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06-09-2004 TRAER CREEK-RP LLC EASEMENTS WITH COVENANTS AND RESTRICTIONS AFFECTING LAND (''ECR'')RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Michael J. Repucci, Esq. Johnson & Repucci LLP 2521 Broadway, Suite A Boulder, Colorado 80304 EASEMENTS WITH COVENANTS AND RESTRICTIONS AFFECTING LAND "ECR" THIS ECR is made and entered into effective as of the Yth day of Tune 2004, by TRAER CREEK-RP LLC, a Colorado limited liability company ("Declarant"), which has an address of P.O. Box 640, Vail, Colorado 81658. WITNESSETH: WHEREAS, Declarant is the Fee Owner (as that term is hereinafter defined) of all of that certain real property located in the Town of Avon, County of Eagle, State of Colorado legally described as Tract A ("Tract A"), Tract B ("Tract BT), Tract D ("Tract D"), Tract E ("Tract E"), Tract F ("Tract F"), Tract G ("Tract G"), and Tract H ("Tract H"), The Village (at Avon) Filing 3, according to the plat thereof recorded No. 2004 at Reception of the Eagle County, Colorado real property records (the "Final Plat"). There is no Tract C on the Final Plat; and WHEREAS, Declarant may or will convey to Traer Creek Metropolitan District, a quasi- municipal corporation and political subdivision of the State of Colorado (the 'District"), or to one or more -other governmental or quasi-governmental entities, in one or more separate conveyances, fee title to Tracts A, B, D, E, F and G for the purpose of.developing the same, as applicable, with roadways, community facilities, and community parks and related access, drainage, utility, landscape, maintenance, and recreation path easement areas, systems, facilities 16681/Traer Version 10 Clean 1 June 10, 2004 and improvements, all in accordance with the terms of that certain "Annexation and Development Agreement", dated October 13, 1998, and recorded November 25, 1998 at Reception No. 677743 of the Eagle County, Colorado real property records, as amended (the "Annexation Agreement"), "The Village (at Avon) PUD Guide", including all tables, plans, exhibits and maps attached to or incorporated into such guide, recorded November 25, 1998 at Reception No. 677744 of the aforesaid real property records, as the same may be supplemented, amended and/or restated from time to time (the "P="), and one or more subdivision improvements agreements (each, an "SIX), by and among Declarant, the District, and the Town of Avon, a Colorado municipal corporation ("Avon"); and WHEREAS, Tract H is reserved by Declarant for future development of the same in accordance with the terms of the Annexation Agreement, the PUD Guide, the PUD Development Plan, as amended, and this ECR; and WHEREAS, Tracts A, B, D, E, F, G and H . are sometimes hereinafter collectively referred to as the "Pro e There is no Tract C included in the Property; and WHEREAS, Declarant desires to subject the Property to certain uniform covenants, conditions, restrictions, limitations, reservations, easements, rights of way, liens, charges and other protective and beneficial provisions set forth herein in order to implement a uniform, general and common plan designed to preserve, protect and enhance the value, desirability and attractiveness of the Property for the benefit of all subsequent "Owners" (as that term is hereinafter defined) of interests in the Property. 16681/Traer Version 10 Clean 2 June 10, 2004 DECLARATION NOW, THEREFORE, Declarant declares as follows: 1. Definitions. In addition to the other defined terms contained in this ECR, the following terms used in this ECR shall have the meanings set forth below: a. "Building Areas" shall mean those portions of Tract H shown on the Final Plat which are not located within either a building setback area or a designated easement parcel. b. "Conveyance of Roadwa Tract" shall mean that certain "Conveyance of Roadway Tract" by and between Declarant and the District recorded contemporaneously with recordation of this ECR in the Eagle County, Colorado real property records, pursuant to which Declarant will convey to the District fee title to Tract D, and a non-exclusive easement interest in and to the "Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements" (as that term is hereinafter defined). At such time as Declarant may determine to convey fee title to, or other easement interests on, over, across, upon and through, Tracts A, B, E, F, and/or G to the District or to one or more other governmental or quasi-governmental entities, Declarant will complete such conveyance or conveyances by one or more separate conveyance instruments. C. "Fee Owner" shall mean any person or entity that owns fee simple title to any portion of the Property. d. "Leasehold Owner" shall mean any person or entity that holds a leasehold interest in and to any portion of the Property. e. "Lot" or "Lots" shall mean any portion of Tract H which is later subdivided into a Lot or Lots, as the context may require, in accordance with the terms of the Annexation Agreement and the PUD Guide. 