shall be kept in a clean and tidy condition at all times. Nothing shall be done, maintained, stored or kept outside of enclosed structures on a Lot that, in the determination of the Board, causes an unclean, unhealthy or untidy condition to exist or is obnoxious to the senses (taking into consideration the permitted uses). Any structures, equipment or other items which may be permitted to be erected or placed on the exterior portions of Lots shall be kept in a neat, clean and attractive condition and shall promptly be removed upon request of the Board if, in the judgment of the Board, they have become rusty or dilapidated or have otherwise fallen into disrepair. No Owner or Permittee shall dump grass clippings, leaves or other debris, petroleum products, 13.33Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 25 for Stage Road Planned Unit Development/Subdivision fertilizers or other potentially hazardous or toxic substances in any drainage ditch, stream, pond or lake or elsewhere on the Property. 10.4 Quiet Enjoyment. Taking into consideration the permitted uses in Section 10.1, nothing shall be done or maintained on any part of a Lot that emits foul or obnoxious odors outside the Lot or creates noise or other conditions that tend to disturb the peace, quiet, safety, comfort or serenity of the Owners and Permittees of other Lots or the owner of the Fathering Parcel. In addition, no noxious or offensive activity shall be carried on upon any Lot nor shall anything be done or placed on any Lot that is or may become a nuisance or cause any significant embarrassment, disturbance or annoyance to others, including the owner of the Fathering Parcel. As used herein, the term “noxious or offensive activity” shall not include (a) any reasonable uses of the Property as expressly permitted pursuant to Section 10.1, and (b) any activities that are reasonably necessary to the development of and construction of a Lot so long as such activities do not violate the Design Guidelines, statutes, rules or regulations of any governmental authority having jurisdiction with respect thereto and do not unreasonably interfere with the permitted use of another Lot or with any Owner’s or Permittee’s ingress and egress to or from a Lot. 10.5 Firearms, Fireworks and Explosives. Except as permitted under Section 10.6, the discharge of any firearms, fireworks or explosives on the Property is prohibited by any Owner or Permittee of any Owner. The term “firearms” includes “B-B” guns, pellet guns and other firearms of all types, regardless of size. Notwithstanding anything to the contrary contained herein or in the Bylaws, the Association shall not be obligated to take action to enforce this Section 10.5. 10.6 Hunting. Hunting, killing, trapping or poisoning of wildlife on or from the Property shall be prohibited except to prevent imminent danger to human life, prevent the loss of livestock kept by the owner of the Fathering Parcel, or unless conducted by or at the direction of the Association or the Colorado Division of Wildlife or other law enforcement or public officials having jurisdiction to protect human life or property, reduce overpopulation or eliminate nuisances or as may otherwise be required by law. Firearms may be discharged from the Property in furtherance of the wildlife control measures permitted under this Section 10.6. 10.7 No Harassment of Wildlife. Except as permitted under Section 10.6, no harassment of wildlife is permitted on or from the Property. With the exception of bird feeders, any means of feeding, baiting, salting or otherwise attracting wildlife to individual yards or Common Elements is prohibited. 10.8 No Hazardous Activities. Subject to the permitted uses set forth in Section 10.1, no activities shall be conducted on any Lot and no Improvements shall be constructed on any Lot that are or might be unsafe or hazardous to any natural Person or property. Without limiting the generality of the foregoing, no outdoor fires shall be lighted or permitted on any Lot except in a contained barbecue grill while attended and in use for cooking purposes. 10.9 PUD and Laws. Every Owner and Permittee shall comply with the PUD and all laws, statutes, ordinances and rules of federal, state, local and municipal governments applicable to the Property. Any violation may be considered a violation of this Declaration. However, the Association shall have no obligation to take action to enforce such laws, statutes, ordinances and rules. 13.34 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 26 for Stage Road Planned Unit Development/Subdivision 10.10 Limitation on Fences. No Owner shall erect any fence within the Fathering Parcel Easement Areas, unless the owner of the Fathering Parcel has consented in writing. 10.11 Storage of Recreational Vehicles. Mobile homes, recreational vehicles, travel trailers, tent trailers, trucks (except pickup trucks used in connection with the permitted uses pursuant to Section 10.1), snowmobiles, golf carts, boats, boat trailers, tractors, detached campers, camper shells, snow removal equipment and garden or maintenance equipment shall be kept in an enclosed structure at all times, except when in actual use. 10.12 Use of Recreational Vehicles. No motorcycle, go-cart, snowmobile, all terrain vehicle, golf cart or other motorized recreational vehicle shall be operated within or on the Property for recreational purposes. Motorcycles and similar vehicles licensed by the State of Colorado for use on public streets and highways that are driven on paved roadways or dirt roads designated by the Association for vehicular use shall be permitted. In addition, the use of motorized vehicles (i) to provide, or facilitate the providing of, security, monitoring, maintenance and similar services within the Property or (ii) by the owners or employees of the Fathering Parcel on the Access Road System and within the Fathering Parcel Easement Areas shall be permitted. 10.13 Trash Containers and Refuse. Refuse, garbage and trash shall be kept in a covered container at all times and any such container shall be kept within an enclosed structure except on the days of pick-up by a waste management service. No lumber, grass, shrub or tree clippings or plant waste, compost, metals, bulk materials or scrap or refuse or trash or unused items of any kind shall be kept, stored or allowed to accumulate on any Property except for during short time periods (in no event longer than 14 days) pending removal from the Property. 10.14 Dogs and Other Animals. No dogs may be kept on any Lot, except for service dogs for use by visually impaired persons or persons with other medical needs requiring a service dog for assistance. Notwithstanding the foregoing, ranching dogs owned by the owner or employees of the Fathering Parcel may be used on the Lots in and around the Fathering Parcel Easement Areas. No Owner or Permittee of an Owner may raise, keep or board any horse, pig, cow, mule, donkey, llama, fowl, or any other livestock on any Lot; except, however: (1) within the Fathering Parcel Easement Areas with the written consent of the owner of the Fathering Parcel; and (2) that the owner of the Fathering Parcel may keep livestock within the Fathering Parcel Easement Areas pursuant to the Fathering Parcel Agricultural Easement. 