2015-1321901

Page 1 of 37 Amendment
Solana Community
Association
1250.24PM
Cla11amCountyWashington 06/12/2015

After recording,returnto:
The Solana Courtyards Homowners Association
P.O. Box 2439
Port Angeles, WA 98382

THIRD AMENDMENT AND RESTATEMENT OF THE DECLARATION OF

COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS
AND RESERVATIONS FOR SOLANA COURTYARDS
(FORMERLY SOLANA CLUSTER LOTS)

Documents released or assigned: Declarationof Covenants,

Conditions, Restrictions,
Easements and Reservations for Solana Cluster Lots, recorded March
23,
2006 in the records of Clallam County,
Washington, as Document No.
2006-1177021, as amended by instrument recorded on June 13, 2007 as
Document No. 2007-1203373, and as amended a second time by
instrumentrecorded November 18, 2009 as Document No. 2009-1245492.

Grantor: The Solana Courtyards Homeowners Association

(formerly Solana Cluster
Lots Homeowners Association),a
Washington non-profitcorporation.

Grantee: The Public

Abbreviated Legal Description: All of Solana ClusterLots Phase

I,per Platthereof
recorded in Volume 14 of Plats,Page 90, Records of Clallam
County,
Washington. Officiallegaldescriptionprovided on ExhibitA

Assessor's Tax Parcel ID#: 033028-520000

through 033028-520520 inclusive.
 THIRD AMENDMENT AND RESTATEMENT OF THE DECLARATION OF
COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND RESERVATIONS
FOR SOLANA COURTYARDS

This Third Amendment and Restatement of Declaration is made as of this 11Mday of

Timit , 2015, by the Solana Courtyards Homeowners Association, a Washington
Non-Profit Corporation.

RECITALS

A. The Declaration of Covenants, Conditions, Restrictions, Easements and

Reservations for Solana Cluster Lots (hereafterreferredto as the "Declaration"),was recorded
on March 23, 2006 in the Records of Clallam County, Washington as Document No. 2006-
1177021; was amended in the Records of Clallam County, Washington by instrument recorded
on June 13, 2007 as Document No. 2007-1203373, in which the name of the Declaration was
Easements and Reservations
changed to the Declarationof Covenants, Conditions,Restrictions,
for Solana Courtyards; and was amended a second time in the Records of Clallam County,
Washington by instrumentrecorded on November 18, 2009 as Document No. 2009-1245492.

B. The Declarationincludesmany provisionsforthe governance of the affairsof the

controlof new development, inclusionof additionalphases under the
Association,architectural
Declaration,maintenance and repairof common and rulesfor the orderly conduct and
facilities,
portion of these provisionsare
development of the Land subjectto the Declaration.A significant
dependent on actionsof the "Declarant."The "Declarant" is statedin the Declaration as being
"Sequim Highlands LLC, a Washington limitedliability company, and itssuccessorsand assigns
assigned the rightsand dutiesof Declarant by
ifsuch successorsor assignsshould be specifically
writteninstrumentin recordableform (Declaration,p. 2)."

C. With defaulthaving occurred in the obligationsof the originalDeclarant secured

or covenanted by a Deed of Trust recorded on January 12, 2007 under Clallam County Auditor's
No. 2007-1194490, together with the Modification of Deed of Trust recorded under Clallam
County Auditor'sNo. 2008-1217474, the property remaining under the ownership of the original
Declarant has been foreclosed.As a result,the Declarant'srole in the capacity as Declarant has
ended prematurely without the appointment of a successorDeclarant.

D. Green Crow Investments Co. LLC, a Washington limited liabilitycompany

(hereafterreferredto as "Green Crow"), acquired titleto allof Declarant'sforeclosed property
on October 29, 2014 as evidenced by Trustee'sDeed recorded under Clallam County Auditor's
No. 2014-1313648. Green Crow's acquisitionincluded 30 residential
lotsin the Solana Cluster
Lots Subdivision (AFN 2006-1177019), and allland shown on the face of the Plat of Solana
Estate Lots Subdivision as "Phase 2", and "Future Multi-Family Commercial Areas" (AFN
2006-1177015).

E. The Owners (as defined on page 3 of the Declaration)recognize and acknowledge

that the Association is hindered from achieving its full and intended purposes under the
Declarationby the absence of an authorizedDeclarant or successor Declarant.The Owners also
recognize thatGreen Crow isthe logicalentityfor assuming the role as successor Declarant by
virtueof the factthat Green Crow has acquired allof the originalDeclarant'sinterestin the
Property.Therefore,the owners wish to amend the Declarationto establishGreen Crow as the
Successor Declarant, to improve architectural review and control,to clarifyand govern the
affairsand procedures of the Association,to clarifythe rightsand obligationsof individuallot
owners, and to ensure the Associationisable to conduct itsaffairsin accordance with, and by the
authority so vested therein by the laws of the State of Washington and its Articles of
Incorporation.

F. The following textincludesamendments thatare intended to add to, modify and

amend the text of the Declaration,as recorded on March 23, 2006 as Document No. 2006-
1177021, as amended on June 13, 2007 by Document No. 2007-1203373, and amended a second
time on November 18, 2009 by Document No. 2009-1245492, Records of Clallam County, State
of Washington, and is presented herein as a Restatement of the aforementioned Declaration,as
amended.
 TABLE OF CONTENTS

ARTICLE 1 DEFINITIONS..............................................................................
Section 1.1 Definitions.....................................................................

ARTICLE 2 COMMON AREA...........................................................................

Section 2.1 Descriptionof Common Area. ....................................................
Section 2.2 Dedication of Common Area. .....................................................
Section2.3 Use of Common Area............................................................
Section 2.4 Delegation of Use................................................................
Section 2.5 Maintenance. ...................................................................
Section 2.6 AssociationFunctions............................................................

ARTICLE 3 OWNERS ASSOCIATION....................................................................

Section 3.1 Establishment...................................................................
Section 3.2 Form of Association.............................................................
Section 3.3 Articlesand Bvlaws. ............................................................
Section 3.4 Board of Directors..............................................................
Section 3.5 Membership and Voting Rights...................................................
Section 3.6 Transferof Membership...........................................................
Section 3.7 Books and Records...............................................................
Section 3.8 Inspectionof Association Documents, Books, and Records.....................7

ARTICLE 4 MANAGEMENT OF THE ASSOCIATION.....................................................

Section4.1 Administrationof the Property....................................................
Section 4.2 Authority and Duties of the Board..................................................
Section 4.3 Adoption of Rules and Regulations................................................
Section 4.4 AdditionalPowers of the Association..............................................

ARTICLE 5 ARCHITECTURAL CONTROL ...........................................................

Section 5.1 Constructionand ExteriorAlterations.............................................
Section 5.2 Declarant Facilities............................................................
Section 5.3 Declarant Inspectionsand Repairs.................................................

ARTICLE 6 USE RESTRICTIONS AND MAINTENANCE OBLIGATIONS..........................11

Section 6.1 Maintenance of Homes and Lots...................................................
Section 6.2 Restrictionson Parking and Storage................................................
Section 6.3 Roads, Sidewalks, and Paths......................................................
Section 6.4 ResidentialUse, Timesharing Prohibited...........................................
Section 6.5 No Nuisances....................................................................
Section 6.6 Restrictionon FurtherSubdivision.................................................
Section 6.7 Garbage and Trash Removal.......................................................
Section 6.8 Animal Restrictions.............................................................
Section 6.9 ......................................
@ns.................................................................
Section 6.10 Leasing.........................................................................
 Section 6.11 Zoning Regulations..............................................................
Section 6.12 Temporary Residence............................................................
Section 6.13 Building Setback Requirements....................................................
Section 6.14 LPG. ..........................................................................
Section 6.15 Oil and Mining Operations.......................................................
Section 6.16 Use and Disposal of Hazardous Substances.........................................
Section 6.17 ExteriorAdd-ons.................................................................
Section 6.18 Outdoor Fires...................................................................
Section 6.19 Screened Service Areas...........................................................

ARTICLE 7 ASSESSMENTS..............................................................................
Section 7.1 Creation of the Lien and Personal Obligation of Assessments...............16
Section 7.2 LiabilityforAssessments.........................................................
Section 7.3 Association Budgets.............................................................
Section 7.4 of Budget............................................................
Ratification
Section 7.5 Supplemental Budget. ...........................................................
Section 7.6 Propane Costs and Fees..........................................................
Section 7.7 Levy of Assessments.............................................................
Section 7.8 Amount of General Assessments. .................................................
Section 7.9 Assessment Period..............................................................
Section 7.10 Manner and Time of Payment......................................................
Section 7.11 Initial
Contributionto Working Capital............................................
Section 7.12 Accounts.......................................................................
Section 7.13 Lien...........................................................................
Section 7.14 SpecialAssessments.............................................................
Section 7.15 Waiver of Homestead.............................................................
Section 7.16 FinancialStatements and Records..................................................
Section 7.17 of Assessment.........................................................
Certificate
Section 7.18 Foreclosureof Assessment Lien; Attorneys' Fees and Costs.................19
Section 7.19 Curing of Default...............................................................

ARTICLE 8 INSURANCE................................................................................
Section 8.1 AssociationInsurance...........................................................
Section 8.2 Owner's Indurance...............................................................

ARTICLE 9 COMPLIANCE AND ENFORCEMENT ....................................................

Section 9.1 Enforcement....................................................................
Section 9.2 No Waiver of StrictPerformance..................................................
Section 9.3 Remedies Cumulative. ..........................................................

ARTICLE 10 LIMITATION OF LIABILITY..............................................................

Section 10.1 No Personal Liability.
...........................................................
Section 10.2 Indemnification.................................................................

ARTICLE 11 MORTGAGEE PROTECTION...............................................................

Section 11.1 Priorityof Mortgages.............................................................
 Section 11.2 Effectof DeclarationAmendments..................................................
Section 11.3 Rights of Lien Holders...........................................................
Section 11.4 Copies ofNotices................................................................
Section 11.5 Furnishing of Documents..........................................................

ARTICLE 12 ........................................................................................

EASEMENTS AND SPECIAL TRACTS..................................................................

Section 12.1 AssociationFunctions............................................................
Section 12.2 UtilityEasements. ...............................................................

ARTICLE 13 ABANDONMENT OF SUBDIVISION STATUS ...........................................

