Covenants

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AMENDED, RESTATED AND CONSOLIDATED DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS FOR HIGHLANDS 460 (FIRST THROUGH FIFTH FILINGS)

RECITALS

A. Highlands “460” Venture, a joint venture, (the “Declarant”) created the Highlands 460, First through Fifth Filings, community (“Community”) by recording the following documents of record in the real property records of Arapahoe County, Colorado:

Whereas, the “First Filing” community was created upon recordation of the following documents:

(1) Declaration of Covenants, Conditions and Restrictions recorded in Book 2553 at Page 161 at Reception No. 1614135 on February 22, 1977; and

(2) Amendment to the Declaration of Covenants, Conditions and Restrictions, First Filing, recorded February 22, 2007 at Reception No. B7022631;

(collectively, the “Original First Filing Declaration”).

Whereas, the “Second Filing” community was created upon recordation of the following documents:

(1) Declaration of Covenants, Conditions and Restrictions recorded in Book 2606 at Page 571 at Reception No. 1643790 on June 24, 1977;

(2) Declaration of Covenants, Conditions and Restrictions recorded on September 8, 1977 in Book 2646 at Page 324 at Reception No. 1665132; and

(3) Amendment to the Declaration of Covenants, Conditions and Restrictions, Second Filing, recorded June 22, 2007 at Reception No. B7080108;

(collectively, the “Original Second Filing Declaration”).

Whereas, the “Third Filing” community was created upon recordation of the following documents:

(1) Declaration of Covenants, Conditions and Restrictions recorded in Book 2631 at Page 106 at Reception No. 1656824 on August 9, 1977;

(2) Declaration of Covenants, Conditions and Restrictions recorded on September 8, 1977 in Book 2646 at Page 326 at Reception No. 1665134; and

(3) Amendment to the Declaration of Covenants, Conditions and Restrictions, Third Filing, recorded August 9, 2007 at Reception No. B7102816;

(collectively, the “Original Third Filing Declaration”).

Whereas, the “Fourth Filing” community was created upon recordation of the following documents:

(1) Declaration of Covenants, Conditions and Restrictions recorded in Book 2631 at Page 116 at Reception No. 1656825 on August 9, 1977;

(2) Declaration of Covenants, Conditions and Restrictions recorded on September 8, 1977 in Book 2646 at Page 325 at Reception No. 1665133;

(3) Declaration of Covenants, Conditions and Restrictions recorded on March 30, 1978 in Book 2749 at Page 225 at Reception No. 1721397;and

(4) Amendment to the Declaration of Covenants, Conditions and Restrictions, Fourth Filing, recorded August 9, 2007 at Reception No. B7102817;

(collectively, the “Original Fourth Filing Declaration”).

Whereas, the “Fifth Filing” community was created upon recordation of the following documents:

(1) Declaration of Covenants, Conditions and Restrictions recorded in Book 2765 at Page 756 at Reception No. 1730229 on April 28, 1978;

(2) Amendment to the Declaration of Covenants, Conditions and Restrictions, Fifth Filing, recorded April 28, 2008 at Reception No. B8048338;

(collectively, the “Original Fifth Filing Declaration”).

B. The Original First Filing, Second Filing, Third Filing, Fourth Filing, and Fifth Filing Declarations (collectively, the “Original Declarations”) all provide for and allow for this Amended, Restated, and Consolidated Declaration of Covenants, Conditions and Restrictions, First through Fifth Filings, (the “Consolidated Declaration”) in Article V, Section 3(b), which provide:

Any provision, covenant, condition, restriction or equitable servitude contained in this Declaration may be amended, revised, removed or repealed, in whole or in part, and new provisions, covenants, conditions, restrictions or equitable servitudes may be added, at any time and from time to time upon approval of at least 67% of all Owners in the Highlands 460 [First, Second, Third, Fourth, and Fifth] Filing community (the “Community”), provided, however, no amendment to this Declaration shall be permitted until at least November 1, 2008. Notice of any meeting at which a proposed amendment will be considered shall state the fact of consideration and the subject matter of the proposed amendment. The amendment or repeal shall be effective upon the recordation in the office of the Clerk and Recorder of Arapahoe County of a certificate setting forth the amendment in full and certifying that the amendment has been approved as set forth above.

