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HomeMy WebLinkAbout20070444.tiff PLANNED UNIT DEVELOPMENT (PUD) SKETCH PLAN APPLICATION FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT#/AMOUNT# 1$ CASE# SSIGNED: APPLICATION RECEIVED BY PLANNER ASSIGNED: Parcel Number / 6 9 - I D - D - c O ( 2 (12 digit number-found on Tax I.D.information,obtainable at the we County Assessor's Office,or www.co weld.co.us). (Include all lots being included in the application area, If additional sp ce is required,attach an additional sheet) Legal Description ' srTi0iv of ie S'aa't1 AAA ion /12,Township / North, Range (7West Property Address(If Applicable) 402 Existing Zone District:?it l2, Proposed Zone District:?u,D, Total Acreage:8/251t Proposed#/Lots 9 Average Lot Size: 3,3,3 + Minimum Lot Size: O I,D Proposed Subdivision Name:D+sTacr7kiv 7k/m:/r P4."), Proposed Area(Acres)Open Space: .5.7/ 5-1s this application to be reviewed as a Cluster PUD?Yes No X Are you applying for an exception to the Public Water requirements? Yes No X FEE OWNER(S)OF THE PROPERTY(If additional space is required,attach an additional sheet) Name: TZ M LI-C. — Sol,,v Le, ZAdeI1 LMn)zrfger Work Phone# Home Phone# 97?539--U4'3 Email Address Address: 4aoo LOCK tgj City/State/apCode F 'r T 1,4147:2N 10/0 — ?ad APPLICANT OR AUTHORIZED AGENT(See Below:Authorization must accompany applications signed by Authorized Agent) Name: S,Z�yj ) ��� — John) ti: /Ariel Manvet. boxy & Work Phone#,.c^q-E?5)-/?S4Home Phone# Email Address ddgd91iheor/s rr-�rors Lcrn Address: 9675 W ct I o / City/State/Zip Code rtrq-T 1 u p75nI / Cc%hgd o g'pea.I UTILITIES: Water C atilt-14 tif2a- . Coq,vf, Wq'fei- l'7, icr;-/ . Sewer Stud;v.da¢1 Sewage Dispc5a1 5y4k.ins Gas: Nor ✓1-✓2 i/,Able Electric: itvfjed 'Po we r Phone: G?wr'4; DISTRICTS: School: 'rr-8 Fire: For-T Luo7`0N F-5 Post: I(We)hereby depose and state under penalties of perjury that all statements,proposals,and/or plans submitted with or contained within the application are true and correct to the best of my(our)knowledge. Signatures of all fee owners of property must sign this application. If an Authorized Agent signs,a letter of authorization from all fee owners must be included with the application. If a corporation is the fee owner,notarized evidence must be included indicating the signatory has the legal authority to sign for the corporation. ri2/vl 2!01-71/144//,',,ya- Signature: OwAuAgent Date Signature: Owner or Authorized Agent Date ////t4 -4- 2007-0444 Page 1 of 1 --Original Message-- From: Jacqueline Hatch To: Jarvis Fosdick Sent: Tuesday, September 26,2006 9:08 AM Subject: RE: Distant Thunder PUD Jarvis It would be great if you could adjust all the plans now (prior to submittal). I will leave the application up at the front counter here in the south office for you to pick up. Thanks Jacqueline From:Jarvis Fosdick[mailto:intermill@gwest.net] Sent:Tuesday, September 26, 2006 8:56 AM To: Jacqueline Hatch Cc: ddg@ncconstructors.com Subject: Distant Thunder PUD . .-.-.__ .-.. .. . Re:School District and other Responses Hello Jacqueline, Patty Schultz with RE-8 school district )' , . mii*,,, says that their buses will not use a bus-pull-out lane along '14 WCR 19, she says that given the length of the internal roadway the bus can pick up at each house and turn around within the cul-de-sac. She doesn't need the / shelter or the bus lane. The post office wants a mail kiosk, however. No other concerns have been found. Attached are the documents indicating such. These changes will require alterations to the Engineering plans, ROW dedications to WCR 19 and the project narrative. Would it be best to revise the plans now? Jarvis Fosdick Intermill Land Surveying, Inc. 1301 North Cleveland Ave., Loveland,CO 80537 Fax:(970)835-9775 Phone:(970)889-0516 Email:intermill@gwest.net NOTICE: USE OF THIS ELECTRONIC MEDIA BY ANYONE OTHER THAN INTERMILL LAND SURVEYING,INC.SHALL BE AT THE SOLE RISK OF SUCH USER AND WITHOUT LIABILITY OR LEGAL EXPOSURE TO INTERMILL LAND SURVEYING,INC.BY SAVING THESE FILE(S),USER ACCEPTS RESPONSIBILITY FOR THIS ELECTRONIC MEDIA. Internal Virus Database is out-of-date. Checked by AVG Free Edition. Version: 7.0.394/Virus Database: 268.10.5/405 -Release Date: 8/1/2006 2/15/2007 ULES OF ORUANIZATI( JZM, LLC J, the undersigned natural person of die age of eighteen years . re, acting as organizer of t limited liability company under the Colorado Limited Liabilit: Cotupany Act, adopt the f wing ,Article of Organization for such limited liability company: FIRST: '1'h! name of the limited liability comp .c is JZM t t*; 773,1,71 `. -` `)NJ): 'file period i f a duration is thirty years. �'� r ! %r I - i c I T111kI? The limn d lability company i2n t05-31—''0 1,7:58 pursuant to the C'O1' nrlo Linritc 1 ability Company Act rgauir; i' for any legal and lawful purpose FOURITI: The mailing address and street address of ie ii-.idal registered office of the limited liability company is 9031 Weld County Road 13, Lo 'ions, Colorado, 80504 and the in me of its proposed registered agent in Colorado at that alit ' John W. Zadel.1:F171 Manage; cat of this limited liability company is vested in the managers and not the members. SIXTH: The n- rues and business addresses of the mitt i managers re: John W:-Zade1, 3031 We!&county Road 13,Longmont Colorado_80504 - _ Mari•t Zadc l 9031 Weld F-ounty-Rsd 13; Longmont, Colorado'80504 SL`TENTH The name and address of the amzeds Tcrfir 4Wraddl:9Q311 1'i I County Road 13, Lougm°, t, Colorado 80504 IN WI NESS WHEREOF, the above named organizer signed these Articles of Orgauizatioi: in the A22-day of May, 1996. v STATE OF COLORADO ) COUNTY OF BOUJB' R ) ss: I, the undeisigned, a •otary public, hereby certify that on the rday of May, 1996, the above named organizer perso ally appeared before me and being by me first duly sworn declared that he is the person who sinned die foe' ;oing Articles of Organization as organizer and the statements therein contained are true. IN WITNESS WHEREOF,I have hereunto set niv hand and official seal this 30^ of May, 1996. day �d,,��p�FJ)'tirf,4 I Yr;il,?pi on expires: ,— :i,UTiiflJ-% Pow-1G: 'IU Public Notary Fu b 'floe mini i o MY COMMISSION EXP! — JUNE 28,MA 7-- - v � \S\' OPERATING AGREEMENT �- �� JZM, LLC This Agreement made this if day ofit , 1996, effective be'ween John W. Zadel and Mary C. Zadel, herein er collectively referred to as "members" and JZM, LLC, hereinafter referred to as the "LLC". L INTRODUCTION The parties have formed a limited liability company effective on i//,gaWlj for the sole purpose of . The rights and obligations of the LLC and the members shall be provided in the \irides of Organization and this Operating Agreement. II. PLACE OF BUSINESS The principal i lace of business of the LLC shall be 9031 Weld County Road 13, Longmont, Colorado, ( r such other address to which the business may from time to time be moved. III. DURATION OF THE LLC The LLC shall commence operations on 5,///q9(, for a term of not to exceed / and shall continue f or by agreement betwee i the thirty arrtiesa)years thereafter unless temuna sooner by operation of law [V. CAPITAL CONTRIBUTIONS The undersign( i menu ers shall make initial capital contributions to the LLC according to the percentage or thei ownership by the contributions of capital shown below. Each member owns an undivided interest in die business and company as follows: ......._ Interest Initial Capital Contribution blii W.Zadel ) d <' MuyC Zadel O J ' V. ADDITIONAL CAPITAL CONTRIBUTIONS A. The members shall contribute in proportionate mounts any additional capital deemed necessary, for the operation of the LLC as required by a vote of the members,provided, however, that in the event that any member refuses or fails to contribute his share of my or all of the additional capital; then the other members or any one of them may contribute the additional capital not paid in by such refusing member and shall receive therefore an increase in the proportionate share of the ownership and profit interest in the entire LLC based on the new proportion of their capital account as compared to the total of all capital accounts of members. ,I . : Utile.s otherwise agreed,the right to make up additional capital contributions of a refusing member shall be available in the same proportions as the members electing to make the contribution hold profit interests in the LLC (excluding the interests held by members refusing to make the additional capital colt tributions). Bt ,In lieu of voting an additional assessment of capital to meet operating expenses or to finance new:ingestments, the LLC may, as determined by the managers, borrow money from one JZM/Operating Agmt/6/25/96/jac lie ;J_ tiro actsn , or of the ers, members, r rson& In the t'eat that a negotiated with aamanager or member, hehorshe shall be entitled to receive interest agreement is a rate and upon such terms to be determined by the managers, excluding the i imager making said loan, if applicable, and said loan shall be repaid to the manager or member, with unpaid interest, if any, as soon as the affairs of the LLC will permit. The loan shall be evic enced by a promissory note obligating the assess of the LLC. Such inte'est and repayment of the amounts so loaned are to be entitled to prior ty of payment over the division and distribution of capital contributions and profit among member;. VI. PURPOSES business he purpose of the LLC is environmental remediation services and such other lawful purposes of which the LLC may elect to pursue in the future. VII. DIVISION OF PROFITS AND LOSSES Each of the members shall own an interest in the LLC as set forth in Paragaph IV, entitled "Capital Contributions",except as the same may hereafter vary or change as provided in Paragraph V,entitled "Contributions of Additional Capital" and as the same may be modified pursuant to this Paragraph VII. All profits of the LLC enterprise shall be shared by each of said members according to the percentage of ownership and profit interest each member owns. A separate capital account shall be maintained for each member. No member shall make anv withdrawals from capital without prior approval of the LLC. If the capital account of the member becornes impaired his share of subse_yuentLLC profits shall be first credited to ins capital account until that account has been restored. The profits and gains of the LLC shall initially be divided and the losses, deductions, and credits of the LLC shall be borne in the following proportions: The division of profits and losses and the ownership interests of Paragraph IV above shall be adjusted from time to time based on member capital accounts existing on the last day of December of each year to reflect the then existing capital account balances as a percentage of all members'capital accounts. All distributions of assets of the LLC,including cash, shall be made in the same allocations among members as described above. The managers shall determine, in their discretion, whether distributions of assets of the LLC should be made to the members; provided, however, that no distribution of assets may be made to a member if, after giving effect to the distribution, all liabilities of the LLC, other than liabilities to members on account of their capital and income accounts, would exceed the fair value of the LLC assets. A member has no right to demand and receive any distribution from the LLC in any form other than cash. For purposes of this Agreement, "Capital Account(s)" shall mean an account to be maintained with respect to each Member in accordance with federal income tax accounting principles and Treasury Peg'ilations Section 1.704-1(b) or any successor provision. Each Capital Ac such count shall be increased b the amount of(i) any cash contribu-ion to the capital of the Company by (n et of anr y 1 abilitied the s secured by such contributed market value of property trty corm hat the Compan to the y is consi such dered JZM/Operating Agmy6/25/96/jac to assume or take subject to, under Section 752 of the Code), (ii) the distributive share of the Company's income and gain (or items thereof) as allocated to such Member pursuant to Paragraphs IV, V and VII hereof, and (iii) the distributive share of income exempt from tax. Each Capital Account shall be decreased by (i) the amount of any loss or deduction (or items thereof)allocated to such Member pursuant to Paragraphs IV, V and VII hereof, (ii) Ili.: amount of all distributions in cash to such Member pursuant to this Agreement, (iii) the fair mar et value of property distributed to such Member (net of any liabilities secured by such distribut d property that the Member is considered to assume or take subject to under Section 752 of the Code), and (iv) the distributive share of expenditures of the Company described in Section 705(a)(2)(B) of the Code. The following rules shall apply in maintaining Capital Accounts: A. If property the Company, Capital Accounts shall be adjusteds though such property had been sold whether in liquidation the date of such distribution for its then fair market value, and any gain or loss on slit sale had been allocated in accordance with Paragraph IV. F. If property is contributed to the Company, Capital Accounts shall be adjusted in with ance with Treasury Regulation Section 1.704-1(b)(2)(iv)(d)(1). The Members recognize that respect to properly contributed to the LLC by a Member and with respect to property revalued in accordance with Tr asury Regulation § 1.704-1(b)(2)(iv)(f),there will be a difference between the agreed values or "carrying values" of such property at the time of contribution or revalt ation and the adjusted tax basis of such property at that time. All items tax depreciation, cost reef:wayr___ amortization,amonntreali7ed-and gain or loss-with respect to such assets shall be allocated among the Members to take into account the book-tax disparities in accordance with the provisions of I.R.C. §§ 704(b) and 704(c) of the Code and the Treasury Regulations under those sections. C. If, in any taxable year, the Company has in effect an election under Section 754 of the Code, Capital Accounts shall be adjusted to the extent required by Treasury Regulation Section 1.704-1(b)(2)(iv)(m). D. 'n the event of a permitted sale or exchange of a Member's interest, the Capital Account of the transferor shall become the Capital Account of the transferee to the extent it relates to the transferred membership interest in accordance with Section 1.704-1(b)(2)(iv)of the Treasury Regulations. E. The manner in which Capital Accounts are to be maintained pursuant to Paragraphs IV, V and V II is intended to comply with the requirements of Section 704(b) of the Code and the Treasury Regulations promulgated thereunder. If in the opinion of the Company's accountants the manner in which Capital Accounts are to be maintained pursua'u to the Preceding provisions of this Paragraph VII should be modified in order to comply with Sc ;tion 704(b)of the Code and the Treasury Regulations thereunder, then notwithstanding anythi ig to the contrary contained in the preceding provisions of this Paragraph VII, the method in whic i Capital Accounts are maintained shall be so modified; provided, however, that any change in the manner of maintaining Capit 1 Accounts shall not materially alter the economic agreement between or among the members. F. Upon liquidation of the Company (or any member's membership interest), liquidating distributions will be made in accordance with the positive Capital Account balances of the members, as determined after taking into account all Capital Account adjustments for the Company's taxable year during which the liquidation occurs. Liquidation proceeds will be paid in accordance with Paragraph XI. The Company may offset damages for breach of this Operating Agreement by a member whose interest in'liquidated (either upon the Disassociation of the member or the liquidation of the Company) against the amount otherwise distributable to such member. TLM/Operating Agmt/6/25/96/jac VIII. RULES RELATING TO THE M EMBERS A. Additional members may be admitted upon the unanimous written consent of all members. B. A member shall be entitled to one vote on any matter for which members are required to vote, with each vote to be weighted as to a member's percentage ownership interest of 4 the LLC. A member may vote in the members shall be made by a majority vote rson I ir by proxy f th ownershipeinterests owned of sbyth members at a properly called meeting of the members at which a quorum is present, or by unanimous written ;In( consent of the members. 3d. C. Meetings of members may be h eld at such time and place, either within or without the State of Colorado, as may be determined by the managers or the person or persons calling the meeting. U D. An annual meeting of the members shall be held at a time and place designated E. Special meetings of the members may be called by the managers or by at least one-tenth of the ownership interests entitled to vote at the meeting. F. Written notice stating,g tthe c i and hourof shah the meeting o m the case of g purpose for which the meeting is called, shall be delivered not less than ten (10)days nor more than fifty(50)days before the date of the meeting,either personally or by mail, by or at the direction of the managers or any other person calling the meeting, to each member of record entitled to vote at such meeting. A waiver of notice in writing, signed by the member before, at, or after the time of the meeting stated in the notice shall be equivalent to the giving of such notice. G. defective notice unB s the attenmemding acmee ti g, member waives objection to the lack of notice or meeting or the transacting of business at the meeting. A the mmemeetr ing, objects to meeting e holding ofwaives the objection to consideration at such meeting of a particular matter not withinthe purpose esc ied in the notice unless the member objects to considering the matter when it is presented.e°se described in H. A majority of the ownership interests in the LLC entitled to vote shall constitute a quorum at the meeting of members. If a quorum is not represented at any meeting of the members, such meeting may be adjourned for a period not to exceed sixty (60) days at any one adjournment;provided,however, that if the adjoumment is for more than thirty(30)days, a notice of the adjourned meeting shall be given to each member entitled to vote at the meeting IX. MANAGERS A. Management and the conduct of the business of the LLC shall be vested in the managers. The managers may adopt resolutions to govern their activities and the manner in which they shall perform their duties to the LLC. B. Managers shall be natural persons eighteen(18)years of age or older. C. The number of managers shall be one. The number of managers shall be increased or de creased by the vote or consent of the members. The initial manager shall hold office until the first annual meeting of members and until his successor has been elected and qualified. Thereafter, each manager elected by the members shall hold office for a one-year term or until his r• JZM/Operating Agmt/6/25/96/jac or her successor has been elected and qualified.Managers shall be elected by a vote or consent of the members at an annual meeting or at a special meeting called for that purpose. The initial manager shall be John W. Zadel. D. Meetings of the manages may be held at such time and place as the managers by resolution shall determine A Written notice of hours before the e meetings of the managers shall be delivered at least twenty-four (24) I7t hours the twenty-four perhour sonally, by telecopier, or by mail actually delivered to the manager no before, at, or after the time of the meeting statederiod. A tver of in the notice, shall be e in quivalent alert byt tthe manager he giving of such notice. unless, By he beginning f meeting,the meeting,amanager waives objection to the lack of notice or defective notice rh transacting of business at the meeting, the manager objects to the holding of the meeting or the n A majority of the managers, if more than one,endued to vote shall constitute a quonun at the meeting of managers. All decisions of the manages shall be made by a majority vote of the managers, if more h than one, at a properly called meeting of the mangers at whicha quorum�� tunanimous written consent-of-the managers. In the event the managers are deadlocked,the v — majority vote of the ownership interests of the members shall control. E. The managers shall have the duties and responsibilities as described in the Colorado Limited Liability Company Act, as amended from time to time with the following I restrictions: of the shall execute The managers, or any one of the managers, as designated by resolution disposition of members,he property any instruments or documents providing for the acquisition $5,000.00. An afiratve vote of a majorLLC or ity or f the membership ship interest or lending s must the authorize such actions to be taken. the managers as design Except as provided d in Paragraph IX E. (i), the managers, or any one of ii. E no edocuments providing for the acquisition, borrowin managers, shall execute r dispositionany instruments the property or the LLC. g,mortgage,or of the of i.$5,000.00 shall be authorizedii Any debt contracted or liability incurred by the LLC in amounts less that documents required to beecuted by the LLC shall be signed a resolution of the berthe managers or anyone of the managers as designated by resolution of the managers. iv. The managers may designate any one of the managers or delegate an employee or agent to be responsible for the daily and continu;ng operations of the business affairs of the LLC. All decisions affecting the policy and management of the LLC,including the control, employment,compensation, and discharge of employees; the employment of contractors and subcontractors; and the control and operation of the property, including the perfomtance of contracts or services of the LLC,and all other matters pertaining to the operation of the business, except as specifically provided by Paragraph IX E. (i),shall be trade by the managers. QM/Operating Agmt/6/25/96/jac v./ the bank account of the LLC and alter or persons designated by the LLC connection witlrthe business affairs of the make, liver,accept, or ndorse y draw checks upon ,-, any commercial paper n F. At all times during tune,attention, and t all m se to the term of a manager, the 4 shall with reasonable s and use reasonable efforts in managnr shall ghee reasonable sahall f said LLCM and power, exert himself or herself for thhe e business joint interest said and shall truly andC; and e diligently pursue the LLC objective. 4 benefit, and G. Managers,employees, and agents of the LLC shall be endued to be indemnified ' by the LLC to the extent pr-,vided in the Colorado Limited Liability from time to time, and sl o I be entitled to the advance of expenses, including attorney's fees defense or prosecution of a claim against Company Act, and amended gfnt him or her in the capacity of a manager,employee,'1II the or aservices the LLC in a fullH. The time ducaring the period of ' $services to sal shall be endued to receiveat he is providing l ongoing day to day $ decrease d Such cma shall be paid as a LLC operating a monthly sal Such salary ary if time to time b✓a majority vote of the interests f the LLC. be increased X. BOOKS AND RECORDS A. The d records of the LLC or atsuch o e place as the managers by vote oe LLC shall consent shall designate. be maintained at the principal office of B. Each member shall at all times have access to the books and records of the LLC for inspection and copying. Each member shall also be entitled:i. To obtain such information reasonably related to com the e managrs membership interest demand for an hip.interest in the LLC.any Pose ii. To have financial condition and any other info a and full information re mtarion regarding the affairs j of arding the state of the business and g sus of the LLC. for each year prom a m. To have a copy of the LLC's federal,state P y after they are available to the LLC;and and local income tax returns render an accountin iv. To have a formal accounting of the LLC off g just and reasonable. airs whenever circurnstances The books shall be maintained on a cash basis. The fiscal be the calendar year. Distributions to income accounts shall closed and balanced at the end of each calendarbe made year of the LLC shall by vote or consent of the managers, it shall be year a and,$if the closing date. The managers m. The books shallay authorize the re any audit is determined to be necessary public authorize the preparation of year-end profit-and-loss statements, balance sheet,and tax returns ya XI. DISSOLUTION A. The LLC shall be dissolved upon the occurrence of any of the following events: i. At any time by unanimous agreement of the members; JZM/Operating Agmt/6/25/96/jac / / Articles of Or n' Upon the expiration of the period fixed ed for the duration of the LLC in its iii. Upon the death, retirement, resignation, expulsion, ban u tc dissolution of a member. P Y, or elec t io continue the Notwithstanding business dissol LLC of the LLC under Paragraph may yjn ninety njdays theby the unanimous XI A. (iii), the members pt (90) after ten unction and by chasi :the d t of theremainingete Ct expelled, or bankrupt member's ("Withdrawn Member") ee the deceased, retired, members Membership Interest B. Upon a dissolution of the LLC, the as>ets shall be used and distributed in the following order: l.,( i. To pay or provide for the payment of all LLC liabilities to creditors other tot than members, and liquidating expenses and obligations; it n. To pay the reasonable compensation and expenses of managers incurred in liquidation; and "I' members in accordance with we mamount nt then remaining to _and Colorado Limited Liability statutory scheme for ditribution paid gquidafionlof the LLC under 4ty Company Act,as amended from time to time. subject to ArticEe c andotherwise required in the Colorado Limited VII),no member shall have any liability tLiability st re allll Companyr Act of a d deficit balance in such member's Capital Account Y portion a c C. i. If the members elect to continue the business under Paragraph XI A. for the retirement, resignation, expulsion or bankruptcy of a member, the purchase price of the Withdrawn Member's Membership Interest shall be e account as of the Effective Date, equal o the of the end Member's p fiscal year, decreased by his or her share of the LLC losses, deductions, and credits computed to the plus his or her income account as of the of the prior fiscal Effective Date. The purchase price is subject to setoff for any Member's wrongful dissolution of the LLC by reason of the Withdrawn Member's expulsion, retirement, resignation, or Jr rilru tc . damaged for the Withdrawn members interest shall be governed b The purchase price and terms of repurchase of a deceased ' by Paragraphs XIV and XVII. i as a purchase price determined under Paragraph XI C.