This Declaration is made on the date hereinafter set forth by WARREN GILBERT, JR., MARILYN GILBERT, husband and wife, VERN SIMS and MARIE SIMS, husband and wife, may hereinafter be referred to in the singular as "Declarant."

WITNESSETH

WHEREAS, Declarant is the owner of the real property described in Article II, Section 1, of this Declaration; and

WHEREAS, Declarant desires to subject the real property described in Article II, Section 1, hereof to the provisions of this Declaration to create a residential community of single-family housing in a highly desirable scenic and secluded area.

AND WHEREAS, it is the purpose of these covenants that the present natural beauty and view, the natural growth and native setting and surroundings of Cedar Ridge Estates be protected insofar as is possible in connection with the uses and structures permitted by this instrument; and

NOW, THEREFORE, Declarant hereby declares that the real property described in Article II, Section 1 of this Declaration, including the improvements constructed or to be constructed thereon, is hereby subjected to the provisions of this Declaration, and shall be held, sold, transferred, conveyed, used, occupied, and mortgaged or otherwise encumbered subject to the covenants, conditions, restrictions, easements, assessments, and liens hereinafter set forth, which are for the purpose of protecting the value and desirability thereof, and which shall run with the title to persons having any right, title, or interest in all or any portion of the real property now or hereafter, their respective heirs, legal representatives, successors, successors-in-title, and assigns, and shall inure to the benefit of each and every owner of all or any portion thereof.

ARTICLE I ESTABLISHMENT OF HOMEOWNERS' ASSOCIATION

Declarant has established Cedar Ridge Estates Homeowners' Association, a Washington non-profit corporation organized under RCW 24.03 for the purpose of owning, maintaining, operating, and managing private roadways, ditches, and open spaces and any recreational amenities, and is and shall be charged with implementing the rights, duties and obligations arising under easements, restrictive covenants and other instruments as may have been or may hereafter be placed of record with the Auditor of Skagit County relating to roads, land use, building, drainage, sewage, waste disposal, open spaces and recreational amenities affecting the property described in Article II.

ARTICLE II PROPERTY SUBJECT TO THIS DECLARATION

SECTION 2.1 PROPERTY HEREBY SUBJECTED TO THIS DECLARATION.

The real property which is, by the recording of this Declaration, subject to the covenants and restrictions hereafter set forth and which, by virtue of the recording of this Declaration, shall be held, transferred, sold, conveyed, used, occupied, and mortgaged or otherwise encumbered subject to this Declaration is the real property described in Exhibit "B", attached hereto and by reference made a part hereof.

SECTION 2.2 OTHER PROPERTY.

Only the real property described in Section 2.1 of this Article II is hereby made subject to this Declaration, provided, however, by one or more supplementary Declarations, Declarant and the Association have the right, but not the obligation, to subject other real property to this Declaration, as herein provided.

ARTICLE III ASSOCIATION MEMBERSHIP AND VOTING RIGHTS

SECTION 3.1

The Association shall have two classes of voting membership:

CLASS A: Class A membership shall be owners with the exception of the Declarant and shall be entitled to one vote for each Lot owned. When more than one person holds any interest in any Lot, all such persons shall be members. The vote for such Lot shall be exercised among them as they among themselves determine, but in no event shall more than one vote be cast with respect to any Lot.

CLASS B: Class B member(s) shall be the Declarant (as defined in this Declaration).

Class B membership shall be entitled to five (5) votes for each Lot owned. The Class B membership shall cease and be converted into Class A membership on the happening of the following events, whichever occurs earlier:

1. When the total votes in the Class A membership equal or exceed the total votes outstanding in the Class B membership; or
2. On or before January 1, 2000.

ARTICLE IV USE RESTRICTIONS AND RULES

SECTION 4.1 LAND USE.

All lots, tracts and parcels of the property described in Article II shall be used only as set forth, and such designated usage shall be changed only by the approval of owners of interest in the Lots in Cedar Ridge Estates Homeowners' Association through its Architectural Committee, as provided in the Articles of Incorporation and By-Laws of said Corporation.

The property described in Article II shall be used for single-family residences except for plats for roads, trails, utilities, greenbelts and open spaces.

Nothing contained in this Declaration shall be construed to prevent the Declarant, or their successors and assigns, from erecting, maintaining or authorizing erection and maintenance of structures and/or signs for the development and sale of said property while the same or any part thereof is held by the Declarant, their successors or assigns.

SECTION 4.2 THE ARCHITECTURAL CONTROL COMMITTEE.

The membership of this committee for a period of five years from this date shall consist of WARREN GILBERT, JR., VERN SIMS and JIM KOETJE.

They shall be authorized to appoint their own successors during the five year term.

Five years from date, one of the original members shall be replaced for a three year term by a vote of the majority of those owning Lots in Cedar Ridge Estates.

Six years from date and seven years from date the two remaining members shall be similarly replaced for separate three year terms.

SECTION 4.3 ARCHITECTURAL CONTROL.

No permanent building, structure, or fence shall be placed or erected upon any Lot, tract or parcel of said property which in its construction does not conform to the Skagit County Building Code and the Uniform Building Code, State of Washington Electrical Code and the Architectural Committee's requirements.