10.15 Lights and Sounds. Subject to the Design Guidelines, which may contain additional requirements, no light shall be emitted from any Lot which is unreasonably bright or causes unreasonable glare or shines directly onto an adjacent Lot. No sound shall be emitted from any Lot which is unreasonably loud or annoying, taking into consideration the permitted uses set forth in Section 10.1. 10.16 No Outdoor Fires. Except in connection with agricultural activities within the Fathering Parcel Easement Areas and except as contained in a barbecue grill or an enclosed outdoor fireplace, no outdoor fires (including, without limitation, any campfires or bonfires) shall be permitted on any Lot. 10.17 Variances and Rezonings. No Owner shall apply for or permit another Person to apply for any variance, subdivision, resubdivision, boundary adjustment, PUD amendment, 13.35Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 27 for Stage Road Planned Unit Development/Subdivision Final Plat amendment or rezoning concerning the Owner’s Lot or any portion thereof without the prior written consent of the Association and the owner of the Fathering Parcel, which consent may be denied or withheld in the absolute discretion of the Association or the owner of the Fathering Parcel. 10.18 Exception for Construction. During the course of actual construction of Improvements, the above use restrictions of this Article 10 shall not apply to the extent reasonably necessary to permit such construction to be undertaken in a reasonable manner, provided that nothing is done or occurs during the period of construction that will result in the violation of any such use restriction upon the completion of such construction or extraction. 10.19 Declarant’s Exemption. Notwithstanding any provision of this Declaration to the contrary, Declarant may maintain and carry on upon any Lot owned by Declarant or any portion of the Common Elements such facilities and activities as, in the reasonable opinion of Declarant, may be required, convenient or incidental to the development, construction or sale of Lots or any portion of the Property, including, without limitation, business offices, construction trailers, signs, and sales offices (subject to any necessary approvals or limitations pursuant to the Master Architectural Restrictions). Such facilities may be of any number, size and location which Declarant determines will adequately accommodate Declarant’s development, sale and marketing of the Lots and the Property. 10.20 Fathering Parcel Owner Exemption. The restrictions contained in Sections 10.1 through 10.17 shall not apply to the owner of the Fathering Parcel with respect to its use of the Fathering Parcel Easement Areas pursuant to the Fathering Parcel Agricultural Easement or the use of any area of the Property pursuant to the easement established by Section 5.6.3. 10.21 Fathering Parcel Enforcement. Without limiting the enforcement rights of the Association or any Owner, the restrictions on the Owners and the Lots contained in Sections 10.1 through 10.17 shall run to the benefit of the Fathering Parcel and may be enforced at law or in equity by the owner of the Fathering Parcel against any Owner or Permittee of an Owner. No such Section may be amended without the prior written consent of the owner of the Fathering Parcel. 11 Insurance, Damage And Takings 11.1 Association’s Insurance. 11.1.1 Required Coverage. The Association, acting through the Board or its duly authorized agent, shall obtain and continue in effect the following types of insurance if reasonably available or, if not reasonably available, the most nearly equivalent coverages as are reasonably available: 11.1.1.1 Blanket “all risk” property insurance covering any insurable Improvements owned by the Association. The Association shall have the authority to insure any property for which it has maintenance or repair responsibility, regardless of ownership. All property insurance policies obtained by the Association shall have policy limits sufficient to cover the full replacement cost of the insured Improvements. 11.1.1.2 Commercial general liability insurance insuring the Association and the Members against damage or injury caused by the 13.36 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 28 for Stage Road Planned Unit Development/Subdivision negligence of the Association or any of its Members, employees, agents or contractors while acting on its behalf. If generally available at reasonable cost, the commercial general liability coverage (including primary and any umbrella coverage) shall have a limit of at least $2,000,000.00 per occurrence with respect to bodily injury, personal injury and property damage. 11.1.1.3 Workers’ compensation insurance and employer’s liability insurance to the extent required by law. 11.1.1.4 Directors’ and officers’ liability coverage in an amount determined by the Board. 11.1.1.5 Fidelity insurance covering all Persons responsible for handling Association funds in an amount not less than $200,000.00 plus all reserves on hand, and containing a waiver of all defenses based upon the exclusion of Persons serving without compensation; provided, however, that if fidelity insurance in such amounts is not available on reasonable terms, the Association may maintain a lesser amount of coverage to the extent reasonably available. 11.1.1.6 Such additional insurance as the Board determines advisable. 11.1.2 Policy Requirements. All Association policies shall provide for a certificate of insurance to be furnished to the Association and, upon request, to any Owner or Mortgagee. Each policy may provide for a deductible in a reasonable amount determined by the Board. Premiums for all insurance maintained by the Association pursuant to this Section 11.1 shall be Common Expenses and shall be included in the Common Assessment. In the event of an insured loss, the deductible shall be treated as a Common Expense in the same manner as the premiums for the applicable insurance coverage. However, if the Board reasonably determines, after providing notice and an opportunity to be heard in accordance with the Bylaws, that the loss is the result of the willful misconduct of one or more Owners or their Permittees, then the Association may specifically assess the full amount of such deductible against such Owners and their Lots as Specific Assessments pursuant to Section 7.5. All insurance coverage obtained by the Association shall: 11.1.2.1 be written with companies authorized to do business in the State of Colorado; 11.1.2.2 be written in the name of the Association as trustee for the Association and the Members; 11.1.2.3 be written as a primary policy, not contributing with and not supplemental to the coverage that any Owners, occupants or their Mortgagees may carry individually; 11.1.2.4 provide that each Owner is an insured person under the policy with respect to liability arising out of such Owner’s membership in the Association; 13.37Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 29 for Stage Road Planned Unit Development/Subdivision 11.1.2.5 preclude cancellation, invalidation or condition to recovery under the policy on account of any act or omission of any Owner, unless such Owner is acting within the scope of its authority on behalf of the Association; and 11.1.2.6 require at least 30 days’ prior written notice to the Association and to each Owner to whom a certificate of insurance has been issued of any cancellation, substantial modification or non-renewal. 