(i) shall be paid to the Withdrawn Member ow a. 25% of the total purchase price within 30 days of the notice of intention to purchase; b. the remaining sums of the purchase price shall be due and payable in one year. D. The Effective Date shall be the date of death of a deceased member, the date of personal notice is received, or the date the certified mail is postmarked, in the case of a retired,resigned, or expelled member; or the date the notice is delivered to the Withdrawn Member or the place of official business of the LLC, in case of bankruptcy of a member. JZM/Operating A g mt/6/25/96/jac / / XII. RESTRICTIONS ON TRANSFER No member's interest in the LLC may whatsoever to any person or firm,whatowniso vetsa jy the LLC without having first been offered or disposedthe eh r in my manner interests interestsin the LLC shall be and only upon the written consent of other the other members t the t other members. C si P edged by any member without thewritten att no s nt of the None of the oterm ofbe s E member by executing this q wy con consent of LLC and all admission lide, and individual member a made pursuant to the terms of hereby reemnts to thegtransfer me he provided the individual re y transfer its interest to a uus agreement D and/or h' mains a trustee ' trust for the member snug a member's m control of the trust or its family's benefit shall not A purchaser of a Membership Interest of the LLC shall not become a member and members, but sspat be entitled to tr of te the share wthout the unanimousselling consent of the non-selling f member would be entitled. gains, losses, deductions, credits n XIII. OFFER AND A member desiriong ACCEPTANCE same to the other members holdingtransfer or dispose of his interest shallfirst offer to sell the notice to each other member thenon the sa1 interests pursuant by the member desiringto sell Each e such mem rdshallto a right of of have fide w st refusal e s� byY purchase � such interest, by tree offer received proportionate of such amount o of the su event any giving notice of acceptance within right to r suchp Ce with to thirty a lfails to exeright to such option seto prtionat part o f day period, the other members shall have the right to the interest offered to such non-accepting member(s), ' �� thirty ti day period. For such o-a this ce agreement t apurchase a proportionate such shall be determined by within ten m days after expiration interestof excluding from that toal dividing his profit interest purchasing thetmerit interests rests ofo all member x who declines to the interest being by also pe total profit interests interest owned members offered for offered and t) multiplied dtip the the owned by b any sale, In the eventrallinterestowned by the offer mbrisby being accepting members, the LLC shall thereupon have the right to remaining the interest of the offering member. g member not purchased by the th the offngn In the event the accepting members and thechCe any t punh off the of a the ember, the offering member shall LLC do r ct vey a interest terms of the bona fide written offer for a entitled to riod t to osexc exceed convey . Ifs interest not consum Hated within such time and on the terms of the bona fide offer, the�members right to transfer the interest conveyance interest shall be subject o to fare conditions and suchdays. a sale is ot and any applicablethis itions shall termite. Such transfer greem t, laws. restrictions of this agreement XIV. LIFE INSURANCE AND PURCHASE AT DEATH beneficiary The LLC may obtain insurance on the life of any LLC for c the ry of the policies. All policies and any proceeds received thereunder purposes of this Agreement member, naming itself as any mmber purposes this The LLC a ereundesshall on held by the s agreement. If the required to out out its insurance i under t of agreemst ent the time the LLC the elects to purchase insurance polices to fund the purchae of obligations member's ies and shall, if requested give m proof death,o LLC shall pay all premiums premiers. The amount of ursuranceent to the on each member shall 15 days o after cthe e duecdate of each members. amount as decided by the IZM/Operating Agmt/6/25/96/jac nrn14 IPf`..:• The LLC shall be the sole owner of any insurance payment of pzemiums and dividends declared and beneficiary of such insta paid on the policies and may apply to the ante policies. policies and the LLC shall be the A. Upon the death of him. Thethe decedent shall ll ll the decedent's of any interest rest in the LLC now o purchase price f the d interest may pawned or and the estate or[red[of by below. shall be the value as dete caned u hereafter gcquired venires under Paragraph XdII re For the �• ( shall apply to the F the purposes rp sexecutingofthis agreement, the provisions concerning PP Y r transfer theirinterest into a trust controlled thiss agreement as individuals and if such death memb of a er(s) later be invoked upon the death of the individual be r xecutterthis agreement regardless of herein shall such interest is held at the time of such member's death. L The purchase `ti 30 days after the a purchase a price a shall be paid in cash to the estate or trust of the decedent within tc purchase price or upon receipt ofpany personal proceeds by the LLC, whichever occurs later. representative of such estate or the determination of the Such purchase price shall be paid on the following terms.i. an u net procee of any insurance equal tothe greater of 25% of the total purchase price of the net procee is, within 30 ncehe policy ye ownedof inte by the LLC on th i, the term "t et days any purchase. Forr pur ores life asset forth proceeds"i et proceeds less any insurance e ance policy" shall be defined to be p theses gross life insurance solely to the LLC's obligation incurred by the LLC or theomembers related receipt of the insurance proceeds; equal monthly ii. the remaining sums of the years after th first payments based due her under with interest on thenpaid amounts e price shall be due and gs adjusleted in ear r'tizatior with all unpaid amounts being due 3 on the fu it day of each month at the interest rate of 2% over the Wall Street Journal existing o a he' last published date of the month being adjusted immediately prior to th ;interest change prime rate B. In the event the LLC does not exercise its option to purchase the decedent's interest or the LLC is legally unable to purchase the deceased member's interest, then in such event the surviving member(s)has the following options:i.pursuant to this provision, to ideextent l of th the deceased is legally� member's interest will be estate of the decedent shall sell the interest in the LLC now owned or hereafter acquiredpurchased The remaininog able, the LLC shall purchase and the member ahall have testright t the tdecedent ecpuedcha e may Io a purchased by the suc surviving memb iving by ti e of acceptance within thirty proportionate amount of such interest, by days after receipt of notification from the LLC or the deceased member's representative of the applicability giving notice member's such option to of this paragraph. In the event any member fails to exright to se suchaop a proportionate purchase within such thirty day period, the , ten days expiration part of the interest offered to such non-accepting shall have the member's afterofsuc shallyre ypriod. For purposes of this Agreement pg member,within LLC by the proportionate o profits interest re the remdeterminedaining by divide a purchasing the member's ta profits t and also of thermg members (excluding from tattotal the Pthe deceased member's profit purchase interest his proportionate excludingthe interest in the LLC owned by an declinesmember to[ u Inshare) multiplied by profit Y to deceased who e LLC and/or the LLC. Inthe event all interest owned b the deceased member is not purchased by thaccepting members, this paragraph shall be of no further effect. The purchase JZM/Operating Agmt/6/25/96/jac ,..m. was a lit price of the interest shall be terms shall be the same the value as determined under as set forth in paragraph XIV Paragraph . below A. i and ii above, and the payment provisions of Paragraphii. In the event the interest of the decedent is not illXI. XIV A. or XIV B., then the LLC shall be Purchas pursuant ro the ph dissolved pursued ant to Paragraph C. For purposes of this agreement, any owned by the LLC on the decedent's life shall not increaec the decedent's capital account ph decedent's interest is •tot t insurance dc proceeds for line insurance °l purchased pursuant to either Paragraph XIV A or B. unless the XV. OPTION FOR MANDATORY PURCHASE OF A. Each memberan INTEREST the LLC upon A. terms and conditions containedtion to each other member to mandatory option of this Paragraph in this Paragraph purchase his interest of exercise the e to exercise such option aragraph XV shall notifyBt Ph XV. ``e member wembet to f vc exerciseleed. Such membees elect and shall set forth the price writing every other member of member". g to exercise such option shall be referred which ttoe option shall be ofire "electing s '8 shall have the op of hin 20 days of the notice given e5 in the notice on thepurchase all of fire elec ' by the electing member, the chase in 5 in the tics on within payment h terms set forth below. s emaini g the purchase all notify sg tet fo to member's i ember and if below. The remaining members shallele the day period of their intention gmm toer purchase e , all of the t u electing such interest on the terms theyset intend to purchase the electing member's interest, the members e shall first be ued tom in this paragraph unless otherwise agreed. Y mlt continue their respective purchase the interest of the electing member The proportions member's interest)eirr ant ownership percentages of the remaining in any remaining g interest(not oproportionate interest nm°ns to the electing then the de remaining do�not wish to buy counting the electing the remainder. member's the event interest,any remaining members shall be entitled to purchase thef the any member does not wish to buy his proportionate intterre t of ten e (l electing days to member's sf interest, then the other remainin ten (10) i sreot, y the electing member of their inter on tobers m rc a ell l o t addicting purchase all of the electing PIn the event the remaining members do not notify to purchase of the electing member's interest within the o urcht of a allofremainingthin the 20-da the electing eio , member extended their wish memberent shall member(s)not electing to purchase its proportionate ate interest), the electing ys on thethen have the right to purchase all of the remainirr of,the remaining purchase terms set forth below and the electing g member's interest within ten(10) g members. g member must purchase all the interest B. For purposes of this paragraph, the purchase price shall be paid on the following terms to purchase; i. 25% of the total purchase price within 30 days of the notice of intention days. ii. the remaining sums of the purchase price shall be due and payable in 120 ,,._. In the event the member giving his tic?`;,: interest fails to the payment required of intent to purchase the other member's member fails timely ape all of the non-electing under XV B i member's interest,rthen m either event, s, in the event the uch 72M/Operating Agmt/6/25/96/jac defaulting member shall thereupon lose his right to purchase such interest and the non-defaulting member(s) shall have the right to purchase the defaulting nember's interest (or a proportionat amount) for an amount equal to the defaulting amount) times the net book value of ti e LLC as shown on the most recently completed balance ( g member's interest in the LLC (or a proportionate sheet of the LLC. Such amount shall be paid within 45 days of the date of default.Ipayment required n i theXV g i of default in the payment of any installment, after the Street Journal () interest shall thereafter accrue at the higher rate of 2% over the Wall Streetbalance aerate existing on the date the down payment is made or 15%per annum n t the unpaid n all unpaid c sum of purchase price until all payments are brought current and at the electiot of the pprincipal and interest shall be due and payable in full. XVL SECURITY As security for the performance of the obligations hereunder, a member purchasing the interest of another member shall pledge to the selling member all interest purchased and those owned by the purchasing member. In the event of a default in the obligations of the member which default shall continue for three (3) months, the withdrawing entitled to the interest pledged. purchasing months, the draw In the alternative, in the event of a default contiinuuing for shall l(3) payment of the monies owed. bar shall have the right to proceed against the defaulting member for The members shall execute all documents reasonably required to evidence the transfer of interest and the pledge of interest XV , PURCHASE PRICE Finterest in or the LLC shall boses of radcemh��above and Para be equal to thepercentage rceh capibelow,tal a member's ownership oth total capital accounts for all members at the time of a triggering t hisunder i ragr ph. to the Upon the death of any gg�i°g event this paragraph. deceased member,the remaining member(s)may party by paying to such party or her legal representative Y Purchase the interest of the or if agreement as to value cannot be reached itthhi iirrt days after the date when the determination of such value shall have e agreed value of such interest, been requested, the following procedures shall control: A. Within ten days, the parties shall attempt to agree upon a single certified public accountant; B. In the event the parties are unable to agree upon a single certified public accountant, the party or parties whose interest is to be sold and the a of the parties who are to acquire such interest shall each designate it wrttin accountant within twenty party or the majority in interest account public dashallys f then,withi the n ommencement of the valuationprocess, d th one certified e cupon the value of the LLC. In the event the tthirty o edgpublic accountants e date of their rust ual meeting,o agree within said thirty day period, they shall themselves appoint a third certified nagree decision of a majority of the three certified public accountants as to the value of the LLC shall control and be binding onpublic accountant. The control shall be value n all farts LLC��� ofed a member's ownership respective ownership interest and discounted for the minors y iv erest, if process cable.multipliedy thst under eir and purchasing party or parties shall each bear one-half of the costs of the applicable. valuation. The If any party fails to timely designate a certified public accountant the other timely designation may then apply to any District Court Judge for the County of Boulder, Colorado, to have him appoint party or parties who have made a certified public accountant for the non-designating party. JZM/operadng Agmt/6/25/96/jac The remaining n embers shall have the option to purchase the deceased member's interest for a period of 60 days after the value is determined. If the remaining members elect to purchase such interest, they shall assume all the existing LLC obligations and indemnify the selling member from liability thereon. For purposes of this paragraph, the purchase price shall be paid on the following terms: a) 25% of the total purchase price within 60 clays of the notice of intention to purchase; b) the remaining sums of the purchase price shall be due and payable in equal monthly payment based on a 15 year amortization with all unpaid amounts being due 3 years after the fast payment is due hereunder adjusted on the first day of each month at the interest rate of 2% over the Wall Street Journal prime rate existing on the last published date of the month immediately prior to the interest change date. XVIII. EXPULSION OF A MEMBER A. A member shall be expelled from the LLC upon the occurrence of any of the following events: i. If a member shall violate any of the provisions of this Agreement ii. If a member's Membership Interest shall be subject to a charging order or tax lien, which is not dismissed or resolved to the satisfaction of the managers of the LLC within thirty (30)days after assessment or attachment. B. Upon the occurrence of an event described in Paragraph XVIII A., written notice o expulsion shall be given to the violating member either by serving the same by personal delivery or by mailing the same by certified mail to his or her last known place of residence, as shown on the books of said LLC. Upon the receipt of personal notice, or the date of the postmark for certified mail, the violating member shall be considered expelled, and shall have no further rights as a member of the LLC, except to receive the amounts to which he or she is entitled under Paragraph XI. XIX. BANKRUPTCY OF A MEMBER A. A member shall be considered bankrupt if the member files a petition in bankruptcy(or an involuntary petition in bankruptcy is filed against the member and the petition is not dismissed within sixty (60) days) or makes an assignment for the benefit of creditors or otherwise takes any proceeding or enters into any agreement for compounding his or her debts other than by the payment of them in the full amount thereof, or is otherwise regarded as insolvent under any Colorado insolvency act. B. The Effective Date of a member's bankruptcy shall be the date that the managers, having learned of the member's bankruptcy, give notice in writing stating that the member is regarded as bankrupt under this Agreement, such notice to be served personally or by leaving the same at the place of business of the LLC. As of the Effective Date, the bankrupt member sha U have no further rights as a member of the LLC, except to receive the amounts to which he or the is entitled under Paragraph XI. JZM/Operating Agmt/6/25/96/jac XX. RETIREMENT OR RESIGNATION OF A MEMBER A. A member shall have the right, at any time, to retire or resign as a member of the LLC by giving three (3) months'notice to the LLC at the LLC's place of business. B. Upon giving notice of an intention to retire or resign, the Withdrawn Member shall be entitled to have his or her Membership Interest purchased as provided in Paragraph XI if the remaining members elect to continue the business of the LLC under Paragraph XI. Upon the receipt of notice of the remaining members' election to continue the business, the Membership Interest of the Withdrawn Member in the LLC shall cease and terminate, and the Withdrawn Member shall only be entitled to the payments provided in Paragraph XL XXL REPURCHASE OPTION UPON OCCURRENCE OF CERTAIN EVENTS A. For purposes of this Paragraph, a Triggering Event shall be defined as the occurrence of the following event: i. In the event an individual member has transferred his interest to a trust controlled by such individual as trustee as permitted by Section XII above, upon the individual ceasing to act as the trustee with control of such trust. B. Upon the occurrence of a Triggering Event, the LLC may, at its option, and if the LLC is l.;gally able,purchase from the member of which a Triggering Event has occurred, (the the"Triggering Member") and the Triggering Member, his representatives and assigns, shall sell all Member..erIfsuch option is exerest rcised, te he LLC ned or price of hereafter acquired by such the value as determined under Paragraph XVII above. The purchase price shall be paid to the triggering Member after the value of the Triggering Member's interest is determined pursuant to Paragraph XVII above, on the following terms: i.30 days of the notice of intention an toamounpurchase; the greater of 10% of the total purchase price within ii. the remaining sums of the purchase price shall be due and payable in monthly payments due on the first day of the month,equal to a 15 year amortization of the amount financed using an interest rate equal to 9 percent per annum, with all unpaid amounts being due 10 years after the first payment is due hereunder. The purchase l rice may be prepaid in full or in part at any time without penalty. In the event the LLC sells substo'Bally all its assets or in the event the surviving member(s) sells more than 51 percent of the outstai ding interests of the LLC to persons other than those persons owning interest in the LLC at the date of the triggering Event as defined above, the unpaid amounts owing hereunder shall be due in full. In the event of default in the payment of any monies owing which default continues for 45 days after written notice of default, all monies owing shall be due in full and after such 45 day period has elapsed, the unpaid balance shall draw interest at the rate of 18 percent per annum. In the event of a filing by or against the LLC for bankruptcy,all sums owing shall be due and payable in full. C. In the event the LLC does not exercise its option to purchase the Triggering Member's interest or if the LLC is legally unable to purchase all of the Triggering Member's interest, then in such event the remaining member(s) may purchase the Triggering Member's interest under the following teams: r JZM/Operating Agmt/6/25/96/jac - ,/ i. Provided all of the Triggering Member's interest will be purchased pursuant to this provision, at the option of the remaining member(s), the LLC may percentage of the interest owned by the Triggering Member and the Triggering any interest in the LLC now owned purchase a LLC be int a or hereafter acquired by him. SuchinterestIpurchas shall sell theshallpercentage as approved by the members of the LLC. The remaining interesturchased the f Triggering Member may be purchased by the remaining members who are agreement. Each such member shall have the right to purchase a proportionate amount of such interest, by giving notice of acceptance parties to this the Triggering within thirty days after receipt of notification from the LLC or8gering Member of the applicability of this paragraph. In the event any member fails to exercise such option to purchase within such thirty day period, the other members shall have the right to purchase a proportionate part of the interest offered to such non-accepting member, within ten days after expiration of such thirty day period. For purposes of this Agreement a purchasing member's proportionate share shall be determined by dividing the number of his interest by the total outstanding interests(excluding from that total the interest of the Triggering Member and also excluding the interest owned by any member who declines to purchase his proportionate share and excluding any interest to be purchased by the LLC under this paragraph) of the Triggering Member. The purchase price of the interst shall the value as the interest etermined underB (i)paragrapii)h XVII above and the payment terms shall be the same as set forth in Paragraph the survry and (member above w be by t e o minimum inth ou cash paid at the time of purchase by the LLC and and the purchasing member(s) shall be personally liable for the purchase price of the interest personally purchased by the member(s)and shall personall tal purchase price of the Triggering Member's interest any interest purchased by the LLC. Y guarantee the payment by the LLC for D. In the event the interest of the Triggering Member is not purchased pursuant to the provisions of Paragraph XXI B or C the LLC shall purchase all interest of the Triggering Member if it is legally able, but if not legally able, the Triggering of the LLC and all interest shall remain subject to the terms of tis agreementpand the repurr repurchase option set forth in this Paragraph remain a member XXI shall lapse as to the Triggering Member. ..---- XXII. COLORADO LA W This Agreement and all questions arising under it shall be determined in accordance with the laws of the State of Colorado. XXIII. NOTICE Whenever under this Agreement, notice is required to be given, it shall be given in writing, and if such notice is served by certified mail,is posted. Notices shall be addressed to it sthhe respective parties aave t addresses ss s listed on the LLC's books. XXIV. ACKNOWLEDGMENT OF INVESTORS Each member who is or becomes a party to this agreement acknowledges that he is a resident of Colorado, that he is acquiring the membership interest for investment for his own account, and that he does not intend to sell such interest in the LLC in the foreseeable future; that he is aware that his investment in the LLC is strictly a speculation, ndrposeh only, afford any loss he might suffer as a result of acquiring thatheis and that that can interest in the LLC of the LLC may be classified as a restricted security cq g such interest; that aware the resold without a federal exemption from registration, or registration o the securi that ty at tthheytime of sale; and that he has reviewed and understands the nature of the business and proposed business of the LLC to his satisfaction, and that no member, or agent of the LLC has made any representations JZM/Operating Agmt/6/25/96/jac to him as to how much the value of such interest in the LLC might increase or how much income might be realized by the LLC. XXV. BENEFIT This Agreement shall bind and extend to the heirs,representatives, successors and assigns of the parties hereto, including their creditors. XXVI. ATTORNEY'S FEES. In the event any party hereto initiates legal proceedings to interpret or enforce any t .rm of this Agreement, the prevailing party shall be entitled to an award of attorney's fees and costs incurred. XXVII. PRIOR AGREEMENTS This Agreement supersedes all prior agreements and no amendment of this A be effective unless set forth in a written amendment signed by all the members and theL LC. shall IN WITNESS WHEREOF, the parties have executed this Operating Agreement on the date and year first written above. JZM,LLC By r/ .- J .Zadel By r Mary C adel STATE OF COLORADO COUNTY OF BOULDER ) ss. • • The foregoing instrument was acknowledged before me this b u 1996 by John W. Zadel and Maryday C. Zadel. My commission expires: • Witness my hand and official seal. Notary Public JZM/Operating Agmt/6/25/96/jac WELD Cl JNTY ROAD ACCESS INFORMAT. .4 SHEET Weld County Department of Public Works 111 H Street, P.O. Box 758, Greeley, Colorado 80632 Phone: (970) 356-4000, Ext. 3750 Fax: (970)304-6497 Road File#: Date: RE#: Other Case#: 1. Applicant Name John Zadel Phone (970) 539-1083 Address 4200 WCR 19 City Fort Lupton state CO Zip 80621 2. Address or Location of Access Portion of the South Half Section 10 Township 1 Range 67 Subdivision Block Lot Weld County Road #: WCR 19 Side of Road East Distance from nearest intersection ±2000' 3. Is there an existing access(es)to the property? Yes No X # of Accesses 4. Proposed Use: ❑ Permanent U Residential/Agricultural ❑ Industrial ❑ Temporary • Subdivision ❑ Commercial ❑ Other ***************** *****»************************************************* ************************ 5. Site Sketch Legend for Access Description: AG =Agricultural RES = Residential WCR 12 O&G = Oil&Gas D.R. = Ditch Road O = House O = Shed = Proposed Access `� N C r. - = Existing Access 3 Proposed Access /1\ to internal Subdivision Roadway(Distant Thunder Road) WCR 10 NT ******************************* OFFICE USE ONLY: Road ADT Date Accidents Date Road ADT Date Accidents Date Drainage Requirement Culvert Size Length Special Conditions ❑ Installation Authorized ❑ Information Insufficient Reviewed By: Title: Distant Thunder P.U.D. Final Plat Application Statement of Compliance Applicant: John Zadel— Distant Thunder P.U.D. Planner: Jacqueline Hatch Legal Description: Portion of the S1/2 Section 10,TIN, R67W, Weld County Location: East of and adjacent to CR 19; 1 mile South of Hwy 52 This proposal is for a 81.25 +/- acre Planned Unit Development, which is, situate approximately East and adjacent to Weld County Road 19, 1/4 mile North of Weld County Road 10. This P.U.D.proposal will be a covenant-controlled development consisting of 9 single-family residential lots (zoned P.U.D.). The residential lots will average approximately 3.4 acres in size with a traditional wood framed house of one and two stories. The P.U.D. will provide approximately 48.65+acres of Open Space (No residences shall be allowed on the Open Space Lot) owned and maintained by the Homeowners Association. The Weld County Board of Commissioners granted a change of zone from A (Agricultural) Zone District to a PUD (Planned Unit Development) Zone District subject to conditions. Each condition has been fulfilled. A description of how the Final Plat meets each criterion accompanies the condition. Condition A: A sign with a graphical representation of the subdivision should be placed at the entrance to the subdivision. To address this concern, the applicant shall submit a set of sign standards as required by Section 27 -6-90.E.1 of the Weld County Code for review and approval. Distant Thunder P.U.D. will have a subdivision sign. The sign placement is within a landscape easement on the North side of the intersection of Distant Thunder PUD and WCR 19. The sign plan was submitted for review and approved by the Department of Public Works. Condition B: Weld County's "Right to Farm" as provided in Appendix 22-E of the Weld County Code, shall be indicated on the plat. In addition to providing the "Right to Farm" on all recorded plats, the Distant Thunder PUD Covenants include the clause under Article III3.15. Distant Thunder PUD Final Plat Statement October 12,2006 -1 - Condition C: The applicant shall address the requirements of the Department of Planning Services landscape referral received August 4, 2003. Evidence of such shall be provided to the Department of Planning Services. The requirements of the landscape referral have been addressed. The requirements asked for specific information regarding the cultivars of plant types, which have been listed. The seed method, rate and propagation of the seed mix were also requested and provided on the plan. Additional information pertaining to the construction of the PUD signage was also requested In response the signage plan was modified and detailed to address issues such as attachment of pre-cut lettering, construction of the internal core, footing depth, wall batter, reinforcement and material type and color. The referral requested detailed plans for a student bus- stop shelter and mail kiosk. Because the school district will not require a bus pick- up lane a bus shelter will not be built A mail kiosk will be placed along Distant Thunder Road. A mail kiosk will be purchased from the post office by the developer. The post office will help determine placement. The referral also requires culverts and driveway crossings at the swale between the Distant Thunder Road and the residential properties be shown graphically on the landscape plan. The swale is no longer incorporated into the landscape plan, however, the culverts are specified within the engineer's plan set The Final comment pertains to the Wetlands. These wetlands are unmapped and non jurisdictional and resulted from a broken watermain. The main has since been repaired and the "wetlands" are naturally drying up. The requirements of the Department of Planning Services stated in the landscape referral have been addressed. Condition D: The applicant shall address the requirements of the City of Dacono as outlined in the referral received August 22, 2003. Evidence of such shall be provided to the Department of Planning Services. The requirements of the City of Dacono have been met and addressed. These issues have been formalized in an agreement recorded March 15, 2004 at Reception No. 3161681 between applicant and the City Condition E: The applicant shall provide evidence of an attempt to obtain a signed and recorded agreement with Kerr-McGee Rocky Mountain Corporation. Evidence of such shall be provided to the Department of Planning Services. The applicant has succeeded in obtaining an agreement with Kerr-McGee. The Agreement was signed by both parties and recorded April 18, 2005 at Reception No. 3278280. Condition F: The applicant shall address the requirements and conditions of the Weld County Sheriffs Office as outlined in the referral received September 16, 2003. Written evidence of such shall be provided to the Department of Planning Services. The requirements of the Sheriffs Office have been addressed as indicated by Ken Poncelow. Distant Thunder PUD Final Plat Statement October 12,2006 -2- Description of On-site Uses: Lot use from the Covenants, Article III 3.1, "A lot may be used only for one single- family dwelling. The primary residential building must include as a part thereof a garage, or if a garage is not included as a part of the residence, then a separate garage structure shall have similar architectural design and exterior design and appearance