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CONDOMINIUM DECLARATION
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WELLINGTON PLACE CONDOMINIUMS

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THIS DECLARATION of covenants, conditions, easements,

restrictions, uses, limitations and obligations, hereinafter

called "Declaration", is made and executed this of January 5th day

1981 , by WELLINGTON PARTNERSHIP, a

Colorado General Partnership, hereinafter called "Declarant",

pursuant to the provisions of the Colorado Condominium

Ownership Act.

WITNESSETH

WHEREAS, Declarant is the owner of the real property situate in the County of Summit, State of Colorado, described in EXHIBIT A, attached hereto; and

WHEREAS, Declarant desires to establish a condominium

project under the Condominium Ownership Act of the State of

Colorado; and

WHEREAS, by this Declaration a plan is established

for the separate ownership of the condominium units and

for submitting the above-described property for condominium

use;

NOW, THEREFORE, Declarant does hereby publish and

declare that the following terms, covenants, conditions,

easements, restrictions, uses, limitations and obligations

shall be deemed to run with the land, shall be a burden and
a benefit to Declarant, its successors and assigns, and any

persons acquiring or owning an interest in the real property

and improvements, their grantees, successors, heirs,
executors, administrators, devisees or assigns.

1.

Definitions.

1.1

Declarant.

"Declarant" means WELLINGTON

PARTNERSHIP, together with its successors and assigns.

1.2 Real Property. "Real Property" means that

certain Real Property located in Summit County, State of Colorado, described in EXHIBIT A attached hereto. 1.3 Building. "Building" means any building

containing units contructed on the Real Property.

1.4 Project. "Project" means the Real Property

and all Buildings and other improvements on the Real Property.

1.5 Unit. "Unit" means an individual airspace

unit which is contained within the unfinished perimeter walls,

windows, doors, floors and ceilings of each such unit in a

building, as shown on the Condominium Map, together with all

improvements and fixtures contained therein, but not including any of the structural components of the building within which
such airspace is located. The boundary lines of each unit

are the interior surfaces of its perimeter walls, ceilings,

windows and window frames, doors and door frames and trim,

floors and ceilings, if any, and includes the airspace so

encompassed.

1.6

Condominium Unit.

"Condominium Unit" means

a unit together with an undivided interest in the general

common elements appurtenant to such unit.
1.7 Owner. "Owner" means a person, firm corporation,

partnership, association or other legal entity or any combina

tion thereof who owns one or more condominium units.

1.8 Residential Condominium Unit.

"Residential

Condominium Unit" means a condominium unit to be used for

residential purposes or to be leased or rented for lodging,

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but not to be used for any commercial purpose, unless so

approved by the Association Board of Directors.

1.9 Commercial Condominium Unit. "Commercial

Condominium Unit" means a condominium unit to be used for

office, store or other commercial purposes but not for residential or lodging purposes, unless so approved by the
Association Board of Directors.

1.10

General Common Elements.

"General Common

Elements" means the Project and all portions of the Real

Property described in EXHIBIT A but not located within any

unit; and also includes, but is not limited to (i) the

foundations, columns, girders, beams, supports, balconies,

patio decks, perimeter and supporting walls, roof and stairways of the buildings, walkways, and corridors; (ii)
the mechanical installations of the buildings consisting of

the equipment and materials making up any central services such as power, light, gas, hot and cold water, and heating
which exist for common use; (iii) such enclosed air spaces

in the buildings as are provided for community or common

use or which serve a common use; (iv) any tanks, pumps,

motors, fans, compressors, ducts, and in general the

apparatus and installations of the building existing for

common use; (v) such enclosed air space in the building as

are provided for community or common use; and (vi) all other

parts of the buildings necessary, convenient or normally in

common use.

1.11

Limited Common Elements.

"Limited Common

Elements" means those general common elements which are either

limited to and reserved for the exclusive use of an owner of
a condominium unit or are limited to and reserved for the
common use of more than one, but fewer than all of the
condominium unit owners.

1.12

Common Residential Elements.

"Common

Residential Elements" means those parts of the general common elements reserved for the use of owners of residential
condominium units.
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1.13

Common Commercial Elements.

"Common

Commercial Elements" means those parts of the general common

elements reserved for use by owners of commercial condominium

units.

1.14

General Common Expenses. "General Common

Expenses" means and includes expenses for maintenance, repair,

replacement, operation, management and administration; expenses
declared common expenses by either the provisions of this
Declaration, or the Certificate of Incorporation or the By Laws of The Association, all sums lawfully assessed against

the general common elements by the Association as hereinafter

defined, such common expenses to be paid in amounts and at
times determined reasonable and necessary by the Association

for the best good and convenience of all condominium unit

owners.

1.15

Common Residence Expense.

"Common Residence

Expense" means and includes:

(i)

All sums lawfully assessed against

and limited to the common residential

elements by the Association; (ii) Expenses of Administration and management, maintenance, repair or

replacement of the common residential

elements;

(iii)

Expenses declared common residence

expenses by provisions of this

Declaration and the By-Laws; and (iv) Expenses agreed upon as common residence expenses by owners of
residential condominium units.

1.16

Common Commercial Expense.

"Common

Commercial Expense" means and includes:

(i)

All sums lawfully assessed against

and limited to the commercial common

elements by the Association;

(ii)

Expenses of administration and

management, maintenance, repair or
replacement of commercial common
elements;

(iii)

Expenses declared commercial common expenses by provisions of this

Declaration and the By-Laws; and

(iv)

Expenses agreed upon as commercial

expenses by the owners of commercial

condominium units.

1.17

Association of Unit Owners or Association.

"Association of Unit Owners" or "Association" means the

WELLINGTON PLACE CONDOMINIUM ASSOCIATION, LTD., A Colorado

corporation, not for profit, its successors and assigns,

the Certificate of Incorporation and By-Laws of which shall

govern the administration of this condominium, the members

of which shall be all of the owners of the condominium units.
1.18 Map or Condominium Map. "Map" or "Condominium

Map" means and includes the engineering survey of the Real Property, locating thereon the buildings, improvements, the
floor and elevation plans and other drawings or diagrammatic

plans, including, without limitation, charts or schedules depicting a part of or all of the improvements and land and
all amendments and supplements thereto.

2.1 Division of Property into Condominium Units.

The property

is hereby divided into fee simple estates as set forth in the

attached EXHIBIT "B" which by this reference is made a part

hereof:

separate fee simple estates, each such estate shall

consist of the separately designated unit and the appurtenant

undivided percentage interest in and to the general common

elements which shall be owned by all of the owners of the
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condominium units as tenants in common, according to the

percentage interest assigned to each unit on EXHIBIT "B".

2.2. Change in Residential or Commercial Purpose Status.

In the event that the Board of Directors of the Association

shall approve a change of a Unit from Commercial purposes to

Residential purposes, or from Residential to Commercial,

the columns on EXHIBIT "B" entitled "Percentage Interest In Common Commercial Elements" and entitled "Percentage
Interest In Common Residential Elements" shall be

recomputed and amended to reflect the change in interests

thereunder. In no event, however, shall a change in the

status of the Commercial or Residential nature of a Unit

affect or change the Percentage Interest in General Common

Elements of that Unit.

2.3.

The amendment of EXHI3IT "B" to the Declaration in

accordance with 2.2 herein shall not be subject to the

requirements of Paragraph 19 concerning amendments to

these Declarations. Such amendment to EXHIBIT "B" need

only be approved by a majority of the Board of Directors.

3. Limited Common Elements. A portion of the general common

elements is reserved for the exclusive use of the individual owners of the respective units, and such areas are referred
to as "limited common elements". The limited common elements

so reserved shall be identified on the Map; provided, however,

that any court, patio, balcony, or deck which is accessible

from, associated with and which adjoins a unit and any other
limited common elements so identified on the Map, shall,

without further reference thereto, be used in connection with

such unit to the exclusion of the use thereof by the other

owners of the general common elements, except by invitation.

