Covenants

AMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND

RESTRICTIONS OF FOUR LAKES LAND OWNERS ASSOCIATION, INC.,

A WASHINGTON CORPORATION

THIS AMENDED AND RESTATED DECLARATION made this 1st day of September, 2006, by FOUR LAKES LAND OWNERS ASSOCIATION, INC., a Washington corporation, hereinafter referred to as the “Association”:

W I T N E S S E T H :

WHEREAS, Association is the owner of certain real property described as Four Lakes, which has been recorded as a plat in the records of King County, Washington, and

WHEREAS, the Association and its Owners will convey certain of the said properties, subject to certain protective covenants, condi­tions, restrictions, reservations, liens and charges as hereinafter set forth,

NOW, THEREFORE, Association and its Owners hereby declare that the properties described in ARTICLE II hereof shall be held, sold and conveyed subject to the following easement, re­strictions, reservations, charges, liens, covenants and con­ditions, all of which are for the purpose of enhancing and protecting the value, desirability, and attractiveness of the real property. These easements, restrictions, reserva­tions, charges, liens, covenants and conditions shall run with the real property and shall be binding on all parties having or acquiring any right, title or interest in the described properties or any part thereof, and shall inure to the benefit of each owner thereof.

ARTICLE I

Section 1. “Association” shall mean FOUR LAKES LAND OWNERS’ ASSOCIATION, INC., its successors and assigns.

Section 2. “Properties” shall mean that certain real property described in Article Three of the Articles of Incorporation, and such additions as may hereafter be brought within the jurisdiction of the Association.

Section 3. “Common Properties” shall mean all real property owned by the Association, including the water system, which shall be held for the use and enjoyment of all the members, all real property maintained by the Association for the benefit of the members of the Association (including the water surface and sub-surface of all lakes and bodies of water included within the Association, and shall not include any streets or other areas dedicated to public use unless such property is maintained by the Association by Agreement with the public authority to whom the property was dedicated. The Common Properties for Four Lakes are particularly described as follows:

Tract E, and Lot 13, Block 3, of the preliminary plat of Four Lakes, being a portion of Sec­tions 22 and 27, Township 23 North, Range 6 East W.M., King County, Washington

Section 4. “Lot” shall mean any plot of ground shown upon any recorded subdivision map, or County Assessor’s map, of the properties with the exception of the Common Properties.

Section 5. “Member” shall mean every person or entity who holds a membership in the Association.

Section 6. “Owner” shall mean the record owner, whether one or more persons or entities of the fee simple title or contract purchaser’s interest in any Lot or Lots which are a part of the Association, but shall not include a contract seller or a mortgagee.

Section 7. “Declaration” shall mean and refer to the Declaration of Covenants, Conditions and Restrictions applicable to the properties recorded or to be recorded in the Office of the King County Auditor.

Section 8. “Common Expense” shall mean any expense incurred by the Association or the Board which is for the benefit of or on behalf of the Association, the Board, or the Owners.

ARTICLE II

PROPERTY SUBJECT TO DECLARATION
Section 1. The real property which is, and shall be, held, transferred, sold, conveyed and occupied subject to this declaration is located in King County, Washington, and is more specifically described in EXHIBIT A which is attached to this Declaration and incorporated by reference.

ARTICLE III

ADMINSTRATION AND USE OF COMMON PROPERTIES

Section 1. Alteration of the Common Properties. Nothing shall be altered, or constructed in, or removed from the Common Properties except upon prior written consent of the Board.

Section 2. Dumping in Common Properties. No trash, plant or grass clippings or other debris of any kind shall be dumped, deposited or placed on any Common Properties.

Section 3. Landscaping and Fencing. No structures of any kind, including fences or walls, may be built, placed, or maintained within any right-of-way or easements within the Association except as approved in writing by the Board.

Section 4. Other Parcels. If other parcels are added to the Properties, the owners of other parcels shall share in the expense of maintaining Common Properties.

Section 5: Roads and Road Easements. Until such time as King County assumes responsibility for maintaining the roads and road easements located within the Association, the Association shall perform such maintenance. Each owner specifically covenants that the Board may take any necessary actions in performing this maintenance as it deems necessary.

ARTICLE IV

MAINTENANCE OF COMMON PROPERTIES

Section 1. Responsibility for Maintaining Common Properties. The Association is responsible for maintaining and preserving the character of the Common Properties. Owners of the Lots shall be responsible for their proportionate share of all maintenance expenses for the Common Properties, unless otherwise exempt.