consistent with that of the residence accommodated thereby. " And from Article III 3.2, "Size: The dwelling space of the residence, exclusive of the garage and open porches, shall contain a minimum of 1,800 square feet for one-story homes and 2,400 square feet for two story homes offinished non-basement living space. The maximum height of the residence and any accessory building is not to exceed thirty (30)feet. " Open space uses: Approximately 49 acres of Open Space will be designated with this P.U.D.for the benefit of the owners. The open space is intended to help maintain the natural integrity of the land. Each homeowner will have the opportunity to use the Open Space. The Home Owner's Association will maintain the Open Space. Additional uses and restrictions are listed in the Distant Thunder Covenants. Adherence to Development Guide: DEVELOPMENT GUIDE REQUIREMENTS Major Components of the Development Guide 6.3.1 Component One-Environmental Impacts Noise and Vibration-No noise or vibration is anticipated,other than normal occurrences,within in this development. The Homeowners Association shall have the ability to site and address(within their power) any complaints of noise or vibration within this P.U.D. Smoke,Dust and Odor-Reseeding shall take place after construction in order to limit blowing dust. Erosion control and dust control methods will be used during and after construction to limit blowing dust. No smoke or odors are anticipated being a problem within this development other than what is created due to agricultural activities. Heat,Light and Glare-We feel that these particular impacts are not applicable to this development. This development is of like development within the area. It is generally at the same elevation as the surrounding areas therefore it will not be on top of a hill to cause problems such as glare from windows or bright lights that can be seen for miles. Individual homes shall use standard illumination which will limit the extent of a possible lighting nuisance. Home illumination standards can be addressed through the restrictive covenants of the P.U.D. Visual/Aesthetic Impacts-This development will be compatible with surrounding development in that it will contain relatively the same densities and style of home and out buildings. Utility lines will be underground. Landscaped areas along with open space will give this development a rural atmosphere which will fit well with residential and agriculture activities in the area. We feel that this proposal will enhance the immediate area instead of creating negative visual or aesthetic impacts. Distant Thunder PUD Final Plat Statement October 12,2006 -3- Electrical Interference-This particular impact should not be a problem within this P.U.D. Typical household appliances are expected such as cordless phones,garage door openers and cellular phones. Water Pollution-Septic systems shall be installed per Health Department regulations,which will dismiss and/or minimize any ground water contamination. Waste Water Disposal-Each lot will contain an individual sewage disposal system as installed per Weld County Health Department regulations and/or specifications. Wetland Removal-This site has one small wetland area along the North boundary of proposed Lot 3. There is no plan in place to remove the wetland. Rather the applicant would like to leave the wetland as is. Due to the size of Lot 3,the wetland will not interfere with any of the proposed improvements for this site. Erosion and Sedimentation-Erosion control and reseeding methods will be used during and after construction. The restrictive covenants will address animal units per lot and the practice of grazing to minimize erosion problems as well as dust control. Excavating,Filling and Grading-Normal excavation shall occur during infrastructure installation and the construction of homes. Construction activities shall be in accordance with standard procedures as well as Weld County Public Works regulations. Drilling,Ditching and Dredging-These impacts do not apply to this development. Air Pollution -This should not be a factor for this development. Only residential development will occur, therefore pollution,which can be associated with heavy commercial,or industrial uses will not be present. Solid Waste-This impact does not apply to this development. Wildlife Removal-Currently,we are not proposing any type of wildlife relocation program. Certain wildlife will relocate on their own due to the development of this property. Much of the wildlife will stay or frequent the development due to the proposed acreage of the lots and the amount of open space to be retained. Exotic or endangered species are not present on the site. Natural Vegetation Removal-Minimal disturbance of the natural vegetation shall be enforced during construction. Areas that are disturbed shall be reseeded after construction is completed. Radiation/Radioactive Material-These impacts do not apply to this development. Drinking Water Source-Domestic water shall be supplied by Central Weld County Water District. Please see attached letter received from the Water District. Traffic Impacts-The low density proposed for this development should have minimal impact on the surrounding County and State road systems. Adequate County roads are adjacent and/or available to this development. Public Works, in a referral response received August 31,2001, indicated that the developer will not be required to submit a Traffic Impact Study. 6.3.2 Component Two-Service Provision Impacts Schools-This proposed development would be within the Weld County School District(RE-8). We feel that with the 9 lots proposed for this development,a minimal impact will occur regarding the school district. A referral was received from the school district and they had no conflicts with this development. Please see attached letter regarding school district impact fees and agreement. Distant Thunder PUD Final Plat Statement October 12,2006 -4- Law Enforcement-This P.U.D.will be served by the Weld County Sheriffs Department for protection and safety. We are assuming that no additional patrols will be needed for the additional 9 lots proposed. Fire Protection-The Ft. Lupton Fire Department will serve this development. It is our intent to meet the Fire District's needs for fire hydrant placement,and Residential Sprinkler Plans. Please see the attached letter regarding fire hydrant placement. Construction shall comply with all codes as adopted by the Weld County Board of Commissioners. Ambulance-Ambulance service will be provided by Weld County Ambulance. The Ft.Lupton Fire Department as well as Air Life of Greeley will provide additional emergency service. Again,we feel that with the additional 9 lots proposed,minor impact shall occur regarding Ambulance service. Law Enforcement,Fire Protection and Ambulance services are based on an as needed basis. Transportation-Weld County Road 19 is adequate in classification,width and structural capacity to handle the minimal traffic impact as proposed with this development.Public Works has indicated that the existing roads can support the expected increase in traffic. Traffic Impact Analysis-Public Works,in a referral response received August 31,2001, indicated that the developer would not be required to submit a Traffic Impact Study. Storm Drainage. See attached Drainage Plan and Study.The natural drainage for this site generally flows east to west to the existing barrow ditch along Weld County Road 19. The terrain is relatively flat consisting of 0%to 3%slopes. The steeper terrain takes place mid way on the property. New drainage facilities will consist of minor rerouting of immediate historical drainage patterns utilizing barrow ditches along with installation of culverts under the proposed road and/or driveways as required. Due to the soil types,area of open space and the size of the proposed lots, it is not believed to impact the existing drainage significantly. Slight increase in runoff is expected due to channelization and increased imperviousness due to new construction. However,the increase would appear to be insignificant. We recommend storm water continue to flow overland to the west utilizing new and existing barrow ditches. Due to the size of the lots,area of the open space,and the expected slight increase in storm water runoff,we do not anticipate the need for additional detention facilities. Standard barrow ditches along the proposed road should be adequate to carry all'runoff. All structures should be raised above surrounding grade a minimum of two(2)feet to prevent flooding due to irrigation and storm water. Utility Provisions. Please see attached letters from Public Service(Electric)and Central Weld County Water District(Domestic Water). Quest(Telephone)is in the process of supplying a will serve letter and contract. We will submit their letter as we receive it. Water Provisions. Please see attached letter from Central Weld County Water District.Central Weld County Water District shall provide public water for this development. There is an existing water main within Weld County Road 19. This development will be required to tie into this water main and extend it into the subject property to service all lots. Each lot shall have an individual tap. Sewage Disposal Provisions. The Health Department has indicated that an individual on lot septic system will be adequate for the type of use and size of the proposed development. The nine(9)residential lots will install engineered individual on lot septic systems per Weld County Health Department regulations and/or specifications. 6.3.2 Component Three -Landscaping Elements Please see attached Landscape Plan. The open space proposed for this development will be re-seeded into native grasses in the attempt to preserve water,yet give the development a mature agricultural and natural look. Evergreen and Ash trees exist within the open space to the South,not only for esthetic purposes but also as a buffer or natural screening between this development and the uses to the South. We are proposing Distant Thunder PUD Final Plat Statement October 12,2006 -5- an entrance sign for this development. Vegetation will be planted at the entrance of the subdivision for esthetic purposes. No treatment for the perimeter is proposed with this development other than what exists or is shown on the Landscape Plan. Landscaping proposed for this development will be virtually maintenance free. Native grasses will be used for Open Space ground cover which will require no watering other than Mother Nature. Trees will be used which also require little to no additional watering once the tree has been established. As mentioned previously,numerous evergreen and ash trees exist along the South boundary,which are established and require no additional watering. The developer/landowner will be responsible for the care of the native grasses and trees until such time the Homeowner's Association is in place and can assume the responsibilities of the care and maintenance. Please see the attached improvements agreement,which contains the cost and planting schedule for said landscaping elements. 6.3.4 Component Four-Site Design Please revert back to the beginning of this narrative that identifies consistencies and compatibility's as it relates to the Comprehensive Plan and the existing uses surrounding this development. This development does not fall within an Overlay District as identified by maps officially adopted by Weld County. 6.3.5 Component Five-Common Open Space Usage Approximately 47.6 acres will be provided for private open space for the use of the inhabitants of this development. This area will be private and not available for public use but should be viewed as open space provided to the public to ensure continued agricultural activities and enhance visual impacts of the development. The open space will be owned and maintained by a Homeowner's Association that will be established before any lots are sold. 6.3.6 Component Six-Signage We are proposing an entrance sign for this development. Please see attached Landscape Plan for location and size. A stop sign along with a street name sign will be erected at the entrance of the P.U.D. 6.3.7 Component Seven - M.U.D. Impact This proposed P.U.D. does not apply to an M.U.D. 6.3.8 Component Eight-Intergovernmental Agreement Impacts The PUD is located within the Frederick, Firestone, and Dacono IGA area. A signed agreement between the applicant and the City of Dacono was recorded March 15,2004 at Reception No. 3161681 addresses the concerns of Dacono and this proposed PUD. Distant Thunder PUD Final Plat Statement October 12,2006 -6- Conclusion: Through out the review process the applicant has tried to accommodate all concerns of the Department of Planning and the Referral Agencies. Distant Thunder P.U.D. strives to meet the requirements as set further by Weld County and does so greatly. There is every intention to meet with and address the concerns of those who have expressed interest in this P.U.D. In addition each of the requirements from the Change of Zone Resolution has been met. The uses of Distant Thunder P.U.D. have consistent throughout the process and are compatible with the surrounding area. Care has been taken to recognize and follow design guidelines in multiple components of planned land use and construction. It is our strong belief that the requirements of the Change of Zone and the P.U.D. process in general have been met at or above Weld County Standards. As always, if you should have any questions, concerns or desire additional information regarding this Planned Unit Development Final Plat submittal, please feel free to call me at (970) 669-0516. Sincerely, INTERMILL LAND SURVEYING, INC. Jarvis Fosdick Project Manager Intermill Land Surveying, Inc. 1301 North Cleveland Ave. Loveland, CO 80537 Phone: (970)669-0516 Fax: (970) 635-9775 Intermill@qwest.net Distant Thunder PUD Final Plat Statement October 12,2006 -7- Distant Thunder P.U.D. Estimated Development Costs November 8, 2006 The following is the estimated costs for the development of Distant Thunder P.U.D. 1. Lot grading, Street grading and street preparation $ 4,960.00 2. Street paving as per specifications including base $38,440.00 3. Water main line installation including services $ 6,300.00 4. Fire hydrants (2) including installation $ 7,000.00 5. Surveying and lot staking lump sum $ 2,500.00 6. Street signs and stop sign including installation $ 250.00 7. Landscaping and reseeding lump sum $ 2,500.00 8. Road culvert including installation $ 1,500.00 9. Telephone conduit installation $4,500.00 10. Electrical transformers and cabling $ 5,400.00 11. Engineering and supervision costs $ 2,500.00 Total estimated costs $75,850.00 Please see attached proposed method of financing of the construction costs Distant Thunder P.U.D. Functional Roadway Classification Applicant: John Zadel— Distant Thunder P.U.D. Planner: Chris Gathman Legal Description: Portion of the S1/2 Section 10,T1N, R67W, Weld County Location: East of and adjacent to CR 19; 1 mile South of Hwy 52 "One copy of evidence from the appropriate jurisdiction stating that the street and/or highway facilities providing access to the property are adequate in functional classification, width and structural capacity to meet the traffic requirements of the uses of the proposed zone district. " • Adequate County roads are adjacent and/or available to this development. Public Works, in a referral response received August 31, 2001, indicated that the developer will not be required to submit a Traffic Impact Study. • Weld County Road 19 is adequate in classification, width and structural capacity to handle the minimal traffic impact as proposed with this development. Public Works has indicated that the existing roads can support the expected increase in traffic. See referral received by Planning Services August 11, 2003. • Item 2.e of the Corrected Resolution of the Grant of Change of Zone #600 finds that"Street or highway facilities providing access to the property are adequate in functional classification, width and structural capacity to meet the traffic requirements of the uses of the proposed PUD Zone District." • 45-feet of additional right of way has been requested by the City of Dacono and is shown for dedication on the final plat. Roadway Functional Classification July 28,2006 Page 1 of 1 Distant Thunder, P.U.D. Construction Schedule November 8,2006 The proposed construction schedule for Distant Thunder,P.U.D. and the stages for the development are as follows: 1. February,2007- Survey staking for lot grading 2. February,2007—Lot grading as may be necessary 3. February,2007-Survey staking for the street grading including cut and fill 4. March,2007—Installation of the water main,water services and fire hydrants. 5. March,2007—Installation of the road culvert 6. April,2007—Installation of necessary sleeving under the road way for electrical and telephone cabling 7. April,2007—Road sub grade preparation, including grade staking, compaction and grading of the sub grade to plus or minus .10 inch 8. May,2007—Paving of the inter road and cul-de-sac as per specifications 9. May, 2007—Installing the gravel shoulders on the road way 10. June,2007—Installing street signage as required 11.June,2007—Installing subdivision sign monument 12.June,2007—Installing the landscaping and reseeding as per the plan 13. July, 2008—Installing the Post Office mail box kiosk 14. July,2007—Final clean up of the subdivision Construction time frame to start approximately February,2007 and completion of the project in July of 2007 August 9, 2006 Attn: Weld County Department of Planning Services RE: Statement of method of financing Distant Thunder P.U.D. development To Whom It May Concern: The financing of the development construction for Distant Thunder P.U.D. will be with my personal funds. Sincerely, Owner(s) JZM, LLC: dif ohm W. el as President Report Date: 11/09/2006 10:55AM WELD COUNTY TREASURER Page: 1 CERTIFICATE OF TAXES DUE CERT#:21376 SCHEDULE NO: R8613300 ORDER NO: S0161957 ASSESSED TO: VENDOR NO: 9 JZM LLC SECURITY TITLE OF GREELEY 4200 COUNTY RD 19 3690 W 10TH ST, 2ND FLOOR FORT LUPTON, CO 80621 GREELEY CO 80634 LEGAL DESCRIPTION: S2 10-1-67 EXC BEG W4 COR SEC S70' N89D46'E 2566.48'N0D06'W 65'TH W TO BEG ALSO EXC 52SW4 (3.04R3D) SITUS:WELD PARCEL: 146910000012 SITUS ADD: WELD TAX YEAR CHARGE TAX AMOUNT INTEREST FEES PAID TOTAL DUE 2005 TAX 213.94 0.00 0.00 213.94 0.00 TOTAL TAXES 0.00 GRAND TOTAL DUE GOOD THROUGH 11/09/2006 0.00 ORIGINAL TAX BILLING FOR 2005 TAX DISTRICT 2234- Authority Mill Levy Amount Values Actual Assessed WELD COUNTY 17.900* 68.55 AGRICULTURAL 13,176 3,830 SCHOOL DIST RE8 18.399 70.47 ----_ NCW WATER 1.000 3.83 TOTAL 13,176 3,830 CWC WATER 0.000 0.00 FORT LUPTON FIRE 8.922 34.17 AIMS JUNIOR COL 6.357 24.35 WELD LIBRARY 3.281 12.57 TAXES FOR 2005 55.859` 213.94 Credit Levy FEE FOR THIS CERTIFICATE 10.00 ALL TAX LIEN SALE AMOUNTS ARE SUBJECT TO CHANGE DUE TO ENDORSEMENT OF CURRENT TAXES BY THE LIENHOLDER OR TO ADVERTISING AND DISTRAINT WARRANT FEES. CHANGES MAY OCCUR AND THE TREASURER'S OFFICE WILL NEED TO BE CONTACTED PRIOR TO REMITTANCE AFTER THE FOLLOWING DATES: PERSONAL PROPERTY AND MOBILE HOMES-AUGUST 1, ^ REAL PROPERTY-AUGUST 1. TAX LIEN SALE REDEMPTION AMOUNTS MUST BE PAID BY CASH OR CASHIERS CHECK. SPECIAL TAXING DISTRICTS AND THE BOUNDARIES OF SUCH DISTRICTS MAY BE ON FILE WITH THE BOARD OF COUNTY COMMISSIONERS,THE COUNTY CLERK,OR THE COUNTY ASSESSOR. This certificate does not include land or improvements assessed under a separate account number,personal property taxes, transfer tax or misc.tax collected on behalf of other entities,special or local improvement district assessments or mobile homes,unless specifically mentioned. I,the undersigned,do hereby certify that the entire amount of taxes due upon the above described parcels of real property and all outstanding sales for unpaid taxes as shown by the records in my office from which the same may still be redeemed with the amount required for redemption are as noted herein.In witness whereof,I have hereunto set my hand and seal this 09th day of November,2006. TREASURER,WELD, DONALD D. MUELLER,BY: P.O. l ,CO /l5 lUL— Greeley, O 80632 (970)353-3845 ext.3290 �' DISTANT THUNDER DESIGN GUIDELINES Distant Thunder P.U.D.Association is the name of the homeowner association. Distant Thunder P.U.D. is a quality development which will consist of single family residential community. The Overall appearance of Distant Thunder is intended to be neat, uncluttered, and spacious with a country feel. The goal of architectural standards is to establish a broad framework within which quality of design will be ensured, while giving full range to the creative abilities of the architect. ALL CONSTRUCTION THAT IS UNDERTAKEN ON THE PROPERTY, WHETHER NEW BUILDINGS, SITE CONSTRUCTION, OR CHANGES TO EXISTING FACILITIES SHALL BE SUBJECT TO REVIEW AND APPROVAL UNDER THESE STANDARDS. SCOPE OF DESIGN REVIEW No structure, including but not limited to residences, outbuildings, barns, storage sheds, dog houses, stables,paddocks, antennae, flag poles, fences, walls,house numbers, mail boxes, exterior lighting, swimming pools, tennis courts, spas, irrigation systems,jungle gyms,tree houses, or other improvements("Improvements) shall be constructed or maintained upon any Lot,nor shall any alteration, nor shall any replat of any Lots,nor shall any repainting to the exterior of a structure be made,nor shall any landscaping be performed unless complete plans and specifications therefore, showing the exterior design, height, building material,and color scheme shall have been submitted to and approved in writing by the Design Review Committee (DRC). DESIGN REVIEW COMMITTEE Homes which are to be built in Distant Thunder community which has architectural guidelines and covenants which are at least as restrictive as the association will be required to submit plans to the Declarant and the Distant Thunder Homeowners Association Design Review Committee (DRC).The DRC functions under the Distant Thunder P.U.D. Association Board (Board). The DRC will be composed of three people. The Committee shall exercise its best judgment to see that all Improvements, construction, landscaping, and alterations of lands and structures thereon within Distant Thunder P.U.D. conform to and harmonize with existing surroundings. The Committee shall not he liable in damage to any person submitting a request for approval or to any Owner within Distant Thunder P 1 F.D by reason of any action. failure to act. approval, or disapproval with regard to such request 1pproyals by the Committee are related to the aesthetics and no pans shall rely upon such approvals as certifying structural integrity, safety, engineering soil conditions, or absence of natural hazards and the Committee shall have no liability for any defects in the structural integrity, engineering, or soils conditions or from effects of natural hazards. Regardless of any approval granted by the Committee, if any Improvements are made in Distant Thunder P.U.D. which does not comply in every respect with the Architectural Guidelines,then the Committee may require removal of the nonconforming Improvements. If the nonconforming Improvements are not timely removed as required by the Committee, then the Committee or the Board (or their agents)may enter the Property and/or Lot and remove the nonconforming Improvements and the Board will assess the Owner for any associated costs. If any of the above listed activities are commenced without the approval of the Committee as provided herein, the Owner also shall be subject to a fine of$200.00 per day for every day the violation exists,which fine shall be paid to,and the collection of which as a penalty assessment, shall be enforced by the Board. If the Committee denies, imposes conditions on, or refuses approval of a proposed Improvement, the Applicant may appeal to the Board by giving written notice, certified,return receipt requested, of such appeal to the Board. The Board shall hear the appeal within forty-five (45) days of receipt of notice. Other Conditions Approval of plans by the Distant Thunder shall not be deemed to constitute compliance with the requirements of any local, state, or federal building, zoning, safety, health, or fire codes. It shall be the responsibility of the owner or his duly authorized representative to assure such compliance. Nor shall the Distant Thunder approval waive any requirements or restrictions contained in these guidelines, unless such waiver or variance is specifically requested by the owner, approved by the DRC, and may properly be granted by the Distant Thunder and approved by regulating authority. The covenants shall remain in force as the legal restrictions governing all construction. Approval of plans is valid for twelve (12)months. Construction must begin within this period. If not,plans must be resubmitted and reviewed again without further submittal fees. Submittal of a different dwelling on the same lot requires another review fee. The committee reserves the right to waive or vary any of the procedures or standards set forth all natural surface drainage, whether off site or on site, shall always be permitted to freely pass through all Lots as required in order to reach its natural destination. Grading and Drainage All improvements shall be designed to minimize grading. When necessary, cut and fill slopes shall be kept to a maximum slope of 3:1. Steeper slopes will be permitted only when approved by Owner's soils engineer when excessive disturbance would otherwise result. Grades shall he "rolled back" into existing slopes with no sharp contrasts No grading shall extend he ond existing lot lines. R here disruption or re-alignment of existing drainage courses must occur. reconstruction shall be done in a naturalized manner. allow,Mg eater to percolate and tlovs in a non-destructik e course. Cult erts or other drainage structures shall he detailed. Drainage and erosion shall not negatively affect neighboring tots; if such condition exists, Owner will be required to correct. 2 Building Location, Setbacks, and Driveways r- All construction for the main residence shall be built within the building envelope established for that particular site.Building envelopes are indicated on the pot plan. All construction on any site shall be built within the setbacks established by the filed plat. OUTBUILDINGS:At a minimum: side setback-25',rear-25' Access to each residence shall be via private driveway or public road.Driveway shall be sited to minimize earthwork and shall not exceed 5%slopes, except where short pitches up to 10%will lessen site impact and improve access. Finished driveways shall be concrete, asphalt, or approved masonry pavers to a minimum width of 12 feet. Driveway shall extend from the property line to the edge of public road paving. Retaining Walls Retaining walls shall be a maximum of 4'in height(unless a variance is approved)and shall be constructed of natural stone, unit masonry,or timbers. Heating and Cooling Units and Solar Panels Heating and cooling units shall not be installed nor allowed to remain on the roof of any building or structure. Solar panels are not allowed on roofs. Use of any other solar panels must be approved by Association. Floor plans A. "Floor Plans" at a scale of 1/8" =I'D or larger. The floor plans shall show exterior dimensioning, including the size and location of all exterior openings. B. "Roof Plan(s)" at the same scale as the floor plans. C. All "Exterior Elevations" at the same scale as floor plans and indicating both existing and final grades, finish floor elevations and roof elevations. Exterior materials shall be shown on the elevations. Exterior colors may be shown on the elevations or on separate schedule at the owner's option. Although the initial builder is not required to submit landscaping plans if the builder is doing no landscaping, any retaining walls, barras, or other such planned improvements or landscaping which the builder is providing must be shown. E. Fill out and submit a Design Review Submission form. 3 F• Payment must be included with Submittals or Submittal will not be reviewed. ARCHITECTURAL AND SITE STANDARDS Sight Distance at Intersections No structure, fence, wall, hedge, or shrub planting which obstructs sight lines at elevations between two (2)and six 6) feet above the roadways shall be placed or permitted to remain on any corner Lot within the triangular area formed by the street property lines and a line connecting them at points twenty-five (25) feet from the intersections of the street lines, or in the case of a Rounded property corner, from the intersection of the street property lines extended. No tree shall be planted within such distances of intersections unless the foliage line is maintained at sufficient height to prevent obstruction of sight lines. Erosion Control and Surface Drainage During all site disruptions, techniques for controlling erosion within the site and onto other sites shall be used. Revegitation shall begin as quickly as possible after soil disruption, and shall be well established pursuant to landscaping requirements. The Owner shall implement erosion control measures to stabilize the Lot during construction and prior to landscaping to protect the Lot from erosion and to prevent erosion of the Lot and runoff from the Lot from flowing onto the streets, adjoining Lots, and public or common areas. The Owner shall implement and maintain erosion control measures following construction and landscaping if necessary to protect the Lot from erosion and to prevent erosion of the Lot and runoff from flowing onto the streets,adjoining Lots, and public or common areas.Herein at its discretion, for good cause shown. Neither the DRC nor its assigns shall be liable in damages to anyone submitting plans to them for approval,or to any owner by reason of mistake in judgment,negligence or nonfeasance arising out of; or in connection with, the approval or disapproval or failure to approve any plans or specifications. Every owner or other person who submits plans to the DRC for approval agrees, by submission of such plans and/or specifications,that he will not bring suit against the DRC to recover damages. PROCEDURE After preparing detailed plans (See Submittal Requirements), the owner shall submit two sets of site plans, two sets of building plans. two Design Review Submission Forms. and the appropriate fee Plan, ,hall he hand delivered to: I/N,1 (,lohn W. Lade)I at 4200 Weld Counts Road 19. Ft l Upton. CO 4 The DRC will review the plans submitted and will provide a written response no later than 2 1 days after the submittal If major compliance issues exist, the owner will be asked to resubmit the plans following revisions. The initial fee will cover the first submission review and one (I) resubmission review. If non-compliance still exists, a re-submittal fee will be charged per fee schedules. SUBMITTAL REQUIREMENTS The first submittal for each different model a builder is building must include all of the following; however, subsequent submittals for the same model may be limited to the Site Plan, Color Selection,and Identification of the model being proposed, with plans only being resubmitted if there are significant changes to the exterior such as, but not limited to, the addition of porches, dormers, etc.) All plans shall be of the same sheet size and shall include the following: A "site plan" of existing and proposed Improvements, indicating existing and new topography with a two(2)foot contour interval, existing trees, and drainage ways; all legal restrictions including rights-of-way, easements, property ones and required setbacks. If there exist or in- progress structures on adjacent lots, these should be shown. The site plan shall show proposed building locations(s), driveways (including surfacing material),parking areas,proposed grading and drainage, erosion control method, outbuildings and fencing. Finish grade elevations at the corners of the buildings as well as elevation of the finished floor(s)shall also show on the site plan. The scale of the site plan shall be 1"=20 feet or larger. 