All of the owners of condominium units in this condominium

complex shall have a non-exclusive right in common with all

of the other owners to the use of sidewalks, pathways,

driveways and hallways located within the entire condominium complex. No reference thereto, whether such limited common
-6-

elements are exclusive or non-exclusive, need be made in

any deed, lease, deed of trust, mortgage, or other instrument.

4. Condominium Map. The Map shall be filed for record, in Each section of the Map

whole or in parts or in sections.

filed subsequent to the first or initially filed Map shall

be termed a Supplement to such Map and the numerical sequence of such supplements shall be shown thereon. Prior to the

conveyance of any condominium unit to a purchaser, a Map

shall be filed for record, locating and depicting the

unit being conveyed.

In addition, the first filed Map and

the

each supplement to such Map shall show the following:

location of the buildings and improvements; the elevation

plans; the location of the units within the building, both

horizontally and vertically; the thickness of the common walls between or separating the units; the location of any

structural components or supporting elements of a building

located within a unit; and the unit designations and the

building symbol(s).

In addition to the supplements of the

Map as above provided, the Map and supplements thereto may

also be supplemented by filing charts or schedules depicting

horizontal and vertical dimensions. There shall be filed

for record as a part of the Map the certificate of a re

gistered professional engineer certifying that the Map

substantially depicts the location and the horizontal and
vertical measurements of the completed buildings and units, and the unit designations and building designations, and

that such Map was prepared subsequent to substantial completion thereof. Each supplement shall set forth a
Declarant reserves the

like certificate when appropriate.

right to amend a previously recorded map from time to time in

order to conform such map to the actual location of any of the

constructed buildings or improvements.

In no event shall any

supplement or amendment to the Map change in whole or in part

the percentage ownership of any unit owner from that stated
in EXHIBIT "B" attached hereto.

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In interpreting the Map, the existing physical

boundaries of each separate unit and each building and

improvement as constructed shall be conclusively presumed

to be its boundaries.

5.

Description of a Condominium Unit.

A Contract for the

sale of a condominium unit written prior to the filing for

record of the Map and Declaration may legally describe it

by its indentifying unti number, followed by the name
WELLINGTON PLACE CONDOMINIUMS with further reference to the

Map and Declarations to be filed for record.

Subsequent to the record filing of the Declarations

and the Map, every contract, deed, lease, mortgage, deed of

trust, encumbrance, will or other instrument may describe
the condominium unit according to the following description,
to-wit:

Description

Condominium Unit

, WELLINGTON PLACE

CONDOMINIUMS, according to the Map thereof

filed for record and the Condominium Declaration of WELLINGTON PLACE CONDOMINIUMS recorded on

, 1980, in Book

, Page

, County of Summit, State of Colorado. In each instance, except as it provided hereinafter, the

appropriate identifying condominium unit designation, and

recording data shall be inserted in the blank spaces which

are provided in the above description.

Every such description shall be good and sufficient

for all purposes to sell, assign, sublease, transfer,
encumber or otherwise affect the condominium unit. Each such

description shall be construed to include a perpetual, non

exclusive easment for ingress and egress to and from an
owner's unit and exclusive use of the limited common elements

appurtenant to his unit.

6.

Ownership and Title.

A condominium unit may be held and

owned by an individual or more than one person as joint

tenants or as tenants in common or in any real property

tenancy relationship recoginized under the laws of the

State of Colorado.

7.

Inseparability of a Condominium Unit.

Each unit and

the undivided interests in the general common elements

and the limited common elements appurtenant thereto shall

be inseparable and may be conveyed, leased, rented or

encumbered only as a condominium unit.

8.

No Partition.

The general common elements shall be

owned in common by all of the owners of the condominium

units and shall remain undivided, and no owner shall

bring any action for partition or division thereof.

Nothing contained herein shall be construed as a limitation

of the right of partition of a condominium unit between
the owners thereof, but such partition shall not affect

any other condominium unit, nor shall any such partition

sever any part of a condominium unit from the condominium
unit as a whole.

9.

Separate Assessment and Taxation.

Declarant shall give

written notice to the Assessor of the County of Summit,

State of Colorado, of the creation of condominium ownership

of this property, as is provided by-law, so that each

condominium unit shall be deemed a separate parcel and

subject to separate assessment and taxation. 10. Right to Combine Units. With the written consent of

the Association, two or more units may be utilized by the

owner or owners thereof as if they were one unit. To the

extent permitted in the written consent of the Association

any walls, floors or other structural separations between any two such units, or any space which would be occupied by
such structural separations but for the utilization of the
two units as one unit, may be utilized by the owner or owners

of the adjoining units as limited common elements, except

to the extent that any such structural separations are

necessary or contain facilities necessary for the support, use or enjoyment of other parts of the project. At any

time, upon the request of an owner of one of such adjoining

-9-

units, any opening betv/een the two units which, but for joint utilization of the two units, would have been occupied
by a structural separation, shall be closed, at the equal

expense of the owners of each of the two units and the

structural separations between the two units shall thereupon
become and shall be used as general common elements.

11.

Use and Occupancy.

Use of the condominium units shall

be restricted as follows in accordance with rules and

regulations to be made, or under By-Laws to be adopted,

by the Association.

(i)

Residential units shall be used and occupied for the purpose of lodging or as a dwelling by the owner or by the owner's family, guests, employees, invitees, licensees and tenants.
No residential unit shall be used for any

commercial purpose except as lodging on a rental basis, unless said commercial purpose

has been approved by the Association Board

of Directors,

(ii)

Commercial units shall be used and occupied

only for commercial activities which do not

interfere with the residential use of

residential units.

Excluded from commercial

units are any restaruant and nightclub

operations, and any entertainments, whether

live or recorded, which do not have the

prior written approval of the Board of

Directors which approval shall not be unreason-

bly withheld.

The Association shall not

grant approval for any restaurant, nightclub,

or entertainment without first having con

sidered and approved proposed devices for

ventilation, exhaust and fire protection, and without first having endorsed the

proposed restaurant, nightclub or enter

tainment as compatiable with the residential
character of the building. Approval shall

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be denied in the case of any proposed

restaurant, nightclub or entertainment which,

in the opinion of the Association, would be

a nuisance or an annoyance to the owners

of condominium units.

The Association

may require, as a condition of its approval,

that an owner undertaking conversion of his
unit to a restaurant or nightclub, make such structural changes as may reasonably be necessary to prevent emission from the

premises of noise and odor, and may require

that any such owner enter into an appropriate
undertaking to guarantee his performance

under any such requirement or requirements,

(iii)

Declarant and its employees, representatives, agents and contractors may maintain business
and sales offices, construction facilities and

yards, model units, and other facilities on the property during any period of construction
and until the sale of the units is completed
by Declarant.

12.

Easements for Encroachments.

If any portion of the

general common elements encroaches upon a unit or units, a

valid easement for such encroachment and for the maintenance

thereof, so long as it stands, shall and does exist.

If any

portion of a unit encroaches upon the general common elements, or upon an adjoining unit or units, a valid easement for such
encroachment and for the maintenance thereof, so long as it

stands, shall and does exist. Any such encroachment and the
easements created herein shall not be considered or determined
to be encumbrances either on the general common elements

or the unit for purposes of marketability of title or any

other purpose.

11 -

13.

Termination of Mechanic's Lien Rights and Indemnification.

Subsequent to the completion of the improvements depicted on the Map, no labor performed or materials furnished and
incorporated in a unit with the consent or at the request
of the unit owner, his agent, his contractor or subcontractor

shall be the basis for filing of a lien against the condominium unit of any other unit owner not expressly consenting to or requesting the same, or against the general common elements.
Each owner shall and does hereby indemnify and hold harmless each of the other owners, and all mortgagees from and against

all liability arising from the claim of any lien against the
condominium unit of any other owner or against the general
common elements for construction performed or for labor,

materials, services or other products incorporated in the owner's unit at such owner's request. The provisions herein
contained are subject to the rights of the Association or Managing Agent as is set forth in paragraph 15.
14. Administration and Management; Association; Managing

Agent.