11.2 Damage and Destruction. 11.2.1 Property Insured by Association. 11.2.1.1 Immediately after damage or destruction to all or any part of the Property covered by insurance written in the name of the Association, the Board or its duly authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of the cost of repair or reconstruction. Repair or reconstruction, as used in this paragraph, means the repair or restoration of the damaged property to substantially the condition in which it existed prior to the damage, allowing for changes necessitated by changes in applicable building codes. 11.2.1.2 Any damage to or destruction of the Common Elements shall be repaired or reconstructed unless: (A) a decision not to repair or reconstruct is made by Members representing at least 67% of the total vote in the Association; or (B) repair or reconstruction would be illegal under any state or local statute governing health and safety. 11.2.1.3 If the damage or destruction to the Common Elements will not be repaired or reconstructed pursuant to Section 11.2.1.2 and no alternative Improvements are authorized, the affected property shall be cleared of all debris and ruins and thereafter shall be maintained by the Association in a neat and attractive landscaped condition. 11.2.1.4 Any insurance proceeds attributable to damage to Common Elements will be applied to the costs of repair or reconstruction (if any) and then, if any insurance proceeds remain, distributed among all Lots in proportion to their Common Allocations. 11.2.1.5 If insurance proceeds are insufficient to cover the costs of repair or reconstruction, the Association may, without a vote of the Members, levy Special Assessments to cover the shortfall. 11.2.1.6 Each Lot will continue to be subject to Assessments following any damage to any portion of the Common Elements, without abatement as a result of such damage. 11.2.2 Property of Owners. Each Owner covenants and agrees that in the event of damage or destruction to structures on or comprising such Owner’s Lot, the Owner shall proceed promptly to repair or reconstruct such structures in a manner consistent with the original construction or such other plans and specifications as are approved 13.38 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 30 for Stage Road Planned Unit Development/Subdivision by the ACC and the City and pursuant to all other applicable land use regulations. The Owner shall pay any costs of such repair and reconstruction or clearing and maintenance which are not covered by insurance proceeds. 11.3 Takings. 11.3.1 Taking of Lots. In the event of a Taking of all or any part of any Lot, the Owner thereof will be solely responsible for negotiating with the condemning authority concerning the award for such Taking and will be entitled to receive such award after the liens of all Mortgagees on the affected Lot or portion thereof have been satisfied or otherwise discharged. If only part of a Lot is acquired by a Taking, the Owner of such Lot will be responsible for the restoration of its Lot as necessary to return the Lot to a safe and lawful condition that does not adversely affect the use or enjoyment of the other Lots or Common Elements or detract from the general character or appearance of the Property. 11.3.2 Taking of Common Elements. 11.3.2.1 Each Owner shall be entitled to written notice of any Taking of any Common Elements or portion thereof. The Association will be solely responsible for negotiating, and is hereby authorized to negotiate with the condemning authority on behalf of all Owners concerning, the amount of the award for any Taking by which a condemning authority acquires any Common Elements or portion thereof without also acquiring 100% of the Lots, and the acceptance of such award by the Association will be binding on all Owners. Any award made for such Taking shall be payable to the Association as trustee for all Owners and shall be disbursed as set forth in Sections 11.3.2.2 and 11.3.2.3. Notwithstanding the foregoing, no Common Elements shall be conveyed in lieu of and under threat of condemnation without the approval of the Board, acting on the written direction of Members representing at least 67% of the total vote in the Association. 11.3.2.2 If the Taking involves a portion of the Common Elements on which Improvements have been constructed, the Association shall restore or replace such Improvements on the remaining land included in the Common Elements to the extent available, unless within 60 days after such Taking Members representing at least 67% of the total vote in the Association shall otherwise agree. Any such construction shall be in accordance with plans approved by the Association. If the award made for such Taking is insufficient to cover the costs of restoration or replacement, the Association may, without a vote of the Members, levy Special Assessments to cover the shortfall. 11.3.2.3 If the Taking does not involve any Improvements on the Common Elements, or if a decision is made not to repair or restore, or if net funds remain after any such restoration or replacement is complete, then such award or net funds shall become an asset of the Association. 13.39Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 31 for Stage Road Planned Unit Development/Subdivision 12 Mortgagee Provisions 12.1 No Priority. No provision of this Declaration or the Bylaws gives or shall be construed as giving any Owner or other party priority over any rights of the First Mortgagee of any Lot in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a Taking of the Common Elements. 12.2 Notice to Mortgagees. Upon receipt by the Association of a written request for notices as described in Section 2.26, any Eligible Holder who provides such request will be entitled to timely written notice of: 12.2.1 Any condemnation loss or casualty loss that affects a material portion of the Property or that affects any Lot on which there is a First Mortgage held, insured or guaranteed by such Eligible Holder; 12.2.2 Any delinquency in the payment of Assessments or charges owed by a Lot subject to the Mortgage of such Eligible Holder, where such delinquency has continued for a period of 60 days after notice of such delinquency has been delivered to the Owner, or any other violation of this Declaration, the Rules or the Bylaws relating to such Lot or the Owner or occupant thereof which is not cured within 60 days of notice of such violation; and 12.2.3 Any lapse, cancellation or material modification of any insurance policy maintained by the Association. 