No building or structure shall be erected, placed, expanded, remodeled, or altered upon any tract or parcel of said property until the construction plans and specifications, including a site plan and exterior color schemes and landscaping design or plan shall have been submitted to and approved in writing by said Architectural Committee prior to the commencement of any such construction work.

Provided, further, that prior to commencement of any such construction all buildings and structures shall be prosecuted diligently and continuously so that not more than one year elapses from commencement to completion of exteriors, including painting or other suitable finish.

All buildings or structures shall be new construction. (See 4.5(h))

The Architectural Control Committee shall have the sole discretion to determine whether substantial reasons exist to allow construction to take place over an additional six months of time.

SECTION 4.4 APPROVAL OF PLANS, GENERAL REQUIREMENTS.

All plans for the construction of private roads and driveways and all building plans for any building, fence, wall or structure to be erected upon any Lot, and landscaping plans including a list of plants to be used, and the proposed locations thereof upon any Lot, and any changes after approval thereof; any remodeling, reconstruction, alteration or addition to any building, road, driveway or other structure upon any Lot in such premises shall require the approval in writing of the Architectural Committee.

Before beginning the construction of any road, driveway, building, fence, wall, coping or other structure whatsoever, or remodeling, reconstructing or altering such road, driveway or structure upon any Lot, the person or persons desiring to erect, construct or modify the same shall submit to the Architectural Committee two complete sets of road or driveway plans showing the locations, course and width of same, or two complete sets of building plans and specifications for the building, fence, wall, coping or other structure, as applicable, so desired to be erected, constructed or modified.

No structure of any kind, the plans, elevations and specifications of which have not received the written approval of the Architectural Committee and which does not comply fully with such approved plans and specifications, shall be erected, constructed, placed or maintained upon any Lot.

Approval of such plans and specifications shall be evidenced by written endorsement on such plans and specifications, a copy of which shall be delivered to the owner or owners of the Lot upon which the prospective building, road, driveway or other structure is contemplated prior to the beginning of such construction.

No changes or deviations in or from such plans and specifications as approved shall be made without the prior written consent of the Architectural Committee.

(a) PRELIMINARY APPROVALS.

Persons or Associations who anticipate constructing improvements upon the land within Cedar Ridge Estates, whether they already own lands in the same or are contemplating owning a Lot or are contemplating the purchase of a Lot, may submit preliminary sketches of such improvement to the Architectural Committee for informal and preliminary approval or disapproval.

All preliminary sketches should be submitted in at least two sets, should contain a proposed site plan, and should contain sufficient general information on all aspects that will be required to be in the complete architectural plans and specifications to provide the Architectural Committee with sufficient information with which to provide an informed preliminary approval or disapproval.

The Architectural Committee shall never be finally committed or bound by any preliminary or informal approval or disapproval until such time as complete architectural plans are submitted and approved or disapproved.

(b) INADEQUATE ARCHITECTURAL PLANS.

The Architectural Committee's approval or disapproval as required in the foregoing building criteria shall be delivered in writing to the Board of Directors of the Homeowners' Association and to the Lot Owner submitting same.

In the event the Architectural Committee fails to approve or disapprove plans and specifications within forty-five (45) days of submission thereto, it would be considered to be approved.

(c) ARCHITECTURAL COMMITTEE NOT LIABLE.

The Architectural Committee shall not be liable for damages to any persons or Associations submitting any architectural plans for approval, or to any owner or owners of Lots within Cedar Ridge Estates, by reason of any action, failure to act, approval, disapproval or failure to approve or disapprove with regard to such architectural plans.

Any person or Association acquiring title to any property in Cedar Ridge Estates or any person or Association submitting plans to the Architectural Committee, its members as individuals or its advisors, employees, or agents shall be deemed to have waived any claim against the Committee or its members arising from the approval or disapproval of plans or from the exercise of the Committee's authority under these Covenants.

SECTION 4.5 BUILDING RESTRICTIONS.

(a) MATERIALS. Exterior surfaces will be of materials that are compatible with the natural landscape. Natural materials are required, such as wood siding, cedar shingles, stone and brick, unless the Architectural Committee waives this requirement. T-111 type siding or similar is prohibited for exterior building surfaces.

(b) SEPARATE STRUCTURES. Unless approved by the Architectural Committee as to use, location, and architectural design, no garage, tool or storage room, may be constructed separate and apart from the residential dwelling, nor can such structure(s) be constructed prior to construction of the main residential dwelling.

(c) LAYOUT. No foundation for a building shall be poured, nor shall construction commence in any manner or respect, until the layout for the building is approved by the Architectural Committee. It is the purpose of this approval to assure that no trees are unnecessarily disturbed.

(d) EXTERIOR COLOR PLAN. The Architectural Committee shall have final approval of all exterior color plans and each owner must submit to the Architectural Committee a color plan showing the color of the roof, exterior walls, shutters, trims, etc. The Architectural Committee shall consider the extent to which the color plan is consistent with the homes in the surrounding areas and the extent to which the color plan conforms with the natural color scheme of and for Cedar Ridge Estates.

