Article I Name and Location

The name of the corporation is KINGSGATE HIGHLANDS, DIVISIONS NUMBER THREE AND NUMBER FOUR, HOMES ASSOCIATION, hereinafter referred to as the “Association”. The principal office of the corporation shall be located at 11913 NE 142nd Place #7, Kirkland, Washington, 98034, but meetings of members and trustees may be held at such places within the State of Washington, as may be designated by the Board of Trustees.

Article II Definitions

Section 1. “Association” shall mean and refer to KINGSGATE HIGHLANDS, DIVISIONS NUMBER THREE AND NUMBER FOUR, HOMES ASSOCIATION, its successors and assigns.

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

Section 3. “Common Area” shall mean Tract C of Kingsgate Highlands, Division Number Three, per plat of record in King County, Washington.

Section 4. “Lot” shall mean and refer to any plot of land shown upon any recorded subdivision maps of the Properties with the exception of said Tract C.

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

Section 6. “Owner” shall mean and refer to the record owner, whether one or more persons or entities, of the fee simple title to any Lot which is a part of the Properties, including contract sellers, but excluding those having such interest as security for the performance of an obligation.

Section 7. “Declarant” shall mean and refer to Kingsgate Highlands, Divisions Number Three and Number Four, Homes Association, its successors and assigns.

Section 8. “Declaration” shall mean and refer to the Declaration of Covenants, Conditions and Restrictions applicable to the Properties recorded in the office of the Auditor of King County, Washington.

Article III Membership

Section 1. Membership. Every person or entity who is a record owner of a fee or undivided fee interest in any Lot which is subject by covenants of record to assessment by the Association, including contract sellers, shall be a member of the Association. The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Association. Ownership of such Lot shall be the sole qualification for membership.

Section 2. Suspension of Membership. During any period in which a member shall be in default in the payment of any annual or special assessment levied by the Association, the voting rights and right to use of the recreational facilities of such member may be suspended by the Board of Trustees until such assessment has been paid. Such rights of a member may also be suspended after notice for a period not to exceed 180 days for violation of any rules and regulations established by the Board of Trustees governing the use of the Common Area and facilities. A hearing may be called concerning said suspension at the request of the member involved or the Board of Trustees and will take place within one week of notice of said suspension.

Article IV

Property Rights; Rights of Enjoyment

Section 1. Each member shall be entitled to the use and enjoyment of the Common Area and facilities as provided in the Declaration. Any member may delegate his rights of enjoyment of the Common Area and facilities to the members of his family, his tenants or contract purchasers, who reside on the property. Such member shall notify the Secretary in writing of the name of any such delegee. The rights and privileges of such delegee are subject to suspension to the same extent as those of the member.

Section 2. Irrespective of the fact that Section 1(b) of Article V of the Declaration gives the Association the right to charge reasonable admission and other fees for the use of any recreational facilities situated upon the Common Area, this right shall be exercised as to members only upon written approval of two-thirds (2/3) of the entire Class A membership.

Article V

Board of Trustees; Selection; Term of Office

Section 1. Number. The affairs of this Association shall be managed by a Board of nine trustees, who need not be members of the Association.

Section 2. Election. At the first annual meeting the members shall elect three trustees for a term of one year, three trustees for a term of two years and three trustees for a term of three years; and at each annual meeting thereafter the members shall elect three trustees for a term of three years. The term of a trustee shall continue until his successor shall have been elected and qualified.

Section 3. Removal. Any trustee may be removed from the Board, with or without cause, by a majority vote of the members of the Association. In the event of death, resignation or removal of a trustee, his successor shall be selected by the remaining members of the Board and shall serve until the next general meeting, and at that time, the vacancy will be voted by the membership for the unexpired term of office.

Section 4. Compensation. No trustee shall receive compensation for any service he may perform as a trustee, or as an officer, however a trustee or officer may contract as an individual to the Association subject to approval of the majority of the membership. A trustee may be reimbursed for his actual expenses incurred in the performance of his duties.