5 Architectural Design No mandatory architectural "style" is required for this development. However, the limitations following are intended to encourage the design of residences harmonious with the environment, suggesting designs which incorporate materials, colors and textures which generally blend with the landscape and develop proportions,mass and details which promote the semi-rural atmosphere. The structures should be visually appealing; uninteresting ones will be disallowed. A. Size of Homes. The dwelling space, exclusive of the garage and open porches, shall contain a minimum of 2,000 square feet for a one story and 2,800 feet for a two story or Multilevel homes of finished non-basement living space. B. Home Orientation. Homes should be constructed so that the front faces generally toward the front lot line and is set back in a manner consistent with the Architectural Guidelines. Exceptions for the orientation of the unit may be granted by the Committee if the exterior appearance of sides or rear of the house facing the front lot line is equal to or better in appearance than the front of the house. C. Pre-constructed Homes: No homes of a pre-constructed nature shall be allowed D. Building Height.No building solar device shall exceed a height of 38 feet measured from the average finished grade adjacent to the foundation. Chimneys, flues, roof vents, etc., need not be included in this measurement. E. Roofs. Roofs and roof lines must be interesting to the eye. Roof pitch shall not be less than 5 inches in 12 inches. Steeper pitches will be encouraged.Acceptable roofing materials include, but are not limited to: concrete tile, quarry tile and certain composition shingles, but definitely excluding 3-tab and t-lock. Certain architectural metal roofs will be considered. F. Exterior Materials. The exterior materials on all residence must be aluminum, masonry, stone stucco, or material with a stucco-like appearance. The residence must be at least fifty percent 50%masonry brick stucco or stone. Any vinyl sophists or trim will be allowed. G. Color. Exterior finishes shall be subdued colors, generally in earth tones:Brighter accents used judiciously will be considered if kept under 10% of the exterior wall surface. H. Foundation Walls. Foundation walls shall not be exposed between finish grade and the bottom of the exterior finish material for more than 12 inches. This requirement applies to l+aIkout basement conditions. 6 Accessory. Utility and Miscellaneous Structures Rules and Regulations. Detached garages, barns, gazebos, greenhouses, storage, or outbuildings shall match the main residence in color,style,and materials. All ancillary buildings must be on a poured foundation and are allowed only if site conditions and location are such that they do not become offensive or objectionable to neighboring lots. No temporary and/or portable buildings will be allowed. Solar equipment shall be incorporated into a structure and be architecturally compatible with the residence. Rooftop mounted equipment is not allowed. A Types. The following Outbuildings are permitted on the Lots: well-maintained storage sheds,and detached garages not directly attached to the Living Unit which it serves. B. Number. A maximum of two Outbuildings may be constructed upon each Lot. Location of Outbuildings allowed will be based on plot plan drawings. . C. Size. In no event shall the ground floor area of an Outbuilding exceed the ground floor area of the Living Unit on the Lot. D. Height. The height of any outbuilding should not exceed 14'from average grade to eave line. Design should be such that it blends into the Lot. Use of existing topography may be required to create the least imposing outbuilding possible. E. Location. The outbuilding should be placed on the rear portion of the Lot,which is that portion of the Lot between the rear Lot line and the nearest line or point of the Living Unit, shall be set back at least twenty-five(25)feet from the side and rear Lot lines. F. Design. The outbuildings must be of design,materials, and style related to and compatible with the design, materials,and style of the Living Unit. The exterior of the structure shall match the main residence in color and style, including roof pitch.All outbuildings shall be placed upon and securely anchored to a permanent concrete or masonry foundation. G. Submittal of Plans and Specifications. Prior to construction of the outbuilding, Owner shall submit to the Committee for its approval the plans and specifications for any outbuilding. Fences and Screening The intent of the community is to encourage as little use of fencing and screening as possible in order to keep an open and undivided landscape. The use of fences for animal retention and/or screening will he permitted when used in a judicious and inoffensive manner. r 7 Perimeter fencing used along street frontages or between property lines shall be 3-rail white vinyl or PVC to match project fencing used along frontages. Non-perimeter fencing used to retain animals shall be wood or plastic posts and rails with one to five horizontal rails to a maximum of six(6)feet high. Clear space between rails shall not be less than two times the rail width. Fences may include approved wire netting of 2x4, 4x4,4x6, or 6x6 pattern attached permanently to posts and rails.Dog runs should be mesh only with wood posts with a wood top rail, such area to be a maximum of 300 square feet. Privacy fences shall not exceed 6'in height and shall enclose a maximum area of no more than 2/3 the area of the footprint of the house, including attached garage,to a maximum of 5,000. Fencing materials shall be compatible with materials in the main residence.Acceptable materials are wood, stucco, brick, or stone. Privacy fences shall be attached to, or in very close proximity, to the main residence between the rear lot line and the nearest point or line of the residence. Screening fences are restricted to the rear portion of the lot and shall be attached to an outbuilding if one is used. CONSTRUCTION PERIOD REGULATIONS In the interest of all Owners and contractors,the following regulations shall be enforced during the construction period. These regulations shall be a part of the construction document specifications for each residence. The DRC may require the contractor to provide a plan of construction limits prior to start of construction, to include snow fencing and barricades. The plan shall include size and location of construction material storage areas,limits of excavation,access areas,parking,chemical toilet,dumpster(s),fire extinguisher, utility trenching and construction sign. Drainage swales and driveway culverts for each Lot shall be maintained by the Owner of said Lot. Builders must install a culvert prior to beginning any construction on a Lot and must ensure construction traffic uses the culvert and does not drive across the drainage ditch. Owner must maintain the ditch in front of Owner's lot and is responsible for ensuring its proper functioning. All temporary structures such as construction trailers or sheds shall be removed immediately upon completion of construction. Daily cleanup of the construction site is mandatory. All trash and debris shall be stored in a fenced trash disposal area and shall be removed when fence is filled. 8 ,-� A plan for erosion control measures to be implemented for lot stabilization during construction and prior to landscaping,and the schedule for installation of such erosion control measures,must be submitted and approved prior to commencement of construction. No construction may begin before 6:00 A.M.and no construction may continue past 8:00 P.M.Monday through Friday and 6:00 P.M.Saturday and legal holidays.On Sunday,there must be no exterior construction.Toilet facilities must be provided for all sites under construction. No person may reside on a Lot in a vehicle or other structure(permanent or temporary)while a home is under construction.Homes may be occupied only after there is a certificate of occupancy which has been issued by Weld County. LANDSCAPING Revegitation of all areas disturbed by construction must be completed,along with all other required landscaping. Irrigation systems,if needed,shall efficiently distribute water directly to the plants which require it.Temporary, drip,or other low-water consumption irrigation systems are encouraged. Each site,in addition to Revegitation of all disturbed areas,shall be required to introduce new planting as follows: 1. a minimum of 12 trees per acre 2. a minimum of 6 shrubs per lot 3. minimum size requirements: large deciduous 2"(Inch T Ornamental 1'to Vi-cal Large evergreen 6 feet tall Small evergreen 4 feet tall Shrubs 5 gal container See Attachment"C"for suggested planting species(drought tolerant species are strongly recommended). Landscaping Plan. Prior to commencement of landscaping,Owner shall submit a landscaping plan through the homeowners association(See"Procedure"on Page 3),and must include the Submitted Fee(Attachment A) which shall include the following: Preservation ofAbsorption Fields.All active absorption field areas or leach field areas must be protected. No permanent landscaping,structures,dirt mounds,animal husbandry activities or other activities that would interfere with the construction,or maintenance or functions of the field shall be permitted. Tree, Ground Cover and Shrubbery Plan. A plan for preparing the Lot for and planting trees and lawn.grass_ or other appropriate ground coyer. including natural covers. and appropriate shrubherx h r the entire Lot. including the area up to the street pavement or sidewalk: however,the manicured. intensely irrigated lawn area shall he limited to tine thousand (5.0001 square feet [he landscape plan shall provide for minimum of twelve t 12)trees per acre of I ot area. Deciduous trees shall have a minimum old 2'-i two-inch)trunk 9 Diameter(measured by caliper)and evergreens shall be not less than four feet(4') in height and in a variety as further described. Tree planting may be phased, but at least half of the trees shall be included in the initial landscaping installation. The Board shall have the right to amend the landscaping standards. Landscaping Submitted_A "landscaping plan"at a scale of I'=30 feet or larger must be submitted containing the following: I. Scale-written and graphic, and North arrow 2. Existing plant material on the site 3. Planting to be removed or relocated 4. Existing and proposed structures and paving 5. Berms,walls, fences or any other buffering device 6. Title block with name of project,name of person preparing plan, and date prepared 7. A written or graphic statement describing type of irrigation system proposed and areas to be covered 8. Plant schedule showing number and location of plants of each species,plant name, size and condition(B&B or container) 9. Any other proposed improvements visible to adjacent lot owners or the public Completion of Landscaping_For the purposes of this section,a "growing season" shall mean and refer to the period of May 1 through August 31 of each year. As soon as practicable after the certificate of occupancy is issued for a Living Unit on a Lot,the Owner shall have substantially completed the landscaping of said Lot. In the event a certificate of occupancy is issued during a growing season, landscaping must be completed prior to the end of the next full growing season. In the event a certificate of occupancy is issued between September 1 and April 30, landscaping must be completed prior to the end of the next immediate growing season Protection Prior to Landscaping. In the event landscaping is not completed during the first growing season after the certificate of occupancy is issued, all areas of implanted soil shall be protected from erosion by straw mulch and seed, hay bales and/or erosion control matting as necessary to prevent erosion,runoff,and loss of bare ground areas. Repair of Landscaping_In the event of death or destruction of any landscaping, including trees, shrubbery or sod,Owner shall be required to replace such landscaping within sixty(60)days after such death or destruction;or if such death or destruction occurs March 1 through June 31, then such replacement must occur at the beginning of the next growing season. Enforcement Should any Owner fail to comply with the landscaping requirements,the Committee shall have the power to require compliance or alternatively may complete the landscaping and require the Owner to pay the costs for such completion,such costs to he assessed against that Lot. 10 E: irz1.. DISTANT THUNDER COVENANTS ARTICLE I-PREAMBLE Declarant is the owner of that certain real property situate in Weld County, Colorado, described on Exhibit "A" hereof (the property). The Property has been platted as DISTANT THUNDER P.U.D. simultaneously with this declaration. Declarant desires to develop the Property for residential purposes. Declarant deems it desirable to subject the Property to the covenants, conditions and restrictions set forth in this Declaration in order to preserve the values of the individual lots and to enhance the quality of life for all owners of such lots. Declarant therefore declares that all of the Property is and shall be held, transferred, sold, conveyed and occupied subject to the terms, restrictions, limitations, conditions, covenants, obligations, hens, right of ways, and easements which are set fort in the Declaration, all of which shall run with the Property and shall inure to the benefit of, and be binding upon, all parties having and right, title, or interest in the Property or and portion thereof, and such person's heirs, grantees, legal representatives, successors and assigns. Any restrictions or regulations not addressed specifically shall be in accordance with Weld County Estate Zoning, i.e., number and type of animals allowed on each lot, home occupations, etc. "A" and owned by the "Owner", with the exception of any "Common Area". No Lot shall hereafter be subdivided except by Declarant. ARTICLE 2-DEFINITIONS 2.1 General: The words and terms defined in this Article shall have the meanings herein set forth unless the context clearly indicates otherwise. 22 Association: Shall mean and refer to DISTANT THUNDER P.U.D. Homeowner's Association, a Colorado Nonprofit Corporation established pursuant to Article IV of this Declaration. The members of the Association shall be Lot Owners as defined herein. 2.3 Common Areas: Shall refer to all real Property or interests therein owned by the Association and easements and rights of way for the common use and enjoyment of the Owners, together with and including, but not by way of limitation, the road Distant Thunder Road, utilities, and utility easements. 2.4 Declarant: Shall mean JZM, LLC., owner of the Property, their successors and assigns. 2.5 Declarant responsibilities: Shall refer to the road constructed pursuant to specifications required by Weld County known as Distant Thunder Road. Declarant shall install a gravel road according to the specifications of Weld County The Association shall maintain, repair, and replace the road after the Developer has installed such facility. Declarant shall plant non-weed natural vegetation in the right of way adjacent to Distant Thunder Road. The Association shall maintain and replace non-weed vegetation after the Declarant has planted such vegetation and said Association has assumed responsibilities. 1 2.6 Lot: Shall mean and refer to any parcel or plot of land located within the exterior boundaries of the Property described on Exhibit"A"and owned by the"Owner", with the exception of any"Common Area". No Lot shall hereafter be subdivided except by Declarant. 2.7 Road and Utility Easements: Shall mean and refer to the road Distant Thunder Road and all utility easements presently existing on the Property or subsequently constructed by the Declarant on the tracts or parcels of the property. "Roads" and"Utility Easements" shall not include private driveways or utility extensions constructed by individual Owners to provide access and utilities to dwellings or other structures located upon such Owner's lot of the Property. 2.8 Single Family Dwelling: Shall mean an independent structure designed and occupies as a residence for a single family. 2.9 75% Control period means a length of time seven (7) years after initial recording of the Declaration in Weld County, Colorado. However, the 76% Control Period shall expire earlier, upon the first to occur of the following events if any of the following occur within the time period that is specified in the first sentence of this section: a. sixty (60) days after conveyance of seventy-five percent (7%0 of the Lots That May Be Included to Owners other than a Declarant or a builder; (b) two (2) years after that last conveyance of a Lot by the Declarant or a builder I n the ordinary coarse of business. 2.10 Subdivision: Shall mean and refer to DISTANT THUNDER P.U.D. 2.11 Voting Rights: Each Member shall be entitled, for each Lot owned, to one vote on each matter that comes to a vote of the Association; provided that the right to cast such vote is subject to this Declaration, the Articles of Incorporation and Bylaws of the Association. No votes allocated to a Lot owned by the Association may be cast. The maximum number of votes which may be cast in connection with any matter shall be equal to the denominator of the Allocated Interests at the time the vote is taken. 2.12 Design Guidelines: See Attached Distant Thunder Guidelines for building. Other terms may be defined in specific provisions contained in the Declaration and shall have the meaning assigned by each such definition. ARTICLE 3. ASSOCIATION Section 3.1. Authority of Board of Directors. Except as provided in this Declaration, the Articles of Incorporation, or the Bylaws of the Association, the Board of Directors may act in all instances on behalf of the Association. Section 3.2. Election of Part of the Executive Board during the Period of Master Declarant Control Not later than sixty (60) days after conveyance of twenty-five percent (25%) of the Lots that May Be Included to Owners other than a Declarant or a Builder, at least one (1) member and not less than twenty-five percent (25%) of the members of the Board of Directors must be elected by Members other than the Declarant or a Builder, provided that the Declarant 2 reserves the right to appoint a majority of the Board. Not later than sixty (60) days after conveyance of fifty percent (50%) of the Lots that May Be Included to Owners other than the Declarant or a Builder, not less than thirty-three and one-third percent (33 1/3%) of the directors must be elected by Members other than the Declarant or a Builder, provided that the Declarant reserves the right to appoint a majority of the Board. Section 3.3. Authority of Declarant During 75% Control Period. Except as otherwise provided in this Article, during the 75% Control Period, the Declarant or Persons appointed by the Declarant may appoint all officers and Directors, and may remove all officers and Directors which have been appointed by the Declarant. The Declarant may voluntarily surrender the right to appoint and remove officers and Directors before termination of the 75% Control Period; but, in that event, the Declarant may require, for the duration of the 75% Control Period, that specified actions of the Association or Board of Directors, as described in a recorded instrument executed by the Declarant, be approved by the Declarant before they become effective. Section 3.4. Termination of 75% Control Period. Not later than the termination of the 75% Control Period, the Members shall elect a Board of Directors, at least a majority of whom must be Owners other than the Declarant or designated representatives of Owners other than the Declarant. The Board of Directors shall elect the officers. Such members of the Board of Directors and officers shall take office upon election. Section 3.5. Delivery of Property by Declarant. After the Members other than the Declarant elect a majority of the members of the Board of Directors, the Declarant shall deliver to the Association all property of the Owners and of the Association held by or controlled by the Declarant, if and to the extent required by CCIOA. Section 3.6. Budget. Within thirty (30) days after adoption of any proposed budget for the Community, the Board of Directors shall mail, by ordinary first-class mail, or otherwise deliver a summary of the Association budget to all the Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen (14) nor more than fifty (50) days after mailing or other delivery of the summary. Unless at that meeting the budget is rejected by the vote or agreement of Members to which at least eighty percent (80%) of the votes in the Association are allocated, then the budget is ratified, whether or not a quorum is present. In the event that the proposed budget is rejected, the periodic budget last ratified by the Members must be continued until such time as the Owners ratify a subsequent budget proposed by the Directors. Any budget prepared with respect to Limited Common Elements shall be submitted in accordance with the requirements set forth above, but shall be sent only to those Owners against whose Lots the costs associated with certain Limited Common Elements are assessed and who shall be entitled to vote on such budget in accordance with the voting requirements set forth above. Section 3.7. Rules and Regulations. Rules and regulations concerning and governing the Lots, Common Elements, and/or this Community may be adopted, amended or repealed from time to time by the Board of 3 Directors, and the Board of Directors may establish and enforce penalties for the infraction thereof, including, without limitation, the levying and collecting of fines for the violation of any of such rules and regulations. The rules and regulations may state procedural requirements, interpretations and applications of the provisions of this Declaration, including without limitation, blanket requirements, blanket interpretations, and blanket applications. The Board has the authority to adopt or vary one or more rules and regulations that are different for different types of Lots, if any exist. Any rules and regulations that are adopted shall be in accordance with, and shall not be inconsistent with or contrary to, this Declaration, the Master Declaration, and all provisions thereof. Section 3.8. Association Books and Records. The Association shall make available to Owners, prospective purchasers, Security Interest Holders, and insurers or guarantors of any such Security Interest, current copies of this Declaration, and the Articles of Incorporation, Bylaws, rules and regulations, books, records and financial statements of the Association. "Available" shall mean available for inspection, upon request, during normal weekday business hours or under other reasonable circumstances. Section 3.9. Information Regarding Security Interests. Each Member shall, within twenty (20) days of encumbering such Member's Lot with a Security Interest, and at other times upon request of the Association, provide the Association with the name and address of such Security Interest Holder, a copy of the instrument(s) creating the Security Interest(s), and the loan number(s) (or other identifying number of such Security Interest(s)). Within twenty (20) days after any change in the name or address of a Security Interest Holder on a Member's Lot, and at other times upon request of the Association, such Member shall provide the aforesaid information to the Association with respect to each Security Interest held by such Security Interest Holder. Section 3.10. Management Agreements and Other Contracts. Any agreement for professional management of the Association's business or other contract providing for the services of the Declarant shall have a maximum term of three (3) years and any such agreement shall provide for termination by either party thereto, with or without cause and without payment of a termination fee, upon not more than ninety (90) days' prior written notice. ARTICLE 4. COVENANT FOR ASSESSMENTS Section 4.1. Personal Obligation for Assessments. Each Owner of a Lot, including Declarant and each Builder, by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, covenants and agrees and shall be personally obligated to pay to the Association: annual Assessments or charges. special Assessments, and other charges, fines, fees, interest, late charges, and other amounts. all as provided in this Declaration; with such Assessments and other amounts to be established and collected as hereinafter provided. The obligation for such payments by each Owner to the Association is an independent covenant with all amounts due, from time to time, payable in full when due without notice or demand (except as otherwise expressly provided in this Declaration), and without set-off or deduction. All Owners of each Lot shall be jointly and 4 Severally liable to the Association for the payment of all Assessments, fees, and charges and other amounts attributable to their Lot. Each amount, together with interest, late charges, costs, and reasonable attorney's fees, shall also be the personal obligation of the Person who was the Owner of such Lot at the time when the amount became due. The personal obligation for delinquent amounts (including Assessments) shall not pass to such Owner's successors in title unless expressly assumed by them. Section 4.2. Purpose of Assessments. The Assessments levied by the Association shall be used to promote the recreation, health, safety and welfare of the residents of the Lots, and for all of those purposes and activities which may be required of the Association or which the Association may be empowered to pursue pursuant to this Declaration, the Articles of Incorporation or Bylaws of the Association, or by law. Section 4.3. Amount of Annual Assessment. Until the effective date of an Association budget ratified by the Members with a different amount for annual Assessments, as provided above, the amount of the annual Assessment against each Lot shall not exceed Thirty-Five Dollars ($35.00) per month. However, the rate of annual and special Assessments paid by Initially Unoccupied Lots shall be less than that paid by other Lots, as provided in the next Section. Section 4.4. Rate of Assessment. 4.4.1. Annual and special Assessments shall be sufficient to meet the expected needs of the Association and shall be apportioned among the Lots in accordance with their Allocated Interest. Notwithstanding the foregoing, however, the amount of the annual Assessments and special Assessments against the Initially Unoccupied Lots shall be set at a lower rate than that charged against other Lots, because the Initially Unoccupied Lots receive and benefit from fewer services funded by the Assessments than the other Lots. Colorado Revised Statutes §38-33.3-315(3) (b) states that"Any common expense or portion thereof benefiting fewer than all of the units shall be assessed exclusively against the units benefited." Based on this provision, the Initially Unoccupied Lots shall pay annual and special Assessments at the rate of 40% of any annual Assessment or special Assessment charged to Lots other than Initially Unoccupied Lots. 4.4.2. The annual Assessments shall include an adequate reserve fund for the maintenance, repair, replacement and reconstruction of those items that must be maintained repaired, replaced or reconstructed on a periodic basis, and for the payment of insurance deductibles. 