16681/Traer Version 10 Clean 3 June 10, 2004 f "Owner" shall mean, unless the context clearly means otherwise, each Fee Owner and Leasehold Owner. g. "Tract" or "Tracts" shall mean Tracts A, B, D, E, F, G and H as the context may require. There is no Tract C. 2. Use. Tracts A and G shall be used solely for community park and natural open space purposes, together with utility, drainage, roadway maintenance, and recreation path easement purposes in those areas of each of Tracts A and G as are indicated on the Final Plat for the location of such easements, all in accordance with the Annexation Agreement and the PUD Guide, and as further limited by the terms specified in the Conveyance of Roadway Tract. Tracts B, E and F shall be used solely for community park purposes, together with access, utility, drainage, roadway maintenance, landscape and recreation path easement purposes in those areas of each of Tracts B, E and F as are indicated on the Final Plat for the location of such easements, as applicable, all in accordance with the Annexation Agreement and the PUD Guide, and as further limited by the terms specified in the Conveyance of Roadway Tract. Tract D shall be used solely for roadway purposes, as further limited by the terms specified in the Conveyance of Roadway Tract. Tract H is reserved by Declarant for future development in accordance with the terms of this ECR and the development rights associated with each respective Planning Area located, within the boundaries of Tract H as more particularly described and defined in the Annexation Agreement, the PUD Guide, and the PUD Development Plan, as amended. Without limiting the generality of the foregoing, Tract H shall be used for residential single-family housing, residential multi-family housing, commercial and retail uses, natural open space, a school site, and other permitted uses and purposes, including, without limitation, access, utility, drainage collection, transmission and detention, and recreational trail systems, facilities and 16681/Traer Version 10 Clean 4 June 10, 2004 improvements therein and thereon, all in accordance with the terms of the Annexation Agreement, the PUD Guide, the PUD Development Plan, as amended, and this ECR. 3. Grant of Easements. a. The following easements benefit all Fee Owners of Tracts A, B, D, E, F and G, and Declarant so long as it owns any portion of Tract H, and their respective agents, licensees and designees: (1) Tracts A E and G Utilily, Drainage,- Roadway Maintenance and Recreation Path. Easements. (i) Declarant hereby establishes and reserves two (2) nonexclusive easements of varying width in the locations indicated on the Final Plat over, upon, across and through Tracts A, E and G for utility, drainage, roadway maintenance, and recreation path easement purposes, including a right of ingress, egress and access to such easements, for the purposes of installing, constructing, operating, repairing, replacing and maintaining utility, drainage and recreation path systems, facilities and improvements, and for the purposes of installing, constructing, operating, repairing, replacing and maintaining the roadway systems, facilities and improvements located within Tract D, and for the purposes of conveying on- and off-Property drainage water, including surface water, groundwater and storm water, across and through the Property to on- and off-Property drainage detention and transmission systems, facilities and improvements (the "Tracts A, E and G Utility Drainage Roadway Maintenance and Recreation Path Easements"). Notwithstanding any subsequent conveyance of fee title to Tract A, Tract E and/or Tract G to any person or entity, the owner(s) of the Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements reserve the sole and exclusive right to grant to others (or consent in writing to any grants made by the Fee Owner of 16681/Traer Version 10 Clean 5 June 10, 2004 Tract A, Tract E and/or Tract G) the right to use any of the systems, facilities and improvements now or hereafter constructed over, upon, across and through Tract A, Tract E and/or Tract G. The improved surfaces of the Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements hereby established and granted shall only be used for the purposes for which they were constructed. Without limiting the generality of the foregoing and except as may be required for the maintenance, repair or replacement of subsurface infrastructure improvements, the improved surfaces of the easements may only be used for pedestrian and recreational ingress, egress and access purposes. (ii) At such time as Declarant conveys to the District fee title to Tracts A, E and G, Declarant will convey the same pursuant to one or more conveyance instruments that will specify that the conveyance of such Tracts is subject to Declarant's reserved Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements. Pursuant