Section 13.1 Duration of Covenants. ..........................................................
Section 13.2 Abandonment of Subdivision Status...............................................

ARTICLE 14 LATER PHASES; ANNEXATION.............................................................

ARTICLE 15 AMENDMENT OF DECLARATION OR PLAT ............................................

Section 15.1 DeclarationAmendment. ........................................................
Section 15.2 Plat............................................................................
Section 15.3 Amendments to Conform to Construction..........................................

ARTICLE 16 MIS CELL ANEOUS .....................................................................

Section 16.1 Notices.........................................................................
Section 16.2 Conveyance: Notice Required.....................................................
Section 16.3 Successors and Assians...........................................................
Section 16.4 Jointand Several Liability.......................................................
Section 16.5 Mortgagee' s Acceptance. ........................................................
Section 16.6 Severability....................................................................
Section 16.7 Construction....................................................................
8
Section 16.8 Captions........................................................................
Section 16.9 EffectiveDate...................................................................

EXHIBIT A Property Subject to Declaration

EXHIBIT B Additional Property
 DECLARATION
OF
COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND RESERVATIONS
FOR
SOLANA COURTYARDS

Easements and Reservations for

This Declarationof Covenants, Conditions,Restrictions,
Solana Courtyards is made as of this day of , 2015, by the
Solana Courtyards Homeowners Association, Washington non-profitcorporation,hereinafter
a
referredto as the "Association."

RECITALS

A. Declarant is the owner of that certainreal property located within the City of Sequim,
Clallam County, Washington, known as Solana Cluster Lots Phase 1 and legallydescribed on
Exhibit A attachedhereto ("Solana Cluster Lots" or the "Property") and certainother property
known as Solana ClusterLots Phases 2 and 3 and legallydescribed on Exhibit B attachedhereto
(the"AdditionalProperty").

B. Declarant desiresto createan owners associationat Solana ClusterLots to provide forthe

maintenance, preservation,and architectural controlof the Lots, Homes and Common Area (as
defined below) within the Property and to promote the health,safety,happiness, and welfare of
the residentsof the community.

C. For the benefitand protectionof the Property, to enhance itsvalue and attractiveness,
Declarant provides herein for a comprehensive system of land-use and building controlswithin
the Property.

SUBMISSION OF THE PROPERTY TO THIS DECLARATION

Declarant,being the sole owner of the Property,hereby makes thisDeclaration for the
purpose of submitting the Property to thisDeclaration,and declaresthatthe Property described
above shallbe held,sold,conveyed, encumbered, leased,rented,occupied and improved subject
to the following covenants,conditions,restriction, grants of easement rights,rights
reservations,
of way, liens,charges and equitableservitudes, which are forthe purpose of protectingthe value
and desirability of the Property and shallbe binding on all partieshaving any right,titleor
interestin the Property or any part thereof,and shallinure to the benefitof each owner thereof.
This Declaration shall run with the land and bind Declarant, itssuccessors and assigns, all
subsequent owners of the Property or any part thereof,together with theirgrantees,successors,
deviseesor assigns.Any conveyance, transfer,
heirs,executors,administrators, sale,assignment,
leaseor sublease of a Lot shalland hereby is deemed to incorporateby referenceallprovisions
of thisDeclaration. The provisions of thisDeclaration shallbe enforceable by Declarant, any
Owner, the Association,and any first
Mortgagee of any Lot.

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 ARTICLE 1
DEFINITIONS

Section 1.1 Definitions. For the purposes of this Declaration and any amendments
shallapply.
hereto,the following definitions

of incorporationof the Association,as defined below.

"Articles"shallmean the articles

"Assessments" shallmean allsums chargeableby the Associationagainsta Lot, including,

without limitation:
(a)generaland specialAssessments forCommon Expenses; (b)costof propane;
(c)charges and finesimposed by the Association;(d) interest
and latecharges on any delinquent
Owner's account;and (e)costsof collection,including reasonable attorneys'fees,incurredby the
of a delinquentOwner's account.
Associationin connectionwith the collection

"Association"shallmean the Solana Courtyards Homeowners Association,a Washington

non-profitcorporation,as describedmore fullyin Article3, and itssuccessorsand assigns.

"Board" shallmean and referto the Board of Directorsof the Association,as provided
forin Article4.

"Bylaws" shallmean the bylaws of the Association as they may from time to time be
amended.

"City" shallmean the City of Sequim, Stateof Washington.

"County" shallmean the County of Clallam, Stateof Washington.

"Common Areas" shallmean the realproperty and improvements described in Article2.

"Common Expenses" shall mean the expenses and liabilities of the Association,
including, but not limited to, the expenses of the Association relating to the operation,
maintenance and improvement of the Common Areas and other areas as provided for in this
Decalartion.

"Declarant" shallmean Sequim Highlands LLC, a Washington limitedliability company,

for the period preceding June 1, 2015; and Green Crow Investments Co. LLC, a Washington
limitedliabilitycompany, forthe period beginning June 1,2015, and itssuccessorsand assigns if
such successorsor assigns should be specifically
assigned the rightsand dutiesofDeclarant by
writteninstrumentin recordableform.

"Declaration" shall mean this Declaration of Covenants, Conditions, Restrictions,

Easements and Reservationsfor Solana Courtyards and any amendments thereto.

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 "Home" shallmean a structurelocatedon a Lot which is designed and intended for use
and occupancy as a residenceor which isintended foruse in connection with such residence.

"LPG" shallmean liquidpropane gas.

and Implementation of
'LPG Agreement" shallmean the Agreement for the Installation
Propane Gas Equipment Solana Cluster Lots recorded under Recording No. 2006-1177022,
recordsof Clallam County, Washington.

"Lot" shallmean and referto any of the numbered lotsshown upon the Plat. Ownership
of a Lot shallinclude ownership of the Home and improvements now or hereafterconstructedon
the Lot.

"Member" shallmean a person entitledto membership in the Association pursuant to

Section 3.5.

"Mortgage" shallmean a recorded mortgage or deed of trustthatcreatesalien against a

Lot and shallalsomean a realestatecontractforthe saleof a Lot.

"Mortgagee" shallmean the beneficialowner, or the designee of the beneficialowner, of

an encumbrance on a Lot createdby a Mortgage and shallalso mean the vendor, or the designee
of vendor, of a real estatecontractfor the sale of a Lot. For the purpose of determining the
percentage of firstMortgagees approving a proposed decision or course of action,a Mortgagee
shall be deemed a separate Mortgagee for each Lot on which it holds a Mortgage which
constitutes lienon saidLot. Mortgagees shallhave the same voting rightsas the owners of
a first
any Lot subjectto such Mortgage.

"Notice and Opportunity to be Heard" shallmean the procedure wherein the Board shall
give writtennoticeof the proposed actionto allOwners, tenantsor occupants of the Lots whose
interestwould be significantly affected by the proposed action. The notice shall include a
general statementof the proposed actionand the date,time and place of the hearing,which shall
be not lessthan five days from the date notice is delivered by the Board. At the hearing,the
affectedperson shallhave the right,personallyor by a representative,to give testimony orally,in
writing or both (as specifiedin the notice),subjectto reasonable rulesof procedure established
by the Board to assure a prompt and orderly resolutionof the issues. Such evidence shallbe
considered in making the decision but shallnot bind the Board. The affectedperson shallbe
notifiedof the decisionin the same manner in which noticeof the meeting was given.

"Owner" shallmean the owner of record,whether one or more persons or entities, of a

fee simple titleto any Lot and, except as may be otherwise expresslyprovided herein,shall,in
the case of a Lot which has been sold pursuant to a real estatecontract,include any person of
record holding a vendee's interestunder such realestatecontract,to the exclusionof the vendor
thereunder. Any person or entityhaving such an interestmerely as securityforthe performance
of an obligationshallnot be considered an owner.

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 "Person" shall include natural persons, partnerships,corporations, limited liability
companies, associations,
trusts, or other legalentities.
personalrepresentatives

"Plat" shallmean the plat of Solana Cluster Lots recorded at Volume 14 of Plats,Page
90, under Recording No. 2006-1177019, records of Clallam County, Washington, and the plat or
plats for laterphases of Solana Cluster Lots, when they are filed;and any subsequently filed
amendments, corrections, or addenda.

"Property" shallmean thatportion of the Platdescribed in ExhibitA attachedhereto,as it

may be amended to add portions of the Additional Property as itis plattedas laterphases of
Solana Cluster Lots, and all improvements and Structuresnow or hereafterplaced on the
Property.

"Solana" shall mean the Property included in the Plat and the Solana Estate Plat,
includingallLots and Common Areas shown thereon.

"Solana Community Association" shallmean the owners associationfor Solana pursuant

Easements and Reservations recorded
to the Declarationof Covenants, Conditions,Restrictions,
under Clallam County Recording No. 2006-1177023.

"Solana Estate Plat" shall mean the plat for Solana Estate Lots Phase 1 recorded at
Volume 14 of Plats,at Page 89, Auditor's FileNo. 2006-1177015, and any subsequent platsfor
laterphases of Solana EstateLots.

"Structure" shall mean any building, wall, pole, driveway, utilities,

walkway, patio,
antenna or the like.

ARTICLE 2
COMMON AREA

Section2.1 Description of Common Area. The Common Areas are the areas labeled
"Common Area" on the Plat. In general,they consistof the streets,
driveways, walkways and
landscaped areaswithin the Plat.

Section2.2 Dedication of Common Area. Declarant,by recording the Plat,dedicates,

transfersand conveys the Common Areas and any easements appurtenant thereto to the
Association.

Section2.3 Use of Common Area. Each Owner

shall have the right to use the
Common Area in common with allother Owners, subjectto this Declaration,the Bylaws, any
rulesand regulationsadopted by the Association,and the following:

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 2.3.1 use of portionsof the Common
The Association may totallybar or restrict
Area where ordinary use could be dangerous, unreasonably increase Association costs,or be
with itsdesignateduse on the Plat.
detrimentalto the environment, or isinconsistent

2.3.2 The Association shallhave the rightto suspend the voting rightsby any
Owner for any period during which any assessment against such Owner's Lot remains unpaid,
and for a period not to exceed 60 days for any, and for each separate,infractionof the
Association'spublished rulesand regulations.