13 Conveyancing and Encumbrancing 13.1 Lots. A description of any Lot in accordance with the requirements of Colorado law for the conveyance of real property will, if included in an otherwise proper instrument, be sufficient for all purposes to sell, convey, transfer, encumber and otherwise affect not only such Lot but also all easements, rights and other benefits appurtenant thereto as provided in this Declaration. A Person who becomes an Owner will promptly notify the Association of his or her ownership of a Lot. An Owner may encumber his or her Lot as he or she sees fit, subject to the provisions of this Declaration. 13.2 Common Elements. The Common Elements or portions thereof may be conveyed or subjected to a lien or security interest, with the written approval of Owners to whom are allocated at least 67% of the votes in the Association. Such conveyance or encumbrance will not affect the priority or validity of pre-existing encumbrances. Any net proceeds from the sale of any portion of the Common Elements will be an asset of the Association. 14 Amendment 14.1 Required Votes. 14.1.1 Declarant, without the vote or consent of the Board or the Owners, may amend this Declaration to correct clerical, typographical or technical errors. 14.1.2 Any amendment to this Declaration that changes the uses to which any Lot is restricted requires the vote or written agreement of the Owners of Lots to which at 13.40 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 32 for Stage Road Planned Unit Development/Subdivision least 67% of the votes in the Association are allocated and the written consent of the owner of the Fathering Parcel. 14.1.3 Any amendment to this Declaration that changes a specific clause or provision prescribing a certain percentage of affirmative votes for action to be taken under that clause or provision shall require the affirmative vote of those Owners of Lots to which at least that percentage (as prescribed in that clause or provision) of the votes in the Association are allocated. 14.1.4 Any amendment to this Declaration that changes a specific clause or provision that either expressly benefits a particular Persons or that requires the consent of any Person for action to be taken under that clause or provision (e.g., the owner of the Fathering Parcel) shall require the written consent of such Person. 14.1.5 Except as provided above in this Section 14.1 and in any other provision of this Declaration, this Declaration may be amended by the affirmative vote or written consent of the Owners of Lots to which more than 67% of the votes in the Association are allocated. 14.2 Amending Documents. Except for any amendment that by the terms of this Declaration may be and is duly executed, acknowledged and Recorded by Declarant or by or on behalf of the Board, an amendment to this Declaration is effective only when all of the following events occur: 14.2.1 Approved Writing. The amendment is reduced to a writing that is approved (by affirmative vote or written consent) by the Owners of Lots to which at least the applicable required percentage of votes in the Association are allocated, and, as applicable, the Declarant or the owner of the Fathering Parcel. 14.2.2 Certificate by Association. A written certificate, executed and acknowledged by the president or any other authorized officer of the Association, is attached to the written amendment which states that the amendment was approved by the applicable required percentage of Owners pursuant to Section 14.1. 14.2.3 Recording. The approved written amendment described in Section 14.2.1 and the certificate described in Section 14.2.2 are Recorded. 15 General Provisions 15.1 Permittees Bound. All provisions of this Declaration, the Bylaws and the Rules shall also apply to all Permittees of any Owner. Each Owner shall cause all of its Permittees to comply with the this Declaration, the Bylaws and the Rules, and each Owner shall be responsible for all violations and losses to the Common Elements caused by such Permittees, notwithstanding the fact that such Permittees of a Lot are fully liable and may be sanctioned for any violation. 15.2 Ranching Disclosure, Acknowledgement and Waiver. Each Owner is hereby advised of the following matters affecting the Property and the use and enjoyment thereof, and, by accepting title to a Lot, each Owner acknowledges and agrees to the following: The Fathering Parcel and the Fathering Parcel Agricultural Easement will be used for various ranching and farming activities, including, without limitation, the grazing, raising, herding and 13.41Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 33 for Stage Road Planned Unit Development/Subdivision breeding of livestock and the cultivation and harvesting of hay, straw and crops (the “Ranching Activities”). The Ranching Activities will create an unpredictable amount of audible, visible and odorous impacts and disturbances that may adversely affect the quiet use and enjoyment of the Lots. By taking title to a Lot, each Owner acknowledges that the Ranching Activities and the impacts and disturbances generated by the Ranching Activities may occur in and around the Owner’s Lot and the Property. In addition, by taking title to a Lot, each Owner agrees to forever waive and release any claims the Owner or its heirs, successors or assigns may have against the owner of the Fathering Parcel that in any way arise out of the impacts and disturbances generated by the Ranching Activities; provided, however, that such waiver shall not apply to any personal injury or damage to property caused by the Ranching Activities and that results from the recklessness or intentional acts of the owner of the Father Parcel or such owner’s agents or employees. 15.3 Duration and Termination. 15.3.1 Perpetual Duration. Unless terminated as provided in Section 15.3.2, this Declaration shall have perpetual duration. If Colorado law hereafter limits the period during which covenants may run with the land, then to the extent consistent with such law, this Declaration shall automatically be extended at the expiration of such period for successive periods of twenty years each, unless terminated as provided herein. 15.3.2 Termination. Unless otherwise provided by Colorado law, in which case such law shall control, this Declaration may not be terminated prior to the 50th anniversary of the date this Declaration is Recorded without the written consent of Owners representing at least 80% of the votes in the Association and the owner of the Fathering Parcel. Thereafter, it may be terminated only with the written consent of Owners representing at least 67% of the votes in the Association and the owner of the Fathering Parcel. Any termination instrument shall be Recorded. Nothing in this Section 15.3.2 shall be construed to permit termination of any easement created in this Declaration without the consent of the beneficiary of such easement. 