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WHEN RECORDED, RETURN TO:

EAGLES NEST PARTNERSHIP, LLP
JOHN E. THOMPSON, Managing General Partner 
P.O. Box 1563
Cortez, Colorado 81321

FIRST AMENDED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

EAGLES NEST

KNOW ALL MEN BY THESE PRESENTS:

WHEREAS, this Declaration amends the Declaration of Covenants, Conditions and Restrictions recorded May 22, 2000.

WHEREAS, EAGLES NEST PARTNERSHIP, LLP. (hereinafter "EAGLES NEST") are the owners of the following described subdivision real property, situated within the County of Montezuma, State of Colorado:

TRACT I: S/2SW/4 of Section 3, Township 36 North, Range 17 West, N.M.P.M., less and except the N/2SW/4SW/4 of Section 3, Township 36 North, Range 17 West, N.M.P.M.

TRACT II: N/2SW/4 of Section 3, Township 36 North, Range 17 West, N.M.P.M., less and except the S/2NW/4SW/4 of Section 3, Township 36 North, Range 17 West, N.M.P.M.

TRACT III: NW/4 of Section 10, Township 36 North, Range 17 West, N.M.P.M.

EXCEPT the South Half of the Northwest Quarter of the Southwest Quarter and the North Half of the Southwest Quarter of the Southwest Quarter of Section 3, Township 36 North, Range 17 West, N.M.P.M., except any portion thereof lying in and being used as a county road.

EXCEPT that portion commonly referred to as WedMont Golf Links, which is specifically excluded from the Subdivision real property. The legal metes and bounds will be inserted when available from Maness & Associates, after completion of the final Plat of Survey of the Subdivision. This real property known as WedMont Golf Links is owned and operated independently from EAGLES NEST DEVELOPMENT.

         WHEREAS, EAGLES NEST will convey the said properties, subject to certain protective covenants, conditions, restrictions, reservations, liens and charges as hereinafter set forth:

          NOW, THEREFORE, EAGLES NEST (referred to herein as "Declarant") hereby declares that all of the subject properties described above shall be held, sold and conveyed subject to the following easements, restrictions, covenants, and conditions, all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of the real property, and all of which are hereby declared to be for the benefit of all of the property described herein and the owners thereof, their heirs, successors, grantees and assigns.

1. PURPOSE OF THESE RESTRICTIONS, COVENANTS AND CONDITIONS

The purpose of these restrictions, covenants and conditions is to assure the use of the property for attractive residential purposes (as set forth herein) only, and securing to each lot owner the full benefit and enjoyment of his or her lot and home in furtherance of a common plan.

2. DEFINITIONS

As used herein, the following terms have the following meanings:

A. The "Architectural Control Committee" means the committee provided for in Part 5 of this Declaration.

B. The "Association" means EAGLES NEST Property Owners Association as referred to in Part 5 of this Declaration.

C. "Bona Fide First Mortgage" means any Realty Mortgage or Deed of Trust made in good faith and for value and properly executed and recorded so as to create a lien on any lot or lots that is prior to the lien of any other Realty Mortgage or Deed of Trust.

D. "Declaration" means this Declaration of Covenants, Conditions and Restrictions for EAGLES NEST.

E. "Building Envelope" means the approximate 10,000 square foot area located within a designated Lot wherein the Owner may erect a building.

F. "Out Building" means barns, corrals, equipment storage sheds, smoke houses and any other buildings of this nature.

G. "Fencing" and/or "Hedge Row" mean any containment using wood, chainlink, logs or plantings to create separation from other Lots or within a Lot.

H. The "Lot" or "Lots" means the lots in the subdivision either individually or collectively, as the case may be.

I. "Mobile Home" means a moveable or portable unit for residential purposes constructed to be towed on its own chassis and designed to be installed with or without a permanent foundation for human occupancy as a residence.