14.1

The administration of this condominium project

shall be governed by the Articles of Incorporation and By-Laws

of the Association. An owner of a condominium unit, upon

becoming an owner, shall be a member of the Association and

shall remain a member for the period of his ownership. The

Association By-Laws may contain provisions to implement the

provisions of this Declaration, or such provisions may be

subsequently adopted by amendment to the By-Laws or by the
adoption of rules and regulations.
14.2 The Association shall be governed by a Board

of Directors as is provided in the Articles of Incorporation

and Association By-Laws.

The Board may delegate those main

tenance and other duties relating to the general common

12

elements to a managing agent at an agreed upon compensation or fee. A portion of the Association office space may be
14.3 Declarant shall have the right to designate

used by the Managing Agent.

the persons (whether or not condominium unit owners) who shall

be the first Board of Directors of said Association. The
Declarant shall make such designations, from time to time,

by delivering a written notice fed the Association.

Notwith

standing any other provisions expressly or impliedly to the contrary contained in this Declaration, the Articles of Incorporation or By-Laws of the Association, Declarant reserves

the right to exercise the rights, duties and functions of the

Board of Directors of the Association until at least one-half

(1/2) of the condominium units in the entire project have been

sold. During such period of development and sale, the

monthly assessment to Declarant for common expenses shall

be based upon the actual cost, and shall not include any

estimated amount for contingencies, reserves or sinking funds. Declarant shall pay its pro rata share of the expenses based
on its ownership of condominium units.

14.4 The Association shall have the right and authority

to engage in the sale, rental, leasing or encumbrancing or condo

minium units and other real property. Association property,

including but not limited to condominium units and other real

property, may be conveyed or encumbered by authority of the

Board of Directors of the Association. Conveyances or encum

brances shall be executed by instrument by the president or a

vice-president and by the secretary-treasurer of the Association.

14.5 The Association shall have three classes of

membership as follows: general, residential and commercial. Every owner of a condominium unit shall enjoy general member

ship. Residential memberships shall be limited to owners of

residential units. Commercial memberships shall be limited to

owners of commercial units.

The vote of the general membership

shall be required for determination of general issues affecting

the entire premises, the building as a whole, the general common
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elements, the general common expenses, and every other issue not strictly limited in application to the residential units
on the one hand, or the commercial units on the other hand.

Issues limited in application to residential units shall be

determined by the vote of the residential membership. Issues limited in application to the commercial units shall be

determined by the vote of the commercial membership.

presumption shall exist in favor of generality of issues, and

each issue shall be presumed a general issue unless determined
to be a residential issue, or a commercial issue, by inference which is clear and unmistakable. Only members shall be

entitled to vote in Association elections, and, in any election

on general issues, any member shall be entitled to vote the

percentage of the total vote equal to such member's percentage interest in the general common elements. Only residential members shall be entitled to vote in Association elections on
residential issues, and in such elections, any residential

member shall be entitled to vote the percentage of the total

residential vote equal to such member's percentage interest in the residential common elements. Only commercial members

shall be entitled to vote in association elections or commercial issues, and, in such elections, any commercial

member shall be entitled to vote the percentage of the total commercial vote equal to such member's percentage interest in
the commercial common elements.

15. Access to Units for Maintenance, Repair and Emergencies.

15.1 The owners shall have the irrevocable right,
to be exercised by the Association Board of Directors or

Managing Agent, to have access to each unit from time to

time during reasonable hours as may be necessary for the maintenance, repair or replacement of any of the general common elements therein or which are accessible therefrom:

provided, however, that such right of access shall be immediate

for making emergency repairs therein in order to prevent damage to the general common elements or to another unit.
14 -

15.2

Damage to the interior or any part of a unit

resulting from the maintenance, repair, emergency repair or

replacement of any of the general common elements or as a

result of emergency repairs within another unit shall be a

common expense of all of the owners; provided, however, that

if such damage is caused or is the result of the negligent

or tortious act of a unit owner, members of his family, his

agent, employee, invitee, licensee, or tenant, then such unit

owner shall be responsible and liable for all of such damage.

All damaged improvements shall be restored substantially to

the same condition in which they existed prior to the damage.

All maintenance, repairs and replacements of the general common elements, whether located inside or outside of units (unless
necessitated by the negligence, misuse or tortious act of a unit owner, in which case such expense shall be charged to such unit owner), shall be the common expense of all of
the owners.

16.

Owner's Maintenance Responsibility for His Unit.

16.1 For maintenance purposes, an owner shall be

obligated to keep in good repair and condition the non-supporting

walls within his unit, the materials such as, but not limited

to, plaster, gypsum dry wall, paneling, wallpaper, paint,

wall and floor tile and flooring (but not including the sub-

flooring) which make up the finished surfaces of the perimeter

and interior walls, ceilings and floors within his unit, including
unit doors and windows. The lines, pipes, wires, conduits

or systems (which for brevity are herein and hereafter referred

to as utilities) running through his unit which serve one

or more other units are general common elements.

Such utilities

shall not be disturbed or relocated by an owner without the

written consent and approval of the Board of Directors of

the Association. An owner's right to repair, alter and

remodel the interior of his unit shall be coupled with the

15 -

obligation to replace any finishing or other materials removed

with similar or other types or kinds of materials of at least
the same quality.

16.2

An owner shall maintain and keep in repair

the interior of his own unit, including the fixtures thereof.

All fixtures and equipment installed within the unit commencing

at a point where the utilities enter the unit shall be main

tained and kept in good repair and condition by the owner thereof. An owner shall do no act nor any work that will impair the structural soundness or integrity of the unit or the building
in which it is located or impair any easement or hereditament. An owner shall always keep the limited common elements appur tenant to his unit in a clean and sanitary condition.

17.

Maintenance of the General Common Elements.

The maintenance

and operation of the general common elements shall be the

responsibility of the Association.

18.

Compliance with Provisions of Declaration Mandatory.

Each owner shall comply with the provisions of the Declaration,

the Articles of Incorporation and By-Laws of the Association,

Rules and Regulations, decisions and resolutions of the Associa

tion adopted pursuant thereto as the same may be lawfully adopted and amended from time to time. Failure to comply

with any of the same shall be grounds for an action to recover

sums due for damages or injunctive relief, or both, and for reimbursement of all attorney's fees incurred in connection

therewith, which action shall be maintainable by the Board

of Directors in the name of the Association on behalf of the owner or, in a proper case, by an aggrieved owner.

19.

Revocation or Amendment to Declaration.

Except as is

otherwise provided, this Declaration shall not be revoked

unless 85%, or more, of the owners and all of the holders

16 -

of any recorded mortage or deed of trust covering or affecting any or all of the condominium units in the project consent and agree to such revocation by instrument(s) duly recorded.
This Declaration, except as otherwise set forth in Paragraph

2.3 herein, shall not be amended unless the owners represent

ing an aggregate ownership interest or seventy-five percent

(75%), or more, of the general common elements in the con

dominium complex, and all of the holders of recorded first mortgages or deeds of trust consent and agree to such
amendment by instrument(s) duly recorded; provided, however,
that the undivided interests in the general common elements

appurtenant to each unit shall have a permanent character

and shall not be altered without the consent of all the unit
owners, and all of the holders of any recorded mortgage or
deed of trust as expressed in a duly recorded amendment to
this Declaration.

20.

Assessment for Common Expenses.

20.1

All owners shall be obligated to pay the

estimated assessments imposed by the Board of Directors to

meet the common expenses.

The assessments for general common

expenses shall be made according to each owner's percentage

interest in and to the general common elements. The limited common elements shall be maintained as general common elements,

and owners having exclusive use thereof shall not be subject to any special charges or assessments for the repair or

maintenance thereof except as is otherwise provided in this

Declaration. Assessments for the estimated common expenses

shall be due in advance on the first day of each calendar

month, or less frequently as may be determined by the Board

of Directors. The Managing Agent or Board of Directors shall

prepare and deliver or mail to each owner a statement for the

common expenses.