(e) ROOFS. The composition of all roofs shall be tile, cedar shake, shingles, year laminated composition slate or concrete tile construction or other composition of equal quality or better, approved by the Architectural Committee.

(f) GARAGES. Each new dwelling unit constructed shall have a minimum of a two-car garage and no more than a three car garage. Visual impact of garage doors will be minimized by such measures as siting of the dwelling, protective overhangs or projections, special door facing materials or design, landscaping, berming, etc.

(g) DRIVEWAY CONSTRUCTION. Driveways shall be of concrete or asphalt material as a minimum standard. Plans for the same shall be submitted to the Architectural Committee for approval, with the building plan.

(h) CONSTRUCTION COMPLETION. All building structures and construction practices must be in conformance to all applicable City, County, State or National Building Codes including structural, mechanical and electrical. Construction start to finish shall not exceed a twelve (12) month period, unless good cause is shown and written approval for an extension not to exceed six (6) months is granted by the Architectural Committee.

(i) LANDSCAPING. A basic landscaping plan for each Lot must be submitted to and approved by the Architectural Residence Committee. Said plan must be completed within six (6) months following the date of completion of the residence construction, unless approved by the Architectural Control Committee.

(j) CONSTRUCTION OF SIGNIFICANT RECREATION FACILITIES. The construction of any significant recreational facilities on any Lot including, but not limited to, such items as swimming pools, tennis, badminton, or pickle ball courts shall require the approval of the Architectural Committee, and shall be subject to the requirements adopted by the Architectural Committee. Prior to approval, the Architectural Committee shall invite comments from other Lot owners for the purpose of mitigating any adverse impacts such as visibility, drainage, lighting, etc.

(k) MAILBOXES. No mailbox or paperbox or other receptacle of any kind for use in the delivery of mail or newspapers or magazines or similar material shall be erected on any lot unless the size, location, design and type of material for said boxes or receptacles shall have been approved by the Architectural Committee. It is assumed that there will be one or more central sites for such boxes.

SECTION 4.6 BUILDING SIZE LIMITATIONS AND HEIGHT REQUIREMENTS.

No dwelling shall be permitted on any Lot wherein the ground floor area of the main structure, exclusive of open porches, decks, terraces, carports, and garages, shall contain not less than One Thousand Seven hundred (1,700) square feet, except the ground floor area of a dwelling of more than one story shall have not less than One thousand, (1,000) square feet. For the purpose of this provision, a home with a daylight basement shall be considered a dwelling of more than one story and the basement area shall not be considered to be the ground floor. No dwelling or building shall exceed a maximum height of 27 feet at any point from the original grade without a written variance from the Architectural Committee. Height variances, when allowed, will take into consideration view infringement which may be caused to adjacent Lots, tracts or parcels.

SECTION 4.7 VIEW EASEMENT.

All trees planted by a Lot owner shall be part of the landscaping plan (4.5-i) or if planted subsequently, with the prior written approval of the Architectural Committee. Existing trees, that once had no adverse impact on a neighbor can later grow to a point that they become such and if so, the following provisions apply. The height of improvements, vegetation and trees on any lot shall not materially impair or restrict the view of other lot owners. The Architectural Committee shall be the sole judge of the suitability of such heights. If the Architectural Committee determines there is such an impairment or restriction of view of other lot owners, written notice shall be delivered to the owner of the lot wherein the offending tree or trees are located. If, after 30 days following written notice, the improvements and vegetation or trees are not removed or reduced in height, as directed by the Architectural Committee, the Architectural Committee shall grant to the lot owner whose view is obstructed, the right to enter, at his own cost, the lot wherein the offending tree or trees are located at reasonable times and in a reasonable manner and remove the tree or trees. This section is not to be interpreted as justification to create a view not present when the lot was originally acquired from the Declarant.

SECTION 4.8 SETBACKS.

Building and improvements shall comply with the setback requirements set forth in the face of the plat for Cedar Ridge Estates and county regulations.

SECTION 4.9 TEMPORARY STRUCTURES.

No Quonset hut, metal buildings, modular home or any temporary structure of any nature shall be placed or used upon said premises, other than that such a structure may be used as a construction shed during the actual period of construction of any permanent dwelling place thereon.

SECTION 4.10 HABITATION OF TEMPORARY STRUCTURES.

No structure of a temporary character, basement, tent, shack, garage, or any other outbuildings shall be used on any Lot at any time as a dwelling except under a temporary written permit which may be granted, upon specific time limitations for such use, at the discretion of the Architectural Committee.

SECTION 4.11 LANDSCAPING AND PLANTING.

No trees, shrubs or other vegetation shall be planted on a Lot or removed therefrom without the written consent of the Architectural Committee in accordance with landscaping rules adopted by the Architectural Committee.

SECTION 4.12 SINGLE-FAMILY RESIDENTIAL.

All Lots shall only be used for the residential purposes of a family.

SECTION 4.13 SIGNS.