J. "Owner" shall mean and refer to the record Owner, whether one or more persons or entities of fee or equitable or beneficial title to any Lot. Owner shall include the purchaser of a Lot under an executory contract for purchase. The foregoing definition does not include persons or entities that hold an interest in any Lot as security for the performance of an obligation.

K. The "Plat" means the plat of record referred to above, as may hereafter be amended.

L. The "Property" means the real property described above or any part thereof.

3. PROPERTY OWNERS ASSOCIATION

A. There is hereby created EAGLES NEST Property Owners Association. The purpose of the Association is to: maintain and repair the Family Sports Complex and storage parcel lots in addition to the entryway, landscaping and open areas, including any entryway and landscaping replacements, as further defined in Part 6.G.; maintain and repair easements created for roads and paths, being the common driveways as shown on the subdivision plat; and maintain, repair and fence, as determined to be necessary by the Association, hiking paths so designated on the subdivision plat; maintain any subdivision perimeter fences created by the Architectural Control Committee in accordance with the provisions of Part 5 of this Declaration.

B. Each and every Lot Owner, in accepting a deed or contract for any Lot, whether or not it shall be so expressed in such deed of contract, automatically becomes a member of the Association, and agrees to be bound by such reasonable rules and regulations as may, from time to time, be established by the Association. Membership shall be appurtenant and may not be separated from ownership of the Lot. The rights and obligations of an Owner and membership in the Association shall not be assigned, transferred, pledged, conveyed or alienated in any way, except upon transfer of ownership of such Lot, whether by intestate succession, testamentary disposition, foreclosure of a mortgage, or such other legal processes as now in effect or as may be hereafter established pursuant to the laws of the State of Colorado. The Association shall be operated and conducted on a strictly cooperative and non-profit basis. Each Lot Owner as a member shall have such voting rights as set forth in this Declaration.

C. In furtherance of its purposes; which are generally set forth above, the Association shall provide necessary and appropriate action for the maintenance, repair, replacement and management of the facilities referred to in Paragraph A above. It shall have the right to enter upon a Lot, if reasonably necessary, in order to accomplish its purpose, excluding WedMont Golf Links, separately owned, and not a part of the Subdivision.

D. The Association shall have the power to borrow and encumber its assets, in all respects, shall have the powers necessary to carry out its purposes, whether or not specifically set forth herein, including the power to enter into contracts with third parties to perform all or part of its functions, and to hire its own employees to do so.

E. Each Lot Owner is obligated to pay: (I) regular assessments for normal maintenance and repair and reserves, along with Association insurance and operating costs; (ii) special assessments for capital improvements with such assessments to be established by the Association. The regular and any special assessments, late payment penalties and charges, if any, together with interest, (all as set by the Association) costs and reasonable attorneys fees, shall be a lien on the Lot. Each Lot Owner shall be personally responsible for his or her share of assessments imposed by the Association.

F. The Association shall, on an annual basis, make a determination as to the estimated costs of the repair, maintenance, and replacements of the entryway improvements and landscaping, driveways and hiking paths, and any other common areas as shown on the plat as noted in Paragraph "A" of this Section, including any reserves necessary for future capital expenditures and maintenance. Assessments shall be charged to each Owner on a uniform per Lot basis. The assessments may be collected on a monthly, quarterly, or annual basis, or any combination of same as determined by the Association.

G. Each Owner shall be responsible to pay the regular assessment commencing on the first day of the month following the date of recordation of the deed or purchase contract wherein the Owner acquired legal, beneficial, or equitable title to the Lot. The Declarant shall not be responsible for comparable assessments on each Lot owned by it. However, Declarant shall be responsible to provide labor, material and/or monies in sufficient amounts, not to exceed the amount of the normal lot assessment for each lot owned by it, if necessary in Declarant's opinion, to properly fulfill the Association's maintenance responsibilities. Regular assessments shall be set by the Association on an annual calendar year basis. The initial regular assessment shall be Four Hundred Twenty Dollars ($420.00) Dollars per year, payable in monthly installments of Thirty-Five ($35.00) Dollars. The Lot Owner acquiring his or her interest from Declarant during the calendar year shall be obligated for a pro rata portion thereof. The Association shall fix the amount of the regular assessment at least thirty (30) days prior to the end of the calendar year. Written notice of the assessment shall be sent to every Owner. The lot assessment payment is due monthly, at the first of each month, as established by the Association.