20.2

Assessments shall be based upon the case require

ments deemed to be such aggregate sum as the Board of Directors

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of the Association shall from time to time determine is to

be paid by all of the condominium unit owners to provide for

the payment of all estimated expenses growing out of or connected

with the maintenance, repair, operation, additions, alterations

and improvements of and to the general common elements, which

sum may include, but shall not be limited to, expenses of

management, taxes and special assessments until separately

assessed? premiums for insurance; landscaping and care of

grounds; common lighting and heating; repairs and renovations;

trash and garbage collections; wages, common water and sewer

charges; court costs, legal and accounting fees; management fees; expenses and liabilities incurred by the Managing Agent
or Board of Directors on behalf of the owners under or by reason of this Declaration, the Articles of Incorporation

and By-Laws of the Association; for any deficit remaining

from a previous period; for the creation of a reasonable contingency,

or other reserve, working capital and sinking funds as well
as other costs and expenses relating to the general common
elements.

20.3

Assessments may also be made upon the owners

of residential units, and limited to such owners of residential

units, based upon the cash requirements deemed to be such

aggregate sum as the Managing Agent or Board of Directors of

the Association shall from time to time determine is to be

paid by all of the owners of residential units including

Declarants, to provide for the payment of all estimated

expenses growing out of or connected with the operation of

such residential units for rental purposes, which sum may

include, among other things, expenses of rental management,

salaries of desk or reservation personnel, wages of maids
and other service personnel, rental commissions, and the costs

of advertising and promotion.

Notwithstanding provisions

hereinabove contained under which assessments for residential

18

common expenses are required to be made pro rata in accordance

with each residential unit owner's interest in and to the common
residential elements, assessments for expenses growing out of

or connected with rental operation of residential units may be

made based upon rental revenue production, rental occupancy,

and rental expenses associated with particular units, in

accordance with rules and regulations of the Board of Directors

drawn for the purpose of a fair and equitable distribution of

such revenue producing expenses among owners of revenue
producing units. 20.4 Assessments for residential common expenses

shall be made pro rata according to each residential unit

owner's interest in and to the common residential elements.
20.5 Assessments for commercial common expenses

shall be made pro rata according to each commercial unit

owner's interest in and to the common commercial elements. 20.6 The Association may require owners to deposit

advance assessment payments in a sum equal to three (3) months'

estimated assessment obligation, and to maintain such advance

throughout such owners' respective periods of ownership. may bo used by the Association in all respects as regular
periodic assessments.

Such

advance deposit shall constitute a working capital reserve and

20.7

Contribution for monthly assessments shall be

prorated if the ownership of a condominium unit commences on

a day other than the first day of a month.
20.8 The omission or failure to fix the assessment

or deliver or mail a statement for any period shall not be

deemed a waiver, modification or a release of the owner from

his obligation to pay the common expenses.

20.9

The provisions of this paragraph 20 and

subparagraphs 20.1 through 20.9 are subject to paragraph 14

19

and specifically subparagraph 14.3 of this Declaration.

21.

Insurance.

21.1

Types of Insurance.

The Association shall

obtain and keep in full force and effect at all times the

following insurance coverage provided by companies duly authorized

to do business in Colorado. The provisions of this paragraph

shall not be construed to limit the power or authority of

the Association to obtain and maintain insurance coverage,

in addition to any insurance coverage required hereunder,

in such amounts and in such forms as the Association may deem

appropriate from time to time.

(a)

Casualty Insurance.

The Association

shall obtain insurance on the Project in such

amounts as shall provide for full replacement

thereof in the event of damage or destruction

from the casualty against which such insurance

is obtained, all in the manner in which a person

owning similar multiple family residential

buildings in the vicinity of the Project would,
in the exercise of prudent business judgment,
obtain such insurance. Such insurance shall

include fire and extended coverage, vandalism

and malicious mischief, war risk insurance if

available and if deemed appropriate by the Association,

and such other risks and hazards against which the

Association shall deem it appropriate to provide

insurance protection.

The Association may comply

with the above requirements by the purchase of

blanket coverage and may elect such "deductible"

provisions as in the Association's opinion are
consistent with good business practice.
(b)
Insurance.

Public Liability and Property Damage

The Association shall purchase

20

broad form comprehensive liability coverage in

such amounts and in such forms as it deems

advisable to provide adequate protection.

Initially,

such public liability insurance shall be in a

single limit of $1,000,000.00 covering all claims

for bodily injury or property damage arising
out of one occurrence and in a limit of $500,000.00 for each occurrence. Coverage shall include, without

limitation, liability for personal injuries, operation

of automobiles on behalf of the Association, and

activities in connection with the ownership,

operation, maintenance and other use of the project.

(c) Workmen's Compensation and Employer's The Association shall

Liability Insurance.

purchase workmen's compensation and employer's liability insurance and all other similar insurance in
respect to employees of the Association in the amounts
and in the forms now or hereafter required by law.

(d)

Fidelity Insurance.

The Association

shall purchase, in such amounts and in such

forms as it shall deem appropriate, coverage

against dishonesty of employees, destruction

or disappearance of money or securities, and
forgery.

(e)

Other.

The Association may obtain

insurance against such other risks, of a similar or dissimilar nature, as it shall

deem appropriate with respect to the project, including plate or other glass insurance and
any personal property of the Association
located thereon.

21.2

Personal Property Casualty Insurance.

The

Association may in its discretion elect to obtain insurance

on the personal property and furnishings initially placed, if any,

21

in the condominium units of owners by Declarant upon completion

of construction of the project in such amounts as shall provide

for the full replacement thereof in the event of damage or destruction from casualty against which such insurance is
obtained.

21.3

Form.

Casualty insurance shall be carried

in a form or forms naming the Association the insured, as

attorney-in-fect for the owners and for Declarant, whether

or not it is an owner, which policy or policies shall specify
the interest of each condominium unit owner (owner's name,

unit number, the appurtenant undivided interest in the general common elements), and which policy or policies shall provide a standard, noncontributory mortgage clause in favor of each

first mortgagee which from time to time shall give notice

to the Association of such first mortgage. Each policy also

shall provide that it cannot be canceled by either the insured

or the insurance company until after ten days prior written

notice is first given to each owner, to Declarant and to each

first mortgagee. The Association shall furnish to each owner

a true copy of such policy together with a certificate identifying

the interest of the owner. All policies of insurance shall

provide that the insurance thereunder shall be invalidated or suspended only in respect to the interest of any particular

owner guilty of breach of warranty, act, omission, negligence or noncompliance with any provision of such policy, including payment of the insurance premium applicable to that owner's
interest, or who permits or fails to prevent the happening of any event, whether occuring before or after a loss, which
under the provisions of such policy would otherwise invalidate

or suspend the entire policy.

All policies of insurance shall

provide further that the insurance under any such policy,

as to the interest of all other insured owners not guilty

of any such act or omission, shall not be invalidated or suspended

and shall remain in full force and effect.

22

Public liability and property damage insurance shall name the Association the insured, as attorney-in-fact
for the owners and for Declarant, whether or not it is an

owner, and shall protect each owner and Declarant against

liability for acts of the Association in connection with the

ownership, operation, maintenance or other use of the project.
21.4 Owner's Responsibility. Insurance coverage

on the furnishings initially placed in the condominium unit

by Declarant, except to the extent that the Association pursuant

to paragraph 21.2 hereof elects to arrange for casualty in surance, and, regardless of the Association's election, in
surance coverage against loss from theft on all personal property, and insurance coverage on items of personal property placed in the condominium unit by owner, and casualty and public

liability insurance coverage within each individual condominium

unit and for activities of the owner, not acting by the Associa

tion, with respect to the general common elements shall be

the responsibility of the respective owners.
21.5 Insurance Proceeds. The Association as attorney-

in-fact shall receive the proceeds of any casualty insurance

payments received under policies obtained and maintained pursuant

to this paragraph 21 and subparagraphs thereof, except any

proceeds from insurance coverage of owner as provided in para

graph 21.4.

