Where is the Diamond Star Ranch?
Located in the Vail Valley (Eagle County) Colorado, the entrance from State Highway 6 is 3 miles east of the I-70 exit at Eagle (Exit 147) and 7 miles west of the I-70 exit at Wolcott (Exit 157). It is 15 minutes to the Arrowhead Resort, 20 minutes to Beaver Creek Resort, and 30 minutes to the Vail ski areas.

What is the Diamond Star Ranch?
It is probably the only remaining major contiguous land holding in the valley under single ownership that will not become heavily developed. From river front meadows to high elevation ranges, a total of 10,400 acres are under ownership or lease. 7,700 acres are deeded following the purchase of an 1,610 acre tract from Colorado Open Lands known as the Eagle Meadows Ranch adjacent to the upper ranch sites. The overall ranch holdings include 3.6 miles of frontage along the south bank of the Eagle River, the land rising from an elevation of 6,400 to over 9,000 feet at the mountain tops. Since the 1890's, it has been operated as Eagle Valley's finest working cattle and horse ranch. It straddles the old stagecoach route running west from Denver, and the remains of the original homestead cabins and school house can still be visited by horseback.

What are the plans for the Diamond Star Ranch?
The development program calls for preservation of at least 95% of the total holdings, a continuation of the operating ranch programs (owners can participate in the cattle herding tasks if they wish), and the establishment of an equestrian facility and equine breeding program under professional management. In order to achieve this goal and preserve the open lands for the resident herds of deer and elk, density will be greatly restricted. The River Ranch lands encompassing 800 deeded acres are restricted to 20 individual ranch sites, a shareholders' guest residence and the equestrian operations. When offered, the 6,900 deeded acres on the upper elevations will be limited to no more than 30 Mountain Ranches. Homestead sites within the individual ranches that may be as large as 300 acres will not exceed 5 acres for the River Ranches, or 10 acres for the Mountain Ranches, with the remainder of the property remaining as open lands for cattle and the deer and elk herds. Cattle grazing will be limited to the higher elevations and the ranch's 2,700 acres of Bureau of Land Management (BLM) leases, with the equestrian facilities located at the river ranches, but connected by trails to the upper ranges. Summer equestrian sites will be established as well on the upper mountain meadows.

How are the ranches laid out at the Diamond Star Ranch?
Even though the River Ranches are all approximately 37 acres, the critical factor in determining the actual configuration was the selection of the building sites to provide maximum vistas while preserving privacy for each site, minimizing the visual impact on adjoining properties, providing pleasing views of horse pastures and hay meadows, and creating diversity in the form of both river front and elevated sites. The Mountain Ranches will be clustered into 3 areas not to exceed a total of 30 ranches of 200+ acres each. Because the individual homesites will be set into the edge of the aspen forests along contoured ridge elevations, they will be invisible from each other while enjoying spectacular 180 degree vistas that vary from Castle Peak to the Sawatch and Gore Ranges. This clustering will preserve vast contiguous open lands for the deer and elk herds and cattle grazing operations while creating extraordinary privacy without isolation.

What are the Design Guidelines for the Diamond Star Ranch?
Before any construction can begin, any and all plans that effect the natural environment must be approved by the Design Review Committee (DRC). Because they are so important to the future of the ranch, the two sections from the Guidelines that explain the design philosophy; the open space, homestead and homesite relationships, and the improvement criteria are attached to this summary in full rather than being included in excerpt form.

What activities are available at the Diamond Star Ranch?
There are a myriad of outdoor activities available to owners who choose to apply for and are granted the right to purchase a share of the Diamond Star Ranch Company (see explanation in following paragraph). There is outstanding fly fishing on the Eagle River - one of the premier trout streams in Colorado. Horseback riding on your own pony or on one of the gentle, well mannered ranch horses across the open lands will afford recreational riders staggering vistas of the surrounding mountain ranges and sightings of the resident wild life, which, besides the large herds of deer and elk include coyotes, bald and golden eagles, Canadian geese, foxes and an abundance of other birds and animals. Formal riding programs for jumping, dressage, and western pleasure will be available at the equestrian center. Cross country skiing, snow shoeing, and snowmobiling (the latter restricted to areas that will not interfere with the residents or the wildlife) can be enjoyed for 5 months of the year, and there is always the opportunity to simply walk across the fields or through the wooded areas.

What Amenities are planned for the Diamond Star Ranch?
The Diamond Star Ranch Company, an entity separate from and not controlled by the developer, will retain the easement rights to all the open areas (all property except the homestead sites). It will also retain ownership of a 38 acre River Ranch on which it is constructing a guest residence with 7 bedrooms, steam bath, outdoor jacuzzi, 75 foot pool, exercise room, dining and cocktail facilities, media room, library, wine cellar, and a stocked trout pond. Also under construction are a line cabin with pond and corrals and a storage/staging area for ATV's in summer and snowmobiles in winter. The site will be used as picnic or overnight accommodations following a day trip by horseback, foot or vehicle. The equestrian facility located near the existing ranch barns is being completed and includes stables, corrals, exercise arenas and a full scale indoor riding facility. The Diamond Star Ranch Company will be responsible for the upkeep and management of all these amenities as well as the ranching operations for haying, cattle grazing, and range operations.

Execution of a Diamond Star Ranch Purchase and Sale Agreement entitles the prospective buyer to apply to become a shareholder of the Diamond Star Ranch Company. If such application is denied, the prospective buyer may cancel the agreement and receive a refund of the deposit. The price of each share shall be $10,000 and is limited to no more than 50 Diamond Star Ranch property owners and up to 10 nonresident charter shareholders. Shareholders shall have full use of all facilities, including Diamond Star Ranch owned riding horses. Shares shall not be assessable for any capital costs, and assessments are limited to a maximum of 1/40 of the annual cost of operating all Diamond Star Ranch Company facilities until such time as all ranches have been sold. Boarding, training, and veterinary services will be available for members' own horses at modest additional fees. Use of the guest residences will be limited to shareholders and their guests as more fully described in the rules and regulations of the Diamond Star Ranch Company.