No sign of any kind shall be displayed to the public view on any Lot or improvement, except one professionally made sign of not more than six (6) square feet advertising the property for sale. This restriction shall not prohibit the temporary placement of political signs on any lot by the owner or placement of a professionally made sign by the developer, which must comply with the local sign ordinances. This restriction shall not apply to the signs used by the developer, builders, realtors or their agents during the original construction and sale of residences.

SECTION 4.14 FENCES.

No fence, wall or hedge shall be erected, located, planted or maintained upon any lot in a manner which would unreasonably obstruct the view from any other Lot or Lots. No fence, wall or hedge or any other type obstruction shall exceed six (6) feet in height from ground level or a lesser height if County requirements so state, without a variance granted by the Architectural Committee.

SECTION 4.15 WATERCRAFT AND DOCK.

No watercraft with a power source over 10 HP shall be allowed access to Lake Sixteen from Cedar Ridge Estates. The dock shall be used only during the daylight hours. The Board of Directors shall have the power and authority to legislate the respective privileges and obligations of boaters, canoeists, and swimmers as to access, use and timing. Further limitations as to use of the lake may be imposed by Skagit County officials.

SECTION 4.16 EXTERIOR LIGHTING.

Exterior lighting of any sort which is visible from any street or from any other Lot in said property shall be installed only upon written permission from the Architectural Committee. The objectives of security and serenity shall guide the committee.

SECTION 4.17 FUEL TANKS.

No fuel tanks are allowed without the approval of the Architectural Committee. Those allowed must be protected from view by a fence or other screening. Underground fuel tanks unless their size and/or location threaten a neighbor shall be allowed if care is taken to prevent seepage.

SECTION 4.18 INGRESS AND EGRESS.

No ingress or egress road or pathways shall be constructed, maintained and/or repaired to or from any Lot, except as designated on said Survey without prior written permission of the Architectural Committee. Concrete or corrugated metal pipe culverts shall be installed under all driveways or Lot entrance roads and shall meet with the approval of Skagit County as to size, quality and location.

SECTION 4.19 OUTSIDE FIRES.

Outside fires may be built and maintained only as permitted by governing authorities of Skagit County and the State of Washington.

SECTION 4.20 REFUSE-WASTE.

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

SECTION 4.21 NUISANCES.

No noxious or offensive activity shall be carried on upon any of the said property, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the community. The Architectural Committee shall determine what activity is noxious or offensive and such determination shall be conclusive.

SECTION 4.22 DRAINAGE.

No change in the natural drainage shall be made by any Lot owner without prior approval from the Architectural Committee or governing county agencies.

Each Lot owner shall provide a drainage system plan that connects to the drainage system in existence, which in turn must comply with Skagit County ordinances concerning drainage and run-off.

No drainage facilities including pipes, ditches and ponds shall be altered without approval of Skagit County Public Works Department.

All detention facilities shall be cleaned and inspected by the Association once each year at the end of the winter wet season.

Detention facilities shall be operated and maintained in conformance with Skagit County regulations.

SECTION 4.23 USE OF FIREARMS AND EXPLOSIVES.

The use of explosives is prohibited, except as required for construction purposes on said property.

The use of firearms and hunting within the plat community is prohibited.

SECTION 4.24 UNKEPT LOT.

The Architectural Committee shall have the right at all times, but shall not be under obligation, to enter upon all Lots, tracts, or parcels of said property to care for, cut the grass upon and remove or destroy weeds, blackberries and rubbish from any such Lot, tract, or parcel.

No noxious weeds shall be permitted to grow upon any of said Lots or tracts.

If the owner(s) of the Lot shall not have corrected any such condition after receipt of thirty (30) days notice, for the purpose of maintaining an attractive overall appearance for said property; and to charge the owner or owners of said Lot, tract or parcel the actual cost plus ten percent (10%) for services rendered in alleviating any such unsightly condition, which charge shall constitute a lien against the property enforceable as provided in the case of dues, assessments and maintenance as provided in the lease and/or conveyance of said Lot, tract or parcel of Declarant or as provided in the Articles or By-Laws or resolutions of Cedar Ridge Estates Homeowners' Association.

SECTION 4.25 COMMERCIAL USE.

No Lot shall be used for commercial or business purposes except for professional or administrative occupations conducted entirely within the residence, provided such use:

• Is clearly incidental to the residential use of the dwelling;
• Does not create excessive traffic;
• Does not create excessive noise;
• Does not constitute a nuisance to neighboring property owners; and
• Is otherwise in compliance with applicable governmental regulations.

SECTION 4.26 ANIMALS.

No animals, livestock or poultry of any kind shall be raised, bred or kept on any Lot except that dogs, cats or other household pets may be kept, provided they are not kept, bred or maintained for commercial purposes.

In no case may there be more than two (2) dogs or two (2) cats per Lot.

SECTION 4.27 CLOTHESLINES, GARBAGE CANS, WOODPILES, ETC.

All clotheslines, garbage cans, woodpiles, and other similar items shall be located or screened so as to be concealed from the view of neighboring Lots, streets, and property located adjacent to the Lot.

SECTION 4.28 PARKING.

No boats, trailers, motorcycles, trucks, motorhomes, truck campers and like equipment shall be parked or stored on any part of any Lot or on public ways adjacent thereto except within the confines of an enclosed garage, storage port, or behind a screening fence or shrubbery which shall in no event project beyond the front wall of any dwelling or garage.