2.3.3 The Association shallhave the right to dedicate or transferall or any

portion of the Common Area, including easements thereon, to any public agency, authority,or
for such purposes and subjectto such conditionsas may be agreed to by the Members. No
utility
such dedicationor transfershallbe effectiveunless two-thirdsof each classof Members vote or
consent in writingto such dedicationor transfer.The instrument dedicatingor transferringallor
any portion of the Common Area shall be executed by the president and secretary of the
Associationwho shallcertifythatthe requisitevote or consent has been obtained.

Section 2.4 Delegation of Use. Any Member may delegate,in accordance with such
rulesand regulationsas the Association shallpromulgate, his or her rightof use and enjoyment
of the Common Area to family members, guests,and tenantsof such Member. Each Owner shall
be responsible for informing such Owner's family members, guests, tenants, and service
personnel of the contents of thisDeclaration as well as any rules and regulationsthat may be
adopted by the Association as they may relateto the use and enjoyment of the Common Area.
Each Owner shallbe personally liablefor any damage to any Common Area or any other area
maintained by the Association or to any other property of the Association, whether real or
personal,caused by the Owner or the Owner's family member, guest,tenant,agent, workman,
contractoror other licenseeor invitee.The Association may have alien upon the Owner's Lot
for the amount of such damages as determined by the Board afterNotice and Opportunity to be
Heard.

Section2.5 Maintenance. The Association shall have full responsibilityfor the

maintenance, repair,replacement and improvement of the Common Area, includingany common
locatedtherein,to the extent they are not maintained by a public utility.All such areas
utilities
and facilitiesshall be reasonably maintained for their intended use, subject to applicable
governmental restrictions.

Section 2.6 Association Functions. There is hereby reserved to Declarant and the
Association or theirduly authorized agents and representativessuch easements as are necessary
to perform the dutiesand obligationsof the Association as are setforthin the Declaration,or in
the Bylaws, and rulesand regulationsadopted by the Association.

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 ARTICLE 3
OWNERS ASSOCIATION

Section3.1 Establishment. There is hereby created an associationcalledthe Solana

Courtyards Homeowners Association (the"Association").

Section3.2 of Association. The Association shallbe a nonprofit corporation

Form
formed and operated under the laws of the Stateof Washington.

Section 3.3 Articlesand Bvlaws. Declarant will adopt Articlesof Incorporationand

will propose to the initialBoard of Directors the adoption of Bylaws to supplement this
Declaration and to provide for the administrationof the Association and the Property and for
other purposes not inconsistentwith thisDeclaration. In the event of any conflictbetween this
Declaration and the Articlesfor such nonprofit corporation,the provisions of thisDeclaration
shallprevail. Bylaws for the administrationof the Association and the Property,and to further
the intentof thisDeclaration,shallbe adopted or amended by the Owners at regular or special
meetings; provided thatthe initialBylaws shallbe adopted by the Board of Directors. In the
event of any conflictbetween thisDeclarationand any Bylaws, the provisionsof thisDeclaration
shallprevail.

Section 3.4 Board of Directors.The Association shall be managed by a Board of

Directorswho are members of the Association. They shallbe electedas setforthin the Articles
of Incorporationand Bylaws of the Association.

Section3.5 Membership and Voting Rights. The Association shallhave two classes
of voting membership:

3.5.1 Class A Members shallbe all Owners

except the Declarant, and each
Class A Member shallbe entitledto one vote for each Lot owned, whether improved or not.
When more than one Person holds an interestin any Lot, allsuch Persons shallbe Members.
The vote for such Lot shallbe exercisedas the jointowners may decide among themselves, but
in no event shallmore than one vote be castwith respectto any Lot.

3.5.2 The Class B member shallbe the Declarant who shallbe entitledto ten
votes for each lotowned by it.The Class B classof membership shallcease and be converted to
Class A membership upon the occurrence of the earlierof the following events:(i)eighty (80%)
percent of the Declarant'slotshave been sold afterplatshave been recorded with respectto allof
the Property;or (ii)a minimum of ten (10) years from the date on which the Third Amendment is
recorded-after which the Class B classof membership may be relinquishedby, and at the sole
discretionof, the Declarant by writteninstrument recorded in the Office of the Clallam County
Auditor, Stateof Washington.

Section 3.6 Transfer of Membership. The membership in the Association of each

Owner (includingDeclarant) shallbe appurtenantto the Lot giving riseto such membership, and

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shallnot be transferredin any way except upon the transferof titleto the Lot, and then only to
the transfereeof titleto the Lot. Any attempt to make a prohibitedtransfershallbe void. Any
to a Lot shalloperateautomaticallyto transferthe membership in the Association
transferof title
to the new Owner.

Section3.7 Books and Records. The Board shallcause to be kept complete, detailed,
and accuratebooks and recordsof the receiptsand expendituresof the Association,in a form that
complies with standard accounting principles.The Board or a majority of the Owners may at
any time requirean annual audit prepared by an independent certified public accountant which
shallbe paid for by the Association.

Section 3.8 Inspection of Association Documents, Books, and Records. The

Association shall make availableto Owners, Mortgagees, prospective purchasers and their
prospective mortgagees, and the agents or attorneys of any of them, current copies of this
Declaration,the Articles,
the Bylaws, and other rules,books, records,and financialstatementsof
the Association, and the most recent annual audited financialstatement, if one is prepared.
"Available" shallmean availablefor inspectionupon request,during normal business hours or
under otherreasonablecircumstances. The Association may requirethe requestingparty to pay a
reasonable charge to pay the cost of making the copies.

ARTICLE 4
MANAGEMENT OF THE ASSOCIATION

Section4.1 Administration of the Property. The Owners covenant and agree thatthe
administrationof the Property shallbe in accordance with the provisionsof thisDeclarationand
the Bylaws of the Associationwhich are made a part hereof. Administrativepower and authority
shallbe vested in the Board.

Section4.2 Authority and Duties of the Board. On behalf of and acting for the
Association,the Board, forthe benefitof the Property and the Owners, shallhave allpowers and
authority permitted to the Board under this Declaration including, but not limited to, the
following:

4.2.1 Levy, collect,and enforce the collection of, Assessments, as more

setforthin Article7 hereof,to defray expenses attributable
particularly to carrying out the duties
and functionsof the Associationhereunder.

4.2.2 Require any officer or employee of the Association handling or

responsibleforAssociation funds to furnishadequate fidelity
insurance,the premiums for which
shallbe paid by the Association.

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 4.2.3 Enter into agreements with one or more qualifiedpersons to assistitin
carrying out itsobligationsunder this Declaration,collectingAssessments, sending noticesto
of the Association.
Members, operatingAssociation meetings, and other regularactivities

4.2.4 Contract and pay for any materials,supplies,labor or serviceswhich the

Board should determine are necessary or proper for carryingout itspowers and dutiesunder this
Declaration,includinglegal,accounting,management, securitypatrolor otherservices.

4.2.5 Impose and collectcharges for late payment of Assessments as further

provided in Article7, and, afterNotice and Opportunity to be Heard by the Board or by such
representativedesignated by the Board and in accordance with such procedures as provided in
this Declaration,the Bylaws, or rules and regulationsadopted by the Board, levy reasonable
fines in accordance with a previously establishedschedule thereof adopted by the Board and
furnishedto the Owners for violationsof thisDeclaration,the Bylaws, and rulesand regulations
of the Association.

4.2.6 Institute, or administrativeproceedings

defend, or intervenein litigation
on matters affectingthe Association;provided, however, that
in itsown name on behalf of itself
the approval of Owners holding at least67% of the votes in the Association shallbe required
commence or intervenein any litigation
before the Association may institute, or administrative
or other proceedings against Owners for
other than litigation
proceeding, including arbitration,
collectionof delinquent Assessments or for enforcement of the Declaration or rules and
regulationsof the Association;but Owner approval shallnot be required for settlementof such
or administrativeproceedings.
litigation

4.2.7 Grant easements, leases,licenses,and concessions through or over the

Common Areas.

4.2.8 Impose and collectany payments, fees,or charges for the use, rental,or
operationof the Common Areas and for servicesprovided to Owners.

4.2.9 Acquire, hold, encumber, convey, and dispose of, in the Association's
to realor tangibleand intangiblepersonal property;provided thatthe
or interest
name, right,title,
encumbrance, conveyance or other dispositionof any portion of the Association'srealproperty
shallrequirethe approval of the Owners holding a majority of the votes in the Association.

4.2.10 Arrange for and superviseany additionor improvement to the Common

Areas, provided that if the estimated cost of any separate property acquisition,addition,or
improvement to the Common Areasexceeds $25,000, the approval of the Owners holding a
majority of the votes in the Associationshallbe required.

4.2.11 Provide propane gas service to Homes and allocatethe cost thereof to
Owners based on usage.
 4.2.12 All checks, drafts,or other orders for the payment of money, notes, or
other evidences of indebtednessin the name of the Association shallbe
signed by such officeror
officers,agent or agents of the Association and in such manner as is from time to time
determined by the Board.

Section4.3 Adoption of Rules and Regulations. When and to the extent it deems
advisable, the Board may adopt reasonable rules and regulations governing the operation,
maintenance or use of the Common Area, Lots and Homes and other matters of mutual concern
to the Members, which rules and regulationsare not inconsistentwith thisDeclarationand the
Bylaws and which treatallMembers fairlyand in a non-discriminatorymanner.

Section4.4 Additional Powers of the Association. In addition to the duties and

powers of the Association,as specifiedherein and elsewhere in thisDeclaration,but subjectto
the provisionsof thisDeclaration,the Association,actingthrough itsBoard, shallhave the
power
to do allother things which may be deemed reasonably necessary to carry out itsdutiesand the
purpose of thisDeclaration.

ARTICLE 5
ARCHITECTURAL CONTROL

Section 5.1 Constructionand ExteriorAlterations.

5.1.1 All Structures(including,without limitation,concrete or masonry walls,

rockeries,driveways, exteriorlighting, if
hedges, swimming pools, any, or other Structures)to be
constructed,erected, placed or altered within the Property, all exterior alterationsof any
Structureson the Property and visiblefrom any streetor other Lot, and
any constructionor
alterationof landscaping on the Property must be approved by the Board or an Architectural
Control Committee ("ACC") composed of threeor more representatives
appointed by the Board;
provided, that untilcompleted Homes have been constructedon allof the Lots, the Declarant
shall act as the ACC. Complete plans and specificationsof all such proposed buildings,
structures,exterior or landscaping togetherwith detailedplans showing the proposed
alterations,
locationof the same on the particularbuilding siteand other data requested
by the ACC shallbe
submitted to the ACC before constructionor alteration is begun. Constructionor alteration shall
not be starteduntilwrittenapproval thereofis given by the ACC. Fences shallnot be permitted
on any Lot.