H. In addition to the regular assessment as set forth above, the Association may set special assessments if the Association determines by two-third's ownership vote that such is necessary to meet the primary purposes of the Association.

I. All sums assessed by the Association chargeable to a Lot, but unpaid, shall constitute a lien on such Lot prior to all other liens excepting only ad valorem liens in favor of a governmental assessing unit or special assessment district. The Association lien may be foreclosed by the Association in a like manner as a foreclosure of a real property deed of trust. The Association shall have the power to bid on the delinquent Lot at a foreclosure sale, and acquire, hold, lease, encumber and convey same. A suit to recover a money judgment for unpaid assessments and charges shall be maintainable by the Association without foreclosing or waiving a lien securing/ same.

J. The total number of votes in the Association shall be on the basis of one (1) vote per lot, provided, the Declarant shall have three (3) votes for each lot it owns. The total number of Lots and therefore the total number of votes may be increased from time to time by expansion of the subdivision as evidenced by a Supplemental Declaration, incorporating this Declaration, executed and recorded by Declarant. Unless otherwise specifically provided herein, all Association matters shall be determined by a majority vote. If more than one party is the Owner of a Lot, there must be unanimous agreement among those who own an interest in the Lot as to how they cast that Lot's vote, otherwise, that vote shall not be counted.

K. The Association shall have the power to adopt Bylaws and to appoint its officers and directors, as well as promulgate reasonable regulations relating to the matters within its purpose.

L. Where the holder of a first mortgage of record obtains title to the Lot as a result of foreclosure, or deed in lieu of foreclosure, of said first mortgage, such acquirer of title, its successors and assigns, shall be liable for the share of the expenses of the assessments by the Association chargeable to such Lot which became due prior to the acquisition of title to such Lot by such acquirer. As used in this Declaration, the term "mortgage" shall include "deed of trust" and "mortgagee" shall include the "Beneficiary" under a deed of trust. Additionally, such acquirer shall be responsible, as any Owner, for assessments charged subsequent to the acquisition.

M. In the event the Association determines that any Lot Owner has not complied with the provisions of this Declaration, then the Association may, at its option, give written notice to the Owner of the conditions complained of; the Owner shall correct same within fifteen (15) days after notice from the Association. The Association shall approve or disapprove any plans submitted by the Owners and set forth a reasonable time for correction of the condition complained of if not capable of being completed within 15 days. In the event such condition is not corrected according to the approved plans, within the allotted time, the Association shall have the right to undertake to remedy such condition or violation asserted. The cost thereof shall be deemed to be an assessment to such Owner and enforceable by the Association as if any other unpaid assessment. The Association is hereby granted the right of entry on the affected Lot to correct the condition or violation asserted.

N. The Owner has been advised by the Developer that there are potentially numerous locations on the Property of an Archaeological nature, specifically referred to herein as "ruin sites". While the exact nature and specific locations of these ruins are unknown, it is understood that these ruin sites may include, but are not limited to habitation sites, kivas and burial sites. State law governs the disruption or destruction of any ruin site deemed to be a "burial site". Questions regarding the nature of such a find are best directed to local archaeological expertise. In the event there is a discovery of some form of ruins, steps should be taken to determine the extent of the ruin site and whether the building envelope for the particular parcel may need to be relocated within the lot lines of said parcel.