Section 5. Action Taken Without a Meeting. The trustees shall have the right to take any action in the absence of a meeting which they could take at a meeting by obtaining the written approval of all the trustees. Any action so approved shall have the same effect as though taken at a meeting of the trustees.

Article VI Meetings of Trustees

Section 1. Regular Meetings. Regular meetings of the Board of Trustees shall be held monthly without notice, at such place and hour as may be fixed from time to time by resolution of the Board. Should said meeting fall upon a legal holiday, then that meeting shall be held at the same time on the next day which is not a legal holiday.

Section 2. Special Meetings. Special meetings of the Board of Trustees shall be held when called by the president of the Association, or by any two trustees, after not less than three days notice to each trustee.

Section 3. Quorum. A majority of the number of trustees shall constitute a quorum for the transaction of business. Every act or decision done or made by a majority of the trustees present at a duly held meeting at which a quorum is present shall be regarded as the act of the Board.

Article VII

Nomination and Election of Trustees

Section 1. Nomination. Nomination for election to the Board of Trustees shall be made by a Nominating Committee. Nominations may also be made from the floor at the annual meeting. The Nominating Committee shall consist of a Chairman, who shall be a member of the Board of Trustees, and two or more members of the Association. The Nominating Committee shall be appointed by the Board of Trustees prior to each annual meeting of the members, to serve from the close of such annual meeting until the close of the next annual meeting. The Nominating Committee shall make as many nominations for election to the Board of Trustees as it shall in its discretion determine, but not less than the number of vacancies that are to be filled. Such nominations may be made from among members or non-members.

Section 2. Election. Election to the Board of Trustees shall be by secret written ballot. At such election the members or their proxies may cast, in respect to each vacancy, as many votes as they are entitled to exercise under the provisions of the Declaration. There shall be only one vote for each Lot held in a Class A membership. The persons receiving the largest number of votes shall be elected. Cumulative voting is not permitted.

Article VIII

Powers and Duties of the Board of Trustees

Section 1. Powers. The Board of Directors shall have power to:

(a) adopt and publish rules and regulations governing the use of the Common Area and facilities, and the personal conduct of the members and their guests thereon, and to establish penalties for the infraction thereof;

(b) exercise for the Association all powers, duties, and authority vested in or delegated to this Association and not reserved to the membership by other provision of these By-Laws, the Articles of Incorporation, or the Declaration;

(c) declare the office of a member of the Board of Trustees to be vacant in the event such member, or his designated representative, shall be absent from three consecutive regular meetings of the Board of Trustees; and

(d) employ a manager, an independent contractor, or such other employees as they deem necessary, and to prescribe their duties.

Section 2. Duties. It shall be the duty of the Board to Trustees to:

(a) cause to be kept a complete record of all its acts and corporate affairs and to present a statement thereof to its members at the annual meeting of the members or at any special meeting, when such statement is requested in writing by one-fourth (1/4) of the Class A members who are entitled to vote;

(b) supervise all officers, agents and employees of this Association, and to see that their duties are properly performed;

(c) as more fully provided herein, and in the Declaration, to:

(1) fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period, as hereinafter provided in Article XII, and

(2) send written notice of each assessment to every Owner subject thereto at least thirty days in advance of each annual assessment period;

(d) issue, or to cause an appropriate officer to issue, upon demand by any person, a certificate setting forth whether or not any assessment has been paid. A reasonable charge may be made by the Board for the issuance of these certificates. If an certificate states an assessment has been paid, such certificate shall be conclusive evidence of such payment;

(e) procure and maintain adequate liability and hazard insurance on property owned by the Association;

(f) cause all officers or employees having fiscal responsibilities to be bonded, as it may deem appropriate; and,

(g) cause the Common Area to be maintained.