to the terms of the SIA, the District shall be solely responsible and obligated, at its sole cost and expense, to complete, among other infrastructure improvements, all utility, drainage, recreation path, community park and other infrastructure improvements to be located within Tracts A, E and G and the Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements in accordance with the terms and conditions of the SIA. Following preliminary acceptance of the infrastructure improvements located within Tracts A, E and G and the Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements by Avon, the District shall thereafter be responsible for the maintenance, repair and replacement of all surface and subsurface improvements located within Tracts A, E and G. In no event shall Declarant's conveyance to the District of fee title to Tracts A, E and G result in or be deemed to cause an extinguishment of any of the easements created by this ECR, including, without 6 16681/Traer Version 10 Clean June 10, 2004 limitation, the Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements, or be deemed to cause a merger of any of the easements created by this ECR into fee title to Tract A, Tract E or Tract G. Declarant reserves the sole and exclusive right to grant to the District by separate instrument all or any portion of Declarant's reserved interest in the Tracts A, E and G Utility, Drainage, Roadway Maintenance and Recreation Path Easements. (2) Tract F Access Drainage, Utility and Landscape Easement. (i) Declarant hereby establishes and reserves a nonexclusive easement of varying width in the location indicated on the Final Plat over, upon, across and through Tract F for access, drainage, utility and landscape easement purposes, including a right of ingress, egress and access to such easement, for the purposes of installing, constructing, operating, repairing, replacing and maintaining access, drainage, utility and landscape systems, facilities and improvements, and for the purposes of conveying on- and off-Property drainage water, including surface water, groundwater and storm water, across and through the Property to on- and off-Property drainage detention and transmission systems, facilities and improvements (the "Tract F Access Drainage Utility and Landscape Easement"). Notwithstanding any subsequent conveyance of fee title to Tract F to any person or entity, the owner(s) of the Tract F Access, Drainage, Utility and Landscape Easement reserve the sole and exclusive right to grant to others (or consent in writing to any grants made by the Fee Owner of Tract F the right to use any of the systems, facilities and improvements now or hereafter constructed over, upon, across and through Tract F. The improved surfaces of the Tract F Access, Drainage, Utility and Landscape Easement hereby established and granted shall only be used for the purposes for which they were constructed. Without limiting the generality of the foregoing and except as may be required for the maintenance, repair or replacement of subsurface infrastructure 7 16681/Traer Version 10 Clean June 10, 2004 improvements, the improved surfaces of the easements may only be used for vehicular, pedestrian and recreational ingress, egress and access purposes. (ii) At such time as Declarant conveys to the District fee title to Tract F, Declarant will convey the same pursuant to a conveyance instrument that will specify that the conveyance of Tract F is subject to Declarant's reserved Tract F Access, Drainage, Utility and Landscape Easement. Pursuant to the terms of the SIA, the District shall be solely responsible and obligated, at its sole cost and expense, to complete, among other infrastructure improvements, all access, drainage, utility, landscape, community park and other infrastructure improvements to be located within Tract F and the Tract F Access, Drainage, Utility and Landscape Easement in accordance with the terms and conditions of the SIA. Following preliminary acceptance of the infrastructure improvements located within Tract F and Tract F Access, Drainage, Utility and Landscape Easement by Avon, the District shall thereafter be responsible for the maintenance, repair and replacement of all surface and subsurface improvements located within Tract F, including, without limitation, snow removal, so that the Tract F Access, Drainage, Utility and Landscape Easement provides continuous, open and uninterrupted ingress, egress and access to, through and across Tract F for the Fee Owners of the Property and their respective successors, assigns and designees, except for temporary periods reasonably necessary for the maintenance, repair or replacement of the improvements located within the Tract F Access, Drainage, Utility and Landscape Easement. In no event shall Declarant's conveyance to the District of fee title to Tract F result in or be deemed to cause an extinguishment of any of the