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HomeMy WebLinkAboutMisc, KELSEY'S CROSSING FINAL PLAT Title Documents Chicago Title Insurance Company Subdivision Guarantee Order No. 0004923-06 Dated November 21, 2013 DRS PROJECT NO. 12061 D.R. STRONG CONSUL TING ENGINEERS 620 7th Ave. Kirkland, WA. 98033 f<ECE!VED MAR 1 0 201-1 ~l;Y OF RENTON ,.,,_ANNING DIVISION ' '·· .. .-.- NORTHWESTERN GARDEN Tl?ACT-S DIV. NO. 5 S.E.1/4 OF THE S.W.114 OF SEC. 33 T.23.N.R.5E.W.h1. KING COIJNTY WASH. Continental .. E_Min~·ring_, Co. Seallle Wn, <[ ("., ~~ ,, N ~ L•J ,o -~ ~ '-' 'c ~ -~ .fi :;i ,. "' -: " ....... ' iv ... ' ' ,. ,. C .. , . i 1 h<?r"by ~ertify lhat 11,/}1;thi_<i'··.p,lat of N6P.-:r~wo;:'3Tt.RN ,:;:"-"""-"' TRI\C'l"S D•'I, No. 5 ;5 dvly approved t,y iti"e Ki·,.,:-i .. County ·-i:cl~nning Comm,~sion on th·,s Z.C..~ay Df -S ~)-f.L ~!-~,.• ___ A ·o· . .'.950 . DEDICATION ~-~·~·~\•,1..L ~·~~··1:1:.-.. TMl:S!: .P~ES(NTS 11,.,1 wr.. th'<l und<':'rs13nP.d will1arn w. G,:jrdon an.-\!· Glady~ ~ Gtir-don· T'l,s w",fe, owne,·s in fee ~;...,pie of 1he 1and,:-hereb;t:.pi~tr~d, l)cifrzby declare thi'.l plat and de-dicate to the use of tlie fublic ·:for,iv~r 1>_Lt·'st(~_et5, -alleys and avenue~ shown ~ereon and the usG. then:'·0.f for Cli\ publi't p1.>rposes 'lot incon<.;isten1 with lhe use t:>ereof',for pub't~.:h.igh:+,ay pJrposes; also <111 parks, caseme.-.t,; or whatever publ,,c p;<>p,::tly:."or pl-..c~~ there an, e,liown on !he ;,\a+. for the p<Jrpo~.~ .. _\h_e.rei;.:,, .i_'ldic'l\"ell; als.f>'." the righl to make :.'Iii slc>p<i:S for c-ul'i, or fol\'w;."~po·n·i~e-io!s:-blo..cl<s, fract~ or paree\s of land shown on 'h~ ul:al in tn.t<·or,9",na\ rea;icfl._al:J'.t'9f8<fo-i9 of SIi the 'i>treets,.avenueSan.ll al1ey"> and places ,.~_wn here;.+-. J ;.;_, -..,n;,-~s;··.-...-_~E.,~C1F}~e ~ave \,.-r~unlo sel ovr hcu,dS a<>d. sea',s th,s __ l; ___ _ ~.a_y <:if\:_ J..~lj-··;:,,". ____ ~-~ .. A 0. ,;,JO "?"apf,~lJ/J~, ;,~_--·.-i'.);t~1 ~f~,;~- d~:;,:;;:·:i::·~~;:;,, fa~~~~~::1°_----.--G - Clerk of th<'! B.~-.,if·C=n.?_c~-~:. Ch.#%£ COvnty Comm1~ .. s.ioners ··~"-... _: ···... .· .. -.. .-. ::: 1 n,:,reb}_certi.f.y·.1hat th~--~tatof MORTHW~ST£o;;:N GAIW(N n,~·~.~~-.t),v NO.!> .. 1s btl~"<"d <,r_,."~·i-\·.~Flu~I s,._,;Je°)'._.and s,..i:i''d\·i1s'1on of Sedio,, 33 To";"n,;h\p iJ ·-~·.!'--· ~-.lWM ; .. +hal ff..e ~,.,,\ances/c9,~rS":$ and angles are shown thereo11 correCtJ,:;,_:, ...... !hill fhe m"onurnentS'"h.a.ve been SC-t-."imd lot ~nd blod, corners slaki:,cl · ·· ccr;~icl_~ o,.;lh~_.9ro<Jnd·;·,.1.~-1· ~·.qe~e folly complied ,,..i1h \he pro-,i,;or,s -... of the sf:.?tt._µks 80.(;i th!;'l''pt::i'ffi!19"r.~i.,latio11s. . ;·it.1>,_. _, ··. -.. ;., <\:-.:· ; --l, .. _dLI{., 'Jd,,,u.LL_~-- . cerrl"ncate "3910 Renii:v,11:il No. L Bl 406[6"21_ ·:··., .. F;1ed for r·~ord at "the reques-1 of the King County Planr,1ns Comrn,ssi<:in 1h1s.l.~,__day of -·-··~.S~..P:t~ -·--· I> D !950 3t .,e,S .. m,nutes p;;,,st -·--/~----_f'_M ACKNOWLEDGEMENT ·. ~.,..,_.;.,_E OF ~_·_ ... s ... , ...... .,.o .. } ··· .. cov>,l"T--r o, ;,.,,..,;. S ~ 1 ····.· ... ,_,.: ,::" This, ·,,.+occo,,-t;f::,, t\-ia1 on +h;s.6" __ day of_ ~-·--·Aq1~ oel',,re me,:fhe undersi90,i-d,;, notary public, personally apMr{>d w111;a111.;'(if, Gordor> '20nd Gladys f. Gorllor. l"ii~ w·,fa:, Tom"' ~nown to be ·· .. _th"' per.s,,ns wT'lo e-.:-acuted 1he foregoing dedic-.iot'1on and who a,k~ow\edged ·kr,l!le thntthe_y signed and sealed the ,;ame 11s their free ana '1olunhry ad~.'ot',-d deed for the u~es and P'-'rposes he<,?ir, rnent"1c,ned. WoTN~SS my h,ind and official ~eal the day a~d ::,ear f,rst abo,e wn;)t11i;,. ,------,------/{_(~----'' '-'ohary Public ,n and for tne State o wash1n9to11 re!.1d,n ,n Sealt\e ~nd ro!-C"6-r-<'.1.f~ ·,n._"(Olvr,e --.:~J ___ of Plals p.ige .• "t~ 111';Cords of 1<1n~ Counry , ~ , ' ,• . 1 '------_00_~_,""'-Y_'_'_""_'_Y_"_"_'l>_>o_, ________ -_--_-_-_--_-_-_~"_"_'_''_y_A_'_"_'_"_L--------------------------------------...1/: ' j RETURN ADDRESS: P1,1g&t Sound Energy, Inc. Attn: R/W Depanment lHMP) P.O. BoJC 97034 I EST•06W Bellevue, WA 96009 REFER~NCE #: EASEMENT GRANTOR: GEONERCO PROPERTIES WA, LL.C GRANTEE: PUGET SOUND ENERGY, INC. SHORT LEGAL: Ptn of SW33-23N-05E ORIGINAL ASSESSOR'S PROPERTY TAX PARCEL: 619900•0160 AND 619900-0161 20~:; 1000001544.001 EXCISE TAX NOT REQUIRED ~~9P~)IR~n By/UI/IZ . Oepu~ For and In consldera11on of One Dollar ($1 OD) and other valuable consld&ration ,nha~ONERCO PROPERTIES WA, LLC, a Washlnglon Limited Llab!llly Company ("Gran\01" herein), hereby con'ley$ ,;11r1d warranls 10 PUGET SOUND ENERGY, INC,, ~ Wi!shlnglon Corporatlori ("Grantee" herein), for Iha purpose$ hereinailer sel for1h, a noneMcluslve perpetual easement over, under, along across and 1hrough the foilowing described reel proper1y {"Properly" herein} In King County, Washington: PARCEL A: TRACT 8, NORTHWESTERN GARDEN TRACl"S, DIV. NO. 5 ACCOROING TO THE PLAT THEREOF RECORDED IN VOLUME! 47 OF PLATS, PAGE(S} 90, IN KING COUNTY, WASHINGTON; EXCEPT THE EAST 65 FEET OF THE WEST 141 FEET OF THE SOUTH 155FEETTHEREOF. PARCELB: THE EAST 8!1 FEET OF THE WEST 141 FEET OF THE SOUTH 155 FEET OF TRACT 8, NORTHWESTERN GARDEN TRACTS, OTV. NO. 5, ACCORDING TO TllE PLAT THEREOF RfCORDEO IN VOLUME 47 OF PLATS, PAGE(S) 90, IN KING COUNTY, WASHINGTON. Except es m1:1y be otherwise set forth herein Grantee's rlgh\a sllall be e11:erc!st1d upon that portion of lhe Property ("Easement Area" herein) described as follows: EASEMENT No, 1; ALL STREETS AND ROAD !'I.IGHTS-OF·WAY (60TH PRIVATE ANO PUBLIC) AS NOW OR HEREAFTER DESIGNED, PLATIED, ANOfOR CONSTRUCTED WITHIN THE ABOVE 01:SCRIBED PROPE:RTY, (WHEN SAID STREETS AND ROADS ARE DEDICATED TO THE PUBLIC, THIS CLAUSE SHALL BECOME NULL ANO VOID.) EASEMENT NO. 2: A STRIP OF LAND 10 FEET IN WIDTH ACROSS ALL LOTS, TRACTS AHO OPEN SPACES LOCATED WITHIN THE ABOVE DESCRIBED PROPERTY BEING f>ARALLEL TO AND COINCIDENT WITH THE BOUNDARIES OF SAID PRIVATE NID PUBLIC STREETS AND ROAD RIGHTS- OF•WAY. EASEMENT No 3: A STRIP Of LAND TE~ FEET IN WIDTH LYING PARALLEL WITH AND ADJACENT TO 120IR AVt!.NUE SE. 1. Purpose. Grantee $hall have lha right to use the Eesemenl Area to construct, operate, maintain, repair, replace. Improve, remove. and enlarge ona Of more ulillty systems for purpows of transmission, distribution and sale of pas end electricity. Suell system may Include, but aro nol llm!1ed to: Underground faclllUas. Pipas, pipelines, mains, 1aternls, conduits, regulators and foadem !or gas; conduits, llnei,, cables, vaU!ts, swilches and traflSformers lor e!ec\ticlty; fiber optic cable end oilier llnes, cables and facilities for cornmunlcalions; semi-buried or ground-moul'lled fecilllles Including s1reel l~hls and pads, manholes, meters, fiKtures, attachmenls ar1d any and all olher facllllles or app1,1f1enances necessary or convenient to any or o1H of lhe foregoing. Fo!lowh19 the lnlllal construcUor1 ol all or a portion of its sys1ems, Gmr1tee may, from \lme to time, construct S\JCh aditlt!om~I facHilles as 11 may require for such systems. Grantee shall have the righ1 of access lo the Easement Area over and across tha Property lo enable Grontee to exercise lls rights herC;1unQ11r. Grantee shall comper1s<1lC;t Grant or for any damage to lho Property caused by the e11:erclse of such right of sccess by Grantee. Kelaey'a C10S&lng UG Gas & Elec\110 Ea6emanl 10/2003 W0#10507:l45 & 107CM77~5 RW·0811207 PagB 1 Ol 2 oroer: 11mn-otoer seard1 out. KC.2013 2on1003001544 Public Record Page r 01 2 created By. r:11oeae1 11(•. Primea. 11/27/2013 12:40.32 PM PS I 20131003001544.0D2 2, Ea&11m11nt Area Clearlng and Mainteno1nc11. Grantee shall hava Iha righl to cvt, rom(lvo and dispose of any .and all bn.ish, !roes or other vegetation In the Easement Area. Grantee shall also have the right lti control, on a cMtlnulng basis and by any prudent and reasonable means, the establlshm1ml and groW1h of brush, trees or other vegetation In tho Easement Arca. 3. Grantor's Use of Easecment Area. Grantor reserves the right 10 use the Easement Area for any purpose nol !nconsistenl with tho rights herein granted, provided, however, Grantor shall nol ccmetruct or maintain any buildlnge, structures or other objecls on th£: Ea$tlment Area and Gn!lntor shall do no blasllng within 300 feel of Grantee's faclli!les without Gnmtoo's prior written consent 4. Indemnity. Gt'antee agrees to Indemnify Granter from and against llabllily Incurred Oy Granlor as a result of Grantee's negligence In 1he exercise of 1he rights herein grenled lo Gran1ee, but no1hlng herein shall require Gran1ee lo Indemnify Granlor for that porUQn of any such liability attributable to the negllg,.ince or Grantor or lhe n6gllgence of olhers. 5. AbPndonm1ml The rtghts herein granted shall continue until such Ume as Gt'antee ceases lo use lhe Easement Area for a perlod of five (5) succe:n;lve yeal'l:I, In which event, lhls easement shall terminate and all righls hereunder, and any tmprovemenls remaining In the Easement Area, shall NJvert to orotherwlsa become the property of Granto,; pl'Qvlded, however, that no abandonment shi'l~ bo deemed lo have occurred by reason of Gran1ee's failure lo ln!Ually lnstaU !Is systems on the Easement Area Wllhin any period of time from thi.a data hereof. &. St1Qces1ors and Assigns. Grantee shall havo the right lo assign, apporUon or otherwise transfer any or alt of its rights. booefits, privileges and lnter1Jsts arising In and under this easement. Wi1hout Hmlllng the genen,Jlty of the foregoing, \he rights ancl ob!igalions of the panles shall Inure to Iha benefit of and be binding upon lhelr respective successoJ'3 and as9igns. OATEOthls ZS-;,,... dayof ~+t...,,.,.,.J-cc ,2013, STATE OF WASHINGTON ) )SS COUNTY OF }<; ·4 ) On this Z~;:r, dey of ?f: f~ , 2013, before me, the undersigned, a No1ary Public Jn and lo, the Slate F'O!'~ Washington, duly commissioned and sworn, personally appeared 6 ot.or'"J,,:'-N1:~w ILL , to me known 10 ba Iha person(s) who signed as r , of GEONERCO PROPERTIES WA, LLC, Iha Washington llmlled liability oompany that e::,,:acuted the within and foregoing lnstrvmenl. and acknowledged said lns1rumenl to be _n_,_,_· free a11d volu111ary act and deed and the free and voluntary act and deed of llmlled llablllly CQmpany for the uses and purposes therein mentioned; -and on oath stated ltial __b_L_ was authorized io execu1e the said lnstrumon1 on behalf of said llmltad llablllty company. Kelsey's Crossing UG Gas & El11clnc Easem11nl 1012003 W0#10607:J4!i 8. 10704776~ RW-086207 Pago2of2 !al seal~dciy and year first above wrilten. C/5-r. (S~ (Pr1 or stamp name of Notary) NOTARY PUBLIC In and fo[...lpe S~1e of Washington, residing al / ~I t. v""( My Appointment E::,,:plres: Pub I ic Record oruer. 11Jon-0raer search ooc. Kt:2013 2un100Joo1s44 page 2 or 2 Created BY: 01oeae1 Pflrited: 11/2//2013 12:40!32 PM PS I CHICAGO TITLE INS. co@ REF# /J ff"f/2 X ~~ ~l'f\e(' ~k P,o. 6~ C\61 Wal\~ W6\\;i., WA 0.C\'3bd- When Recorded, Return to: llilll\lil illlllll llll llll~ll~ll~ll\li I~ I\ 20130822000745 Banner Bank P.O. Box 907 CHICAGO TJfLE DT 91.00 PAGE-001 OF 019 Walla Walla, Washington 99362 Attn: Loan Servicing Loan No. 14005177 08/22/2013 11 :21! KING COUNTY, UR DEED OF TRUST (Washington) Grantor(s): GEONERCO PROPERTIES WA, LLC Grantee(,): Trus1ee: Northwest Financial Corporation Beneficiary; ....:::B•::cn::::••:::.r.:,B:::•n:::k~~~~~~~~~~~~~~~~ legal Description (abbreviated): TRACT 8, VOLUME 47 OF PlATS, PAGE 90 0 Complete legal on EXH~IT A Aseessora Tax Parcel Identification No(a): 619901).0160-04, 619900-0161-03 THIS DEED OF TRUST dated August 12, 2013, is made by and among Geonerco Properties WA, LLC, a Washington limited liability company (collectively, If more than one individual or entity, the "Grantot"), whose address Is 144 t North 34• S\1eet. Suite 200, Seattle, Washington 98103; Northwest Financial Corporation (the 'TrustH'), whose address Is 10 S. First Avenue, Walla Walla, Washington 99362; and Banner Bank (the 'Beneffc/aiy'), whose address is P.O. Box 907, Walla Walla, Washington 99362, Attn: Loan Servicing. Notice: One or more notes secured by this Deed of Trust contain provisions for a variable Interest rate. A.P. Best fonr,s: Deed of Trust H:\CJ/enfl/Jr,nner\99795\2012 Loa,i Forms (AP. But)lDfied ofTrusl -W%hlngfoo.doo Forni Revision Dale: June 2013 pBgfi 1 20130822000745.001 Public Record Created By: bloedel Printed: 11/2//2013 12:40:29 PM PS I vraer: Muri-oraer search Dot. Kc.2013 201Jos2200014s Page 1 or 19 1. Granting Clause. For good and valuable consideration, Including the indebtedness described below and the !rust created hereby, Granter hereby Irrevocably grants, transfers, conveys and assigns to Trustee, In trust, with power of sale, for lhe benefit and security of Beneficiary, all of Grantor's estate, right, title, and Interest in and to that certain real property located In King County, Slate of Washington, more particularly described on EXHIBIT A attached hereto and incorporated herein by this reference (the 'Property'); together with: 1.1 After-Acquired Tille. Any after-acquired !Ille of Granter In and lo lhe Property and In and to land lying in streets and roads adjoining the Property; 1.2 Easements, Etc. All access rights, easements, tenements, privileges, rights, hereditamenls, and appurtenances now or hereafter belonging or in any way appertaining to the Property; 1.3 from lhe Property; Rents. The rents, Issues, prolits, royalties, Income, and other benefits derived 1.4 Improvements. All buildings, improvements, structures, fixtures, and articles of property now or hereafter erected on, attached to, localed on, or used or Intended to be used in connection wilh the Property; 1.5 Licenses/Water Rights. All water, waler rights and ditch rights (including stock In utililles with dllch or Irrigation rights); and all other rights, royalties, and profits relating to the real properly, including without limitation alt minerals, oil, gas, limber, geothermal and similar mallers, and all requisite approvals, licenses, permits, variances, cooperative agreemenls, lax credits (if applicable), tax abatement benefits (If applicable), recording engineering and entitlemenl maps, and land-use enlitlements; and 1.6 Additional Property and Rights. All other properly or rlghls of any kind or nalure furthe1 set forlh herein; all of which shall be deemed to be and remain a part of the Properly and nol severable wholly or In any parl wilhout material Injury to the freehold and shall be included In any references to the Property he,eunder. 2, Security Agreement. This Deed of Trust shalt also constitute a "Security Agreemenl' under the Uniform Commercial Code as adopted by lhe State of Washington (the 'UCC') between Granter as debtor and Beneficiary as secured parly. As addilional secutily for the pertormance of the obligations secured hereby, Granter furlher grants and conveys lo Beneficiary a security lnleresl and a continuing lien on the following-described property and all proceeds of such property (collectively, the 'Collateraf), alt of which Collateral shall be deemed a part of and shall be Included In any reference to lhe Property hereunder: 2.1 Properly In Section 1. Any of the Property described In Secllon 1 above that is deemed lo be personal properly; 2.2 Permils Plans, and Conlracts. All of Granters right, title, and Interest In all permils, approvals, commilments, designs, plans, specificalions, archllectural and engineering contracls, conslruction contracts, surveys, appraisals, listing agreements, warranties, and any and all other worl\ producl or general inlangibles relating to lhe Property or any part thereol and now or hereafter owned by Granter, Including, without !Imitation, lhe Permils, Contracts, and Plans as defined in Section 6 below and any and all rlghls or claims lhal relate to lhe conslructlon of lmprovemenls on or to the Property lhat Granier A.P. Best Farms: Deed of Trust pagD2 H:\Clienl\Banner\9974JS\20l2 Loan Forms (A.P. Besl)\Oeed ol Trust. Washington.doc Public Record 20130822000745.002 order: I\Jon-Urder search ooc: KC:2013 2013os2200014s Page z at 19 created By: o1oeae1 Pflntea: 11/27/2013 12.40.29 PM PS I may have against any person or entity supplying, or whO has suppijed, labor, materials, or services in connection with the construction of improvements on the Property; 2.3 Rlghls Under Covenants. All of Grantor's rights under any declarations of covenants, conditions, and restrictions recorded for the Property, Including all of Grantors rights and powers to elect or select officers and directors for any Homeowners' Associalion established for the Property; 2.4 Insurance; Eminent Domain. All of Grantor's rights under any and all contracts and policies of insurance with respect lo the Property and lo any and all awards made In connection with any eminent domain or condemnation proceedings, or purchases In lieu thereof, of the whole or any part of the Property; 2.5 Rlghls of Sale. All of Grantor's ,lght, title, and interest in any contracts or agreements of sale with respect lo the Property, all purchase money indebtedness lo Granter related to any sale, and any cash proceeds of such sale; 2.6 Accounts with Beneficiary. All accounts maintained by Granter with Beneficiary or any subsidiary or affiliate of Beneficiary; 2. 7 Improvement. Fixtures, etc. Ali Improvements, fixtures, equipment, furnishings, appliances, machinery, apparatus, goods, construction materials, and other articles of personal property owned by Grantor and now or hereafter affixed lo, placed upon, or used in connection with the Property, including, but not limited to, any structures constructed on the Property, all pipes for water and sewer lines, cables, electrical wires for power systems, and construction materials, and any and all replacements and improvements thereof; 2.8 other Property. Any and all other property or rights of any kind or nalu,e further identified herein or in any UCC financing statement filed in connection herewith; and 2.9 Proceeds. Any and all Interest and estate that Granter or Grantors assigns may hereafter acquire In any of the above Property and all the rents, Issues, proceeds, products, and profits of such Property. Grantor authorizes Beneficiary to file one or more financing statements and such other documents as Beneficiary may from lime lo time require to pertect and continue the pertecllon of Beneficiary's security Interest in any part of the Collateral. Granlor shall pay all fees and costs that Beneficiary may incur in filing such documents in public offices and in obtaining such record searches as Beneficiary may reasonably require. Granier shall cooperate with Beneficiary in obtaining control of any portion of the Property that consists of Deposit Accounts. Investment Property, Letler-ol·Credlt rights, and Electronic Chattel Paper, as such terms are defined In the Uniform Commercial Code as enacted in the stale in which the Property is located. 3. Fixture FIiing. It ls Intended that the recording of this Deed of Trust shall be effective as a 'fixture filing' unde, RCW 62A.9-402(6) with respect to any end all fixtures included within the Collateral and all goods er personal property that are now or may hereafter become affixed to the Property, and the Deed of Trust Is to be flied and Indexed In the real estate reco1ds not only as a deed of trust, but also a fixture filing. AP. Best Forms: Deed of Trust page 3 H:\Ctler,t\BannerW9795\2012 Loan From (AP. 8esl)l!leed ol ll'USt-Washln9lon.doc 20130822000745.003 Public Record treated sy. 01oeae1 Prtnted! 11/2//2013 12:40.29 PM PS I oraer. N011-oruer search oat. KC.200 2onos2200014s Page 3 ot 19 4. Obligations Secured. This Deed of Trust is given for the purpose of and does secure the following obligations: 4.1 Promissory Note. Payment of all obligations at any time owing under that certain Promissory Note payable by Grantor, as maker, to the order of Beneficiary or order, executed concurrently herewith (the 'Note"), evidencing a loan from 8enenclary to Granlor In the maximum outstanding principal amount of Seven Hundred Ninety-Seven Thousand Five Hundred anc 00/100 Dollars ($797,500.00) (the 'Loan"), logelher with Interest thereon at a variable rate and any modifications, extensions or renewals thereof, whether or not any such modification, extension or renewal is evidenced by a new or addillonal promissory note or notes. 4.2 Additional Obligations. Payment of any further sums advanced or loaned by Beneficiary to Grantor or any of Grantor's successors or assigns, or otherwise owed by Grantor to Beneficiary, together with interesl thereon, If such sums, including costs and expenses incurred by Beneficiary, are owing pursuant to this Deed of Trust or any of the other documents executed by Granto, securing or otherwise relating to the Note or the loan evidenced thereby, whether executed prior to, contemporaneously with, or subsequent to this Deed of Trust (this Deed of Trust, lhe Nole, and all other documents governing, securing, or otherwise relating lo the Nole or the loan evidenced thereby, with the exception of any environmental Indemnity or other indemnity agreement that by its terms Is not secured hereby (the 'indemnity Ag,..,menr). and with the exception of any and all guaranties of payment and/or pertormance executed In connection with the Nole (collectively, ihe 'Guaranties'), are hereafter referred lo collecllveiy as the 't.oan Documents'), together with lnierest thereon al the rate set forth in the relevant document: and 4.3 Obligailons Under Loan Documents. Pertormance of each agreement, term, and condition set forth or Incorporated by reference in the Loan Documents and any modlncations, extensions or renewals thereof, whether or not any such modification, extension or renewal is evidenced by a new document or documents. Granier further covenants and agrees as follows: 5. Assignment of Rents. Grantor hereby assigns and transfers lo Beneficiary all ils rights and profits from the Property anc the right, title, and interest of Grantor In and under all leases now or hereafter affecling the Property. This assignment Is absolute, uncondltlonal, and nol in the nature of a security interest, ii being the intention of Granto, lo establish a complete and present transfer of all interests assigned hereunder with the right, but without the obllgallon, to collect all rents and profits of the Property. So long as Granter is not In default hereunder, Granlor may collect assigned rents and profits as the same fall due; but, upon the occurrence of any Event of Default hereunder, ail rights of Granter to collecl or receive rents and profits shall terminate. Further, all rents and profits or Granter receivable from or in respect to the Property that Grantor shall be permitted lo collecl hereunder shall be received by it in trust to pay the usual and reasonable operating expenses of, and taxes upon, the Property and lhe sums owing Beneficiary on the obligations secured hereby. In the event of any default hereunder and the exercise by Beneficiary of Its rights herein granted, Granter agrees that payment made by tenants or occupants lo Beneficiary shall be considered as though made to Granter and In discharge of the tenants' obligations to Granter. Nothing herein contained shall be construed as obligating Beneficiary to peMrm any of Granlors covenants under any lease or rental arrangement. 6. Assignment of Permits, Contracts, and Plans. In addition to and without in any way derogaling from the security Interest granted Benenclary In the Collateral, Granier hereby assigns, grants, AP. Best FOfl11s: Deed ol Trust H:\Cll011t\Bennel\9979S\2012 Loan Fmms !A.P. 8n1)\0eed or Trust· Washington.doc 20130822000745.004 Public Record 0rue1. 1~m1-oraer sea1t11 ooc. KC:2013 2unoa2.200014s rage 4 or 19 er ea tea sy. 01oeae1 Printed: 11/27/2013 12.40.30 PM PS I transfers, and sets over unto Beneficiary, Grantors right, title, and interest in, to, and under any and all permits, approvals, commitments, designs, plans, specifications, construction, architectural and engineering contracts, subcontracts, appraisals, listing agreements, and any and all other contracts for work product relating to development or construction on the Property or any part thereof, together with all amendments, modifications, supplements, revisions, and addenda thereto heretofore or hereafter prepared or executed (collectively, the 'Permits, Contracts, and Plans'). 6.1 Security for Loan. This assignment Is made as additional security for the payment and pertormance of all of the obllgallons of Granter set forth In Section 4 above. 6.2 Liabilities. Beneficiary does not assume any obligations or duties of Grantor under the Permits, Contracts, and Plans unless and until Beneficiary shall have given Grantor written notice that It is exercising its right lo complete or cause the completion of construction on the Property in accordance with the terms of the Loan Documents. If Beneficiary does not directly undertake to complete development or construction of the Property, Beneficiary may assign such Permits, Contracts, and Plans lo, and such obligations and duties of Grantor in connection with the Permits, Contracts, and Plans shall be assumed by, the person or entity designated by the Beneflclary for the purpose of completing such development or construction, and Beneficiary shall have no llablllly whatsoever for the performance of any such obligations and duties. 6.3 Representations and Warranties of Grantor. Grantor represents and warrants lo Beneficiary that: 6.3.1 No Prior Assignments. There have been no prior assignments of its rights, title, and Interest In, to, and under the Permits, Contracts, and Plans; 6.3.2 Authority. Granier has full power and authority to assign its rights, title, and Interest in, to, and under the Permits, Contracts, and Plans lo Beneficiary and no consents or approvals of any other person or entitles are necessary In order for Grantor to validly execute, deliver, and periorm this assignment; and 6.3.3 No Defaults or Modifications. All covenants, conditions, and agreements set forth in the Permits, Contracts, and Plans have been pertormed as required as of the date hereof and neither Granto, nor any other party Is In default thereunder. Granter shall not amend or modify any of the terms and conditions of the Permits, Contracts, and Plans without the prior written approval of Beneficiary, nor shall Grantor assign, transfer, mortgage, or otherwise convey or encumber any or its rights, !Ille, or Interest In, lo, or under the Permits, Contracts, and Plans so long as any of Grantors obligations under the Loan Documents remain unfulfllled. 6.4 Attomey·in-Fact. Granlor hereby Irrevocably constitutes and appoints Beneficiary as its allorney-in-fact, upon the occurrence of any defaults hereunder or under any of the other Loan Documents, to demand, receive, and enforce any and all of Granters rights under and with respect lo the Permits, Conllacls, and Plans, and to perform any and all acts with respect lo the Permits, Contracts, and Plans that Beneficial)' deems necessary or desirable with the sarne force and effect as If performed by Granto, in the absence of this assignment. 6.5 Assignment for Security. This assignment is for security purposes only. Beneficiary shall have no right pursuant to this assignment lo enforce Grantor's rights with respect to the Permits, Contracts, and Plans until Granto/ shall be in default under any of Its obligations lo Beneficiary AP. &st Frxms: Doed of Tru~ pege5 H:\Cllont\Bonf\el\99795t.2012 Loan Forms (A.P. Besl)\Oeed of Trust. Washln91on.doc 20130822000745,005 P11blic Record created By. bloedel Printed: li/L//201312.40:30 PM PSI order. 14on-oraer searcr1 ooc. KC.2013 2ouos2200014s Pages or 19 :-: i :-1 pursuant to this Deed of Trust or any of the other Loan Documents. On the occurrence of any such default, Beneficiary, without effecting any of Its rights or remedies against Grantor under any other instrument, document, or assignment, may exercise Its rights under this assignment or In any other manner permitted by applicable law, and in addition, Beneficiary shall have and possess, without tlmltatlon, any and all rights and remedies of a secured party under the UCC or as otherwise provided by law. 7. Nature of Property/Remedies. Granter and Beneficiary agree that the filing of a financing statement in lhe records having to do with personal property in conneclion with the securily Agreement provided herein shall never be construed as in any way derogating from or Impairing the declaration and the stated intention of the parties hereto that the Property and all components thereof are, lo the maximum extent possible, real property, subject to Beneficiary's right on default to exercise, in any manner permitted by applicable law, those remedies (a) available to Beneficiary under this Deed of Trust, (b) available to Beneficiary as a secured party under the provisions of the UCC, or (c) otherwise provided for by law or available in equity. Whenever Beneficiary's security shall be deemed to include personal property, Beneficiary shall be entitled to foreclose against such property in connection with and as a part of any judicial or nonjudicial proceeding against the real property secured hereby, the parties hereby acknowledging that such foreclosure constilutes a commercially reasonable method of selling such property, or, In Benellclary's sole discretion and as permitted by applicable law, lo pursue any and all other remedies afforded a secured party under lhe UCC or other applicable law. In case of a default hereunder, Grantor agrees to assemble all such property and make it available lo the Trustee or Beneficiary as secured party at a place to be designated by such party that is reasonably convenient lo all parties. 8, Representations and Warranties. To protect the securily of this Deed of Trust and for the benefit of Beneficiary, Grantor does, for Grantor and for Grantor's successors and assigns, represenl, covenant, warrant, and agree as follows: 8.1 Warranty of Tille. That Grantor has good and marilelable title to an indefeasible fee simple estate In all real property described herein subject only to such liens and encumbrances, if any, specifically described herein or otherwise accepted or approved by Beneficiary in writing; that Grantor owns all of lhe Property described herein free from liens, securily Interests, and encumbrances of any kind (other lhan those approved In writing by Beneficiary); that Granlor Is vested with the right lo convey all real property described herein to Trustee for the benefit of Beneficiary; and that no consent of other parties is required as a condllion thereto. Grantor does hereby and will forever warrant and defend title to the Property herein conveyed and defend lhe validity and priority of the lien of lhis Deed of Trust against the claims and demands of all persons and parties; 8.2 Commercial Instrument. That this Deed of Trust is and will continue lo be a commercial Deed of Trust and that the proceeds of the loan secured hereby wlll be used for business or commercial purposes other than agricultural, timber, grazing or farming purposes, and not for personal, family, or household purposes; 8.3 Property Not Agricultural. THE REAL PROPERTY IS NOT USED PRINCIPALLY FOR AGRICULTURAL PURPOSES; 8.4 Legal Entity, Business, Elc. Thal while any sums remain outstanding hereunder, Grantor will: (a) maintain Its existence In the fonm under which It currently operates, and preserve In full force and ettecl all its rights and franchises having a material effect upon Its business or the ownership of Its properties; and (b) give prompt notice to Beneficiary of any material change In Grantor's business or financial position, any change in any location where Grantor's accounts and/or assets are to be maintained, AP. Best Forms: Deed of Trvst page6 H;\ClienOOanner'e9795\2Q12 Loan Form! (AP. BQSt)\Oeed ol Trusl. Washingt0t1.doe 20130822000745.006 Public Record Order. 11mr1-uraer search DOC: KC.2013 2013oa2200014s Page 6 ut 19 created sy: o1oeae1 Printed. 11/2//201312:40!30 PM PSI I the locallon of any new places of business of Grantor and the changing or closing of any of Its existing places of business, and any change In Grantors name; and 8.5 No Subordinate Financing. Thal this Deed of Trust shall be the only lien or encumbrance affecting the Property. Granlor agrees that there shall be no junior financing secured by the Property or any Interest therein without Beneficiary's prior written consent. 9. Maintenance and Inspection of Improvements. Granlor shall malnlain the buildings and other improvements now or hereafter located on the Property in a firot-class condillon and stale ol repair and shall not allow any material changes in the currenl use of !he Property or lls zoning l'Alhoul Beneficiary's consent. Granto, shall not cause, conduct. or.permit any nuisance, nor commit or suffer any waste; shall promptly comply with all !he requirements of federal, slate, and municipal authorities and all other laws, ordinances, regulations, covenants, condllions, and restrictions respecting the Property or the use thereof; and shall pay all fees or charges of any kind in connection !herewith. Granlor shall complele or restore promptly and In a workmanlike manner any building or improvement that may be constructed, damaged, or destroyed thereon, and pay when due all costs incurred therefor. Beneficiary and ils employees and agents shall be entitled from lime to lime to enter on the Property (including !he interior of any slructures), at reasonable times and after reasonable notice, to inspect the Property, ascertain compliance with the Hazardous Substances warranties sel forth below and other provisions of this Deed of Trust {Including the rtghl lo lake soil samples and conduct other reasonable tests and investigations), conduct appraisals to determine the value of the PropMy, or to pertorm any other act authorized hereunder. Costs incurred in obtaining such inspections, appraisals, tests, and other activities described above shall be part of the obligations secured hereby. Grantor will permit access to the Property and will fully cooperate with Beneficiary In this regard. 10. Construction. This Deed of Trust is given lo secure a conslruclion or land acquisition loan. Granlor agrees lo commence and complete construction promptly and in accordance with the terms of !he Loan Documents. 11. Alterations. No building or other improvement on the Property shall be structurally altered, removed, or demolished l'Athout Beneficiary's prior written consent, nor shall any fixture or chatlel covered by this Deed of Trust and adapled to the proper use and enjoyment of the Property be removed at any time withoul such consent unless actually replaced by an article of equal suitability, owned by lhe Grantor. 12. Hazardous Substances. The terms 'hazardous waste,' 'hazardous substance,' 'disposal.' 'release,' and 'threatened release,' as used In this Deed of Trust, shall have the same meanings as set forth In the Comprehensive Environmental Response, Compensation, and liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ('CERCLA'), the Supertund Amendments and Reauthorization Act of 1986, Pub. L. No. 99 499 ("SARA'), lhe Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 49 U.S.C. Section 6901, et seq., or other applicable state or Federal laws, rules, or regulations adopted with respect to hazardous waste or substances. Except as disclosed to and acknowledged by Beneficiary In writing, Grantor represents and warrants to Beneficiary that: (a) During the period of Granto(s ownerohip of the Property, there has been no use, generation, manufacture, storage, trealmenl, disposal, release or threalened release of any hazardous waste or substance by any person on, under, or about lhe Property: (b) Grantor has no knowledge of, or reason to believe Iha! there has been, except as previously disclosed lo and acknowledged by Beneficiary In writing, (i) any use, generation, manufacture, storage, treatment. disposal, release, or threatened release AP. Basr Fcrms: Daed of Trust pag,7 H:\Cr~t\Bannei\99795\2012 Loon FOflTl, (A.P. Besl)\Oeed of Trust· W.11shirigton.doo Public Record 20130822000745.007 oraer. 1%r1-oraer searcn ooc: KC:2013 2uuos22000145 Page , or 19 ueatea sy. Bloedel Prlhted. 11/21/2013 12:40.30 PM PS I of any hazardous waste or substance by any prior owners or occupants of the Property or (ii) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged by Beneficiary in writing, (i) neither Granier nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of, or release any hazardous waste or substance on, under, or about the Property and (Ii) any such activity shall be conducted In compliance with all applicable federal, slate, and local laws, regulations and ordinances, Including wHhoul llmttalion those laws, regulations, and ordinances described above. Grantor authorizes Beneficiary and Its agents lo enter upon the Property to make such Inspections and tests as Beneficiary may deem appropriate to delenmlne compliance of the Property with this section of the Deed of Trust. Any inspections or tests made by Beneficiary shall be for Beneficiary's purposes only and shall not be construed lo create any responsibility or liability on the part of Beneficiary to Grantor or to any other person. The representations and warranties contalnec herein are basec on Grantor's due diligence In investigating the Property for hazardous waste. Grantor hereby (a) releases and waives any future claims against Beneficiary for indemnity or conlribulion in the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees to indemnify and hold harmless Beneficiary against any and all claims, losses, liabilities, damages, penalties, and expenses which Beneficiary may directly or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occumng prior to Grantor's ownership or Interest In the Property, whether or not the same was or shOuld have been known to Granter. The provisions of this section of the Deed of Trust, Including the obllgatlon to Indemnify, shall survive the payment of lhe Indebtedness and the satisfaction and reconveyance of the lien of this Deed of Trust and shall not be affected by Beneficiary's acquisition of any Interest In the Property, whether by foreclosure or otherMse. 13. Insurance. Granier shall conttnuously maintain Insurance, with premiums prepaid, on all of the Property, against loss, fire, and other hazards, casualties, and contingencies, and shall maintain liabiltty Insurance, all as may be required from time to time by the Beneficiary In such amounts and for such pertod of time, with loss payable clauses (wllhout contribution) In favor of and In fonm satisfactory to Beneficiary, and shall provide Beneficiary al least thirty {JO) days' notice prior to the expiration of any existing insurance. All Insurance shall be carrlec In companies approved by Beneficiary. If Granter shall fail for any reason to procure any such Insurance at least fifteen ( 15) days prior to the expiration of any policy of Insurance now or hereafter placed on the Property, Beneficiary may procure the same at Grantor's expense. The amount collected under any fire or other insurance policy may be appllec by Beneficiary to any indebtedness secured hereby and in such order as Beneficiary may determine, or, al the option of Beneficiary, the entire amounts collected, or any par1 thereof, may be released to Granter. Such appllcatlon or release shall not cure or waive any default er notice of default hereunder or Invalidate any act done pursuant to such notice. In the event of foreclosure of this Deed of Trust or other transfer of tltle or assignment of lhe Property to Beneficiary in lieu of foreclosure, all right, title, and interest of Granter In and to all policies of insurance required by Beneficiary shall inure to the benefit of and pass to the grantee of the Property. 14. Payment of Liens and Taxes. Grantor shall keep the Property free from construction liens of any kind and pay all taxes, assessments, and other charges that may be levied or assessed upon or against the Property before any part of such taxes, assessments, or other charges become past due or delinquent and promptly deliver receipts lherefor lo Beneficiary. 15. Defense of Property. Grantor shall appear in and defend any suit, action, or proceeding Iha! might affect the value of this Deed of Trust, the Deed of Trust itself, or the rights and powers of AP. fmfFIJfms: DaadofTNsl pago8 H:\Cllent\BenM!i\99795\2012 Loan Foot1s (AP. Best)\Dead of Trusl. Washtnglon.doc Public Record 20130822000745. 008 oraer: 11Jon-0raer searcr1 ooc. KC:2013 2onua2200014s Page a or 19 Created By: bldedel Printed. 11/2//2013 12!40.30 PM PSI Beneficiary or Trustee, including, without llmitallon, any condemnation or public improvement proceeding, and should Beneficiary or Trustee elect also to appear and defend any such action or proceeding, be made a party to such by reason of this Deed of Trust, or elect to prosecute such action as appears necessary to preserve said value, Granter wilt, at all limes, indemnify from and, on demand, reimburse Beneficiary or Trustee for any and all loss, damage, expense, or cost, including cost of evidence of title and attorneys' fees, arising out of or Incurred In connection with any such suit, action, or proceeding. 16. Beneficiary Au1horized to Act. Should Grantor fail to make any payment or to do any act as herein provided, Beneficiary or Trustee may, but without obligallon lo do so and without notice to or demand upon Granter and without releasing Grantor from any obligation hereunder: (a) make or do the same In such manner and to such extent as either may deem necessary to protect the security hereof; (b) commence, appear In, and defend any acllon or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest, or compromise any encumbrance, charge, or Hen that in the sole judgment of Beneficiary either appears to be prior or superior to this Deed of Trust: and, (d) in exercising any such power, incur any liability and expend whatever amounts In Its absolute discretion It may deem necessary therefor, Including cost of evidence of title and reasonable attorneys' fees. 17, Condemnation Proceeds. In the event that all or any pcrtion of the Property Is taken under the right of eminent domain or condemnation, Beneficiary shall have the right, if it so elects, to require that all or any pcrtlon cl the monies payable as compensation for such taking be paid to Beneficiary and applied by It first to any reasonable costs, expenses, and atlomeys' fees, both in trial and appellate courts, necessarily paid or Incurred by Beneficiary In such proceedings, and the balance applied upcn lhe indebtedness secured hereby, Grantor further agrees, at its own expense, lo take such actions and execute such Instruments as shall be necessary to obtain such compensation. 18, Actions by Trustee. From Ume to time upon written request by Beneficiary, payment al fees, and presentation of this Deed of Trust and any note secured hereby for endorsement (In the case of full reconveyances, for cancellation), without attectlng the liability of any person for the payment of the lndebledness, Trustee may (a) consent to the making of any map or plat of the Property: (b) join In granting an easement or creating any restriction thereon: (c) Join in any subordination or other agreemenl affecting this Deed of Trust or the lien or charge thereof: and (d) reconvey, without warranty, all or any part of lhe Property. The grantee In any reconveyance may be described as the ·peISon or persons legally entitled thereto,' and the recitals therein of any matters of fact shall be conclusive proof of the truthfulness thereof. 19. ADAIFHAA Compliance. So long as this Deed of Trust remains outstanding, Granter wlli, at its own cost and expense, In respect of the Property and In respect cl Grantors business activities at or within the Property: (a) comply with all requiremenls of the federal Americans with Disabilities Act (the 'ADA') and the federal Fair Housing Amendments Act of 1988 (the 'FHAA') and the rules and regulations promulgated thereunder (the 'Rules"), to the extent applicable to Granters ownership, management, operation, leasing, use, construction, reconstruction, repair, remodeling, rehabilitation, or alteration of the Property or any part thereof; (b) immediately provide to Beneficiary written notice (and copies o~ any and all notices of actual, pclentlal, or alleged violations of the ADA, the FHAA, or the Rules and any and all governmental Investigations or regulatory actions instituted or threatened against Granter or the Property or Grantors business activities at or within the Property regarding the ADA, the FHM, or the Rules: and (c) furnish to Beneficiary, from lime to time whenever reasonably requested by Beneficiary, a Compliance Assessment, In form and substance reasonably satisfactory to Beneficiary, prepared by an architect or enginee, with skill, expertence, and reputation acceptable to Beneficiary, In the field of compliance with the ADA or the FHAA, as applicable. A.P. Best Forms: DeeiJ of Trost pBg69 H:\Client\Barmen.997951.2012 loan Forms (A.P. Bes1)\0eed of Trust-Washlnglon.doc Public Record 20130822000745.009 uraer. r-:ion-uraer seartr1 ouc. KC:2013 201Joa2200014s Page g or 19 treated sy: bloedel Pflrited: 11/2//2013 12:40:30 PM PS I 20. Reappraisals. Beneficiary shall have lhe right lo oblain al Granlors cost and expense reappraisals of the Property from any licensed or certified appraiser designated by Beneficiary, from lime lo lime (a) whenever such reappraisal may be required by any law, rule, or regulation applicable lo the conduct of Beneficiary's business, or may be requested or directed by any governmental authority charged wllh lhe administration of such law, rule, or regulation or Beneficiary's compliance therewilh, whether or nol such request or direclion has the force of law, or (b) whenever Beneficiary has reasonable cause lo believe lhal lhe lheri-current loan-lo-value ralio applicable to the loan or loans secured by the Property exceed the original loan-to-value ratio approved by Beneficiary with respect to such loan or loans, or (c) whenever reasonably deemed appropriate by Beneficiary following the occurrence or during lhe continuation of an Event of Default Beneficiary may use lhe resulls of such reappraisal to evaluate and restructure such loan or loans If necessary In 8enef1Clary's reasonable discretion. 21. Beneficiary's Expenditures. If any action or proceeding is commenced that would materially affect Beneficiary's Interest In the Property or if Grantor falls to comply wllh any provision of this Deed of Trust or any Related Documents, Including bul not limited to Granters failure lo discharge or pay when due any amounts Grantor Is required to discharge or pay under this Deed of Trust or any Related Documents, Beneficiary on Granters behalf may (but shall not be obligated lo) lake any action that Beneficiary deems appropriate, Including but nol limited to discharging or paying all laxes, liens, security inleresls, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Beneficiary for such purposes will then bear interest at the rate charged under the Note from lhe date incurred or paid by Beneficiary to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, al Benefk:iary's option, will (A) be payable on demand; (8) be added to the balance of lhe Nole and be apportioned among and be payable wilh any installment payments to become due during either (1) the lerrn of any applicable insurance policy; or (2) the remaining term of the Note: or (C) be lreated as a balloon payment which will be due and payable at the Nole's maturily. The Property also will secure payment of these amounts. Such right shall be in addition lo all other rights and remedies to which Beneficiary may be entitled upon Default. 22, Non-Waiver of Defaults. The entering upon and laking possession of the Property, the colleclion of rents, issues, and profits, or the proceeds of fire and other Insurance policies or compensation or awards for any kind of taking or damage of the Property, and the application or release !hereof as provided In this Deed of Trust shall not cure or waive any defaull or notice of defaull hereunder or Invalidate any act done pursuant to such nolice of default Further, by accepting payment of any sums secured hereby after !heir due date, Beneficiary does not waive Its right either lo require prompt paymenl when due of all other sums so secured or to declare the failure lo pay such sums an Event of Default. 23. Events of Default. Each of the following circumstances shall constitute an event of default under lhis Deed of Trust (Individually, an '!;vent of Defau/f). 23. 1 Payment Default Failure to make any scheduled payment of principal, Interest, or any required reserves under any note secured hereby, this Deed of Trusl, or any of lhe other Loan Documents when due. 23.2 Defaull Under Loan Documents. Failure to make any payment required under any of lhe Loan Documents other than !hose Identified In the preceding paragraph or to pertorm any other covenant, agreement or obligation under this Deed of Trusl, or any of the other Loan Documents, or any breach of warranty or any material Inaccuracy of any representaUon of Granter thereunder, and the failure to A. P. Best Forms: Deed of T rvsl Pll!J• 10 H:\Cllent\Bannor\99795\2012 Loan Forms (A.P. Best)\Deed ol Trvst • Washlngion.doc 20130822000745.010 Pub I ic Record treated By: biOedel Printed. 11/27/2013 12.40:30 PIVI PS I oruer. IQOn-uraer seart11 ooc. KC.2013 2ouoa2200014s Page -ro or 19 cure such default within lhe staled cure period (or if none is slaled, then failure to cure within thirty (30) days after Beneficiary's delivery of written demand to Granlor, or if such cure cannot be completed within such thirty (30) day period, failure by Grantor lo commence the required cure within such thirty (30) day period, and thereafter lo complete lhe cure within ninety (90) days afler Beneficiary's delivery of such written demand); 23.3 Default on Obligations Secured by Propertv. Any failure lo pertonm any obligation that Is secured by any lien against or any lnte1esl In lhe Property, rights, or interests encumbered hereby or any portion thereof, regardless of whether such lien or interest Is prior or subordinate lo the Oeed of Trust, and which default or failure to pertorm is not cured within any applicable grace period or which in any manner threatens the lien of this Deed of Trust; 23.4 Cross-Default. Any default by Granlor or an affiliate of Granto, under any obligations of Grantor or any such affiliate to Beneficiary now existing or hereafter undertaken (for purposes of this Section, an "afflllate" shall Include (I) any entity that controls, is controlled by, or is under common control with Grantor; and shall also include (ii) any entity that owns in whole or In part, is owned by, or is under common ownership with Grantor); 23.5 Obligations to Third Par11es. Any material default by Grantor under any loan or obligation owed to any third par1y; 23,6 Insolvency; Bankruptcy: Receivership. Any of the following shall occur with respect to the Proper1y, the Grantor, or any successor to the Grantors Interest in the Property: (a) the institution of any proceeding for appointment of a receiver, liquidator, or lrustee; (b) the inslilution of any proceeding for dissolution, liquldallon, or similar relief; (c) the filing of a voluntary petition for bankruptcy or reorganization; {d) the nling of an involuntary petition for bankruptcy or reorganization that Is nol dismissed within sixty (60) days; or (e) Grantor Is unable to pay Grantors debts, respectively, as they become due; 23.7 Default Under Leases. Any default by Grantor under any lease affecling lhe Proper1y, any termination of such lease, or any modification, surrender, or cancellation of such lease without Beneficiary's prior wrttten consent; 23.8 Adverse Change. Any material adverse change in the Property, including, without limitation, actual or threatened removal, demolition, or Impairment of the Property or any lmprovemenls thereon, or In the financial condition of Grantor as determined by Beneficiary in its sole discretion based on lls review of the most current financial statement provided by such par1ies and the status of their respective real estale portfolios and other investments. 23.9 Impact on Use of Property. Any impending or proposed: (a) condemnation, (b) rezone, or (c) modification or enactment of any ordinances or regulations that could materially affect any Improvements on lhe Property or the use or value thereof; The waiver by Beneficiary or any Event ol Default shall not oonstllute a waiver of any other or subsequent Event of Default. 24. Acceleration Upon Default; Additional Remedies. Upon any Event of Defaull, Beneficiary may, at notice lo or demand upon Grantor, exercise any one or more of the following actions: declare all amounts secured by this Deed of Trust Immediately due and payable; bring a court action to enforce the provisions of this Deed of Trust or any of the other Loan Documents; foreclose this Deed of A.P. Best fomis: Ceed of Trust pag• 11 H:\Clieot\Elenner\99795\2012 Loaf\ Farms {A.P. Bes\)\Deed oflrus\ · Weshlngton.doc 20130822000745.011 Public Record Created ey. o1aeae1 Prlrited. 11/27/2013 12:40!30 P\'il PS I oroer: 11Jon-orue1 searcn ooc: KC:zon 2onos2200012ts page 11 or 19 Trust as a mortgage; cause any or all of the Property to be sold under lhe power of sale granted by this Deed of Trust In any manner permilled by applicable law; exercise Beneficiary's rights with respect to any leases and rents; and/or exercise any or all of lhe other rights and remedies under this Deed of Trust and the other Loan Documents or available under law or In eqully. To the extent permitted by law, every right and remedy provided in this Deed of Trust or afforded by law or equity or any olher agreement between Beneficiary and Granter may be exercised ocncurrenlly, independently, or successively, in any order whatsoever. Beneficiary may exercise any of ils rtghls and remedies at its option without regard to lhe adequacy of Its security. 25. Foreclosure by Power of Sale. Should Beneficiary elect lo foreclosure by exercise or the power of sale herein contained, Beneficiary shall nolify Truslee and request that Trustee proceed with all notices required by law. 25. 1 Notice of Def au II -Noniudlclal Sale. Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded, published, and delivered to Grantor such notices as are required by law and by this Deed of Trust. Trustee shall, wilhout demand on Granier, after lapse of such time as may then be required by law and after recordatlon of lhe required notice of trustee's sale, at public auction lo lhe highest bidder, for cash In lawful money of the United Slates payable at lhe lime of sale, sell the Property, either as a whole, or In separate lots or parcels or llems as Trustee shalt deem expedient. and in such order as it may determine, upon any terms and conditions specified by Beneficiary and permitted by applicable law. The Property, real, personal and mixed, may be sold in one parcel. To lhe extent any of the Property sold by the Trustee is personal property, then Trustee shall be acting as the agenl of the Beneficiary in selling such Property. Any person or entity permitted by law to do so may purchase at any sale. Upon any sale, Trustee will execute and deliver to lhe purchaser or purchasera a deed or deeds conveying the Property sold, but without any covenant or warranty, express or implied, and the recitals In the Trustee's deed showing that the sale was conducted in ocmpllance wllh all the requirements of law shall be prima facle evidence of such ocmpllance and conclusive evidence thereof in favor of bona fide purchasera and encumbrances for value. Any such non-Judicial sate (or the acceptance of a deed-In-lieu of foreclosure) shalt have no effect on the enforceability of the Indemnity Agreement and GuaranUes, which shall remain as separate and distinct obligations from the Note and fully enforceable in accordance with their respeclive terms. 25.2 Application of Sale Proceeds. After deducting all costs, fees, and expenses of Trustee and of this trust, including ocsts of evidence of tille In connection with lhe sale, T11Jslee shall apply the proceeds of sale to payment of: (a} all sums expended under the terms hereof, not then repaid, with accrued Interest et the Default Rate provided In any note secured hereby: (b) all other obligations then secured hereby; and (c} the remainder, if any, to the person or persons 161lally enlllled thereto In acocrdance with the law. 25.3 Postponement of Sale. Trustee may postpone the sale ol all or any portion of the Property by public announcement at the time and place of sale, and from lime to time thereafter may . postpone such sale by public announcemenl at the time nxed by the preceding postponement or subsequently nollced sale, and without further nolice make such sale al the lime fixed by the last postponement, or may, it its discretion, give a new nollce of trustee's sale. 25.4 Request for Notice. Granter hereby requests a copy of any notice of default and that any notice of trustee's sale hereunder, as well as any other writlen notifications required by other provisions hereof, be malled to It at the address set forth in the first paragraph ol this Deed of Trust. A.P. Be,I fom,~ Daed of Trust pege 12 H:\Clienl\Benner\9979S\2012 Loan Fil ml$ (A.P. 8es.t}\Oeed or Trust· W~sh!rtgtoo.doo Public Record 20130822000745.012 order: Not1 oraer searcn uoc: KC.2013 2013os2200014s Page 12 Of 19 ereacea sy. 01oeae1 Printed: 11/27/2013 12:40.31 PM PS I ' ' ., 26. Foreclosure as Mortgage. Should Beneficiary elect lo foreclosure lhis Deed of Trust in the manner provided by law for the foreclosure of mortgages on real property, Beneficiary shall be entilled lo recover In such proceeding all costs and expenses Incident thereto (Including costs on appeal), including reasonable altomeys' fees (and attorneys' fees on appeal), in such amount as shall be fixed by the court. Beneficiary shall be entitled to possession of the Property durtng any redemption penod allowed under the laws of the Stale of Washinglon. Any such Judicial foreclosure (or the acceptance of a deed-In-lieu of foreclosure) shall have no eftect on the enforceability of the Indemnity Agreement and Guaranties, which shall remain as separate and distinct obligations from the Note and fully enforceable In accordance with their respective terms. 27. Appointment of Receiver. If an Event of Default shall have occurred and be continuing, Beneficiary, as a matter of right and without notice to Grantor or anyone claiming under Grantor, and without regard to the then value of the Property or the Interest of Granier therein, shall have the right, lo the exlent · permilled by applicable law, lo apply to any court having jurisdiction to appoint a receiver or receive,,; of the Property, and Granter hereby Irrevocably consents to such appointment without bond, and waives notice of any appllcalton therefor. Any such receiver or receivers shall have all the usual powers and duties of Beneficiary in case of entry and shall continue as such and exercise all such powers until the date of confirmation of sate or the Property unless such receivership is sooner terminated. 28. Remedies Not Exclusive. Trustee and Beneficiary, and each of them, shall be entitled to enforce payment and performance of any obligations secured hereby and to exercise all rights and powera under this Deed of Trust, under any Loan Document or other agreement, or under any laws now or hereafter In force, notwithstanding some or all of the said obligations secured hereby may now or hereafter be othe1Wise secured, whether by mortgage, Deed of Trust, pledge, lien, guaranty, assignment or otherwise. Neither the acceptance of this Deed of Trust nor its enforcement, whether by court aclton or purauant to the power of sale or other powers herein contained, shall prejudice or in any manner affect Trustee's or Beneficiary's right to realize upon or enforce any other securtty now or hereafter held by Trustee or Beneficiary, It being agreed that Trustee and Beneficiary, and each of them, shall be, to Iha ex1ent permitted by applicable law, entilled lo enforce this Deed of Trust and any other security now or hereafter held by Beneficiary or Trustee in such order and manner as lhey or either of them may In their absolute discretion determine. No remedy herein conferred upon or reserved to Trustee or Beneficiary Is Intended lo be exclusive of any other remedy herein or by law permitted, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or In equity or by statute, or given by any of the Loan Documents to Trustee or Beneficiary, and either of them may pursue inconslslenl remedies. The failure on the part of Beneficiary to promplty enforce any right hereunder shall not operate as a waiver of such righl. 29. Appointment of Successor Trustee. Beneficiary may, for any reason permilled by law, from time to time appoint a successor or successors lo any Trustee named herein or to any successor trustee appointed hereunder. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested v.ilh all title, powera, and duties conferred upon any trustee herein named or appointed hereunder. Each such appointment and substitution shall be made by wrtllen Instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, when recorded In the office of the county clerl< or recorder of the county or counties In which the Property Is situated, shall be conclusive proof of proper appointment of the successor trustee. 30. Duties of Trustee. Trustee accepts this trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Truslee is nol obligated to notify any party AP. Bes/ Forms: Daadol Trusf p99a 13 H:\Cllent\Banner\9979SU<l 12 Lean Forrm (A.P. 8est)\Olffld of TMl · Washln9lon.doc Public Record 20130822000745,013 order. 11Jon~o,ue1 search ooc KC.2013 20noa2200014s Page 13 or 19 Created BY. o1oeae1 Printed: 11/27/2013 12.40.31 PM PS I hereto of pending sale under any other Deed of Trust or of any action or proceeding In which Granlor, Beneficiary, or Trustee shall be a party unless such action or proceeding is brought by Trustee. 31. Repayment of Beneficiary's Expenditures and Advances. Granlor shall Immediately pay, wiJhout demand by Beneficiary, all sums expended or advanced hereunder or under any of the other Loan Documents, and all costs incurred by Beneficiary or Trustee In enforcing or protecting their nghls or Interests hereunder or under any of lhe other Loan Documents (Including, without llmilatlon, allorneys' fees, accountants' fees, and any olher costs or expenses whatsoever), wilh Interest from lhe dale of any such expenditure or advance al the Defaull Rate provided In any note secured hereby, and the same shall conslitute advances made under this Deed of Trust and repayment thereof shall be secured hereby. This includes, without limilalion, attorneys' fees and costs incurred by Beneficiary lo protect Its interests at trial and in any bankruptcy or appellate proceeding. II Granier fails to pay any such expenditures, advances, costs, or expenses, together wilh interest thereon, Beneficiary may, in addition lo the other remedies provided hereunder lo the extent permitted by applicable law, at ils sole discretion: (a) commence an independent action against Granlor for lhe recovery of such sums: and/or (b) advance any undlsbursed loan proceeds to pay lhe same. 32. Due on Sale or Encumbrance. Granier acknowledges and agrees that lhe obllgallons secured by lhls Deed of Trust are personal lo Grantor and thal Grantor's personal responsibility, financial condillon, and control of lhe Property were material Inducements on which Beneficiary relled in making Its loan to Grantor. Granter agrees Iha! neither lhe Property nor any Interest therein shall be encumbered, sold (by contract or otherwise), conveyed, leased, or otherwise transferred by Granter, nor shall !here be any change In (i) the ownership or control of more than 25% of Granters stock if Granter Is a corporation, (ii) the ownership or control of any general partnership Interest in Grantor, if Granter Is a general or limited partnership, (iii) lhe ownership or control of any membership interest in Granter if Granter is a llmiled liability company, (iv) lhe ownership of any beneficial lnleresls if Granter is not otherwise a natural person(s), or (v) lhe majonly ownership of slack or any general partnership or membership Interest In any corporallon, partnership or limited llabillly company Iha! has an ownership lnteresl In Granter. Any such acllon without Beneficiary's prior wrlllen consent shall be deemed to increase Beneficiary's risk, and shall be an Even! of Defaull hereunder. If Beneficiary elecls in lls scle discretion to consent lo any such action, Beneficiary may condition its consent on such terms and conditions as Beneficiary may require, such as payment of a transfer review fee and/or assumption fee, and/or an increase In lhe Interest rate on lhe obligations secured hereby. Beneficiary shall nol be required lo release Jhe original obliger or any olher party liable for such obllgalions. 33. Partial Reconveyance, Should the Loan Documents allow for the partial reconveyance from the encumbrance of lhe Deed of Trusl of any portion of the Property upon the payment of a certain sum to Beneficiary ('Partial Reconveyance'), any such Partial Reconveyance shall be allowed only so long as the following addillonal conditions are met: 33.1 No Defaults. Granlor is not in defaull hereunder or under the lerms of any of lhe Loan Documents; 33.2 legally Subdivided. The Property has been legally subdivided Into parcels or lols (or condominium units, if appl~able) such that bolh (a) the portion of the Property to be reconveyed and (b) the portion of the Property remaining subject to lhe Deed of Trust are legally segregated properties capable of being transferred Jo third-party purchasers in accordance with the law: AP, Belit Formli.' !Hied of Trust P"'Jf' 14 H:\Cl!enOBanner\99795\2012 loen F-0rms (A.P. Bcsl}\Deetl of TruSl • WaSfllf'IQtG'l.doc 20130822000745,014 Pub] ic Record created By: bloedei Printed. II/Zl/2013 12:40:31 PM PSl oraer: 1~on-uraer searcr1 oat. KC:2013 2013oa2200014s Page 14 or 19 33.3 Access Unimpaired. The Partial Reconveyance does not deny or unreasonably impair access to public roads and utilities for either the portion or the Property remaining subject to the Deed ofTrusl or the portion of lhe Property reconveyed; 33.4 Identification of Property. Granlor secures all necessary services of surveyors, engineers, and other consultants of any kind or nature whatsoever required in connection with the Partial Reconveyance In order to sufficiently identify lhe portion of the Property to be reconveyed and to enable lhe Trustee lo complete the Partial Reconveyance; and 33.5 Costs. Granter pays all costs incurred in conneclion wllh the Partial Reconveyance. Beneficiary shall have no responslblllly for such costs and shall be reimbursed by Granter for any costs incurred by Beneficiary. 34. Indemnification by Granter. Grantor agrees lo indemnify and hold Beneficiary and Trustee harmless from and against any and all losses, liabllilies, sulls, obllgalions, damages, costs, and expenses, Including attorneys' fees and costs, that may be Imposed on, Incurred or paid by, or asserted against Beneficiary or Trustee by reason or account of: (a) any action by Granier In connection with the Property; (b) any good faith and commercially reasonable exercise of any of lhe rlghls and remedies or performance of any of lhe dulles of Trustee or Beneficiary under any of the Loan Documents; or (c) any other liability arising In any manner in connection with the Property other than as a result of the gross negligence or wilttul misconduct of Beneficiary or Trustee, and such ob\lgallon shall be secured by this Deed of Trust, except to lhe extent that It falls within lhe scope of any separate Indemnity Agreement that by its terms is not secured hereby, If any claim, aclion, or proceeding is brought against Beneficiary or Trustee that is the subject of the Indemnity set forth in this paragraph, Grantor shall resist or defend against the same, if necessary In the name of lhe Trustee or Beneficiary, by allorneys for Grantor's insurance carrier or otherwise by attorneys approved by Beneficiary. 35. Further Assurances. Granlor, from time lo lime, within filteen (15) days alter request by Beneficiary, shall execute, acknowledge, and deliver to Beneficiary such addlllonal security Instruments, in form and substance satisfactory to Beneficiary, covering all property of any kind whatsoever owned by Granier or In which Grantor has any Interest which, in the reasonable opinion of Beneficiary, Is essential to the operation of the Property covered by this Deed of Trust, and shall execute, acknowledge, and deliver any financing statement, renewal, affidavit, certificate, continuation statement, or other document as Beneficiary may reasonably request in order lo perfect, preserve, continue, extend, or maintain Beneficiary's security interests under or lhe priority of this Deed of Trust. Granter shall pay all costs in connection with lhe preparation, execution, recording, filing, and refiling of any such documents. 36. Muttlple Grantors, ff Granter Is comprised of more than one person or entity, then the term "Granto/' used herein shall refer to all such persons or entities collec\lvely and to each such person or entity Individually, such that all obllgalions, covenants, warranties, requirements, restricllons and other provisions of ll1is Deed of Trust shall apply both colieclively and individually, and each such person or entity shall be Jointly and severally liable for all obllgallons secured by this Deed of Trust. 37. Assignment. Beneficiary may assign this Deed of Trust In whole or In part to any person and may grant participation in any of ils rights under ll1e Deed of Trust without notice and without affecting Granters liability under this Deed of Trust. In connection with any proposed assignment, participation, or similar arrangements, Beneficiary may make available to any person all credit and financial data furnished or to be furnished lo Beneficiary by Grantor or any guarantor under lhe Loan Documents. Granter may nol assign the Deed of Trust lo any person at any lime, except in connection with a transaction approved In A.P. Bast Forms: Dead of Trust pt,ge 15 H:\CllentlBMnel\1l9795\2012 loan Forms (AP. Besl)\Deed of Tru5l -Washington.doc 20130822000745.015 Public Record erea tea ey. DioEdel Printed: 11/D/201312:40:31 Pi 0i PSI oraer. 1qon-oraer searer I ooc. KC. 2013 2013oa2200014s Page ts 01 19 writing i>y Beneficiary under the terms of this Deed of Trust. Subject to such prohibitions against Grantors assignment this Deed of Trust shall inure to the benefit of and bind all of the parties hereto, their heirs, legatees, devlsees, admlnls/ra/ors, executors, personal representatives, successors, and assigns. 38. Applicable Law. This Deed of Trus/ is made with reference to and Is to be construed in accordance with the laws (without regard to the choice of law rules) of the State of Washington. 39. Miscellaneous. The term Beneficiary shall mean the holder and owner, including pledgee, of the obligations secured hereby, whether or nol named as Beneficiary herein. In construing this Deed of Trust and whenever the context so requires, the masculine gender Includes the feminine and neuter, and the singular number Includes the plural. This Deed of Trust may be executed In two or more counterparts, all of which will constilute one and the same instrument and lien. 40. Disclosures/Disclaimers. Beneficiary makes the following disclosures and disclaimers In connection with this Deed of Trust: 40.1 Actions Solely for Benefit of Beneficiary. Any and all subsequent purchasers of the Property, and any other parties acquiring an Interest In the Property, are hereby put on notice that any Inspection or approval of any part of any development, construction, renovation, or Improvement of the Property by Beneficiary or any agent of Beneficiary shall be made exclusively for the benefit of Beneficiary, and Beneficiary makes no representations whatsoever to any third party acquiring any Interest In the Property. Such third party shall have no rights of reliance upon any action taken by Beneficiary. Beneficiary makes no representations whatsoever to any third party as to the adequacy or legality of any action of Granter and any action of Beneficiary Is solely for the benefit of Beneficiary. 40.2 Changes In Interest Rate. One or more notes secured hereby contain provisions permitting (a) Increases and decreases In the rate of Interest provided In the note, and (b) Increases and decreases In the periodic payments required under the note. 41. Jury Waiver. BENEFICIARY AND GRANTOR HEREBY WAIVE THE RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER BENEFICIARY OR GRANTOR AGAINST THE OTHER. IF THERE IS A LAWSUIT, GRANTOR, AT BENEFICIARY'S OPTION, AGREES TO SUBMIT TO THE JURISDICTION OF SPOKANE COUNTY, WASHINGTON. 42. Notices to Granter and other Parties. Any notice under this Deed of Trust shall be in writing and shall be effective when actually delivered or, II mailed, shall be deemed effective when deposited in lhe United States mail first class, registered mall, postage prepaid, directed to the addresses srown near lhe beginning of this Deed of Trust. Any party may change Its address for nollces under this Deed of Trusl by giving formal written notice to the other parties, specifying lhal the purpose of the notice is lo change the party's address. All copies of notices of foreclosure from lhe holder of any lien which has priority over this Deed of Trust shall be sent to Beneficiary's address, as shown near lhe beginning of \his Oeed of Trust. For notice purposes, Granter agrees lo keep Beneficiary and Trustee Informed al all times of Grantor's current address. AP. Bes/ Forms: Deed cf Trust psgo 16 H:\Ctienl\Banner\99795\2012 toan Fo,ms (A.P, Be,t)l.Deed ofTrust , Washing!1;JJ.dQC Public Record 20130822000745.016 order. 1qor1-oraer searcn ooc. KC.2013 2onoa2200014s Page 10 01 19 Created By: 01oeue1 Printed: 11/27/2013 12:40:31 PM PS I ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. DATED as of the day and year first above written. GRANTOR: Geooerco PropMles WA, LLC, a Washing n ·ted liabillly company B Steven D. Parker Its Authorized Representative A.P. Bes/Forms: Deedc/Trost H:\aierit\aalln&l\99795\2012 Loa,1 Forms (A.P. Bast)\Deed of Trost. Washlngtoo.doc Public Record page 17 20130822000745.0~ 7 araer; Non-oraer searcn ooc: KC:zou 2013oe22000;45 Page 17 or 19 created sy: 01oeae1 Printed: 11;ZJ;2on 12:40:31 P\Vi PS 1 STATE OF WASHINGTON COUNTY OF _LJL..L.~~ ss. I certify that I know or have satisfactory evidence that Steven D. Parker ls the person who appeared before me, and said person acknowledged that he/she signed this instrument, and on oath stated that he/she was authorized to execute the Instrument and acknowledged It as the Authorized Representative of Geonerco Properties WA, LLC, to be the free and voluntary act of such party for the uses and purposes mentioned I the instr men!. Dated: Z'. .2., C/ :_3 A.P. BestFonm: DaedofTrosl ~~,,« ?$ d___) NolaryPublicfor ~~~~ ;f My Commission Expir.CJp/f SHERRILL H. MCCULLOUGH NOTARY PUBLIC STATE OF WASHINGTON COMMISSION EXPIRES JUNE 10, io1,i H:\Cllent'J3annef\99795\2012 Loan Foons (AP. Best)\Doed ol Trust-Wa5hlng1on.doc: Public Record page 18 20130822000745.018 order. rm11-0rder searcr1 ooc: KC:2013 20130822000/45 Page 18 or 19 treated ey: 01oeue1 Pr!rited! 11/Z//2013 12:40:31 PM PS I PARCEL A, • CHICAGO TITLE COMPANY LEGAL DESCRIPTION EXHIBIT A • Order No.: 001368474 TRACT 8, NORTHWESTERN GARDEN TRACTS, DIV. NO. 5, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 47 OF PLATS, PAGE{$) 90, lN KING COUNTY, WASHINGTON; EXCEPT THE EAST 65 FEET OF THE WEST 141 FEET OF THE SOUTH 155 FEET THEREOF; AND EXCEPT Tl!AT PORTION THEREOF CONVEYED TO THE CITY OF KENT BY DEED RECORDED UNDER RECORDING NUMBER 20130729000867, PARCEL B, THE EAST 65 FEET OF THE WEST 141 FEET OF THE SOUTH 155 FEET OF TRACT 8, NORTHWESTERN GARDEN TRACTS, DIV. NO. 5, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 47 OF PLATS, PAGE(S) 90, IN KING COUNTY, WASHINGTON; AND EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF KENT BY DEED RECORDED UNDER RECORDING NUMBER 20130729000867. 20130822000745.0l 9 Public Record I ru"'rd"'e~r~: ITTjqom1~1.no~rut.<er,ssse"a"'rc"'nrrD"'bC"'.--.Krrc~.2"v"l"'3"'2"0,--13"0"'8722710lf01n07'/4'"5,-----ripa,;;g;;;e;;l"9;:;o;;:,;j;,.g----'Tc7re"'a"'te"'a<-s"'y" ... b"IO~e"'de"'1-PP"nt"'lt"'ed"':~1MI7/2"1")"'20'HJ~3-,1"'2"'.4!1"0rr:3,.;zrip'11j9lrl 1>p5cr1 ··:,;11,1 . ; " §~~5,~ lh--~g~ ,If .. ,~ ... ,,..., ~ n z '',_ pa~ ;;::; ev~n 'i ... f,t'-.~ ...., -: ~ :• p~ ~ " . ' ..,... ,; '1 ;; ' n ~ -;: ~ ~ r:: N: 0~ ,, :{ ........ 11: :o ~ ~ ., i"-,; ~ I, ' "-: , i:::. ~ : :· ":! , I~ ,. ,\ :,, ;; I :;, ;!: " ~ V1 ~1,:J~;~ ~ J .i ~. :,. ~ fT1 :1~:i!~. ; ;~,~~1 g '~~~~ ~~:,.f~7~ ~ 1~-., .. , ;,;: ,' .~ ~ .. ~ n I : ;it ~ ---, J: ' :~ ~ ., rr, 'I I IC j • : ! : i: s g ~ ~ ! :~ ~ '.; :l I i~" ~ ~ I i~ ~ i~ t :~ 7 ~ ~ i ~~ ~ "" . H o ~~ t : ~ ; ~!g~ ~ ~ ': 5 ~ ~ ' ~ "' 0 Q m ~·.' ' /~\. I·. . ,' ""y~-p-----/~--II u, :5;:!.·, . ..... ' ~-·... ', \ 1!1 z 0 '-< ~ V, l jl 'U ~ " liz _._:- ~ ...., .. · 13 ;: ·c J 0 c:1:p ' i !II I: : : } -z ~u 0 1ill :~53 ,, o C ~8 1~ 0 a ~ I \ .. I L~~~\---~-~--.. --- ~~.3~·~ ?Ri .. ~ ~u.c. ~ ,:i,2-, ,,,, ,~i:i, ~ l ~~c~d·&~i ~z 0 mI ,;:H li: il~p ' " ~ , 0 '-._ 12/JTH AV£, SC ,~a~:011P) 'c/ E~ ( \._~; _,___ '----·= -----.;:tt::i:;r -~--... ,. .. --- ::li '" ,a i. "'" iti! I~~ 0~1 -.,;i; I:'>; ' -0 :.i·f'.1': ~ \ Yl ~·--. --·: ~::.:~~ -- 1 :~i~r < : ;; , el~ ~ ~ ;i:,. ~ ~ "ci.:'.,, 15. : ! _.·:-::::_ ,:'.'.-:'.-,r--___ j a, !'1·~ :,. ~-~ ", :,.;, "T'\ ~i OJ -~-1~ ,, z '"I"' ~§ 3E ~ ii~I! ·"""!a g~~i '" ~h. i J }-1:n~ ~Hi ' "' i:;. ::::·~ !Bf;. . ' .. , C ·~ ~ " .. I' ··'·-~ RECORD OF SURVEY FOR -, l !l li 'I! BILL V ANENGLENBURG ~ ; -.. ,,•:~ [j~ SE114, SWl/4. S33-T2JN-RSE,WM /, ,..: ·+., .r. Kr>l'G er -,. W1\SHJNGTON HOLMV!G, DEWTIT& ASSOCIATES, INC. LAND SURVEYING/ PLANhTh'O I P-NGINl!F.RIN"G SUPPORT t0l6COU!S"rr ·UMCl.AW, WA0102' ("GO) r,, ~~6'.S(ili =--il'' ~ 0 0 ~ 0 " -... .<) 0 C D C u; 9,, 0 ~ " " "' ,:;_, After Recording Return to: Harbour Homes, LLC c/o Geonerco Management, LLC Attn: John Baringer 1441 Nortb 34th Street, Suite 200 Seattle, WA 98103 DOCUMENT TITLE:DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE PLAT OF KELSEY'S CROSSING GRANTOR: HARBOUR HOMES, LLC GRANTEE: KELSEY'S CROSSING HOMEOWNERS ASSOCIATION AND THE PUBLIC LEGAL DESCRIPTION: Parcel A TRACT 8, NORTHWESTERN GARDEN TRACTS, DIVISION NO. 5, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUlv!E 47 OF PLATS, PAGE 90, IN KING COUNTY, WASHINGTON. EXCEPT THE EAST 65 FEET OF THE WEST 141 FEET OF THE SOUTH 155 FEET THEREOF. AND EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF KENT BY DEED RECORDED UNDER RECORDING NO. 20130729000867. PARCELS THE EAST 65 FEET OF THE WEST 141 FEET OF THE SOUTH 155 FEET THEREOF. AND EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF KENT BY DEED RECORDED UNDER RECORDING NO. 20130729000867. PARCEL NUMBERS: 6199000160 & 6199000161 REC~FT\I~: D M./\R IO 20:4 C!TY Of RENTON PlANNrNG DIVISION After Recording Return to: Harbour Homes, LLC c/o Geonerco Management, LLC Attn: John Baringer 1441 North 34th Street, Suite 200 Seattle, WA 98103 DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR THE PLAT OF KELSEY'S CROSSING - 2 DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR THE PLAT OF KELSEY'S CROSSING THIS DECLARATION is made on the date set forth below by Harbour Homes, LLC, a Washington limited liability company ("Declarant"). RECITALS A. Declarant is the owner of that certain real property located in the County of King, Washington, and more particularly described in Article 2 of this Declaration. B. Declarant desires to subject the real property described in Article 2 hereof to the provisions of this Declaration to create a residential community of single-family housing (as "single family" is defined below) and related uses as set forth in Section 6.2 hereof. NOW, THEREFORE, Declarant hereby declares that the real property described in Article 2 of this Declaration, including the improvements constructed or to be constructed thereon, is hereby subjected to the provisions of this Declaration and shall be held, sold, transferred, conveyed, used, occupied, and mortgaged or otherwise encumbered subject to the covenants, conditions, restrictions, easements, assessments, and liens, hereinafter set forth, which are for the purpose of protecting the value and desirability of, and which shall run with the title to, the real property hereby or hereafter made subject hereto, and shall be binding on all persons having any right, title, or interest in all or any portion of the real property now or hereafter made subject hereto, their respective heirs, legal representatives, successors, successors-in-title, and assigns and shall inure to the benefit of each and every owner of all or any portion thereof. ARTICLE 1 DEFINITIONS 1.1 Words Defined. The following words, when used in this Declaration or in any Supplementary Declaration (unless the context shall prohibit), shall have the following meanmgs: 1.1.1 "Association" shall mean Kelsey's Crossing Homeowners Association, a Washington nonprofit corporation, its successors and assigns. 1.1.2 "Board of Directors" or "Board" of the Association shall be the appointed or elected body, as applicable, having its normal meaning under Washington law. 3 1.1.3 "Bylaws'' shall refer to the Bylaws of the Kelsey's Crossing Homeowners Association. 1.1.4 "Common Areas" shall mean any and all real and personal property and easements and other interests therein, together with the facilities and improvements located thereon as designated on the final plat of the Community or as otherv,;ise conveyed to the Association for the common use and enjoyment of the Owners. 1.1.5 "Community" shall mean and refer to that certain real property and interest therein described in Article 2, and such additions thereto as may be made by Declarant by Supplementary Declaration. 1.1.6 "Community-Wide Standard" shall mean the standard of conduct, maintenance, or other activity generally prevailing in the Community. Such standard may be more specifically determined by the Board of Directors. Such determination, however, shall generally be made with reference to the standards originally established by the Declarant. 1.1. 7 "Declarant" shall mean and refer to Harbour Homes, LLC and its successors-in-title and assigns, provided any such successor-in-title or assign shall acquire for the purpose of development or sale all or any portion of the remaining undeveloped or unsold portions of the real property described in Article 2, and provided further, in the instrument of conveyance to any such successor-in-title or assign, such successor-in-title or assign is designated as the "Declarant" hereunder by the grantor of such conveyance, which 6,rantor shall be the "Declarant" hereunder at the time of such conveyance; provided, further, upon such designation of such successor Declarant, all rights of the former Declarant in and to such status as "Declarant" hereunder shall cease, it being understood that as to all of the property described in Article 2, which is now subjected to this Declaration, there shall be only one "Declarant" hereunder at any one point in time. 1.1.8 "Development Period" shall mean that period of time beginning on the date this Declaration is recorded in the records of King County and ending on the earliest to occur of (i) ten (I 0) years from the date of recording of this Declaration; or (ii) the date Declarant holds a special meeting of the Association, in accordance with the Bylaws, for the purpose of transitioning the management of the Association from the Declarant to the Owners. 1.1. 9 "Governing Documents" shall mean and refer to this Declaration, the Articles ofincorporation (if any) and Bylaws of the Association. and rules and regulations (if any) of the Community adopted by the Board, as any of the foregoing may be amended from time to time. I. I. IO "Lot" shall mean any plot ofland within the Community, whether or not improvements are constructed thereon, which constitutes or will constitute, atter the construction of improvements, a residential dwelling site as shown on a plat recorded in the records of King County. 4 1.1.11 "Mortgage" means any mortgage, deed of trust, and any and all other similar instruments used for the purpose of encumbering real property in the Community as security for the payment or satisfaction of an obligation. 1.1.12 "Mortgagee" shall mean the holder of a Mortgage. 1.1.13 "Occupant" shall mean any Person occupying all or any portion of a residence or other property located within the Community for any period of time, regardless of whether such Person is a tenant or the Owner of such property. 1.1.14 "Owner" shall mean and refer to the record owner, whether one or more Persons, of the fee simple title to any Lot located within the Community, excluding, however, any Person holding such interest merely as security for the payment or satisfaction of an obligation. 1.1.15 "Person" means any natural person, as well as a corporation, joint venture, partnership (general or limited), association, trust, or other legal entity. 1.1.16 "Single Family" shall mean a single housekeeping unit, without regard to the construction type or ownership of such unit, that includes not more than four ( 4) adults who are legally umelated. 1.1.17 "Supplemental Declaration" means an amendment or supplement to this Declaration which subjects additional property to this Declaration or that imposes, expressly or by reference, additional or modified restrictions and obligations on the land described therein. 1.1.18 "Total Association Vote" means all of the votes attributable to members of the Association (including votes of Declarant). ARTICLE 2 PROPERTY SUBJECT TO THIS DECLARATION The real property which is, by the recording of this Declaration, subject to the covenants and restrictions hereafter set forth and which, by virtue of the recording of this Declaration, shall be held, transferred, sold, conveyed, used, occupied, and mortgaged or otherwise encumbered subject to this Declaration is the real property described as: LOTS 1 THROUGH 13, INCLUSIVE, OF KELSEY'S CROSSING ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME OF PLATS AT PAGES AND_ RECORDS OF KING COUNTY, WASHINGTON RECORDED UNDER RECORDING NUMBER _________ _ SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON 5 Private Tracts: Tract A is a private access tract for ingress, egress and utilities for the benefit of Lots 8 through 13. The owners of Lots 8 through 13 are responsible for the maintenance of the tract. Common Areas: Tract B is a storm water, landscape and recreational tract and shall be owned and maintained by the Association. The City of Renton has an easement for access, maintenance and operation of the drainage facility within Tract B. ARTICLE 3 KELSEY'S CROSSING HOMEOWNERS ASSOCIATION 3.1 Description of Association. The Association may, at the election of the Declarant or the Association, be incorporated as a non-profit corporation organized and existing under the laws of the State of Washington. The Association shall be charged with the duties and vested with the powers prescribed by law and set forth in the Governing Documents; provided, however, that no such Governing Documents, other than the Declaration, shall for any reason be amended or otherwise interpreted so as to be inconsistent with this Declaration. 3.2 Board of Directors. Declarant shall have the right to appoint or remove any member or members of the Board of Directors or any officer or officers of the Association until termination of the Development Period. Each Owner, by acceptance of a deed to or other conveyance of a Lot, vests in Declarant the authority to appoint and remove directors and officers of the Association during the Development Period. The directors selected by the Declarant need not be Owners. The number of directors shall be as set forth in the Bylaws. Following termination of the Development Period, the Board of Directors shall be elected by the Owners in accordance with the Bylaws. 3.3 Membership. Every Owner of a fee interest in any Lot that is subject to this Declaration shall be deemed to have a membership in the Association and membership in the Association shall consist exclusively of such owners. The foregoing is not intended to include Persons who hold an interest merely as security for the performance of an obligation, and the giving of a security interest shall not terminate the Owner's membership. No Owner, whether one or more Persons, shall have more than one (I) membership per Lot. Membership shall be appurtenant to and may not be separated from ownership of any Lot. The rights and privileges of membership, including the right to vote and to hold office, may be exercised by a member or the member's spouse, but in no event shall more than one (1) vote be cast nor office held for each Lot owned. 3.4 Voting. Members shall be entitled to one (]) vote for each Lot O\\Tied. When more than one (1) Person holds an ownership interest in any Lot, the vote for such Lot shall be exercised as those Owners themselves determine and advise the Secretary prior to any meeting. In the absence of such advice, the Lot's vote shall be suspended in the event more than one ( 1) Person seeks to exercise it. 6 3.5 Architectural Control Committee. No construction, alteration, addition, refurbishing, or erection of any structure or any nature whatsoever shall be commenced or placed upon any part of the Community, except that which is installed by the Declarant, or is approved in accordance with this Section, or as is otherwise expressly permitted herein. Any such construction, alteration, addition, refurbishing, or erection shall not be made unless and until plans and specifications showing the nature, kind, shape, size and height, architectural design and detail, materials, workmanship, colors, location on site, improvement and site grade elevations, and site landscaping shall have been submitted in writing to and approved by the Architectural Control Committee (the "ACC") established pursuant to this Section 3.5. The Board may employ architects, engineers, or other Persons as it deems necessary to enable the ACC to perform its review. Written design guidelines and procedures ("Design Guidelines") may be established by the Board for the exercise of this review, which Design Guidelines may provide for a review fee. Copies of the Design Guidelines shall be available to all Owners upon request for a reasonable fee. 3.5.1 The ACC shall consist of not less than one(]) nor more than five (5) members, who need not be Owners. So long as the Declarant owns any property for development and/or sale in the Community, the Declarant shall have the right to appoint or remove any or all members of the ACC. Upon the expiration or earlier surrender in WTiting of such right, the Board shall appoint the members of the ACC, however the ACC shall include two members of the Board. 3.5.2 Members of the ACC shall not be entitled to compensation for services performed pursuant to this Section 3.5. The Association shall defend, indemnify, and hold each members of the ACC harmless for any liability incurred while serving as a member of the ACC. 3.5.3 The ACC shall be the sole arbiter of plans submitted to it and may withhold approval for any reason, including aesthetic considerations, and it shall be entitled to stop any construction in violation of approved plans or this Declaration. 3.5.4 PLANS AND SPECIFICATIONS ARE NOT APPROVED FOR ENGINEERING OR STRUCTURAL DESIGN OR QUALITY OF MATERJALS AND BY APPROVING SUCH PLANS AND SPECIFICATIONS NEITHER THE ACC, THE MEMBERS THEREOF, NOR THE ASSOCIATION ASSUMES LIABILITY OR RESPONSIBILITY THEREFOR, NOR FOR ANY DEFECT IN ANY STRUCTURE CONSTRUCTED FROM SUCH PLANS AND SPECIFICATIONS. NEITHER DECLARANT, THE ASSOCIATION, THE ACC, THE BOARD, NOR THE OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES, AND AGENTS OF ANY OF THEM SHALL BE LIABLE IN DAMAGES TO ANYONE SUBMITTING PLANS AND SPECIFICATIONS TO ANY OF THEM FOR APPROVAL, OR TO ANY OWNER OF PROPERTY AFFECTED BY THESE RESTRJCTIONS BY REASON OF MISTAKE IN JUDGMENT, NEGLIGENCE, OR NONFEASANCE ARISING OUT OF OR IN CONNECTION WITH THE APPROVAL OR DISAPPROVAL ORF AIL URE TO APPROVE OR DISAPPROVE ANY SUCH PLANS OR SPECIFICATIONS. EVERY PERSON WHO SUBMITS PLANS OR SPECIFICATIONS AND EVERY OWNER AGREES THAT SUCH PERSON OR 7 OWNER WILL NOT BRll\G ANY ACTION OR SUIT AGAINST DECLARANT, THE ASSOCIATION, THE ACC, THE BOARD, OR THE OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES, AND AGENTS OF ANY OF THEM TO RECOVER ANY DAMAGES AND HEREBY RELEASES, REMISES, QUITCLAIMS, AND COVENANTS NOT TO SUE FOR ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION ARISING OUT OF OR IN CONNECTION WITH ANY JUDGMENT, NEGLIGENCE, OR NONFEASANCE AND HEREBY WAIVES THE PROVISIONS OF ANY LAW WHICH PROVIDES THAT A GENERAL RELEASE DOES NOT EXTEND THE CLAIMS, DEMANDS, AND CAUSES OF ACTION NOT KNOWN AT THE TIME THE RELEASE IS GIVEN. 3.6 Bylaws, Rules and Regulations. The Board on behalf of the Association shall have the power to adopt, modify, and amend bylaws, rules and regulations governing the Community, provided that such bylaws, rules and regulations shall not be inconsistent with this Declaration and shall apply uniformly to all Owners, except as specifically provided herein. The Board shall have the power to enforce the rules and regulations on behalf of the Association and may prescribe penalties or fines for their violation. Any such bylaws, rules and regulations shall become effective thirty (30) days after promulgation and shall be mailed to all Owners prior to their effective date. A copy of the bylaws, rules and regulations then in force shall be retained by the secretary of the Association. The Declarant on behalf of the Board may adopt the initial bylaws, rules and regulations. ARTICLE 4 ASSESSMENTS 4.1 Purpose of Assessment. The assessments provided for herein shall be used for the general purposes of promoting the recreation, health, safety, welfare, common benefit, and enjoyment of the Owners and occupants of Lots, including the maintenance of real and personal property, all as may be more specifically authorized from time to time by the Board of Directors. 4.2 Creation of the Lien and Personal Obligation for Assessments. Each Owner of any Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay to the Association: (i) annual assessments or charges; (ii) special assessments, such assessments to be established and collected as hereinafter provided; and (iii) specific assessments established pursuant to the terms of this Declaration, including, but not limited to, reasonable fines imposed in accordance with the terms of this Declaration. 4.2.1 All such assessments, together with (i) late charges, (ii) interest set by the Board, not to exceed the maximum rate permitted by law (but not to exceed eighteen percent (18%) per annum), and (iii) costs, including, without limitation, reasonable attorneys' fees actually incurred, shall be a charge on the land and shall be a continuing lien upon the Lot against which each assessment is made. 8 4.2.2 Each such assessment, together with late charges, interest, costs, including, without limitation, reasonable attorneys' fees actually incurred, shall also be the personal obligation of the person who was the Ovmer of such Lot at the time the assessment fell due. Each Owner shall be personally liable for the portion of each assessment coming due while the Owner of a Lot, and each grantee of an Owner shall be jointly and severally liable for such portion thereof as may be due and payable at the time of conveyance; provided, however, the liability of a grantee for the unpaid assessments of its grantor shall not apply to any first Mortgagee taking title through foreclosure proceedings or deed in lieu of foreclosure. 4.2.3 The Association shall, within five (5) days after receiving a written request therefor and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. Such certificate shall be binding upon the Association as of the date of issuance. 4.2.4 Annual assessments shall be levied equally on all Lots. Assessments shall be paid in such manner and on such dates as may be fixed by the Board. Unless otherwise provided by the Board, the assessment shall be paid in annual installments. 4.3 Adoption of Budget. It shall be the duty of the Board to prepare and adopt a budget covering the estimated costs of operating the Association during the coming year and the assessments to be levied against each Lot, which may include an amount for capital reserves in accordance with a capital budget separately prepared. The Board shall cause a summary of the proposed operating and capital budgets and the proposed assessments against each Lot for the following year to be mailed to each Owner. The Board shall set a date for a special meeting of the Owners to consider ratification of the budget within thirty (30) days after adoption by the Board and not less that fourteen (14) nor more than sixty (60) days after the mailing of the proposed budgets and assessments. Unless at such meeting the budget is rejected by at least seventy-five percent (75%) of the Total Association Vote, in person or by proxy, the budget shall be ratified, whether or not a quorum is present. In the event the proposed budget is rejected or the required notice is not given, the budget in effect for the then current year shall continue in effect until the Owners ratify a subsequent budget. 4.4 Revised Budget. If the financial circumstances or needs of the Association materially change during any year, the Board may prepare and adopt a revised budget and assessments for the balance of the year. The Board shall cause a summary of the proposed revised budget and assessments to be mailed to each Owner and shall set a date for a meeting of the Owners to consider ratification of the revised budget and assessments in the same manner as the regular annual budget as set forth in Section 4.3 above. 4.5 Special Assessments. In addition to the other assessments authorized herein, the Association may levy special assessments for expenses such as, but not limited to, capital improvements from time to time if approved at a meeting by two-thirds (2/3) of the Total Association Vote. Special assessments shall be paid as determined by the Board, and the Board may permit special assessments to be paid in installments extending beyond the fiscal year in which the special assessment is imposed. 9 4.6 Lien for Assessments. All sums assessed against any Lot pursuant to this Declaration, together with late charges, interest, costs, including, without limitation, reasonable attorneys' fees actually incurred, as provided herein, shall be secured by a lien on such Lot in favor of the Association. Such lien shall be superior to all other liens and encumbrances on such Lot, except for (a) liens for ad valorem taxes; or (b) liens for all sums unpaid on a first Mortgage or on any Mortgage to Declarant duly recorded in the records of King County and all amounts advanced pursuant to such Mortgage and secured thereby in accordance with the terms of such instrument. All other Persons acquiring liens or encumbrances on any Lot after the recording of this Declaration shall be deemed to consent that such liens or encumbrances shall be inferior to future liens for assessments, as provided herein, whether or not prior consent is specifically set forth in the instruments creating such liens or encumbrances. 4. 7 Effect of Nonpayment of Assessments; Remedies of the Association. Any assessment or installment thereof delinquent for a period of more than ten (10) days shall incur a late charge in an amount as the Board may from time to time determine. The Association shall cause a notice of delinquency to be given to any member who has not paid within ten (10) days following the due date. If the assessment is not paid within thirty (30) days, a lien, as herein provided, shall attach and, in addition, the lien shall include interest set by the Board from time to time, on the principal amount due, late charges, costs of collection, including, without limitation, reasonable attorneys' fees actually incurred, and any other amounts provided or permitted by law. 4. 7.1 In the event that the assessment remains unpaid after sixty ( 60) days, the Association may, as the Board shall determine, institute suit to collect such amounts and/or to foreclose its lien. Each Owner, by acceptance of a deed or as a party to any other type of conveyance, vests in the Association or its agents the right and power to bring all actions against such Owner personally, for the collection of such charges as a debt or to foreclose the aforesaid lien in the same manner as other liens for the improvement of real property. 4.7.2 The lien provided for in this Article shall be in favor of the Association and shall be for the benefit of all other Owners. The Association, acting on behalf of the Owners, shall have the power to bid on the Lot at any foreclosure sale or to acquire, hold, lease, mortgage, or convey the same. 4.7.3 No Owner may waive or otherwise exempt himself from liability for the assessments provided for herein, including, by way of illustration, but not limitation, abandonment of the Lot. 4.7.4 All payments shall be applied first to costs, then to late charges, then to interest and then to delinquent assessments. 4.8 Suspension for Nonpayment of Assessment. If an Owner shall be in arrears in the payment of any assessment due, or shall otherwise be in default of the performance of 10 any terms of the Governing Documents of the Association for a period of thirty (30) days, said Owner's voting rights shall, without the necessity of any further action by the Association, be suspended (except as against foreclosing secured parties) and shall remain suspended until all payments, including interest thereon, are brought current and any other default is remedied. No Owner is relieved of liability for assessments by non-use of the Common Areas or by abandonment of a Lot. 4.9 Date of Commencement of Assessments. The assessments provided for herein shall commence as to a Lot subject to this Declaration on the first day of the month following conveyance of such Lot to a Person other than Declarant. 4.10 Specific Assessments. In addition to the general and special assessments outlined above, the Board shall have the power to levy such specific assessments pursuant to this Section 4.10 as, in its discretion, it shall deem appropriate. All other terms and conditions of this Article 4 relating to general and special assessments shall apply to the levy and collection of the specific assessments covered hereby and the Association shall have all powers and remedies for collection and enforcement of such assessments as are applicable to the general and special assessments set forth above. Fines levied pursuant to Section 11.1 of this Declaration and the costs of maintenance performed by the Association for which the Owner is responsible under Sections 5.3 and 5.4 of this Declaration shall be specific assessments. 4.11 Common Areas Exempt. The Common Areas shall be exempt from assessments by the Association. 4.12 Capitalization of Association. NI A. ARTICLE 5 MAINTENANCE; CONVEYANCE OF COMMON AREAS TO ASSOCIATION 5.1 Association's Responsibility. The Association shall maintain and keep in good repair the Common Areas described in Article 2 herein and any Common Areas acquired by the Association in the future. If the streetlights are installed and there is no procedure for billing individual lot owners then the Association shall pay the bills for the streetlights. The Association shall also maintain all other facilities serving the Community not dedicated to or maintained by a public entity. The foregoing maintenance shall be performed consistent with the Community-Wide Standard. 5.2 Property Not Owned by Association. The Association shall have the right, but not the obligation, to maintain other property, whether or not owned by the Association and whether within or without the Community, where the Board has determined that such maintenance would benefit all Owners. Tract A is a Private Access Tract owned and maintained by the Owners of Lots 8 through 13. In the event Tract A is not maintained by such Lot Owners, the Association shall have the right, but not the obligation, to maintain Tract A at such Lot Owners expense pursuant to the procedure in Section 5.4 below Without 11 limitation of the foregoing, the Association may enter into a joint maintenance agreement with adjoining property owners or associations for the repair, maintenance and replacement of any shared facilities or other property. 5.3 Damage Caused by Owner. In the event that the Association determines that the need for maintenance, repair, or replacement, which is the responsibility of the Association hereunder, is caused through the willful or negligent act of an Owner, or the family, guests, lessees, or invitees of any Owner, the Association may perform such maintenance, repair or replacement at such Owner's sole cost and expense, and all costs thereof shall be added to and become a part of the assessment to which such Owner is subject and shall become a lien against the Lot of such Owner. 5.4 Owner's Responsibility. Except as provided in Sections 5.1, 5.2 and 5.3 above, all maintenance of any Lot and all structures, parking areas, landscaping, and other improvements thereon together with the landscaping and trees on any parking strip fronting any such Lot, shall be the sole responsibility of the Owner thereof, who shall provide maintenance consistent with the Community-Wide Standard and this Declaration. The perimeter fencing, if any, shall be maintained and repaired, in uniform appearance, by the abutting lot owners. In the event that the Board of Directors of the Association determines that any Owner has failed or refused to discharge properly any of such Owner's obligations with regard to the maintenance, repair, or replacement of items for which such Owner is responsible hereunder, the Association shall, except in an emergency situation, give the Owner written notice of the Association's intent to provide such necessary maintenance, repair, or replacement at the Owner's sole cost and expense. The notice shall set forth with reasonable particularity the maintenance, repairs, or replacement deemed necessary. The Owner shall have ten (10) days after receipt of such notice within which to complete such maintenance, repair, or replacement, or, in the event that such maintenance, repair, or replacement is not capable of completion within a ten (10) day period, to commence such work which shall be completed within a reasonable time. If any Owner does not comply with the provisions hereof, the Association may provide any such maintenance, repair, or replacement at such Owner's sole cost and expense, and all costs shall be added to and become a part of the assessment to which such Owner is subject and shall become a lien against the Lot. 5.5 Conveyance of Common Areas by Declarant to Association. During the Development Period, the Declarant may transfer or convey the Common Areas to the Association, including any personal property and any improved or unimproved real property, leasehold, easement, or other property interest. Such conveyance shall be accepted by the Association, and the property shall thereafter be Common Areas to be maintained by the Association. The Common Areas are subject to an easement of common use and enjoyment in favor of the Association and every Owner, their heirs, successors and assigns in accordance with the terms and conditions of the Governing Documents. Such rights to use the Common Areas are appurtenant to and shall not be separated from ownership of any Lot and shall not be assigned or conveyed by any Lot Owner in any way except upon the transfer of title to such Lot, and then only to the transferee of such title and shall be deemed so conveyed whether or not it shall be so expressed in the deed or other instrument conveying title. Certain rights of 12 use, ingress, egress, occupation, and management authority in the Common Areas set forth elsewhere in this Declaration shall be reserved to Declarant for the duration of the Development Period. Declarant shall not be required to make any improvements whatsoever to property to be conveyed and accepted pursuant to this Section. 5.6 Further Restrictions on Common Areas. If any Common Area is currently owned or is acquired in the future which is designated as a steep slope, as a wetland, as a buffer, as a native growth protection area or as any other type of sensitive area, then use of such Common Area shall be limited to activities approved by the municipality which designated such Common Area as sensitive. Notwithstanding the provisions in this Article 5, or in Section 10.1 below, or in any other provision of this Declaration, there shall be no right or easement of ingress and egress, use and enjoyment in or to such Common Area. Access shall be limited to maintenance activities approved by the municipality. ARTJCLE6 USE RESTRICTIONS AND RULES 6.1 General/Rules and Regulations. This Article, beginning at Section 6.2, sets out certain use restrictions which must be complied with by all Owners and Occupants. These use restrictions may only be amended in the manner provided in Section 11.3 hereof regarding amendment of this Declaration. In addition, the Board may, from time to time, without consent of the Owners, promulgate, modify, or delete other use restrictions and rules and regulations applicable to the Community. Such use restrictions and rules shall be distributed to all Owners and Occupants prior to the date that they are to become effective and shall thereafter be binding upon all Owners and Occupants until and unless overruled, canceled, or modified in a regular or special meeting by a majority of the Total Association Vote and the consent of Declarant during the Development Period. 6.2 Residential Use. Except as provided in this Section, all Lots shall be used for single-family residential purposes exclusively with the exception that certain home occupations may be permitted, subject to the guidelines and rules established by the Board, if any, and subject to approval by the Board. Such home occupations may be limited to certain business uses, shall not create any disturbance, noise, or unsightliness, shall not unduly increase traffic flow or parking congestion, and shall not be in violation of any of the provisions of the Governing Documents. Use of the Lots shall in all cases be in compliance with all applicable laws, ordinances, rules and regulations. 6.3 Building and Landscaping Requirements and Restrictions. Except as provided in Section 6.4 below, all residences constructed within the Community by any Person shall be subject to design review and approval by the ACC which may cover the minimum size, architectural style, height, scope of improvements, quality of design, materials, workmanship, and siting standards. Without restricting or limiting the authority of the ACC pursuant to Section 3 .5 in approving or disapproving of any specific proposal, the following restrictions shall apply to the Community in general: 13 6.3 .1 Only one Single Family home shall be pennitted on each Lot. Two story or split level homes shall include no less than 1,600 gross square feet of living space, exclusive of one-story open porches and garages. One story homes shall include no less than 1,400 gross square feet of living space, exclusive of one-story open porches and garages. 6.3 .2 After Declarant has completed construction of all houses in the Community, any remodeling or exterior addition to any residence or other structure erected or placed on any Lot shall be completed as to external appearance, including finished painting, within six ( 6) months after the date of commencement of construction. All front, side and rear yard landscaping must be completed within six (6) months from the date of closing of the purchase of the residence by the Owner from the Declarant. In the event that strict enforcement of this provision would cause undue hardship due to weather conditions, this provision may be extended for a reasonable length of time when approved by the ACC. 6.3 .3 All homes within the Community shall contain a garage; carports shall not be pennitted. Unless otherwise approved by the ACC, all garages must be attached to, or incorporated in and made a part of, the residence constructed upon a Lot. In granting waivers to this requirement, the ACC will consider functional necessity and architectural desirability. 6.3.4 All driveways and parking areas shall be paved with material approved by the ACC. 6.3.5 No fence, fencing-type barrier, or hedge of any kind in excess of six (6) feet high or extending into the front yard of any residence shall be erected, allowed or maintained upon any Lot, without the prior written consent of the ACC. All fences shall be constructed of wood material unless approved by the ACC. Any such fence, barrier, row of trees, or hedge shall be strictly in compliance with Design Guidelines, if any, established by the ACC, which standards may provide for limited acceptable styles and/or specifications. 6.3 .6 Each home constructed on a Lot shall be built of new materials except, with approval of the ACC, decorative items such as used brick, weathered planking, and similar items. All visible masonry shall be native stone, brick or stucco. Types and colors of exterior paint and stain must be submitted to the committee for approval. Any change to the exterior color of any improvement located on a Lot, including, without limitation, the dwelling, must be approved by the ACC. 6.3. 7 All roofs on dwellings and garages shall be of composite, tile or cedar shake and shall have a minimum pitch of four/twelve. 6.3.8 No owner shall grade, fill or otherwise alter the slope or contour of any Lot, construct or alter the drainage patterns initially installed and constructed by Declarant or a Residential Developer, or as established by the grading and natural course of surface and subsurface water run-off without first obtaining i) recommendations from a soils engineer or civil engineer, as appropriate, duly licensed by the State of Washington, ii) any and all necessary governmental approvals and pennits and iii) w-ritten approval of the ACC, if any. No Owner shall perfonn any such work except in confonnance with the recommendations, 14 plans and specifications of such engineer. 6.4 Existing Residence. Intentionally omitted. 6.5 Signs. No sign of any kind shall be erected by an Owner or Occupant within the Community without the prior written consent of the ACC. Notwithstanding the foregoing, the Board and the Declarant shall have the right to erect reasonable and appropriate signs including, without limitation, signs related to Declarant's development and marketing of residences within the Community. In addition, "For Sale" signs and security signs consistent with the Community-Wide Standard and any signs required by legal proceedings may be erected upon any Lot. 6.6 Vehicles. The term "vehicles" as used herein shall include, without limitation, automobiles, vans, campers, trucks, buses, motor homes, mobile homes, boats, jet skis, trailers, portable aircraft, motorcycles, snowmobiles, mini-bikes, scooters, go-carts, dune buggies and any other towed or self propelled transportation type vehicle. The term "passenger vehicles" as used herein shall include passenger automobiles, vans, small trucks, motorcycles, and similar type vehicles used regularly and primarily as transportation for the Occupants of the Lot. Vehicles used for commercial and recreational purposes are not considered passenger vehicles. "Parking areas" shall refer to the number of garage parking spaces and driveway areas in front of garages. However, driveway areas shall be considered "parking areas" for passenger vehicles only. 6.6.1 No vehicles other than passenger vehicles in regular use may be parked on any Lot or portion of the Community, except in parking areas on Lots, or in a screened area on a Lot, if such screened area is approved by the ACC. Any vehicle regularly parked in an unapproved area or for longer than twenty-four (24) consecutive hours shall be considered a nuisance and may be removed from the Community. 6.6.2 No passenger vehicles may be parked on any Lot or portion of the Community except in "parking areas" as defined in this Section. 6.6.3 Any passenger vehicle which is inoperable or unlicensed and not capable of use on the public highways and which is parked on any parking area for a period of more than forty-eight ( 48) hours shall be treated the same as a non-passenger vehicle and shall be considered a nuisance and may be removed from the Community. 6.6.4 The Board may adopt and maintain current rules and regulations concerning the parking and storage of vehicles on any Lot or any portion of the Community. Said rules are to protect the Community from the potentially adverse impacts of vehicles on the Community environment and to accommodate the evolving nature and use of such vehicles. Such rules and regulations may provide for exceptions and/or modifications to the conditions of this Section as determined in the sole discretion of the Board. The Board shall rule on any dispute as to the interpretation or application of this Section and all rules and regulations established by the Board with respect to vehicles. 15 6.6.5 Off-street parking for at least three (3) passenger vehicles shall be provided on each Lot. Covered enclosed parking shall be provided for one ( 1) or more passenger vehicles, plus a driveway for at least two (2) additional passenger vehicles, unless approved by the ACC. 6.7 Vehicles on Common Areas. No motorized vehicles shall be permitted on pathways or unpaved Common Areas except vehicles being used for the limited purpose of operating and maintaining utilities. 6.8 Leasing. Lots may be leased for residential purposes. All leases shall have a minimum term of at least six ( 6) months. All leases shall require, without limitation, that the tenant acknowledge receipt of a copy of the Declaration, Bylaws, and rules and regulations of the Association. 6.9 Occupants Bound. All provisions of the Declaration, Bylaws, and of any rules and regulations, which govern the conduct of Owners and which provide for sanctions against Owners shall also apply to all Occupants. Fines may be levied against Owners or Occupants. If a fine is first levied against an Occupant and is not paid timely, the fine may then be levied against the Owner. 6.10 Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept in the Community; provided, however, that conventional household pets may be kept on a Lot subject to the following restrictions: Pets shall not be kept, bred or maintained for any commercial purposes. Owners shall be responsible for the immediate clean up and removal of all fecal matter deposited by pets on any property other than the Lot of the Owner of the pet. Pets shall be confined in the Owner's Lot unless on a leash and accompanied by a responsible person. No domestic pet may be kept if it is a source of annoyance or a nuisance. The Board shall have the authority to determine whether a particular pet is a nuisance or a source of annoyance, and such determination shall be final and conclusive. Pets shall be attended at all times and shall be registered, licensed and inoculated from time to time as required by law. 6.11 Mining Prohibited. No portion of the Community shall be used for the purpose of boring, mining, quarrying, or exploring for or removing oil or other hydrocarbons, minerals, gravel, or earth. 6.12 Nuisance. Each Owner and Occupant shall prevent the development of any unclean, unhealthy, unsightly, or unkempt condition on his or her Lot. No Lot shall be used, in whole or in part, for the storage of any property or thing that will cause such Lot to appear to be in an unclean or untidy condition; nor shall any substance, thing, or material be kept that will emit foul or obnoxious odors or that will cause any noise or other condition that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property. No illegal, illicit, noxious or offensive activity shall be carried on within the Community, nor shall anything be done tending to cause embarrassment, discomfort, annoyance, or nuisance to any Person using any property within the Community. Without limiting the generality of the foregoing, no speaker, horn, whistle, siren, bell, amplifier or other sound device, except such devices as may be used exclusively for security purposes, 16 shall be located, installed or maintained upon the exterior of any Lot unless required by law or unless specifically approved by the ACC. 6.13 Unsightly or Unkempt Conditions. The pursuit of hobbies or other activities, including specifically, without limiting the generality of the foregoing, the assembly of and disassembly of motor vehicles and other mechanical devices, which might tend to cause disorderly, unsightly, or unkempt conditions, shall not be undertaken outside of homes or garages. Garage doors shall be kept closed at all times unless they are in use. In addition, the storage of equipment, machinery, construction supplies or any similar material on a Lot outside of the home and garage constructed thereon is strictly prohibited except as required during the remodeling or refurbishing of improvements on such Lot and then for not more than sixty (60) days. 6.14 Antennas. No outside radio antenna, television antenna, microwave or satellite dish, aerial, or other such device ( collectively "Antennas") with a diameter or diagonal measurement in excess of one meter shall be erected, constructed or placed on any Lot. Reasonable restrictions which comply with Federal, State and local laws and do not significantly increase the cost of the Antenna system or significantly decrease its efficiency or performance may be imposed by the ACC on Antennas with a diameter or diagonal measurement of one meter or less. 6.15 No Obstruction of Easements. Catch basins and drainage areas are for the purpose of natural flow of water only. No obstructions or debris shall be placed in these areas. No Owner or Occupant may obstruct or re-channel the drainage flows after location and installation of drainage swales, storm sewers or storm drains. Declarant hereby reserves for the benefit of Declarant and the Association and their respective successors and assigns a perpetual easement across all Common Areas and Lots for the purpose of maintaining or altering drainage and water flow. No structure, planting, or other material shall be placed or permitted to remain upon any easement which may damage or interfere with the installation and maintenance of any utilities, unless approved by the Board prior to installation. At no time shall any access easements be blocked. 6.16 Sight Distance at Intersections. All property located at street intersections shall be landscaped so as to permit safe sight across the street comers. No fence, wall, hedge or shrub planting shall be placed or permitted to remain where it would create a traffic or sight problem as determined by the ACC in its sole discretion. 6.17 Garbage Cans, Woodpiles, Etc. All garbage cans, woodpiles, air- conditioning compressors, machinery, equipment and other similar items related to the operation of the residence shall be located or screened so as to be concealed from view from the street abutting the Lot on which such items are located. All rubbish, trash, and garbage shall be regularly removed and shall not be allowed to accumulate. Trash, garbage, debris, or other waste matter of any kind may not be burned within the Community. 6.18 Subdivision of Lot. No Lot shall be subdivided or its boundary lines changed except with the prior written approval of the ACC. Declarant, however, hereby expressly 17 reserves the right to re-plat any Lot or Lots owned by Declarant. Any such di vision, boundary line change, or re-platting shall not be in violation of the applicable subdivision and zoning regulations. 6.19 Guns. The use of fireanns in the Community is prohibited. The term "firearms" includes without limitation BB guns, pellet guns, and fireanns of all types. 6.20 Utilities. Except as may be permitted by the ACC, no overhead utility lines, including lines for cable television, shall be permitted within the Community, except for temporary lines as required during construction and except as such lines exist upon recording of the plat of the Community or as required by utilities serving the Community. 6.21 Lighting. No colored lights (except holiday displays and yellow insect type lights) shall be permitted at any location within the Community. All exterior fixtures that are attached to the home shall be of compatible design and materials of the home. Any post mounted exterior fixtures shall be of compatible design and materials as the fixtures attached to the home. No fixtures which illuminate and excessively glare onto any other Lot shall be permitted, and all exterior lights shall be screened to minimize impacts oflight and glare. No unshielded spot/floodlight fixtures are permitted. 6.22 Artificial Vegetation, Exterior Sculpture, and Similar Items. No artificial vegetation, exterior sculpture, fountains, and similar items shall be permitted in the front yard of any Lot unless approved by the ACC. 6.23 Mailboxes. All mailboxes located on Lots shall be of a style approved by the ACC. Mailboxes shall be attached only to stands provided and maintained by the Association in designated locations. 6.24 Clotheslines. No exterior clotheslines of any type shall be permitted upon any Lot unless entirely screened from view from other Lots. 6.25 Exterior Security Devices. No exterior security devices, including, without limitation, window bars, shall be permitted on any residence or Lot. Signs placed on the Lot or the exterior of the residence stating that such residence is protected by a security system are permissible. 6.26 Construction and Sale Period. So long as Declarant owns any property in the Community for development and/or sale, the restrictions set forth in this Article 6 shall not be applied or interpreted so as to prevent, hinder or interfere with development, construction and sales activities of Declarant or any builder or developer approved by Declarant. 18 ARTICLE? INSURANCE AND CASUALTY LOSSES 7.1 Insurance Coverage. The Board of Directors or the duly authorized agent of the Association shall have the authority to and shall obtain or cause to be obtained insurance as follows: 7. I. I The Board shall obtain insurance on all insurable buildings and, where the Board deems there to be a reasonable risk, other substantial structures whether or not such buildings or structures are located on the Common Areas and which the Association is obligated to maintain. Insurance on buildings shall provide, at minimum, fire and extended coverage, including vandalism and malicious mischief, and shall be in an amount sufficient to cover the full replacement cost of any repair or reconstruction in the event of damage or destruction from any such hazard. Insurance on other substantial structures shall cover those risks deemed advisable by the Board and shall be in such amounts as are deemed advisable by the Board. The Board may insure other types of improvements, including entry monuments, landscaping, and the like, as it deems advisable. With respect to such other improvements, the Board shall determine the risks to be insured and the amounts of insurance to be carried. 7 .1.2 The Board shall obtain a public liability policy applicable to the Common Areas covering the Association and its members for all damage or injury caused by the negligence of the Association or any of its members or agents, and, if reasonably available, directors' and officers' liability insurance. The public liability policy shall have a combined single limit ofat least One Million Dollars ($1,000,000.00) unless otherwise determined by the Board. 7.1.3 The Board is hereby authorized to contract with or otherwise arrange to obtain the insurance coverage required hereunder through the Declarant and to reimburse Declarant for the cost thereof, and Declarant shall be authorized, but not obligated, to purchase such insurance coverage for the benefit of the Association and the Owners upon Declarant and the Association agreeing upon the terms and conditions applicable to reimbursement by the Association for costs incurred by Declarant in obtaining such coverage. Notwithstanding anything contained in this Declaration to the contrary, the Board shall not be required to comply with the provisions of this Article if the Board has contracted for or otherwise arranged to obtain the required insurance coverage through the Declarant. 7.1.4 Premiums for all insurance shall be common expenses of the Association. The policies may contain a reasonable deductible, and the amount thereof shall not be subtracted from the face amount of the policy in determining whether the insurance at least equals the full replacement cost. 7 .1.5 In the event insurance premiums in connection with the insurance required by this Article 7 become prohibitively expensive, in the judgment of the Board, the Board may with approval of seventy-five percent (75%) of the Total Association Vote reduce the amount of the required insurance, self-insure itself, or discontinue the insurance all together. 19 7.2 Policy Requirements. All such insurance coverage obtained by the Board of Directors shall be written in the name of the Association, as trustee for the respective benefited parties. Such insurance shall be governed by the provisions hereinafter set forth: 7.2.1 All policies shall be written with a company authorized to do business in Washington. 7.2.2 Exclusive authority to adjust losses under policies obtained by the Association shall be vested in the Association's Board of Directors; provided, however, no Mortgagee having an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related thereto. 7.2.3 In no event shall the insurance coverage obtained and maintained by the Association's Board of Directors hereunder be brought into contribution with insurance purchased by individual Owners, occupants, or their Mortgagees, and the insurance carried by the Association shall be primary. 7.2.4 All casualty insurance policies shall have an intlation guard endorsement and an agreed amount endorsement if these are reasonably available and all insurance policies shall be reviewed annually by one or more qualified persons, at least one of whom must be in the real estate industry and familiar with construction in the City of Renton. 7.3 Other Insurance. In addition to the other insurance required by this Article 7, the Board shall obtain worker's compensation insurance, if and to the extent necessary to satisfy the requirements of applicable laws. The Board may, in its discretion, obtain a fidelity bond or bonds on directors, officers, employees, and other persons handling or responsible for the Association's funds, if reasonably available. The Association shall obtain additional insurance coverage, if and to the extent necessary to satisfy the requirements of the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the U.S. Department of Veterans Affairs, or the U.S. Department of Housing and Urban Development. 7.4 Individual Insurance. By virtue of taking title to a Lot subject to the terms of this Declaration, each Owner acknowledges that the Association has no obligation to provide any insurance for any portion of individual Lots, and each Owner covenants and agrees with all other Owners and with the Association that each Owner shall at a minimum, carry fire and extended coverage casualty insurance on the Lot and all structures constructed thereon in an amount sufficient to cover the full replacement costs of any repair or reconstruction in the event of damage or destruction from any such hazard. 7.5 Damage and Destruction -Insured by Association. 7.5.1 Immediately after damage or destruction by fire or other casualty to all or any portion of any improvement covered by insurance written in the name of the Association, the Board of Directors or its duly authorized agent shall proceed with the filing and adjustment of 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 20 or reconstruction, as used in this Section, means repairing or restoring the property to substantially the same condition and location that existed prior to the fire or other casualty, allowing for any changes or improvements necessitated by changes in applicable building codes. The Board of Directors shall have the enforcement powers specified in this Declaration necessary to enforce this provision. 7.5.2 Any damage or destruction to property covered by insurance written in the name of the Association shall be repaired or reconstructed unless, within sixty ( 60) days after the casualty, at least seventy-five percent (75%) of the Total Association Vote otherwise agree. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair or reconstruction, or both, are not made available to the Association within such period, then the period shall be extended until such information shall be made available; provided, however, such extension shall not exceed sixty (60) days. No Mortgagee shall have the right to participate in the determination of whether damage or destruction shall be repaired or reconstructed. 7 .5 .3 If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed and such proceeds are not sufficient to defray the cost thereof~ the Board of Directors shall, without the necessity ofa vote of the Association's members, levy a special assessment against all Owners in proportion to the number of Lots owned by such Owners. Additional assessments may be made in like manner at any time during or following the completion of any repair or reconstruction. If the funds available from insurance exceed the costs of repair or reconstruction or if the improvements are not repaired or reconstructed, such excess shall be deposited to the benefit of the Association. 7.5.4 In the event that it should be determined by the Association in the manner described above that the damage or destruction shall not be repaired or reconstructed and no alternative improvements are authorized, then and in that event the property shall be restored to its natural state and maintained as an undeveloped portion of the Community by the Association in a neat and attractive condition. 7.6 Damage and Destruction -Insured by Owners. The damage or destruction by fire or other casualty to all or any portion of any improvement on a Lot shall be repaired by the Owner thereof within seventy-five (75) days after such damage or destruction or, where repairs cannot be completed within seventy-five (75) days, they shall be commenced within such period and shall be completed within a reasonable time thereafter. Alternatively, the Owner may elect to demolish all improvements on the Lot and remove all debris therefrom within seventy-five (75) days after such damage or destruction. In the event of noncompliance with this provision, the Board of Directors shall have all enforcement powers specified herein. 7.7 Insurance Deductible. The deductible for any casualty insurance policy carried by the Association shall, in the event of damage or destruction, be allocated among the Persons who are responsible hereunder, or be a common expense of the Association. 21 ARTICLES CONDEMNATION In the event of a taking by eminent domain of any portion of the Common Areas on which improvements have been constructed, then, unless within sixty (60) days after such taking, at least seventy-five percent (75%) of the Total Association Vote shall otherwise agree, the Association shall restore or replace such improvements so taken on the remaining land included in the Common Areas to the extent lands are available therefor. The provisions of Section 7 .5, above, applicable to Common Areas improvements damage, shall govern replacement or restoration and the actions to be taken in the event that the improvements are not restored or replaced. ARTICLE9 MORTGAGEE PROVISIONS The following provisions are for the benefit of holders of first Mortgages on Lots in the Community. The provisions of this Article apply to both this Declaration and to the Bylaws, notwithstanding any other provisions contained therein. 9.1 Notices of Action. An institutional holder, insurer, or guarantor of a first Mortgage, who provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the Lot number, therefore becoming an "eligible holder"), will be entitled to timely written report as to the current status of said Lot with respect to the following: 9.1.1 Any condemnation loss or any casualty loss which affects a material portion of the Community or which affects any Lot on which there is a first Mortgage held, insured, or guaranteed by such eligible holder; 9.1.2 Any delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to the Mortgage of such eligible holder. 9.2 No Priority. No provision of this Declaration or the Bylaws gives or shall be construed as giving any Owner or other party priority over any rights of the first Mortgagee of any Lot in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Common Areas. 9.3 Notice to Association. Upon request, each Lot Owner shall be obligated to furnish to the Association the name and address of the holder of any Mortgage encumbering such Owner's Lot. 9.4 VA/HUD Approval. As long as the Declarant has the right to appoint and remove the directors of the Association and so long as the project is approved by the U.S. Department of Housing and Urban Development ("HUD") for insuring or the U.S. Department of Veterans Affairs ("VA") for guaranteeing any Mortgage in the 22 Community the follov,,ing actions shall require the prior approval of the VA and/or HUD as applicable: dedication of Common Areas to any public entity; mergers and consolidations; dissolution of the Association, and material amendment of the Declaration, Bylaws or Articles of Incorporation. 9.5 Applicability of Article 9. Nothing contained in this Article shall be construed to reduce the percentage vote that must otherwise be obtained under the Declaration, Bylaws, or Washington law for any of the acts set out in this Article. 9.6 Amendments by Board. Should the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, HUD or VA subsequently delete any of their respective requirements which necessitate the provisions of this Article or make any such requirements less stringent, the Board, without approval of the Owners, may cause an amendment to this Article to be recorded to reflect such changes. ARTICLE 10 EASEMENTS 10.1 Easements for Use and Enjoyment. 10.1.1 Every Owner of a Lot shall have a right and easement of ingress and egress, use and enjoyment in and to the Common Areas which shall be appurtenant to and shall pass with the title to each Lot, subject to the following provisions: 10.1.1.1 the right of the Association to charge reasonable fees for the use of any portion of the Common Areas, to limit the number of guests of Lot Owners and tenants who may use the Common Areas, and to provide for the exclusive use and enjoyment of specific portions thereof at certain designated times by an Owner, his family, tenants, guests, and invitees; 10.1.1.2 the right of the Association to suspend the voting rights of an Owner and the right of an Owner to use certain Common Areas for any period during which any assessment against such Owner's Lot remains unpaid; I 0.1.1.3 the right of the Association to borrow money for the purpose of improving the Common Areas, or any portion thereof, or for construction, repairing or improving any facilities located or to be located thereon, and to give as security for the payment of any such loan a Mortgage conveying all or any portion of the Common Areas; provided, however, the lien and encumbrance of any such Mortgage given by the Association shall be subject and subordinate to any rights, interests, options, easements and privileges herein reserved or established for the benefit of Declarant, or any Lot or Lot Owner, or the holder of any Mortgage, irrespective of when executed, given by Declarant or any Lot Owner encumbering any Lot or other property located within the Community; and 23 10.1.1.4 the right of the Association to dedicate or transfer all or any portion of the Common Areas subject to such conditions as may be agreed to by the members of the Association. No such dedication or transfer shall be effective unless an instrument agreeing to such dedication or transfer has been approved by the affirmative vote of at least seventy-five percent (75%) of the Total Association Vote; provided, however, that during the Development Period, Declarant may, on its sole signature, dedicate or transfer portions of the Common Areas, so long as such transfer or dedication does not materially and adversely affect the Association or any Lot Owner. 10.1.2 Any Lot Owner may delegate such Owner's right of use and enjoyment in and to the Common Areas and facilities located thereon to the members of such Owner's family and to such Owner's tenants and guests and shall be deemed to have made a delegation of all such rights to the Occupants of such Owner's Lot, if leased. 10.2 Easements for Utilities. There is hereby reserved to the Declarant, the Association and any utility providers designated by either the Declarant or the Association blanket easements upon, across, above and under all property within the Community for access, ingress, egress, installation, repairing, replacing, and maintaining all utilities serving the Community or any portion thereof: including, but not limited to, gas, water, sanitary sewer, storm sewer, cable television, telephone and electricity. It shall be expressly permissible for the Declarant, the Association, or the designee of either, as the case may be, to install, repair, replace, and maintain or to authorize the installation, repairing, replacing, and maintaining of such wires, conduits, cables and other equipment related to the providing of any such utility or service. This easement shall be utilized so as to not unreasonably interfere with improvements constructed upon any Lot and the building envelope for any unimproved Lot. Should any party furnishing any such utility or service request a specific license or easement by separate recordable document, the Board shall have the right to grant such easement. I 0.3 Easement for Maintenance. Declarant hereby expressly reserves a perpetual easement for the benefit of the Association across such portions of the Community, determined in the sole discretion of the Association, as are necessary to allow for the maintenance required under Article 5. Such maintenance shall be performed with a minimum of interference to the quiet enjoyment of Owner's property, reasonable steps shall be taken to protect such property, and damage shall be repaired by the Person causing the damage at its so le expense. 10.4 Easement for Entry Features. If Declarant installs an entry feature, there is hereby reserved to the Declarant and the Association an easement for ingress, egress, installation, construction, landscaping and maintenance of entry features and similar street- scapes for the Community, as more fully described on the recorded subdivision plat for the Community or any other recorded instrument, easement or conveyance. The easement and right herein reserved shall include the right to cut, remove and plant trees, shrubbery, flowers and other vegetation around such entry features and the right to grade the land under and around such entry features. 24 10.5 Construction and Sale Period Easement. Notwithstanding any provisions contained in this Declaration, the Bylaws, Articles of Incorporation, rules and regulations, design guidelines, and any amendments thereto, so long as Declarant owns any property in the Community for development and/or sale, Declarant reserves an easement across all Community property for Declarant and any builder or developer approved by Declarant to maintain and carry on, upon such portion of the Community as Declarant may reasonably deem necessary, such facilities and activities as in the sole opinion of Declarant may be required, convenient, or incidental to Declarant's and such builder's or developer's development, construction, and sales activities related to property described above, including, but without limitation: the right of access, ingress and egress for vehicular and pedestrian traffic and construction activities over, under, on or in the Community, including, without limitation, any Lot; the right to tie into any portion of the Community with driveways, parking areas and walkways; the right to tie into and/or otherwise connect and use (without a tap-on or any other fee for so doing), replace, relocate, maintain and repair any device which provides utility or similar services including, without limitation, electrical, telephone, natural gas, water, sewer and drainage lines and facilities constructed or installed in, on, under and/or over the Community; the right to carry on sales and promotional activities in the Community; and the right to construct and operate business offices, signs, construction trailers, model residences, and sales offices. Declarant and any such builder or developer may use residences, offices, or other buildings owned or leased by Declarant or such builder or developer as model residences and sales offices. Rights exercised pursuant to such reserved easement shall be exercised with a minimum of interference to the quiet enjoyment of affected property, reasonable steps shall be taken to protect such property, and damage shall be repaired by the Person causing the damage at its sole expense. During the Development Period, this Section shall not be amended without the Declarant's express VvTitten consent. 10.6 Easement for Maintenance of Retaining Walls. There is hereby reserved to all lot owners within the Community an easement for ingress and egress across the adjoining lots for maintenance of any retaining wall and all structures therein. ARTICLE 11 GENERAL PROVISIONS 11.1 Enforcement. Each Owner and Occupant shall comply strictly with the Association's Bylaws, rules and regulations, the use restrictions, as they may be lawfully amended or modified from time to time, and with the covenants, conditions, and restrictions set forth in this Declaration and in the deed to such Owner's Lot, if any. After notice and an opportunity to be heard by the Board of Directors or by a representative designated by the Board, and in accordance with rules and regulations adopted by the Board, the Board may levy reasonable fines for violations of the above (in addition to any late charges that may be assessed in connection with the late payment of assessments or other Association charges) in accordance with a previously established schedule adopted by the Board and furnished to the Owners, which fines shall be collected as provided herein for the collection of assessments. Failure to comply with this Declaration, the Bylaws or the rules and regulations shall be grounds for an action to recover sums due for damages or injunctive relief, or both, 25 maintainable by the Board of Directors, on behalf of the Association, or, in a proper case, by an aggrieved Ovmer. Failure by the Association or any Owner to enforce any of the foregoing shall in no event be deemed a waiver of the right to do so thereafter. 11.2 Duration. This Declaration shall run with and bind the Community, and shall inure to the benefit of and shall be enforceable by the Association or any Owner, their respective legal representatives, heirs, successors, and assigns, perpetually to the extent provided by law; provided, however, so long as and to the extent that Washington law limits the period during which covenants restricting land to certain uses may run, any provisions of this Declaration affected thereby shall run with and bind the land so long as permitted by such law, after which time, any such provision shall be (a) automatically extended (to the extent allowed by applicable law) for successive periods often (10) years, unless a written instrument reflecting disapproval signed by the then Owners of at least seventy-five percent (75%) of the Lots and the Declarant (so long as the Declarant owns any property for development and/or sale in the Community) has been recorded within the year immediately preceding the beginning of a ten (10) year renewal period agreeing to change such provisions, in whole or in part, or to terminate the same, in which case this Declaration shall be modified or terminated to the extent specified therein; or (b) extended as otherwise provided by law. Every purchaser or grantee of any interest (including, without limitation, a security interest) in any real property subject to this Declaration, by acceptance of a deed or other conveyance therefor, thereby agrees that such provisions of this Declaration may be extended and renewed as provided in this Section. 11.3 Amendments. 11.3 .1 This Declaration may be amended unilaterally at any time and from time to time by Declarant (i) if such amendment is necessary to bring any provision hereof into compliance with any applicable governmental statute, rule, or regulation or judicial determination which shall be in conflict therewith; (ii) if such amendment is necessary to enable any title insurance company to issue title insurance coverage with respect to the Lots subject to this Declaration; (iii) if such amendment is required by an institutional or governmental lender or purchaser of mortgage loans, including, for example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to enable such lender or purchaser to make or purchase Mortgage loans on the Lots subject to this Declaration; or (iv) if such amendment is necessary to enable any governmental agency or private insurance company to insure or guarantee Mortgage loans on the Lots subject to this Declaration; provided, however, any such amendment shall not adversely affect the title to any Owner's Lot unless any such Lot Owner shall consent thereto in writing. Further, so long as Declarant owns any property for development and/or sale in the Community, Declarant may unilaterally amend this Declaration for any other purpose; provided, however, any such amendment shall not materially adversely affect the substantive rights of any Lot Owners hereunder, nor shall it adversely affect title to any Lot without the consent of the affected Lot Owner. 11.3.2 This Declaration may also be amended upon the afiirmative vote or written consent, or any combination thereof, of the Owners ofat least seventy-five percent 26 (75%) of the Total Association Vote and the consent ofDeclarant (so long as the Declarant owns any property for development and/or sale in the Community). Amendments to this Declaration shall become effective upon recordation, unless a later effective date is specified therein. 11.4 Partition. The Common Areas shall remain undivided, and no Owner nor any other Person shall bring any action for partition or division of the whole or any part thereof without the written consent of all Owners of all portions of the property located within the Community and without the written consent of all holders of all Mortgages encumbering any portion of the property, including, but not necessarily limited to, the Lots located within the Community. 11.5 Gender and Grammar. The singular, wherever used herein, shall be construed to mean the plural, when applicable, and the use of the masculine pronoun shall include the neuter and feminine. 11.6 Severability. Whenever possible, each provision of this Declaration shall be interpreted in such manner as to be effective and valid, but if the application of any provision of this Declaration to any person or to any property shall be prohibited or held invalid, such prohibition or invalidity shall not affect any other provision or the application of any provision which can be given effect without the invalid provision or application, and, to this end, the provisions of this Declaration are declared to be severable. 11.7 Captions. The captions of each Article and Section hereof, as to the contents of each Article and Section, are inserted only for convenience and are in no way to be construed as defining, limiting, extending, or otherwise modifying or adding to the particular Article or Section to which they refer. 11.8 Perpetuities. If any of the covenants, conditions, restrictions, or other provisions of this Declaration shall be unlawful, void, or voidable for violation of the rule against perpetuities, then such provisions shall continue only until twenty-one (21) years after the death of the last survivor of the now-living descendants of the individuals signing this Declaration. 11.9 Indemnification. To the fullest extent allowed by applicable Washington law, the Association shall indenmif'y every officer and director against any and all expenses, including, without limitation, attorneys' fees, imposed upon or reasonably incurred by any officer or director in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which such officer or director may be a party by reason of being or having been an officer or director. The officers and directors shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made by them, in good faith, on behalf of the Association ( except to the extent that such officers or directors may also be members of the Association), and the Association shall indemnify and forever hold each such officer and director free and 27 harmless against any and all liability to others on account of any such contract or commitment. Any right to indemnification provided for herein shall not be exclusive of any other rights to which any officer or director, or former officer or director, may be entitled. The Association may, at the discretion of the Board, maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such coverage is reasonably available. 11.10 Books and Records. This Declaration, the Articles oflncorporation, the Bylaws, copies of rules and regulations, Design Guidelines, use restrictions, membership register, books of account, and minutes of meetings of the members of the Board and of committees shall be made available pursuant to reasonable procedures established by the Board for inspection and copying by any member of the Association or by the duly appointed representative of any member and by holders, insurers, or guarantors of any first Mortgage at any reasonable time and for a purpose reasonably related to such Person's interest as a member or holder, insurer, or guarantor of a first Mortgage at the office of the Association or at such other reasonable place as the Board shall prescribe. 11.11 Financial Review. At least annually, the Board of Directors shall prepare, or cause to be prepared, a financial statement of the Association. Upon written request of any institutional holder of a first Mortgage and upon payment of all necessary costs, such holder shall be entitled to receive a copy of such financial statement within ninety (90) days of the date of the request. 11.12 Notice of Sale, Lease or Acquisition. In the event an Owner sells or leases such O""ner's Lot, the Owner shall give to the Association, in writing, prior to the effective date of such sale or lease, the name of the purchaser or lessee of the Lot and such other information as the Board may reasonably require. Upon acquisition of a Lot each new Owner shall give the Association, in writing, the name and mailing address of the Owner and such other information as the Board may reasonably require. 11.13 Agreements. Subject to the prior approval ofDeclarant (so long as Declarant O'-"TIS any property for development and/or sale in the Community or has the right to unilaterally annex additional property to the Community) all agreements and determinations, including settlement agreements regarding litigation involving the Association, lawfully authorized by the Board of Directors shall be binding upon all Owners, their heirs, legal representatives, successors, assigns, and others having an interest in the Community or the privilege of possession and enjoyment of any part of the Community. 11.14 Implied Rights. The Association may exercise any right or privilege given to it expressly by this Declaration, the Bylaws, the Articles oflncorporation, any use restriction or rule or regulation, and every other right or privilege reasonably to be implied from the existence of any right or privilege given to it therein or reasonably necessary to effectuate any such right or privilege. 11.15 Variances. Notwithstanding anything to the contrary contained herein, the Board of Directors or its designee shall be authorized to grant individual variances from any of the provisions of this Declaration, the Bylaws and any Design Guideline rule, regulation or 28 use restriction established pursuant thereto if it determines that waiver of application or enforcement of the provision in a particular case would not be inconsistent with the overall scheme of development for the Community. 11.16 Litigation. No judicial or administrative proceeding shall be commenced or prosecuted by the Association unless approved by at least seventy-five percent (75%) of the Total Association Vote. This Section shall not apply, however, to (i) actions brought by the Association to enforce the provisions of this Declaration (including, without limitation, the foreclosure of liens), (ii) the imposition and collection of assessments as provided in Article 4 hereof, (iii) proceedings involving challenges to ad valorem taxation, or (iv) counterclaims brought by the Association in proceedings instituted against it. This Section shall not be amended unless such amendment is made by the Declarant pursuant to Section 11.3, hereof, or is approved by the percentage votes, and pursuant to the same procedures, necessary to institute proceedings as provided above. EXECUTED this_ day of _____ , 20 _. DECLARANT: Harbour Homes, LLC By:-------- Justin Harman Vice President State of Washington ) ) ss. County of King ) I certify that I know or have satisfactory evidence that Justin Harman is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Vice President of Harbour Homes, LLC to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. (Seal Or Stamp) Dated: ----------- Notary Public in and for the State of Washington Residing at: ________ _ Printed Name: -------- My Appointment Expires ____ _ 29