C. The Owners within the Highlands 460 Community desire to amend, restate and consolidate the Original Declarations by virtue of this Consolidated Declaration, and intend, upon the recording of this Consolidated Declaration, that all prior recorded declarations, amendments and supplements thereto shall be superseded and replaced by this Consolidated Declaration.

D. All Owners are aware of the provisions of the Original Declarations allowing for amendment, by virtue of the record notice of the Original Declarations, by acts and disclosures, newsletters or notices of the Association and by other means.

E. The consolidation of the Original Declarations and the amendments contained within this Consolidated Declaration have been prepared and determined by the Association and by the Owners that have approved this Consolidated Declaration to be reasonable and not burdensome.

F. The purposes of this Consolidated Declaration are to consolidate the Original Declarations into one document and to remove and/or revise those provisions which are not legally enforceable or are no longer applicable to the Community.

G. Pursuant to the requirements set forth in Article V, Section 3(b) of the Original Declarations 67% of the Owners subject to each of the Original Declarations, by filing, have approved this Consolidated Declaration, or alternatively, a court order entered by the District Court for Arapahoe County, Colorado pursuant to C.R.S. §38-33.3-217(7), has been entered approving this Consolidated Declaration.

H. As amended and consolidated by this Consolidated Declaration, the Original Declarations are referred to as the “Declaration.”

NOW THEREFORE, the Original Declarations are all replaced and superceded by the covenants, servitudes, easements and restrictions set forth below:

ARTICLE I

DEFINITIONS

Section 1: “Committee” shall mean and refer to the Highlands 460 Covenant Review Committee, its successors and assigns.

Section 2: “Owner” shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any lot which is a part of the Properties including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

Section 3: “Properties” shall mean and refer to that certain real property hereinbefore described, and referred to as the Highlands 460 Community, more particularly described in Exhibit A attached hereto.

Section 4: “Lot” shall mean and refer to any plot of land shown upon any recorded subdivision map of the Properties, excluding roads, streets, etc.

Section 5: The “Association” shall mean and refer to Highlands 460 Civic Association, Inc., their successors and assigns.

ARTICLE II

COVENANT REVIEW

Section 1: Covenant Review Committee:

There is hereby created the Highlands 460 Covenant Review Committee, hereinafter referred to as “Committee” for the purpose of maintaining, within the Highlands 460 Community, a style and nature of design which is homogeneous to the area’s physical setting and existing dwellings.


Membership:

The Committee is composed of volunteer homeowners in good standing with the Association, approved by a majority vote of the Highlands 460 Board of Directors. The Board of Directors may also remove a homeowner from Committee membership, by majority vote.

The Committee shall adopt reasonable rules and regulations, fix the time and place of its regular meetings, appoint a chairman and secretary, and keep minutes of the meetings which shall be open for inspection by any Owner, upon approval of a member of the Committee.

All decisions of the Committee shall be by majority vote, provided that a majority of the Committee may designate a representative to act for it. The members of the Committee shall not be entitled to any compensation for services performed pursuant to this covenant. At any time, the then recorded Owners in good standing with the Association of a majority of the Lots shall have the power through a duly recorded written instrument to change the membership of the Committee, to increase or decrease its number, or to withdraw any member from the Committee.

It shall remain the prerogative and in the jurisdiction of the Committee to review applications and grant approval for exceptions to this Declaration. Variations and deviations from these requirements and restrictions may be made only when such exceptions, variations and deviations do not in any way detract from appearance and aesthetic qualities of the Properties, and are not in any way detrimental to the property values of individuals located in the vicinity or in any way detrimental to the general public health, safety or welfare.