4.4.3. During the 75% Control Period, the Declarant may in its discretion, but shall not be required to, cover certain costs of the Association by payment of any amount(s), which shall be treated as an advance against future Assessments due from the Declarant; provided, however, that any such advances which have not been credited against Assessments due from the Declarant as of termination of the 75% Control Period shall then be repaid by the Association to the Declarant, without interest, to the extent that the Association has funds in excess of its working capital funds, reserve funds, and operating expenses to date for the calendar year in which the 75% Control Period terminates; and provided further, however, that any of such advances which are not repaid 5 to the Declarant shall continue to constitute advances against future Assessments due from the Declarant until conveyance by the Declarant of all of the property described on the attached Exhibits A and D. If the Declarant elects in its discretion to pay any amounts as provided in this subparagraph, Declarant shall not, under any circumstances, be obligated to continue payment or funding of any such amount(s) in the future. 4.5. Date of Commencement of Annual Assessments. Annual Assessments shall commence at such time as the Board of Directors may determine in its discretion. After any annual Assessment has been made by the Association, annual Assessments shall be based on a budget adopted by the Association. A budget shall be so adopted by the Association no less frequently than annually. The annual Assessments shall be due and payable in monthly installments, in advance, on the first day of such monthly period or on such other dates, and with such frequency (which may be other than monthly, but not less frequently than annually), as the Board of Directors determines in its discretion from time to time, provided that the first annual Assessment shall be adjusted to reflect the time remaining in the first Association fiscal year. Any Owner purchasing a Lot between installment due dates shall pay a pro rata share of the last payment due. 4.6. Special Assessments. In addition to the annual Assessments authorized in this Article, the Board of Directors may levy, in any fiscal year, with the approval of the votes of sixty-seven percent (67%) of a quorum of the Association votes cast by Members voting in person or by proxy at a meeting duly called for this purpose, a special Assessment applicable to that year only, for the purpose of defraying in whole or in part the cost of any construction, reconstruction, repair or replacement of a capital Improvement upon any portion of real property for which the Association has repair and/or reconstruction obligations, including fixtures and personal property related thereto, or for repair or reconstruction of any damaged or destroyed Improvements located on said real property, or for the funding of any expense or deficit incurred by the Association. Any such special Assessment shall be set against each Lot in accordance with the Allocated Interests set forth in this Declaration. 4.7. Assessments/Charges for Services to the Master Association and/or Separate Areas of the Community. The Association may, at any time from time to time, provide services to the Master Association and/or to any area(s) (containing less than all of the Lots) in the Community. If such services are not funded by the annual Assessments or special Assessments, then such services shall be provided, if at all, pursuant to an agreement in writing between the Association and the Master Association and/or the Owners of the Lots for which such service is to be provided, as applicable, with such agreement to include a statement and terms for payment of the costs, fees and expenses that are to be paid by such Owners for such services, and which amounts shall include overhead expenses of the Association. Services which may be provided by the r 6 Association pursuant to this Section include, without limitation, (a) the construction, care, operation, management, maintenance, repair, replacement, reconstruction and renovation of Improvements or property owned by such Owner(s); (b) the provision of any services or functions to such area, such as trash removal; (C) the maintenance and servicing of septic systems if fewer than all of the Lots contain septic systems; (d) the enforcement of the provisions of any Supplemental Declaration, Supplemental Covenants or any other document or agreement for, on behalf of, and in the name of the applicable Owners; (e) the collection of Assessments for, in the name of, and on behalf of the Master Association, or(f) the payment of taxes or other amounts for Owners with funds provided by such Owners; (g) the procurement of insurance for Owners; (h) the appointment and supervision of a manager(s) for area; and (I) the maintenance and servicing of septic systems if fewer than all of the Lots contain septic systems. 4.8. Lien for Assessments. 4.8.1. The Association has a statutory lien on a Lot for any amount levied against that Lot or the Owner thereof, including for fines imposed against the Lot's Owner. The amount of the lien shall include all those items set forth in this Section from the time such items become due. If an Assessment is payable in installments, each installment is a lien from the time it becomes due, including the due date set by any valid Association acceleration of installment obligations. 4.8.2. Recording of this Declaration constitutes record notice and perfection of the lien. No further recordation of any claim of lien for Assessments is required. However, the Board of Directors or managing agent of the Association may prepare, and record in the county in which the applicable Lot is located, a written notice setting forth the amount of the unpaid indebtedness, the name of the Owner of the Lot, and a description of the Lot. If a lien is filed, the costs and expenses thereof shall be added to the Assessment for the Lot against which it is filed and collected as part and parcel thereof. The Association's lien may be foreclosed in like manner as a mortgage on real estate. 4.9. Priority of Association Lien. 4.9.1. A lien under this Article 4 is prior to all other liens and encumbrances on a Lot accept: 4.9.1.1. Liens and encumbrances recorded before the recordation of the Declaration; 4.9.1.2. A Security Interest on the Lot which has priority over all other security interests on the Lot and which was recorded before the date on which the assessment sought to be enforced became delinquent; and 4.9.1.3. Liens for real estate taxes and other governmental Assessments or charges against the Lot. 4.9.2. A lien under this Section is also prior to the Security Interests described in the preceding subsection 4.9.1 2 to the extent, if any, provided in CCIOA. 7 4.9.3. This Section does not affect the priority of mechanics' or materialmen's liens or the priority of liens for other Assessments made by the Association. 4.9.4. The Association's lien on a Lot for Assessments and other amounts shall be superior to any homestead exemption now or hereafter provided by the laws of the State of Colorado or any exemption now or hereafter provided by the laws of the United States. The acceptance of a deed to land subject to this Declaration shall constitute a waiver of the homestead and any other exemption as against said Association lien. 4.10. Certificate of Status of Assessments. The Association shall furnish to an Owner or such Owner's designee, or to a Security Interest Holder or its designee, upon written request delivered personally or by certified mail, first class postage prepaid, return receipt, to the Association's registered agent, a written statement setting forth the amount of unpaid Assessments currently levied against such Owner's Lot. The statement shall be furnished within fourteen (14) calendar days after receipt of the request and is binding on the Association, the Board of Directors, and every Owner. If no statement is furnished to the Owner or Security Interest Holder or their designee, delivered personally (including delivery by telefax) or by certified mail, first class postage prepaid, return receipt requested, to the inquiring party, then the Association shall have no right to assert a lien upon the Lot for unpaid Assessments which were due as of the date of the request. The Association shall have the right to charge a reasonable fee for the issuance of such certificates. 4.11. Effect of'on-Payment of Assessments;Remedies of the Association. Any Assessments not paid within ten (10) days after the due date thereof shall bear interest from the due date at the rate of twenty-one percent (21%) per annum, or at such lesser rate as may be set from time to time by the Board of Directors, and the Board of Directors may assess thereon a monthly late charge in such amount as may be determined by the Board of Directors in its discretion from time to time. The Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against such Owner's Lot. If a judgment or decree is obtained, including, without limitation, in a foreclosure action, such judgment or decree shall include reasonable attorney's fees to be fixed by the court, together with the costs of the action, and may include interest and late charges, as above provided. No Owner may be exempt from liability for payment of any assessment by waiver of the use or enjoyment of any of the Common Elements or by abandonment of the Lot against which the Assessments are made, or because of dissatisfaction with the Association or its performance. This Article does not prohibit actions or suits to recover sums for which this Declaration creates a lien, nor does this Article prohibit the Association from taking a deed in lieu of foreclosure. 4.12. Surplus Funds. Any surplus funds of the Association remaining after payment of or provision for expenses of the Association, and any prepayment of or provision for reserves, shall be retained by the Association as reserves and need not be paid to the Owners or credited to them to reduce their future Assessments. 8 4.13. Working Capital Fund. The Association shall require the first Owner (other than the Declarant or a Builder) of any Lot who purchases that Lot from the Declarant or a Builder to make a non- refundable contribution to the Association in an amount equal to two (2) months Assessments (regardless of whether or not annual Assessments have commenced as provided in Section 4.5 hereof)- Said contribution shall be collected and transferred to the Association at the time of closing of the sale by Declarant or a Builder of each Lot and shall, until use, be maintained for the use and benefit of the Association, including, without limitation, to meet unforeseen expenditures or to purchase additional equipment, property or services. Such contribution to the working capital fund shall not relieve an Owner from making regular payments of Assessments as the same become due. Upon the sale of his Lot, an Owner shall be entitled to reimbursement at closing (in the form of a credit on the closing settlement statement) from the purchaser of such Lot (but not from the Association) for the portion of the aforesaid contribution to working capital fund which has not been used by the Association at the time of conveyance of the Lot by such Owner. 4.14. Other Charges. The Association may levy and assess charges, costs and fees for matters such as, but not limited to, the following, in such reasonable amounts(s) as the Board of Directors may determine in its discretion at any time from time to time, including reimbursement of charges that are made to the Association by its managing agent or other Person: copying of Association or other documents; return check charges; charges for telefaxes; long distance telephone calls; transfer charges or fees upon transfer of ownership of a Lot; charges for notices and demand letters; and other charges incurred by the Association for or on behalf of any Owner(s). All such charges, costs and fees shall be in addition to the Assessments levied by the Association, but shall be subject to all of the Association's rights with respect to the collection and enforcement of Assessments. 4.15. Assessments for Misconduct. If any Association expense is caused by the misconduct of any Owner, as determined by the Board of Directors, the Association may assess that Association expense exclusively against such Owner and his Lot. ARTICLE 5.ARCHITECTURAL REVIEW COIVEVII 'TEE 5.1 Composition of Committee The Architectural Review Committee shall consist of two(2)or more persons appointed by the Board of Directors: provided,however,that until automatic termination of the Special Declarant Rights as provided, in Section 2.9 thereof,the Declarant may appoint the Architectural Review Committee. The power to"appoint'as provided herein. shall without limitation the power to: constitute the initial membership of the Architectural Review Committee: appoint member(s)to the Architectural Review Committee.neither with nor without cause, any time. and appoint the successor thereof Each such appointment mac be made for such term(s)of office.subject to the aforesaid power of removal. as rnav be sent from time lo time in the discretion of the appointer. 5.2. Review by Committee&Requirement for Approval by Governmental Entities. 9 5.2.1. Subject to Sections 5.10 and 5.13 of this Declaration,no Improvements shall be constructed,erected, placed,planted,applied or installed upon any Lot unless plans and specifications therefore(said plans and specifications to show exterior design,height, materials,color,and location of the Improvements,and type of landscaping,walls, windbreaks and grading plan,as well as such other materials and information as may be required by the Committee),shall have been first submitted to and approved in writing by the Architectural Review Committee. The Architectural Review Committee shall exercise its reasonable judgment to the end that all Improvements conform to and harmonize with the existing surroundings, residences, landscaping and structures and that such Improvements are consistent with the Design Guidelines or design rules referenced in Section 5.4(Design Rules)of this Declaration. In its review of such plans,specifications and other materials and information,the Architectural Review Committee may require that the applicant(s)reimburse the Committee for the actual expenses incurred by the Committee in the review and approval process. Such amounts, if any,shall be levied in addition to the assessment against the Lot for which the request for Architectural Review Committee approval was made,but shall be subject to the Association's lien for Assessments and subject to all other rights of the Association for the collection of such Assessments,as more fully provided in this Declaration. 5.2.2. As more fully provided in the Master Declaration,no Improvement shall be constructed,erected,placed,planted,applied or installed on any Lot,until the same has been submitted to and approved by the design review committee of the Master Association in accordance with the Master Declaration and all guidelines,regulations,rules and requirements for submission and processing of requests for approval promulgated,enacted, adopted,amended,interpreted,repealed and reenacted by the Master Association or its design review committee,from time to time. 5.2.3. In addition to the foregoing review and approvals,the construction,erection, addition,deletion,change or installation of any Improvements shall also require the applicant to obtain the approval of all governmental entities with jurisdiction there over,and the issuance of all required permits, licenses and approvals by all such entities. Without limiting the generality of the preceding sentence,issuance of building permit(s)by Weld County,Colorado,if required,shall be a pre-condition to commencement of any construction of,alteration of,addition to,or change in,any Improvement. 5.2.4. All active absorption field areas or leach field areas must be protected. No permanent landscaping,structures,dirt mounds,animal husbandry activities or other activities that would interfere with construction,or maintenance or functions of the field shall be permitted. 5.3. Procedures. The Architectural Review Committee shall decide each request for approval within thirty (30) days after the complete submission of all plans. specifications and other materials and information which the Committee may require in conjunction therewith. If the Architectural Review Committee fails to decide any request within thirty (30)days after the complete Submission of all plans. specifications. materials and other information with respect thereto, then approval shall be deemed to have been denied. 5.4. Design Rules. 10 The Architectural Review Committee may,at any time from time to time with the advice of the Board of Directors, enact issue,promulgate, modify,amend, repeal,re-enact,and enforce, Design Guidelines or design rules,to interpret and implement the provisions of this Article. Without limiting the generality of the foregoing, such provisions may contain guidelines to clarify the types of designs and materials that may be considered in design approval, may state requirements for submissions in order to obtain review by the Committee, may state procedural requirements, and/or may specify acceptable Improvement(s)that may be installed without the prior approval of the Architectural Review Committee. Any architectural or design rules so adopted by the Committee shall be consistent, and not in conflict,with this Article,the Declaration,the Design Guidelines or design rules. 5.5. Delegation (and Acceptance) of Design Review and Approval. The Declarant,during the time when the Declarant has the right to appoint the Architectural Review Committee,and the Board thereafter, may delegate any or all design review and/or approval functions pursuant to this Declaration to a design review committee appointed by the Master Association,and may accept from a design review committee appointed by the Master Association,delegation of any or all review and/or approval functions of such design review committee. The party with the right to appoint the Architectural Review Committee may,at any time, determine to reclaim the delegated rights. To reclaim the delegated rights,written notice must be given to the Board of Directors of the Master Association,the Board of Directors of the Association,to which such rights were delegated,that such right is being reclaimed by the Association, and the reclamation shall be effective upon receipt of the notice by the Board of Directors.Delegation of architectural review and/or approval to any Master Association shall not constitute a waiver of the Association's right of architectural review and/or approval as provided in this Declaration. 5.6. Vote and Appeal. A majority vote of the Architectural Review Committee is required to approve a request for approval pursuant to this Article, unless the Committee has appointed a representative to act for it, in which case the decision of such representative shall control. In the event a representative acting on behalf of the Architectural Review Committee decides a request for architectural approval which is adverse to the applicant,then the applicant shall have the right to an appeal of such decision to the full Committee,upon a written request therefore submitted to the Committee within thirty(30)days after such decision by the Committee's representative. 5.7. Prosecution of Work after Approval. After approval of a request for architectural approval,the work to complete the same shall be accomplished as promptly and diligently as possible and in complete conformity with the approval. Either the failure to complete the proposed Improvement within one(1)year after the date of approval of the application therefore, except as to Builders(who shall not be subject to such I-year limitation), or failure to complete the Improvement in accordance with the Description and materials furnished to the Committee and the conditions imposed with such approval. shall constitute a violation of this Article. 5.8 Inspection of Work. The Architectural Review Committee. the Design Review Committee, or their duh authorized representatives) shall have the right to inspect any Improvement prior to, during or after completion of the same, in order to determine whether or not the proposed Improvement is being completed or has been completed in compliance with this Article and any approval therefore granted by the Committee. However, unless the Committee expressly states, in a written 11 document,that an Improvement is being completed or has been completed in conformance with the approval therefore,no such conformance shall be implied from inspection of the Improvement either during the work or after completion thereof. 5.9. Records. The Architectural Review Committee shall maintain written records of all applications submitted to it and all actions taken by it thereon and such records shall be available-to Members for inspection at reasonable hours of the business day. 5.10. Variance. The Architectural Review Committee may grant reasonable variances or adjustments from any conditions and restrictions imposed by this Article 5 or Article 10 hereof, in order to overcome practical difficulties or prevent unnecessary hardships arising by reason of the application of any such conditions and restrictions. Such variances or adjustments shall be granted only in case the granting thereof shall not be materially detrimental or injurious to the other property or Improvements in the neighborhood and shall not militate against the general intent and purpose hereof. 5.11. Waivers;No Precedent. The approval or consent of the Architectural Review Committee, or any representative thereof,to any application for architectural approval shall not be deemed to constitute a waiver of any right to withhold or deny approval or consent by the Committee or any representative thereof as to any application or other matters whatsoever as to which approval or consent may subsequently or additionally be required.Nor shall any such approval or consent be deemed to constitute a precedent as to any other matter. 5.12. Liability. The Architectural Review Committee, and any members thereof, shall not be liable in equity or damages to any person submitting requests for approval or to any Owner by reason of any action, failure to act, approval,disapproval,or failure to approve or disapprove in regard to any matter within their jurisdiction hereunder.In reviewing any matter,the Architectural Review Committee shall not be responsible for the safety,whether structural or otherwise of the Improvements submitted for review,nor the conformance with applicable building codes or other governmental laws or regulations,and any approval of an Improvement by the Architectural Review Committee shall not be deemed an approval of any such matters. No Member or other Person shall be a third party beneficiary of any obligation imposed upon,rights accorded to,action taken by,or approval granted by the Architectural Review Committee. 5.13. Exemption for Declarant and Builders. 5.13.1. Notwithstanding anything to the contrary contained in this Declaration, until automatic termination of the Special Declarant Rights as provided in Section I.30 hereof the Declarant shall be exempt from the provisions of this Article except for the requirements to obtain approval from all governmental entities with jurisdiction there over (as provided in Section 5.2.3 hereof). 5.13.2. Notwithstanding anything to the contrary contained in this Declaration, as long as a Builder has received design approval from the Declarant, such Builder shall be exempt from the provisions of this Article except for the requirements to obtain approval 12 from all governmental entities with jurisdiction there over(as provided in Section 5.2.3 hereof). The exemption contained in this subsection shall expire upon the termination of the Special Declarant Rights as provided in Section 1.30 hereof. ARTICLE 6. INSURANCE 6.1. Insurance. The Association shall maintain insurance in connection with the Common Elements. The Association shall maintain insurance as required by applicable law or applicable regulation, including CCIOA(Colorado Common Interest Ownership Act),which insurance shall include, without limitation,property insurance,commercial general liability insurance, and fidelity coverage or fidelity bonds. In addition,the Association may maintain insurance on such other property, and/or against such other risks,as the Board of Directors may elect in its discretion from time to time, including, but not limited to,personal liability insurance to protect directors and officers of the Association from personal liability in relation to their duties and responsibilities in acting as directors and officers on behalf of the Association. 6.2. General Provisions of Insurance Policies. All policies of insurance carried by the Association shall comply with this Section. All policies of insurance carried by the Association shall be carried in blanket policy form naming the Association as insured,or its designee as trustee and attorney-in-fact for all Owners,and each Owner shall be an insured person under such policies with respect to liability arising out of any Owner's membership in the Association. The policy or policies shall contain a standard non- contributory Security Interest Holder's clause in favor of each Security Interest Holder and a provision that it cannot be canceled or materially altered by either the insured or the insurance company until thirty(30)days prior written notice thereof is given to the insured and each Security Interest Holder, insurer or guarantor of a Security Interest. The Association shall furnish a certified copy or duplicate original of such policy or renewal thereof,with proof of premium payment and a certificate identifying the interest of the Owner in question,to any party in interest, including Security Interest Holders, upon request. All policies of insurance carried by the Association shall also contain waivers of subrogation against any Owner or member of such Owner's household. Further, all policies of insurance carried by the Association shall contain Waivers of any defense based on invalidity arising from any acts or neglect of an Owner where such Owner is not under the control of the Association or Master Association. 6.3. Deductibles. The Association may adopt and establish written non-discriminatory policies and procedures relating to the submittal of claims, responsibility for deductibles,and any other matters of claims adjustment. Any loss,or any portion thereof,which falls within the deductible portion of a policy that is carried by the Association, may be borne by the Person who is responsible for the maintenance, repair, replacement and reconstruction of the property which is damaged or destroyed, may he apportioned among the Persons sharing in a joint duty of repair and maintenance.and/or may he partly or wholly borne by the Association,at the election of the Board of Directors. Notwithstanding the foregoing. after notice and hearing, the Association may determine that a loss, either in the form of a deductible to he paid by the Association or an uninsured loss resulted from the act or negligence of one or more Owners. Upon said determination by the Association,any such loss or portion thereof may be assessed to the Owner(s) in question in such amount(s)as the Board of Directors deems appropriate, and the Association may collect such amount(s) from said Owner(s) in the same manner as any 13 assessment. 6.4. Payment of Insurance Proceeds. Any loss covered by an insurance policy described in Section 6.1 must be adjusted with the Association, but the insurance proceeds for that loss shall be payable to any insurance trustee designated for that purpose, or otherwise to the Association,and not to any Security Interest Holder. The insurance trustee or the Association shall hold any insurance proceeds in trust for the Association, Owners and Security Interest Holders as their interests may appear. Subject to the provisions of Section 7.1 of this Declaration,the proceeds must be disbursed first for the repair or restoration of the damaged property;and the Association,Owners and Security Interest Holders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored and any budget or reserve deficit funded,or unless the Community is terminated. 6.5. Association Insurance as Primary Coverage. If at the time of any loss under any policy which is in the name of the Association,there is other insurance in the name of any Owner and such Owner's policy covers the same property or loss,or any portion thereof,which is covered by such Association policy, such Association policy shall be primary insurance not contributing with any of such other insurance. An Owner shall be liable to the Association for the amount of any diminution of insurance proceeds to the Association as a result of policies of insurance of an Owner,and the Association may collect the amount from said Owner in the same manner as any assessment. Any such Owner's policy shall also contain waivers of subrogation. 6.6. Acceptable Insurance Companies. Each insurance policy purchased by the Association must be written by an insurance carrier which is authorized by law to do business in the State of Colorado. The Association shall not obtain any policy where(a)under the terms of the insurance company's charter,bylaws, or policy, contributions or Assessments may be made against the mortgagor or mortgagee's designee,or(b) under the terms of the carrier's charter, bylaws,or policy, loss payments are contingent upon action by the carrier's board of directors,policy holders or members, or(c)the policy includes any limiting clauses(other than insurance conditions)which could prevent mortgagees or any Owner from collecting insurance proceeds. 