Article IX Committees

Section 1. The Board of Trustees shall appoint an Architectural Control Committee (or Restrictions Committee) as provided in the Declaration, and a Nominating Committee as provided in the By-Laws. In addition, the Board of Trustees may appoint other committees as deemed appropriate in carrying out its purposes, such as:

(a) A Recreation Committee which shall advise the Board of Trustees on all matters pertaining to the recreational program and activities of the Association and shall perform such other functions as the Board, in its discretion, determines;

(b) A Maintenance Committee which shall advise the Board of Trustees on all matters pertaining to the maintenance, repair or improvement of the Properties, and shall perform such other functions as the Board in its discretion determines;

(c) A Publicity Committee which shall inform the members of all activities and functions of the Association, and shall, after consulting with the Board of Trustees, make such public releases and announcements as are in the best interests of the Association; and

(d) An Audit Committee which shall supervise the annual audit of the Association’s books and approve the annual budget and statement of income and expenditures to be presented to the membership at its regular annual meeting, as

provided in Article XI, Section 8 (d). The Treasurer shall be an ex officio member of the committee.

Section 2. It shall be the duty of each committee to receive complaints from members on any matter involving Association functions, duties, and activities within its field of responsibility. It shall dispose of such complaints as it deems appropriate or refer them to such other committee, trustee or officer of the Association as is further concerned with the matter presented.

Article X Meetings of Members

Section 1. Annual Meetings. The annual meeting of the members shall be held the

second Tuesday of February at the hour of 7:00 o’clock, P.M. If the day for the annual meeting of the members is a legal holiday, the meeting will be held at the same hour on the first day following which is not a legal holiday.

Section 2. Special Meetings. Special meetings of the members may be called at any time by the president or by the Board of Trustees, or upon written request of the members who are entitled to vote one-fourth (1/4) of all of the votes of the entire membership or who are entitled to vote one-fourth (1/4) of the votes of the Class A membership.

Section 3. Notice of Meetings. Written notice of each meeting of the members shall be given by, or at the direction of, the secretary or person authorized to call the meeting, by mailing a copy of such notice, postage prepaid, at least 15 days before such meeting to each member entitled to vote thereat, addressed to the member’s address last appearing on the books of the Association, or supplied by such member to the Association for the purpose of notice. Such notice shall specify the place, day and hour of the meeting and, in the case of a special meeting, the purpose of the meeting.

Section 4. Quorum. The presence at the meeting of members entitled to cast, or of proxies entitled to cast, one-tenth of the votes of each class of membership shall constitute a quorum for any action except as otherwise provided in the Articles of Incorporation, the Declaration, or these By-Laws. If, however, such quorum shall not be present or represented at any meeting, the members entitled to vote thereat shall have power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum as aforesaid shall be present or be represented.

Section 5. Proxies. At all meetings of members, each member may vote in person or by proxy. All proxies shall be in writing and filed with the secretary. Every proxy shall be revocable and shall automatically cease upon conveyance by the member of his Lot.

Article XI Officers and Their Duties

Section 1. Enumeration of Offices. The officers of this Association shall be a president and vice-president, who shall at all times be members of the Board of Trustees, a secretary and a treasurer, and such other offices as the Board may from time to time by resolution create.

Section 2. Election of Officers. The election of officers shall take place at the first meeting of the Board of Trustees following each annual meeting of the members.

Section 3. Term. The officers of this Association shall be elected annually by the Board and each shall hold office for one year and until their successors respectively are elected and qualified, unless he shall sooner resign, or shall be removed, or otherwise disqualified to serve.

Section 4. Special Appointments. The Board may elect such other officers as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board may, from time to time, determine.

Section 5. Resignation and Removal. Any officer may be removed from office with or without cause by the Board. Any officer may resign at any time by giving written notice to the Board, the president or the secretary. Such resignation shall take effect on the date of receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 6. Vacancies. A vacancy in any office may be filled in the manner prescribed for regular election. The officer elected to such vacancy shall serve for the remainder of the term of the officer he replaces.

Section 7. Multiple Offices. The office of secretary and treasurer may be held by the same person. No person shall simultaneously hold more than one of any of the other offices except in the case of special offices created pursuant to Section 4 of this Article.