5.1.2 The ACC will review submittalsas to the quality of

workmanship and
materials planned and for conformity and harmony of the exterior
design with proposed or
existing structureson the Lots and, as to locationof the with
building, respect to topography,
finish grade elevation and building setback restrictionsand
compliance with the Plat, in
accordance with architecturalguidelinesto be adopted by the ACC.

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 5.1.3 All plans and specifications submitted for approval by the ACC must be
submitted in duplicate,hard copy, full-size
and to scaleof %-inch to 1-foot,at least14 days prior
to the proposed constructionor exterioralteration startingdate.One approved setof plans shall
be permanently retainedwith the ACC. Itis stronglyrecommended thatplans be submitted to the
ACC for review prior to submittal to the City for building permit review in order to avoid
unnecessary costsand delays during the buildingpermit process.

5.1.4 The maximum height of any building shallbe establishedby the ACC as
part of a comprehensive view protectionplan. Prior to the completion of the view protection
plan,the maximum height shallbe establishedby the ACC as part of plan approval and shallbe
given in writingtogetherwith the approval.

5.1.5 The ACC may require that allplans or specifications be prepared by an

architector a competent house designer (landscape architectfor landscaping plans and
specifications)approved by the ACC. One complete set of the plans and specifications shallin
each case be deliveredto and permanently leftwith the ACC. All buildingsor structuresshallbe
erectedor constructed,and allexterioralterations made, by a contractor,house builderor other
person or entityapproved by the ACC. The ACC shallhave the rightto refuse to approve any
design,plan or color for such improvements, constructionor exterioralterationvisiblefrom a
streetor other Lot which isnot suitableor desirable,in the ACC's opinion,and such refusalmay
be based entirelyon aestheticor other factors;provided, the ACC shallclearlystate,in writing,
the reasons for such refusal.

5.1.6 In evaluating any design, the ACC may consider the suitability of the
the material of
proposed building or other structure, which itis to be built,the exteriorcolor
scheme, the siteupon which such buildings or are
structures proposed to be built,the harmony
thereofwith the surroundings,and the effector impairment that such building or structurewill
have on the view or outlook of surrounding Lots,compliance with the Plat,and any and allother
factorswhich, in the ACC's opinion, shallaffectthe desirability of such proposed
or suitability
building,improvements, or exterioralteration.
structure,

5.1.7 The ACC shallhave the rightto disapprove the design or installation of
any recreationalstructureor equipment deemed undesirable,in the ACC's reasonable opinion,
based on aestheticfactors or otherwise. The ACC may consider the visual impact of the
proposed structureor equipment and the noise impact of the relatedactivities
upon allnearby
Lots or Common Area. Any enclosure or cover used in connection with such a recreational
structureor equipment whether temporary, collapsible,or seasonal, shall be treated as a
permanent structurefor purposes of these covenants, and shallbe subjectto allthe conditions,
and requirements as setforthherein forallbuildingsand structures.
restrictions,

5.1.8 Declarant (including any successor in interestto Declarant's status as

Declarant) shallnot of this Section 5.1 as to any Lot owned by
be subject to the restrictions
Declarant.

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 5.1.9 By majority vote, the ACC may adopt and amend architectural
guidelines
consistentwith thisDeclarationfor making itsdeterminationshereunder.

5.1.10 No Structureshallbe erected,altered,placed or permitted to remain on

any Lot unless the Structurecomplies with the Plat and with applicablebuilding codes. The
ACC may requirethatthe Owner furnishthe ACC with evidence thatall
necessary permits have
been obtained from the City for any work on a Lot for which ACC approval is
required under
thisSection priorto commencement of the work.

Section 5.2 Declarant Facilities.

Notwithstanding any provision in thisDeclarationto
the contrary,Declarant and itsagents,employees and contractorsshallbe
permitted to maintain
during the of saleof Lots or Homes such of the
period upon portion Property (other than Lots
sold by Declarant) as Declarant may choose, such facilities as in the sole opinion of the
Declarant may be reasonablyrequired,convenient or incidentalto the construction,saleor rental
of Lots and Homes, including but not limitedto a business office,
storage area, signs,model
units,salesoffice,constructionofficeand parking areas for allprospectivetenantsor purchasers
of Declarant.

Section 5.3 Declarant Inspectionsand Repairs. Declarant shallhave the right,but not
the obligation,to conduct inspectionsand testsfrom time to time of all or
any parts of the
Property in order to ascertainthe physical condition of the improvements on the Lots and to
determine whether maintenance, repairs or replacements of any such
improvements are
indicated. Declarant shall pay all costs of such inspectionsand testsmade
pursuant to this
Section and shallhave the rightto make such repairsat itdeems
appropriate. Declarant shall
have such rightsof entry on, over, under, across and through the Lots as
may be reasonably
necessary to exercisethe rightsdescribed in this Section. Declarant shall provide reasonable
advance noticeto the Associationof the inspectionsand repairs.

ARTICLE 6
USE RESTRICTIONS AND MAINTENANCE OBLIGATIONS

Section 6.1 Maintenance of Homes and Lots. Except for the lawns on the Lots and
such other maintenance and repairswhich are to be performed
by the Association pursuant to the
provisionsof thisDeclaration,each Owner, at the Owner's cost and expense, shallpromptly and
continuously maintain, repair,replace and restoreallportions of the Owner's Home and other
structures,improvements or equipments on the Owner's Lot in a good, clean,attractive, safe and
sanitary condition and in full compliance with all applicable laws, the
provisions of this
Declaration,and any rules and regulationsof the Association.If any Owner failsto maintain,
repair,replace or restorethe Owner's Home, other structures, improvements and equipments
locatedon the Lot, or the Owner's Lot, the Association may, afterNotice and
Opportunity to be
Heard, at the Owner's cost and expense, maintain,repair,replace or restoresuch items or areas.
The Owner shallpay or reimburse the Association on demand for allsuch costs and
expenses.
All trees,hedges, shrubs, and flowers shallbe
kept in an attractive,
neat,trimmed and pruned

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condition.Owners shallnot allow theirLots to become overgrown or unkempt so as to create
visualnuisance.Leaves, clippings,dead plantsand other yard waste shallbe placed in a compost
pileor appropriatecontainersfor disposal.

Section6.2 Restrictionson Parking and Storage. Parking ispermitted only in garages,

driveways, or in designated parking spaces on the Common Areas. Each Home has a two or
three car garage. Itis expected thatOwners will use theirgarages for parking theirown motor
vehiclesand will keep theirgarages availablefor such purposes. Garages may not be converted
to living space without approval of the ACC. Parking in Common Area parking spaces is
reserved for temporary parking by guests or business invitees subject to such rules and
regulationsas the Association may adopt. No Owner shallstoreor allow any occupant or tenant
to storeany trailers,boats, motor homes, recreationalvehicles,or trucks over two tons (except
those used by Declarant in connection with the development of the Property or constructionof
the Homes) or any disabledor inoperablemotor vehicleon the Property unless any such vehicle
is completely enclosed and hidden from view within a garage. Violationsof thisSection shall
subjectsuch vehiclesto impound, atthe expense and riskof the owner thereof.

Section 6.3 Roads, Sidewalks, and Paths. The roads, sidewalks and paths located
within the Plat shallbe maintained by the Association and used exclusivelyfor normal access,
ingress and egress,and no obstructionsshallbe placed thereon or therein except by express
writtenconsent of the Board.

Section6.4 ResidentialUse; Timesharing Prohibited. All Lots and Structureslocated

thereon shallbe used, improved and devoted exclusivelyfor residential
purposes only,including:
(i) sleeping, eating, food preparation for on-site consumption by occupants and guests,
entertainingby occupants or personal guests,and similaractivities
commonly conducted within a
residentialdwelling, (without regard to whether the Owner or occupant uses a Home as a
primary or secondary personal residence, on an leaseor
ownership, rental, inviteebasis)or such
other reasonable ancillary purposes commonly associated with residentialdwellings and
otherwise in compliance with thisDeclarationand allapplicablelaws for residential
dwellings;
(ii)for use as a home office or for a home occupation not involving use by nonresident
employees or regular visitsby customers or clients,unless the Board determines that such use
would not adverselyaffect(a)the rightof the other Owners to the quietenjoyment of theirHome
and Lot or (b) the value of the other Homes and Lots; (iii)
the common social,recreationalor
other reasonable uses normally incidentto such purposes; and (iv)for purposes of operating the
Association and managing the Property.Timesharing of Homes, as defined in RCW 64.36, is
prohibited.

Section 6.5 No Nuisances. No noxious or offensiveconditionshallbe permitted upon

any Lot or improvement thereon,nor shallanything be done thereon which isor may become an
annoyance or nuisance to other occupants of the Property.

Section 6.6 Restrictionon Further Subdivision. No Lot, or any portion of a Lot in the
Property,shallbe divided and sold or resold,or ownership changed or transferredwhereby the

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 in
ownership of any portion of the Property shallbe lessthan the area required forthe use district
which the Property is located;provided, the foregoing shallnot prohibit deeds of correction,
deeds to resolveboundary disputesand similarcorrectiveinstruments.

Section6.7 Garbase and Trash Removal. No Lot or Common Area shallbe used as a
dumping ground for rubbish,trash,garbage, litter,junk and other debris. All garbage or trash
shallbe placed in appropriatesanitarycontainersfor regulardisposalor recycling. Each Owner
shallbe responsible for the prompt and regular disposal of all of garbage or trash from the
Owner's Home. All containersfor garbage or trashshallbe setout forcollectionin a designated
locationonly on collectionday.