6.7. Insurance to be maintained by Owners. An insurance policy issued to the Association does not eliminate the need for Owners to obtain insurance for their own benefit. Insurance coverage on each Owner's Lot and the Improvements thereon, as well as on all the furnishings and personal property belonging to an Owner,and public liability insurance coverage on each Lot, shall be the responsibility of the Owner of such Lot. Owners shall also be responsible for obtaining any policies of title insurance required in connection with any sale of a Lot other than the purchase by the initial Owner(s)from the Declarant. In the event the homeowner's insurance policies held by different Owners of Lots or held by an Owner and the Association and which are underwritten by different insurers,the Owner shall he responsible for ensuring that such Owner's insurer agrees. in the event damage occurs to the covered property. to facilitate payment of the insurance proceeds when two insurers are involved and that the insurer will pay all undisputed proceeds and one-half of any disputed proceeds(up to the amount of coverage provided by such insurance) subject to the right of such insurer to recover from the other insurer any such sums for which the other insurer is found to be liable. 14 ARTICLE 7. DAMAGE OR DESTRUCTION 7.1. Damage or Destruction. 7.1.1. Any portion of the Community for which casualty insurance is required to be carried by the Association under this Declaration which is damaged or destroyed must be repaired or replaced promptly by the Association unless: 7.1.1.1. The Community is terminated; 7.1.1.2. Repair or replacement would be illegal under any state or local statute or ordinance governing health or safety; 7.1.1.3. Sixty-seven percent(67%)of the Members,including every Member whose Lot will not be rebuilt,vote not to rebuild;or 7.1.1.4. Prior to conveyance of any Lot to a Person other than the Declarant, a Security Interest Holder rightfully demands all or a substantial part of the insurance proceeds; 7.1.2. The cost of repair or replacement that is covered by insurance carried by the Association,but which is in excess of insurance proceeds and reserves,is an Association expense. If the entire Community is not repaired or replaced,the insurance proceeds attributable thereto must be used to restore the damaged area to a condition compatible with the remainder of the Community and,except to the extent that other Persons will be 8. Residential Use. Subject to Section 13.7 of this Declaration and Sections 8.5 and 8.6 of the Master Declaration, Lots shall be used for residential use only, including uses which are customarily incident thereto, and shall not be used at any time for business, commercial or professional purposes. Notwithstanding the foregoing,however,Owners may conduct business activities within their homes provided that the following conditions are satisfied: 8.1 The business conducted is clearly secondary to the residential use of the home and is conducted entirely within the home; 8.2 The existence or operation of the business is not apparent or detectable from outside of the home by sight, sound,smell or otherwise,or by the existence of signs indicating that a business is being conducted; 8.3 The business does not result in an undue volume of traffic or parking within the Community,which determination may be made by the Board of Directors in its sole discretion from time to time; 8.4 The business conforms to any rules and regulations that may be imposed by the Board of Directors from nine to time on a uniform basis to protect the peace, tranquility. and quality of the Community. The business conforms to all zoning requirements and is lawful in nature 8.5. Household Pets No animals, livestock, birds, poultry, reptiles or insects of any kind shall be raised, bred, kept or boarded in or on a Lot; provided, however, that the Owners or tenants of each Lot may keep a 15 reasonable number of dogs,cats,or other domestic animals which are bona fide household pets, so long as such pets are not kept for any commercial purpose and are not kept in such number or in such manner as to create a nuisance to any resident of the Lots.No Pitt Bulls dog will b allowed. The Association shall have,and is hereby given,the right and authority to: set a size or poundage limit on pets; regulate the type(s)of pets that are permitted to be kept; determine in its sole discretion that any dog(s),cat(s)or other household pet(s)are being kept for commercial purposes or are being kept in such number or in such manner as to be unreasonable or to create a nuisance; or that an Owner or tenant is in violation of the leash laws of the applicable jurisdiction or other applicable governmental laws,ordinances, or other provisions related to household pets; or determine that an Owner or tenant is otherwise in violation of the provisions of this Section,and to take such action or actions as it deems appropriate to correct the same. An Owner's or tenant's right to keep household pets shall be coupled with the responsibility to pay for any damage caused by such pets, as well as any costs incurred by the Association as a result of such pets, and any such costs and damages shall be subject to all of the Association's rights with respect to the collection and enforcement of Assessments as provided in Article 4 hereof. 8.6. Temporary Structures. Except as hereinafter provided,no structure of a temporary character, including but not limited to, a house,trailer,tent or shack shall be placed or erected on any Lot without the consent and approval of the Architectural Review Committee and in accordance with the Design Guidelines; provided, however,that during the actual construction, alteration,repair or remodeling of a structure or a capital improvement,necessary temporary structures for storage of materials may be erected and maintained by the person doing such work. Storage shed, play house,tree house, detached garage,or similar type of structure shall not be considered to be a"structure of a temporary character,"within the meaning of this section,subject to the Design Guidelines or guide rules. The work of constructing, altering or remodeling any structure or other capital improvement shall be prosecuted diligently from the commencement thereof until the completion thereof. Further, no unsightly conditions, structures, facilities,equipment or objects shall be as located on any Lot as to be visible from the street or from any other Lots. 8.7. Miscellaneous Improvements. No advertising or signs of any character shall be erected,placed, permitted,or maintained on any Lot other than a name plate of the occupant and a street number,and except for a"For Sale," "Open House," "For Rent"or security sign(s)of not more than a total of five(5)square feet each.Notwithstanding the foregoing,reasonable signs,advertising,or billboards used by the Declarant and/or any Builder(with the written consent of the Declarant)in connection with the sale or rental of the Lots,or otherwise in connection with initial development of or construction on the Lots, shall be permissible. 8.7.1. Other than during initial construction,no construction materials,wood piles,or storage areas shall be as located on any Lot as to be visible from a street or from the ground level of any other Lot.after initial construction is complete. for more than thith (10)dacs out of am calendar year 8.7.2. Except for solar panels.which are regulated by law no types of .- refrigerating, cooling or heating apparatus shall be permitted on a roof. 8.7.3. Except as may otherwise be permitted by the Architectural Review Committee, subject to any provisions of the Design Guidelines or guide rules,no exterior radio antenna, television antenna,or other antenna, satellite dish,or audio or visual 16 reception device of any type shall be placed,erected or maintained on any Lot,except inside a residence or otherwise concealed from view;provided,however,that any such devices may be erected or installed by the Declarant during its sales or construction upon the Lots; and provided further,however,that the requirements of this subsection shall not apply to those "antenna"(including certain satellite dishes)which are specifically covered by the Telecommunications Act of 1996 or regulations adopted there under,as amended.As to "antenna"(including certain satellite dishes)which are specifically covered by the Telecommunications Act of 1996 or regulations adopted there under,as amended,the Association shall be empowered to adopt rules and regulations governing the types of "antennae"(including certain satellite dishes)that are permissible and,to the extent permitted by the Telecommunications Act of 1996 or regulations adopted there under,a Amended, establishing reasonable, non-discriminatory restrictions or requirements relating to appearance,safety, location and maintenance. 8.7.5. Fences shall be permitted only in accordance with the prior,written approval of the Architectural Review Committee;except such fences as may be constructed, installed or located by the Declarant or Builder in their development of,or construction of Improvements in,the Community. 8.7.6. No wind generators,hanging articles(including without limitation clotheslines),drying yards,or service yards,shall be constructed,installed,erected or maintained on any Lot,except upon the approval of the Architectural Review Committee and subject to the other restrictions in the Governing Documents and Master Declaration. 8.7.7. Dog runs shall be permitted on a Lot only with the prior written approval of the Architectural Review Committee,subject to any provisions of the Design Guidelines or guide rules. 8.7.8. All driveways must be installed,constructed,maintained,repaired and replaced with a hard surface material such as concrete,crushed rock or asphalt. 8.7.9. All structures must comply with applicable law and the requirements of the Architectural Review Committee. 8.8. Vehicular Parking, Storage and Repairs. 8.8.1. House trailers,camping trailers,boat trailers,hauling trailers,jet skis,boats,or accessories thereto,trucks(larger than one(1)ton),self-contained motorized recreational vehicles,or other similar types of recreational or commercial vehicles or equipment,may be parked on a driveway on a Lot or parked or stored elsewhere on a Lot if such vehicles or equipment are screened from view in accordance with the prior approval of the Architectural Review Committee.However,any such vehicle may be otherwise parked as a temporary expedient for loading. delivery_or emergency. This restriction. however. shall not restrict trucks or other commercial vehicles which are necessan for construction or maintenance of any portion of the Community or any Improvements located thereon. 8.8? Except as othenwise provided in this and the next sentence,no disassembled or partially disassembled vehicles of any type, shall be parked, stored, maintained,or used in the front yard or driveway of any Lot(unless such parking or storage will be within the fully enclosed garage of a Lot)nor shall any such vehicle be parked or stored on any property visible from the ground level of any other Lot. 17 8.8.3. Except as hereinabove provided,no abandoned or inoperable automobiles or vehicles of any kind shall be stored or parked in the Community. An "abandoned or inoperable vehicle"shall be defined as any automobile,truck,motorcycle,or other similar vehicle,which has not been driven under its own propulsion for a period one week(7 days),or which does not have an operable propulsion system installed therein,or which is not then currently registered and licensed;provided,however,that otherwise Permitted vehicles parked by Owners while on vacation(for a maximum of two(2)weeks)or during a period of illness shall not be deemed to be abandoned. 8.8.4. In the event the Association shall determine that a vehicle is parked or stored on any Lot in violation of subsections 10.8.1,10.8.2,or 10.8.3,then a written notice describing said vehicle shall be personally delivered to the owner thereof(if such owner can be reasonably ascertained)or shall be conspicuously placed upon the vehicle(if the owner thereof cannot be reasonably ascertained),and if the vehicle is not removed within a reasonable time thereafter,as determined by the Association in its discretion from time to time,the Association shall have the right to remove the vehicle at the sole expense of the owner thereof. 8.8.5. No activity such as,but not limited to,maintenance,repair,replacement, reconstruction,rebuilding,dismantling,repainting or servicing of any kind of vehicles, trailers or boats,may be performed or conducted in the Community unless it is done within completely enclosed structure(s)which screen the sight and sound of the activity from the street and from adjoining property.The foregoing restriction shall not be deemed to prevent washing and polishing of any motor vehicle,boat,trailer,motor-driven cycle,or other vehicle,together with those activities normally incident and necessary to such washing and polishing. 8.9. Nuisances. No nuisance shall be permitted in the Community nor any use,activity or practice which is a source of annoyance or embarrassment to,or which offends or disturbs the resident of any Lot or which interferes with the peaceful enjoyment or possession and proper use of any Lot, or any portion thereof, by its residents. As used herein,the term "nuisance" shall not include any activities of Declarant which are reasonably necessary to the development and construction of,and sales activities in,the Community; provided, however,that such activities of the Declarant shall not unreasonably interfere with any Owner's use and enjoyment of his Lot,or with any Owner's ingress and egress to or from his Lot and a public way.No noxious or offensive activity shall be carried on in the Community nor shall anything be done or placed in the Community which is or may become a nuisance or cause embarrassment,disturbance or annoyance to others.Further, no improper,offensive or unlawful use shall be permitted in the Community or any portion thereof. All valid laws, ordinances and regulations of all governmental bodies having jurisdiction over the Community, or any portion thereof, shall be observed. 8.ID. A'o Hazardous Activities'. Vo Hceardous Materials or('hemicals No activities shall be conducted on any Lot. or within Improvements constructed on an Lot. which are or might be unsafe or hazardous to any person or property Without limiting the generality of the foregoing, no firearms shall be discharged upon any Lot and no open fires shall be lighted or permitted on any Lot except in a contained barbecue unit while attended and in use for cooking purposes or within an exterior fireplace, or except such campfires or picnic fires on property which may be designated for such use by the Association. Further, no hazardous 18 Materials or chemicals shall at any time be located,kept or stored in,or at any Lot except such As may be contained in household products normally kept at homes for use of the residents thereof and in such limited quantities so as to not constitute a hazard or danger to person or property. 8.11. No Annoying Light, Sounds or Odors. No light shall be emitted from any Lot which is unreasonably bright or causes unreasonable glare;no sound shall be emitted from any Lot which is unreasonably loud or annoying;and no odor shall be permitted from any Lot which is noxious or offensive to others.Any exterior lighting installed or maintained on a Lot or Improvements(s)shall either be indirect or of such controlled focus and intensity so as not to disturb the residents of adjacent or nearby property. 8.12. Restrictions on Trash and Materials. No refuse,garbage,trash,lumber,grass,shrubs or tree clippings,plant waste,metal,bulk materials, scrap or debris of any kind shall be kept,stored,or allowed to accumulate except inside the residence on any Lot,nor shall any such items be deposited on a street,unless placed in a suitable container suitably located solely for the purpose of garbage pickup.Notwithstanding the preceding,an Owner may accumulate such items in a compost pile or other similar fertilization system for their personal home use.All equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition.No garbage or trash cans or receptacles shall be maintained in an exposed or unsightly manner. 8.13. Lots to be Maintained Each Lot shall at all times be kept in a clean,sightly and wholesome condition by the Owner thereof. No trash,litter,junk,boxes,containers,bottles,cans,implements or machinery shall be permitted to remain upon any Lot except as necessary during the period of construction or as provided in Section 10.12 of this Declaration. 8.14. Leases. The term"lease",as used herein,shall include any agreement for the leasing or rental of a Lot,or any portion thereof,and shall specifically include,without limitation,month-to-month rentals and subleases.Any Owner shall have the right to lease his Lot,or any portion thereof,under the following conditions: 8.14.1. All leases shall be in writing. 8.142. All lences shall provide that the terms of the lease and lessee's occupancy of the leased premises shall be subject in all respects to the provisions of this Declaration, and the Articles of Incorporation,Bylaws and rules and regulations of the Association;and that any failure by the lessee to comply with any of the aforesaid documents,in any respect, shall be a default under the lease. 8-15 Lundccuping of Lots Within the time frames as hereinafter provided.the Owner(other than Declarant or a Builder)of each I of shall install landscaping(which may include native grasses)on all of the Lot which is not covered b_s a building or building Improvement,and shall thereafter maintain such 19 Landscaping in a neat and attractive condition, including periodic and horticultural correct pruning, removal of weeds, and replacement of landscaping. The Owner of each Lot (other than Declarant or a Builder) shall install landscaping (which may include native grasses) on such Lot within one hundred eighty (180) days after Certificate of Occupancy. Lot by such Owner if said time period occurs between April 1 and October 1; if said time period does not occur between such dates, then such landscaping shall be installed by such Owner by the following October 1. Landscaping plans and other required documents shall be professionally done, shall be in accordance with the Design Guidelines or guide rules (which may specify landscaping requirements), and shall be submitted to the Architectural Review Committee for review; and the approval prior to the installation of landscaping (which may include native grasses), except where installed by the Declarant or Builder. In addition, each Owner shall be responsible for revegetating landscaped areas of his Lot that are disturbed by construction. If any Owner fails to comply with this Section, or with the requirements of the Architectural Review Committee in installation of landscaping (which may include native grasses), the Association may, at the direction of the Board of Directors, enter upon such Lot and install or maintain landscaping (which may include native grasses)for which the Owner shall be obligated to pay, in accordance with and subject to the provisions of Section 8.2 of this Declaration. 8.16. Restrictions on Mining or Drilling. No property within the Community shall be used for the purpose of mining, quarrying, drilling, boring or exploring for or removing oil, gas or other hydrocarbons, minerals, rocks, stones, gravel or earth, except drilling or exploring for oil, gas or other hydrocarbons pursuant to oil and gas leases in effect on the date that this Declaration is recorded, as the same may be amended and supplemented from time to time. 8.17. Oil and Gas Well Disclosure. Oil field Production: If Oil/Gas production facilities become present within the said subdivision, oil/gas vehicles have the right to access their facilities within the subdivision without any interference by lot owners. By acceptance of a deed to a Lot, each Owner recognizes the existence of oil and gas leases on the Community and Annexable Area and the surface activity associated with such oil and gas leases, and assumes the risk of owning property near or adjacent to an oil and gas well operation. Such risks include, without limitation, injury or damage to person and/or property arising out of or resulting from the drilling, operation and maintenance of an oil and gas well; noise associated with an oil and gas well operation; explosion and fire; leakage of oil and/or gas from drilling or production facilities; vehicles servicing the oil and gas site (collectively the "Oil and Gas Well Risks"). The waiver and release set out in Section 13.16 shall apply to this Section. ARTICLE 9. RIGHT TO FARM COVENAMT 9.1. The Right to Farm Covenant: Weld County is the most productive agricultural county in the United States The rural areas of Weld County may be open and spacious, but they are intensively used for agriculture. Persons moving into a rural area must recognize there are drawbacks, including conflicts with long-standing agricultural practices and lower level of services than in town. 20 Agricultural users of the land should not be expected to change their long-established agricultural Practices to accommodate the intrusions of urban users into a rural area. Well run agricultural activities will generate off-site impacts, including noise from tractors and equipment; dust from animal pens, fields work, harvest, and gravel roads; odor from animal confinement, silage, and manure; smoke from ditch burning; flies and mosquitoes; the use of pesticides and fertilizers in the fields, including the use of aerial spraying. Ditches and reservoirs cannot simply be moved "out of the way" of residential development without threatening the efficient delivery of irrigation to fields which is essential to farm production. Weld County covers a land area of over 4,000 square miles in size (twice the size of the state of Delaware)with more than 3,700 miles of state and county roads outside of municipalities. The sheer magnitude of the area to be served stretches available resources. Law enforcement is based on responses to complaints more than on patrols of the county and the distances which must be traveled may delay all emergency responses, including law enforcement, ambulance, and fire. Fire protection is usually provided by volunteers who must leave their jobs and families to respond to emergencies. County gravel roads, no matter how often the are graded, will not provide the same kind of surface expected for a paved road. Snow removal priorities mean that roads from subdivisions to artenals may not be cleared for several days after a major snowstorm. Snow removals for roads within subdivisions are of the lowest priority for the public works or may be the private responsibility for the homeowners. Services in rural areas, in many cases, will not be equivalent to municipal services. ARTICLE 10. PROPERTY RIGHT'S IN THE COMMON ELEMENTS r 10.1. Owners'Easements of Enjoyment. The"Colorado Common Interest Ownership Act", (CCIOA)shall apply to these Covenants. Subject to this Article,every Owner shall have a non-exclusive right and easement for the purpose of access to their Lots and for use for all other purposes, in and to the Common Elements,and such easement shall be appurtenant to and shall pass with the title to every Lot, subject to the designation of certain Common Elements as Limited Common Elements.However: no use shall be made of the Common Elements which will in any manner violate the statutes,rules,or regulations of any governmental authority having jurisdiction over the Common Elements;no Owner shall engage in any activity which will temporarily or permanently deny free access to any part of the Common Elements to all Members, nor shall any Owner place any structure whatsoever upon the Common Elements; and no use shall ever be made of the Common Elements which will deny ingress and egress to those Owners having access to their Lots only over Common Elements,and the right of ingress and egress to said Lots is hereby expressly granted. 10.2. Extent of Owners'Easements. Subject to the other provisions of this Article, the rights and easements of enjoyment created hereby are subject to the following:the Common Elements may not be used in any manner which violates the statutes. rules_ or regulations of any governmental authority with jurisdiction over the Common Elements:and no Owner may place any structure on the Common Elements. In addition. such rights and easements are subject to the following rights of the Association: 10.2.1. The right of the Association to borrow money for the purpose of improving the Common Elements and to mortgage said property as security for any such loan; provided,however,that the Association may not subject any portion of the Common Elements to a Security Interest except in accordance with CCIOA;and 21 • 10.2.2. The right of the Association to take such steps as are reasonably necessary to protect the Common Elements against foreclosure;and 10.2.3. The right of the Association to promulgate and publish standards,guidelines, rules and regulations,with which each Member shall strictly comply;and 10.2.4. The right of the Association to suspend the voting rights of a Member for any period during which any assessment against his Lot remains unpaid and,for a period not to exceed sixty(60)days,for any infraction of the Association Bylaws or the rules and regulations of the Association;and 10.2.5. The right of the Association to dedicate or transfer all or any part of the Common Elements owned by the Association to any public agency,authority,or utility for such purposes and subject to such conditions as may be agreed to by the Members,provided that no such dedication or transfer shall be effective unless the same is done in accordance with CCIOA.Notwithstanding the foregoing,the granting of permits, licenses and easements for public utilities,roads or for other purposes reasonably necessary or useful for the proper maintenance or operation of the community. 10.2.6. ARTICLE 11. 11.3. Declarant's Use of Common Elements. An easement is hereby granted to the Declarant through the Common Elements as may be reasonably necessary for the purpose of discharging any of Declarants obligations or exercising any rights of the Declarant, including without limitation Special Declarant Rights.No Owner shall engage in any activity which will temporarily or permanently interfere with this easement through the Common Elements.No motorized vehicles allowed on common element.No Grazing of animals. 11.4. Limited Common Elements. Subject to the terms and provisions of this Declaration, every Owner shall have the right to use and enjoy the Limited Common Elements appurtenant to such Owner's Lot or which are otherwise designated for use by such Owner's Lot. Such right shall be exclusive except as to those Owners with a right to use such Limited Common Elements. 11.5. Delegation of Use. Any Owner may delegate his right of enjoyment to the Common Elements and facilities to the members of his family, his tenants, or contract purchasers who reside on his Lot. 11.6. Payment of Taxes or Insurance by Security Interest Holders. Security Interest Holders shall have the right.jointly or singly, to pay taxes or other charges or Assessments which are in default and which may or have become a lien against the Common Elements and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage on the lapse of a policy for the Common Elements. and any Security Interest Holders making any such payments shall he owed immediate reimbursement therefore from the Association. 11.7. Conveyance or Encumbrance of Common Elements. Portions of the Common Elements may be conveyed or subjected to a Security Interest by the 22 Association only in accordance with CCIOA and this Declaration. 11.8. Designation of Common Elements. Declarant in recording this Declaration has designated certain areas of land as Common Elements intended for the common use and enjoyment of Owners for recreation and other related Activities, as provided in this Declaration and other applicable documents. The Common Elements owned by the Association is not dedicated hereby for use by the general public. 11.9. Duty to Accept Property and Facilities Transferred by Declarant The Association shall accept title to any Common Elements, including Improvements thereon,as well as personal property,equipment,easements and any property on which the Association has or assumes maintenance responsibilities,transferred to the Association by the Declarant,together with responsibility to perform all duties and functions of the Association which are set forth in this Declaration or otherwise assumed by the Association. As of the date of recording of this Declaration, interests which are planned to be transferred by the Declarant to the Association are planned to consist only of fee simple title to Common Elements to be located in the property described on the attached Exhibit A and/or the Annexable Area and/or easements. ARTICLE 12. DISPUTE RESOLUTION 12.1. Intent of Article;Applicability of Article;and Applicability, of Statutes of Limitation. 12.1.1. Each Party(as defined below)agrees to encourage the amicable resolution of disputes,without the emotional and financial costs of litigation.Accordingly, each Party covenants and agrees to submit all Claims each alleges to have to the procedures set forth in this Article and not to a court of law. 12.12. By acceptance of a deed for a Lot,each Owner agrees to abide by the terms of this Article. 12.1.3. No Claim(as defined below)may be initiated after the date when institution of legal or equitable proceedings based on such Claim would be barred by the applicable statute of limitation or statute of repose. Section 12.2. Definitions Applicable to this Article. For purposes of this Article only,the following terms have the meanings set forth in this Section: 12.2.1. "AAA"means the American Arbitration Association. 