easements created by this ECR, including, without limitation, the Tract F Access, Drainage, Utility and Landscape Easement, or be deemed to cause a merger of any of the easements created by this ECR into fee title to Tract F. Declarant reserves the sole 16681/Traer Version 10 Clean 8 June 10, 2004 and exclusive right to grant to the District by separate instrument all or any portion of Declarant's reserved interest in the Tract F Access, Drainage, Utility and Landscape Easement. (3) Blanket Easement for General P oses. Declarant hereby establishes and reserves a nonexclusive blanket easement over all of the Tracts and Lots for construction, installation, maintenance, repair and replacement of all roadway, pedestrian path, retaining wall, utility and drainage improvements of any kind, type or sort constructed on any adjacent Tract or Lot, including, without limitation, an easement for all lateral and subjacent supports, systems, facilities, anchors, and pinnings, and all cuts and fills, associated with the construction and installation of any such improvements. b. Certain Easements Deemed Inclusive of Additional Easement Rights. All access easements described in this ECR are also permitted to be used for utilities and drainage purposes, all utility easements described in this ECR are also permitted to be used for drainage purposes, and all drainage easements described in this ECR are also permitted to be used for utility purposes. C. No Dedication of Easements. No person or entity shall have any right to use any of the easements described in this Section 3 without the prior written consent of Declarant being first obtained in each instance. Nothing contained in this Agreement shall be deemed to be a dedication of any portion of the easements described in this Section 3, or any interest in the land parcels over, upon, across and through which such easements are hereby established and granted to the general public, or to any other purpose or entity, or for the general public or for any public or private purpose whatsoever; it being the intent of the parties that such easements and land parcels shall continue to be private unless and until Declarant, at its sole option and election, completes the dedication of such interests, if ever, to an eligible 16681/Traer Version 10 Clean 9 June 10, 2004 governmental or quasi-governmental entity or other third party in accordance with all applicable laws, rules, regulations and ordinances. 4. Development, Maintenance and Taxes. a. Development. (1) Arrangement. No buildings or structures shall be erected on any Lot except within the Building Areas shown on the Final Plat or any subsequent replat of the Property, or any portion thereof, depicted on the Final Plat which replat is approved and recorded in accordance with the Annexation Agreement and the PUD Guide. No Owner of any Lot may alter the arrangement of the Building Areas without the prior written consent of the Design Review Board in accordance with the Design Guidelines promulgated pursuant to The Village (at Avon) PUD Guide, which consent may be withheld in its sole and absolute discretion. (2) Timing of Development. The Owners, their successors, successors-in-interest, and assigns, by acceptance of a deed or leasehold interest in any portion of the Property, acknowledge that the development of the Property and each of the Lots is to occur over time, and that there may be certain inconveniences until all construction activities on all of the Property are completed (including, but not limited to, dust, noise, traffic disturbances, temporary closure of roadways and parking facilities and unsightliness). In addition, each Owner, their successors, successors-in-interest, and assigns, understand and acknowledge that .the plans of Declarant or others for development of the Property and the plans of Declarant or others for the development of other adjacent and nearby real property are all contingent upon circumstances beyond the control of Declarant and such other third parties, including, but not limited to, agreements with and approval from third parties (such as, by way of example, regulatory approvals from governmental entities and design review approvals) and general 16681/Traer Version 10 Clean 10 June 10, 2004 economic conditions. Consequently, by acceptance of a deed or leasehold interest in any portion of the Property, EACH OWNER, FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, HEREBY WAIVES ALL CLAIMS AGAINST ONE ANOTHER FOR ANY COSTS, LOSSES OR OCCURRENCES ARISING OUT OF OR ASSOCIATED WITH PHASED CONSTRUCTION ACTIVITIES AND THE ASSOCIATED DISRUPTIONS AND INCONVENIENCES RELATING TO THE DEVELOPMENT OF THE PROPERTY AND/OR ADJOINING OR NEARBY PROPERTIES WHICH ARE REASONABLY NECESSARY FOR THE DEVELOPMENT OF THE SAME AND ARE LIMITED TO A REASONABLE DURATIONAL PERIOD, AS WELL AS ANY REASONABLE DELAYS OR CHANGES IN, OR CESSATION OF, DEVELOPMENT OF SUCH PROJECTS AT ANY