Section 8. Duties. The duties of the officers are as follows:

(a) President. The president shall preside at all meetings of the Board of Trustees; shall see that orders and resolutions of the Board are carried out; shall sign all leases, mortgages, deeds and other written instruments and shall co-sign all checks and promissory notes.

(b) Vice-President. The vice-president shall act in the place and stead of the president in the event of his absence, inability or refusal to act, and shall exercise and discharge such other duties as may be required of him by the Board.

(c) Secretary. The secretary shall record the votes and keep the minutes of all meetings and proceedings of the Board and of the members; keep the corporate seal of the Association and affix it to all papers requiring said seal; serve notice of meetings of

the Board and of the members; keep appropriate current records showing the members of the Association together with their addresses, and shall perform such other duties as required by the Board.

(d) Treasurer. The treasurer shall receive and deposit in appropriate bank accounts all monies of the Association and shall disburse such funds as directed by resolution of the Board of Trustees; shall sign all checks and promissory notes of the Association; keep proper books of account; cause an annual audit of the Association books to be made by a public accountant at the completion of each fiscal year; and shall prepare an annual budget and a statement of income and expenditures to be present to the membership at its regular annual meeting, and deliver a copy of each to the members.

Article XII Assessments

Section 1. Creation of the Lien and Personal Obligation of Assessments. By the Declaration each member is deemed to covenant and agree to pay to the Association: (1) annual assessments or charges, and (2) special assessments for capital improvements. The annual and special assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with

such interest, costs, and reasonable attorney’s fees shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due and shall not pass to his successors in title unless expressly assumed by them.

Section 2. 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 in the Properties and in particular for the improvement and maintenance of the Properties, services, and facilities devoted to this purpose and related to the use and enjoyment of the Common Area, and of the homes situated upon the Properties.

Section 3. Basis and Maximum of Annual Assessments. Until January 1 of the calendar year immediately following the conveyance of the first Lot to an owner, the maximum annual assessment on all lots conveyed by Declarant to purchasers shall be Eighty-four Dollars ($84.00) per Lot. The maximum annual assessment on all lots owned by Declarant shall be Twelve Dollars ($12.00) per Lot.

(a) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased effective January 1 of each year without a vote of the membership in conformance with the rise, if any, of the Consumer Price Index (published by the Department of Labor, Washington, DC) for the preceding month of July.

(b) From and after January 1 of the year immediately following the conveyance of the first Lot to an owner, the maximum annual assessment may be increased above that established by the Consumer Price Index formula by a vote of the members for the next succeeding two years and at the end of each such period of two years, for each succeeding period of two years, provided that any such change shall have the assent of two-thirds (2/3) of the votes of each class of members who are voting in person or by proxy, at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than thirty days nor more than sixty days in advance of the meeting setting forth the purpose of the meeting. The limitations hereof shall not apply to any change in the maximum and basis of the assessments undertaken as an incident to a

merger or consolidation in which the Association is authorized to participate under its Articles of Incorporation.

(c) After consideration of current maintenance costs and future needs of the Association, the Board of Trustees may fix the annual assessment at an amount not in excess of the maximum.

Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association may levy in any assessment year, a special assessment applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of a described capital improvement upon the Common Area, including the necessary fixtures and personal property related thereto, provided that any such assessments shall have the assent of two-thirds of the votes of each class of members, who are voting in person or by proxy, at a meeting duly called for such purpose, written notice of which shall be sent to all members not less than thirty days nor more than sixty days in advance of the meeting setting forth the purpose of the meeting.

Section 5. Uniform Rate. Both annual and special assessments must be fixed at a uniform rate for all Lots and may be collected on a monthly basis, except as provided in Section 3 above for lots owned or in which Declarant has an interest.

Section 6. Quorum for any Action Authorized under Sections 3 and 4. At the first meeting called, as provided in sections 3 and 4 hereof, the presence at the meeting of members or of proxies entitled to case sixty percent of all the votes of both classes of membership shall constitute a quorum. If the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth in sections 3 and 4, and the required quorum at any such subsequent meeting shall be one-half of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty days following the preceding meeting.