Section 2: Control:

No Building, fence, wall, or other structure shall be erected or alterations made on any building until the construction plans and specifications regarding quality of workmanship, type of materials, and harmony of external design shall have been approved by the Committee. Also, a site plan shall be submitted to the Committee, for their approval, showing the location of said proposed structure with respect to topography, finish grade elevation and any existing structures on or adjacent to said building site. When requested, each Owner shall provide, at his cost, one complete set of house plans, specifications, site and grade plans, to the Committee at least thirty (30) days prior to the date actual construction is scheduled to commence on the residence.

Should the Committee fail to approve or disapprove the plans and specifications submitted to it by the Owner of a Lot in the Properties within thirty (30) days after written request thereof, then such approval shall not be required, provided, however that no building or other structure shall be erected or be allowed to remain on any Lot which violates any of the covenants or restrictions contained herein. The issuance of a building permit or license, which may be in contravention of these protective covenants, shall not prevent the Committee from enforcing these provisions.

ARTICLE III

USE RESTRICTIONS

Section 1: Residential Use:

No Lot or Lots embraced in the Properties shall be used for other than single family residence purpose, with the exception of a home business if it shows no outward appearance of a business. There shall not exist on any lot as shown on the plat recorded at the Arapahoe County Clerk and Recorder’s Office at any time more than one residence. All building or structures erected upon said property shall be of new construction.

Section 2: Building Standards:

All structures shall conform with the applicable building codes of Arapahoe County, Colorado and other appropriate governmental entities and agencies.

Section 3: Building Height:

The designated maximum building height shall be 35 feet or 2 stories. Building heights shall be considered as the vertical distance from the average finished ground level of the building site to the highest point of the structure directly above said ground level. The designated maximum building height requirements may be waived by the Committee when in their opinion, such structures relate to sound architectural planning and land use, and conform to the overall design and pattern of the development.

Section 4: Dwelling Cost, Quality, and Size:

No dwelling shall be permitted, including Lot, at a selling price of less than $50,000.00 based upon cost levels prevailing on the date these covenants are recorded, it being the intention and purpose of the covenant to assure that all dwellings shall be of a quality of workmanship and materials substantially the same or better than that which can be produced on the date these covenants are recorded at the minimum cost stated herein for the minimum permitted dwelling size. The ground floor area of the main structure, exclusive of one-story open porches and garages, shall not be less than 1500 square feet for a one-story dwelling, nor less than 1000 square feet for a dwelling of more than one story. All residences shall have adequate roofing, approved by the Committee, in keeping with the character of a weathered wood shake roof, and a minimum 2 car enclosed – attached garage.

Section 5: Building Location:

No building shall be located on any lot nearer to the front lot line or nearer to the side street line than the minimum building setback lines shown on the recorded plat and recorded Mixed Unit Development Plan. No dwelling shall be located on any interior lot nearer than 15 feet to the rear lot line. For the purposes of this covenant, eaves, steps and open porches shall not be considered as a part of a building, provided, however, that this shall not be construed to permit any portion of a building, on a lot to encroach upon another lot.

Section 6: Lot Area and Width:

No dwelling shall be erected or placed on any lot having a width of less than 30 feet at the minimum building setback line nor shall any dwelling be erected or placed on any lot having an area of less than 4500 square feet.

Section 7: Time for Construction:

At the time plans and specifications receive approval from the Committee, the prospective builder shall proceed diligently with construction of said building, and the same shall be ready for occupancy within a maximum period of six (6) months time from the date of commencement; excepting, however, that this period may be extended as may be deemed reasonable by the Committee if said extension is made necessary by reason of inclement weather, inability to obtain materials; strikes, acts of God, etc.

Section 8: Occupancy of Structures:

No structure shall be occupied or used for the purpose for which it was designed or built until the same shall be approved and/or inspected by the County Building Inspector or such other official designated by Arapahoe County. No structure erected upon any Lot shall be occupied in any manner while in the course of construction nor at any time prior to its being fully completed, as herein required.