No owner shall permit any vehicle which is in a state of disrepair to be abandoned or to remain parked upon any Lot for more than forty-eight (48) hours.

SECTION 4.29 QUARRYING AND MINING.

No Lot, parcel or tract of said property shall be used for the purpose of mining, quarrying or drilling, exploring for, taking or producing water, oil, gas or any other hydrocarbon substances, except that the Declarant or Homeowners' Committee may drill for water for distribution to said property, or quarry rock for construction and/or maintenance purposes on said property.

SECTION 4.32 COMMON AREAS

The following shall apply:

a) TRACT A: This covers all of the road system.

The Association shall be responsible for the removal of ice and snow, ditches are to be kept clean and open, silt and debris removed and culverts kept open and free-flowing. Roads shall be maintained by the Association according to County standards.

b) TRACT B: This covers primarily the wetlands, which generally should be kept in a natural state. Any improvements done in this area will comply with County and State standards.

c) TRACTS C AND D: These areas shall be maintained in an attractive manner, consistent with all other areas of the development: common areas and home-sites.

d) TRACT E: This is the park area. It is contemplated that this area will be developed for the mutual benefit of the lot owners. Recreation facilities, such as baseball and soccer fields, etc., outdoor cooking structures, fencing, trails and common buildings shall be allowed, subject to the proviso that the same are attractive, do not unreasonably impinge upon the right of use of any property owner as to his own property and are consistent with the concept of rural residential life, as defined by the Board of Directors of the Association.

ARTICLE V ASSESSMENTS

SECTION 5.1 PURPOSE OF ASSESSMENT

The assessments provided for herein shall be used for the general purpose of promoting the recreation, health, safety, welfare, common benefit, and enjoyment of the owners and occupants of Lots, including the maintenance of real and personal property, all as may be more specifically authorized from time to time by the Board of Directors.

For the first sixty (60) months after the recording of this document, the Declarant shall be exempt from any monthly charges or assessments for all unsold lots. This shall not preclude Declarant from loaning funds to the Homeowners Association, so that construction, maintenance and repair of common areas and facilities or other purposes beneficial to the Homeowners Association can be accomplished.

During this period of time (sixty (60) months) the monthly assessment shall be $45.00 per month, per lot, for all Lots sold to owners. This may not be raised during such period of time without the majority approval of lots not owned by Declarant.

Should special assessments for special purposes become necessary or expedient, the Board of Directors of the Homeowners Association may vote assessments above and beyond the monthly assessment and in such a case, the unsold lots owned by Declarant shall be assessed the same amount as the assessment charged any lot owner.

SECTION 5.2 CREATION OF THE LIEN AND PERSONAL OBLIGATION FOR ASSESSMENTS

The owner of any Lot, excluding Declarant (per 5.1 above) by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay to the Association:

1. Annual assessments or charges;
2. Special assessments, such assessments to be established and collected as hereinafter provided; and
3. Specific assessments against any particular Lot which are established pursuant to the terms of this Declaration including, but not limited to, reasonable fines as may be imposed in accordance with the terms of this Declaration.

All such assessments, together with late charges and interest, not to exceed the maximum legal rate, costs, and reasonable attorney's fees actually incurred, shall be a charge on the land and shall be a continuing lien upon the Lot against which each assessment is made.

Each such assessment, together with late charges, interest, costs, and reasonable attorney's fees actually incurred, shall also be personally liable for his or her portion of each assessment coming due while he or she is the owner of a Lot, and his or her grantee shall be jointly and severally liable for such portion thereof as may be due and payable at the time of conveyance; provided, however, the liability of a grantee for the unpaid assessments of its grantor shall not apply to any first mortgage or lien holder taking title through foreclosure proceedings or deed in lieu of foreclosure.

Assessments shall be paid at a uniform rate per Lot in such manner and on such dates as may be fixed by the Board of Directors, which may include, without limitation, acceleration upon ten (10) days written notice of the annual assessment for delinquents. Unless otherwise provided by the Board, the assessment shall be paid in annual installments.

SECTION 5.3 COMPUTATION

It shall be the duty of the Board to prepare a budget covering the estimated costs of operating the Association during the coming year, which shall include a capital contribution or reserve in accordance with a capital budget separately prepared.

The Board shall cause the budget and the assessments to be levied against each Lot for the following year to be delivered to each member at least thirty (30) days prior to the end of the current fiscal year.

The budget and the assessment shall become effective unless disapproved at a meeting by a majority of the owners.

Notwithstanding the foregoing however, in the event the membership disapproves the proposed budget or the Board fails for any reason so to determine the budget for the succeeding year, then and until such time as a budget shall have been determined, as provided herein, the budget in effect for the then current year shall continue for the succeeding year.

SECTION 5.4 LIEN FOR ASSESSMENTS

All sums assessed against any Lot pursuant to this Declaration, together with late charges, interest, costs and reasonable attorney's fees actually incurred, as provided herein, shall be secured by a lien on such Lot in favor of the Association.