4. ARCHITECTURAL AND DESIGN CONTROL

No lot leveling, excavation, grading, planting, landscaping, residence, or other improvement or installation shall be commenced, erected, placed, or altered on any Lot until the plans and specifications therefore showing the nature, kind, shape, materials, floor plans, and locations shall have been submitted to and approved by the Architectural Control Committee ("Committee") and a copy thereof is finally approved and lodged permanently with the Committee. The Committee shall have the right to refuse to approve any such plans or specifications which are not suitable or desirable in its opinion for aesthetic reasons, or not in accordance with the overall theme of EAGLES NEST, or any other reason, and in so passing upon such plans and specifications it shall have the right to take into consideration the suitability of the proposed residence, and the material which is to be used, the site upon which it is proposed to be erected, the harmony with the surroundings, and the effect of the proposed structure on the outlook from adjacent or neighboring property. All plans must comply with Montezuma County requirements.

A. Membership. The Committee shall be initially composed of EAGLES NEST PARTNERSHIP, LLP, JOHN E. THOMPSON, Managing General Partner, its successors and assigns. When seventy-five (75%) percent of the Lots (including any additional phases incorporated into this Declaration) have been sold by the Declarant, then the function of the Committee shall be assigned to the Association. Prior to assignment to the Association, the Declarant shall have the responsibility to appoint and remove Committee members. The members of the Committee shall not be entitled to any compensation for services performed pursuant to this covenant, but shall be entitled to reimbursement for reasonable costs expended, as approved in advance by the Association. The members of the Committee shall incur no liability from their acts or omissions. The Committee shall at no time be composed of more than three (3) members.

B. Procedure. The Committee's approval or disapproval as required in this Declaration shall be in writing. Actions of the Committee shall be by the majority vote of the members of the Committee. All decisions of the Committee shall be final and no Lot Owner or other party shall have recourse against the Committee or its designated representatives, or its members, for its disapproval or refusal to approve. In the event the Committee or its designated representative fails to approve or disapprove within sixty (60) days after the plans and specifications have been submitted to it, the plans and specifications shall be deemed to have been approved.

5. GENERAL RESTRICTIONS APPLICABLE TO ALL LOTS.

A. Land Use. No building other than one single family dwelling residence and a private garage not to exceed 3 cars and a guest house or servants quarters as approved by the Architectural Control Committee, and as are in compliance with applicable zoning, shall be erected, maintained, placed or permitted on any Lot within the designated Building Envelope. No improvements may be commenced without the appropriate building permits having been first obtained. A guest house may not be completed prior to the completion of the single-family residential structure. Any guest house, which may include a kitchen, or servants quarters, shall be for the use of bona fide guests or servants, as the case may be, or the occupants of the main residence, or members of such occupants family, and shall not be rented or leased separate from the main residence.

No manufacturing or commercial enterprise, or enterprises of any kind for profit or non-profit shall be maintained upon, in front of, or in connection with any Lot, nor shall any Lot be used for other than strictly single family residential structure or purpose without the prior written approval of the Association.

No residential Lot shall be resubdivided into smaller Lots other than those Lots shown or delineated on the original recorded plat, but 2 or more Lots may be used as one building site. In the latter instance, the Architectural Committee will approve the new building envelope or modifications thereto.

B. Completion Time. Construction of a residence shall be finished and completed in a reasonable time, but not more than twelve (12) months after commencement.

C. Minimum Size. Any single family residential structure or approved improvement placed upon any Lot shall be constructed from new material or its equivalent, and as may be approved by the Committee. Any residential structure located on a Lot less than 4.00 acres, excluding a guest house, shall contain a minimum of one thousand five hundred (1500) square feet of living area exclusive of carport, garage, open porches and patio, unless specifically approved by the Association. Any residential structure located on a Lot more than 4.00 acres, excluding a guest house, shall contain a minimum of two thousand five hundred (2500) square feet of living area exclusive of carport, garage, open porches and patio, unless specifically approved by the Association.