Section 9: Building Exterior:

The exterior portions of all building shall have color mixed manufactured finished surface material, brick, stone, or shall be painted or stained upon completion so that all exposed surfaces shall have a finished appearance. The Committee will require a percentage of brick and or stone on all sides of each residential structure, however, in certain instances variations from this requirement will be allowed where particular architectural styles and designs would not lend itself to a brick exterior finish. Any variation must be approved by the Committee.

Section 10: Roof Mounted Units:

No TV Antennas, radio (CB, Ham) antennas, air-conditioning unit, evaporative cooler or object shall be placed upon the roof of any residence of building except or unless such air-conditioning unit is architecturally concealed from view and plans for concealment have been submitted to and approved by the Committee. This shall not preclude solar heating provided, however, the Committee must first approve the design and appearance of such heating plans. No free standing antennas will be allowed. Satellite dishes and equipment are not allowed, except as expressly permitted by state and federal law.

Section 11: Off-Street Parking:

At least two off-street parking spaces shall be required for each residence.

Section 12: Clearing of Trees and Grading:

Approval shall be obtained from the Committee to cut down, clear, or kill any trees on any Lot. Further, each and every grantee agrees that all the trees cleared by him will be disposed of in such a way that all Lots, whether vacant or occupied by a residence, shall be kept free of accumulations of brush, trash or other materials which may constitute a fire hazard or render a Lot unsightly, provided, however, that this shall not prohibit or restrict grantees from storing fireplace wood in neat stacks on their Lots. Under no circumstances shall the Owner of any Lot or parcel of land disturb the natural soil or grasses unless the Owner immediately thereafter constructs upon, paves, gravels, or replants such area with ground cover approved by the Committee. The ground may be cultivated for gardening, provided, however, that no garden is maintained for commercial purposes.

A grading plan shall be presented to the Committee for their approval prior to commencing construction of any residence unit on any Lot and no additional grading on any Lot shall be permitted without prior approval of the Committee.

Section 13: Unnatural Drainage:

Under no circumstances shall any Owner of any Lot or land parcel be permitted to deliberately alter the topographic conditions of his Lot or land parcel in any way that would permit unusual additional quantities of water from any source, except acts of god, to flow from his property onto any other property or public right of way. The elevation of a Lot shall not be changed so as to materially affect the surface elevation or grade of the surrounding Lots. No rock, gravel or clay shall be excavated or removed from any property for commercial purposes.

Section 14: Temporary Residences:

No structure of temporary character, no trailer, converted trailer, mobile home, basement, tent or accessory building shall be used on any Lot as a residence, temporarily or permanently, and no used structure of any sort shall be moved onto any Lot, except that the Committee may approve the use of trailers or mobile homes for a designated length of time, not to exceed sixteen (16) months, to be used solely for a construction headquarters during the construction of permanent residences.

Section 15: Sight distance at Intersection:

On corner lots, no planting of shrubs, trees or flowers or the erection of any fence or structure over 30 inches 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 25 feet from the intersection of the street lines, or in the case of a rounded property corner from the intersection of the street property lines extended.

Section 16: Nuisance:

Nothing shall be done or permitted on the Properties which many be or become an annoyance or nuisance to the subdivision development. No noxious or offensive activities or commercial business or trade shall be carried on or upon any Lot. No Lot shall be used in whole or in part for the storage of any property or thing that will cause such Lot to appear in an unclean or untidy condition or that will be obnoxious to the eye; nor shall any substance, thing, or materials emit foul or obnoxious odors, or that which will cause any noise that will or might disturb the peace, quiet, comfort, or serenity of the occupants of surrounding property.

Section 17: Garbage and Refuse Disposal:

No Lot shall be used or maintained as a dumping ground for rubbish. Trash, garbage, or other waste shall not be kept except in sanitary containers. All incinerators or other equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition.