To the extent that reconstruction is required

To the

herein, the proceeds shall be used for such purpose.

extent that reconstruction is not required herein and there

is a determination that the project shall not be rebuilt,

the proceeds shall be distributed in the same manner herein

provided in the event of sale of obsolete units.
21.6 Owner's Own Insurance. Notwithstanding the

provisions hereof, each owner may obtain insurance at his own expense providing coverage upon his condominium unit, his personal property, for his personal liability, and covering

23

such other risks as he may deem appropriate, but each such

policy shall provide that it does not diminish the insurance

carrier's coverage for liability arising under insurance policies
which the Association obtains pursuant to this paragraph 21

and subparagraphs thereof.

All such insurance of the owner's

condominium unit shall waive the insurance company's right

of subrogation against the Association, the other owners, and the servants, agents, guests of any of them if such in
surance can be obtained in the normal practice without additional

premium charge for the waiver of rights of subrogation.

22. Owner's Personal Obligation for Payment' of Assessments.

The amount of the common expenses assessed against each con

dominium unit shall be the personal and individual debt of

the owner thereof.

No owner may exempt himself from liability

for his contribution towards the common expenses by waiver of the use or enjoyment of any of the common elements or by
abandonment of his condominium unit. Both the Board of Directors

of the Association and Managing Agent shall have the responsibility

to take prompt action to collect any unpaid assessment which

remains unpaid for more than ten (10) days from the due date

for payment thereof. In the event of default in the payment

of the assessment, the condominium unit owner shall be obligated

to pay interest at the rate of eighteen percent (18%) per

annum on the amount of the assessment from due date thereof,

together with all expenses, including court costs, attorney's

fees, incurred together with such late charges as provided
by the By-Laws of the Association. Suit to recover a money judgment for unpaid common expenses shall be maintainable

without foreclosing the lien hereinafter provided for, nor

shall such suit be or construed to be a waiver of said lien.

23.

Association Lien for Nonpayment of Common Expenses.

2 3.1

All sums assessed but unpaid for the share

of common expenses whether for general, residential or

24

commercial common expenses, chargeable to any condominium

unit shall constitute a lien on such unit superior to all other liens and encumbrances, except only for tax and special
assessment liens on the condominium unit in favor of any

assessing unit, and all sums unpaid on a first mortgage or

first deed of trust of record, including all unpaid obligatory

sums as may be provided by such encumbrances.

To evidence

such lien, the Board of Directors of the Association or the

Managing Agent shall prepare a written notice of lien assessment

setting forth the amount of such unpaid indebtedness, the

amount of the accrued interest and late charges thereon, the

name of the owner of the condominium unit and a description of the condominium unit. Such a notice of lien shall be signed

by one of the Board of Directors or by one of the officers

of the Association or by the Managing Agent on behalf of the
Association and shall be recorded in the office of the County

Clerk and Recorder.

Such lien shall attach and be effective

from the actual due date of the assessment until all sums,

with interest and other charges thereon, shall have been fully
paid.

23.2

Such lien may be enforced by the foreclosure

of the defaulting owner's condominium unit by the Association

in like manner as a mortgage on real property upon the recording
of a notice of lien. In any such proceedings, the owner shall

be required to pay the recording costs, expenses and attorney's

fees incurred for filing the lien, and in the event of fore

closure proceedings, all additional costs, including but

not limited to court costs, all expenses and reasonable attorney's
fees incurred. The owner of the condominium unit being fore

closed shall be required to pay to the Association the monthly

assessment for the condominium unit during the period of

foreclosure, and the Association shall be entitled to a receiver

during foreclosure. The Association shall have the power

to bid in the condominium unit at foreclosure or other legal

25

sale and to acquire and hold, lease, mortgage, vote the votes

appurtenant thereto, convey or otherwise deal with the same. 23.3 Any mortgagee holding a lien on a condominium

unit may pay, but shall not be required to pay, any unpaid
assessment payable with respect to such condominium unit,

and upon such payment, such encumbrancer shall have a lien

on such condominium unit for the amount paid of the same rank

as the lien of his mortgage or encumbrance v/ithout the necessity of having to record a notice or claim of such lien. request of a mortgagee, Upon

the Association shall report to the

mortgagee of a condominium unit any unpaid common assessment

or other charges remaining unpaid for longer than thirty (30)

days after the same is due; provided, however, that a mortgagee
shall have furnished to the Association notice of such encumbrance

23.4

The recorded lien provided for herein may

be released by recording a Release of Lien to be signed by

an officer of the Association or by the Managing Agent on
behalf of the Association.

24.

Ascertainability of Unpaid Common Expenses.

24.1

Upon written request for a statement of account

by an owner or his agent, prospective mortgagee or prospective grantee of a condominium unit, the Association or the Managing
Agent shall furnish a written statement of the amount of any
unpaid assessments, the amount of the current assessments,
the dates that assessments are due, the amount of any advanced

payments made, prepaid items such as insurance premiums and

reserves therefor, deficiencies in reserve accounts, which
statement shall be conclusive upon the Association in favor

of all persons who rely thereon in good faith.

Unless such

request shall be complied with within ten (10) days after

receipt of such written request, all unpaid assessments which

became due prior to the date of such request shall be subordinate

26

to the rights of the persons requesting such statement.

service fee of not more than Fifty Dollars ($50.0 0) shall

be paid for furnishing the statement of account.

24.2

The provisions set forth in this paragraph

shall not apply to the initial sales and conveyances of the

condominium units made by Declarant, and such sales shall
be free from all assessments to the date of conveyance or

to a date as agreed upon by Declarant and Declarant's grantee.

25.

Right to Encumber Unit and Priorities of Association.

Any owner shall have the right from time to time to mortgage
or encumber his interest by deed of trust, mortgage or other

security instrument.

A first mortgage shall be one which has

The owner

first and paramount priority under applicable law.

of a condominium unit may create a junior mortgage (junior to a first mortgage), liens or encumbrances on his condominium

unit; provided, however, that any such junior mortgages, liens

or encumbrances shall always be subordinate to the prior and

paramount lien of the Association for assessments and all

of the terms, conditions, covenants, restrictions, uses, limitations

and obligations under this Declaration, Association Articles of Incorporation and By-Laws and provided, further, that such

junior encumbrancer(s) shall release, for purposes of restoration

of any improvements upon the encumbered condominium unit,
all of his right, title and interest in and to the proceeds
under all insurance policies upon said premises by the Associa
tion. Such release shall be furnished forthwith by a junior

mortgagee upon written request of the Association, and if

such request is not granted, such release may be executed

by the Association as attorney-in-fact for such junior mortgagee.

26. Destruction, Damage or Obsolescense - Association As

Attorney-in-Fact.

26.1

The Declaration does hereby make mandatory

the irrevocable appointment of an attorney-in-fact to deal

27 -

with the property upon its destruction or damage, for its

repair and reconstruction or its obsolescence and to maintain,

repair and improve the condominium units, buildings and general
and limited common elements. Title to any condominium unit is declared and expressly made subject to the terms and conditions

hereof, and acceptance by any grantee of a deed or other instru

ment of conveyance from the Declarant or from any owner or

grantor shall constitute appointment of the attorney-in-fact

herein provided. All of the owners irrevocably constitute
and appoint the Association their true and lawful attorney

in their name, place and stead for the purpose of dealing with the property upon its damage or destruction or obsolescence

as is hereinafter provided.

As attorney-in-fact, the Association,

by its President and Secretary or Assistant Secretary or its

other duly authorized officers or agents, shall have full

and complete authorization, right and power to make, execute

and deliver any contract, deed or any other instrument with

respect to the interest of a condominium unit owner which are necessary and appropriate to exercise the powers herein granted. "Repair" and "reconstruction" of the improvements
as used in the succeeding subparagraphs means restoring the

improvement(s) to substantially the same condition in which

they existed prior to the damage, with each unit and the general
and limited common elements having substantially the same

vertical and horizontal boundaries as before.

The proceeds

of any insurance collected shall be available to the Association

for the purpose of repair, restoration, reconstruction or
replacement unless the owners and all first mortgagees agree
not to rebuild in accordance with the provisions set forth
hereinafter.