Section 6.8 Animal Restrictions.No insects,reptiles, poultry or animals of any kind

shallbe raised,bred or kept in any Home or any Lot, except thatdomesticated dogs, catsor other
usual household pets (hereinafter referredto as "pets")may be kept in a Home subjectto rules
and regulationsadopted by the Board. No more than two dogs, two catsor one dogs and one cat
may be kept in any Home. The Board may prohibitdangerous breeds of dogs. No dog houses,
kennels, dog runs or the like may be kept or maintained on any Lot. All pets when outside a
Home but on a Lot shallat alltimes be kept on an adequate leash or other means of physically
controllingthe pet by a person capable of controlling the pet. Owners shall clean up
immediately aftertheirpets. Any Owner whose pet violatesthese provisionsor who causes any
unreasonable noise or damage to persons or property shallbe liableto allsuch harmed Owners
and theirfamilies,guests,and invitees.The Board may at any time requirethe removal of any
pet at the Owner's sole expense which the Board findsis disturbingother Owners unreasonably,
and may exercisethisauthorityfor specificpets even though other pets are permitted to remain.

Section 6.9 Signs. No signs shallbe displayed to public view on any Lot except (i)
signs used by Declarant or other home builders advertisingHomes for sale,(ii)a directoryor
directorieslistingHomes for saleor leaseapproved by the Board; or (iii)
permanent entry sign or
signs forthe Property.

Section 6.10 Leasing. With respectto the leasing,renting,or creationof any kind of
tenancy of a Home, the Owner (except for a lender in possession of a Lot and improvements
locatedthereon following a defaultin a firstMortgage, a foreclosureproceeding, or any deed of
trustsaleor other arrangement in lieuof a foreclosure)shallbe prohibitedfrom leasingor renting
lessthan the entireHome, and for any term lessthan six months. Any leaseor rentalagreement
must provide thatitsterms shallbe subjectin allrespectsto the provisionsof the Declaration,the
Bylaws, and rulesand regulationsof the Association and thatany failureby the tenantto comply
with the terms of such documents, rules,and regulationsshallbe a defaultunder the lease or
rentalagreement. If any leaseunder thisSection does not containthe foregoing provisions,such
provisions shallneverthelessbe deemed to be part of the leaseand binding upon the Owner and
the tenant by reason of theirbeing statedin thisDeclaration. The Board may adopt a rule that
requiresany Owner desiringto renta Home to have any prospectivetenant (otherthan a relative
of the Owner) screened, at the Owner's cost, by a tenant screening service designated or
approved by the Board and to furnishthe reportof the tenant screening serviceto the Board or its

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designee priorto Owner's enteringintoa leasewith the prospectivetenant. All leasesand rental
agreements shallbe in writing. Copies of allleasesand rentalagreements shallbe deliveredto
the Associationbefore the tenancy commences. If any lesseeor occupant of a Home violatesor
permits the violationby his guests and inviteesof any provisionshereof or of the Bylaws or of
the rulesand regulationsof the Association,and the Board determines thatsuch violationshave
been repeated and thata prior noticeto cease has been given, the Board may give notice to the
lesseeor occupant of the Home and the Owner thereofto forthwithcease such violations.Ifthe
violationisthereafterrepeated,the Board shallhave the authority,on behalf and at the expense
of the Owner, to evictthe tenant or occupant ifthe Owner failsto do so afterNotice from the
Board and an Opportunity to be Heard. The Board shallhave no liability to an Owner or tenant
for any evictionmade in good faith.The Association shallhave alien againstthe Owner's Lot
for any costsincurredby itin connection with such eviction,includingreasonable attorneyfees,
which may be collectedand foreclosedby the Association in the same manner as Assessments
are collectedand foreclosedunder thisDeclaration. Other than as statedin thisSection,there is
on the rightof any Owner to leaseor otherwiserenthis Home.
no restriction

Section6.11 Zoning Regulations. Zoning regulations, building regulations,

environmental regulationsand other similargovernmental regulationsapplicableto the Property
subjectto thisDeclarationshallbe observed. In the event of any conflictbetween any provision
of such governmental regulations and restrictions of this Declaration, the more restrictive
provision shallapply.

Section6.12 Temporary Residence. No outbuilding,basement, tent,shack, garage,

shed or temporary building of any kind shallbe used as a residenceeithertemporarily or
trailer,
permanently.

Section6.13 Building Setback Requirements. All Structures and other Lot

improvements shall comply with all applicablegovernmental requirements including,without
minimum setback requirements.
limitation,

Section6.14 LPG. Pursuant to the LPG A eement, the followin covenants are
imposed on allUnits/Homes:

6.14.1 Each Home shallbe adequately plumbed foruse of LPG when constructed
and yard line connections must be installedbetween the Equipment and the Home to provide
deliveryof LPG service;

6.14.2 LPG plumbing in each Home will include,but not be limitedto,plumbing

for water heaters,clothes dryers,centralheating and/or furnaces,stoves,ranges, and fireplaces
the "Gas Appliances"),and any heated pools to be constructed
(ifany in the Unit) (collectively,
within an individualHome must be constructedwith and use gas plumbing forthe heating of the
pool;

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 6.14.3 LPG plumbing shallbe installed requiredby Clallam
to the specifications
County, Washington, or itssuccessorand allother applicablelaws and regulations;

6.14.4 All water heaters,centralheating and/or furnaces,installedin each Home

(collectively, "Required Gas Appliances") and to the extent commercially reasonable, all
the
clothes dryers,stoves,ovens and ranges, shallbe propane gas appliances,and approval by the
ACC or Board of the plans and specificationsfor and constructionof any Home require gas
plumbing for all Gas Appliances and installation of the Required Gas Appliances shall be
and constructionof
required as a condition precedent to approval of plans and specifications
Homes;

6.14.5 No above-ground bulk storage LPG tanks may be stored,maintained or

used within the Plat;and

6.14.6 Ferrellgasshallhave the authorityto prosecute proceedings at law or in

equity against any person or entityviolatingor attempting to violate any of the provisions
described in this Section,including seeking damages (including lostprofits)and/or injunctive
relief.

Section6.15 Oil and Mining Operations. No oil drilling,oil development operations,

oil refining,quarrying or mining operationsof any kind shallbe permitted upon or in any Lot,
nor shalloilwells,tanks,tunnels,mineral excavationsor shaftsbe permittedupon or in any Lot.
No derrickor other structuredesigned for use in boring for oilor naturalgas shallbe erected,
maintained or permittedupon any Lot.

Section 6.16 Use and Disposal of Hazardous Substances. The Owner of each Lot shall
comply with allstate,federaland locallaws and regulationsgoverning or in any way relatingto
the handling, storage, use, dumping, discharge or disposal of any hazardous substance or
material. The Owner of each Lot shallnot dispose of or discharge any hazardous substance or
materialson any Lot, Common Area, or otherarea locatedwithin the Property.

Section 6.17 ExteriorAdd-ons. No awnings, airconditioningunits,basketballhoops or

other projectionsshallbe placed on or hang from the exteriorsurfacesof any Home unless they
have been approved by the Board.

Section 6.18 Outdoor Fires. Outdoor barbecues may be used for cooking on the Lots
when permitted by law. Reasonable and adequate precautions against firesmust be taken.
Excessive smoke or soot accumulation from firesshallnot be allowed. No other outdoor fires
shallbe permitted on the Property.

Section 6.19 Screened Service Areas. Unsightly items must be hidden from view
within a Home or screened area where they will not be seen from another Home or street.
Unsightly items shall include, but shall not be limited to, garbage and trash,clothes lines,
bicycles,recreationalgear, outdoor maintenance equipment, firewood and ladders. The design

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and materialsused for any screened area shallbe consistentwith the general appearance of the
Home and must receivepriorapproval from the ACC.

ARTICLE 7
ASSESSMENTS

Section 7.1 Creation of the Lien and Personal Obligation of Assessments. Each
Owner of a Lot by acceptance of a deed thereforwhether or not itshallbe so expressed in such
deed, isdeemed to covenant and agree to pay to the Association any Assessment duly levied by
the Association as provided herein. The Association has alien on each Lot for any unpaid
Assessment leviedagainstthe Lot from the time the Assessment isdue. Alien under thisArticle
shallbe priorto allother liensand encumbrances on a Lot except: (a)liensand encumbrances
recorded before the recording of thisDeclaration;(b) a mortgage on the Unit recorded before the
date on which the Assessment sought to be enforced became delinquent. The Assessment shall
also be the personal obligationof the person who was the Owner of such Lot at the time when
the Assessment felldue. The personal obligationfor delinquent Assessments shallnot pass to
his successor titleunless unless expressly assumed by that party. When ownership of a Lot
changes, Assessments which have been establishedfor the currentfiscalyear shallbe prorated
between the buyer and sellerbased on a 365 day year.

Section 7.2 Liabilityfor Assessments. Any Assessments which may be levied from
time to time pursuant to the authorityof the Board shallbe establishedin accordance with this
Article,except for Assessments levied against an Owner for the purpose of reimbursing the
Association for costs incurredin bringing the Owner or his Home or Lot into compliance with
the provisions of thisDeclaration. Common Expenses shallbe allocatedequally among Lots;
provided, however, Declarant shallnot be obligatedto pay any Assessment levied against any
Lots owned by itunless a Home has been constructedon the Lot and the Home is occupied. No
Owner may exempt himself or herselffrom liability for his Assessments by abandoning his or
her Home.

Section 7.3 Association Budgets. Budgets shallbe prepared by the Board, subjectto
ratification
by the members of the Association as provided below. The budgets shallset forth
sums required by the Association, as estimated by the Board, to meet its annual costs for
Common Expenses, for allexistingand projected improvements across the currently-approved
phases of Solana Courtyards, including a reasonable sum for reserves for future major repairs
and replacements for which the Association is responsible.Assessments on each Lot shall
commence upon the closing of the saleby Declarant of the Lot with a completed Home or upon
the occupancy of the Home, whichever is earlier. Until Assessments have commenced on all
Lots, Declarant shallpay to the Association an amount equal to the excess, if any, of actual
expenses of the Association over the amount of Assessments levied by the Association for
operatingexpenses (excluding amounts leviedfor reserves).

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 Section7.4 Ratificationof Budget. Within 30 days afteradoption of any proposed
budget adopted by Declarant,the Board shallprovide
budget for the Association afterthe initial
a summary of the budget to allthe Owners and shallseta date for a meeting of the Owners to
consider ratificationof the budget not lessthan 14 nor more than 60 days aftermailing of the
summary. Unless atthatmeeting the Owners to which a majority of the votes in the Association
whether or not a quorum is present. In the
are allocatedrejectthe budget, the budget is ratified,
event the proposed budget is rejectedor the required notice is not given, the priorbudget shall
continue untilsuch time as the Owners ratifya subsequent budget proposed by the Board.