Section 18: Walls and Fences:

No boundary wall or fence shall be constructed with a height of more than five feet and no boundary line hedge or shrubbery shall be permitted with a height of more than six feet. No wall or fence of any height shall be constructed on any Lot until after the height, type, design and approximate location therefore shall have been approved in writing by the Committee. The heights or elevations of any wall or fence shall be measured from the existing elevations of the property at or along the applicable points or lines. Any question as to such heights may be completely determined by the Committee. Only two (2) styles of fencing will be allowed internally. Copies of those two (2) styles are attached. Only style “B” shall be installed along South Colorado Blvd and East Dry Creek Road. Only style “C”, 4 feet high, shall be installed where any lot abuts East Mineral Ave. and South Monroe Way, and it shall be installed with the finished side facing East Mineral Ave. and South Monroe Way. Only style “C”, 5 feet high, shall be installed where any Lot abuts South Adams St. and it shall be installed with the finished side facing South Adams St. Internally style “A” or style “C” shall be installed. Style “C” can be either 4 feet or 5 feet high. All fences on lots abutting South Monroe Way and East Mineral Ave shall be installed in the Arapahoe County right of way immediately adjacent to the curb or sidewalk. If at a later date Arapahoe County should require the fence to be moved it shall be the responsibility of the homeowner, at his expense, to move the fence.

Section 19: Tanks, etc:

No elevated tanks of any kind shall be erected, placed, or permitted on any part of such premises, provided, that nothing herein shall prevent the permitting of the placing of tanks and other water system apparatus on the Properties. Any tanks for use in connection with any residence constructed on such premises, including tanks for the storage of fuels, must be buried or walled sufficiently to conceal them from the view from neighboring Lots, roads, or streets. All garbage cans, equipment, coolers, or storage piles shall be walled in to conceal them from the view of neighboring Lots, roads, or streets. Plans for all enclosures of this nature must be approved by the Committee prior to construction.

Section 20: Signs:

No sign of any character shall be displayed or placed upon any of the Lots in the Properties except those permitted by state and federal law, and one professional sign of not more than four square feet in area per side advertising the property for sale, house numbers, occupant’s name or signs used by a builder to advertise the property during any construction or sales period. All signs are subject to the approval of the Committee.

Section 21: Subdivision of Lots:

None of the Lots shall at any time be divided, subdivided or re-subdivided unless said division, subdivision or re-subdivision is permitted under the regulations, codes and ordinances of the County of Arapahoe, State of Colorado. In the event of said division, all property thereunder shall be subject to all other provisions hereof.

Section 22: Livestock and Poultry:

No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any lot, except that dogs, cats or other household pets may be kept provided that they are not kept, bred, or maintained for any commercial purposes.

Section 23: Mining:

No derrick or other structure designed for use in boring for oil or natural gas shall be erected, placed, or permitted upon any part of such premises, nor shall any oil, natural gas, petroleum, asphaltum, or hydrocarbon products, water or minerals of any kind be produced or extracted therefrom, except the Willows Water District who shall have the right to extract water from beneath the surface of the land.

Section 24: Street Lighting:

All Lots are subject to and bound by Public Service Company (or its successor) tariffs which are now and may in the future be filed with the Public Utilities Commission of the State of Colorado relating to street lighting in this subdivision, together with rates, rules and regulations therein provided and subject to all future amendments and changes thereto. The owner or owners shall pay as billed a portion of the cost of public street lighting in the subdivision according to Public Service Company (or its successor) rates, rules and regulations, including future amendments and changes on file with the Public Utilities Commission of the State of Colorado.

Section 25: Trailers, Boats and Motor Homes:

Absolutely no trailer, boat, motor home, mobile home, camper or similar recreational vehicle shall be stored, maintained or used in the street, front yard, or driveway of any dwelling. Subject to prior approval of the Committee, said vehicles may be stored in the rear or side yard provided adequate access is available, adequate fencing or screening is constructed to screen the vehicle from view, and the fencing or screening is also approved by the Committee.

Section 26: Repair of Automobiles, Trucks or other vehicles:

No repair of any vehicles shall take place in the front yard, on front drive, or in the street in front of any house and no repair shall take place in rear or side yard unless screened from view, adequate access is available, and fencing or screening is also approved by the Committee.