What is the role of the Owners Association?
Because the Diamond Star Ranch Company will control all of the open property, the owners association will serve a limited role restricted to road maintenance and oversight of the Design Review Committee. The Diamond Star Owners Association is exempt under the Colorado Common Interest Ownership Act (CCIOA), and therefore assessments are limited by Colorado law to $300 per owner per year plus the cost of required insurance. The Diamond Star Ranch Company will provide these necessary support services to the owners association for this fixed price.

The Design Review Committee will review and must approve all site development plans to include grading and landscaping as well as primary, secondary, and ancillary structures. The committee also has the authority to adjust initial homestead locations within each ranch at the request of the purchaser if (in the committee's sole opinion) such change is warranted. The purpose of the DRC is to assure that all planned improvements are compatible with this extraordinary property, and that improvements constructed are compatible with and non-intrusive to their neighbors.

The Declaration of Covenants and the Design Review Guidelines (part of which are attached to this document) will govern the activities of the owners association.

Who is the Diamond Star Ranch?
The title holder to the land is Diamond S Ranch, Inc. That corporation is owned by White Diamond Ranch Company based upon the acquisition of 100% of the outstanding shares in July of 1997. For planning, development, and marketing efforts, the properties are being advertised as the Diamond Star Ranch, so legal descriptions will refer to parcels within the Diamond Star Ranch, though the grantee on the deeds will be the Diamond S Ranch, Inc. The Diamond Star Ranch Company will control, manage, and operate all of the amenities and open lands on the ranch.

Planning and development of the property is coordinated by John Bourassa through his development entity, Indeco, Inc., which enjoys a 25 year track record of successful projects across a broad spectrum of property types and locations. Mr. Bourassa has maintained a residence in the Vail Valley for the past 15 years.

Equestrian, cattle, and all other ranch operations are managed by Kirk A. Shiner, DVM, a world renowned veterinarian specializing in quarter horse and thoroughbred breeding. His clients include the King Ranch (Texas), Gainsborough Farm (Ireland, England, France), Lanes End Farm (Kentucky), and HRM Queen Elizabeth II. Several of his employees are resident upon the ranch, and his personal ranch is only 1 hour distant which insures availability of his services or those of additional personnel as needed.

Hospitality management for guest accommodations and shareholder services will be provided by Susan Christensen and her staff. Susan owns a local management firm with extensive operating experience and contacts in the Vail Valley.

What will it cost to live at the Diamond Star Ranch?
River Ranches are currently for sale at $1,600,000 each. 11 of the 20 sites have been sold to date. Mountain Ranches, when offered, will be priced at $2,200,000 to $2,500,000. Purchasers of River Ranches will be given first option to purchase the Mountain Ranches and to trade in their first ranch for its full purchase price as a credit against the cost of their Mountain Ranch.

Annual owner association fees are limited to $300 per owner plus liability and officers and directors insurance estimated to be $200 per owner per year. Ranch operations are currently estimated to generate a net loss of $300,000 per year including expenses of a resident manager and basic equestrian services that include 8 to 10 riding horses and trail ride guides. Operation of the lodge house and maintenance/replacement of equipment such as ATVs, snowmobiles, fishing equipment, stocking of basic food items is estimated to be $150,000 per year. Road maintenance and plowing may add an additional $50,000 to annual operating costs. Based upon the limit of 1/40 of the operating costs and a 20% contingency and/or replacement reserve allowance, each shareholder can anticipate an annual charge of approximately $15,000 for the owners association and Diamond Star Ranch Company including the ranch house availability. Personal real estate taxes and other home ownership costs will be paid by the ranch owner, and any additional charges for use of the facilities (meals, entertainment, special riding lessons, and other custom services) will be billed directly to the owner.

Any additional facilities constructed by the developer could add to the annual maintenance costs. Ranch operating losses are minimized by income generated from hay sales and leasing of grazing rights. If for reasons of poor weather or decisions to change the operating parameters these income sources are eliminated or reduced, annual operating costs could increase by $100,000 or $2,500 per owner.

IMPORTANT:
The information contained in this brochure is intended merely as a general description of how Diamond S Ranch, Inc. contemplates that Diamond Star Ranch will operate. Final decisions concerning the operation of Diamond Star Ranch and the amenities to be offered have not been made. Consequently, the matters discussed in this brochure are subject to change based on practical, legal or marketing considerations. Furthermore, given the complexity of a development such as Diamond Star Ranch and the documentation necessary to establish and maintain such a development, it is impossible to summarize accurately the legal details governing the operation of the development. The documents that will actually govern Diamond Star Ranch are the Declaration of Covenants for Diamond Star Ranch, the Articles of Incorporation and Bylaws of the Diamond Star Ranch Owners Association, your Diamond Star Ranch Purchase and Sale Agreement, the Diamond Star Ranch Disclosure Statement prepared pursuant to Colorado law, and the corporate documents of the Diamond Star Ranch Company. Copies of all these documents will be available at the time you receive a Diamond Star Ranch Purchase and Sale Agreement. Since these documents will govern over any marketing information you receive, you should carefully review them and seek legal counsel before signing a Diamond Star Ranch Purchase and Sale Agreement.

ALSO, it is important for you to realize that real estate brokers and sales agents have no authority to make representations or guarantees on behalf of Diamond S Ranch, Inc. Statements by these persons will not bind Diamond S Ranch, Inc. in any way.