Section 7.5 Supplemental Budget. If during the year the budget proves to be
inadequate for any reason,including nonpayment of any Owner's Assessments, the Board may
prepare a supplemental budget for the remainder of the year. A supplemental budget shallbe
by the Owners pursuant to Section 7.4.
subjectto ratification

Section 7.6 Propane Costs and Fees. LPG serviceto the Homes will be provided by
Ferrellgas,L.P. a Delaware under
limited partnership,itssuccessor and assigns ("Ferrellgas"),
the LPG Agreement, which shallbe binding upon the Declarant,Ferrellgas, the Association and
the Owners. Pursuant to the LPG Agreement, each clusterof Homes willhave a propane tank or
tanks with meters determining usage by each Home. The cost of propane to the Homes shallbe
speciallyassessedto the Owners based on usage, as determined by the submeters. Ifan Owner
purchase of the Lot or electsto
electsnot to have LPG serviceforthe Home atthe time of initial
discontinue service any time thereafter,the Owner shall pay an Opt-Out Fee of $399 to
Ferrellgas,payment of which has been guaranteed by the Association. Additionally,should any
Unit's consumption during any 12-month period fallbelow one hundred (100) gallons,the
Owner of the Unit shallbe assessed a Low-Use Fee of $250 billedonce per annum. Although it
is contemplated in the LPG Agreement that Owners (or residents)of the Homes will pay
FerrellgasdirectlyforLPG usage as well as any Opt-Out or Low-Use Fees, the Associationhas a
lienagainsteach Unit for any amounts owed to Ferrellgasby the Owner or residentof the Unit
and recourse to all remedies provided in this Article for collectionof Assessments. These
amounts are subjectto change in the event the LPG Agreement ismodified or LPG is provided
to the Homes under a differentcontractor arrangement agreed to by the Association.

Section 7.7 Levy of Assessments. In order to meet the costs projectedin itsoperating
budget, the Board shalldetermine and levy on every Owner of a Lot with a completed Home
(other than Declarant unless the Home is occupied) a general Assessment for Common
Expenses. The Association'soperatingbudget for Common Expenses shallbe allocatedequally
among the totalnumber of existingLots.

Section 7.8 Amount of General Assessments. The Board shall make reasonable
effortsto determine the amount of the general Assessments payable by each Owner for an
Assessment period at least30 days in advance of beginning of such period. Notice of the general
Assessments shallthereupon be sent to each Owner subjectto Assessments; provided, however,
thatfailureto notifyan Owner of the amount of an Assessment shallnot render such Assessment
void or invalid.Any failureby the Board, before the expirationof any Assessment period,to fix

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the amount of the general Assessments hereunder for the next period, shallnot be deemed a
waiver or modificationin any respectof the provisionsof thisArticleor a releaseof any Owner
from the obligationto pay the general Assessments, or any installmentthereof,for that or any
subsequent Assessment period.

Section7.9 Assessment Period. The general Assessments fixed for the preceding
period shallcontinue untilnew Assessments are fixed. Upon any revisionby the Association of
the operating budget during the Assessment period for which each budget was prepared, the
Board shall,if necessary, revise the general Assessments levied against the Owners and give
notice of the same in the same manner as the initiallevy of a general Assessments for the
Assessment period.

Section 7.10 Manner and Time of Payment. Assessments shallbe payable in monthly
or quarterlyinstallments,as determined by the Board. Any Assessment or installmentthereof
which remains unpaid for ten days afterthe due date to thereofshallbear interestat the rateof
12% per annum, and the Board may also assessa latecharge in an amount not exceeding 25% of
any unpaid Assessment which has been delinquentformore than ten days.

Section7.11 Initial Contributionto Working Capital. In connection with the closing of

the sale of each Lot with a completed Home, the firstpurchaser thereof shall pay to the
working capitalfund, an amount equal
Association,as a nonrefimdable contributionto an initial
to two times the initial
monthly Assessment (includingreserves)againstthe Lot, which amount
shallnot be considered as an advance payment of regularAssessments. Declarant shallnot use
any of the working capital fund to defray any of its expenses, reserve contributions or
constructioncosts.

Section 7.12 Accounts. Any Assessments collected by the Association shall be

deposited in one or more depository accounts establishedby the
Federally insured institutional
Board. The Board shallhave exclusive control of such accounts and shallmaintain accurate
recordsthereof.No withdrawal shallbe made from said accounts except to pay for charges and
expenses authorizedby thisDeclaration.

Section 7.13 Lien. In the event any Assessment or installment thereof remains
delinquent for more than 30 days, the Board may, upon 15 days' prior written notice to the
Owner of the Lot of the existenceof the default,accelerateand demand immediate payment of
the entireAssessment. The amount of any Assessment assessed or charged to any Owner plus
costs,latecharges and reasonable attorneys'fees,shallbe alien upon the Lot. A notice
interest,
of Assessment may be recorded in the officewhere realestateconveyances are recorded for the
county in which thisproperty is located. Such noticeof Assessment may be filedat any time at
least15 days following delivery of the notice of defaultreferredto above in thisSection. The
lien for payment of such Assessment and charges shallhave priorityover allother liensand
encumbrances, recorded or unrecorded, limitedas otherwise provided herein. Suit to recover a
money judgment for unpaid Assessments or charges shallbe maintainablewithout foreclosureor
waiver of the liensecuringthe same. Said liensmay be foreclosedas a mortgage.

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 Section7.14 Special Assessments. The Board may also levy specialAssessments for
unanticipatedCommon Expenses againstthe Owners on the same basis as general Assessments
for such expenses, as provided in Section 7.2. The specialAssessment shallbe leviedpursuant
to a budget which shallbe subjectto ratificationby the Owners pursuant to Section 7.4. To the
extentthatany Common Expense iscaused by the misconduct of an Owner or tenantof any Lot,
the Association may, afterNotice and Opportunity to be Heard, levy a specialAssessment forthe
expense againstthe Owner of the Lot.

Section 7.15 Waiver of Homestead. Each Owner hereby waives, to the extent of any
lienscreatedpursuant to thisArticle,the benefitof any homestead or exemption law in effectat
the time any Assessment or installmentthereof become delinquent or any lien is imposed
pursuant to the terms hereof.

Section7.16 FinancialStatements and Records. The Board shallprepare or cause to be

prepared for any fiscalyear in which the Association levies or collectsany Assessments, a
balance sheet and an operating (income/expense) statement for the Association which shall
include a schedule of delinquent Assessments identifiedby Lot; provided, however, such
public accountant unless requested by the Board
documents need not be prepared by a certified
or a majority of the Owners. The Board shallcause detailedand accuraterecords of the receipts
and expenditures of the Association to be kept specifying and itemizing the maintenance,
operating,and any other expense incurred. Such records,copies of thisDeclaration,the Articles
and the Bylaws, and any resolutionsauthorizingexpenditures of Association funds shallbe
availableforexamination by any Owner atconvenient weekday hours.

Section7.17 Certificateof Assessment. A certificate executed and acknowledged by

the treasureror the presidentof the Board or the managing agent for the Association statingthe
indebtednessfor Assessments and charges or lack thereofsecured by the Assessments upon any
Lot shallbe conclusive upon the Association as to the amount of such indebtedness on the date
in favor of allpersons who rely thereon in good faith.Such a certificate
of the certificate, shall
be furnishedto any Owner or any Mortgagee of a Lot within a reasonable time afterrequest,in
recordable form, at a reasonable fee. Unless otherwise prohibited by law, any Mortgagee
holding alien on a Lot may pay any unpaid Assessments or charges with respect to such Lot,
and, upon such payment, shallhave alien on such Lot for the amounts paid of the same priority
as itslien.

Section 7.18 Foreclosure of Assessment Lien; Attorneys' Fees and Costs. The Board
(or authorizedagent),on behalfthe Association,may initiate
an actionto foreclosethe lienof,or
collectany Assessment. In any actionto foreclosurethe lienof, or otherwise collectdelinquent
Assessments or charges, any judgment rendered in favor of the Association shall include a
reasonable sum for attorneys'fees and allcostsand expenses reasonably incurredin preparation
for or in the prosecution of said action,in additionto allcostspermitted by law. Said liensmay
be foreclosedas a mortgage.

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 Section7.19 Curing of Default. The Board shallprepare and record a satisfactionand
releaseof the lienfor which a notice of Assessment has been filedand recorded in accordance
with thisArticleupon timely payment or other satisfaction of all delinquent Assessments set
forthin the noticeand allother Assessments which have become due and payable following the
date of such recordation with respect to the Lot to which such notice of Assessment was
recorded, togetherwith allcosts,latecharges and interestwhich have accrued thereon. A fee
covering the cost of preparationand recordationshallbe paid to the Association prior to such
action. The satisfaction and releaseof the lien created by the notice of Assessment shallbe
executed by the president or treasurerof the Association or the managing agent of the
Association. For the purpose of thisparagraph,the term "costs"shallincludecostsand expenses
actuallyincurredor expended by the Associationin connection with the cost of preparationand
recordationof the notice of Assessment and any effortsto collectthe delinquent Assessments,
includinga reasonablesum for attorneys'feesand costs.

ARTICLE 8
INSURANCE

Section 8.1 Association Insurance.The Board shallcause the Association to purchase

and maintain at all times as a common expense a policy or policiesnecessary to provide
comprehensive liability insurance;fidelityinsurance; worker's compensation insurance to the
extentrequiredby applicablelaws; insurance againstlossof personalproperty of the Association
by fire,theft,or othercauses with such deductibleprovisionsas the Board deems advisable;and
such otherinsuranceas the Board deems advisable.The Board shallalsocause the Associationto
purchase and maintain insurance for the protectionof the Association'sdirectors,officers,and
from personalliability
representatives in the management of the Association'saffairs.
The Board
shall review at least annually the adequacy of the Association's insurance coverage. All
insurance shallbe obtained from insurance carriersthat are generally acceptable for similar
and licensedto do business in the State of Washington. All such insurance
properties/projects
policiesand fidelitybonds shall provide that coverage may not be cancelled or substantially
modified (including cancellationfor nonpayment of premium) without at least30 days prior
writtennotice to any and allinsureds named therein,including Owners, holders of mortgages,
and designated servicersof mortgages.

Section 8.2 Owner's Insurance.