D. Location. No improvements (including landscaping) shall be erected or placed on any Lot outside of the designated building envelope, as shown on the map, without approval of the Architectural Control Committee. It being understood that the building envelope lines and all other use restrictions contained in this Declaration are in addition to zoning and other land use regulations adopted by governmental authorities and the more restrictive must be followed.

E. Equipment. No equipment such as tractors, backhoes, trailers or farm equipment shall be permitted on any Lot at any time, other than during construction and as required for construction. Any such equipment must be stored either offsite or in the designated storage area.

F. Mobile Homes. Mobile homes shall not be permitted to be placed on any Lot, permanently or temporarily.

G. Temporary Structures. No structure of a temporary character, motor home, recreational vehicle or travel trailer, regardless of its nature or form, shall be used as a residence at any time, nor parked on the Lot. Any motor home, recreational vehicle or travel trailer will only be permitted to park in the designated storage area for EAGLES NEST.

H. Entryway and Landscaping. Entryway, common landscaping areas, open areas if any, not part of specific lots, and hiking paths as designated on the subdivision plat, whether as separate parcels or easements, shall be the sole responsibility of the Association to maintain, repair and reconstruct as set forth in Part 3 of this Declaration. The Declarant shall have the right to convey any such easements and/or common area parcels to the Association. Planting of any shrub or tree must be approved by the Architectural Committee. Views of other Lot Owners is a major consideration of acceptability.

I. Signs. No signs or billboards used as advertising or promotional device, except those used in the sale of Lots in the subdivision by Declarant for the sale or rental of property by the Owner(s) or his or her agent shall be placed on any Lot, or portion thereof.

J. Public Events. No public events shall be held at the subdivision, without the prior approval of the Association.

K. Livestock and Poultry. No horses, livestock or poultry shall be allowed under any circumstances. Only normal household pets in reasonable numbers shall be allowed. No pet shall be allowed that creates a hazard or nuisance to Owners of other Lots in the subdivision. No kennels of any kind shall be permitted.

L. Garbage and Refuse Disposal. No Lot shall be used or maintained as dumping ground for rubbish. Trash, garbage, or other waste shall not be kept on any Lot and will be regularly and promptly removed. All equipment for the storage of such material shall be kept in a clean and sanitary condition. No outdoor burning of trash shall be permitted on any Lot under any circumstances. No stockpiling of any materials, except during construction, shall be permitted.

M. Individual Sewage Systems. Individual sewage disposal systems to serve the Lot shall be permitted on the Lot. All individual sewage systems shall be constructed to Colorado Department of Environmental Quality and Montezuma County Health department standards. No sewage disposal system shall be installed without first obtaining a Health Department Sewage Disposal Permit. All sewage systems shall be kept as not to disturb surrounding neighbors and/or Property with offensive odors and/or sight, and located so as to minimize grading and/or disturbance to existing vegetation.

N. Protective Screening. All permitted equipment, propane tanks, and wood piles shall be kept screened by adequate planting shall be located contiguous to residence so as to conceal them from view of neighboring Lots or streets. Hedges or shrubs not exceeding three (3) feet in height may be planted. Any planting done on a Lot must be within the building envelope as designated. Dog runs, if erected, shall be of chain link and located tangential to the residence and within the building envelope. Outdoor clotheslines are not permitted.

O. Parking and Storage . Boats, boat trailers, camping trailers, campers, travel trailers, or any other recreational vehicles, sporting or camping equipment shall not be stored or parked on the Property. Such parking will only be permitted in the designated storage area. This includes utility trailers and any other equipment not considered a "passenger vehicle."

P. Antennas . No antenna whatsoever, or large satellite dish will be allowed. The Architectural Control Committee shall have the final decision on any dispute. A normal TV antenna must be installed in the attic of the house. A small satellite dish will be permitted installed directly on the building. No free-standing antennas or satellite dishes will be permitted.