TIME. b. Operation and Maintenance of Property and Improvements. (1) Standards. Subject to the terms of Section 3 concerning the maintenance of easements and the improvements located therein, following completion of improvements on any portion of the Lots and Tracts, each Fee Owner shall be responsible for operating and maintaining, and paying for the cost and expense of operating and maintaining, the improvements located on their respective Lots or Tracts in good condition and repair. The operation and maintenance is to include, without limitation, the following: (a) Maintaining all hard surfaces located on the Lot or Tract owned or controlled by such Fee Owner in a level, smooth and evenly-covered condition with the type of surfacing material originally installed or such substitute as shall.in all respects be equal in quality and use; 16681/Traer Version 10 Clean 11 June 10, 2004 (b) Removing all papers, ice and snow, mud and sand, debris, filth and refuse and thoroughly sweeping the Lot or Tract owned or controlled by such Fee Owner to the extent reasonably necessary to keep the area in a clean and orderly condition. (c) Maintaining all perimeter and exterior building roofs and walls, including, but not limited to, all retaining walls located on the Lot or Tract owned or controlled by such Fee Owner, in a good condition and state of repair; and (d) Maintaining, mowing, weeding, trimming and watering all landscaped areas and making such replacement of shrubs, trees and other landscaping located on the Lot or Tract owned or controlled by such Fee Owner with the type of landscaping materials originally installed or such substitute as shall in all respects be equal in quality and appearance. (2) Declarant's Right to Operate and Maintain. If any Fee Owner of any portion of the Property fails to operate, maintain and/or replace the improvements located on the Lot or Tract owned or controlled by such Fee Owner, or fails to operate, maintain and/or replace the easements and improvements located therein which are the responsibility of that Fee Owner pursuant to Section 3, all in accordance with the standards set forth in Section 4.b.1., Declarant may provide such Fee Owner with written notice of such non-performance (which notice shall set forth in reasonable detail the alleged non-performance by such Fee Owner); provided, however, no notice shall be required in the event of an emergency. If the defaulting Fee Owner fails to correct such non-performance within ten (10) days after receipt of such written notice, or if the defaulting Fee Owner fails to commence such corrective action during such ten (10) day period and/or fails to diligently pursue such corrective action to completion within thirty (30) days flowing such notice, Declarant, its successors, successors-in-interest, and assigns shall have the right, but not the obligation, upon ten (10) days' additional written notice 16681/Traer Version 10 Clean 12 June 10, 2004 to such defaulting Fee Owner (but without notice in an emergency situation), to take over the responsibility to operate, maintain, repair and/or replace the improvements located on the Lot or Tract owned or controlled by such defaulting Fee Owner, or the easements and improvements located therein which are the responsibility of the defaulting Fee Owner pursuant to Section 3, all in accordance with the operating and maintenance standards set forth in Section 4.b.1. A defaulting Fee Owner shall reimburse Declarant, its successors, successors-in-interest, and assigns, within ten (10) days of written demand for the cost and expense of such operation, maintenance, repair and/or replacement activities (along with the "Management Fee" as hereinafter defined) pursuant to the terms and conditions of this Section 4.b.2. Declarant may receive a fee for performance of such operation, maintenance, repair and/or replacement activities (the "Management Fee") to cover supervision, management, accounting and similar fees in an amount not in excess of ten percent (10%) of the actual costs of operating, maintaining, repairing and/or replacing the improvement located on the portions of the Property owned or controlled by the defaulting Fee Owner, or the easements and improvements located therein which are the responsibility of that Fee Owner pursuant to Section 3, all in accordance with the maintenance standards set forth in Section 4.b.1. Declarant, its successors, successors- in-interest and assigns shall have a perpetual lien on all of the Property owned by a defaulting Fee Owner in order to secure the payment of the amounts due under this Section. Recordation of this ECR shall be deemed sufficient notice of Declarant's lien rights without the necessity of recording other or future notices of the same. The lien created by this Section may be enforced against a defaulting Fee Owner and the Property it owns in the same manner as provided by applicable law for the foreclosure of mortgages. 