15.4 Compliance; Right of Action. Every Owner and Permittee shall comply with this Declaration, the Bylaws and the Rules. In recognition of the fact that a violation of any of the easements, restrictions, requirements, conditions and covenants set forth in this Declaration will cause irreparable damage to the Property that is subject to this Declaration, it is hereby declared, and by acquiring an interest in any Lot all Owners and Mortgagees will be deemed to have agreed, that, except to the extent expressly provided to the contrary in this Declaration, any violation or attempted violation of any provision of this Declaration will give Declarant, the Association and any aggrieved Owner the right to prosecute a proceeding at law or in equity against the Person who is violating or attempting to violate such provision and the right to recover sums due or damages or to obtain any other remedy available at law or in equity, including, without limitation, injunctive relief. 15.5 Attorney Fees. For each claim, including without limitation counter-claims, cross- claims, and third-party claims, in any legal proceeding to enforce the provisions of this Declaration, the Bylaws, the Articles or the Rules, the party prevailing on such claim shall be entitled to an award of its reasonable collection costs and attorney fees and costs incurred in asserting or defending the claim. 15.6 Indemnity. Each Owner will be liable to and will protect, defend, indemnify and hold the Association harmless from and against any and all damages, claims, demands, liens (including, without limitation, mechanics’ and materialmen’s liens and claims), losses, costs 13.42 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions 34 for Stage Road Planned Unit Development/Subdivision and expenses (including, without limitation, reasonable attorneys’ fees, court costs and other expenses of litigation) and liabilities of any kind or nature whatsoever suffered or incurred by, or threatened or asserted against, the Association as a result of or in connection with (a) the willful misconduct, negligence or violation of this Declaration, the Bylaws or the Rules by the indemnifying Owner or his or her Permittees; or (b) any repair, restoration, replacement, alteration or other construction, demolition, installation or removal work on or about the Property contracted for, or performed by, the indemnifying Owner or his or her Permittees. The indemnifying Owner will pay for all such claims suffered or incurred by the Association for which such Owner is responsible hereunder promptly upon receipt of a demand from the Association therefor. The amount of such claims will constitute Specific Assessments against the indemnifying Owner’s Lot. Nothing herein will be deemed to relieve any Permittee from liability for its own acts or omissions. Nothing contained in this Section 15.6 will be construed to provide for any indemnification which would violate applicable laws, void any or all of the provisions of this Section 15.6, or negate, abridge, eliminate or otherwise reduce any other indemnification or right which the Association or the Owners have by law. 15.7 Severability. In the event any provision of this Declaration is deemed illegal or invalid by judgment or court order, a legally valid provision similar to the invalidated provision shall be substituted therefor. Invalidation of any provision of this Declaration, in whole or in part, or of any application of a provision of this Declaration, by judgment or court order shall in no way affect other provisions or applications of this Declaration. 15.8 Governing Law. This Declaration shall be governed by and construed under the laws of the State of Colorado. 15.9 Captions. The captions and section headings in this Declaration are for convenience only and shall not be considered in construing any provisions of this Declaration. 15.10 Notices. Except for notices concerning meetings of the Association or the Board, which will be given in the manner provided in the Bylaws, any notices required or permitted hereunder or under the Bylaws to be given to any Owner, the Association, the Board or any Eligible Holder will be sent by certified mail, first-class postage prepaid, return receipt requested, to the intended recipient at, in the case of notices to an Owner, the mailing address of such Owner in the City or any other address designated by such Owner in writing to the Association; in the case of notices to the Association or the Board, the address of the Association’s registered agent; or in the case of notices to an Eligible Holder, the address thereof most recently given to the Association by notice from such Eligible Holder. All notices will be deemed given and received three business days after such mailing. Any Owner or Eligible Holder may change its address for purposes of notice by notice to the Association in accordance with this Section 15.10. The Association or the Board may change its address for purposes of notice by notice to all Owners in accordance with this Section 15.10. Any such change of address will be effective five days after giving of the required notice. [remainder of page intentionally blank] 13.43Stage Road Homeowners Association Declaration of Covenants, Easements, Conditions and Restrictions 35 for Stage Road Planned Unit Development/Subdivision IN WITNESS WHEREOF, Bar/X Ranch LLC has executed this Declaration. BAR/X RANCH LLC, a Colorado limited liability company By: Name: Title: STATE OF COLORADO ) ) 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 13.44 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Declaration of Covenants, Easements, Conditions and Restrictions A-1 for Stage Road Planned Unit Development/Subdivision EXHIBIT A Description of the Property 13.45Stage Road Homeowners 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. 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: ____________________ ________________________________________ ________________________________________ ________________________________________ ____________________ ________________________________________ ________________________________________ ________________________________________ 13.46 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Articles of Incorporation of Stage Road Homeowners Association 2 ____________________ ________________________________________ ________________________________________ ________________________________________ 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. 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 13.47Stage Road Homeowners Association Articles of Incorporation of Stage Road Homeowners Association 3 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 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. 