ARTICLE IV

EASEMENTS

Section 1: Easements:

Easements for installation and maintenance of utilities and drainage facilities are reserved as shown on the recorded plat of Highlands 460 First, Second, Third, Fourth, and Fifth Filings and subsequent utility easements of Public Record at Arapahoe County. Within these easements, no structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities, or which may change the direction of flow of drainage channels in the easements, or which may obstruct or retard the flow of water through drainage channels in the easements. The easement area of each lot and all improvements in it shall be maintained continuously by the owner of the lot, except for those improvements for which a public authority or utility company is responsible.

ARTICLE V

GENERAL PROVISIONS

Section 1: Enforcement:

The Committee, or any Owner, shall have the right to enforce, by a proceeding at law or in equity, all restrictions, conditions, covenants and reservations, now or hereafter imposed by the provisions of this Declaration. Failure by the Committee or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 2: Severability:

Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.

Section 3: Term and Amendment of Declaration.

(a) Term. The covenants and restrictions of this Declaration shall run with and bind the land in perpetuity.

(b) Amendment of Declaration by Owners. Any provision, covenant, condition, restriction or equitable servitude contained in this Declaration may be amended, revised, removed or repealed, in whole or in part, and new provisions, covenants, conditions, restrictions or equitable servitudes may be added, at any time and from time to time upon approval of at least 67% of all Owners in the Highlands 460 Community, provided, however, no amendment to this Declaration shall be permitted until at least November 1, 2008. Notice of any meeting at which a proposed amendment will be considered shall state the fact of consideration and the subject matter of the proposed amendment. The amendment or repeal shall be effective upon the recordation in the office of the Clerk and Recorder of Arapahoe County of a certificate setting forth the amendment in full and certifying that the amendment has been approved as set forth above, and containing the written consent and approval of the property owners.

(c) Amendment of Declaration by the Board of Directors. The Board of Directors of the Highlands 460 Civic Association shall have the authority to amend, revise, remove, or repeal any provision of this Declaration, or add new provisions, covenants, conditions, restrictions, or equitable servitudes to this Declaration, at any time and from time to time, without Owner approval, in order to conform to any applicable state, city or federal law.

Section 4: Gender and Grammar:

The singular wherever used herein shall be construed to mean the plural when applicable, and the necessary grammatical changes required to make the provisions hereof apply either to corporations or individuals, men or women, shall in all cases be assumed as though in each case fully expressed.

IN WITNESS WHEREOF, the undersigned, being the president and the secretary of Highlands 460 Civic Association, Inc. hereby certify that 67% of the Owners subject to each of the Original Declarations, by filing, have approved this Consolidated Declaration, or alternatively, a court order entered by the District Court for Arapahoe County, Colorado pursuant to C.R.S. §38-33.3-217(7), has been entered approving this Consolidated Declaration.

HIGHLANDS 460 CIVIC ASSOCIATION, INC.,

a Colorado nonprofit corporation

By:____________________________________

President

By:____________________________________

Secretary

STATE OF COLORADO )

) ss.

COUNTY OF _____________ )

The foregoing was acknowledged before me this _____ day of ___________________, 20___, by _________________________________, as President, of Highlands 460 Civic Association, Inc., a Colorado nonprofit corporation.

Witness my hand and official seal.

My commission expires: ______________________________.

__________________________________________

Notary Public

STATE OF COLORADO )

) ss.

COUNTY OF _____________ )

The foregoing was acknowledged before me this _____ day of ___________________, 20___, by __________________________________, as Secretary of Highlands 460 Civic Association, Inc., a Colorado nonprofit corporation.

Witness my hand and official seal.

My commission expires: __________________

_________________________________________

Notary Public

EXHIBIT A

PROPERTY


Highlands 460, First Filing except lettered parcels “A” and “B” inclusive;

Highlands 460, Second Filing except lettered parcels “A”, “B”, and “C” inclusive;

Highlands 460, Third Filing;

Highlands 460, Fourth Filing; and

Highlands 460, Fifth Filing, except Tracts A, B, C, D, and E;

County of Arapahoe, State of Colorado.