Such lien shall be superior to all other liens and encumbrances on such Lots, except for:

1. Liens of ad valorem taxes; or
2. Liens for all sums unpaid on a first mortgage or on any mortgage to Declarant duly recorded in the land records of the County where the community is located and all amounts advanced pursuant to such mortgage and secured thereby in accordance with the terms of such instrument.

All other persons acquiring liens or encumbrances on any Lot after this Declaration shall have been recorded in such records shall be deemed to consent that such liens or encumbrances shall be inferior to future liens for assessments, as provided herein, whether or not prior consent is specifically set forth in the instruments granting such liens or encumbrances.

SECTION 5.5 EFFECT OF NONPAYMENT OF ASSESSMENTS; REMEDIES OF THE ASSOCIATION

Any assessments which are not paid when due shall be delinquent. Any assessment delinquent for a period of more than thirty (30) days shall incur a late charge in an amount as the Board may from time to time determine. The Association shall cause a notice of delinquency to be given to any member who has not paid within thirty (30) days following the due date. If the assessment is not paid within sixty (60) days, a lien, as herein provided, shall attach and, in addition, the lien shall include the late charge and interest, not to exceed the maximum legal rate on the principal amount due, and all late charges from the date first due and payable, all costs of collection, reasonable attorney's fees actually incurred, and any other amounts provided or permitted by law.

In the event that the assessment remains unpaid after ninety (90) days, the Association may, as the Board shall determine, institute suit to collect such amounts and to foreclose its lien.

Each owner, by acceptance of a deed or as a party to any other type of conveyance, vests in the Association or its agents the right and power to bring all actions against him or her, personally, for the collection of such charges as a debt or to foreclose the aforesaid lien in the same manner as other liens for the improvement of real property.

The lien provided for in this Article shall be in favor of the Association and shall be for the benefit of all other owners. The Association, acting on behalf of the owners, shall have the power to bid on the Lot at the foreclosure sale or to acquire, hold, lease, mortgage, or convey the same.

No owner may waive or otherwise exempt liability for the assessments provided for herein including, by way of illustration but not limitation, abandonment of the Lot. No diminution or abatement of assessments shall be claimed or allowed by reason of any alleged failure of the Association to take some action or perform some function required to be taken or performed by the Association under this Declaration or the By-Laws, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken by the Association to comply with any law, ordinance, or with any order or directive of any municipal or other governmental authority, the obligation to pay assessments being a separate and independent covenant on the part of each owner.

All payments shall be applied first to costs and attorney's fees, then to late charges, then interest, and then to delinquent assessments.

SECTION 5.6 DATE OF COMMENCEMENT OF ANNUAL ASSESSMENTS

The annual assessments provided for herein shall commence as to all Lots then existing and subject to assessment under this Declaration on the first day of the month following the conveyance of the first Lot by the Declarant to a person other than Declarant, and shall be due and payable in a manner and on a schedule as the Board of Directors may provide.

The first annual assessment shall be prorated according to the number of months then remaining in that fiscal year.

SECTION 5.7 ASSESSMENT OBLIGATION OF DECLARANT

(a) After the commencement of assessment payments as to any Lot, Declarant, on behalf of themselves and their successors and assigns, covenant and agree to pay the full amount of the assessment as to any occupied residence; provided, however, each Lot owned by Declarant which does not contain an occupied residence shall not be subject to any assessment provided for herein, except as provided in subsection (b).

(b) Notwithstanding anything to the contrary herein, the Declarant may contribute to the benefit of the Homeowners Association services or materials or a combination of services and materials (herein collectively called "in kind contribution"), rather than in money.

The amount of any "in kind contribution" shall be the fair market value of the contribution. If the Declarant and the Association agree as to the value of any contribution, the value shall be as agreed.

If the Association and the Declarant cannot agree as to the value of any contribution, the Declarant shall supply the Association with a detailed explanation of the service performed and material furnished, and the Association shall acquire bids for performing like services and furnishing like materials from three (3) independent contractors approved by the Declarant who are in the business of providing such services and materials.

If the Association and the Declarant are still unable to agree on the value of the contribution, the value shall be deemed to be the average of the bids received from the independent contractors.

SECTION 5.8 SPECIFIC ASSESSMENTS

The Board shall have the power to specifically assess pursuant to this Section as, in its discretion, it shall deem appropriate.

Failure of the Board to exercise its authority under this Section shall not be grounds for any action against the Association or the Board of Directors, and authority under this Section in the future with respect to any expenses, including an expense for which the Board has not previously exercised its authority under this Section, shall be preserved.

The Board may specifically assess Lots for the following Association expenses, except for expenses incurred for maintenance and repair of items which are the maintenance responsibility of the Association as provided herein including, but not limited to, the maintenance of private roads, common areas, including but not limited to the boat and dock area and the playfield area:

(a) Expenses of the Association which benefit less than all of the Lots may be specifically assessed equitably among all of the Lots which are benefited according to the benefit received.

(b) Expenses of the Association which benefit all Lots, but which do not provide an equal benefit to all Lots, may be assessed equitably among all Lots according to the benefit received.