8.2.1 All Owners shallobtain and maintain property insurance,liabilityinsurance,and

such other insurance as the Board deems advisable. All insurance shall be obtained from
insurance carriersthatare generallyacceptable for similarresidential propertiesand authorized
to do businessin the Stateof Washington. All such insurance policiesshallprovide thatcoverage
may not be cancelled or substantiallymodified (including cancellationfor nonpayment of
premium) without at leastthirty(30) days' prior writtennotice to the Association.All Owners
shallprovide the Associationwith proof of insurance upon the request of the Association.

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 8.2.2The property insurance maintained by each Owner shall,at the minimum, provide
allriskor specialcause of loss coverage, in an amount equal to the fullreplacement cost of each
Home and allfixturesand improvements located thereon,with such reasonable deductiblesand
exclusionsfrom coverage as the Board may from time to time approve or by rule or regulation
establish.

8.2.3The liabilityinsurance coverage maintained by each Owner shallcover liability of

the insureds for property damage and bodily injury and death of persons arising out of the
operation,maintenance, and use of the Lot and such other risksas are customarily covered for
similarresidential of at leastthree hundred thousand dollars
propertieswith a limitof liability
($300,000.00).

8.2.4 Any person of the Home or Lot for which insurance is required under the Article
which is damaged or destroyed shallbe repairedor replaced promptly by the Owner pursuant to
Section 8.2.5 below unless the subdivision is terminated or repair or replacement would be
under any stateor localhealth safetystatuteor ordinance.
illegal

8.2.5Upon any SubstantialDamage (as defined below) to any Home or Lot, the Owner
shall promptly restoreand repair the Home to substantially the same size and design as the
originalHome. The prior writtenconsent or vote of the Board and a vote of sixty-sevenpercent
(67%) of the totalvotes entitledto be cast by the Owners of the Lots is required to rebuildin
accordance with a plan that is differentfrom the originalplan or as modified by alterations
approved by the Board. As used in this Section,"SubstantialDamage" shallmean that in the
judgement of a majority of the Board the estimated damage for thisHome exceeds ten percent
(10%) of the full,fairmarket value of the Home before the damage occurred, as determined by
the then currentassessment forthe purpose of realestatetaxation.

ARTICLE 9
COMPLIANCE AND ENFORCEMENT

Section 9.1 Enforcement.

9.1.1 Each Member, Board member and the Association shall comply strictly
with the provisions of this Declaration and with the Bylaws and administrativerules and
regulationsadopted by the Association (as the same may be lawfully amended from time to
time). Failureto comply shallresultin a claim for damages or injunctiverelief,
or both, by the
Board (actingthrough its officerson behalf of the Association and the Owners) or by the
aggrieved Owner on his own, againstthe party(includingan Owner or the Association)failingto
comply.

9.1.2 In any actionor arbitration to enforce the provisionsof thisSection or any

other provisionof thisDeclaration,the Articlesor the Bylaws, the prevailingparty in such action

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or arbitrationshallbe entitledto an award for reasonable attorneys'fees and all costs and
in
expenses reasonably incurred in preparation for prosecution of said action or arbitration,
additionto allcostspermittedby law.

Section9.2 No Waiver of StrictPerformance. The failureof the Board or Declarant,

performance of any
as applicable,in any one or more instancesto insistupon or enforce the strict
of the terms, covenants, conditions or restrictions of this Declaration,or of any Bylaws or
administrativerulesor regulations,shallnot be construed as a waiver or a relinquishment for the
but such term, covenant, condition or
future of such term, covenant, condition or restriction,
restrictionshallremain in fullforce and effect.No waiver by the Board of any provision hereof
shallbe deemed to have been made unless expressed in writingand signed by the Board.

Section9.3 Remedies Cumulative. The remedies provided herein are cumulative, and
the Board may pursue them concurrently,as well as any other remedies which may be available
under law although not expressed herein.

ARTICLE 10
LIMITATION OF LIABILITY

Section 10.1 No Personal Liability. So long as a Board member, Association

committee member, Association officer,or authorized agent(s)has acted in good faith,without
willfulor intentionalmisconduct, upon the basis of such information as may be possessed by
such person, no person shallbe personally liableto any Member, or other party including the
Association, for any damage, loss or prejudice suffered or claimed on account of any act,
omission, error,negligence (except gross negligence),any discretionarydecision or failureto
make a discretionarydecision,by such person in such person's officialcapacity;provided,
however, thatthisSection shallnot apply where the consequences of such act,omission, erroror
negligence are covered by insurance or bond obtained by the Board pursuant to Article4 or
Article8.

Section 10.2 Indemnification.Each Board member or Association committee member,

or Association Officer,and theirrespectiveheirs and successors,shallbe indemnified by the
includingattorneys'fees,reasonably incurredby
Association againstallexpenses and liabilities,
or imposed in connection with any proceeding to which he or she may be party,or in which he or
she may become involved, by reason of being or having held such position at the time such
are incurred,except in such cases wherein such person is adjudged guilty
expenses or liabilities
of intentionalmisconduct, or gross negligence or a knowing violationof law in the performance
of his or her duties,and except in such cases where such person has participatedin a transaction
from which said person willpersonallyreceivea benefitin money, property,or servicesto which
said person is not legally entitled;provided, however, that in the event of a settlement,
indemnificationshallapply only when the Board approves such settlementand reimbursement as
of the Association. Nothing contained in thisSection shall,however,
being in the best interests
be deemed to obligatethe Association to indemnify any Member who is or has been a Board

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member or officerof the Association with respect to any duties or obligationsassumed or
liabilitiesincurredby him or her under and by virtueof the Declarationas a Member or Owner
of a Lot.

ARTICLE 11
MORTGAGEE PROTECTION

Section 11.1 Priorityof Mortgages. Notwithstanding allother provisions hereof, the

lienscreatedunder thisDeclarationupon any Lot forAssessments shallbe subjectto tax lienson
the Lot in favor of any assessingand/or specialdistrictand be subjectto the rightsof the secured
party in the case of any indebtednesssecured by firstlienmortgages or deeds of trustwhich were
made in good faithand for value upon the Lot. A mortgagee of a Lot, or other purchaser of a
Lot, who obtains possession of a Lot as a resultof foreclosureor deed in lieuthereofwill be
liablefor any Assessment accruing aftersuch possession. Such unpaid share of Common
Expenses or Assessments shallbe deemed to be Common Expenses collectiblefrom allof the
Owners includingsuch possessor,his successorand assigns. For the purpose of thisArticle,the
terms "mortgage" and "mortgagee" shall not mean a real estate contract (or the vendor
thereunder),or a mortgage or deed of trust(or mortgagee or beneficiarythereunder)securing a
deferred purchase price balance owed with respectto a sale by an individualOwner other than
Declarant.

Section 11.2 Effect of Declaration Amendments. No amendment of this Declaration

shall be effectiveto modify, change or limit or alterthe rights expressly conferred upon
mortgagees in thisinstrumentwith respectto any unsatisfiedmortgage duly recorded unless the
amendment shallbe consented to in writingby the holder of such mortgage. Any provision of
thisArticleconferringrightsupon mortgagees which is inconsistentwith any other provision of
thisDeclarationshallcontrolover such otherinconsistentprovisions.

Section 11.3Rights of Lien Holders. A breach of any of the provisions,conditions,

covenants, easements or reservationsherein contained shallnot affector impair the
restrictions,
lienor charge of any bona fide mortgage made in good faithfor value on any Lots; provided,
however, thatany subsequent owner of the Lot shallbe bound by these provisionswhether such
was acquiredby foreclosureor trustee's
owner's title saleor otherwise.

Section 11.4 Copies of Notices. If the firstmortgagee of any Lot has so requested of
the Association in writing,the Association shallgive writtennoticeto such firstmortgagee that
an Owner/mortgagor of a Lot has for more than 60 days failedto meet any obligationunder this
Declaration. Any firstmortgagee shall,upon writtenrequest,also be entitledto receivewritten
noticeof allmeetings of the Association and be permitted to designatea representative
to attend
such meetings.

Section 11.5
Furnishing of Documents. The Association shall make available to
and
prospectivepurchasers,mortgagees, insurers, guarantors,at theirrequest,current copies of

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the Declaration,Bylaws, and other rules governing the Property, and the most recent balance
sheetand income/expense statementforthe Association,ifany has been prepared.

ARTICLE 12
EASEMENTS AND SPECIAL TRACTS

Section 12.1 Association Functions. There is hereby reserved to Declarant and the
Association or theirduly authorized agents and representatives such easements as are necessary
to perform the dutiesand obligations of the Association as are setforthin the Declaration,or in
the Bylaws, and rulesand regulationsadopted by the Association. Such easements include,but
are not limited to, an easement for the Association and itsagents for access over, across and
through each Lot to perform its maintenance obligationswith respect to Lots and Homes
provided in Section6.1.

Section 12.2 Utility Easements. Various easements are reserved on the Lots, as
provided by the Platand applicablelaws, ordinances and other governmental ruleand regulations
for utility and maintenance, includingbut not limitedto,underground electric
installation power,
telephone, cable television,water, sewer, gas and drainage and accessory equipment, together
with the rightto enter upon the Lots at alltimes for said purposes. Within these easements, no
structure,planting,or other material shallbe placed or permitted to remain that may damage,
thatmay change the directionof flow
and maintenance of utilities,
interferewith the installation
of drainage channels in the easements, or thatmay obstructor retardthe flow of water through
drainage channels in the easements. The easement area of each Lot, and all improvements
thereon,shallbe maintained continuouslyby the Association,except forthose improvements for
which a public authorityor utilitycompany or Solana Community Association is responsible.
The Owner shallmaintain allutilities within the Owner's Home and the Association shallthe
portion outsidethe Owner's Home to the point itis maintained by a public authorityor utility
company or Solana Community Association. The Association shallhave an easement over each
Lot for the maintenance, repair and replacement of the portion of the storm drainage system
locatedon the Lot.

ARTICLE 13
ABANDONMENT OF SUBDIVISION STATUS

Section 13.1 Duration of Covenants. The covenants contained herein shallrun with and
bind the land and be perpetual,unless modified by an instrument executed in accordance with
Article15.