Section 7. Date of Commencement of Annual Assessments; Due Dates. The annual assessment provided for herein shall commence on all Lots, subject to assessment, on the first day of the month following the conveyance of the Common Area. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Trustees shall fix the amount of the annual assessment against each Lot at least thirty days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Trustees. The Association shall upon demand at any time furnish a certificate in writing, signed by an officer of the Association, setting forth whether the assessments on a specified Lot have been paid. A reasonable charge may be made by the Board for the issuance of these certificates. Such certificate shall be conclusive evidence of payment of any assessment therein stated to have been paid.

Section 8. Effect of Non-Payment of Assessments: Remedies of the Association. Any assessments which are not paid when due shall be delinquent. If the assessment is not paid within thirty days after the due date, the assessment shall bear interest from the date of delinquency at the rate of ten percent per annum, and the Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the

property, and interest, costs, and reasonable attorney’s fees of any such action shall be added to the amount of such assessment. No Owner may waive or otherwise escape liability for the assessments provided for herein by nonuse of the Common Area or abandonment of his Lot.

Section 9. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any mortgage or mortgages or deeds of trust. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot which is subject to any mortgage or deed of trust, pursuant to a decree of foreclosure under such mortgage or any proceeding in lieu of foreclosure thereof, shall extinguish the lien of such assessments as to payments thereof which became due prior to such sale or transfer. No sale or

transfer shall relieve such Lot from liability for any assessment as to payments thereafter becoming due or from the lien thereof.

Section 10. Exempt Property. The following property subject to the Declaration shall be exempt from the assessments created therein:

(a) all properties dedicated to and accepted by a local public authority,

(b) the Common Area, and

(c) all properties owned by a charitable or nonprofit organization exempt from taxation by the laws of the State of Washington.

Article XIII Books and Records

The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any member. The Declaration, the Articles of Incorporation and the By-Laws of the Association shall be available for inspection by any member at the principal office of the Association, where copies may be purchased at reasonable cost.

Article XIV Corporate Seal

The Association shall have a seal in circular form having within its circumference the words: KINGSGATE HIGHLANDS, DIVISIONS NUMBER THREE AND NUMBER FOUR, HOMES ASSOCIATION.

Article XV Amendments

Section 1. These By-Laws may be amended or repealed by the Board of Trustees subject to the power of the members to change or repeal such By-Laws and these By-Laws may be amended, at a regular or special meeting of the members, by a majority vote of a quorum of members present in person or by proxy, except that the Federal House Administration or the Veterans Administration shall have the right to veto amendments while there is Class B membership.

Section 2. In the case of any conflict between the Articles of Incorporation and these By- Laws, the Articles shall control; and in the case of any conflict between the Declaration and these By-Laws, the Declaration shall control.

Article XVI Miscellaneous

The fiscal year of the Association shall begin on the first day of January and end on the 31st day of December of every year, except that the first fiscal year shall begin on the date of incorporation.

Article XVII

Enforcement of Covenants, Conditions, and Restrictions

Section 1. Authority Reserved to Association and to Each Owner. The enforcement policy and procedures created by this Article are a general approach. They exist to advance the purpose of restoring compliance with the Covenants, Conditions, and Restrictions, and are not meant to impair the Association’s ability to pursue this purpose. The Board retains whatever authority it otherwise has to employ any available means or remedy in pursuit of this purpose. These

policies and procedures are also not meant to impair an Owner’s ability to bring about compliance with the Covenants by another Owner. This Article reserves to each Owner the right of an Owner under Article XII Section 4 of the Declaration to enforce the Covenants directly against another Owner.