13.48 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission This page intentionally left blank 13.49Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 13.50 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..................................................................................4 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 13.51Stage Road Homeowners Association Table of Contents (continued) Page ii 5 Architectural Control Committee............................................................................................7 5.1 General Powers and Duties of Board.......................................................................7 5.2 Special Powers and Duties of Board........................................................................7 5.3 Qualifications of Directors.........................................................................................7 5.4 General Standards of Conduct for Directors and Officers........................................7 5.5 Term of Directors......................................................................................................7 5.6 Appointment and Election of Directors.....................................................................7 5.7 Removal of Directors................................................................................................7 5.8 Resignation of Directors...........................................................................................8 5.9 Vacancies in Directors..............................................................................................8 5.10 Manager or Managing Agent....................................................................................8 5.11 Conflicting Interest Transactions..............................................................................8 5.12 Limitations of Liability and Indemnification of Directors ...........................................9 6 Meetings of Directors.............................................................................................................9 6.1 Place of Directors’ Meetings.....................................................................................9 6.2 Annual Meeting of Directors.....................................................................................9 6.3 Special Meetings of Directors...................................................................................9 6.4 Notice of Directors’ Meetings .................................................................................10 6.5 Proxies....................................................................................................................10 6.6 Quorum of Directors...............................................................................................10 6.7 Adjournment of Director’s Meetings .......................................................................10 6.8 Vote Required at Directors’ Meeting ......................................................................10 6.9 Officers at Meetings................................................................................................10 6.10 Waiver of Notice.....................................................................................................10 6.11 Action of Directors Without a Meeting....................................................................11 6.12 Meeting Attendance; Executive Sessions..............................................................11 7 Officers ................................................................................................................................11 7.1 Officers ...................................................................................................................11 7.2 Appointment and Term of Office of Officers...........................................................11 7.3 Removal of Officers................................................................................................12 7.4 Resignation of Officers...........................................................................................12 7.5 Vacancies in Officers..............................................................................................12 7.6 President.................................................................................................................12 13.52 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Table of Contents (continued) Page iii 7.7 Vice-President ........................................................................................................12 7.8 Secretary ................................................................................................................12 7.9 Treasurer................................................................................................................12 8 Miscellaneous......................................................................................................................13 8.1 Amendment of Bylaws............................................................................................13 8.2 Biennial Corporate Reports....................................................................................13 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 13.53Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 1 Bylaws of Stage Road Homeowners Association 1 General 1.1 Purpose of Bylaws. These Bylaws of Stage Road Homeowners Association (these “Bylaws”) are adopted for the regulation and management of the affairs of the Stage Road Homeowners 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 Covenants, Easements, Conditions and 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 Board, 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 Board 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. 13.54 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Homeowners Association 2 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”): (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 vote 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 13.55Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 3 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. 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 Board 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 Board. 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 vote of the Members), the Board shall act as arbitrators and the decision of a disinterested majority of the Board 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 Board, 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 Board and specified in the notice of the meeting. 4.2 Annual Meetings of Members. Annual meetings of the Members shall be held on the date fixed in accordance with a resolution of the Board at such time of day as is fixed by the Board 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. Special meetings of the Members may be called by the Board or by the Members holding not less than 20% of the total votes in the 13.56 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Homeowners Association 4 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 Board 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, by facsimile, by overnight courier 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 Board. 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 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 13.57Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 5 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 Directors 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 Director) 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 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 13.58 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Homeowners Association 6 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 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. 