Section 2. Repair of Common Properties. Any damage to Common Properties or improvements thereon, including landscape plantings, sprinkler systems, fences, berms, street lights, etc., by the Owner, their relatives or guests shall be repaired within one (1) week by the Owner who caused the area to be damaged. If such repairs are not made timely, the Association shall make the repair and the Owner will be obliged to immediately remit funds for the repair. If the Owner fails to make payment for such repairs within thirty (30) days, the amount for such repairs shall bear interest at the rate of twelve percent (12%) per annum. The Association shall have all rights at law or in equity to collect the repair amount plus interest, including the right to assess the Owner’s Lot pursuant to Article IX, and shall be entitled to all costs of collection, including reasonable attorneys, fees and costs.

Section 3. Management. Each Owner expressly covenants that the Board may delegate all or any portion of their management authority to a managing agent, manager or officer of the Association and may enter into such management contracts or other service contracts to provide for maintenance and the operation of Common Properties and any portion thereof. Any management agreement or employment agreement for the maintenance or management of the Common Properties or any portion thereof shall be terminable by the Association without cause upon ninety (90) days, written notice thereof; the term of any such agreement shall not exceed three (3) years, renewable by agreement of the parties for successive three (3) year periods. Each Owner is bound to observe the terms and conditions of any such management agreement or employment contract, all of which shall be made available for inspection by any Owner on request. Fees applicable to any such management, employment or service agreement shall be assessed to the Association and may be an expense assessable to the Owners.

Section 4. Water System. As part of the Common Properties, the water system is owned and operated by the Association. The Board shall be responsible for the maintenance and repair of the water system. All matters concerning the operation, maintenance, and repair of the water system shall be as set forth in the Bylaws of the Association. The Board may, in its discretion, make a separate assessment related to the water system. Any such assessment shall only be levied against those Lots which make use of or are connected to the water system.

ARTICLE V

ANNEXATION OF ADDITIONAL PROPERTIES
Section 1. The Association may, at any time, annex additional properties and Common Properties to the Association and/or the Common Properties, and so add to its membership during such time as the Common Properties are held by the Association and/or during the existence of the Association.

Section 2. The Association may annex additional properties to the Association and/or the Common Properties upon each of the following, as may be necessary:

(a) any additional properties may be annexed upon the affirmative vote of seventy-five percent (75%) of the Owners of the Association voting in person or by proxy;

(b) if the additional property to be annexed would result in a new Owner, such new Owner shall provide the Board with written consent to be bound by all rules and regulations of the Association as well as this Declaration;

(c) all additional properties shall have this Declaration recorded against such property such that this Declaration shall run with the land;

(d) if such additional property to be annexed would result in a new Owner, such Owner and the Association shall share equally all costs related to the annexation; the costs of the annexation may be added to any special assessment levied within twelve (12) months of the date of the annexation.

Section 3. Any property annexed to the Association and/or the Common Properties shall be liable for Assessments as set forth herein from the date on which this Declaration is recorded against such property. Where such recordation takes place on any day other than the first day of the month, any quarterly or special assessment may be prorated accordingly.

ARTICLE VI

MEMBERSHIP AND VOTING RIGHTS
Section 1. Membership. Every Owner of a Lot or Lots subject to covenants of record to assessment by the Association shall be a member of the Association: Provided, however, that if any Lot is held jointly by two or more persons, the several owners of such interest shall designate one of their number as the “member”. The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Association, except as provided herein. Upon transfer of any Lot, the membership and certificate of membership in the Association shall ipso facto be deemed to be transferred to the new Owner. Ownership of or interest in any such Lot shall be the sole qualification for membership.

Section 2. Suspension of Membership. During any period in which a Member shall be in default in the payment of any quarterly, special, or specific assessment, the voting rights and right to use of the Common Properties (other than the roads within the Common Properties) by such member may be suspended by the Board of Trustees until such assessment has been paid. Such rights of a Member may also be suspended, after notice and hearing, for a period not to exceed sixty (60) days, for violation of any rules and regulations established by the Board of Trustees governing the use of the Common Properties or any other default under this Declaration.

Section 3. Voting Rights. No person shall have more than one (1) membership regardless of the number of Lots owned or being purchased, and the interest of each Member shall be equal to that of any other Member, and no Member may acquire any interest which shall entitle him to any greater voice, vote or authority in the Association than any other Member. In the case of Lots owned jointly by two or more persons, only the joint owner designated as the “Member” pursuant to Section 1 of this Article VI shall be entitled to vote.

In the event that Nonprofit Corporation Law of the State of Washington as set forth in title 24, Revised Code of Washington, is changed to permit one member of a nonprofit corporation to exercise greater voting rights than another member, voting shall thereafter be according to the number of Lots owned; that is, members shall be entitled to one vote for each Lot in which they hold the interest required for membership by Article VI hereof. When more than one person holds such interest in any Lot, the vote for such Lot shall be exercised as they among themselves determine, but in no event shall more than one vote be cast with respect to any Lot.

ARTICLE VII

PROPERTY RIGHTS; RIGHTS OF ENJOYMENT
Section 1. Common Properties. Every Owner shall have a right and nonexclusive easement of use, access and enjoyment in and to the Common Properties, including the water surface and sub-surface of all lakes and bodies of water included in said plat. No member shall in any way restrict the use of the surface or sub-surface of the lakes and/or bodies of water included in said plat by fences, walls, or other obstructions, irre­spective of the ownership of the land upon which the lakes or bodies of water are located. Such rights are subject to:

(a) this Declaration, any other applicable covenants, and the terms of any deed conveying such property to the Association;

(b) the right of the Board to adopt rules regulating the use and enjoyment of the Common Properties, including rules limiting the number of guests;

(c) the right of the Board to suspend an Owner’s right to use some or all of the Common Properties as set fort in this Declaration;

(d) the right of the Association to transfer, on behalf of the Owners in common, all or any part of the Common Properties to governmental entities as described herein;

(e) the right of the Board to impose reasonable membership requirements and charge reasonable membership admission or other fees for the use of any recreational facility within the Common Properties; and

(f) the right of the Association, on behalf of the Owners, to mortgage or otherwise create a security interest against any or all of its real or personal property as security for money borrowed or obligations incurred.

Any Owner may extend their right of use and enjoyment to the Members of their family, lessees and social invitees, as applicable, subject to rules of the Board. Such Members shall notify the secretary in writing of the name of any such delegate. The rights and privileges of such delegee are subject to suspension to the same extent as those of the member. An Owner who leases their Lot shall be deemed to have assigned all such rights to the lessee.

Section 2. Rules. The Association, through its Board, may make, modify and enforce reasonable rules governing the use of the Common Properties, consistent with the rights and duties established by this Declaration. Such rules shall bind all Owners, occupants, invitees and licensees until and unless repealed or modified according to the terms of this Declaration.

Section 3. Enforcement. The Association may impose sanctions for violations of this Declaration, the Bylaws or rules, including without limitation reasonable monetary fines, suspension of voting rights and the right to use any recreational facilities within the Common Properties. In addition, under the Bylaws, the Association may exercise self-help remedies to cure violations and may suspend any services it provides to the Lot of any Owner, including but not limited to termination of water service, where an Owner is thirty (30) days or more delinquent in paying any Assessment or other charge due to the Association. The Board may seek relief in any court for violations or to abate nuisances. Board actions to impose or seek sanctions shall be governed by the Bylaws and/or this Declaration.

Section 4. Rights. The Association may exercise any right or privilege given to it expressly by this Declaration or the Bylaws or which may be reasonably implied from, or reasonably necessary to effectuate, any such right or privilege.

Section 5. Indemnification. The Association, to the fullest extent allowed by law, shall indemnify every officer, director and committee member against all expenses, including counsel fees, reasonably incurred by or imposed upon such officer, director or committee member in connection with any action, suit or other proceeding (including settlement of any suit or proceeding, if approved by the Board) to which he or she may be a party by reason of being or having been an officer, director or committee member.

The officers, directors and committee members shall not be liable for any mistake of judgment, except for their own individual misfeasance, malfeasance, misconduct or bad faith, and shall have no personal liability to third parties with respect to any contract or action taken by them in good faith on behalf of the Association. The Association shall indemnify and hold each such officer, director and committee member harmless against all liability to others on account of any such contract, commitment or action. Any right to indemnification provided for herein shall not be exclusive of any other rights to which any present or former officer, director or committee member may be entitled. The Association shall, as a Common Expense, maintain adequate general liability and officers and directors liability insurance to fund this obligation, if such insurance is reasonably available.

Section 6. Dedication of Common Properties. The Association, by Board resolution, may dedicate or grant easements over portions of the Common Properties on behalf of the Owners to any local, state or federal government entity, public utility or private party, without a vote when such conveyance is consistent with the requirement of King County or other applicable jurisdiction for the development of the Common Properties, or master plan for the development of the Properties.

ARTICLE VIII

INSURANCE AND CASUALTY LOSSES

Section 1. Association Insurance. The Association, acting through its Board or its duly authorized agent, shall obtain blanket “all-risk” insurance, if reasonably available, for all insurable improvements on the Common Properties and other portions of the Common Properties for which it has assumed responsibility for maintenance, repair and/or replacement. If blanket “all-risk” coverage is not generally available at reasonable cost, fire and extended coverage insurance, including coverage for vandalism and malicious mischief, shall be obtained. The face amount of the policy shall be sufficient to cover the full replacement cost of insured structures.

The Board shall also obtain a public liability policy covering the Common Properties, insuring the Association and its Members for all damage or injury caused by the negligence of the Association, any of its Members, its employees, agents or contractors acting on its behalf. If generally available at reasonable cost, the public liability policy shall have at least a Two Million Dollar ($2,000,000) combined single limit per occurrence and in the aggregate. The Association shall also obtain, if reasonably available, an umbrella policy providing at least Three Million Dollars ($3,000,000) in additional coverage, bringing total liability coverage to at least Five Million Dollars ($5,000,000).

Premiums for all insurance shall be an expenses which shall be included in the Assessment. The policies may contain reasonable deductibles which shall be disregarded in determining whether the insurance meets the coverage requirements. In the event of an insured loss, the deductible shall be treated as a Common Expense. However, if the Board reasonably determines, after notice and an opportunity to be heard under the Bylaws, that the loss resulted from negligence or willful misconduct of one or more Owners, then the Board may assess the full amount of such deductible as a charge against such Owner(s) and their Lot(s) as it would for any unpaid Assessment.

All insurance coverage obtained by the Board on behalf of the Association shall:

(a) be written with a company authorized to do business in Washington which holds a B or better general policyholder’s rating, or a financial performance index of 6 or better in the Best’s Key Rating Guide, or an A or better rating from Demotech, Inc., or in the alternative, the highest rating generally available;

(b) be written in the name of the Association as trustee for the benefited parties (policies on the Common Properties shall be for the benefit of the Association and its Members);

(c) vest in the Board exclusive authority to adjust losses, provided that a Mortgagee having an interest in such losses may participate in any settlement negotiations;

(d) provide that it will not be brought into contribution with insurance purchased by individual Owners, occupants or their mortgagees;

(e) if for property insurance, have inflation guard endorsements, if reasonably available;

(f) if containing a co-insurance clause, have an agreed amount endorsement, if reasonably available; and

(g) provide for a Certificate of Insurance to be furnished to the Association. A copy of such Certificate shall be provided by the Association to any Member upon request.

The Association may, on its own or through the services of one or more qualified persons (at least one of whom must be in the real estate industry and familiar with construction in the area of King County, Washington), perform for an annual review of the sufficiency of insurance coverage.

The Board shall use reasonable efforts to secure insurance policies that provide endorsements:

(a) waiving subrogation as to any claims against the Association’s Board, officers, employees, the Owners and occupants of Lots and their respective tenants, servants, agents and guests;

(b) waiving rights of the insurer to repair and reconstruct instead of paying cash;

(c) providing that the policy may not be cancelled, invalidated, suspended or subjected to non-renewal on account of any one or more individual Owners;

(d) providing that the policy nay not be cancelled, invalidated, suspended or subjected to non-renewal on account of any curable defect or violation without prior written demand to the Association to cure the defect or violation and allowance of a reasonable time to cure;

(e) excluding individual Owner policies from consideration under any other insurance clause; and

(f) providing that the Association will be given at least thirty (30) days’ prior written notice of any cancellation, substantial modification or non-renewal.

The Board may also obtain liability insurance coverage for directors and officers in the amount of at least Two Million Dollars ($2,000,000), if reasonably available, insuring the Association and its officers, directors and committee members (former, present and future) from liability for any actions or decisions for which the Association would have the duty to indemnify them under this Declaration. The board may obtain additional insurance coverage which it believes, in its discretion, would be beneficial to the Board, the Association, and/or the Common Properties.

Section 2. Owners Insurance. By taking title to a Lot subject to this Declaration, each Owner acknowledges that the Association has no obligation to provide any insurance in relation to any such Lots.

Section 3. Damage and Destruction.

(a) Immediately after damage or destruction by fire or other casualty to all or any part of the Properties covered by insurance written in the name of the Association, the Board or its agent shall file all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair or reconstruction of the damaged or destroyed property. Repair or reconstruction, as used in this Section, means repairing or restoring the property to substantially the condition existing prior to the damage, with any changes needed to comply with applicable building codes.

(b) Any damage to the Common Properties shall be repaired or reconstructed unless at least seventy-five percent (75%) of the total votes in the Association decide within sixty (60) days after the loss either (a) not to repair or reconstruct, or (b) to construct alternative improvements. If either the insurance proceeds or reliable, detailed estimates of the cost of repair or reconstruction are not available to the Association within the sixty (60) day period, then the period may be extended for not more than sixty (60) additional days. No Mortgagee shall have the right to participate in the determination of whether the damage or destruction to the Common Properties shall be repaired or reconstructed.

(c) If it is determined that the damage to the Common Properties shall not be repaired or reconstructed and no alternative improvements on the affected portion of the Common Properties are authorized, the affected area shall be cleared of all debris and ruins and thereafter maintained by and according to the rules of the Association.

Section 4. Disbursement of Proceeds. After paying for repair or reconstruction or if no repair or reconstruction is made, any remaining insurance proceeds shall be retained by the Association and placed in the General Fund.

Section 5. Repair and Reconstruction. If the insurance proceeds are insufficient to pay for repairing or reconstructing the damage to the Common Properties, the Board may, during and following the completion of any repair or reconstruction and without membership approval, levy Special or Specific Assessments to pay for such repair or reconstruction and for the premiums for the applicable insurance coverage against any Owner(s) responsible for the damage. If no Owner is responsible for the damage, then the Board may levy such Special Assessment to all Owners. The Board shall have the exclusive right to deal with all venders, contractors or subcontractors in connection with the performance of any such repair and/or reconstruction work.

ARTICLE IX

ASSESSMENTS
Section 1. Creation of the Lien and Personal Obli­gation of Assessments. By the Declaration, each Owner is deemed to covenant and agree to pay the Association, for each Lot owned: (1) quarterly assessments or charges, (2) special assessments, and (3) specific assessments, all as provided herein. Any assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with such interest and costs of collection thereof (including reasonable attorney fees) shall also be the personal obligation of the person who was the Owner of such property at the time the assessment fell due. The personal obligation shall not pass to such Owner’s successors in title unless expressly assumed by them in writing; Provided, however, that in the case of a sale of any Lot which is charged with the payment of an assessment or assessments payable in installments, the person or entity who is the Owner immediately prior to the date of any such sale, contract or assignment, shall be personally liable only for the amount of the installments due prior to said date. The new Owner shall be personally liable for installments which become due on and after said date.

Section 2. Purpose of Assessment. The assessments shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of residents of the Association, including without limitation, the construction, establishment, improvement, repair and maintenance of the Common Properties and services and facilities related to the use and enjoyment of the Common Properties, the payment of taxes and insurance on the Common Properties, and the improve­ment and maintenance of a water system and planting areas on the streets located within the subdivision, and the maintenance of roads and drainage system within said subdivision.

Section 3. Amount of the Quarterly Assessments. The amount of the quarterly assessment shall be as follows:

(a) Lot Assessment: Each Owner shall pay to the Association a quarterly assessment of Forty One Dollars and 14 cents ($41.14) per Lot as it may be increased or decreased as provided herein;

(b) Water Assessment: Each Owner connected to or who makes use of, the Association water system shall pay a quarterly assessment of Thirty Four Dollars and Seventy Three Cents ($34.73) per Lot as it may be increased or decreased as provided herein.

Section 4. Increase in Quarterly Assessments.

(a) From and after September 1st, 2006, the amount of the quarterly assessment may be increased effective January 1st of each year without a vote of the membership, by not more than that amount which reflects the increase, if any, of the U. S. Bureau of Labor Statistics Consumer Price Index (calculated on the base period: 1982-1984 equals 100) for Seattle, Washington, for “Urban Wage Earners and Clerical Workers – All Items”, for the preceding month of August. Said index established the numerical rating for Seattle for the month of August, 2005, as 195.3. This shall be the base rating. To determine the percentage by which the quarterly assessment for each subse­quent year may be increased without a vote of the membership, said base rating shall be divided into the said Consumer Price Index for the month of August preceding the effective date of the proposed increase. Said adjustment percentage, if in excess of 100 per centum, shall be multiplied by the initial quarterly assessment amount provided for herein to de­termine the maximum amount to which the quarterly assessment may be increased for the subsequent year without a vote of the membership.

(b) The maximum assessment, on an annualized basis, may be increased by more than ten percent (10%) only if two-thirds (2/3) of the members of the Association, who are voting in person, proxy, or by mail at a meeting duly called for this purpose, consent to such an increase.

Section 5. Special Assessments for Capital Improvements. In addition to the quarterly assessments authorized above, the Association may levy special assessments for capital improvements upon the Common Properties, or as otherwise provided herein. Any such levy by the Association shall be for the purpose of defraying in whole or in part, the cost of any construction or reconstruction; improvement, repair or replacement of a described capital improvement upon the Common Properties, including the necessary fixtures and personal property re­lated thereto: PROVIDED THAT any such assessment shall have the assent of two-thirds (2/3) of the votes of the members voting personally or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting, setting forth the purpose of the meeting.

Section 6. Specific Assessments. The Board may specifically assess against particular Lots expenses incurred by the Association to provide special benefits, items or services (a) on request of the Owner of a Lot; (b) made necessary by the conduct of the Owner or its licensees, invitees or guests; (c) necessary to bring the Lot into compliance with this Declaration, the Articles, the Bylaws or Association rules; or (d) as may be provided by the terms of this Declaration. Such Specific Assessments may be levied by the Board after notice to the applicable Owners and an opportunity for a hearing.

Section 7. Uniform Rate. Both quarterly and spe­cial assessments shall be fixed at a uniform rate for all Lots to which the assessment may apply.

Section 8. Quorum for Any Action Authorized Under Sections 4 and 5. At the first meeting called, as provided in Sections 4 and 5 hereof, the presence at the meeting of Members or of proxies entitled to cast sixty (60) percent of all the votes, shall constitute a quorum. In the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth in Sections 4 and 5, and the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty days following the preceding meeting.

Section 9. Date of Commencement of Quarterly Assessments: Due Dates. As to each particular Lot involved, the liability for the quarterly assessments provided for in this Article IX shall begin on the first day of the calendar month following the expiration of thirty (30) days from the date of any deed or contract of sale for the Lot. Said assessment shall be due and payable on such date on the first day of each calendar month thereafter. The due date of any special or specific assessment under Sections 5 and/or 6 hereof shall be fixed by the resolution authorizing such assessment.

Section 10. Effect of Non-payment of Assessments: Remedies.

(a) Any assessment not paid within thirty (30) days after the due date shall bear interest at the rate of twelve percent (12%) per annum. Each Owner hereby expressly vests in the Association or its agents the right and power to bring all actions against such Owner personally for the collection of such assessments as debts and to enforce lien rights of the Association by all methods available for the enforcement of such liens, including foreclosure by an action brought in the name of the Association in like manner as a mortgage of real property. Such Owner hereby expressly grants to the Association the power of sale in connection with such liens. The liens provided for in this section shall be in favor of the Association and shall be for the benefit of the Association. The Association shall have the power to bid in an interest at foreclosure sale and to acquire, hold, lease, mortgage and convey the same. The Owner is responsible for payment of all attorneys, fees incurred in collecting past due assessments or enforcing the terms of assessment liens. No Owner may waive or otherwise escape liability for the assessments provided herein by non-use of the Common Properties or abandonment of his Lot.

(b) Each Owner expressly grants the Association the right to terminate water service where an Owner has failed to pay any water assessment which the Board may assess pursuant to this Declaration.

The Association shall have the right to suspend the voting rights of an Owner for any period during which any assessment against the Lot remains unpaid and for a period not to exceed sixty (60) days for any infraction of the terms of either this Declaration, the Articles or the Bylaws of the Association.

Section 11. Exempt Property. The following property subject to the Declaration shall be exempt from the assessments created therein: (a) all Common Properties; (b) all properties dedicated to and accepted by a local public authority; and (c) all properties owned by a charitable or nonprofit organization exempt from taxation by the laws of the State of Washington. Any Lot which is not connected to the water system shall be exempt from water system assessments. All Lots located on Cedar Grove Road shall be required to pay one-half of the quarterly assessment levied in connection with any other Lot within the Association. However, no land or improvements devoted to dwelling use shall be exempt from said assessments. No Lot shall be exempt from any Specific Assessment levied against such Lot.

ARTICLE X

SUBDIVISION OF LOTS
No member of this Association shall subdivide any Lot until such time as a standard sewer system is established and approved by the Seattle-King County Health Department. Upon subdivision of any Lot, pursuant to this Article X, said subdivided Lot or Lots shall each be subject to the quarterly assessments provided for in this Declaration and each owner or contract purchaser shall be a member of this Association subject to the rights and duties provided for herein.

ARTICLE XI

GENERAL PROVISIONS

SText Box: ection 1. Enforcement. The Association and each Owner of a Lot or Lots subject to this Declaration, shall have the right to enforce, by any proceeding at law or in equity, all restric­tions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declara­tion. Failure of the Association or any such Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 2. Attorneys’ Fees. In the event that it is necessary to seek the services of an attorney in order to enforce any (1) provision of this Declaration of (2) lien created pursuant to the authority of this Declaration, the prevailing party shall be entitled to recover all costs of enforcement, costs of legal action, any attorneys, fees and expert witness fees incurred in order to enforce the provisions of this Declaration..

Section 3. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no wise effect any other provisions, which shall remain in full force and effect.

Section 4. Amendment. The covenants and restric­tions of this Declaration shall run with and bind the land, and shall inure to the benefit of and be enforceable by the Association and the Owner of any Lot subject to this Declaration, their respective legal representatives, heirs, successors, and assigns, for successive periods of ten (10) years, unless an instrument terminating these covenants is signed by not less than the owners or contract purchasers then owning seventy-five percent (75%) of the property subject to this Declaration or any supplemental declaration shall have been filed with the King County Auditor. The cove­nants and restrictions of this Declaration may be amended by an instrument signed by not less than the Owners then owning seventy-five percent (75%) of the property subject to this Declaration or any supplemental declaration. Amendments shall take effect when they have been recorded with the Auditor of King County.

Section 5. Restrictions. No structure of a temporary character, basement, tent, shack, garage, trailer, barn or other outbuilding, shall be used on any Lot, at any time, as a residence.

No Lot shall be used or maintained as a dumping ground for rubbish, trash or garbage. Any waste shall be kept only in sanitary containers. All incinerators or other equipment for storage or disposal of such material shall be kept in a clean and sanitary condition.

There shall be no commercial raising of hogs, poultry or fur-bearing animals nor shall there be any kennels operated on a commercial basis, or any other type of commercial operation.

No residence may be erected on any of the tracts which contains a living area of less than 1,000 square feet, and residence or outbuildings must be completed on the exterior within 6 months after the start of construction.

Section 6. Nuisances. No noxious or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood.

Section 7. Oil and Mining Operations. No oil drilling, oil development operations, oil refining, quarrying or mining operations of any kind shall be permitted upon or in any Lot nor shall oil wells, tanks, tunnels, mineral exca­vations or shafts be permitted upon or in any Lot. No derrick or other structure designed for use in boring for oil or natural gas shall be erected, maintained or permitted upon any Lot.

Section 8. Mortgages Protected. Nothing herein contained shall impair or defeat the lien of any mortgage or deed of trust now or hereafter recorded covering any Lot or Lots but title to any property obtained through a sale and satisfaction of any mortgage or deed of trust shall be held subject to all of the provisions herein.

Section 9. Conflict of Documents. Where the Declaration, Articles, Bylaws, rules and regulations, or any document promulgated by the Board shall conflict, the documents shall take precedence over one another as follows: (i) Declaration, (ii) Articles, (iii) Bylaws, (iv) rules and regulations, (v) other documents.

Section 10. Revocation of Previous Declaration. This Amended and Restated Declaration of Covenants, Conditions, and Restrictions revokes and supersedes all previous Declarations which may be applicable the Association, the Common Properties, and any Lot which may be part of the Association.

Dated this _ day of __ , 2006.

President

ATTEST:

Secretary

EXHIBIT A

LEGAL DESCRIPTION

A portion of Sections 22 and 27, Township 23 North, Range 6 East W.M., described as follows: COMMENCING at the quarter corner common to said Section 22 and 27; thence along the Section line between said Sections South 89°38’45” East 397.15 feet to the true point of beginning; thence North 5°09’56” West 22.64 feet; thence North 42°31’37” East 37.81 feet; thenoe North 32°45’39” East 45.18 feet; thence North 34°58’08” West 32.65 feet; thence North 85°24’46” West 28.55 feet; thence South 62°52’44” West 25.14 feet; thence North 37043’32” West 30.82 feet; thence North 46°34’27” West 15.26 feet; .thence South 60°11’05” West 12.04 feet; thence South 73038’23” West 31.77 feet; thence North 49°07’37” West 30.89 feet; thence North 23°44’03” East 37.72 feet; thence North 25°07’04” West 53.46 feet; thence North 52°32’50” West 46.10 feet; thence North 78°04’30” West 6.24 feet; thence North 10°07’06” West 46.40 feat; thence North 38°18’31” East 50.99 feet; thence North 78°00’05” East 36.03 feet; thence North 33°10’48” East 34.79 feet; thence North 38°23’06’ West 29.31 feet to a point on the North line of the South 12.5 acres of the Southwest 1/4 of the Southeast 1/4 of said Section 22; thence along said North line South 89°38’45” East 1062.07 feet; thence leaving said North line South 0°34’02” West 402.99 feet to a point on the Section line between said Sections 22 and 27; thence along said Section line South 89038’45” East 100,0 feet, thence leaving said Section line South 4°57’49” West 219.65 feet; thence South 25°51’47” East 275.0 feet; thence South 64°08’13” West 125.0 feet; thence through a curve to the right having a radius of 538.61 feet for an arc length of 201.17 feet. with a central angle of 21°24’01”; thence South 85°32’14” West 144.76 feet; thence through a curve to the left having a radius of 50 feet for an arc length of 64.14 feet with a central angle of 73°29’50″; thence South 12°02’24” West 13.13 feet; thence through a curve to the left having a radius of 50 feet for an arc length of 41.92 feet with a central angle of 48°02’22”; thence South 35°59’58” East 80.28 feet; thence through a curve to the right hav­ing a radius of 154.84 feet for an arc length of 86.22 feet with a central angle of 31°54’15”; thence South 4°05’43” East 73.87 fast; thence through a curve to the right having a radius of 295,94 feet for an arc length of 121.76 feet with a central angle of 23°34’25”; thence through a curve to the left having a radius of 25.00 feet for an arc length of 32.08 feet with a central angle of 73042’05”; thence South 54003023″ East 97.86 feet; thence through a curve to the left having a radius of 381.01 feet for an arc length of 75.02 feet, with a central angle of 11°16’54”; thence South 65°20’17” East 27.40 feet; thence South 21°13’29” West 477.69 feet; thence South 68°59’58” West 145.00 feet; thence South 4°55’14” East, 290.0 feet to a point on a curve to the right having a radius of 309.83 feet, the center of said curve located South 8°25’42” West; thence along said arc for 36.0 feet with a central angle of 6°39’29”; thence South 74°54’49” East 45.79 feet; thence South 16°36’27” West 239.01 feet; thence through a curve to the left having a radius of 227.46 feet for an arc length of 79.68 feet with 4 central angle of 20°04’13”; thence South 3°27’45” East 21.94 feet; thence through a curve to the right having a radius of 83.93 feet for an arc length of 95.16 feet with a central angle of 64°57’28”; thence South 61°29’42” West 51.08 feet; thence through a curve to the left having a radius of 68.31 feet for an arc length of 71.10 feet with a central angle of 59°37’59”; Thence South 1°51’43” West 194.68 feet; thence North 88°56’58” West 920.45 feet; thence North 89°20’19” West 290.73 feet; thence North 0°39’41” East 38.91 feet to a point on the arc of a curve having a radius of 50 feet, the center of said curve located North 37°31’53” East; thence along the arc of said curve to the right for 138.38 feet with a central angle of 158°34’34”; thence North 52°58’38” East 134.12 feet; thence North 45°16’58” East 234.34 feet; thence through a-curve to the right having a radius of 229.61 feet for an arc length of 85.10 feet with a central angle of 21°14’07”; thence through a curve to the left having a radius of 53.05 feet for an arc length of 44.91 feet with a central angle of 48°30’39”; thence North 18°00’26” East 124.95 feet; thence through a curve to the right having a radius of 1149.79 feet for an arc length of 194.08 feet with a central angle of 9°40’18”; thence North 27°40’42” East 187.22 feet; thence through a curve to the right having a radius of 323.82 feet for an arc length of 186.44 feet with a central angle of 32°59’20”; thence through a curve to the left having a radius of 30 feet for an arc length of 61.13 feet with a central angle of 116044’30”; thence through another curve to the left having a radius of 165.77 feet for an arc length of 50.84 feet with a central angle of 17°34’23”; thence North 73°38’51” West 99.02 feet; thence through a curve to the right having a radius of 91.40 feet for an arc length of 80.64 feet with a central angle of 50°33’03”; thence North 23°05’48” West 359.56 feet; thence through a curve to the left having a radius of 286.67 feet for an arc length of 110.74 feet with a central angle of 22°07’58”; thence North 45°13’46” West 277.53 feet to a point on the East line of Cedar Grove County Road; thence along said Ea pt line North 21°50’18” East 464.02 feet; thence leaving said East line South 52°41’50” East 295.0 feet; thence North 52°41’30” East 75.72 feet; thence North 39°27’30” East 58.94 feet; thence North 27°27’20” East 88.81 feet: thence North 45°57’20” East 76.24 feet; thence North 23°56’20” East 54.78 feet; thence North 46°21’20” East 14.0 feet; thence North 37°20’10” East 100.16 feet; thence North 24°18’20” West 214.53 feet to a point on the Section line between said Sections 22 and 27; thence along said Section line North 89°38’45” West 39.89 feet to the true point of beginning;

TOGETHER WITH the following described property: Commencing at the quarter corner common to said Sections 22 and 27; thence South 25°08’03” East 629.39 feet to the point of beginning; thence South 5°49’10” West 179.50 feet; thence South 48°46’00” East 302.0 feet; thence North 35°07’30” East 452.94 feet to a point on the arc of a curve to the left having a radius of 228.11 feet, having a tangent at this point of North 72°10’16” West for an arc length of 13.32 feet with a central angle of 3°20’44”; thence North 75°31’00” West 18.68 feet; thence through a curve to the right having a radius of 266.79 feet for an arc length of 87.23 feet with a central angle of 18°44’03”; thence North 56°46’57” West 25.17 feet to a point on the arc of a 50 foot radius turn-around; thence along the arc of said turn-around having a tan-gent at this point of So. 70°05’15” West for an arc length of 67.80 feet with a central angle of 71°41’44”; thence South 75°49’01” West 287.58 feet to the true point of beginning;

TOGETHER WITH that portion the South 12.50 acres in the Southwest 1/4 of the Southeast 1/4 of Section 22, Township 23 North, Range 6 East W.M., lying Westerly of the recorded plat of Four Lakes according to plat recorded in King County Auditor’s Office and Easterly of Cedar Grove County Road, situate in King County, Washington.

Filed for Record Dec. 31, 1969 2:08 PM Request of Rob’ts & Anderson

EDWARD J. LOGAN, Recorder