Section 2. Parking. The Board of Trustees will refrain from exercising its discretion to enforce the restriction contained within Article X, Section 4, of the Declaration, which prohibits the keeping or storing of vehicles (including buses and trailers of any description) used for private purposes outside of any building on any residential lot, when a vehicle which would otherwise be in violation of the restriction meets all of the following conditions:

(a) is properly licensed; and,

(b) is in good operating condition; and,

(c) is not dismantled; and,

(d) is parked in accordance with all public laws and ordinances; and,

(e) if it is a passenger car, van, minivan, pickup or light truck, sport utility vehicle, or motorcycle, is parked in the driveway or within an enclosed area of a side or rear yard, not visible from the street; and,

(f) if it is a recreational vehicle, motor home, camper, or boat, is parked in an enclosed area of a side or rear yard, not visible from the street, and adjacent neighbors have been consulted and have expressed no objection to the parking of such vehicle.

Section 3. Signs. The Board of Trustees will refrain from exercising its discretion to enforce the restriction contained within Article X, Section 11, of the Declaration, which prohibits the erection or maintenance of any sign on any lot except for bona fide FOR SALE or FOR RENT signs, when a sign which would otherwise be in violation of the restriction meets all of the following conditions:

(a) the sign advocates or opposes the election of a candidate for public office, or advocates or opposes the adoption of any initiative, levy, or other measure appearing on a public election ballot, provided that such sign

(1) is posted no more than 60 days prior to the election it is intended to influence; and,

(2) is removed no more than 10 days after the election it was intended to influence; and,

(3) is no more than 6 square feet in size; or

(b) the sign advertises a garage sale, yard sale, or similar infrequent, non- commercial event to be held at the residence at which the sign is displayed, provided that such sign

(1) is posted no more than 3 days prior to the beginning of such sale; and,

(2) is removed no later than 10:00 p.m. of the last day of such sale; and,

(3) is no more than 6 square feet in size; and,

(4) is posted at a residence which has had no more than two (2) such sales within the preceding twelve (12) months; and

(5) advertises a sale which is no more than three consecutive days in duration.

Section 4. Home Occupations. The Board of Trustees will refrain from exercising its discretion to enforce the restriction contained within Article X, Section 4, of the Declaration, which prohibits the conducting or carrying on of any trade, craft, business, profession, commercial or manufacturing enterprise, or business or commercial activity of any kind upon any residential lot or within any building located in this subdivision, when such trade, craft, business, profession, enterprise, or activity (hereinafter known as “occupation”) which would otherwise be in violation of the restriction meets all of the following conditions:

(a) the occupation is operated in accordance with section 21.08.030 (L) of the Code of King County; and,

(b) the occupation is properly licensed by King County and all other applicable government agencies; and,

(c) to the extent required by the Code of King County, necessary zoning variances are obtained and maintained; and,

(d) the occupation involves only persons who reside in the residence, and no non- resident employees come to the residence; and,

(e) the occupation does not involve selling any items to persons who come to the residence; and,

(f) the occupation does not involve group instruction or group assembly of people in the residence or on the residential lot; and,

(g) the occupation is conducted entirely within the enclosed living area of the residence; and,

(h) any products, materials, or machinery used in the occupation, and the business activities of occupation itself, are not visible to casual observers outside the residence; and,

(i) the occupation does not increase the number of vehicles which drive on subdivision streets or park either on the street or off the street; and,

(j) the occupation does not require delivery or pickup of materials using vehicles larger than a passenger car, van, minivan, or pickup truck; and,

(k) the equipment used in the occupation is of the kind normally used in private homes, is not special commercial equipment or large power tools, nor requires special power sources; and,

(l) no signs are posted on the lot to advertise the presence of the occupation; and,

(m) no more than twenty per-cent (20%) of the interior heated square footage of the residence is used for the occupation; and,

(n) the occupation does not generate noise, vibrations, smoke, dust, odors, heat, light, or other annoyances or disturbances beyond what is normally and customarily found in a residential area; and,

(o) no more than one vehicle used in the business is parked at the residence, such vehicle being no larger than a passenger car, van, minivan, pickup or light truck, or sport utility vehicle, and, if such vehicle is marked with advertisement for the occupation, it is parked in the garage, side yard, or rear yard and not visible from the street; and,

(p) the occupation does not involve the breeding of animals of any kind; and,

(q) if the occupation involves child or senior day care, it is operated in accordance with section 21.08.030 (K) of the Code of King County.