26.2

In the event of damage or destruction due

to fire or other disaster, the insurance proceeds, if sufficient to reconstruct the improvement(s), shall be applied by the

Association, as attorney-in-fact, to such reconstruction,

28

and the improvement(s) shall be promptly repaired and recon

structed. The Association shall have full authority, right

and power, as attorney-in-fact, to cause the repair and restora

tion of the improvement(s). Assessments for common expenses

shall not be abated during the period of insurance adjustment

and repair and reconstruction.

26.3

If the insurance proceeds are insufficient

to repair and reconstruct the improvement(s), and if such

damage is not more than sixty percent (60%) of the total re

placement cost of all of the condominium units in this project, not including land, such damage or destruction shall be promptly
repaired and reconstructed by the Association, as attorneyin-fact, using the proceeds of insurance and the proceeds

of a special assessment to be made against all of the owners and their condominium units. Such deficiency assessment shall

be a common expense and made pro rata according to each owner's interest in the general common elements and shall be due and

payable within thirty (30) days after written notice thereof.

The Association shall have full authority, right and power,

as attorney-in-fact, to cause the repair or restoration of the improvement(s) using all of the insurance proceeds for such purpose notwithstanding the failure of an owner to pay
the assessment. The assessment provided for herein shall

be a debt of each owner and a lien on his condominium unit

and may be enforced and collected as is provided in paragraphs

22 and 23. In addition thereto, the Association, as attorney-

in-fact, shall have the absolute right and power to sell the condominium unit of any owner refusing or failing to pay such

deficiency assessment within the time provided, and if not

so paid, the Association shall cause to be recorded a notice

that the condominium unit of the delinquent owner shall be

sold by the Association, as attorney-in-fact, pursuant to

the provisions of this paragraph. Assessments for common

29

expenses shall not be abated during the period of insurance

adjustment and repair and reconstruction. The delinquent

owner shall be required to pay to the Association the costs and expenses for filing the notices, interest at the rate

of eight percent (8%) per annum on the amount of the assessment

and all reasonable attorney's fees. The proceeds derived

from the sale of such condominium unit shall be used and dis

bursed by the Association, as attorney-in-fact, in the follow

ing order:

1.

For payment of taxes and special assessment

liens in favor of any assessing entity and the

customary expense of sale;

2.

For payment of the balance of the lien

of any first mortgage;

3.

For payment of unpaid assessments and all

costs, expenses and fees incurred by the

Association;

4.

For payment of junior liens and encum

brances in the order of and to the extent of their priority; and

5.

The balance remaining, if any, shall be

paid to the condominium unit owner.

26.4 If the insurance proceeds are insufficient

to repair and reconstruct the damaged improvement(s), and if such damage is more than sixty percent (60%) of the total

replacement cost of all of the condominium units (in this

project), not including land, and if the owners representing an aggregate ownership interest of seventy-five percent (75%),
or more, of the general common elements do not voluntarily,
within one hundred days thereafter, make provisions for re construction, which plan must have the approval or consent

of all of the first mortgagees of record, then the Association

shall forthwith record a notice setting forth such fact or

facts, and upon the recording of such notice by the Association's

30 -

President and Secretary or Assistant Secretary, the entire

remaining premises shall be sold by the Association pursuant to the provisions of this paragraph, as attorney-in-fact
for all of the owners, free and clear of the provisions con
tained in this Declaration, the Map, Articles of Incorpora

tion and the By-Laws.

Assessments for common expenses shall

The insurance

not be abated during the period prior to sale.

settlement proceeds shall be collected by the Association, and such proceeds shall be divided by the Association accord

ing to each owner's interest in the general common elements,

and such divided proceeds shall be paid into separate accounts,
each such account representing one of the condominium units. Each such account shall be in the name of the Association,

and shall be further identified by the condominium unit designa

tion and the name of the owner. From each separate account

the Association, as attorney-in-fact, shall forthwith use

and disburse the total amount (of each) of such accounts,

without contribution from one account to another, toward the

partial or full'payment of the lien of any first mortgage against the condominium unit represented by such separate
account. Thereafter, each such account shall be supplemented

by the apportioned amount of the proceeds obtained from the

sale of the entire property. Such apportionment: shall be

based upon each concominium unit owner's interest in the general

common elements. The total funds of each account shall be
used and disbursed, without contribution from one account

to another, by the Association, as attorney-in-fact, for the

same purposes and in the same order as is provided in subpara

graph 26.3, 1 through 5 herein.
26.5 In the event of such damage or destruction

under subparagraph 26.4 of this paragraph, and if a plan for

reconstruction is adopted as therein provided, then all of

the owners shall be bound by the terms and other provisions

of such plan. Any assessments made in connection with such

31

plan shall be a common expense and made pro rata according

to each owner's interest in the general common elements and
shall be due and payable as provided by the terms of such

plan, but not sooner than thirty (30) days after written notice
thereof. The Association shall have full authority, right

and power, as attorney-in-fact, to cause the repair and restoration

of improvements using all of the insurance proceeds for such purpose notwithstanding the failure of an owner to pay the
assessments. Assessments for common expenses shall not be

abated during the period of insurance adjustment and repair

and reconstruction. The assessment provided for herein shall be a debt of each owner and a lien on his condominium unit

and may be enforced and collected as is provided in paragraphs

22 and 23. In addition thereto, the Association, as attorney-

in-fact, shall have the absolute right and power to sell condominium unit of any owner refusing or failing to pay assessment within the time provided, and if not so paid, Association shall cause to be recorded a notice that the

the such the condominium

unit of the delinquent owner shall be sold by the Association.

The delinquent owner shall be required to pay to the Association

the costs and expenses for filing the notices, interest at

the rate of eighteen percent (18%) per annum on the amount of the assessment and all reasonable attorney's fees. The proceeds
derived from the sale of such condominium unit shall be used

and disbursed by the Association, as attorney-in-fact, for the same purposes and in the same order as is provided in
subparagraph 26.3, 1 through 5 herein.
26.6 The owners representing an aggregate owner

ship interest of eighty percent (80%), or more, of the general

common elements may agree that the general common elements

are obsolete and adopt a plan for the renewal and reconstruction, which plan has the approval of all of the first mortgagees of record at the time of the adoption of such plan. If a

plan for the renewal or reconstruction is adopted, notice

32 -

of such plan shall be recorded, and the expense of renewal

and reconstruction shall be payable by all of the owners as

a common expense, whether or not they have previously consented

to the plan of renewal and reconstruction. The Association,

as attorney-in-fact, shall have the absolute right and power
to sell the condominium unit of any owner refusing or failing

to pay such assessment within the time provided, and if not

so paid, the Association shall cause to be recorded a notice

that the condominium unit of the delinquent owner shall be

sold by the Association.

The delinquent owner shall be required

i

to pay to the Association the costs and expenses for filing

the notices, interest at the rate of eight]percent (8%) per

annum on the amount of the assessment and all reasonable attorney's

fees.

The proceeds derived from the sale of the condominium

i

unit shall be used and disbursed by the Association, as attorney-

in-fact, for the same purposes and in the same order as is provided in subparagraph 26.3, 1 through 5| herein.
26.7 The owners representing an?aggregate ownership
I

interest of eighty-five percent (85%), or more, of the general

common elements may agree that the condominium units are
obsolete and that the same should be sold.; Such plan or

agreement must have the unanimous approval! of every first

mortgagee. In such instance, the Association shall forthwith

record a notice setting forth such fact or, facts, and upon

the recording of such notice by the Association's President

and Secretary or Assistant Secretary, the entire premises

shall be sold by the Association, as attorney-in-fact, for
all of the owners free and clear of the provisions contained

in this Declaration, the Map, the Articles of Incorporation

and the By-Laws.

The sales proceeds shall be apportioned

among the owners on the basis of each owner's interest in

the aeneral common elements, and such apportioned proceeds

33

shall be paid into separate accounts each such account

representing one condominium unit.