13.59Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 7 5 Board of Directors 5.1 General Powers and Duties of Board. The Board 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 Board 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. The Board 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 Board. Without limiting the general powers and duties set forth in Section 5.1 of these Bylaws, the Board 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 Directors. There shall be three Directors. Each Director shall be a natural person who is at least 18 years of age. A Director may be reelected, and there shall be no limit on the number of terms a Director may serve on the Board. A Director need not be a Member of the Association or the Authorized Representative of a Member. 5.4 General Standards of Conduct for Directors and Officers. To the extent not otherwise inconsistent with Colorado law, any Director, in connection with the authority and powers granted to the Board 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 Director believes is in the best interests of the Association. In discharging his or her duties, the Director 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 Director believes to be reliable and competent in the matters presented; or (ii) legal counsel, public accountants or other persons as to matters which the Director believes to be within such person’s professional or expert competence, so long as, in any such case, the Director 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, the Director shall not be liable as such to the Association for any act or omission if, in connection with such act or omission, the Director performed the duties of his or her position in compliance with this Section 5.4. A Director 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. 5.5 Term of Directors. The term of each Director shall be two years. 5.6 Appointment and Election of Directors. During the Declarant Control Period, Declarant shall appoint all of the Directors. After the termination of the Declarant Control Period, the Members of the Association shall elect all of the Directors. 5.7 Removal of Directors. Any Director 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 13.60 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Homeowners Association 8 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 Director. 5.8 Resignation of Directors. Any Director may resign at any time by giving written notice to the President, to the Secretary or to the Board stating the effective date of such resignation. Acceptance of such resignation shall not be necessary to make the resignation effective. 5.9 Vacancies in Directors. Any vacancy of a Director seat previously held by a Declarant appointee shall be filled by a further appointment made by Declarant. Any vacancy occurring in a Director seat held by a Director elected by the Members shall be filled by the affirmative vote of a majority of the remaining Directors, though less than a quorum of the Board. A Director 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 Board, by resolution adopted by a majority of the Directors 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 Board 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 Director or officer. 5.11.2 No contract, transaction, or other financial relationship between the Association and the Director, or between the Association and a party related to the Director, or between the Association and an entity in which the Director 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 the Director or a party related to the Director or an entity in which the Director has a financial interest or solely because the Director is present at or participates in the meeting of the Board that authorizes, approves, or ratifies the Conflicting Interest Transaction or solely because the Director's vote is counted for such purpose if: (i) the material facts as to the Director's relationship or interest and as to the Conflicting Interest Transaction are disclosed or are known to the Board, and the Board in good faith authorizes, approves, or ratifies the Conflicting Interest Transaction by the affirmative vote of a majority of the disinterested Directors, even though the disinterested Directors are less than a quorum; or (ii) the material facts as to the Director's relationship or interest as to the Conflicting Interest Transaction are disclosed or are known to the Directors entitled to vote thereon, and the Conflicting Interest Transaction is specifically authorized, approved, or ratified in good faith by a vote of the Directors entitled to vote thereon; or (iii) the Conflicting Interest Transaction is fair as to the Association. Common or interested Directors may be counted in determining the presence of a quorum at a meeting of the Board which authorizes, approves, or ratifies the Conflicting Interest Transaction. 13.61Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 9 5.12 Limitations of Liability and Indemnification of Directors. 5.12.1 No Director shall be liable for actions taken or omissions made in the performance of such Director’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 Director shall have any personal liability to the Association or its Members for monetary damages for breach of fiduciary duty as the Director; 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 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 Director, 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 Director directly or indirectly derived an improper personal benefit. 5.12.3 No Director 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 was personally involved in the situation giving rise to the injury or unless such Director 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 Director 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 Director of any right he or she may have for contribution from any other Director 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 the Director 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 the Director against liability asserted or incurred by the person in that capacity or arising from the person’s status as the Director. 6 Meetings of Directors 6.1 Place of Directors’ Meetings. Meetings of the Board may be held any place designated by the Board. 6.2 Annual Meeting of Directors. Annual meetings of the Board shall not be required. 6.3 Special Meetings of Directors. Special meetings of the Board may be called by the President or a majority of the Directors. 