Section 5. Enforcement by Levying of Fines. In addition to the enforcement powers established in Article XII Section 4 of the Declaration and the power to suspend voting rights and right to use of the recreational facilities provided in Article V Section 1 of the Declaration, and in accordance with Washington State Law (RCW 64.38.020(11)), the Board of Trustees shall have the power, by a two-thirds vote of the whole Board, to enforce all covenants, conditions, and restrictions imposed by the Declaration, and to enforce the published by-laws, rules and regulations of the Association, by the levying of fines upon the Owner of any Lot found to be not in compliance therewith or whose family members, guests, residents, or tenants are found not to be in compliance therewith.

(a) The Board of Trustees shall give notice of violation to the Owner in writing either by personal delivery or by sending the same by prepaid United States registered mail addressed to the record Owner or Owners at the street address of the Lot. Notice by registered mail, addressed as aforesaid, shall be deemed to have been fully communicated upon the expiration of forty-eight hours after the time of mailing, and the name and address of the person or persons to whom such notice was mailed shall be conclusive, but not the exclusive means of, proof of such fact. Such notice shall include a description of the violation, the specific section of the Declaration, By-Laws, or Rules violated, the actions required to correct the violation, the amount of fine applicable to the violation, the date by which the violation may be corrected for the fine to be suspended, an explanation of the right to a fair hearing, and the date and time at which a hearing, if requested, would be held.

(b) Upon receipt of the notice of violation, the Owner shall have fifteen days in which to either correct the violation and report the correction to the Board of Trustees for verification, or request a hearing. If the violation is neither corrected nor a hearing requested within fifteen days of the notice of violation, fines shall become due and payable, effective at the date of the notice of violation, according to the schedule below.

(c) If the Owner requests a hearing, fines shall be suspended pending the outcome of the hearing, and the hearing shall be held at the date and time scheduled. At the hearing, the Owner, members of the Board of Trustees, and other Members shall have the right and opportunity to present evidence and argument regarding the alleged violation, and each shall have the right to ask questions of each other and any witnesses. The hearing may be recessed and reconvened as required for gathering of additional information, or for any other purpose, at the discretion of the President. Upon the conclusion of the hearing or as soon thereafter as reasonably possible, the Board of Trustees shall vote to either vacate or uphold the notice of violation, and the Board shall give notice of its decision in writing in the same manner as a notice of violation. If the violation is upheld, the Board may impose a fine as a result of any violation or violations which have occurred through the date of the hearing in an amount not to exceed two

hundred dollars, and additional fines shall become due and payable according to the schedule below until the violation is corrected.

(d) Fines for specific offenses shall be levied according to the following schedule.

Type of Violation

Where Defined

Fine

Architectural   control or occupancy

Declaration Article VIII; Article X Sections 1, 2, 3, 5, 6, 7, 8, and

12; Article XI

$25

Operating   a Business

Declaration   Article X Section 4, By-Laws, Article XVII Section 3

$50

Parking

Declaration Article X Section 4; By-Laws, Article   XVII Section 1

$10 for   each vehicle

Annoyance or Nuisance (e.g.

Excessive Noise)

Declaration Article X Section 4

$10

Accumulation   of Debris

Declaration Article X Section 4

$10

Landscaping   and fences

Declaration Article X Section 9

$10

Unpermitted animals

Declaration Article X Section 10

$10 for   each animal

Signs

Declaration Article X Section 11; By-Laws, Article XVII Section 2

$10 for   each sign

Park   and Pool Rules

Resolutions   of the Association; Homeowner’s Guide

$50

Other   violations

Anywhere   in the governing documents

$10

(e) Each day upon which a violation continues shall incur an additional fine, in the amount stated in the above schedule, for the first thirty consecutive days of the violation. From the thirty-first day and thereafter, the fine imposed per day shall be double the amount shown in the above schedule. If a violation, once corrected, is subsequently repeated by the same Owner, the doubling of fines under this subsection shall commence immediately upon fines becoming due and payable.