12.2.2. "Party"means each of the following: Declarant, its officers,directors, partners, members, employees and agents;the Association, its officers, directors and committee members:all persons subject to this Declaration:an builder its officers. directors. partners. members.employees and agents;and any person not otherwise subject to this Declaration who agrees to submit to this Article. ?.?.3. "Claimant" means any Party having a Claim. 12.2.4. "Claim"means,except as exempted by the terms of this Article,any claim,grievance or dispute between one Party and another,regardless of how the same may have arisen or on what it might be based, including without limitation those arising out of or related to(i)the interpretation,application or enforcement of any of the Governing Documents or the rights,obligations and duties of any Party under any of the Governing Documents;(ii)the design or construction of improvements; (iii)any statements,representations, promises,warranties,or other communications made by or on behalf of any Party. 12.2.5. "Inspecting Party"means a Party causing an inspection of the Subject Property to be made. 12.2.6. "Respondent"means any Party against whom a Claimant asserts a Claim. 12.2.7. "Subject Property"means the property being inspected pursuant to the inspection right provided in Section 12.7 of this Declaration. 12.2.8. "Termination of Mediation"means a period of time expiring thirty(30) days after a mediator has been agreed upon by the parties(however,a mediator shall be selected no later than 45 days after the Claimant has given notice to the Respondent of the Claim and if the parties are unable to agree on a mediator,one shall be chosen by the AAA) and the matter has been submitted to mediation(or within such other time as determined by the mediator or agreed to by the Claimant and Respondent)and upon the expiration of which the Claimant and Respondent have not settled the Claim. 12.3. Approval Required for Association Actions. Except as provided in Section 12.6 below,the approval of seventy-five percent(75%)of a quorum (as provided in Section 12.4)of the Association votes cast by Members voting in person or by proxy at a meeting duly called for this purpose,or voting pursuant to written ballot,must be obtained before the Association shall have the power to institute action on any Claim pursuant to this Article,or to make any counterclaim or cross-claim in any lawsuit or other action brought against the Association. Such approval must be obtained in accordance with the requirements of Section 12.4. 12.4. Notice and Quorum for Association Actions. Written notice of any meeting of Members which includes a vote pursuant to Section 12.3 hereof shall be sent to all Members not less than thirty(30)days nor more than fifty(50)days in advance of the meeting. Such written notice,or if the vote is to be by written ballot then such written ballot, shall include the following information: 12.4.1. A statement regarding the nature of the Claim. Such statement shall include,without limitation,the name(s)of the proposed Respondent(s),the basis and reason for the Claim,and any other information necessary to adequately explain the nature of the proposed Claim; and 124 2_ A good-faith estimate of the costs and fees. including the fees of consultants. expert witnesses and attorneys, reasonably anticipated to he incurred by or for the Association in prosecuting the Claim. with such estimate prepared by the primary attorney the Board proposes to have prosecute the Claim on its behalf and 24 12.4.3. A statement advising Members that the costs and fees of prosecuting any Claim may substantially increase the amount of Assessments payable by the Owners to the Association;and 12.4.4. A good-faith estimate of the manner in which any moneys reasonably anticipated to be recovered from the Claim will be distributed or paid to consultants,expert witnesses,the Association, its attomey(s)and any others,prepared by the primary attorney the Board proposes to have prosecute the Claim on its behalf;and 12.4.5. A good faith estimate of the projected time frame for resolution of the Claim;and 12.4.6. All terms and provisions of the agreement between the Association and the attomey(s)the Board proposes to have prosecute the Claim. The presence of Members or of proxies,or if by ballot then receipt by the Association of written ballots,entitled to cast seventy-five percent(75%)of all of the Association votes,shall constitute a quorum at any meeting at which the Members vote on approval of any Claim the Association wishes to bring. 12.5. Required Form of Proxy or Ballot. Each written proxy,and each ballot,which purports to vote on,or authorize a vote on,approval of the Association bringing a Claim shall contain the following statement: Despite the fact that my annual Assessments may be significantly increased by the costs and fees associated with the proposed claim, I/we APPROVE the authority of the Association to bring such claim. 12.6. Exclusions from "Claim." Unless specifically exempted by this Article,all Claims between any of the Parties shall be subject to the provisions of this Article. Notwithstanding the foregoing, unless all Parties thereto otherwise agree, "Claim" does not include the following, whether such are brought by lawsuit,counterclaim or cross-claim and the same shall not be subject to the provisions of this Article: 12.6.1. An action by the Association to enforce the provisions of Article 4 of this Declaration(Covenant for Assessments);and 12.6.2. An action by the Association to obtain a temporary restraining order or injunction(or equivalent emergency equitable relief)and such other ancillary relief as the court may deem necessary in order to enforce any of the provisions of Article 10 of this Declaration(Restrictions)or of Article 5 of this Declaration(Architectural Review);and 12.6.3. any suit between or among Owners. which does not include Declarant_a Participating Builder or the Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Governing Documents: and am suit in which any indispensable party is not a Party. 25 12.7. Right to Inspect. Prior to any Party commencing any proceeding to which another Party is a party, including but not limited to an alleged defect of any Improvement,the Respondent shall have the right to be heard by the Claimant and, if any Claimant is the Association,by the Members,and to access, inspect, correct the condition of,or redesign any portion of any Improvement as to which a defect is alleged or otherwise correct the alleged dispute;provided,however,any correction to,or redesign of, an Improvement shall be made upon terms and conditions acceptable to all affected Parties. In the exercise of the inspection rights contained herein,the Inspecting Party shall: 12.7.1. Be careful to avoid unreasonable intrusion upon,or harm,damage or costs to the affected Party including,without limitation,using its best efforts to avoid causing any damage to,or interference with,any Improvements to the Subject Property; 12.7.2. Minimize any disruption or inconvenience to any person who occupies the Subject Property; 12.7.3. Remove daily all debris caused by the inspection and located on the Subject Property;and 12.7.4. In a reasonable and timely manner,at the sole cost and expense of the Inspecting Party,promptly remove all equipment and materials from the Subject Property and repair and replace all damage,and restore the Subject Property to the condition of the Subject Property as of the date of the inspection unless the Subject Property is to be immediately repaired. The Inspecting Party shall not permit any lien,claim or other encumbrance arising from the exercise of its right to inspect to accrue against or attach to the Subject Property. The Inspecting Party shall indemnify,defend, and hold harmless the affected Owners and their tenants,guests, employees and agents,against any and all liability, claims,demands, losses, costs and damages incurred, including court costs and attorneys'fees,resulting from any breach of this Section by the Inspecting Party. Section 12.8. Mandatory Procedures. 12.8.1. Good Faith Negotiations. The Parties shall make every reasonable effort to meet in person and confer for the purposes of resolving the Claim by good faith negotiation. Any Party may be represented by attorneys and independent consultants to assist such Party in negotiations and to attend meetings. 12.8.2. Notice. Prior to proceeding with any claim against a Respondent,each Claimant shall give a notice to each Respondent.which notice shall state plainly and concisely: 26 12.8.2.1. the nature of the Claim,including all persons involved and Respondent's role in the Claim; 12.8.2.2. the legal or contractual basis of the Claim(i.e.,the specific authority out of which the Claim arises);and 12.8.2.3. the specific relief and/or proposed remedy sought. 12.8.3. Mediation. 12.8.3.1. If the Parties do not resolve the Claim through negotiations within thirty days after submission of the Claim to the Respondent(s),Claimant shall have an additional thirty(30)days to submit the Claim to mediation under the auspices of the AAA in accordance with the AAA's Commercial or Construction Industry Mediation Rules,as appropriate. 12.8.3.2. If Claimant does not submit the Claim to mediation within such time,or does not appear for the mediation,Claimant shall be deemed to have waived the Claim,and Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim;provided,nothing herein shall release or discharge Respondent from any liability to any person other than the Claimant. 12.8.3.3. My settlement of the Claim through mediation shall be documented in writing by the mediator and signed by the Parties.If a Termination of Mediation occurs,the mediator shall issue a notice of Termination of Mediation. The Termination of Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was terminated. 12.8.3.4. Each Party shall bear its own costs of the mediation,including attorneys'fees,and each Party shall share equally all charges rendered by the mediator. 12.8.3.5. If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance with Section 12.8.3 and any Party thereafter fails to abide by the terms of such agreement,then any other Party may file suit or initiate arbitration proceedings to enforce such agreement without the need to again comply with the procedures set forth in Section 12.8. In such event,the Party taking action to enforce the agreement shall be entitled to recover from the non-complying Party(or if more than one non-complying Party,from all such Parties pro rata)all costs incurred in enforcing such agreement, including without limitation,attorneys' fees and court costs. 12 8.4. Binding Arbitration 12.8.4.1. l ipon termination of Mediation. if Claimant desires to pursue the Claim. Claimant shall thereafter be entitled to initiate final.binding arbitration 27 of the Claim under the auspices of the AAA in accordance with the AAA's Commercial or Construction Industry Arbitration Rules,as appropriate,subject to any Federal arbitration statutes and State arbitration statutes as applicable. Any judgment upon the award rendered by the arbitrator may be entered in and enforced by any court having jurisdiction over such Claim. Unless otherwise mutually agreed to by the parties to the Claim,there shall be one arbitrator who,to the extent feasible,shall have expertise in the area(s)of dispute,which may include legal expertise if legal issues are involved. 12.8.4.3 Each Party shall bear its own costs and expenses and an equal share of the arbitrator's and administrative fees of arbitration.Notwithstanding the foregoing,if a Parry unsuccessfully contests the validity or scope of arbitration in a court of law,the arbitrator or the court shall award reasonable attorneys'fees and expenses incurred in defending such contests,including those incurred in trial or on appeal,to the non-contesting Party.All decisions respecting the arbitrability of any Claim shall be decided by the arbitrator. 12.8.4.3 The award of the arbitrator shall be accompanied by detailed written findings of fact and conclusions of law.Except as may be required by law or for confirmation of an award,neither a party nor an arbitrator may disclose the existence,content,or results of any arbitration without the prior written consent of all parties to the Claim. 12.9. Liability for Failure of Association to Maintain an Action No director or officer of the Association shall be liable to any person for failure to institute or maintain or bring to conclusion a cause of action,mediation or arbitration for a Claim if the following criteria are satisfied: (i)the director or officer was acting within the scope of his or her duties;(ii)the director or officer was acting in good faith;and(iii)the act or omission was not willful,wanton or grossly negligent. 12.10. Severability. All provisions of this Article are severable.Invalidation of any of the provisions of this Article,by judgment,court order or otherwise, shall in no way affect or limit any other provisions of this Article which shall remain in full force and effect. 12.11. Amendment. Notwithstanding anything to the contrary contained in this Declaration,this Article 12 shall not be amended unless such amendment is approved by Members to which at least eighty percent(80%) of the votes in the Association are allocated. ARTICLE 13. GENERAL PROVISIONS 13 I Enforcement; Fines 13 1.1 Enforcement of the covenants. conditions. restrictions.easements. reservations,rights-of-way, liens. charges and other provisions contained in this 28 Declaration,the Articles of Incorporation,Bylaws or rules and regulations of the Association,as amended,may be by any proceeding at law or in equity against any Person(s)violating or attempting to violate any such provision. Except as otherwise provided in this Declaration,the Association and any aggrieved Owner shall have the right to institute,maintain and prosecute any such proceedings subject to Article 12 of this Declaration(Dispute Resolution).For each claim, including,but not limited to,counterclaims,cross claims and third-party claims, in any proceeding to enforce the provisions of CCIOA or of the Declaration,Articles of Incorporation,Bylaws or rules and regulations of the Association,the court shall award to the party prevailing on such claim the prevailing party's reasonable collection costs and attorney fees and costs incurred in asserting or defending the claim. Failure by the Association or any Owner to enforce any covenant,restriction or other provision herein contained,or any other provision of any of the aforesaid documents,shall in no event be deemed a waiver of the right to do so thereafter. 13.1.2. Subject to the following sentence,the Association shall have the right to levy and collect fines(as provided in Article 4 of this Declaration(Assessments))for the violation of any provision of any of the aforesaid documents. Prior to collection of any fines,the Association,the Board of Directors,or an authorized management company of the Association,shall mail a notice of violation to the Person(s)alleged to be in violation of any such provision and such notified Person(s) has a right to a hearing upon submission to the Board of Directors of a written request for hearing, which is properly signed by such Person(s)and dated,within ten(10)days after the notice of violation has been mailed or such other time as the Board of Directors may decide in its discretion from time to time;failure of a notified Person to request a hearing in writing within the required time period shall constitute a waiver of such right to a hearing. 13.2. Severability. All provisions of this Declaration,the Articles of Incorporation and Bylaws of the Association, are severable. Invalidation of any of the provisions of any such documents, by judgment,court order or otherwise, shall in no way affect or limit any other provisions which shall remain in full force and effect. 13.3. Conflict of Provisions. In case of any conflict between this Declaration and the Master Declaration,the Master Declaration shall control. In case of any conflict between this Declaration and the Articles of Incorporation or Bylaws of the Association,this Declaration shall control.In case of any conflict between the Articles of Incorporation and the Bylaws of the Association,the Articles of Incorporation shall control. 13.4. Conflict with CCIOA. In the event that any of the terms or provisions of this Declaration are in conflict or inconsistent with CCIOA,the terms or provisions of CCIOA shall control and govern. In case of any such conflict or inconsistency, the applicable terms and provisions contained in this Declaration shall_ to the extent possible_ be construed in accordance with CCIOA. and an'y 29 provisions regarding obligations to pay Assessments to the Association and any right to cast votes as Members,shall apply to annexed property immediately upon the effective date of the Annexation of Additional Land(which shall constitute the date of recording of the Annexation of Additional Land unless otherwise stated therein).The Declarant's right to annex the Annexable Area without approval shall terminate automatically when the Special Declarant Rights terminate,as provided in Section 1.30 of this Declaration. 13.5.5. Subsequent to the date of recording hereof,each Person(except a Builder)who purchases any portion of the property described on the attached Exhibit D ("Parcel"),will have agreed pursuant to applicable documents that such Parcel will be governed by this Declaration.The Declarant,therefore,reserves the right(but not the obligation)during the time period set forth in subsection 13.5.3 of this Section to annex the Parcel to the Declaration without further authorization from the Person(except a Builder) who has purchased such Parcel,even if such annexation occurs subsequent to conveyance of the Parcel by Declarant. 13.5.6. The property which is described on the attached Exhibit A and each portion of the Community which is annexed to this Declaration by the Declarant shall be subject to a right of withdrawal by the Declarant. Such withdrawal may be accomplished, if at all,in accordance with CCIOA.However,the Declarant's right to withdraw each such portion of the Community shall expire and terminate,as to each portion of the Community which has been annexed to this Declaration,upon the first conveyance of any Lot in such portion of the Community to any Person other than the Declarant,but in any event,no later than automatic termination of the Special Declarant Rights as provided in Section 1.30 hereof. Section 13.6. Subdivision or Replatting of Lots. The Declarant or the Association will not change the number of Lots in the Community. No Lot may be further subdivided from that existing at the time such Lot becomes subject to this Declaration. There will be no Replatting of the commons element. Section 13.7. Declarant's and Builder's Use. Notwithstanding anything to the contrary contained in this Declaration, it shall be expressly permissible and proper for Declarant, its employees, agents,and contractors, as well as any Builder (but only with the written consent of the Declarant),to perform such reasonable activities,and to maintain upon portions of the Lots and the Common Elements such facilities as Declarant deems reasonably necessary or incidental to the construction and sale of Lots and development and construction of Improvements.The foregoing includes,without limitation, locating,maintaining and relocating management offices, signs,model units and sales offices,in such numbers,of such sizes,and at such locations as it determines in its reasonable discretion from time to time. Further, nothing contained in this Declaration shall limit the rights of Declarant or require the Declarant to obtain approvals. 30 13.7.1.1. excavate,cut,fill or grade any property(with the consent of the Owner thereof)or to construct,alter,demolish or replace any Improvements;to use any Improvements on any property(with the consent of the Owner thereof)as a construction, management,model home or sales or leasing office in connection with the development, construction or sale of any property; and/or 13.7.1.2. to require Declarant to seek or obtain any approvals under this Declaration or any Supplemental Declaration for any such activity.Any real estate used as a sales office,management office,or a model,shall be a Lot or part of a Lot. 13.8. Duration, Revocation, and Amendment 13.8.1. Each and every provision of this Declaration shall run with and bind the land perpetually. Except as otherwise provided in this Declaration,this Declaration may be amended by a vote or agreement of Owners holding more than sixty-seven percent(67%)of the Allocated Interests;provided,however,while Declarant owns any portion of the property described on Exhibits A and D,no amendment may be made to this Declaration except with the affirmative vote or agreement of Members holding ninety percent(90%)of the Allocated Interests. 13.8.2. Every amendment,if any,to the Declaration must be done in compliance with CCIOA. 13.8.3. Notwithstanding anything to the contrary contained in this Declaration, the Declaration may be amended in whole or in part,at any time from time to time,by the Declarant without the consent or approval of any other Owner,any Security Interest Holder, or any other Person, in order to comply with the requirements,standards,or guidelines of any of the Agencies or of recognized secondary mortgage markets. Such right of amendment shall terminate automatically when the Special Declarant Rights terminate,as provided in Section 1.30 hereof. 13.8.4. Notwithstanding anything to the contrary contained in this Declaration, this Declaration,or any map or plat,may be amended in whole or in part,at any time from time to time,by the Declarant without the consent or approval of any other Owner,any Security Interest Holder,or any other Person, in order to correct clerical,typographical,or technical errors. Such right of amendment shall terminate automatically when the Special Declarant Rights terminate,as provided in Section 1.30 hereof. 13.8.5. Except as to amendments which may be made by the Declarant, amendments to the Declaration may be prepared,executed,recorded,and certified by any officer of the Association designated for that purpose or. in the absence of designation. by the president of the Association Such certification shall. in the case of an amendment requiring the approval of Owners.cerlifi that the Association has received the requisite 31 approvals.Amendments to this Declaration which may be made by the Declarant pursuant to this Declaration or as permitted by CCIOA,may be signed by the Declarant and shall require no other signatory. 13.8.6 Any Amendments to this Declaration that could be a burden to Weld County for maintaining any of the common elements must first be approved by the Weld County Board of County Commissioners. 13.9. Registration of Mailing Address. Each Owner and each Security Interest Holder, insurer or guarantor of a Security Interest,shall register his mailing address with the Association, and except for annual statements and other routine notices,all other notices or demands intended to be served upon an Owner,or upon a Security Interest Holder, insurer or guarantor of a Security Interest, shall be sent by either registered or certified mail, postage prepaid,addressed in the name of such Person at such registered mailing address. However, if any Owner fails to notify the Association of a registered address,then any notice or demand may be delivered or sent,as aforesaid,to such Owner at the address of such Owner's Lot. All notices, demands, or other notices intended to be served upon the Board of Directors or the Association during the 75% Control Period shall be sent by registered or certified mail, postage prepaid,JZM LLC 4200 Weld County Road 19,Fort Lupton CO. 80621, unless such address is changed by the Association during the 75%Control Period; subsequent to termination of the 75% Control Period,the Association shall notify the Owners of a different address for notices which may be done not less often than biannually with the office of the Colorado Secretary of State. 13.10. Termination of Community. The Community may be terminated only in accordance with CCIOA. 13.11. Transfer of Special Declarant Rights. A Special Declarant Right created or reserved under this Declaration may be transferred only by an instrument evidencing the transfer recorded in every county in which any portion of the Community is located,and in accordance with CCIOA. 13.12. Eminent Domain. The taking by eminent domain of a Lot(s)or Common Element(s),or any portion thereof, shall be done in accordance with applicable law, including without limitation CCIOA. 13.13. Limitation on Liability. The Association,the Board of Directors,the Architectural Review Committee,the Declarant, any Builder, and the officers, directors, members, partners, agents and employees of the same,shall not be liable to any Person for any action or for any failure to act unless the action or failure to act was not in good faith and was done or withheld with malice. The release and waiver set forth in Section 13.16 shall apply to this Section. 1 3.14. So Representations. Guarantees'or Warranties. No representations. guaranties or warranties of any kind. express or implied. shall he deemed to have been given or made by Declarant. the Association,the Board of Directors,the Architectural Review Committee, any Builder, or by any of their officers,directors, members,partners,agents or employees, in connection with any portion of the Community,or any 32 improvement,its or their physical condition,structural integrity, freedom from defects, zoning, compliance with applicable laws,fitness for intended use,or view,or in connection with the subdivision, sale,operation,maintenance,cost of maintenance,taxes or regulation thereof,unless and except as shall be specifically set forth in writing. The release and waiver set forth in Section 13.18 shall apply to this Section. 13.15. Disclaimer Regarding Safety. DECLARANT,THE BUILDERS,THE ASSOCIATION, THE BOARD OF DIRECTORS AND THE ARCHITECTURAL REVIEW COMMITTEE,AND THEIR OFFICERS,DIRECTORS, MEMBERS,PARTNERS, AGENTS AND EMPLOYEES,HEREBY DISCLAIM ANY OBLIGATION REGARDING THE SECURITY OF ANY PERSONS OR PROPERTY WITHIN THE COMMUNITY. BY ACCEPTING A DEED TO PROPERTY WITHIN THE COMMUNITY, EACH OWNER ACKNOWLEDGES THAT DECLARANT,THE BUILDERS,THE ASSOCIATION,THE BOARD OF DIRECTORS AND THE ARCHITECTURAL REVIEW COMMI I 1 EE,AND THEIR OFFICERS, DIRECTORS,MEMBERS,PARTNERS,AGENTS AND EMPLOYEES,ARE ONLY OBLIGATED TO DO THOSE ACTS SPECIFICALLY ENUMERATED HEREIN,OR IN THE ARTICLES OF INCORPORATION,BYLAWS AND RULES AND REGULATIONS OF THE ASSOCIATION, AND ARE NOT OBLIGATED TO DO ANY OTHER ACTS WITH RESPECT TO THE SAFETY OR PROTECTION OF PERSONS OR PROPERTY WITHIN THE COMMUNITY.THE RELEASE AND WAIVER SET FORTH IN SECTION 13.18 SHALL APPLY TO THIS SECTION. 13.16. Waiver. By acceptance of a deed to a Lot,each Owner hereby releases,waives,and discharges the Declarant,the Association,the Board of Directors,each Builder,and their respective officers,directors, members,partners,agents and employees,heirs, personal representatives, successors and assigns, from all losses,claims,liabilities,costs,expenses,and damages, arising directly or indirectly from any hazards, disclosures or risks set forth in this Declaration, including without limitation, Sections 10.17,13.14, 13.15, 13.16,13.17. 13.17. Headings. The Article, Section and subsection headings in this Declaration are inserted for convenience of reference only,do not constitute a part of this Declaration,and in no way define,describe or limit the scope or intent of this Declaration or any of the provisions hereof. 13.18. Gender. Unless the context requires a contrary construction,the singular shall include the plural and the plural the singular and the use of any gender shall be applicable to all genders. 13.19. Run with Land;Binding Upon Successors. The benefits, burdens and all other provisions contained in this Declaration shall be covenants running with and binding upon this Community and all real property and Improvements which are not now or hereafter become a part thereof. [he benefits, burdens and all other 33 Provisions contained in this Declaration shall be binding upon, and inure to the benefit of the Declarant, the Association and all Owners, and upon and to their respective heirs, personal representatives,successors and assigns. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) 34 ,N(m KERR-MCGEE ROCKY MOUNTAIN CORPORATION 1999 BROADWAY•SUITE 3600•DENVER,COLORADO 80202 PHONE 303/2963600 'Al( 3601 April 27, 2005 Mr. John Zadel 4200 Weld County Road 19 Fort Lupton, CO 80621 Re: Distant Thunder— Surface Use Agreement Township 1 North, Range 67 West, 6th P.M. Section 10: N/2SW/4 Weld County, Colorado Dear Mr. Zadel: Enclosed, please find a copy of the executed Surface Use Agreement between Kerr-McGee Rocky Mountain Corporation and JZM, LLC dated March 31, 2005 pertaining to the above described lands. The original Surface Use Agreement has been sent to Weld County for recording and Kerr-McGee will provide a copy to you upon receipt. You may contact me at 720-264-2638 should you have any questions. Very truly yours, Kerr-McGee Rocky Mountain Corporation Lisa M. Schiel Associate Land Analyst SURFACE USE AGREEMENT This Surface Use Agreement ("Agreement") is entered into and made effective this i day of March 2005, and is between Kerr McGee Rocky Mountain Corporation ("KMG") with an address of 1999 Broadway, Suite 3600, Denver, CO 80202, and JZM, LLC, with an address of 4200 Weld County Road 19, Fort Lupton, CO 80621, herein after referred to as "Surface Owner". A. Surface Owner owns the surface estate of that certain tract of land more particularly described on Exhibit "A" attached hereto, being the N/2SW/4 of Section 10, Township 1 North, Range 67 West, Weld County, Colorado (hereinafter referred to as the "Property"); B. Surface ownership of the Property is subject to the rights of the oil and gas mineral leasehold estate, which a portion is now owned by KMG; C. Surface Owner plans to develop the surface of the Property as a residential subdivision known as "Distant Thunder PUD"; D. KMG has the right to develop its oil and gas leasehold estate on the Property; and E. This Agreement sets forth the parties' rights and obligations regarding the relationship between the development of the Property by Surface Owner and KMG's operation and development of its oil and gas leasehold estate, such rights and obligations to be binding upon the parties' successors and assigns. In consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. AREAS RESERVED FOR FUTURE WELLS. Surface Owner shall provide KMG the areas designated on Exhibit "A" (the"Oil and Gas Operations Areas"), in its present condition, for any operations conducted by KMG in connection with Future Wells, including, but not limited to, production activities, workovers, well deepenings, recompletions, fracturing and replacement wells. Except for the area included within the Oil and Gas Operations Areas, and including the access roads and all access and necessary easements associated with flowlines, gathering lines and pipelines as provided in this Agreement, KMG shall not occupy the surface of the Property for any Future Wells except in the event of an emergency or for reasonable incidental, temporary and non-damaging activities, and KMG shall be strictly and solely responsible for any damages that may occur as a result of KMG's activity on such portions of the Property. 2. WELL LOCATIONS. KMG shall have the right to drill wells within the Oil and Gas Operations Areas, including horizontal and directional wells that produce from and drain lands other than the Property provided such lands are validly pooled with all or any portion of the lands included in KMG's oil and gas lease covering the Property, and so long as such locations are permitted locations under the then applicable well spacing regulations of the Colorado Oil and Gas Conservation Commission ("COGCC") or exceptions granted thereto by the Director of the COGCC, and the Surface Owner shall not protest or object to any such exception location. KMG shall not otherwise have the right to drill new wells on the Property. 3. SETBACK REQUIREMENTS AND WAIVERS. The Oil and Gas Operations Areas are more particularly described on the attached Exhibit "A". Surface Owner will not locate any building or structure within the Oil and Gas Operations Area. KMG's operations within the Oil and Gas Operations Areas shall include all reasonably necessary use of the surface, including access to such area as shall be mutually agreed upon by the Parties for use of the surface for maintenance, well deepenings, recompletions, workovers, fracturing and other production activities required for reasonably prudent operations of any wells drilled on the Property. Surface Owner understands and acknowledges that the COGCC has rules and regulations that apply to the distance between a wellhead and public roads, production facilities, building units and surface property lines, among other things. Surface Owner hereby waives all setback requirements in the COGCC Rule 603, or any successor rule or amendment to the COGCC setback rules, and to any other state or local setback requirements or other requirements or regulations that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of KMG its successors and assigns, to explore for and produce the oil and gas in accordance with this Agreement. Surface Owner understands, and should inform subsequent owners of the Property or any portion thereof, that KMG or its successors and assigns may cite the waiver in this paragraph in order to obtain a location requirement exception or variance under COGCC rules or from a local jurisdiction consistent with the operations within the Oil and Gas Operations Areas as contemplated by this Agreement. Surface Owner agrees not to object to the use of the surface in the Oil and Gas Operations Areas consistent with this Agreement and that it will provide KMG or its successors and assigns with whatever written support they may reasonably require to obtain permits from the COGCC or any local jurisdiction. KMG shall endeavor to diligently pursue any drilling operations to minimize the total time period and to avoid rig relocations or startup during the course of drilling. Surface Owner waives any objections to continuous (i.e., 24-hour) drilling operations. 4. ACCESS. Surface Owner shall provide to KMG all necessary easements for access to the Oil and Gas Operations Areas. Such access shall be mutually agreed upon by the Parties and shall be of sufficient scope to allow KMG to conduct any operations contemplated for the Future Wells. The access roads to be used by KMG will be those roads either that are in place or those that are anticipated to be constructed by Surface Owner at Surface Owner's sole cost and expense as part of Surface Owner's development of the Property. 5. BATTERIES AND EQUIPMENT. KMG shall have the right to locate, build, repair and maintain tanks. separators, dehydrators, compressors and other equipment reasonably appropriate for the operation and production of the Future Wells within the Oil and Gas Operations Areas on Exhibit"A". With respect to KMG's equipment and facilities other than flowlines: a. KMG shall install and maintain, at its sole cost and expense, all fences around Future Wells in compliance with the Rules and Regulations of the COGCC; b. KMG shall install and maintain, at its sole cost and expense, all gates and locks necessary for the security of any wells or facilities in the Oil and Gas Operations Areas. Such gates and locks shall be the standard gates and locks used by KMG ; c. KMG shall paint any production facilities for any wells, including wellhead guards, with paint that is approved by the COGCC; and d. Surface Owner shall not inhibit KMG's access to the Oil and Gas Operations Areas or inhibit ICMG's operations within the Oil and Gas Operation Areas by landscaping or other improvements, unless otherwise agreed upon between Surface Owner and KMG. 6. FLOWLINES AND PIPELINES. KMG shall have the right to replace any and all flowlines, gathering lines and pipelines for gas and liquids, including replacement of any future lines as provided herein, necessary in connection with KMG's production and transportation of oil and gas from any wells on the Property. All flowlines and pipelines shall be located at a depth of approximately 48 inches from the surface. The construction and burying of additional flowlines, gathering lines and pipelines shall be at the sole cost and expense of KMG or its gas purchaser. Should Surface Owner request any future or additional relocation of existing flowlines or pipelines, or request relocation of any flowlines or pipelines hereinafter constructed on the Property, and KMG agrees to such relocation, Surface Owner shall be responsible for any and all relocation costs. Surface Owner shall maintain a minimum of 48 inches and not more than 72 inches of cover over all pipelines and flowlines during any of Surface Owner's operations. 7. NOTICE OF FUTURE OPERATIONS. KMG shall provide at least seven days prior written notice to Surface Owner of any operations in connection with the reworking, fracturing, deepening or other operation on any Future Well or any replacement well; provided, however, that KMG shall provide at least 30 days prior written notice to Surface Owner of the initial drilling of any Future Well. Regardless of the foregoing notice requirements, KMG shall have immediate access in the event of an emergency. The notification of operations shall describe the following: 1. The proposed starting date for the proposed activity; 2. The proposed operations to be performed at the site; 3. The approximate duration of the proposed activities. Not less than five working days prior to KMG's mobilization on the applicable Oil and Gas Operations Areas, either KMG or Surface Owner may request an on-site meeting. The purpose of the meeting shall be to inform Surface Owner of the expected activity and to coordinate site access, hazards, barricades, restoration or any other issues that affect the use of and the safety of Surface Owner's development. 8. NOTICES TO HOMEOWNERS AND BUILDERS. Surface Owner shall furnish all buyers of the Property from Surface Owner with a plat or map showing the Oil and Gas Operations Areas. In addition, Surface Owner shall provide notice to all builders, homeowners and other buyers of the Property from Surface Owner and the homeowner associations that: a. Such buyers are not purchasing and do not own any interest in the oil and gas mineral estate; b. There may be ongoing oil and gas operations and production in the Oil and Gas Operations Areas on the surface of the Property; c. Future purchasers of all or a portion of the Property, as successors in interest to Surface Owner, will be acquiring a proportionate interest in Surface Owner's rights under this Agreement and assuming those obligations undertaken by Surface Owner pursuant to this Agreement; and d. Homeowner associations and buyers of individual lots or homes, as successors in interest to Surface Owner, will be acquiring a proportionate interest in Surface Owner's rights under this Agreement, and will be subject to the waivers contained in Sections 11 and 12 and the covenants contained in Section 3 prohibiting the location of any building or structure within the Oil and Gas Operations Areas and waiving objection to any setback rules of the COGCC or any local jurisdiction. 9. GOVERNMENTAL PROCEEDINGS. Surface Owner shall not oppose KMG in any agency or governmental proceedings, including but not limited to the COGCC, Weld County or other governing body proceedings, related to KMG's operations on the Property, including but not limited to drilling, workovers, well deepenings and recompletions, provided that KMG's position in such proceedings is consistent with this Agreement. 10. REPRESENTATIONS. Each party represents that it has the full right and authority to enter into this Agreement. KMG does not represent that it has rights to settle matters for all of the mineral owners in the Property. and this Agreement shall only apply to and bind the KMG leasehold interest in the property. 11. SUCCESSORS. The terms, covenants and conditions hereof shall be binding upon and shall inure to the benefit of the parties and their respective heirs, devises, executors, administrators, successors and assigns; provided, as to KMG, successors and assigns shall be deemed to be limited to lessees under the oil and gas leases which KMG owns. 12. TERM. This Agreement shall become effective when it is fully executed and shall remain in full force and effect until KMG's leasehold estate expires or is terminated, and KMG has plugged and abandoned all wells owned all or in part by KMG and complied with the requirements of all applicable oil and gas leases pertaining to removal of equipment, reclamation, cleanup and all other applicable provisions of the leases and existing laws and regulations. If Surface Owner does not obtain and record an approved plat covering the Property within two years of the date of this agreement, this agreement shall automatically terminate and become null and void. 13. NOTICES. Any notice or other communication required or permitted under this Agreement shall be sufficient if deposited in U.S. Mail,postage prepaid, addressed to each of the following: If to KMG: Ken McGee Rocky Mountain Corporation 1999 Broadway, Suite 3600 Denver, Colorado 80202 Attention: Director of Lands Denver Basin If to Surface Owner: JZM, LLC 4200 Weld County 19 Fort Lupton, CO 80621 Attention: John Zadel Any party may, by written notice so delivered to the other parties, change the address or individual to which delivery shall thereafter be made. 14. RECORDING. This Agreement, any amendment hereto, shall be recorded by KMG, which shall provide the other parties with a copy showing the recording information as soon as practicable thereafter. 15. SURFACE DAMAGES; WAIVER OF PAYMENTS. 15.1 In consideration of the Parties' respective rights, obligations and benefits, as outlined herein, this Agreement shall constitute the surface use or surface damage agreement provided for under the COGCC'sRules and Regulations or under any oil and gas lease covering the Property. 15.2 The term "surface damage payments" as used herein shall be given the meaning commonly used in the oil and gas industry. As part of the consideration for this limitation by KMG, of what would otherwise be the right to make reasonable use of any part of the Property in the conduct of its operations, KMG shall not be obligated to pay, and Surface Owner hereby waives any right to receive, any further surface damage payments, license or use fees including all damages provided for under any oil and gas lease or leases now or hereafter covering the Property, with respect to any operations conducted on the Oil and Gas Operations Areas or upon access roads, flowlines, gas gathering pipelines, or other easements used in connection with the Oil and Gas Operations Areas. KMG may provide a copy of this Agreement to the COGCC or to any local jurisdiction, person or entity or any court of law as evidence of this waiver. The waiver of surface damages provided herein shall include any claim for excessive surface use insofar as the Oil and Gas Operations Areas is used to produce oil and gas from any portion of the Property or other lands pooled therewith. In the event KMRMC is ever required to cross, occupy or utilize any part of the Property other than the Oil and Gas Operations Areas, the access roads thereto or any ROWs used in connection with the Oil and Gas Operations Areas, KMRMC shall be liable for any and all damages that may occur as a result thereof. 16. ARBITRATION. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be resolved by arbitration conducted in Denver, Colorado and shall be administered by the American Arbitration Association under its commercial rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. 17. APPLICABLE LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to its conflict of laws provisions. 18. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding among the parties hereto regarding the matters addressed herein, and supersedes any previous communications, representations or agreement, whether oral or written. This Agreement shall not be amended, except by written r' document signed by all parties. 19. EXECUTION AND BINDING EFFECT. This Agreement may be executed in any number of counterparts each of which shall be deemed an original instrument but all of which together shall constitute one and the same instrument, and shall be binding upon and inure to the benefit of the parties, and each of their respective heirs, executors, administrators, successors and assigns and is executed by the parties as of the Effective Date set forth above. The parties have executed this Agreement on the day and year first above written. KERR MCG t OCK OU AIN CORPORATION L By: JA ES P. WAS0N Atto •ey-in-Fa JZM,LLC JCIIIN W. ZADEL Manager ACKNOWLEDGMENTS STATE OF COLORADO ) CITY AND ) ss. COUNTY OF DENVER ) A;r, 1 The foregoing instrument was acknowledged before me this ilk day oflofarc&2005, by JAMES P. WASON, as Attorney-in-Fact for Ken McGee Rocky Mountain Corporation, on behalf of such corporation. Witness my hand and official seal. / �'711 ;�yPM'.S�HFy� /Notary Public r� I My Commission Expires: . S STATE OF COLORADO ) �►� AVElI.to%e Off' ) ss. ����F CO��r COUNTY OF WELD ) MyCommission Expires 03r15r1008 The foregoing instrument was acknowledged before me this .31 day of March 2005, by JOHN W. ZADEL as Manager of JZM, LLC, on behalf of said company. Witness my hand and official seal. ; °-()ha,riu LW c75 Notary Public My Commission Expires: .5 -,;J --.200 r- r ____,....,E 5 It 1.1 Id; It r.rsr wn w If Fill; .111110010.0 101•00•. ,/ 3 ____________________A1,' ...._ 1 § .�i „ PIAld i14 irfi tiro !J II 0 3 �-�_____ L i tilL 3 4 ;a r �_° if, '�ij1 1 11 'IIs� 4 IIIitif :iFit�i'r. ' a # III L r ', ;I WO' ii' 3 g i� ' *Ili Y Iii tliti,�lt 1 ! JI 4! I. lljil 1 ;� 1 �` < A I 0 ' E,: gip! WI t.11 I ) li i J R , '; li EJ"IP ��1" I gill I I ifllfl fi4\ J 1 /� A- ___ . ._,_____,,___ 6. , r er i tIll 1 I---r r--I-—-- ("sill ' ii: 1 Fi „ : .. .i r7 I , a iii 101 o G a lil , 'II : f• ,, 1,I ` ) " 4 S a I \ 1 1 1 +\-__-fM li E '^ '%-`1"PHi ‘::3:::.1\\,jii I 41 0:4 Air Of •- : \-r:...-- • . ZNI 11 "li yr : I . 1t1 ) 1.111110mti (.8, ,„-4/ -;.;1::::fili i!_ It! 1 f iiiiii,1 ii di t' arair•r�I 11-..-..-4...„......1 -j -� ltil t= i 11IIIII!I jtdi r lu ;-kli 11t �1 t V�`I .• l .--. 1 [ . j S NI A 1;lil ld ,1 d"Jll �l!,.�, � �.,,,! _ M 14. ; ; ;fir as II' Ili Ii le 2 I -F �-sv' I x�irlI.' r�� T f '+ al Ut 1 PO Ili IIll L :Y1N' t i'! I I '1 it L 2 r .., I Hill 1111 1111 111111 11111 OHE 681 3161681 03/15/2004 11.59A Weld County, CO 1 of 7 R 36.00 D 0.00 Steve Moreno Clerk& Recorder AGREEMENT pi THIS AGREEMENT is made and entered into this %/dt41ay of 2003, by and between JZM, LLC, hereinafter referred to as "Owner," and the CITY F DACONO, a municipal corporation of the State of Colorado, hereinafter referred to as "Dacono" or"City". WITNESSETH: WHEREAS, Owner is the owner of certain real property located in Weld County, Colorado, with a street address of 4200 Weld County Road 19, Ft. Lupton, CO 80621, and more particularly described and depicted on Exhibit "A" attached hereto and incorporated herein by reference(such property is hereinafter referred to as"the Property"); and WHEREAS, the Property is located within the Urban Growth Area of the City, as identified in the Interim Coordinated Planning Agreement among Weld County, the City of Dacono and the Towns of Firestone and Frederick(the "ICPA"); and WHEREAS, Owner has submitted to Weld County an application for approval of a large- lot residential subdivision to be located on the Property, which application is pending under Weld County Case No. S-600; and WHEREAS, as a condition of any such approval, and pursuant to the ICPA, the Owner is obligated to execute an annexation agreement with the City; and WHEREAS, the parties by this agreement desire to set forth their understanding with respect to annexation of the Property to the City; and WHEREAS, it is to the mutual benefit of the parties hereto to enter into the following Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE ABOVE PREMISES AND THE COVENANTS AS HEREINAFTER SET FORTH, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. Incorporation of Recitals. The parties confirm and incorporate the foregoing recitals into this Agreement. 2. Purpose. The purpose of this Agreement is to set forth certain terms and conditions with respect to annexation of the Property to the City. Except as expressly provided for herein to the contrary, all terms and conditions herein are in addition to any and all requirements concerning annexation and development contained in the City of Dacono Municipal Code, development 1 I 111111 11111 11111 11111 11111 111111 I I 1111111111 I I I I 3161681 03/15/2004 11:59A Weld County, CO 2 0l 7 R 36.00 D 0.00 Steve Moreno Clerk& Recorder regulations, and Comprehensive Plan, and the Municipal Annexation Act of 1965. as amended. C.R.S. §31-12-101 et seq. This Agreement shall not he construed to preclude further agreements concerning annexation of the Property to the City or the provision or financing of municipal services to the Property. 3. Annexation. Owner shall apply for and consent to the annexation of the Property to the City when requested in writing by the City Council, so long as the Property is eligible for annexation to the City. The Owner will also sign an annexation petition, or a petition for annexation election, when requested by the City Council, and will vote for annexation to the City if an annexation election relating to the Property is held. The City agrees it will not make any request to Owner under this Paragraph sooner than four years from the date of execution of this Agreement, unless sooner permitted pursuant to Paragraph 5. 4. Property to he Annexed. The Property the Owner shall annex to the City pursuant to this Agreement is the Property described on Exhibit A, attached hereto and incorporated herein by reference, or such portion thereof as the City may request. To facilitate any requested annexation of a portion of the Property, Owner hereby consents to the division of the Property for annexation purposes only,to the extent such consent is required by C.R.S. §31-12-105(1). Owner shall execute additional evidence of such consent upon request by the City. 5. Failure to Annex; Appointment of Attorney-in-Fact. In the event Owner fails to annex the Property to the City as required by this Agreement the City may, at is sole option and without otherwise limiting its legal rights, bring an action at law or equity, including an action for specific performance, to enforce Owner's obligations hereunder. Further, Owner, for themselves, their successors, transferees, heirs, and assigns hereby irrevocably appoint the City Administrator of Dacono as Owner's lawful attorney-in-fact for the purpose of signing any annexation petition or petition for annexation election, for voting in any annexation election, and for executing any and all other documents determined by the City to be necessary for annexation of the Property to the City. The City Administrator shall exercise the powers under this appointment only upon written request of the City Council, and only if the Owner and/or its successors, transferees, heirs and assigns have not signed a petition for annexation within thirty (30) days after receipt of a written request made pursuant to Paragraph 3. This power of attorney is granted and intended to be valid for the longest period of time permitted by state statute. In the event the state statute is amended to shorten the validity of this power of attorney to a period of less than five years, the City may exercise this power of attorney at any time prior to the expiration of the validity thereof, even if within the four- year waiting period set forth in Paragraph 3. The City may also require annexation of the Property at any time in the event the Property is used for purposes other than a large-lot residential subdivision as the same is proposed or may be approved by Weld County under Case No. S-600. 2 111111111111 Mil 111111 1111111111 11111 MINIM' 3161681 03/15/2004 11:59A Weld County, CO 3 of 7 R 36.00 0 0.00 Steve Moreno Clerk$ Recorder 6. Obligations Enforceable. The parties agree that this Agreement, pursuant to C.R.S. §31-12-121, constitutes an enforceable obligation upon the Owner, their successors, heirs. and assigns to annex the Property to the City under the terms hereof 7. Annexation Documents. When requested by the City, Owner shall provide at its expense a legal description, annexation petition, annexation maps, surveys, newspaper publications, and other reports and documents determined by Dacono to be necessary to accomplish the annexation of the Property to the City. Dacono shall prepare the annexation impact report. 8. Plat Note. Owner shall include on any subdivision plat for the Property a note stating as follows: "The property platted herein is subject to that certain Agreement regarding annexation to the City of Dacono which is recorded at Reception No. [Reception No of this Agreement will he inserted] of the records of the Weld County Clerk and Recorder. Such Agreement provides that the property platted herein may be annexed to the City of Dacono." 9. legislative Discretion. The Owner acknowledges that annexation of the Property is subject to the legislative discretion of the City Council of the City of Dacono. Nothing in this Agreement is intended or shall be construed to require the City to annex the Property or to initiate any annexation proceedings relating to the Property. 10. No Other Annexation. Under no circumstances shall the Property be annexed to another municipality without the prior written permission of the City Council, which may be granted or denied in the sole and absolute discretion of the City. 11. Covenants to Run with l.and/Rinding Effect. This Agreement and all covenants herein touch and concern the real property described in Exhibit A and shall be covenants running with the land. This Agreement shall be binding upon and inure to the benefit of the Owner and the City, and their respective heirs, transferees, successors, and assigns. This Agreement shall be recorded with the County Clerk of Weld County, Colorado, at Owner's expense. 12. No Repeal of Laws. Nothing contained in this Agreement shall constitute or be interpreted as a repeal of the City's ordinances or resolutions, or as a waiver of the City's legislative, governmental, or police powers to promote and protect the health, safety, and welfare of the City and its inhabitants. 13. Severability. The parties agree that if any part, term, portion, or provision of this Agreement is held by a court of competent jurisdiction to be illegal or in conflict with any law of the State of Colorado, the validity of the remaining parts, terms,portions, or provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular part, term,portion, or provision held to be invalid. 3 IIIIII BOHM 111111 11111 11111 111111 III 11111 t III! 3161681 03/15/2004 11:59A Weld County, CO 4 of 7 R 36.00 D 0.00 Steve Moreno Clerk & Recorder 14. Future Cooperation. The parties agree that they will cooperate with one another in accomplishing the terms, conditions, and provisions of the Agreement. and will execute such additional documents as necessary to effectuate the same. 15. Amendment. This Agreement may be amended only by mutual agreement of the City and Owner. Such amendments shall be in writing, shall be recorded with the County Clerk of Weld County, Colorado, shall be covenants running with the land, and shall be binding upon all persons or entities having an interest in the Property subject to the amendment unless otherwise specified in the amendment. 16. Entire Agreement. This Agreement embodies the entire agreement of the parties. There are no promises, terms, or obligations other than those contained herein, and this Agreement supersedes all previous communications, representations, or agreements, either verbal or written, between the parties. 17. Owner. As used in this Agreement, the term"Owner" shall include any of the heirs, successors, transferees or assigns of Owner, which include, but are not specifically limited to, owners of individual lots within the proposed subdivision of the Property. All such parties shall have the right to enforce this Agreement and shall be subject to the terms of this Agreement as if they were the original parties thereto. 18. Amendments to Law. As used in this Agreement, unless otherwise specifically provided herein, any reference to any provision of any City ordinance, resolution, regulation, or policy is intended to refer to any subsequent amendments or revisions to such City ordinance, resolution, regulation, or policy, and the parties agree such amendments or revisions shall be binding upon Owner. 19. Notice. All notices required under this Agreement shall be in writing and shall be hand-delivered or sent by facsimile transmission or registered or certified mail, return receipt requested, postage prepaid, to the addresses of the parties herein set forth. All notices by hand delivery shall be effective upon receipt. All facsimile transmissions shall be effective upon transmission receipt. All notices by mail shall be considered effective seventy-two (72) hours after deposit in the United States mail with the proper address as set forth below. Either party by notice so given may change the address to which future notices shall be sent. Notice to City: City of Dacono 512 Cherry Street P.O. Box 186 Dacono, CO 80514 4 11111111111111111��1111 59 W�111111 III lilt 1111 3161681 03/15/2004 A- eld County, 5 of 7 R 36.00 D 0.00 Steve Moreno Clerk C2, Recorder With copy to: Light, Harrington & Dawes. P.C. 1512 Larimer Street, #550 Denver, CO 80202 Notice to Owner: JZM, LLC 4200 Weld County Road 19 Ft. Lupton, CO 80621 20. Governing Law. The laws of the State of Colorado shall govern the validity, performance, and enforcement of this Agreement. Should either party institute legal suit or action for enforcement of any obligation contained herein, it is agreed that the venue of such suit or action shall be in Weld County, Colorado. 21. Headings. The paragraph headings in this Agreement shall not be used in the construction or interpretation hereof as they have no substantive effect and are for convenience only. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. CITY OF DACONO By: f Gtrli� , Wade Carlson, Mayor ATTEST: Nancy ElliottCity Clerk 5 1111111 11111 11111 111111 11111 11111 111111111 11111 3161681 03/15/2004 11:59A Weld County, CO 6 of 7 R 36.00 D 0.00 Steve Moreno Clerk& Recorder OWNER: JZM, LLC BY fr/ Zadel, ager ACKNOWLEDGEMENT STATE OF COLORADO ) )ss COUNTY OF //acil ) The above and foregoing signature of John Zadel as Manager of JZM, LLC was subscribed and sworn to before me this /5r,A. day of , Wte.a i 3z•®o=f. Witness my hand and official seal. My commission expires on: /1-1 3® Zo-o-5 eN (SEAL) Zia-r# if!7 '�'!�deb4' kt 08/13/2003 2:56 PM[kkh]F\Company Shared Folders\DeconoUnnex\a. mN.adel.doc r• 6 r 1111111111111111111111111111 1111111111 III 1111111111 I I 7 of 7 R 36.00 D 0.00 Steve Moreno Clerk& Record County, CO der EXHIBIT A Legal Description N } SW} SECTION 10, 'TOWNSHIP 1 NORTH, RANGE 67 WEST OF THE 6TH P.M. , WELD COUNTY, COLORADO. 7 Hello