ARTICLE VI MORTGAGEE PROVISIONS

The Association shall comply with the provisions of the National Mortgage Association or the Federal Home Loan Mortgage Corporation for private covenants and restrictions and notice requirements thereunder. Provided, however, each Lot owner shall be obligated to provide the Association with the name and address of the holder of any mortgage encumbering the owner's Lot. The Association acting by and through its Board without approval of owners may cause amendments to this Article to reflect or comply with changes initiated or adopted by the aforesaid governmental agencies. No provision of this Declaration or the Association By-Laws shall be construed as giving any owner or other party priority over rights of the first mortgagee of any Lot in the case of distribution to such owner insurance proceeds or condemnation awards for losses and taking of common property.

ARTICLE VII GENERAL PROVISIONS

SECTION 7.1 ENFORCEMENT

Each owner and every occupant of a Lot shall comply strictly with the By-Laws, the rules and regulations, the use restrictions, as they may be lawfully amended or modified from time to time by the Homeowners Association and with the covenants, conditions, and restrictions set forth by the Homeowners Association in this Declaration and in the deed to his or her Lot, if any.

The Board of Directors may impose fines or other sanctions, which shall be collected as provided herein for the collection of assessments.

Failure to comply with this Declaration, the By-Laws or the rules and regulations shall be grounds for an action to recover sums due for damages or injunctive relief, or both, maintainable by the Board of Directors on behalf of the Association or, in a proper case, by an aggrieved owner.

Failure by the Association or any owner to enforce any of the foregoing shall in no event be deemed a waiver of the right to do so thereafter.

SECTION 7.2 SELF-HELP

In addition to any other remedies provided for herein, the Association or its duly authorized agent shall have the power to enter upon a Lot or any portion of the common property to abate or remove, using such force as may be reasonably necessary, any erection, thing or condition which violates this Declaration, the By-Laws, the rules and regulations, or the use restrictions.

Unless an emergency situation exists, the Board shall give the violating Lot owner thirty (30) days written notice of its intent to exercise self-help.

All costs of self-help, including reasonable attorney's fees actually incurred, shall be assessed against the violating Lot owner and shall be collected as provided for herein for the collection of assessments.

SECTION 7.3 DURATION

The provisions of this Declaration shall run with and bind the land and shall be and remain in effect perpetually to the extent permitted by law; provided, however, so long as Washington law limits the period during which covenants restricting lands to certain uses may run, any provisions of this Declaration affected thereby shall run with and bind the land so long as permitted by such law, and such provisions may be renewed or extended, in whole or in part, beyond the initial period permitted by such law for successive periods not to exceed the period permitted by such law, provided such renewal or extension is approved by at least a majority of the owners present or represented by proxy at a meeting duly called for such purpose.

Further, no such renewal or extension shall be effective unless there is filed for record in the Office of the Clerk of the Superior Court of the County where the community is located on or before the effective date thereof an instrument executed by the President and Secretary of the Association which shall state the terms of such renewal or extension and which shall contain a certification by such Secretary that such extension and renewal was duly approved.

Every purchaser or grantee of any interest in any real property subject to this Declaration by acceptance of a deed or other conveyance therefor, thereby agrees that such provisions of this Declaration may be extended and renewed as provided in this Section.

SECTION 7.4 AMENDMENT

This Declaration may be amended unilaterally at any time and from time to time by Declarant:

1. If such amendment is necessary to bring any provision hereof into compliance with any applicable governmental statute, rule or regulation or judicial determination which shall be in conflict therewith;
2. If such amendment is necessary to enable any reputable title insurance company to issue title insurance coverage with respect to the Lots subject to this Declaration;
3. If such amendment is required by an institutional or governmental lender or purchaser of mortgage loans including, for example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to enable such lender or purchaser to make or purchase mortgage loans on the Lots subject to this Declaration; or
4. If such amendment is necessary to enable any governmental agency or reputable private insurance company to insure mortgage loans on the Lots subject to this Declaration;

provided, however, any such amendment shall not adversely affect the title to any owner's Lot unless any such Lot owner shall consent thereto in writing.

In addition to the above, this Declaration may be amended upon the affirmative vote or written consent, or any combination thereof, of at least a majority of the owners. Amendments to this Declaration shall become effective upon recordation unless a later effective date is specified therein.

For a period of sixty months after the recording of this Declaration this document may not otherwise be amended except by the majority vote of the owners of Class B stock. Thereafter, the following rules shall apply:

This Declaration may be amended upon the affirmative vote or written consent or any combination thereof of at least a majority of the owners, including Class B Lot owners.

Amendments to this Declaration shall become effective upon recordation unless a later effective date is specified therein.

SECTION 7.5 PARTITION.

The common property shall remain undivided, and no Lot owner nor any other person shall bring any action for partition or division of the whole or any part thereof without the written consent of all owners of all portions of the property located within the community and without the written consent of all holders of all mortgages encumbering any portion of the property including, but not necessarily limited to, the Lots located within the community.

SECTION 7.6 GENDER AND GRAMMAR.

The singular, wherever used herein, shall be construed to mean the plural, when applicable, and the use of the masculine pronoun shall include the neuter and feminine.