Each such account shall

be in the name of the Association, and shall be further

identified by the condominium unit designation and the name of the owner. From each separate account the

Association, as attorney-in-fact, shall use and disburse

the total amount (of each) of such accounts, without
for the same

contribution from one account to another,

purposes and in the same order as is provided in

subparagraph 26.3, 1 through 5, herein. 27. Association Right to Acquire Additional Property. The

Association may acquire and hold for the benefit of all of

the condominium unit owners, real, tangible and intangible

personal property and may dispose of the same by sale or

otherwise. The beneficial interest in any, such property

i shall be owned by all of the condominium unit owners in the

j
same proportions as their respective interests in the general
common elements, and such interest therein shall not be

transferable except with a conveyance of a condominium unit.

i

A conveyance of a condominium unit shall transfer to the

j
grantee ownership of the grantor's beneficial interest in
i

such property associated with the conveyed condominium unit

v/ithout any reference thereto in any conveyance and without
i

the necessity for a bill of sale.

28.

First Right of Purchase.

In the event an Owner of a

Unit desires to sell such Unit and receives a bona fide offer
i

for such sale, the Unit shall be offered to the remaining

Owners who shall have a first right to purchase such

offered Unit for the same terms and conditions as the bona fide offer. Notice of such bona fide offer shall be given

to the Association, which shall be responsible to notify

the remaining Unit Owners of such offer by mailing notice

to the remaining Owners. The remaining Unit Owners shall

have five (5) days from the date of such mailing to accept
such offer, and to record with the Summit County Clerk and Recorder, a written Notice of Acceptance of Offer, and if

-34-

not accepted and recorded within five (5) the sale may be
made to such third party offeree. The absence in the

records of the Clerk and Recorder of Summit County of a

recorded Notice of Acceptance of Offer shall be conclusive

i

that no Unit Owner has accepted the first right of

purchase.

This provision shall not be applicable to the

Further, this

first sale of units owned by Declarants.

provision shall not be construed, nor is it intended,

to violate the rule against perpetuities. !

29. Registration of Mailing Address. Each owner shall

register his mailing address with the Association, and

notices or demands intended to be served upon an owner

shall be sent by mail, postage prepaid, addressed in the

name of the owner at such registered mailing address.
All notices, demands or other notices intended to be

served upon the Board of Directors of the Association,

shall be sent by certified mail, postage prepaid, addressed to Wellington Place Condominium Association,
P. 0. Box 1300, Breckenridge, Colorado, 80424.
30. Period of Condominium Ownership. The separate

condominium estates created by this Declaration and the

Map shall continue until this Declaration is revoked in

the manner and as is provided in Pargaraph 19 of this
Declaration or until terminated in the manner and as is

provided in subparagraph 26.4 or 26.7 of Paragraph 26 of

this Declaration.

31.

Automobile Parking Facilities.

All automobile parking

facilities shall be under the control of the Association;

provided however, that the Association by its President or

other executive officer shall cause to be assigned to the owner (s) of a condominium unit one or more parking spaces

on the condominium project, which parking space, to the extent possible, shall be located relatively proximate to
the owner's condominium unit, provided, further, that all

assigned parking spaces may, from time to time, be re

assigned in order to accomplish the purpose stated.

-35-

32.

Prohibition of Damage and Certain Activities.

Nothing

shall be done or kept in any unit or in the common elements

or any part thereof which would result in the cancellation

of the insurance on the project or any part thereof or
increase of the rate of the insurance on the project or any

part thereof over what the Association, but for such

activity, would pay, without the prior written consent of
the Association. Nothing shall be done or kept in any unit

or in the common elements or any part thereof which would

be in violation of any statute, rule, ordinance, regulation, permit or other validity imposed requirement of any

governmental body.

No damage to, or waste of, the common

elements or any part thereof shall be committed by any owner or any invitee of any owner, and each owner shall
indemnify and hold the Association and the other owners

harmless against all loss resulting from any such damage

or waste caused by him or his invitees; provided, however, that any invitee of the Declarant shall not under any
circumstances be deemed to be an invitee of any other

owner.

No noxious, destructive or offensive activity

shall be carried on in any unit or in the common elements

or any part thereof, nor shall anything be done therein

v;hich may be or may become an annoyance or nuisance to any other owner or to any person at any time lawfully residing
in the project.

33.

Restrictive Covenants and Obligations.

33.1

All buildings or structures hereafter erected

upon the property shall be of new construction, and no buildings or structures shall be moved from other locations
onto said premises, and no subsequent buildings other than

buildings shown on the Map shall be erected or constructed on the property except by vote of the majority in interest
of the condominium unit owners. No structures of a

temporary character, trailer, basement, tent, shack,

garage, barn or other outbuilding shall be used or permitted

-36-

to be kept or stored on any portion of the premises at

any time either temporarily or permanently.
33.2 Notwithstanding any provisions herein contained

to the contrary, it shall be expressly permissible for

the Declarant, his agent, employees and contractors to

maintain during the period of construction and sale of

the condominium units, upon such portion of the property

as Declarant may choose, such facilities as in the sole

opinion of the Declarant may be reasonably required,

convenient or incidental to the construction and sale or rental of condominium units and interests, including, but without limitation, a business office, storage area,

construction yard, signs, model units, sales office,

construction office, parking areas and lighting.

33.3

No animals, livestock or poultry of any kind

shall be raised, bred or kept on the property, except that

dogs, cats or other household pets may be kept, subject

to rules and regulations from time to time adopted and

amended by the Association.

The Association may prohibit

the keeping or possession of such pets or animals, if

it hereafter desires.

33.4

No nuisances shall be allowed on the condominium

property, nor any use or practice which is the source of annoyance to residents or commercial owners or which inter
feres with the peaceful enjoyment or possession and proper

use of the property by its residents or commercial owners.

All parts of the property shall be kept in a clean and

sanitary condition, and no rubbish, refuse or garbage shall be allowed to accumulate nor any fire hazard to exist. No unit owner shall permit any fire hazard to exist. No

unit owner shall permit any use of his unit or make use of
the common elements which will increase the rate of

insurance upon the condominium property.

The Association

may adopt By-Laws and Rule and Regulations relative to

abatement and enjoinment of nuisances.
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33.5

No immoral, improper, offensive or unlawful use

shall be permitted or made of the condominium property or

any part thereof.

All valid laws, ordinances and regulations

of all governmental bodies having jurisdiction shall be observed.

33.6 Rules and regulations may be adopted by the Board

of Directors of the Association concerning and governing the

use of the general and limited common elements and of common

residential or commercial elements; provided, however, that

such rules and regulations shall be uniform and non-discrim inatory. Copies of all such rules and regulations shall be

furnished to unit owners prior to the time that they become

effective.

33.7

Except for those improvements erected or installed

by Declarant, no exterior additions, alterations or decoration

to any buildings, nor changes in fences, hedges, walls and
other structures shall be commenced, erected or maintained

until the plans and specifications showing the nature, kind, shape, heights, materials, location and approximate cost of
same shall have been submitted to and approved in writing

as to conformity and harmony of external design and location

with existing structures in the property by the Association

or by a representative designated by it.

33.8

Except in the individual balconies, no planting

or gardening shall be done, and no fence, hedge or wall

shall be erected or maintained upon said property, except
such as are installed in accordance with the initial

construction of the buildings located thereon or as

approved by the Association's Board of Directors or its

designated representative.
3 3.9 The Association's Board of Directors shall have

the right and power to provide for the construction of

recreational and other common facilities, from time to time,

as in their discretion appears to be in the best interests

of the Association. Such additional common facilities may

be designated by the Board of Directors of the Association

as general common elements, common residential elements

or common commercial elements and thereafter such common

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facilities shall be restricted to use and assessed as if

originally constructed as elements so designated.

34. Condemnation and Eminent Domain.

34.1

If at any time or times during the continuance

of the project all or any part of the project shall be taken

or condemned by any public authority or sold or otherwise disposed of in lieu thereof or in avoidance thereof, then all compensation, damages or other proceeds therefrom,
the sum of which is hereinafter referred to as the

"condemnation award" shall be payable to the Association

as the provisions of this Paragraph 34 shall apply.