16681/Traer Version 10 Clean 13 June 10, 2004 C. Taxes. All Fee Owners shall pay, prior to delinquency, directly to the appropriate taxing authorities, all real property taxes and assessments which are levied against the Lot or Tract owned or controlled by such Fee Owner, or the real or personal property located thereon or used in connection therewith, and all other taxes, fees, charges or levies which become, or may become, a lien upon such Lot or Tract owned or controlled by such Fee Owner, or any portion thereof or interest therein. 5. Release from Liability. Any person acquiring fee or leasehold title to any portion of the Property subject hereto shall be bound by this ECR only as to the portion of the Property acquired by such person. In addition, such person shall be bound by this ECR only during the period such person is the Fee Owner or Leasehold Owner of such portion of the Property. The obligation, liabilities or responsibilities that accrue during the period such person is the Fee Owner or Leasehold Owner of such portion of the Property shall survive such person's fee or leasehold ownership of such portion of the Property. Although such persons may be released under this Section, the easements, covenants and restrictions in this ECR shall continue to be benefits to and servitudes upon said Property running with the land. 6. No Merger. Notwithstanding the fact that fee title to a portion of the Property may at any time be owned by a person or entity that also then owns an interest in any of the easements created and reserved pursuant to Section 3 which encumbers that Owner's same property, such joint ownership of fee title and any easement interest therein shall not result in or be deemed to cause an extinguishment of any of the easements created by this ECR, or be deemed to cause a merger of any of the easements created by this ECR into fee title to that Owner's portion of the Property. 14 16681/Traer Version 10 Clean June 10, 2004 7. Rights of Successors. The easements, restrictions, benefits and obligations hereunder shall create mutual benefits and servitudes running with the land. This ECR shall bind and inure to the benefit of Declarant and subject to the specific limitations described in this ECR, to all Owners of portions of the Property, their respective heirs, representatives, lessees, successors, successors-in-interest, and assigns. The singular number includes the plural and the masculine gender includes the feminine and neuter. 8. Document Execution, Modification and Cancellation. This ECR may be amended or canceled only by Declarant as long as it or its successors, assigns or affiliates have any interest in any portion of the Property. 9. Duration. Unless otherwise canceled or terminated, all of the easements granted in this ECR shall continue in perpetuity; and all other rights and obligations hereof shall automatically terminate and be of no further force and effect after seventy-five (75) years from the date hereof. 10. Headings. The headings herein are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or intent of this instrument, nor in any way affect the terms and provisions hereof. 15 16681/Traer Version 10 Clean June 10, 2004 IN WITNESS WHEREOF, Declarant has made and executed this ECR as of the day and year first above written. STATE OF Qq iwerm% ) COUNTY OF EAfn UEZ SS ) DECLARANT: TRAER CREEK-RP LLC, a Colorado limited liability company By: TRAER CREEK LLC, a Colorado limited liability company, its Manager B Y~: agnus Lin ohm, Manager The foregoing instrument was acknowledged before me this W day of JVHE , 2004, by Magnus Lindholm, as Manager of TRAER CREEK LLC, a Colorado limited liability company and Manager of TRAER CREEK-RP LLC, a Colorado limited liability company, on behalf of the companies. In witness whereof, I have hereunto set my hand and affixed my notary seal the day and year last above written. e1L • PU My commission expires: 12.•$•ZOO\4 16681/Traer Version 10 Clean Public APPLEGATE -Q-% Q , Cft . O F C~ 16 June 10, 2004 s C MAINTENANCE BOND KNOW ALL MEN BY THESE PRESENTS. That Traer Creek Metropolitan District , as Principal, and Liberty Mutual Insurance Company , as Surety, are held and firmly bound unto Town of Avon as Obligee, in the full and just sum -1 0 of Eight Hundred Eighty Five Thousand Dollars and 00/100 Dollars 885,000.00 for the payment of which sum, well and truly to be made, the Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and .severally, firmly y these presents. WHEREAS, The Principal hesentered into a written contract dated 000 with the Obligee for The Village (at Avon) Filing 1. Any corrective work performed during the one (1) year warranty period shall be extended for one (1) year from the date on which it is completed ,and WHEREAS, said contract provides that the Principal will furnish a bond conditioned to guarantee for the period of One Year after approval of the final estimate on said job, by the owner, against all defects in workmanship and materials which may become apparent during said period. NOW, THEREFORE; THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal shall indemnify the Obligee for all loss that the Obligee may sustain by reason of any defective materials or workmanship which become apparent during the aforesaid period, then this obligation shall be void; otherwise to remain in full force and effect. RAUtUal r ib (surety) Bond No. 23005807 By Pamela J. nsen Attorney-In-Fact 37830 (2/031 Signed, sealed and dated July 20. 