(f) Fines levied will be billed and collected in the same manner as assessments. Fines levied, together with such interest thereof and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the property against which each such fine is made. Each such fine, together with such interest, costs, and reasonable attorney’s fees, shall also be the personal obligation of the person who was the Owner of such property at the time when the fine was levied. The personal obligation shall not pass to his successors in title unless expressly assumed by them.

(g) Fines levied under this section shall not be considered annual or special assessments and shall not be subject to the uniformity requirement of Article VI Section 5 of the Declaration.

(h) The levying of fines is in addition to, and not in replacement of, other remedies available to the Association under the Declaration, these By-Laws, or by law, including, but not limited to, the commencement of legal proceedings to enjoin further violations and to collect any unpaid fines, and the suspension of voting rights and right

to use of the recreational facilities. Fines may continue to be assessed during the pendency of such legal proceedings or suspensions.

Section 6. Determination of Non-Enforcement by Board. The Board of Trustees shall have the power, by two-thirds vote of the whole Board, to state its determination to not enforce any of the restrictions specified in Articles VIII, X, and XI of the Declaration and to any By-Laws or Rules of the Association, in order to overcome practical difficulties, avoid unnecessary expense or prevent unnecessary hardship, provided the following conditions are met:

(a) If the Determination of Non-Enforcement by Board (“Determination”) will necessitate deviation from, or modification of, a property use restriction that would otherwise be applicable under the Declaration, the Board must conduct a public hearing on the proposed Determination after giving at least 30 days prior written notice to all Owners of property adjacent to the subject Lot. The Owners receiving notice of the proposed Determination shall have 30 days in which to submit to the Board written comments or objections with respect to the Determination. No decision shall be made with respect to the proposed Determination until the 30-day comment period has expired.

(b) The Board must make a good faith written determination that: (1) the requested Determination does not constitute a material deviation from the overall plan and scheme  of development within the Properties or from any restriction contained in the Declaration, By-Laws, or Rules or that the proposal allows the objectives of the violated requirements to be substantially achieved despite noncompliance; or (2) that the Determination, if granted, will not result in a material detriment, or create an unreasonable nuisance, with respect to any other Lot, Common Area or Owner within the Properties.

A Determination issued under this section constitutes a binding commitment by the Association to not enforce the specified restriction, by-law, or rule upon the subject Lot, subject to any conditions contained within the Determination. However, a Determination does not

impair any Owner’s ability under Article XII Section 4 of the Declaration to enforce the Covenants directly against the Owner of the Lot that is the subject of a Determination. A Determination shall be recorded upon the permanent records of the Association, shall run with the real property, and may not be withdrawn except upon written request of the Owner of the Lot upon which the Determination was granted, such withdraw being accepted by a majority vote of the Board. Approval by the Board of a Determination for one Lot does not constitute an obligation upon the Board to approve a similar Determination upon any other Lot. Pending consideration of a Determination does not suspend the enforcement process for an existing violation.

Section 7. Definition of “Annoyance or Nuisance to the Neighborhood”. Article X, Section 4 of the Declaration of Covenants, Conditions and Restrictions prohibits anything from being done on any lot “which may be or may become an annoyance or nuisance to the neighborhood.” The following conditions are declared to be an annoyance or nuisance to the neighborhood:

(a) grass taller than six inches;

(b) weeds that have grown to the point of releasing seeds that may be spread by the wind to other lots;

(c) shrubbery or tree branches that extend over any roadway or sidewalk at a height less than eight feet above the roadway or sidewalk;

(d) ivy, blackberries, or other invasive plant species that have grown beyond the lot boundaries onto adjacent lots;

(e) dead trees or shrubs;

(f) trees that are diseased, leaning dangerously, or otherwise threatening to buildings or property.

The list above does not limit the discretion of the Board of Trustees to declare certain conditions or actions as an annoyance or nuisance. Additional conditions or actions may be deemed an annoyance or nuisance to the neighborhood at the discretion of the Board of Trustees.