Section 13.2 Abandonment of Subdivision Status.The Association shall not, without

the prior written approval of the governmental entityhaving jurisdictionover the Property and
without prior written approval of 100% of all firstMortgagees and Owners (other than the
sponsor, developer or builder)of record, seek by act or omission to abandon or terminate the

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subdivisionstatusof the Property as approved by the governmental entityhaving appropriate
over the Property.
jurisdiction

ARTICLE 14
LATER PHASES; ANNEXATION

Declarant may from time to time subjectto the provisions of thisDeclarationallor any
portion of the Additional Property by recording a supplemental declaration amending the
descriptionof the Property in ExhibitA to add the portion of the Additional Property to be
subjectedto thisDeclarationand filinga platfor a laterphase of Solana ClusterLots. The later
plat and supplemental declarationfiledor recorded pursuant to thisArticleshallnot requirethe
consent of any person otherthan Declarant or successorto Declarant. In connection with a later
phase, Declarant shallamend ExhibitB to deletethe portion of the Additional Property being
subjected to thisDeclarationand may amend any of the provisions of thisDeclaration dealing
with the Lots or Tracts in thatphase. Declarant'srightto subjectthe Additional Property to this
Declaration shall expire when all property described in ExhibitB has been subjected to this
Declaration,or when Declarant records an amendment to the Declaration relinquishingitsright
to subjectany Additional Property to the Declaration,whichever isearlier.Until then, Declarant
may transferor assign this right to any person who is the developer of a portion of the real
property described in ExhibitB. Any such transfershallbe memorialized in a written,recorded
instrumentexecuted by Declarant.

ARTICLE 15
AMENDMENT OF DECLARATION OR PLAT

Section 15.1 DeclarationAmendment. Amendments to thisDeclaration shallbe made

by an instrument in writing entitled"Amendment to Declaration" which sets forth the entire
amendment. Except as provided in Section 11.2, this Declaration may be amended by an
instrument approved and executed by members holding 67% of the votes in the Association;
provided thatno amendment shallbe effectiveunless approved by the Declarant as long as the
Declarant owns a Lot or has the right to add Additional Property to the Declaration. The
members' approval may be obtained by a special vote of the members at a meeting of the
Association,or the written consent of the requisitepercentage of members. The amendment
shallbe executed by the president and secretaryof the Association who shall certifythat the
requisitevote or consent has been obtained. Notwithstanding any of the foregoing, the prior
writtenapproval of 51% of allMortgagees who have requested from the Associationnotification
of amendments shallbe requiredfor any materialamendment to the Declarationor the Bylaws of
any of the following:voting rights;Assessments, Assessment liens,and subordinationof such
liens;reservesfor maintenance, repair,and replacement of Common Area; insurance or fidelity
formaintenance and repair;the boundaries of any Lot; convertibility
insurance;responsibility of
Lots intoCommon Area or of common easements into Lots; leasingof Lots other than setforth
herein; imposition of any restrictions
on the right of an Owner to sellor transferhis Lot; a

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decision by the Association to establishself-management when professionalmanagement has
been requiredpreviouslyby the Mortgagees; or any provisionswhich are forthe express benefit
of Mortgagees or eligibleinsurersor guarantorsof firstMortgages. Itis specificallycovenanted
and understood that any amendment to this Declaration properly adopted will be completely
contained herein which
effectiveto amend any or allof the covenants,conditionsand restrictions
may be affectedand any or allclausesof thisDeclarationunless otherwise specificallyprovided
in the sectionbeing amended or the amendment itself.

Section 15.2 Plat. Except as otherwise provided herein,the Plat may be amended by
revisedversionsor revised portionsthereofreferredto and described as to affectan amendment
to the Declaration adopted as provided for in Section 15.1. Copies of any such proposed
amendment to the Plat shallbe made availablefor the examination of every Owner. Such an
amendment to the Plat shallbe effective,once properly adopted, upon having received any
governmental approval requiredby law and recordationin the appropriatecityor county offices
in conjunctionwith the Declarationamendment.

Section 15.3 Amendments to Conform to Construction. Declarant, upon Declarant's

forallLot Owners with irrevocablepower coupled with
sole signature,and as an attorney-in-fact
an interest,may at any time, untilallLots have been sold by Declarant,fileamendments to the
Declaration and to the Plat to conform data depicted therein to improvements as actually
constructedand to establish,
vacate and relocateeasements.

ARTICLE 16
MISCELLANEOUS

Section 16.1 Notices.

16.1.1 Any written notice or other documents as required by this Declaration,
may be delivered personally,by certifiedmail, or by electronictransmission where written
consent to receiveelectronicnoticehas been provided by the recipientto the Board of Directors
in accordance with RCW 64.38.035.1.c.If by mail, such notice,unless expressly provided for
hereinto the contrarywith regard to the type of notice being given, shallbe deemed to have been
delivered and received 48 hours aftera copy thereof has been deposited in the United States
mail, postage prepaid,addressed as follows:

16.1.1.1 Ifto a Member, otherthan Declarant: to the mailing address of

such Member maintained by the Association,pursuant to the Bylaws.

16.1.1.2 Ifto Declarant,whether in itscapacity as a Member, or in any

other capacity,the following address (unlessDeclarant shallhave advised the Board in writing of
some other address):

- 26 -
 Green Crow Investments Co., LLC
P.O. Box 2439
Port Angeles, WA 98362

16.1.1.3 Prior to the organization of the Association, notices to the

Association shallbe addressed as setforthabove. Thereafter,noticesto the Association shallbe
addressed to the officialmailing address furnished by writtennotice from the Association. In
addition,from and afterthe organizationalmeeting, noticeof the address of the Association shall
be given by the Board to each Owner, within a reasonable time afterthe Board has received
actualnoticeof such Owner's purchase of a Lot.

Section 16.2 Convevance: Notice Required. The rightof an Owner to sell,transfer,or

otherwise convey his or her Lot shallnot be subjectto any rightof approval,disapproval,first
or similarrestriction
refusal, by the Associationor the Board, or anyone actingon theirbehalf. If
a Lot is being sold,the Board shallhave the right to notify the purchaser, the titleinsurance
company, and the closing agent of the amount of unpaid Assessments and charges outstanding
againstthe Lot, whether or not such informationisrequested.

Section 16.3 Successors and Assigns. This Declarationshallbe binding upon and shall
inure to the benefitof the heirs,personal representatives,
successors and assigns of Declarant,
and the heirs, personal representatives,grantees, lessees,sublessees and assignees of the
Member.

Section 16.4 Jointand Several Liability.In the case of joint ownership of a Lot, the
of
liability each of the Owners thereof in connection with the liabilities and obligationsof
Owners, setforthin or imposed by thisDeclaration,shallbe jointand several.

Section 16.5 Mortgagee's Acceptance.

16.5.1 This Declaration shallnot initially be binding upon any Mortgagee of
record at the time of recording of said Declarationbut rathershallbe subjectand subordinateto
said Mortgagee's Mortgage.

16.5.2 Declarant shallnot consummate the conveyance of titleof any Lot until
the Mortgagee of the Lot shall have accepted the provisions of this Declaration and made
appropriatearrangements for partialrelease of the Lot from the lien of the Mortgage. The
issuance and recording of the firstsuch partialrelease by said Mortgagee shallconstituteits
acceptance of the provisionsof thisDeclarationand the statusof the Lots remaining subjectto its
Mortgage as well as itsacknowledgment thatsuch appropriatearrangements for partialreleaseof
Lots has been made; provided, that,except as to Lots so released,said Mortgage shallremain in
fullforceand effectas to the entireproperty.

Section 16.6 Severability. The provisions hereof shall be deemed independent and
severable,and the invalidityor partialinvalidityor unenforceabilityof any one provision or
portionthereofshallnot affectthe validityor enforceability
of any other provisionhereof.

- 27 -
 Section 16.7 Construction. The provisions of this Declaration shall be liberally
construedto effectuateitspurpose of creatinga uniform plan for the operation and maintenance
of the Property.

Section 16.8 Captions. Captions given to the variousarticlesand sectionshereinare for

convenience only and are not intended to modify or affectthe meaning of any of the substantive
provisionshereof.

Section 16.9 EffectiveDate. The Declarationshalltake effectupon recording.

SOLANA COURTYARDS HOMEOWNERS

ASSOCIATION, a Washington non-profit
corporation

By

By
STATE OF WASHINGTON
ss.
COUNTY OF 6)A 4

thatI know or have satisfactory

I certify evidencethat 0 6 ftr 4t( and isthe
person who appeared beforeme, and said person acknowledged thathe/s)e signed thisinstrument,on
oath stated that he was authorized to execute the instrument and acknowledged it as the
r&Affeaf , of the SOLANA COURTYARDS HOMEOWNERS ASSOCIATION, a
Washington non-profitcorporation, to be thefreeand voluntaryactof such corporation forthe usesand
purposesmentionedintheinstrument.

Dated thisA day of L) r\g ,2015.

JO (Si atureof

(LegiblyPrintor Stamp Name of Notary)

........ I Notary publp in and for the.stateof W shington,
RIBLIO 5 at Y Ev1
residing A \ ed \
Eg My appointmentexpires a AO <}4111'
**u*

flillit
STATE OF WASHINGTON
ss.
COUNTY OF (

I certify
thatI know or have satisfactoryevidencethat Av..<, #m V and isthe
person who appeared beforeme, and said personacknowledged thathe signedthisinstrument, on oath
stated that he was authorized to execute the instrument and acknowledged it as the
be,<*,v'e-fler , of the SOLANA COURTYARDS HOMEOWNERS ASSOCIATION, a
Washington non- rofit
corporation,to be thefreeand voluntaryactof such corporationfortheusesand
purposesmentionedintheinstrument.

Dated this day of <)1., it ,2015.

(LegiblyPrintor Stamp Name of Notary)

Notary publi in and for the stateof Washington,
ARY at Yait
residing Ed
4
a a My appointmentexpires ., L - ( ?yO )
 EXHIBIT A

SOLANA CLUSTER LOTS

PROPERTY SUBJECT TO DECLARATION

Solana ClusterLots Phase 1 per the platof Solana EstateLots Phase 1,recorded in Volume 14 of
Plats,Page 89, under Recording No. 2006-1177015, recordsof Clallam County, Washington.
 EXHIBIT B

SOLANA CLUSTER LOTS

ADDITIONAL PROPERTY

Solana ClusterLots Phase 2 per the platof Solana EstateLots Phase 1,recorded in Volume 14 of
Plats,Page 89, under Recording No. 2006-1177015, recordsof Clallam County, Washington.