34.2 In the event that the entire project is taken

or condemned or sold or otherwise disposed of in lieu thereof

or in avoidance thereof, the condominium ownership pursuant thereto shall terminate. The condemnation award shall be

apportioned among the owners on the basis of each owner's

undivided interest in the general common elements; provided,

however, that if a standard different from the value of the

project as a whole is employed to measure the condemnation

award in the negotiation, judicial decree or otherwise,
then in determining such
shall be employed.

apportionment the same standard

The Association shall, as soon as

practical, determine the share of the condemnation award

to which each owner is entitled and such shares shall be

paid into separate accounts and disbursed as soon as

practical for the same purposes and in the same order as is provided in Paragraph 26.3(1) through 26.3(5) hereof.
34.3 In the event that less than the entire project

is taken or condemned or sold or otherwise disposed of in lieu thereof or in avoidance thereof, the condominium

ownership hereunder shall not terminate.

determined under the following provisions.

Each owner shall

As soon as

be entitled to a share of the condemnation award to be

practical the Association shall reasonably and in good

faith allocate the condemnation award between compensation,

damages or other proceeds, and shall apportion the amounts

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so allocated among the ovmers, as follows:

(a)

the total

amount allocated to taking of or injury to the general common elements ahll be apportioned among owners on the basis of
each owner's undivided interest in the general common elements; (b) the total amount allocated to severance

damages shall be apportioned to the owners of those

condominium units which were not taken or condemned;

(c)

the respective amounts allocated to the taking of

or injury to a particular condominium unit or to

improvements an owner has made within his own condominium

unit shall be apportioned to the owner of that particular
condominium unit involved; and (d) the total amount allocated

to consequential damages and any other takings or injuries shall be apportioned as the Association determines to be equitable under the circumstances. If an allocation of
the condemnation award is already established in negotiation,

judicial decree or otherwise, then in allocating the

condemnation award the Association shall employ such
allocation. Distribution of apportioned proceeds shall

be made by check payable jointly to the respective owners

and their respective first mortgagees.

34.4

In the event a partial taking results in the

taking of an individual air space unit, as defined in Paragraph 1.5 hereof, the ovmers thereof shall automatically
cease to be members of the Association and their ownership
interest in the general common elements shall terminate

and vest in the owners of the remaining condominium units

and allocation of the condemnation award shall be determined in accordance with Paragraph 34. Thereafter,

the Association shall reallocate the ownership, voting,

membership and assessment factors, rights, duties and

procedures determined in accordance with the Declaration

according to the same principles employed in this
Declaration at its inception and in the By-Laws of

WELLINGTON PLACE CONDOMINIUM ASSOCIATION, LTD., and shall

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submit such reallocation to the owners of the remaining

individual air space units for the amendment of this

Declaration.

34.5

Any repair and reconstruction necessitated by

condemnation shall be governed by the procedures contained

in Paragraph 26 hereof.

34.6

Provided that an owner of first mortgagee has,

in writing, requested the following information and has

furnished the Association with the address to which the

owner or first mortgagee wants the information sent, then

in the event that any portion of the project shall be

made the subject matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired

by a condemning authority, timely written notice of such

condemnation shall be given by the Association to each
such owner or first mortgagee. 35. General Reservations.

35.1

Declarant reserves the right to establish

easements, reservations, exceptions and exclusions con

sistent with the condominium ownership of the condominium

project and for the best interests of all of the condominium

unit owners, including the Declarant, in order to serve
the entire condominium project.

35.2

Notwithstanding any other provisions expressly

or impliedly to the contrary contained in this Declaration,

the Articles of Incorporation or By-Laws of the

Association, Declarant reserves the right to exercise

the rights, duties and functions of the Board of Directors

of the Association until one-half (1/2) of the condominium
units have been sold. During such period of development

and sale, the monthly assessment to Declarant for common

expenses shall be based upon the estimate of the actual

cost excluding therefrom any estimated amount for contin

gencies, reserves or sinking funds and Declarant shall

pay its pro rata share thereof based on its ownership of

condominium units.

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36.

Title Subject to Declarant's Reservations.

Title to

ownership of each condominium unit is expressly subject to the general reservations set forth in Paragraph 35.
37. Acceptance of Provisions of all Documents. The

conveyance or encumbrance of a condominium unit shall be

deemed to include the acceptance of all of the provisions of this Declaration, the Articles of Incorporation and

Association By-Laws and Rules and Regulations, and shall

be binding upon each grantee or encumbrances without the necessity of inclusion of such an express provision in the
instrument of conveyance or encumbrance.

38.

Condominium Ownership Act.

The provision of this

Declaration shall be in addition and supplemental to the

Condominium Ownership Act of the State of Colorado and

to all other provisions of law.

39.

Severability of Invalid Provisions.

If any of the

provisions of this Declaration or any paragraph, sentence, clause, phrase or word, or the application thereof in any
circumstances be invalidated, such invalidity shall not

affect the validity of the remainder of this Declaration,

and the application of any such provisions, paragraph,

sentence, clause, phrase or word in any other circumstances
shall not be affected thereby.

IN WITNESS WHEREOF, the Declarant has duly executed

this Declaration this

5th

day of

January

r 19_ai-

WELLINGTON PARTNERSHIP, A

Colorado General Partnership

BY: &JM& A (/lUM>S

William B. Vollbracht,

Managing General Partner

3Y:

Edward R. Cobnts,
General Partner

Cleta M.

Barnett,

General Partner

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BY

fceWtdte
Ronald G.
General Partner

Childs,

James W.

Dedrick,

General Partner

BY

:^K George B. "Beardsley,

General Partner

^Jbhn H. McClure,
General Partner

STATE OF COLORADO

COUNTY OF

DENVER

The foregoing instrument was acknowledged before me this 5th day of January , 1981 , by:

William R. Vollbracht
Edward R. Coonts Cleta M. Barnett

Ronald G. Childs James W. Dedrick

George B. Beardsley
John H. McClure

all the General Partners of WELLINGTON PARTNERSHIP,

a Colorado General Partnership, on behalf of WELLINGTON PARTNERSHIP, a Colorado Partnership.

Nojtary Public

;..

My Commission Expires:

August 3, 1983

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EXHIBIT A TO

CONDOMINIUM DECLARATION
OF WELLINGTON PLACE
CONDOMINIUMS

LEGAL DESCRIPTION

Lot 4 and a Portion of Lot 5 of the unplatted

portion of the Abbett Addition to the Town of

Breckenridge, Section 31, Township 6 South,

Range 77 West of the 6th Principal Meridian,

Situate in the Town of Breckenridge, County of Summit, State of Colorado and more particularly
described as follows:

Beginning at corner No. 7 of said Abbett Addition

and running N 1000'00" W 254.50' to a Point on the Norterly right-of-way of Wellington Road,

which point is, in fact, the true point of begin

ning, thence

West

134.00" Along said right-of-way to the Easterly right-of-

way of Ridge Street) thence

North
East

99.63' Along said right-of-way, thence

116.43" To the Westerly right-of-way of French Street, thence

S1000'00" E
Contains:

101.17' Along said right-of-way to the true point of beginning.

0.2 86 acres, more or less.

EXHIBIT B TO

CONDOMINIUM DECLARATION OF WELLINGTON PLACE

CONDOMINIUMS

FIRST PT.OOR CONDOMINIUM UNITS

UNIT NO. PERCENTAGE INTEREST IN INTEREST of^JoMINIUM MAP COMMON COMMERCIAirELEMENTS PERCENTAGE j ^ggg
CI c2 C3 25.26% 23.33% 15.25% 9'178% 8.478% 5.540%

c4

36.16%

13.136%

SECOND FLOOR CONDOMINIUM UNITS

UNIT NO. ON CONDOMINIUM MAP

PERCENTAGE INTEREST IN COMMON RESIDENTIAL ELEMENTS

25.00%

PERCENTAGE INTEREST IN GENERAL COMMON

elements

' ~

r-A

15.917%

r-B r-C r-D

25.00% 25.00% 25.00%

15.917% 15.917% 15.917%