Q. Nuisances. No Lot Owner shall place or maintain any animate or inanimate object upon any Lot so as to create a nuisance to the Owners of the neighboring Lots. Upon written notification to the Lot Owner of the existence of a nuisance, the Lot Owner will have ten (10) days to remove the nuisance. In the event the Lot Owner does not remove the nuisance, it will be removed by the Association, at the Lot Owner's expense.

R. Land Clearing. Beyond the building envelope, there shall be no clearing of the land (removal of trees, natural vegetation, or brush) without approval of the Architectural Control Committee. It is the intent of Eagles Nest to maintain a natural setting within the subdivision, to the greatest extent possible. Additionally, the Lot Owner will be responsible for "normal weed abatement" as proscribed by the Association.

S. Spark Arresters. Absolutely no fireplace will be approved by the Architectural Control Committee without appropriate arrester equipment.

6. GENERAL PROVISIONS

A. COVENANTS: The covenants, restrictions, reservations, conditions and servitudes contained in this Declaration shall run with the land and shall be binding upon all persons owning, leasing, subleasing or occupying any Lot or Lots after the date on which this instrument shall have been recorded in the Office of the County Recorder of Montezuma County, State of Colorado. The covenants, restrictions, reservations, conditions and servitudes may be enforced by the Owner or lessee of any Lot, by the holder of a Bona Fide First Mortgage on any Lot, by the Association, any one or more of said persons acting jointly; provided, however, that any breach by reasons thereof shall not defeat or adversely affect the lien of a Bona Fide First Mortgage upon any Lot, but each and all said covenants, restrictions, reservations, conditions and servitudes may be enjoined, abated or remedied by appropriate proceedings, notwithstanding the lien or existence of any such Bona Fide First Mortgage. All instruments of conveyance or assignment of any interest in all or any part of the Property shall refer to this instrument and shall be subject to the covenants, restrictions, reservations, conditions and servitudes herein contained as fully as though this instrument were therein set forth in full provided, however, that the terms and conditions of this instrument shall be binding upon all persons affected by its terms, whether express reference is made to this instrument or not.

B. Invalidity. Invalidation of any of these covenants, restrictions, reservations, conditions and servitudes by judgment, court order, or otherwise shall in no way affect the validity of any of the other provisions of this Declaration, all of which shall remain in full force and effect.

C. Amendments. This Declaration may be amended during the period ending ten (10) years immediately following the date of the recording of this Declaration only by instrument executed by the Owners of at least seventy percent (70%) of the Lots, included or incorporated within this Declaration, and such amendment shall not be effective until the recording of such instrument. Thereafter, this Declaration may be amended by instrument executed by the Owners of at least two-thirds (2/3) of the Lots, included or incorporated within this Declaration, and such amendment shall not be effective until the recording of such instrument.

D. Term. The covenants, conditions, restrictions and servitudes of this Declaration, as the same may hereafter be amended in accordance with the terms hereof, shall remain in full force and effect for a term of twenty (20) years from and after the date of recording of this Declaration, from which time they shall be automatically renewed and extended for successive periods of ten (10) years each, unless terminated as of the end of such initial twenty (20) years or any successive ten (10) within the six (6) month period immediately preceding the expiration of such initial period, or any renewal period, by an instrument of termination executed and acknowledged by the Owners of at least two-thirds of the Lots, included or incorporated within this Declaration, and recorded in the Office of the Montezuma County Recorder.

IN WITNESS WHEREOF, EAGLES NEST PARTNERSHIP, LLP has executed this First Amended Declaration of Restrictions by the undersigned this 16th day of October, 2000.

______________________________ 
JOHN E. THOMPSON, Managing General Partner

STATE OF COLORADO               ) 
                                                        ) ss
 COUNTY OF MONTEZUMA      )

On October 16, 2000, before me, a Notary Public, personally appeared JOHN E. THOMPSON, Managing General Partner of EAGLES NEST PARTNERSHIP, LLP., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity.

WITNESS my hand and official seal.

_______________________________

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