2004 NOTICE FROM SURETY REQUIRED BY TERRORISM RISK INSURANCE ACT OF 2002 In accordance with the Terrorism Risk Insurance Act of 2002 (referred to hereinafter as the "Act"), this disclosure notice is provided for surety bonds on which one or more of the following companies is the issuing surety: Liberty Mutual Insurance Company; Liberty Mutual Fire Insurance Company; LM Insurance Corporation; The First Liberty Insurance Corporation; Liberty Insurance Corporation; Employers Insurance Company of Wausau (formerly "EMPLOYERS INSURANCE OF WAUSAU A Mutual Company"); Peerless Insurance Company; and any other company that is a part of or added to the Liberty Mutual Group for which surety business is underwritten by Liberty Bond Services (referred to collectively hereinafter as the "Issuing Sureties"). NOTICE FORMS PART OF BOND This notice forms part of surety bonds issued by any one or more of the Issuing Sureties. DISCLOSURE OF PREMIUM The premium attributable to any bond coverage for "acts of terrorism" as defined in Section 142(1) of the Act is Zero Dollars ($0.04). DISCLOSURE OF FEDERAL PARTICIPATION IN PAYMENT OF TERRORISM LOSSES The United States will reimburse the Issuing Sureties for ninety percent (90%) of any covered losses from terrorist acts certified under the Act exceeding the applicable surety deductible. L, CC-6539 2/03 THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. 1282980 This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated. LIBERTY MUTUAL INSURANCE COMPANY BOSTON, MASSACHUSETTS POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS: That Liberty Mutual Insurance Company (the "Company'), a Massachusetts stock insurance company, pursuant to and by authority of the By-law and Authorization hereinafter set forth, does hereby name, constitute and appoint DILYNN GUERN, KEVIN W. MCMAHON, FRANK C. PENN, PAMELA J. HANSEN, DONALD E. APPLEBY, GLORIA C. BLACKBURN, KRISTEN L. MCCORMICK, FLORIETTA ACOSTA, CYNTHIA M. BURNETT, SUSAN J. LATTARULO, COURTNEY T. PETERSON, J. R. RICHARDS, JAMES S. ROSULEK, DOUGLAS J. ROTHEY, ALL OF THE CITY OF DENVER, STATE OF COLORADO , each individually if there be more than one named, its true and lawful attorney-in-fact to make, execute, seal, acknowledge and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations in the penal sum not exceeding ONE HUNDRED TWENTY-FIVE MILLION AND 00/100.................... DOLLARS 125,000,000.00***** ) each, and the execution of such undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents, shall be as binding upon the Company as if they had been duly signed by the president and attested by the secretary of the Company in their own proper persons. That this power is made and executed pursuant to and by authority of the following By-law and Authorization: ARTICLE XIII - Execution of Contracts: Section 5. Surety Bonds and Undertakings. Any officer of the Company authorized for that purpose in writing by the chairman or the president, and subject to such limitations as the chairman or the president may prescribe, shall appoint such attorneys-in-fact, as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys-in-fact, subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the seal of the Company. When so executed such instruments shall be as binding as if signed by the president and attested by the secretary. By the following instrument the chairman or the president has authorized the officer or other official named therein to appoint attorneys-in-fact: Pursuant to Article XIII, Section 5 of the By-Laws, Garnet W. Elliott, Assistant Secretary of Liberty Mutual Insurance Company, is hereby authorized to appoint such attorneys-in-fact as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. That the By-law and the Authorization set forth above are true copies thereof and are now in full force and effect. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Company and the corporate seal of Liberty Mutual Insurance Company has been affixed thereto in Plymouth Meeting, Pennsylvania this 12th day of May 2003 LIBERTY MUTUAL INSURANCE COMPANY By(~,..e i.~/_ Garnet W. Elliott, Assistant Secretary COMMONWEALTH OF PENNSYLVANIA ss COUNTY OF MONTGOMERY On this 12th day of May , 2003 , before me, a Notary Public, personally came Garnet W. Elliott, to me known, and acknowledged that he is an Assistant Secretary of Liberty Mutual Insurance Company; that he knows the seal of said corporation; and that he executed the above Power of Attorney and affixed the rorporate seal of Liberty Mutual Insurance Company thereto with the authority and at the direction of said corporation. IN TESTIMONY WHEREOF, 1 have hereunto subscribed my name and affixed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year first above written. By Ter sa Pastella, Notary Public CERTIFICATE I, the undersigned, Assistant Secretary of Liberty Mutual Insurance Company, do hereby certify that the original power of attorney of which the foregoing is a full, true and correct copy, is in full force and effect on the date of this certificate; and I do further certify that the officer or official who executed the said power of attorney is an Assistant Secretary specially authorized by the chairman or the president to appoint attorneys-in-fact as provided in Article XIII, Section 5 of the By-laws of Liberty Mutual Insurance Company. This certificate and the above power of attorney may be signed by facsimile or mechanically reproduced signatures under and by authority of the following vote of the board of directors of Liberty Mutual Insurance Company at a meeting duly called and held on the 12th day of March, 1980. VOTED that the facsimile or mechanically reproduced signature of any assistant secretary of the company, wherever appearing upon a certified copy of any power of attorney issued by the company in connection with surety bonds, shall be valid and binding upon the company with the same force and effect as though manually affixed. IN TESTIMONY WHEREOF I have hereunto subscribed my name and affixed the corporate seal of the said company, this 22nd day of July 1004 By r David M. Carey, Assi rit Secretary A 0 .a N N N C .y 7 C t0 C O vH AN yW C E 0 IZ aM 0 ~ C CL E ca No t O O = y NO N ET S M = co 00 0 T ~ C~:C~ r ~ ~I I y ~ - JOHNSON ~6 REPUCCI LLP ATTORNEYS AND COUNSELORS AT LAW 2521 BROADWAY, SUITE A BOULDER. COLORADO 80304 TELEPHONE 303-442-1900 TELEFAX 303-442--0}191 BOULDER June J1r .,MV4 WINTER PARK Norman Wood Town Engineer Town of Avon P. O. Box 975 Avon, CO 81620 Re: The Village (at Avon) Filing 3 Dear Norm: Enclosed is the Subdivision Improvements Agreement for The Village (at Avon) riling 3 for execution by the Mayor, attestation by the Town Clerk and approval as to form by the Town Attorney. Please obtain these three signatures, retain a complete copy for the Town's files, and return the original to me. In addition, enclosed is the Declaration of Master Design Review Covenants for The Village (at Avon) which was previously recorded and already encumbers the lands included in Filing 3 (Revised East Parcel Minus Tract M). Please feel free to call me if you have any questions. Thank you for your assistance. Sincerely yours, I Ruth B. Johnson RBJ:lf Enclosures cc: Dave Kautz (w/ attachment) John Dunn, Esq. (w/ attachment) 00017479.DOC V 4us ulas -,nk rrutdA Exhibit "B" To Third Amendment To Annexation & Development Agreement Calculation of Police Services Village at (Avon) 2005 Projected Budgeted Revenues Town of Avon Statistics Total Weighted Average Town Lane Miles - 2005 49.39 Total Weighted Average Village Lane Miles - 2005 10.42 Ratio of Village/Town Lane Miles - 2005 21.10% Total Town Calls for Service - 2005 14,611 Total Village Calls for Service - 2005 1,008 Ratio of Village/Town Calls for Service - 2005 6.90% Total Town Residential Dwelling Units - 12/31/05 3,528 Total Village Residential Dwelling Units - 12/31/05 244 Ratio of Village/Town Residential Units 6.92% Total Town Commercial Square Footage - 12/31/05 1,661,793 Total Village Commercial Square Footage - 12/31/05 322,853 Ratio of Village/Town Square Footage 19.43% Calculation of Police Services - 2005 Budget Patrol Factor Calculation Direct Costs - 2005: Personnel Costs - Patrol Gas, Fleet Maint., & Fleet Replacement Charges - Patrol Vail Dispatch Services % Direct Time Involved in Patrolling Streets and Self-initiated Calls for Service Ratio of Village Lane Miles to Total Lane Miles Total Patrol Factor Service Call Factor Calculation Direct Costs - 2005: Personnel Costs - Patrol Gas, Fleet Maint., & Fleet Replacement Charges - Patrol Vail Dispatch Services Direct Time Involved in Responding to Calls for Service Personnel Costs - Investigations Gas, Fleet Maint., & Fleet Replacement Charges - Invest. Ratio of Village/Town Calls for Service Total Calls for Service Factor Preparedness, Administration & Support Facioi Indirect Costs - 2005: Administration Budget Indirect Patrol Costs Indirect Investigations Costs Average of Residential DUs & Commercial Square Feet Total Preparedness, Administration & Support Factor Total Police Services Cost - 2005 $ 949,124 120,073 181,094 1,250,291 x 35.00% 437,602 I1 Inoi $ 92,323 $ 949,124 120,073 181,094 1,250,291 x 65.00% 80,340 10,966 903,995 A nnoi $ 62,366 $ 278,010 75,159 6,418 359,587 [91'701 $ 47,365 $ 202,053 9/8/2004 12:55 PM EXHIBIT "B"