13.62 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Homeowners Association 10 6.4 Notice of Directors’ Meetings. When notice is required for any meeting of the Board, 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 Director. If mailed, the notice will be deemed delivered five business days after it is deposited in the mail addressed to the Director 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 Director 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 Director or to any person answering the telephone who sounds competent and mature at the Director’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 Director or some person who appears competent and mature at the Director’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 Board need be specified in the notice or waiver of notice of such meeting. 6.5 Proxies. For purposes of determining a quorum of Directors with respect to a particular proposal, and for purposes of casting a vote for or against a particular proposal, a Director may be deemed to be present at a meeting and to vote if the Director has granted a signed written proxy to another Director who is present at the meeting, authorizing the other Director 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 Directors. A majority of the number of Directors fixed in these Bylaws shall constitute a quorum for the transaction of business by the Board. 6.7 Adjournment of Director’s Meetings. The Directors present at any meeting of the Board 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 Directors. 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 Directors’ Meeting. At any meeting of the Board, if a quorum is present either in person or by proxy, the affirmative vote of a majority of the Directors 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 Director) shall act as chairman and the Board shall designate the Director or other person to act as secretary at all meetings of Directors. 6.10 Waiver of Notice. A waiver of notice of any meeting of the Board, signed by a Director, whether before or after the meeting, shall be equivalent to the giving of notice of the meeting to such Director. Attendance of the Director at a meeting in person shall constitute waiver of notice of such meeting, except when the Director attends for the express purpose of objecting to the transaction of business because the meeting is not lawfully called or conveyed. 13.63Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 11 6.11 Action of Directors Without a Meeting. Any action required to be taken or which may be taken at a meeting of the Board may be taken without a meeting if all of the Directors in writing: (i) vote for such action by the unanimous affirmative vote of the Directors 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 Director 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 Director describing the action and stating that the Director’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 Board may permit any Director 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. A Director participating in a meeting by this means is deemed to be present in person at the meeting. 6.12.2 The Board or any committee thereof may hold an executive or closed door session and may restrict attendance to Directors and such other persons requested by the Board 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 Board 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 Board or any committee thereof shall be adopted during an 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. The officers of the Association shall consist of a President, one or more Vice-Presidents, a Treasurer, a Secretary and such other officers, assistant officers, employees and agents as the Board 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 Board and shall hold office subject to the pleasure of the Board until the officer’s successor is appointed, 13.64 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Homeowners Association 12 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 Board, with or without cause, whenever in the Board’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 Board 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 Board. 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 Board, 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 Board and of the Members. The President may prepare, execute, certify, and record duly made amendments to the Declaration on behalf of the Association. 7.7 Vice-President. Any Vice-President may act in place of the President in case of his or her death, absence or inability to act, and shall perform such other duties and have such authority as is from time to time delegated by the Board or by the President. There may be more than one Vice-President. 7.8 Secretary. The Secretary shall be the custodian of the records and the seal (if any) of the Association and shall affix the seal (if any) to all documents requiring the same; shall prepare, execute, certify, and record amendments to the Declaration on behalf of the Association; shall see that all notices are duly given in accordance with the provisions of these Bylaws and as required by law and that the books, reports and other documents and records of the Association are properly kept and filed; shall take or cause to be taken and shall keep minutes of the meetings of the Members, of the Board and of committees of the Board; shall keep at the principal office of the Association a record of the names and addresses of the Members and the Authorized Representative, if any, of each Member; and, in general, shall perform all duties incident to the office of Secretary and such other duties as may, from time to time, be assigned to him or her by the Board or by the President. The Board may appoint one or more Assistant Secretaries who may act in place of the Secretary in case of his or her death, absence or inability to act. 7.9 Treasurer. The Treasurer shall have charge and custody of, and be responsible for, all funds and securities of the Association in such depositories as shall be designated by the Board; shall keep correct and complete financial records and books of account and records of financial transactions and condition of the Association and shall submit such reports thereof as the Board may, from time to time, require; and, in general, shall perform 13.65Stage Road Homeowners Association Bylaws of Stage Road Homeowners Association 13 all the duties incident to the office of Treasurer and such other duties as may from time to time be assigned to him or her by the Board or by the President. The Board may appoint one or more Assistant Treasurers who may act in place of the Treasurer in case of his or her death, absence or inability to act. 8 Miscellaneous 8.1 Amendment of Bylaws. Except as provided in the Nonprofit Act, the Board 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 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 Board. 8.4 Seal. The Board 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, Directors 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 Board, 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 Board. [signature page follows] 13.66 Bar Slash X Ranch LLC - Annexation and Stage Road PUD/Subdivision: Final Submission Bylaws of Stage Road Homeowners Association 14 ADOPTED AS OF ___________________, 200__, BY THE BOARD OF DIRECTORS OF STAGE ROAD HOMEOWNERS ASSOCIATION. Name: Name: Name: