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HomeMy WebLinkAboutRC 20100923000810 •�, Return Address: City Clerk's Office City of Renton 111 I I II 0111 111 111 0 11 1055 South Grady Way 20100923000810 Renton, WA 98057 CITY OF RENTON COV 112.00 PAGE-001 OF 049 09/23/2010 14:13 KING COUNTY, WA Please print or type information WASHINGTON STATE RECORDER'S Cover Sheet(RCW 65.04) Document Title(s) (or transactions contained therein):(all areas applicable to your document must be filled in) 1. pe.G1 k A4-10.4 of C 1 rL'5 2. 3. 4. Reference Number(s)of Documents assigned or released: Additional reference#'s on page of document Grantor(s)(Last name first name,initials) 1.4t-1tLWi4ef Tlie- e 2. Additional names on page of document. Grantee(s)(Last name first,then first name and initials) 1C-2wr llor4i Ae- h irknA . 5` 2 Additional names on page of document. Legal description(abbreviated: i.e lot block,plat or section,townshi�pp,,range) -rl,e S©ga`i-% i(oS Fee.+ DF'i't.t_ 1J©!`F� q.q F -f op F� e E-W3T 4✓4O Pe- of Tit. nI€ hf ©F Sec-.E-}64 i i ra�Nst�IP 2' N©r+H ,Orly e_ 5 eAsr, tJ. Oto, ;A.) Ki in61 Coi4+yt 14/4 s'tit ruiT0A4 Additional legal is on pagetgof document. Assessor's Property Tax Parcel Account Number 0 Assessor Tax#not yet assigned 14309119O1 an _t__. 1 (o. 3©5-91©18-0+ The Auditor/Recorder will rely on the information provided on the form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. I am requesting an emergency nonstandard recording for an additional fee as provided in RCW 36.18.010. I understand that the recording processing requirements may cover up or otherwise obscure some pare of the text on the original document. Signature of Requesting Party V After Recording Return to: Bryce H. Dille of Campbell, Dille, Barnett, Smith& Wiley, PLLC 317 South Meridian Puyallup, WA 98371 DECLARATION OF PROTECTIVE COVENANTS, CONDITIONS, EASEMENTS & RESTRICTIONS FOR GALLOWAY AT THE HIGHLANDS Grantor: Galloway at the Highlands I, LLC, a Washington limited liability company Grantee: Galloway at the Highlands Reference Numbers of Documents Assigned or Released: Legal Description (abbreviated): The N.E. 1/4 of the N.E. 1/4, Section 16, Township 23 North, Range 5 EAst, W.M., City of Renton, King County, Washington. Complete Legal Description is located on Exhibit"A" of document Assessor's Tax Parcel Number: 162305-9098-04 Survey Map and Plans Recorded Under Recording Number: 20IOO923000$011 DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BHD\M\Bartels,Jonathan\Hat\Declaration 07-01-10 wpd IL 1 TABLE OF CONTENTS Article Page One: Definitions 1 Two: Management of Common Areas and Enforcement of Declaration 5 Three: Homeowners Association 6 Four: Common Areas 10 Five: Maintenance and Common Expenses 10 Six: Assessments 18 Seven: Collection of Assessment 20 Eight: Building, Use and Architectural Restrictions 23 Nine: Party Walls 26 Ten: Alterations to or Rebuilding of a Residence 29 Eleven: Compliance with Governing Documents 29 Twelve: Limitation of Liability 32 Thirteen: Indemnification 32 Fourteen: Easements 32 Fifteen: Mortgagee Protection 33 Sixteen: Management Contracts 35 Seventeen: Insurance 35 Eighteen: Damage or Destruction; Reconstruction 37 Nineteen: Rules and Regulations 38 Twenty: Remedies and Waiver 38 Twenty-One: Condemnation 39 Twenty-Two: General Provisions 39 Twenty-Three: Amendment and Revocation 41 DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1.\DATAU)\BHD\M\Bartels,Jonathan\plat\Declaration 07-01-10 wpd 1 DECLARATION OF PROTECTIVE COVENANTS, CONDITIONS, EASEMENTS & RESTRICTIONS FOR GALLOWAY AT THE HIGHLANDS TOWNSHOMES The Declarant herein as the owners in fee of the real property legally described in this Declaration,hereby covenant,agree,and declare,that all of the real property and housing units constructed on the real property are and will be held, sold, and conveyed subject to this Declaration which is made for the purpose of enhancing and protecting the value, the desirability and attractiveness of the real property for the benefit of all the real property and their owners. The covenants, restrictions, reservations, and conditions, contained in this Declaration shall run with the land as easements and equitable servitudes,and shall be binding upon the real property and each portion thereof and all persons owning,purchasing, leasing, subleasing or occupying any Lot on the real property and upon their respective heirs, successors and assigns. ARTICLE ONE: DEFINITIONS For purposes of the Declaration,Articles of Amendment of Incorporation and Bylaws of the Association,certain words and phrases have particular meanings,which are as follows: 1. "Allocated Interest" with respect to each Lot shall mean the percentage dervived by dividing 100 by the number of Lots in the Property. 2. "Areas Reserved to Declarant". The Declarant does hereby reserve until itself and convey to the Association a perpetual, non-exclusive easement, if necessary, for the placement and maintenance of any entry and signage monumentation and lighting and for all utilities necessary incident to the same, over and across portions of the property which are actively constructed upon concerning any entry or signage monumentation if constructed by the Declarant. Said easement shall authorize those benefitted by the terms thereof to enter onto and across said property at all reasonable times in order to effectuate the terms of the above grant and reservation. 3. "Articles" shall mean the Association's Articles of Amendment of Incorporation and any amendments. 4. "Assessment(s)" shall mean all assessments imposed pursuant to this Declaration. 5. "Association" shall mean the Galloway at the Highlands Homeowners Association formed as a nonprofit corporation for the purpose of administering this Declaration. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 1 of 46 I.\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd g 6. "Association Lien" shall mean a lien in favor of the Association imposed pursuant to this Declaration. 7. "Board" or "Board of Directors" shall mean the Board of Directors of the Association. For purposes of exercising the powers and duties assigned in this Declaration to the Board during the development period, this term shall also mean the "Temporary Board" or"Declarant"as provided in this Declaration unless the language or content clearly indicates otherwise. 8. "Budget"shall mean the operating budget for the Association adopted pursuant to this Declaration. 9. "Building" shall mean any of the detached buildings on the property. Each building may contain multiple residences. 10. "Bylaws" shall mean the Association's Bylaws and any amendments. 11. "Condominium"shall mean the condominium regime established on either or both of the Condominium Parcels. 12. "Condominium Association" shall mean a non-profit corporation formed to administer one or more of the Condominiums. 13. "Condominium Parcels" shall mean Lots 1 and 24 as shown on the Plat of Galloway at the Highlands. 14. "Condominium Unit" shall mean an individual Unit within a Condominium. 15. "Common Areas"shall include but not be limited to what is identified as Tracts A, B, C and D. Common areas shall also mean the property both real and personal in which any of the Association(s)and/or all of the Lot owners has been granted an ownership interest, easement, or right of control by any written instrument including this Declaration or by delineation and declaration of the same on the Plat map recorded as referred to above or any other recorded document. 16. "Common Expenses" shall mean all costs and expenses incurred by the Association, including, but not limited to, the following: (a) expenses of administration, maintenance, and operation, including, but not limited to, reasonable compensation to employees of the Association, (b) costs of repair or replacement of the common areas or any required or permitted Improvements thereon, (c) premiums or deductibles for all insurance policies and bonds required or permitted by this Declaration, (d) all real property and other DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 2 of 46 1.\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-O1-10.wpd g taxes and assessments on the common areas, (e) utility and service charges, (f) funding of reserves for anticipated operational shortfalls or for replacement of capital items, (g)funding of reserves for the replacement of the common areas and any improvements and community facilities therein,and start-up expenses and operating contingencies of a nonrecurring nature, (h)legal fees and costs, (1)the costs of recovering unpaid Assessments, including legal fees and other costs of foreclosure of an Association Lien, 0) fees for professional services, (k) expenses of administration, maintenance, operation, repair or replacement of landscaping performed by the Association or the Association's agent on the owners Lots, (1) costs of maintaining any portions of the Buildings which the Association is required or permitted to maintain pursuant to this Declaration,(m)the cost of maintaining or repairing any store water drainage system, and (n) any other costs and expenses determined from time to time as reasonably necessary by the Board,or as otherwise incurred by the Association pursuant to this Declaration. 17. "Declaration"shall mean this Declaration of Protective Covenants, Conditions, Easements and Restrictions. 18. "Declarant" The Declarant shall mean Galloway at the Highlands I, LLC, a Washington limited liability company, or any other person or entity to whom the Declarant assigns by written instrument its rights as a Declarant under the terms of this Declaration. 19. "Development Period"shall mean the period of time from the date of recording of this Declaration until 180 days after the date upon which 100% of the Lots have been sold by the Declarant or any shorter period, as determined by the Declarant. A partial delegation of authority by the Declarant of any of the management duties described in this Declaration shall not terminate the development period. In the event any loans with respect to any of the Lots are insured through the Federal Housing Administration (FHA), the Veteran's Administration (VA), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation,then in that event,the Development Period shall terminate at such time as 75% of all of the Lots have been closed and sold to other than builders. 20. "Governing Documents" means this Declaration, and rules and regulations promulgated under the authority granted hereby, and the Articles and Bylaws of the Association, all as amended from time to time. 21. "Improvement" shall mean all structures and appurtenances thereof of every kind, whether above or below the land surface, including, but not limited to, buildings (including residences), garages,utility systems,walkways,driveways,parking areas, loading areas,landscaping areas,fences,walls,decks, stairs,poles,landscaping vegetation,irrigation systems,streets,signs,exterior fixtures,recreational facilities,play structures,lighting,paving, striping, curbs, picnic structures and any other structure of any kind. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS& RESTRICTIONS 1\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd Page 3 of 46 22. "Institutional First Mortgagee" or"Mortgagee" shall mean a bank or savings and loan association or established mortgage company,or other entity chartered under federal or state laws, any corporation or insurance company or state or federal agency which holds a first note or deed of trust against a Lot or housing unit thereon. 23. "Lot" shall mean each of Lots as designated on any plat of land shown ont he recorded subdivision maps of the property,but excluding the lettered tracts,and Lot shall also include a Condominium Unit after the same has been established in either Lot 1 or 24 by the recording a Condominium Declaration and Survey Map and Plans. Therefore,for an example, if a Condominium is created on Lot 1 whereby 9 Condominium Units are created, then that will mean that there will now be 9 Lots in place and in substitution of Lot 1 and each of those Condominium Units which are now identified by Lots shall be subject to the terms and provisions of this Declaration,except as the same are specifically excluded from the terms and provisions hereof. 24. "Majority Vote"shall mean a vote of the holders of more than 50%of the total number of votes allocated to the Lots in accordance with the provisions of this Declaration. 25. "Member" shall mean every person or entity that holds a membership in the Association. 26. "Mortgage"shall mean a mortgage or deed of trust encumbering a Lot or other portion of the real property. 27. "Occupant"shall mean a lessee or licensee of an owner or any other person or entity, other than an owner, in lawful possession of a Lot, or a portion of a Lot, with the permission of the owner. 28. "Owner"shall mean the recorded owner of a Lot,whether one or more persons or entities,but excluding those having such interest merely as security. A real estate contract purchaser shall be deemed the owner. 29. "Party Wall" shall have the meaning as ascribed to it in this Declaration. 30. "Person" shall mean a natural person, a corporation, a partnership, trustee or other legal entity. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 4 of 46 1:\DATA\D\B \M\ HDBartels,Jonathan\Plat\Declaration 07-01-10 wpd g 31. "Property"shall mean and refer to the real property described with particularity in"Exhibit A"and such additions to that property which may hereafter be brought within the jurisdiction of the Association. 32. "Residence" shall mean and refer to a detached structure occupying any Lot situated within a building. 33. "Sale" or "Sold" shall mean the date upon which ownership of a Lot is transferred from an owner to another person or entity by recordation of an instrument of transfer such as a deed or real estate contract. 34. "Structure" shall mean any building, fence, wall, driveway, walkway, patio, garage, storage shed, carport, mailboxes, rockery, or the like. 35. "Tracts shall mean Tracts A, B, C and D, inclusive, as shown on the Plat. ARTICLE TWO: MANAGEMENT OF COMMON AREAS AND ENFORCEMENT OF DECLARATION Section One:Development Period. During the development period the Declarant shall appoint the sole director of the Association. The Declarant may also appoint members of the Association to other committees or positions in the Association as the Declarant deems appropriate to serve at the Declarant's discretion and may assign such responsibilities, privileges, and duties to the Members as the Declarant determines for such time as the Declarant determines. Any member appointed by the Declarant during the development period may be dismissed at the Declarant's discretion. The Declarant shall also appoint members to the Architectural Control Committee. At such time as the Declarant has sold and conveyed all Lots, then the Declarant may resign as a director of the Association and from any other committees for the duration of the development. At such time as the Declarant has sold and conveyed all Lots, then the Board of Directors,as elected by the Members,shall appoint one or more members to the Architectural Control Committee. Section Two: Purpose of Development Period. The Declarant's control of the Association during the Development Period is established in order to ensure that the real property and the Association will be adequately administered in the initial phases of development, ensure an orderly transition of Association operations, and to facilitate the Declarant's completion of construction of housing units. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 5 of 46 I.\DATA\D\BHD\M\Baartels,Jonathan 07-01-10 wpd g • Section Three:Authority of Association After Development Period. At the expiration of Declarant's management authority the Association shall have the authority and obligation to manage and administer the common areas and to enforce this Declaration. Such authority shall include all authority provided for in the Association's Articles, Bylaws, rules and regulations and this Declaration. Section Four: Delegation of Authority. The Board of Directors, Declarant may delegate any of its managerial duties,powers,or functions to any person,firm,or corporation. The Board, Declarant shall not be liable for any breach of duty, negligence, omission, intentional act or improper exercise by a person who is delegated any duty,power or function by the Board of Directors. Section Five: Termination of Development. Upon termination of the development period, the Declarant, in accordance with the by-laws, shall conduct by mail an election of a Board of Directors who shall then act in accordance and in connection with the terms and provisions of the Articles of Amendment of Incorporation, By-Laws and this Declaration. However,in the alternative, not less than ten(10),nor more than thirty(30),days prior to the termination of the development period,the Declarant,may give written notice of termination of the development period to the owner of each Lot. Said notice shall specify the date when the development period will terminate and that at such time a meeting of the Members shall be called in accordance with the by-laws at which time Members shall then elect directors in accordance with the terms and provisions of the Articles of Incorporation, By-Laws and this Declaration. ARTICLE THREE: HOMEOWNERS ASSOCIATION Section One:Non-Profit Corporation.The Association shall be incorporated as a non- profit corporation in accordance with RCW 24.03. Section Two: Membership. Every person which is an owner of any Lot(and the term Lot shall also mean any Condominium Unit once it has been established in accordance with the Washington Condominium Act)shall be a member of the Association. Membership shall be appurtenant to the Lot and may not be separated from ownership of any Lot and shall not be assigned or conveyed in any way except upon the transfer of title to said Lot and then only to the transferee of title to the Lot. All owners shall have the right and duties specified in the Government Documents. Section Three: Voting. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1`_\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 6 of 46 1. One Vote. owners,including the Declarant,shall be entitled to one vote for each Lot owned. When more than one person owns an interest in any Lot,the vote for that Lot shall be exercised as the owners decide to exercise that vote, but in no event shall more than one vote be cast with respect to any Lot,nor shall any vote be divided. The voting rights of any owner may be suspended as provided for in the Governing Documents. 2. Voting Representative. There shall be one voting representative of each Lot. Declarant shall be considered an "owner" and shall be the voting representative with respect to any Lot owned by Declarant. If a person(including Declarant)owns more than one Lot, such person shall have the votes for each Lot owned. The voting representative shall be designated by the owner but need not be an owner. 3. Joint owner Disputes. The vote of a Lot must be cast as a single vote, and fractional votes shall not be allowed. In the event that joint owners are unable to agree among themselves as to how their vote shall be cast, they shall lose their right to vote on the matter in question. In the event more than one vote is cast for a particular Lot, none of such votes shall be counted and such votes shall be deemed void. Section Four: Meetings. 1. Annual Meetings, Audits. There shall be an annual meeting of the owners in the first quarter of each calendar year, or such other fiscal year as may be adopted by the Association, at such reasonable place and time as may be designated by written notice of the Association delivered to the owners no less than fourteen (14) days and no more than sixty(60)days prior to the date fixed for such meeting. At the annual meeting,there shall be presented a report on the itemized receipts and disbursements for the preceding fiscal year,and allocation thereof to each owner, and the estimated expenses, if any, for the Association for the coming fiscal year. A Lot owner,at his expense,may at any reasonable time make an audit of the books of the Association. 2. Special Meetings. Special meetings of the owners may be called at any time for the purpose of considering matters which by the terms of this Declaration require the approval of all or some of the owners,or for any other reasonable purpose. Such meeting shall be called by written notice of one third or more owners, which notice shall be delivered not less than fourteen(14) days and no more than sixty(60) days prior to the date fixed for such meeting. The notice shall specify the date, time and place of the meeting, and in general the matters to be considered. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd Page 7 of 46 3. Quorum Requirements for Association Meeting. At a meeting of the owners, twenty-five percent (25%) of the voting owners present in person or by proxy shall constitute a quorum. A majority of owners present and entitled to vote,either in person or by proxy, shall be sufficient for the passage of any motion or the adoption of any resolution, except in connection with amendment or repeal of this Declaration. If the required quorum is not present,another meeting may be called subject to the requirement of written notice sent to all members at least ten(10) days in advance of such meeting, and the required quorum at the subsequent meeting shall be one-half ('/2) of the required quorum for the preceding meeting. In the absence of a quorum at an owner's meeting, a majority of those present in person or by proxy may adjourn the meeting to another time but may not transact any other business. An adjournment for lack of a quorum shall be to a date not less than five (5) nor more than thirty(30) days from the original meeting date. Section Five:Bylaws of Association. Bylaws for administration ofthe Association and the property, and for other purposes not inconsistent with the intent of this Declaration, may be adopted and amended by the Board. The bylaws may contain provisions which are supplementary to, and consistent with the Declaration. In particular, but without limitation. the Board may establish provisions for the giving of notice(including electronic notice)of the time and place of meetings, and the like. Section Six: Power of the Association. The Association shall have the powers enumerated below,any powers reasonably implied from the grant of enumerated powers,and any power reasonably necessary to the effective administration of the common areas, and for effectuation of the purposes of this Declaration. (a) Purchase policies of liability and property insurance on the common areas and the buildings, and such other insurance as the Board deems advisable, and take all actions which may be necessary or convenient in dealing with any insurance recovery or any insurance company. (b) Purchase legal and accounting services, if necessary, for the administration of Association affairs,administration of the common areas,or the enforcement of this Declaration. (c) Arrange for the maintenance, repair and replacement of the common areas. (d) If necessary, maintain any Lot if such maintenance is reasonably necessary in the judgment of the Board to (1)to protect common areas; or(2)to preserve the DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 8 of 46 1\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd g • r , appearance and value of the property as a whole. The Board may authorize such maintenance activities if the owner or owners of the Lot have failed or refused to perform maintenance within a reasonable time after written notice of the necessity of such maintenance within a reasonable time after written notice of the necessity of such maintenance has been delivered by the Board to th owner or owners of such Lot,provided that the Board shall levy a special assessment against the owner or owners of such Lot for the cost of such maintenance. (e) Pay any amount necessary to discharge any lien or encumbrance levied against the entire property or any part thereof which is claimed or may, in the opinion of the Board, constitute a lien against the property or a portion thereof and/or against the common areas. Where one or more owners are responsible for the existence of such liens, they shall be jointly and severally liable for the cost of discharging it and any costs or expenses, including reasonable attorney's fees and costs of title search incurred by the Board by reason of such lien or liens. Such fees and costs shall be assessed against the owner or owners and the Lot responsible to the extent of their responsibility. (f) Pay all utility charges attributable to common areas. (g) Pay all costs deemed appropriate by the Board to ensure adequate security for the Lots and common areas. (h) Improve common areas with new capital improvements;provided that for those capital improvements exceeding $5,000.00, fifty-one (51%) percent of the owners (not just a quorum) must approve the addition of such capital improvements to the common areas. (i) Enter any Lot or residence,when reasonably necessary, in the event of emergencies or in connection with any maintenance,landscaping or construction for which the Board is responsible. Except in cases of emergencies,the board,its agents,or employees shall attempt to give notice to the owner or occupant of any Lot or residence twenty-four(24)hours prior to such entry. Such entry must be made with as little inconvenience to the owners as practicable,and any damage caused thereby shall be repaired by the Board if the entry was due to any emergency(unless the emergency was caused by the owner of the Lot entered,in which case the cost shall be specially assessed to the Lot). If the work, repairs or maintenance activities were necessitated by the owner's neglect of the Lot or the owner's violation of the restrictions or duties set out in this Declaration, the bylaws or the articles, the cost of such repair or maintenance activity shall be specially assessed to that Lot. If the emergency or the need for maintenance or repair was caused by another owner of another Lot, the cost thereof shall be specially assessed against hte owner of the other Lot. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 9 of 46 I\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd g (j) Adopt and publish reasonable rules and regulations consistent with this Declaration governing the members and their guests and establish reasonable penalties for any infraction thereof. (k) Employ a property manager to keep the books for the Association and take such other action as the Association may deem appropriate. (1) Impose annual and special assessments to pay for common expenses. (m) Open a bank account on behalf of the Association and designate the signatories required. (n) Exercise all powers, duties and authority vested in or delegated to the Association and not reserved to the membership by other provisions of the governing documents. ARTICLE FOUR: COMMON AREAS Section One: Dedication of Common Areas: Upon recording of this Declaration,the management and control of all common areas shall be conveyed and vested in the Association; however, each Lot owner for tax purposes shall have an undivided equal interest in said common area as delineated on the Plat map. However, the Declarant however, reserves for the benefit of the Declarant, its successors and assigns, those certain rights of use, ingress, egress,occupation,and control indicated elsewhere in this Declaration for the duration of the development, at which time this reservation shall cease and then be of no further force and effect. The common areas shall include,but not be limited to,those identified in Article One of this Declaration. Section Two: Property Rights in Common Areas:The Association shall have the right and obligation to maintain improvements, vegetation, signage and utilities in and on all common areas in a manner consistent with this plat,this Declaration,the Articles and the By- Laws of the Association, and subject to Washington law,municipal ordinance, and any rules and regulations adopted by any governmental authority having jurisdiction over the same. Section Three: No Residential Development. None of the common areas can be used or improved for any type of residential development as required by the City of Renton. ARTICLE FIVE: MAINTENANCE AND COMMON EXPENSES Section One: Standard of Maintenance - Common Areas. The Association shall maintain the common areas in a manner consistent with good building and nursery practices, DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-I0 wpd Page 10 of 46 and in compliance with all applicable codes and regulations. The common areas shall include but not be limited as defined below together with all easements which are for the benefit of all Lot owners. These common areas include but are not limited to the following: 1. Tracts A, B, C and D, as identified on the Plat of Galloway at the Highlands. Tract A, B, C and D is hereby granted and conveyed to the Galloway at the Highlands Homeowners Association. In the event the Galloway at the Highlands Homeowners Association is dissolved or otherwise fails to meet its property tax obligation as evidenced by non-payment of property taxes for a period of eighteen (18) months, then each Lot in this plat shall assume and have an equal and undivided ownership interest in the tracts previously owned by the Galloway at the Highlands Homeowners Association and have the attendant financial and maintenance responsibility. 2. The round-a-bout island,including landscaping thereon,located in the roadway between Tracts A and D. 3. All landscape planters owned and controlled which were constructed and located by the Declarant. 4. All easements which have been established for the benefit of Lot owners or the Association or reserved to the Declarant,which may be delineated on the Plat of Galloway at the Highlands, or which easements are reserved on any other recorded document as well as easements which are reserved for the benefit of the Association for the purpose of the installation,maintenance,and repairing of any improvements or any other installations constructed within said easement areas or any common areas as defined above. Section Two: Common Expenses. The Association shall perform such work as is necessary to carry out the duties described in this Declaration, and shall delegate the responsibility for management and supervision of such work to the Board to a manager or agent hired by the Board for the purpose of such management and supervision. Expenses for such work shall bepaid bythe Association for the benefit of all Lot p owners and shall be referred to as common expenses. The common expenses shall be paid by the Association from funds collected from assessments paid by Lot owners. The common expenses shall include, but shall not be limited to, the following: 1. The cost of maintaining all required insurance coverage and fidelity bonds on any common areas, and for directors and officers of the Association; DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd Page 11 of 46 2. The cost of maintaining, repairing and replacing all common area improvements, including but not limited to, (provided the same have been installed by the Declarant or the Association) playground equipment, paved pedestrian pathways and sidewalks not within the road right-of-way, lights constructed and installed by Declarant to illuminate any pedestrian pathways, and any street lights which are not otherwise maintained by a public utility or public authority, speed limit, no parking and street address advisory signs constructed and installed by Declarant. 3. The cost of maintaining, repairing and replacing street trees which have been planted as a requirement in order to obtain plat approval. 4. The cost of maintenance of those portions of the Lot and the building situated thereon as more particularly set forth in this Declaration and/or have been installed by Declarant. 5. Any other expense which shall be designated as a common expense in the Declaration,or which shall be designated as a homeowners association expense as a requirement for plat approval,or may be designated as a common expense from time to time by the Association. Section Three: Maintenance of Lots. The condominiums created in Lots 1 and 24 are excluded from this provision. 1. Maintenance by owner. Except where the obligation is imposed on the Association by the provisions of this Declaration,each Lot and Residence shall be maintained by the owner in a lawful, neat, clean and attractive condition at all times. Without limiting the generality of the foregoing, each owner's obligations include the following: (a) Exterior Maintenance. Each owner shall maintain, repair and replace the gutters, exterior siding, windows, doors, lighting (including relamping)and other weather protection and related improvements on such owner's Lot in good condition and repair. All repairs, replacements, or reconstruction shall be completed with materials as near as possible to the quality, type and color of the original improvements. (b) Refuse. Each Lot shall be kept free of accumulations of litter,junk, containers,equipment,building materials and other debris. All refuse shall be kept in a sanitary containers situated on the each Lot sealed DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1\DATA'D\B}JD\M\Bartels,lonathan\Plat\Declaration 07-01-10.wpd Page 12 of 46 from view of any other Lot. The containers shall be emptied regularly and their contents disposed off of the Property. No grass cuttings, leaves,limbs,branches or other debris from vegetation shall be dumped or allowed to accumulate on any part of the Property, except that a regularly tended compost device shall not be prohibited in any back yard. (c) Storage and Parking. No storage of goods, vehicles, boats, trailers, trucks, campers, and recreational vehicles, or any other equipment or device shall be permitted except in parking spaces designated by the Association and subject to such rules and regulations regarding such storage and parking shall be promulgated by the Association from time to time. There shall be no parking on vehicles in an easement area, without prior written permission of the Association and subject to any applicable laws. (d) Shared Fence. Each owner shall share equally the responsibility of maintaining any fence between such owner's Lot and any other owner's Lot. If the owners disagree on any aspect of such fence maintenance, any one of them may request that the Association perform reasonable fence maintenance or replacement;provided that the Association shall make a special assessment against the owner's of the effected Lots in such manner and proportion as the Association shall, in its sole discretion, determine. In the case where the owners located in a single Building have any disagreement with respect to the maintenance of their respective portions of such Building, any such owner shall have the right to have such dispute resolved by the Board, by written notice to the Secretary and President of the Association, with copies to all other owners located in such Building. Each affected owner shall have the right to submit such written materials to the Board as the owner desires,subject to such time and page limits as the Board may wish to impose. The Board shall within forty-five(45)days after such notice hold a meeting for the purpose of resolving the issue, at which meeting each of the owners shall be entitled to present the owner's position, subject to such procedural limitations as the Board may impose. The Board may resolve the issue at such time, or later in executive session. The resolution of the Board shall be in writing, and shall be final and binding on the parties. The Board may engage the services of legal counsel in connection therewith, and the fees of such counsel may be DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-0I-10.wpd Page 13 of 46 (but are not required to be) specially assessed against any owner who is found to be substantially in the wrong. Any resolution by the Board may include having the Board cause any work to be done,with the cost of the work specially assessed against the owners of the improvements in question, together with a twenty percent (20%) administrative fee. 2. Lot Maintenance by the Association. (a) Basic Obligations. The Association shall be responsible for the repairs and maintenance set forth below; however, the cost of any repairs, replacement, recaulking or any work of a similar nature shall be assessed against the Lot owners situated in the building structure in which the residential structure of the Lot owner is located: (i) Exterior Paint and Weather Sealing.Painting, sealing, flashing and caulking of exterior Building surfaces. (ii) Roof Maintenance and Replacement. Repairing and replacing roofs, gutters, and down spouts. The Association shall also be responsible for repair and replacement of interior damage caused by leaks through portions of the exterior of Buildings that the Association is responsible for maintaining, but excluding damage to improvements and betterments installed in the Residence by an owner. The Association may either repair or replace damaged portions of the Building, including finishes and fixtures, with materials and workmanship of like kind, quality and condition as was originally installed by the Declarant or may pay the owner an amount equal to the cost of such repair and replacement in lieu of doing such work. All decisions regarding maintenance and repair shall be determined by the Board. (iii) Lot Landscaping. The maintaining of all exterior landscaping on the property. (iv) Casualty Repair. Repair of any damage which is covered by insurance required to be carried by the Association (including damage which is below the amount of any deductible.) 3. Optional Obligations. The Association shall perform any maintenance, repair or replacement that this Declaration imposes upon the owners as their DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 14 of 46 individual responsibility, if the owners have elected by a vote or consent of at least fifty-one percent(51 %) of the total voting power(not just a quorum) to delegate such responsibility to the Association. 4. Right to Perform Maintenance Neglected by an owner. In the event any owner fails to perform any obligation required under this Declaration including,after reasonable written notice to the owner,the Association may enter upon the Lot to perform the required obligation,All costs related to the performance of such obligation shall be specially assessed to such owner,plus an administrative fee equal to twenty percent (20%) of such cost. 5. Insurance Proceeds. In the event any repair or replacement of either the roof of any exterior or interior portion of the building or residence that is due to casualty or any other incident for which there is insurance coverage under the casualty insurance policy carried by the owner and said insurance proceeds shall be available and paid to the Association to perform such repair work that if there is such insurance coverage for such repairs, it will be paid for from the insurance and not from Association funds. Section Four: Extraordinary Use Expenses. In the event that one or more Lot owners should by their use of the common areas cause it to be subjected to other than reasonable wear and tear or by their actions damage those common areas or any improvements located thereon or therein,the individual subjecting the common area to such use shall have the obligation to repair such damage upon demand by the Association and to restore such common area to the condition that existed prior to such use or action and all expenses therefore shall be paid by such individual. Section Five: Street Repair, Maintenance and Cleaning. All owners shall use due diligence to avoid placing unnecessary dirt, debris, and any other material washing onto or coming on the street as a result of any construction activities and the owners shall at all times remain responsible for keeping the street clean of any such debris, dirt and material. In addition, all owners shall use due diligence to avoid causing any damage to the street or sidewalks and all streets and sidewalks and other improvements constructed by the Declarant as a condition for obtaining plat approval shall remain in the same condition as they were as of the date of final plat approval. The owner who violates the provisions of this paragraph shall reimburse the Declarant upon request for any expenses incurred by Declarant because of the failure of the owner to abide by the terms and provisions of this Declaration. In the event any owner does not pay the same upon request,then the Declarant shall have a lien against the property of said owner to secure payment of said reimbursement. In the event it cannot be determined which owner was responsible for the violation of the above referenced provisions, in that event the Homeowners Association shall reimburse the Declarant for any expenses DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 15 of 46 I\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd g incurred by the Declarant. Regardless of any other provision in this Declaration, this paragraph cannot be amended for a period of ten(10)yeas after recording of this Declaration. Section Six: Street Trees.As a condition of plat approval,the Declarant may have had to install certain trees either within the street right of way or on Lots as a condition for obtaining final plat approval. The Homeowners Association is responsible to maintain said trees and in the event any tree is removed for any reason, the Homeowners Association shall immediately replace the tree and if necessary shall reimburse the Declarant for the cost of replacing said tree. Regardless of any other provision in this Declaration, this paragraph cannot be amended for a period of ten(10) years after recording of this Declaration. Section Seven: Owners' Easements of Enjoyment. Each owner shall have a right in a easement of enjoyment in and to the common areas which shall be appurtenant to and shall pass with title(or, if applicable,with the equitable title held by real estate contract purchaser) to every Lot subject to the following provisions: 1. The right of the Declarant or the Association to establish use and operation standards for all common areas to be binding upon all Association Members along with enforcement standards. 2. The right of the Declarant during the development period or the Association after the development period to suspend an owner's right to vote and to use any recreational facilities for any period during which assessments against his or her Lot remain unpaid for a period not to exceed sixty days, and for any and each separate infraction of its prohibited rules and regulations. 3. The right of the Declarant(during the development period) or the Association (after the development period) to dedicate or transfer all or any part of the common areas to any public agency, authority or utility for such purposes and subject to such conditions as the Declarant or Members as applicable may deem appropriate. After the development period,no such dedication or transfer shall be effective unless the instrument agreeing to such dedication or transfer is signed by owners of two thirds of the Lots that have been recorded. 4. Any owner may delegate their right of enjoyment to the common areas and facilities to the members of their family, their tenants, or their guests, subject to the limitations set forth above. Section Eight: Insurance. Nothing shall be done or kept in any common areas which will increase the rate of insurance on the common areas or other Lots or improvements without the prior written consent of the board. Nothing shall be kept in any common area which will DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BI-ID\M\Bartels,JonathanU'Iat\Declaration 07-01-10 wpd Page 16 of 46 result in cancellation of insurance on any part of the common areas or which would be in violation of any laws or ordinances. Section Nine: Alteration of Common Areas. Nothing shall be altered or constructed in,or removed from any common areas except upon prior written consent of the board. There shall be no construction of any kind within the common areas except that community improvements may be constructed if two-thirds of the Members of the Association authorize (1)the construction of such improvements,and(2)assessment for such improvements. Also, any such improvements would be subject to the acquisition of all required permits from governmental agencies. This Section shall not limit or prohibit Declarant(and no Member's consent shall be necessary),during the development period,from constructing or altering any such improvements to any common area or any common maintenance area, which Declarant in Declarant's sole discretion, deems for the benefit and enhancement of said areas in the Association in general. Section Ten: Dumping in Common Areas or Easements. No trash,construction debris, or waste, plant or grass clippings or other debris of any kind, nor any hazardous waste, (as defined in federal, state or local law regulation) shall be dumped, deposited or placed on any common areas or easements. The Declarant(during the Development Period) and the Board thereafter, shall retain the rights for enforcement and initiation of penalties for violations of this policy. Section Eleven: Landscaping and Fencing. No permanent structures or landscaping of any kind, including fences,walls or shrubs,may be built or placed within any right of way easements or other easements as delineated on the Plat except as deemed appropriate by the Board. This prohibition shall not apply to the landscaping and any improvements in the common areas installed by the Declarant,nor shall this Section prohibit the Association from installing additional improvements or landscaping within the designated common areas, nor shall this section prohibit the installation of fences as may be otherwise allowed in this Declaration,nor shall this section prohibit the installation of landscaping on private Lot areas encumbered by utility easements not otherwise restricted in this Declaration. Also, this prohibition shall not apply to landscaping of front or side yards of Lots extending to the edge of the curb or sidewalk. Section Twelve: Management. Each owner expressly covenants that the Declarant (during the development period) and the board thereafter, may delegate all or any portion of management authority to a managing agent, manager or officer of the Association and may enter into such management contracts or other service contracts to provide for the maintenance of the common areas and any portion thereof. Any management agreement or employment agreement for maintenance or management may be terminable by the Association without DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 17 of 46 I.\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd g cause upon not more than ninety(90) days written notice thereof (However,this shall not be applicable if the management agreement provides for any other specific termination.)The term of any such agreement shall not exceed one year, renewable by Agreement of the parties for successive periods of up to three years each. Each owner is bound to observe the terms and conditions of any management agreement or employment contract,all of which shall be made available for inspection by any owner upon request. Any fees or salary applicable to any such management employment or service agreement shall be assessed to each owner. Section Thirteen. Parking Area. There has been designated an area for parking of members, guests and invitees which is situated on the Plat and the Association Board of Directors shall have the authority to adopt such rules and regulations relative to such parking as they deem appropriate and necessary. ARTICLE SIX: ASSESSMENTS Section One: Covenants for Maintenance Assessments. 1. Each owner of a Lot by acceptance of a deed therefor, whether or not it shall be so expressed in any deed or other conveyance, is deemed to pay to the Association annual or other regular assessments as set forth in this Declaration. 2. The annual or other regular and special assessments, together with interest, costs and reasonable attorney's fees, shall be a charge and a continuing lien upon the Lot against which each such assessment is made. Such lien may be foreclosed by the Association in like manner as a Mortgage on real property. 3. Each assessment, together with interest, costs, and reasonable attorney's fees, shall also be the personal obligation of the person who was the owner of the Lot assessed at the time the assessment fell due. The personal obligation shall not pass to the owner's successors-in-interest unless expressly assumed by them. The new owner shall be personally liable for assessments which become due on and after the date of sale or transfer. 4. Unless otherwise provided for in this Declaration,no Lot owned by a Declarant shall be subject to any annual or other assessments. Section Two: Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation,health,safety and welfare of the residents of the real property,including the improvement,repair and maintenance of the common areas and the services and facilities related to the use and enjoyment of said areas,for DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 18 of 46 the payment of insurance premiums on the common areas, and for the maintenance of other areas as provided for in this Declaration. Section Three: Board to Fix Annual or Regular Assessment. The Board of Directors shall fix the regular or annual assessment at least thirty(30)days prior to the commencement of the annual or regular assessment period. Written notice of the annual or regular assessment shall be sent to every owner. In the event the Board fails to fix an annual or regular assessment for any assessment period, then the assessment established for the annually or regular assessment for the prior year shall automatically be continued until such time as the Board acts. The annual or regular assessments shall be sufficient to meet the obligations imposed by the Declaration and any supplementary declarations, and shall be sufficient to establish an adequate reserve fund for the maintenance, repair and replacement of those common areas which require such actions on a periodic basis. That in the event there is any increase in the annual or regular assessment of more than five percent (5%) of the annual or regular assessment for the prior assessment period,then it must be approved as provided for in the By- Laws of the Association which are incorporated herein as though fully set forth. Section Four: Special Assessments. In addition to the assessments authorized above, the Association by its Board of Directors may levy,in any year,a special assessment applicable to that year only, for the purpose of defraying the cost of any construction or reconstruction, unexpected repair or replacement of facilities in the common areas. However, the Declarant shall not be obligated to pay any special assessments on Lots owned by the Declarant. Assessments may be made based upon the estimated cost of such work, prior to the work's commencement, provided such estimate has been provided by a contractor retained by the Board for the purpose of such estimate. All special assessments for construction of new facilities or acquisition of new equipment,which is not for the upgrade,repair or replacement of existing construction or equipment, shall require the approval as set forth in the By-Laws. Section Five: Assessments of Budgeted Common Expenses Against Lots. The annual expenditures contained in the budget,net of budgeted income,shall be assessed in equal shares against each Lot. Each owner of a Lot,for himself or herself,and for his or her heirs,personal representatives, successors and assigns, hereby covenants and agrees, and each subsequent owner of a Lot by acceptance tance of a deed therefore,whether or not it shall be so expressed in the p deed, is deemed to covenant and agree, to pay the Association, for each Lot owned, any and all assessments charged by the Association pursuant to this Declaration. Section Six: Initial Assessment. The initial assessment which shall be paid by any owner who acquires a Lot from the Declarant shall pay at time of closing the sum of Three Hundred Dollars ($300.00) which amount shall be paid to and held by the Association for Association expenses under the terms of this Declaration. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 19 of 46 1:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd g Section Seven: Annual Assessment. The annual assessment shall be determined by the Declarant prior to the sale of the first Lot and each Lot owner, upon purchasing from a Declarant, shall pay the prorata portion of said assessment. Said annual assessment shall be due on or before the first of each month. The above referenced annual assessment shall be paid to the Homeowners Association who shall then pay for the expenses of the Association as required under the terms of this Declaration. In the event the expenses of the Association are in excess of the assessments collected, then the Declarant shall pay the difference to the Association or pay for said expenses and at such time as there have been sufficient assessments collected by the Association, the Declarant shall be reimbursed. The Declarant shall not be responsible or liable for the payment of any assessment against any Lot owned by the Declarant. The annual assessment as set forth above may be increased during the development period to reflect (1) maintenance costs; (2) repair costs; or (3) plat management costs. All increases during the development period must directly reflect increase in the above cited costs. During the development period, the Declarant shall have the authority to reduce the annual assessments if economic data support such a reduction because of reduced maintenance costs or other anticipated association expenses. Section Eight: Certificate of Payment. The Association shall, upon written demand, furnish a certificate in writing setting forth whether the assessment on a specified Lot has been paid. A reasonable charge may be made for the issuance of the certificate. Such certificate shall be conclusive evidence of payment of any assessment stated to have been paid. Section Nine: Fines Treated as Special Assessments. Any fines levied by the Association pursuant to RCW Chapter 64.38 (or successor statute authorizing the imposition of fines) shall be treated as a special assessment of the owner fined, and may be collected by the Association in the manner described in this Declaration. ARTICLE SEVEN: COLLECTION OF ASSESSMENT Section One: Lien- Personal Obligation. All assessments,together with interest and the cost of collection shall be a continuing lien upon the Lot against which each such assessment is made. The lien shall have all the incidents of a mortgage on real property. Each such assessment,together with interest,costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the owner of the Lot at the time the assessment was due. No owner may waive or otherwise avoid liability for assessments by non-use of the common areas or abandonment of the Lot. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 20 of 46 I'\DATA\D\BHD\M\Bartels,]onathan\Plat\Declaration 07-01-10 wpd g Section Two: Delinquency. If any assessment is not paid within thirty(30)days after its due date, the assessment shall bear interest from said date at an annual rate of eighteen (18%)percent. A late charge of five percent(5%)of the amount overdue shall be charged for any payment more than ten (10) days past due. Each Member hereby expressly grants to the Association, or its agents, the authority to bring all actions against each Member personally for the collection of such assessments as a debt and to enforce lien rights of the Association by all methods for the enforcement of such liens,including foreclosure by an actions brought in the name of the Association in a like manner as a mortgage of real property, and such Member hereby expressly grants to the Association the power of sale in connection with such liens. The liens provided for in this section shall be in favor of the Association, and shall be for the benefit of the Association. The Association shall have the power to bid at a foreclosure sale and to acquire, hold, lease, mortgage and convey any Lot obtained by the Association. Section Three: Recovery of Attorneys' Fees and Costs. The Association shall be entitled to recover any costs and reasonable attorneys' fees incurred in connection with the collection of delinquent Assessments, whether or not those collection activities result in suit being commenced or prosecuted to judgement. In addition, the prevailing party shall be entitled to recover costs and reasonable attorneys' fees on appeal and in the enforcement of a judgement, whether in the State of Washington or a sister state. Section Four: Certificate of Assessment.A certificate executed and acknowledged by the treasurer or the president of the Association, or the Manager, or another authorized agent of the Association if neither the president nor treasurer nor Manager is available, stating the indebtedness,if any, for Assessments secured by the Association's lien upon any Lot shall be conclusive upon the Association as to the amount of indebtedness on the date of the certificate in favor of all persons who rely thereon in good faith. A certificate of Assessments, in recordable form, shall be furnished to any Member, Owner or any Mortgagee within a reasonable time after request at a reasonable fee to be set by the Board. Unless otherwise prohibited by law,any Mortgage may pay any unpaid Assessments payable with respect to that Lot and upon payment that Mortgage shall have a lien on the Lot for the amounts paid of the same rank as the lien of its Mortgage. Section Five:Non-Judicial Foreclosure of Assessment Lien. The Owners by approval of this Declaration each hereby bargain, sell and convey to Chicago Title Insurance Co., a Washington corporation (the "Trustee"), in Trust, for the benefit of the Association, as beneficiary, with power of sale, the real property which is subject to this Declaration, which real property is not used principally for agricultural or farming purposes,together with all the tenements,hereditaments, and appurtenances now or hereafter thereunto belonging or in any way appertaining, and the rents, issues and profits thereof This grant is made by each Owner for the purposes of securing performance of the payment of all Assessments due hereunder DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1\DATA\D\BHD\M\Bartels,Jonathan\PIat\Declaration 07-01-10.wpd Page 21 of 46 • against each Owner's respective Lot. Upon default by any Owner in the payment of any Assessment,upon the written request of the Association,the Trustee shall sell the Lot subject to the lien for Assessments, in accordance with the Deed of Trust Act and the State of Washington at public auction to the highest bidder. Any person except the Trustee may bid at a Trustee's Sale. The Trustee shall apply the proceeds of the sale as follows: (1)the expense of sale, including a reasonable Trustee's fee and any attorney's fee; (2)to the obligation secured by this grant in trust; (3) the surplus, if any, shall be distributed to the persons entitled thereto. The Trustee shall deliver to the purchaser at the sale its deed,without warranty,which shall convey to the purchaser the interest in the property which the Owner had or had the power to convey at the time of adoption of this Amendment,and such as he or she may have acquired thereafter. The Trustee's deed shall recite the facts showing that the sale was conducted in compliance with all the requirements of law and the Declaration,which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchase and encumbrancers for value. The beneficiary may appoint in writing a successor trustee,and upon the recording of such appointment in the real property records of the county in which this Declaration is recorded, the successor trustee shall be vested with all powers of the original trustee. Section Five:Judicial Foreclosure of Assessment Lien. The Association may foreclose the lien on any assessment by appropriate action in court in the manner that a mortgage is foreclosed or in any other manner provided by the laws of the State of Washington as they may from time to time be changed or amended. In any action to foreclose a lien against any Lot for nonpayment of delinquent assessments, any judgment rendered against the owner of a Lot in favor of the Association shall include a reasonable sum for attorney fees and all costs and expenses reasonably incurred in preparation for or int he prosecution of the action in addition to taxable costs permitted by law. The Association shall have the power to bid in at any resulting sale and to purchase, acquire, lease, hold, mortgage and convey any Lot. Section Six:Records. The Board shall cause to be kept complete,detailed and accurate records of all receipts and expenditures of the Association, specifying and itemizing each expense incurred. Except to the extent exempted from disclosure under applicable law, the books and records of the Association, including the records and resolutions authorizing payments by the Association and all contracts, documents, minutes, resolutions, papers and other records of the Association, shall be available for examination and copying upon prior request by any member, owner, mortgagee, prospective purchaser of a Lot, or prospective mortgagee,personally or by an authorized representative,during normal business hours at the place at which the records are normally kept or at another reasonable time and location established by the Board. The Association may assess reasonable charges against a member DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 22 of 46 . . or owner, as a special assessment, to cover the direct and indirect costs of examination and copying of Association records by an owner or member or their representatives and may require any other requesting party to pay a like charge. ARTICLE EIGHT: BUILDING, USE, AND ARCHITECTURAL RESTRICTIONS Section One: Condominium Excluded. All Condominium Units created in Lots 1 and 24 are hereby excluded from the provisions dealing with building, use, and architectural restrictions as more particularly set forth in this Declaration. Section Two: Residential Restrictions. All Lots within the property shall be used solely for private single-family residential purposes. Private single-family residences shall consist of no less than one Lot. No garages shall be converted into living space. No single residence shall be altered to provide a residence for more than one family. Section Three: Property Use Restrictions. No Lot shall be used in a fashion which unreasonably interferes with any owner's right to use and enjoy their respective Lots or common areas. The Board, the Committee designated by it, or the Declarant during the Development Period, shall determine whether any given use by an owner unreasonably interferes with those rights. Such determinations shall be conclusive. Section Four: Prohibition of Nuisances and Untidy Conditions. No noxious or offensive activity shall be conducted on any Lot or common area, nor shall anything be done or maintained on the Property which may be or becomes an activity or condition which unreasonably interferes with the right of other owners to use and enjoy any part of the Property. No activity or condition shall be conducted or maintained on any part of the Property which detracts from the value of the Property as a residential community. Section Five: Fences, Walls & Shrubs. Fences, walls and shrubs are permitted to delineate the Lot lines of each Lot, subject to (1)approval of the Board and(2)determination whether such fences, wall or shrubs would interfere with utility easements, reflected on the face of the Binding Site Plans and other easements elsewhere recorded are actually known.All fences constructed on the Property must be of the same type,style and material as constructed by the Declarant, unless otherwise authorized by the Declarant or the Board. Section Six: Temporary Structures. No structure of a temporary character or trailer, recreational vehicle or other out buildings shall be used on any Lot at any time as a residence, either temporarily or permanently for residential purposes, except for such structure or trailer used by Declarant during the construction or sale of Residences. All such structures shall be removed at the expense of the owner of the Lot on which the structure is located. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BHD\M\Bartels,]onathan\PIat\Declaration 07-01-10 wpd Page 23 of 46 Section Seven: Signs. No signs, billboards, or other advertising structure or device shall be displayed to the public view on any Lot, except one sign not to exceed six(6)square feet in area,may be placed on a Lot to offer the Lot for sale or rent. Signs also be used by the Declarant to advertise the Property during the construction and initial sale period. All such signs shall be of a quality equivalent to those used by Declarant. One sign will be allowed at the entry of the Plat,unless otherwise authorized and approved by the Declarant or the Board. Political yard signs not more than six (6) square feet, of a temporary nature, will be allowed on Lots during political campaign periods. Section Eight: Animals. No animals other than dogs,cats,caged birds and tanked fish, may be kept on any Lot.No more than two(2)mammalian pets may be kept on any Lot. Dogs shall not be allowed to run at large, and no dog runs shall be permitted. Leashed animals are permitted within the common areas. Efforts should be made by the person accompanying the animal to remove animal waste deposited on lawns and right-of-ways. All exterior pens and enclosures must be approved by the Board prior to construction and shall be kept clean and odor free at all times, If, upon investigation by the Board, it is indicated that an animal or animals are being kept in violation of this section, the Board will give the owner ten (110) days' written notice of the violation. Such violations must be remedied by the owner within said ten(10)days.Failure to comply with the written notice will result in a fine of twenty-five dollars ($25-00) per day during any period of non-compliance. The Association shall be entitled to reimbursement of all attorneys' fees and associated costs for any action taken to collect such fines. If a Lot owner violates provisions of this section regarding pens and enclosures on more than two (2)occasions,the Board may required the Lot owner to remove such structure.Persistent disturbances caused by a Lot owners barking dog may be considered an unreasonable interference with the right of other owners to use and enjoy their property.The Board may require the Lot owners to keep a barking dog indoors. Section Nine: Radio and Television Antennas and Satellite Dishes. No television or radio aerial or satellite receiving dishes or similar devices shall be erected or placed so that it is visible from the entry to the property or the entry areas of any of the other homes. No more than one satellite or receiving device shall be installed on any Lot and the maximum diameter of any such device shall be eighteen (18") inches. Section Ten: Protection of Trees. Homeowners shall not cut down trees located on Lots within the Plat unless such trees are dead. It shall be necessary for homeowners to obtain the permission of the Board before cutting or pruning such trees. This provision only applies to trees in the Plat as developed by the Declarant and trees planted prior to Declarant's development and shall not apply to trees which owners plant on their Lots. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd Page 24 of 46 Section Eleven: Trash Containers and Debris. All owners shall place their trash in the trash containers situated on each Lot which shall be sealed from the view of any other Lots together with yard waste recycled materials containers,which containers may be placed on the driveway or roadway only for purposes of collection and upon the termination of collection must be removed and located on the Lot in accordance with the provisions of this Declaration. Section Twelve: Noise and Offensive Activity. owners, or any Occupant of the Property, shall refrain from making loud noises or playing musical instruments, radios, televisions,electronic music or using amplifiers at noise levels that may disturb other owners or Occupants of the Property. No owner shall mount any speakers or equipment containing speakers on any Party Wall;provided that owners may mount flat screen televisions with stock speakers on Party Walls. Any disputes regarding such matters may, at the request of any owner,be resolved by the Board in the same manner as provided in this Declaration above for resolution of disputes concerning Lot maintenance. owners are advised that living in a town home necessarily involves some compromise in acoustical privacy. Certain of the Lots are adjacent to an Interstate Highway,which also could create some noise issues.In no event shall the Association or the Declarant have any liability to any owner with respect to noise issues. Section Thirteen: Damage. Any damage to common areas by owners,their children, contractors, agents, visitors, friends, relatives, or service personnel shall be repaired and restored by the Association and any associated expense shall be assessed against the owner(s) causing such damage as a type of assessment, Section Fourteen: Vehicle Parking and Storage. Vehicles may only be parked on designated and approved driveways or parking areas, which shall be hard surfaced, or within garages. No storage of vehicles, boats, trailers, multi axle trucks, campers, recreational vehicles or other equipment or device shall be permitted in open view from any Lot or right of way. This provision shall not exclude the parking of up to a combination of two (2) automobiles and regular sized pick up trucks on the designated driveway or parking areas on the Lot as set forth above. A Lot owner may also park on the driveway recreational vehicles and/or boat trailers for a period not to exceed 24 hours. Section Fifteen: Auto Repair. No major auto repair shall be permitted except within enclosed garages which are kept closed. The only repairs permitted on the balance of the real property are occasional casual repairs and maintenance activities such as tune-ups or oil changes. Section Sixteen: Dirt bikes and/or ATV. No unlicenced motor vehicles, including motorcycles, motor scooters,ATV's etc., shall be permitted on any street within the Plat, nor DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 25 of 46 1.\DATA\D\BHD\M\Bartels,Jonathan\Plat\Deciaration 07-01-10 wpd g a a , on any common areas. That bicycles and dirt bikes also shall not be permitted on any common areas unless operated in areas specifically approved by the Association. Section Seventeen: Entry for Inspection. Any agent or member of the Declarant may at any reasonable predetermined hour upon 24 hours notice during construction or exterior remodeling,enter and inspect the structure to determine if there has been compliance with the provisions of this Declaration. The above recited individuals shall not be guilty of trespass for such entry or inspection.There is created an easement over,under,and across,residential Lots for the purpose of making and carrying out such inspections. Section Eighteen: Authority to Adopt Additional Rules and Restrictions. The Association shall have the authority to adopt additional written rules and restrictions governing the use of the real property, provided such rules and restrictions are consistent with the purposes of the Declaration, and to establish penalties for violation of those rules and restrictions. If rules and restrictions are adopted, they, along with the established penalties, shall be available to all Members upon request. Section Nineteen: Enforcement. The Association, or the Declarant during the Development Period, may, but is not required to, take an action to enforce the provisions of the Declaration available to it under law, including but not limited to imposition of fines as authorized by RCW Chapter 64.38,specific performance,injunctive relief,and damages. Any Member may also enforce the terms of this Article(although a Member may not impose a fine as authorized by RCW Chapter 64.38)but the Member must first obtain an order from a court of competent jurisdiction entitling the Member to relief. In the event that a Member takes any action to enforce the terms of this Article 10,the Association shall not be in any way obligated to join in such action, or pay any of the attorney's fees, costs and expenses incurred in such action. ARTICLE NINE: PARTY WALLS This Article shall apply to party walls between adjoining Residences. (The Condominium Units contained in Lots 1 and 24 are excluded from this provision) A "Party Wall" is any wall of a Building which is shared by two Residences and which runs along the Lot line of the two Lots upon which the Residences sharing the wall are located.For purposes of this Section,the term Party Wall includes everything,if anything, located within such wall (such as studs,framing,insulation,soundproofing material,pipes,wires,joints,junction boxes and other materials or equipment related to utilities) and below the wall (such as the surface of the ground and footing and/or foundations location on the ground). DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 26 of 46 1:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd g f Section One: Maintenance. The ownership of each Party Wall shall be divided between the adjoining owners so that each owns to the center of the wall, irrespective of whether the center of the wall is located exactly on the boundary line of that owner's Lot and each owner shall maintain and repair such owner's portion of the Party Wall except as otherwise provided below. Section Two: Damage to Party Wall Without Significant Damage to Dwelling Units. A. If a Party Wallis damaged and (1) the damage was not caused by the fault or negligence of either of the adjoining owners of the wall, and (2) neither Residence has suffered Substantial Damage(defined below)other than that to the Party Wall,and(3)the damage is not insured by the Association's property insurance policy, then the owners of the adjoining Residences shall each pay one-half(1/2) of the cost of repairing or rebuilding the Party Wall. The wall shall be repaired or rebuilt to substantially the same condition and in the same location as the Party Wall was in immediately before the damage. "Substantial Damage" shall mean damage which is estimated to coat more than$5,000,00 to repair, B. If a Party Wall is damaged and (1) the damages was caused by the fault or negligence of one (but not both) of the adjoining owners of the wall, and (2) neither Residence has suffered Substantial Damage other than that to the Party Wall, then the owner that caused the damages shall at his/her Sole cost and expense repair or rebuild the Party Wall to as nearly as practicable the same condition and in the same location as the Party Wall was in immediately before the damage and shall repair the resultant damage, if any, to the other Residence. Each owner of the adjoining Residences shall the right to full use of the Party Wall as repaired or rebuilt. Section Three: Damage to Party Wall with Other Damage to a Residence. If a Party Wall is damaged and either or both of the adjoining Residences suffers Substantial Damage, the Party Wall will be repaired and rebuilt with costs shared as provided in this Section and the cost of repairing the other damage to each Residence shall be paid by the owner of each such Residence. Section Four: Access to Party Wall Interior. Each owner shall have the right, at its sole expense, to drill into, cut into or otherwise gain access to the interior of a Party Wall for the purpose of maintaining, repairing or restoring and, if consent if first obtained pursuant to this Section,remodeling or altering,water,utility,soundproofing or other services or amenities to the owner's Residence subject to(1) the obligation to restore the Party Wall to the same DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 27 of 46 I\DATA\D\BHDWABartels,Jonathan\Plat\Declaration 07-01-10.wpd g • condition it was in immediately before the act and (2) responsibility to the owner of the adjoining Residence for any damages caused thereby. Section Five: No Alteration.No owner may make any changes or alterations to a Party Wall which effect the adjoining Residence without the prior written consent of the owner of the adjoining Residence and proper approvals from the City of Lakewood. Section Six: Easement for Inadvertent Encroachment. Each owner shall have an easement over the adjacent Lot for the following reasons: A. Top have the Party Wall remain and be rebuilt in its same location as when originally built; B. To use, for Party Wall purposes,that portion of the adjoining Residence upon which the Party Wall is built; and C. For access through,in,or upon any portion the adjoining Residence reasonable necessary to effect repairs to,maintenance or reconstruction of the Party Wall, or repair or maintenance to that portion of any foundation,exterior wall or roof of the structure which meets with, adjoins or is connected to the Party Wall. Section Seven: Protection of Party Wall. Each owner shall take all steps reasonably required to, upon or in the owner's Residence to protect the Party Wall from infestation of, damage from or exposure to:rain,snow,hail,wind and other weather condition;moisture;dry rot;rodents;termites and other damaging or dangerous vermin or insects;and deterioration or other injury, whether sudden or cumulative, from any use of or condition in the owner's Residence except wear and tear incident to ordinary and prudent use of the Residence. Section Eight: Rights in the Event of Default. If an owner fails to perform any actor make any payment required by this Section, and such failure continues after five days' prior written demand from adjoining owner(s),then the adjoining owner(s)may cure the default and charge the defaulting owner for the cost of the cure, which shall be due upon demand, with interest on all sums due at the rate of twelve percent (12%) per annum until repaid. Further, the curing owner(s) shall have a lien upon the defaulting owner's property, which may be recorded and,if recorded,shall contain the information required in a mechanic's lien.The lien may be foreclosed in the manner as provided and with the priority with respect to mechanic's liens,In addition,the curing owner(s)shall have the right of access to,through,in or upon and use of the Residence and Lot of the defaulting owner for the purpose of performing the act. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 28 of 46 I\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd g • ARTICLE TEN: ALTERATIONS TO OR REBUILDING OF A RESIDENCE. Section One: Uniformity of Appearance. Declarant has built or is building a series of single family on the Property as a unified development.One of the purposes of this Declaration is to assure purchasers that Residences in this project will maintain a uniformity of use and appearance of the exterior of the Residences,including with regard to paint colors and exterior finishes. Section Two: Uniformity of Design. Following the construction of the initial Residences by Declarant, no Residence shall be altered (including rebuilding of a damaged Residence) unless the alteration is designed and constructed to match the design and construction of the previous Residence and other Residences on the Property. If an owner wishes to alter the exterior appearance or design of a Residence(including without limitation, paint color), the owner must submit to the Association a detailed information regarding the proposed design and appearance of the alteration. The owner shall be permitted to make the alternation(s)only if the owners of a majority of the Lots,including the owner(s)whose Party Walls adjoin the altered Residence,approve the design and detailing of the alteration. owners acknowledge that in rebuilding or modifying the Residence on their Lot,there might be clear demarcation or breaks in materials or surfaces between their Residences and that adjoining Residence, and that it is the rebuilding owner's obligation (at such owner's sole cost) to construct or reconstruct the Residences such that surface materials, textures, colors and finishes flow from one Residence to the adjoining Residences without disruption. ARTICLE ELEVEN: COMPLIANCE WITH GOVERNING DOCUMENTS Section One: Strict Compliance. Each person who occupies a Lot within the Development as an owner or Occupant, shall comply strictly with the provisions of the Governing Documents and with all decisions of the Board (referred to in the Declaration as "Board Decision")adopted pursuant to the Governing Documents,including a decision made after a hearing required under the Declaration.The acceptance of a deed,conveyance,or lease, or the entering into occupancy of any Lot shall constitute an agreement that the provisions of the Governing Documents, are accepted and ratified by the owner or Occupant and that all provisions of the Governing Documents shall be deemed and taken to be covenants running with the land and shall bind any person having at any time any interest or estate in the Lot, as though the provisions were recited and stipulated at length in each and every deed,conveyance or lease of the Lot. Section Two: Failure to Insist on Strict Performance No Waiver. The Board shall exercise its business judgment in determining what actions to take in the enforcement of the Governing Documents. The failure of the Board to insist upon the strict performance of any DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd Page 29 of 46 of the terms,covenants,conditions or restrictions of the Governing Documents,or to exercise any right or option contained In the Governing Documents,or to serve any notice or to institute any action, shall not be constructed as a waiver or relinquishment for the future of that term, covenant,condition or restriction,but the term,covenant,condition or restriction shall remain in full force and effect. The receipt by the Board of any Assessment from an owner with knowledge of any breach shall not be deemed a waiver of a breach,and no waiver by the Board of any provision of the Governing Documents shall be deemed to have been made unless expressed in writing and signed by the appropriate officers on behalf of the Board. Section Three: Enforcement Procedures. In the event of any violation by an owner or Occupant,the Association and any aggrieved owner shall have all of the rights and remedies which may be provided for in the Governing Documents, or which maybe available at law or in equity. Section Four: Internal Enforcement Procedures. A. Complaint Review Panel. Except as hereinafter provided, the Board, or a committee appointed by the Board,shall serve as the Complaint Review Panel ("Panel") and shall investigate,hear and determine all complaints concerning violations by any owner or Occupant pursuant to procedures set forth in reasonable policies adopted by the Board from time to time. The Panel is authorized to order compliance with the applicable provision(s) of the Governing Documents or a Board Decision. Any member of the Panel who is incapable of impartial,disinterested and objective consideration of a particular complaint/case shall disclose this to the Panel and shall remove himself or herself from participation in the proceedings and have it so recorded in the minutes. B. Informal Dispute Resolution Procedure. The Association and owners intend that an informal process be followed prior to the initiation of a formal hearing process against any party subject to the Governing Documents.To that end,any member,employee or agent of the Association has the authority to request that an owner or Occupant of any Lot cease and correct any act or perform any omission which appears to be in violation of the Governing Documents or of any Board Decision. The informal request must be made, in writing, prior to initiation of the formal hearing process. No formal hearing process shall be initiated unless the owner or Occupant against whom the complaint has been lodged has been provided ten(10) days DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I.\DATA\D\BHD\N\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 30 of 46 after the informal notice has been given to correct the condition or perform the act which was the subject of the informal notice. Section Five: Judicial Enforcement. Failure to comply with a provision of the Governing Documents,or a decision of the Board or Complaint Review Panel shall be grounds for an action to recover sums due for damages, fines or costs incurred by the Association in connection with the proceedings before the Panel,including reasonable attorneys'fees incurred by the Association. Such action shall be maintainable by the Association(acting through the Board) on behalf of the owners. Such violation shall further be sufficient grounds for the granting of injunctive relief to such an action and a showing of irreparable harm shall not be a prerequisite to issuance of such injunctive relief.Nothing contained in this Declaration shall be deemed or construed as a waiver of the Association's right to bring a judicial action without first exhausting the Association's internal enforcement procedures in cases where the Board deems immediate judicial action to be necessary or appropriate. In the event that the Board fails or refuses, after demand by an aggrieved owner or Occupant, to take appropriate action to enforce compliance with any provision of the Governing Documents or any Board or Panel decision, an aggrieved owner or Occupant on his or her own may maintain an action for damages or injunctive relief against the part failing to comply. In an judicial action to enforce compliance with the Governing Documents,or a decision of the Board or Panel,the prevailing party, including the Association, shall be entitled to recover from the non-prevailing party, whether or not the action proceeds to Judgment, its costs and a reasonable sum for attorneys' fees incurred in connection with the action, in addition to actual costs. Section Six: Enforcement Against Occupants.The occupancy of a Lot by a tenant and every lease shall be subject to the Governing Documents of the Association. By entering into occupancy of a Lot under a lease or rental agreement,a tenant becomes an Occupant of the Lot and agrees to be bound by the Governing Documents. A breach of the Governing Documents by a tenant shall be deemed to be a breach of his or her lease. In the event that a Violation by a tenant or other Occupant,the Board may notify the owner,and the tenant or other Occupant, of the violation and demand that the violation be remedied through the owner's efforts within twenty (20) days after the notice. The owner shall, within five (5) days of such notice, serve upon the tenant or other Occupant in the manner provided by law, a notice to comply or quit the premises.If the Violation is not remedied within the twenty(20)day period,then the owner shall immediately thereafter, at his or her cost and expense, institute and diligently prosecute an unlawful detainer action against the tenant or other Occupant.The unlawful detainer action shall not be compromised or settled without the prior written approval of the Board. If the owner fails to fulfill the foregoing obligation,then the Board shall have the right, but not the duty, to institute and prosecute an unlawful detainer action as attorney-in-fact for the owner and at the owner's sole cost and expense, including all legal fees incurred. The costs and expenses of the action shall be deemed to constitute Assessments secured by a lien on the Lot DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 31 of 46 'DATA\D\BHDVd\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd g involved as well as the personal obligation of the owner, and collection thereof may be enforced by the Board in the same manner as any other Assessment. Each and every owner does hereby automatically and irrevocably name, constitute, appoint and confirm the Association as his or her attorney-in-fact for the purposes described in this Section. ARTICLE TWELVE: LIMITATION OF LIABILITY So long as a Director, Officer, Association member, Manager or Declarant, acting on behalf of the Association, has acted in good faith, without willful or intention misconduct, upon a basis of such actual information as is then possessed by such Person, then no such Person shall be personally liable to any owner, or to any other Person, including the Association, for any damage, loss, or prejudice suffered or claimed on account of any act, omission, error, or negligence of such Person. ARTICLE THIRTEEN: INDEMNIFICATION Each Officer, Director, Manager, or Association member action on behalf of the Association shall be indemnified by the Association against all expenses and liabilities, including attorneys'fees,reasonably incurred by or imposed in connection with any proceeding to which such person may be a party,or in which such person may become involved,by reason of holding or having held such position,or any settlement thereof,whether or not such person holds such position at the time such expenses or liabilities are incurred, except in such cases wherein such Officer, Director, Manager or Association member adjudged guilty of willful misfeasance in the performance of his or her duties;provided,that in the event of a settlement, the indemnification shall apply only when the Association approves such settlement and reimbursement as being for the best interests of the Association. ARTICLE FOURTEEN: EASEMENTS Section One: Easement for Encroachments. Each Lot is, and the common areas are subject to an easement for encroachments created by construction, settlement,and overhangs as designed or constructed by the Declarant, and a valid easement for encroachments and for maintenance of the same as long as said improvements remain. Section Two: Easements on Exterior Lot Lines. In addition to easements reserved on any plat of the real property or shown by instrument of record, easements for utilities and drainage are reserved for the Declarant or its assigns, over a five-foot wide strip along each side of the interior Lot lines, and ten feet over the rear and front of each Lot, and over,under, and on the common areas. Within all of the easements, no structure,planting or fill material shall be placed or permitted to remain which may,in the opinion of the Board or ACC,damage DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 32 of 46 or interfere with the installation and maintenance of utilities, or which may obstruct or retard the flow of water through drainage channels and the easements. The easement area of each Lot and all improvements within it shall be maintained continuously by the owner of such Lot, except those improvements for which a public authority, utility company or the Association is responsible. Section Three: Association's Easement of Access. The Association,the ACC,and its agents shall have an easement for access to each Lot and to the exterior of any building located thereon during reasonable hours as may be necessary for the following purposes: (a)cleaning, maintenance, or repair of any home or Lot as provided in this Declaration; (b) repair, replacement or improvement of any common area accessible from that Lot; (c) emergency repairs necessary to prevent damage to the common areas or to another Lot, or to the improvements thereon; (d)cleaning,maintenance,repair or restoration work which the owner is required to do but has failed or refused to do; (e) cleaning, maintenance, repair and restoration work, which the Association is obligated to perform under the terms of this Declaration; and (f) all acts necessary to enforce these Covenants. Section Four: Easement for Declarant. Declarant shall have an easement across all common areas for ingress,egress,storage and placement of equipment and materials,and other actions necessary or related to the development or maintenance of the real property. ARTICLE FIFTEEN: MORTGAGEE PROTECTION Section One: Mortgagees. Notwithstanding and prevailing over any other provisions of the Declaration, the Association's Articles of Amendment of Incorporation or Bylaws, or any rules,regulations or management agreements,the following provisions shall apply to and benefit each Institutional First Mortgagee("Mortgagee")which holds a Mortgage given for the purpose of obtaining funds for the construction or purchase of a housing unit on any Lot or the improvement of any Lot. Section Two: Liability Limited. The Mortgagee entitled to the protection hereof shall not in any case or manner be personally liable for the payment of any assessment or charge, nor for the observance or performance of any covenant, restriction, rule, Association Article of Incorporation or Bylaw, or management agreement, except for those matters which are enforceable by injunctive or other equitable relief,not requiring the payment of money,except as hereinafter provided. Section Three: Mortgagees's Rights During Foreclosure. During the pendency of any proceeding to foreclose the Mortgage,the Mortgagee or the receiver,if any,may exercise any or all of the rights and privileges of the owner of the mortgaged Lot, including but not limited DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 33 of 46 t to the right to vote as a Member of the Association to the exclusion of the owner's exercise of such rights and privileges. Section Four: Acquisition of Lot by Mortgagee. At such time as the Mortgagee shall become entitled to possession of the Lot,the Mortgagee shall be subject to all of the terms and conditions of the Declaration, and the Articles, Bylaws, rules and regulations of the Association,including but not limited to the obligation to pay for all assessments and charges accruing thereafter,in the same manner as any owner;provided,however,the Mortgagee shall acquire the title to said Lot free and clear of any lien authorized by or arising out of any provisions of the Declaration which secure the payment of any assessment for charges accrued prior to the date the Mortgagee became entitled to possession of the Lot. Section Five: Reallocation of Unpaid Assessment. If it is deemed necessary by the Association, any unpaid assessment against a housing unit foreclosed against may be treated as a common expense of other Lots. Any such unpaid assessment shall continue to exist as a personal obligation of the defaulting owner of the respective Lot to the Association. Section Six: Subordination. The liens for assessments provided for in this instrument shall be subordinate to the lien of any Mortgage, or other security interest placed upon a Lot or housing unit as a construction loan security interest or as a purchase price security interest, and the Association will,upon demand,execute a written subordination document to confirm the particular superior security interest. Section Seven: Mortgagee's Rights. Any Mortgagee shall have the right on request therefor to(a)inspect the books and records of the Association during normal business hours; (b)receive an annual audited financial statement of the association within(90)days following the end of any fiscal year;and(c)receive written notice of all meetings of the Association and designate a representative to attend all such meeting. Section Eight: Limitation on Abandonment of Common Areas. The Association shall not, without the prior written approval of sixty-seven percent(67%) of the Mortgagees, seek to abandon the common areas for reasons other than substantial destruction or condemnation of the property. Section Nine: Notice. If such notice has been requested in writing, Mortgagees shall be entitled to timely written notice of:(a)substantial damage or destruction of any housing unit or any part of the common areas or facilities; (b) any condemnation or eminent domain proceedings involving any housing units or any portion of common areas or facilities; (c)any default under this Declaration or the Articles, Bylaws or rules and regulations of the Association by an owner of any housing unit on which it holds the mortgage which is not cured DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 34 of 46 1\DATA\D\BI-ID\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd g within thirty (30) days; (d) any sixty (60) day delinquency in the payment of assessments or charges owed by the owner of any housing unit on which it holds the mortgage; (e) ten(10) days' prior written notice of any lapse,cancellation or material modification of any insurance policy or fidelity bond maintained by the Association;and(f)any proposed action that requires the consent of a specific percentage of Mortgagees. ARTICLE SIXTEEN: MANAGEMENT CONTRACTS Each Member hereby agrees that the Association and the ACC may enter into agreements for the performance of any or all of the functions of the Association and the ACC with such persons or entities as the Association deems appropriate; however, any agreement for professional management of the real property,or any other contract providing for services by the Declarant must provide for termination by either party without cause after reasonable notice. ARTICLE SEVENTEEN: INSURANCE Section One: Coverage. The Association may purchase as a common areas expense and shall have authority to and may obtain insurance for the common areas against loss or damage by fire or other hazards in an amount sufficient to cover the full replacement value in the event of damage or destruction. It may also obtain a comprehensive public liability policy covering the common areas. The comprehensive public liability coverage shall be in an amount to be determined by the Association. It may also obtain insurance to cover the Board, the ACC,its agents and employees from any action brought against them arising out of actions taken in furtherance of the Association's duties under this Declaration. All insurance if required shall meet the specific requirements of any federal mortgage agency regarding qualifications of insurance carriers. Following the Development Period,all such insurance coverage shall be written in the name of the Association as trustee for each of the Members of the Association. The Association shall review the adequacy of the Association's insurance coverage at least annually. All policies shall include a standard mortgagee's clause and shall provide that they may not be canceled or substantially modified (including cancellation for nonpayment of premium) without at least ten (10) days prior written notice to any and all insured named therein, including owners and Institutional First Mortgagees that have requested notice. Section Two: Replacement, Repair After Loss. In the event of the damage or destruction of the common areas covered by insurance written in the name of the Association, the Association may,upon receipt of the insurance proceeds,and to the extent of such proceeds contract to rebuild or repair such damaged or destroyed portions of the common areas to as DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS& RESTRICTIONS Page 35 of 46 I-\DATA\D\BHD\ \Bartels,Jonathan'Plat\Declaration 07-01-10.wpd g good a condition as they were when the loss occurred; provided, however, that the Association's election not to rebuild the common areas shall require the approval of two-thirds (2/3) of the Association. The Association may in its sole discretion contract with any contractor for reconstruction or rebuilding of such destroyed portions of the common areas. Section Three: Responsibility of Owner. Each Lot Owner(specifically excluding the Condominiums Units created in Lots 1 and 24) shall maintain a policy of property insurance insuring all building and improvements within said Lot and shall be at a minimum and subject to deductible amounts consistent with the Fannie Mae requirements, provided all risk and special cost of loss coverage is in an amount equal to the full replacement cost of said residence shall be provided. In addition, the Association shall be named as an additional insured on said policies so as to provide that in the event of a loss occasioned by casualty insured against those proceeds shall be available to the Association to repair and restore the damaged portion of the building and residence which is covered under said insurance policy. The owner of said building or residence of the Lot upon which is it is located shall have the obligation to rebuilt and restore in the event of fire or other casualty insured against. Section Four: Liability Insurance. The policy of public liability insurance shall insure the Board,the Association,the owners,and the managing agent,and cover all of the common in the Plat with a"severability of interest endorsement" or equivalent coverage which would preclude the insurer from denying the claim of an owner because of the negligent acts of the Association or of another owner,and shall cover liability of the insureds for property damage and bodily injury and death of persons arising out of the operation, maintenance, and use of the common,liability in connection with employment contracts of the Association,host liquor liability, employers' liability(stop gap) insurance, non-owned and hired automobile liability insurance, and such other risks as are customarily covered with respect to projects of similar construction, location and use. The limits of liability shall be in amounts generally required by mortgagees for projects of similar construction, location and use but shall be at least $1,000,000.00 bodily injury and property damage per occurrence and $2,000,000.00 general aggregate. Section Give: Insurance Trustee;Power of Attorney. The additional insured under the policies referred to above which shall be maintained by the owner shall be the Association,as trustee for each of the owners. The insurance proceeds may be made payable to any trustee with which the Association enters into an insurance trust agreement,or any successor trustee, who shall have exclusive authority to negotiate losses under the policies. The proceeds must be disbursed first for the repair of restoration of the damaged property, and Lot owners and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired and restored. Each owner appoints the Association, or any insurance trustee or successor trustee designated by the DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 36 of 46 Association,as attorney-in-fact for the purpose of purchasing and maintaining such insurance, including the collection and appropriate disposition of the proceeds thereof, the negotiation of losses and execution of releases of liability, the execution of all documents and the performance of all other acts necessary to accomplish such purposes. In the event the insurance proceeds are insufficient to repair or restore the building in which the residential units are located,then each residential unit owner shall be assessed by the association equally the difference and said residential unit shall pay the same to the Association as a special assessment. ARTICLE EIGHTEEN: DAMAGE OR DESTRUCTION; RECONSTRUCTION Section One: Obligation to Rebuild. If all or any portion of any common areas is damaged, the Association shall repair the same, and any uninsured portion of such cost shall be a common expense. If any residence is damaged or destroyed by fire or other casualty which shall be the duty of the Association to rebuild, repair or reconstruct the residence in a manner which will restore it substantially to its appearance and condition immediately prior to the casualty,acting with all reasonable diligence and as soon as reasonably possible. Except as provided by statute, hazard insurance proceeds received by the Board shall be used exclusively for repair,replacement or reconstruction unless the Board and seventy-five(75%) percent of the owners, including the owner of any unit which has been damaged or destroyed have given their prior written approval to another use. Section Two: Liability for Uninsured Amounts. Notwithstanding any other provision of this Declaration,and except to the extent that a lack of insurance results from the negligence or breach of a duty to insure the Board: (a) Liability for the amount of damage within the limits of any applicable insurance deductible or otherwise uninsured shall be the responsibility of an individual Owner where the damage results from a negligent or intentional action or omission by an Owner, or that Owner's Tenant, or the family, servants, employees, agents, visitors or licensees of that Owner or Tenant,or from the failure of or failure to maintain any portion of the Unit,including any applicable, equipment, or fixture in a Unit, which that Owner is responsible to maintain in good working order and condition. The amount to be paid by the Unit Owner shall be a special Assessment allocated that Owner. (b) Except as provided in Paragraph (a) above, or where the damage is a result of the sole fault of the Association, the liability for the amount of damage within the limits of any applicable insurance deductible on a policy of insurance issued to the Association shall be the responsibility of an individual Owner where the damage involved is limited solely DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 37 of 46 1\DATA\D\BHD\ \Bartels,7onathanWlat\Declaration 07-01-10.wpd g 4 to damage to that Owner's Unit. The amount to be paid by the Unit Owner shall be a special Assessment allocated that Owner. (c) Except as provided in Paragraphs(a)and(b)above,or where the damage is a result of the sole fault of the Association, liability for the amount of damage within the limits of any applicable insurance deductible on a policy of insurance issued to the Association shall be pro-rated between the Association and any involved Owners in proportion to the relative amounts of damage to the Common Areas and to each of the affected Units,including the Limited Common Areas assigned to such Unit or Units where the damage involves both the Common Areas and/or one or more Units or the Limited Common Areas assigned to a Unit or Units. The amount to be paid by the Unit Owner shall be a special Assessment allocated that Owner. ARTICLE NINETEEN: RULES AND REGULATIONS The Association and/or its Board of Directors is hereby authorized and empowered to adopt rules and regulations governing the use of the real property and the personal conduct of the Members and their guests thereon, and to establish penalties for the infraction thereof, in the manner described by RCW Chapter 64.38,the Bylaws and any resolutions passed by the Board. All Lot owners shall be given written notice of the rules and regulations in the manner required by RCW Chapter 64.38. ARTICLE TWENTY: REMEDIES AND WAIVER Section One: Remedies Not Limited. The remedies provided herein, including those for collection of any assessment or other charge or claim against any Member, for and on behalf of the Association, the ACC, or Declarant, are in addition to, and not in limitation of, any other remedies provided by law. Section Two: No Waiver. The failure of the Association, the ACC, the Declarant or of any of their duly authorized agents or any of the owners to insist upon the strict performance of or compliance with the Declaration or any of the Articles,Bylaws or rules or regulations of the Association, or to exercise any right or option contained therein, or to serve any notice or to institute any action or summary proceedings, shall not be construed as a waiver or relinquishment of such right for the future, but such right to enforce any of the provisions of the Declaration or of the Articles, Bylaws or rules or regulations of the Association shall continue and remain in full force and effect. No waiver of any provision of the Declaration or of the Articles,Bylaws,rules or regulations of the Association shall be deemed to have been made, either expressly or implied, unless such waiver shall be in writing and signed by the DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I:\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 38 of 46 Board of Directors of the Association pursuant to authority contained in a resolution of the Board of Directors. ARTICLE TWENTY-ONE: CONDEMNATION In the event of a partial condemnation of the common areas,the proceeds shall be used to restore the remaining common areas, and any balance remaining shall be distributed to the Association. In the event that the entire common areas is taken or condemned,or sold,or otherwise disposed of in lieu of or in avoidance thereof,the condemnation award shall be distributed to the Association. No proceeds received by the Association as the result of any condemnation shall be distributed to a Lot owner or to any other party derogation of the rights of the First Mortgagee of any Lot. ARTICLE TWENTY-TWO: GENERAL PROVISIONS 1. Binding Effect. All present and future owners or occupants of Lots shall be subject to and shall comply with the provisions of this Declaration, and the Bylaws and rules and regulations of the Association, as they may be amended from time to time, are accepted and ratified by such owner or occupant, and all such provisions shall be deemed and taken to be covenants running with the land and shall bind any person having at the time any interest or estate in such Lot, as though such provisions were recited and stipulated at length in each and every deed and conveyance or lease thereof 2. Enforcement by Court Action. The Association, the Declarant, ACC, or any Lot owner shall have the right to enforce, by any proceedings at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. Should the Association or any owner employ counsel to enforce any of the foregoing covenants, conditions, reservations, or restrictions, all costs incurred in such enforcement, including a reasonable fee for counsel, shall be paid by the owner found to be in violation of said condition,covenants,reservation,or restriction,or found to be delinquent in the payment of said lien or charge. 3. Enforcement by Self Help. The Declarant, the ACC, the Association, or the duly appointed agent of either, may enter upon any Lot, which entry shall not be deemed a trespass, and take whatever steps are necessary to correct a violation of the provisions of this DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 39 of 46 I.\DATA\D\BHD\M\Bartels,lonathan\PIat\Declaration 07-01-10.wpd g . n ■ Declaration, provided, this provision shall not be construed as a permission to breach the peace. 4. Condition Precedent to Action. Prior to taking action either by court or by self help, written notice shall be given to the offending Lot owner. Such notice shall specify the nature of the offense and shall also specify the action necessary to cure. Such action shall also provide a reasonable opportunity to cure which,except in the case of an emergency, shall not be less than 30 days. 5. Expenses of Action. The expenses of any corrective action or enforcement of this Declaration,if not paid by the offending owner within thirty(30)days after written notice and billing, may be filed as a line upon such Lot, enforceable as other liens herein. 6. Owner Objection. Should a Lot owner object to the complaints of the Declarant, the Association or ACC in writing within a period of fifteen (15) days after the complaint is made and,further, should the parties not agree on property maintenance or other matters complained of, the matter shall be submitted to arbitration. The arbitration shall be binding upon the parties. If the parties cannot agree upon an arbitrator,each party shall choose one arbitrator and they, in turn, shall choose a third. The arbitration shall be conducted in accordance with the rules of arbitration under the laws of the State of Washington in existence at the time of any such arbitration. 7. Costs and Attorneys Fees. In the event of legal action,the prevailing party shall be entitled to recover actual costs and attorney fees. For the purposes of this Declaration"legal action"shall include arbitration,law suit,trial,appeals,and any action,negotiations,demands, counseling or otherwise where the prevailing party has hired an attorney. It is the intent of this provision to reimburse the prevailing party for all reasonable attorney fees and actual costs incurred in defending or enforcing the provisions of this Declaration, or the owner's rights hereunder. 8. Failure to Enforce. No delay or omission on the part of the Declarants or the owners of other Lots in exercising any rights,power, or remedy provided in this Declaration shall be construed as a waiver or acquiescence in any breach of the covenants, conditions, reservations, or restrictions set forth in the Declaration. No action shall be brought or maintained by anyone whatsoever against the Declarants for or on account of its failure to bring any action for any breach of these covenants,conditions,reservations,or restrictions,or for imposing restrictions which may be unenforceable. 9. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall not affect any other provisions which shall remain in full force and effect. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1\DATA\D\BHD\M\Bartels,Jonathan'PIat\Declaration 07-01-10 wpd Page 40 of 46 I I _l 10. Interpretation. In interpreting this Declaration,the term"Person"may include natural persons, partnerships, corporations, Associations, and personal representatives. The singular may also include the plural and the masculine may include the feminine,or vise versa, where the context so admits or requires. This Declaration shall be liberally construed in favor of the party seeking to enforce its provisions to effectuate the purpose of protecting and enhancing the value, marketability, and desirability of the real property by providing a common plan for the development of Galloway at the Highlands. 11. Term. This Declaration shall be effective for an initial term of 30 years, and thereafter by automatic extension for successive periods of 10 years each,unless terminated, at the expiration of the initial term or any succeeding 10 year term by a termination agreement executed by the then owners of not less than 75%of the Lots then subject to this Declaration. Any termination agreement must be in writing, signed by the approving owners, and must be recorded with the County Auditor. 12. Perpetuities. In the event that any provision of this Declaration violates the rule against perpetuities, such provision shall be construed as being void and of no effect as of twenty-one(21)years after the death of the last surviving incorporator of the Association, or twenty-one (21 ) years after the death of the last survivor of all of the said incorporators' children and grandchildren who shall be living at the time this instrument is executed, whichever is later. 13. Method of Notice. Any notice required by the Declaration or the Articles or Bylaws of the Association or the rules and regulations adopted by the Association shall be deemed properly given when personally delivered,deposited in the United States mail,postage prepaid, or when transmitted by facsimile. 14. Successors and Assigns. This Declaration binds and is for the benefit of the heirs, successors and assigns of Declarant, the Declarant, the Members and the owners. ARTICLE TWENTY-THREE: AMENDMENT AND REVOCATION Section One: Exclusive Method. This instrument may be amended, and partially or completely revoked only as herein provided or otherwise provided by law. Section Two: Amendment by Declarant. Notwithstanding any other provision of this Declaration, this Declaration can be amended at any time by the Declarant prior to the time that 75% of the Lots have been sold. That all Lot owners agree to be bound by such amendment or amendments as made by the Declarant pursuant to this provision. Thereafter this Declaration can be amended only as provided for in this Declaration. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 41 of 46 1.\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10.wpd g • • i 1 Section Three: Certain Rights of Declarant. For such time as the Declarant shall own Lots,there shall be no amendments to the Declaration,Articles of Incorporation,By-Laws,or any rules or regulations of the Association which (a) discriminate or tend to discriminate against Declarant's rights as an owner; (b)amend any provisions of the Declaration, Articles of Incorporation or By-Laws which in any manner alters Declarant's rights or status; (c) alter the character and rights of membership or the rights of the Declarant under this Declaration; (d) alter previously recorded or written agreements with public or quasi-public agencies regarding easements and rights of way; (e)alter its rights relating to architectural controls; (f) alter the basis for assessments; (f)alter the provisions of the use restrictions as set forth in this Declaration; or(g) alter the number or selection of directors as established in the By-Laws. Section Four: Prior Approval by FHA/HUD. Regardless of whether or not 75% of the Lots have been sold, in the event any loan with respect to any Lot or building constructed thereon is insured through either the Federal Housing Administration or the Department of Veterans Affairs or any programs sponsored by either such agency, then the insuring agency must give written approval before any of the following actions can be approved by either the Declarant or the Lot owners: a) Annexation of additional real property b) Dedication of any real property c) Amendment to this Declaration Section Five: Voting. This Declaration may be amended at any annual meeting of the Association, or at a special meeting called for such purpose, if sixty-seven percent (67%) or more of the owners vote for such amendment, or without such meeting if all owners are notified in writing of such amendment,and if sixty-seven percent(67%)or more of the owners vote for such amendment by written ballot. Notice of any proposed amendment shall be given to all owners not less than ten (10) days prior to the date of the annual meeting or of any special meeting at which the proposed amendment shall be considered.Notwithstanding any of the foregoing, fifty-one percent (51%) of all Institutional First Mortgagees who have requested notification of amendments must give prior written approval to any material amendment to the Declaration or Bylaws, including any of the following: 1. Voting rights; 2. Assessments, assessment liens and subordination of such liens; 3. Reserves for maintenance, repair and replacement of common areas; 4. Insurance or fidelity bonds; DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 42 of 46 I:\DATA\D\BHD\M\Bartels,lonathan\Plat\Declaration 07-01-10 wpd g t 1 5. Responsibility for maintenance and repair; 6. Contraction of the project or the withdrawal of property from the real property; 7. The boundaries of any Lot; 8. Leasing of housing units other than as set forth herein; 9. Imposition of any restrictions on the right of an owner to sell or transfer his or her Lot; 10. Any decision by the Association to establish self-management when professional management had been required previously by an Institutional First Mortgagee; 11. Restoration or repair(after hazard damage or partial condemnation)in a manner other than that specified in this Declaration. 12. Any action to terminate the legal status of the real property after substantial destruction or condemnation occurs; or 13. Any provisions which are for the express benefit of Institutional First Mortgagees. Section Six: Effective Date. Amendments shall take effect only upon recording with the Pierce County Auditor. Section Seven: Protection of Declarant. For such time as Declarant shall own Lots located in the real property there shall be no amendments to the Declaration, the Articles of Amendment of Incorporation, the By-Laws of the Association, or any rules and regulations adopted by the Association which: 1. Discriminate or tend to discriminate against the Declarant's rights. 2. Change Article One ("Definitions") in a manner which alters the Declarants right or status. 3. Alter the character and rights of membership or the rights of the Declarant as set forth in this Declaration. 4. Alter its rights as set forth in this Declaration relating to architectural controls. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 43 of 46 1\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd g 4 5. Alter the basis for assessments, or the Declarant's exemption from certain assessments. 6. Alter the number or selection of Directors as established in the By-Laws. 7. Alter the Declarant's rights as they appear under this Declaration. Section Eight: Notice. Any notice required hereunder shall be deemed effective when personally delivered or three days after mailing by certified and regular mail to the owner of public record at the time of such mailing to such owner's address as it appears on the Pierce County Assessor's tax records and to the street address of the Lot(s)herein. Notices to lenders shall be sent to the last address the lender has given to the Association. The Association is not required to provide notice of any matter to any lender who has not notified the Association in writing of such lender's desire to receive notice, and/or has not given the Association written notice of the lender's address for receipt of notices. The Association shall not undergo investigation outside of its own records into the name or location of any lender or lienholder. IN WITNESS WHEREOF, the undersigned have caused this Declaration to be executed this day of � �� , 2010. Galloway at the Highlands I, LLC, a Washington limited liability company 1 By: I/'1 A2 Jonat -n Bartels, Man. -r STATE OF WASHINGTON ) )§ COUNTY OF PIERCE ) On this day of Q ,2010,before me,the undersigned, a Notary Public in and for the State of Washington,duly commissioned and sworn,personally appeared Jonathan Bartels,to me known to be Manager of Galloway at the Highlands I,LLC, the Washington limited liability company that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of the limited liability company, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS 1\DATA\D\BHD\M\Bartels,Jonathan\Plat\Declaration 07-01-10 wpd Page 44 of 46 • • WITNESS my hand and official seal hereto affixed the day and year first above written. / / ,,����•�••.,,,�� PrintedNa e: t �, �/..L_� ,IA.L . .�' ,w •, NOTARY PUBLI I in . •a for t' e ate of a.,r.•'' ''••,��1, Washington,residing at: 4a � •`� tipTA • ;1:My Commission Expires WO'4941/ PUBLA Z moo 400 • ne DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS Page 45 of 46 1\DATA\D\BHD\M\Bartels,lonathan\Plat\Declaration 07-01-10 wpd g • r 'at, Exhibit "A" Legal Description (PER STEWART TITLE GUARANTY CO. SUBDIVISION GUARANTEE NO.: G-2631- 12471 / ORD. NO.: 984676, DATED 20 APR. 2010) THE SOUTH 165 FEET OF THE NORTH 495 FEET OF THE EAST 660 FEET OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 16, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON; EXCEPT THE EAST 30 FEET THEREOF; AND EXCEPT THE WEST 206 FEET THEREOF. DECLARATION OF PROTECTIVE COVENANTS,CONDITIONS, EASEMENTS&RESTRICTIONS I\DATA\D\BHD'J(\Bartels,Jonathan'Plat\Declaration 07-01-10 wpd Page 46 of 46 J