SECTION 7.7 SEVERABILITY.

Whenever possible, each provision of this Declaration shall be interpreted in such manner as to be effective and valid, but if the application of any provision of this Declaration to any person or to any property shall be prohibited or held invalid, such prohibition or invalidity shall not affect any other provision or the application of any provision which can be given effect without the invalid provision or application and, to this end, the provisions of this Declaration are declared to be severable.

SECTION 7.8 CAPTIONS.

The captions of each Article and Section hereof, as to the contents of each Article and Section, are inserted only for convenience and are in no way to be construed as defining, limiting, extending, or otherwise modifying or adding to the particular Article or Section to which they refer.

SECTION 7.9 CONVEYANCES OF COMMON PROPERTY.

The Association shall accept such conveyances of common property as are from time to time made to the Association by the Declarant.

SECTION 7.10 INDEMNIFICATION.

The Homeowners Association shall indemnify every officer and director against any and all expenses, including attorney's fees, imposed upon or reasonably incurred by any officer or director in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding if approved by the Board of Directors) to which he or she may be a party by reason of being or having been an officer or director.

The officers and directors shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith.

The officers and directors shall have no personal liability with respect to any contract or other commitment made by them in good faith on behalf of the Association (except to the extent that such officers or directors may also be members of the Association), and the Association shall indemnify and forever hold such officer and director free and harmless against any and all liability to others on account of any such contract or commitment.

Any right to indemnification provided herein shall not be exclusive of any other rights to which any officer or director, or former officer or director, may be entitled.

The Association shall maintain adequate general liability and officers and directors liability insurance to fund this obligation if such insurance is reasonably available.

SECTION 7.11 NOTICE OF SALE OR LEASE.

In the event an owner sells or leases his or her Lot, the owner shall give to the Homeowners Association, in writing, the name of the purchaser or lessee of the Lot and such other information as the Board may reasonably require.

SECTION 7.12 COUNTERPART.

For the convenience of the Declarant, this Declaration may be simultaneously executed in counterparts, each of which, when so executed and delivered, shall constitute an original and shall be fully enforceable as an original, if said counterpart or the signature pages are signed by all Declarants.

SIGNATURES

DATED this ______ day of __________________, 1993.

DECLARANTS

WARREN GILBERT, JR.

MARILYN GILBERT

VERN SIMS

MARIE SIMS

CEDAR RIDGE ESTATES HOMEOWNERS ASSOCIATION

By: ______________________________ VERN SIMS, President

By: ______________________________ MARILYN GILBERT, Secretary

STATE OF WASHINGTON )

:ss COUNTY OF SKAGIT )

I certify that I know or have satisfactory evidence that VERN SIMS signed this instrument and acknowledged it to be his free and voluntary act as an officer of CEDAR RIDGE ESTATES HOMEOWNERS ASSOCIATION for the uses and purposes mentioned in this instrument.

DATED: __________________

Notary Public in and for the State of Washington

Residing at: Mount Vernon

My appointment expires: ____________

STATE OF WASHINGTON )

:ss COUNTY OF SKAGIT )

I certify that I know or have satisfactory evidence that MARILYN GILBERT, VERN SIMS, signed this instrument on oath, stated that they were authorized to execute this instrument, and acknowledged it as officers of the CEDAR RIDGE ESTATES HOMEOWNERS ASSOCIATION to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.

DATED: __________________

Notary Public in and for the State of Washington

Residing at: Mount Vernon

My appointment expires: ____________

STATE OF WASHINGTON )

:ss COUNTY OF SKAGIT )

I certify that I know or have satisfactory evidence that WARREN M. GILBERT, as Attorney-in-Fact for WARREN GILBERT, JR., signed this instrument on oath, stated that he was authorized to execute this instrument and acknowledged it to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.

DATED: __________________

Notary Public in and for the State of Washington

Residing at: Mount Vernon

My appointment expires: ____________

DEFINITIONS

The following words, when used in this Declaration or in any Supplementary Declaration (unless the context clearly prohibits), shall have the following meanings:

(a) "Association" shall mean and refer to Cedar Ridge Homeowners' Association, Inc., a Washington nonprofit corporation, its successors and assigns.

(b) "By-Laws" shall refer to the By-Laws of Cedar Ridge Estates Homeowners' Association, Inc., attached to this Declaration as Exhibit "D" and incorporated herein by this reference.

(c) "Common Property" shall mean any and all real and personal property, easements, and other interests therein, together with the facilities and improvements located thereon, now or hereafter owned by the Association for the common use and enjoyment of the Owners. (Tracts A, B, C, D and E of the plat of Cedar Ridge Estates.)

(d) "Community" shall mean and refer to that certain real property and interests therein described in Exhibit "B" attached hereto, and:

1. Such additions thereto as may be made by Declarant (or its mortgagee or transferee) as provided in this Declaration; and
2. Such additions thereto as may be made by the Association by Supplementary Declaration of other real property.

(e) "Lot" shall mean any plot of land within the Community, whether or not improvements are constructed thereon, which constitutes or will constitute, after construction of improvements, a single dwelling site as shown on the recorded plat of the Community (or amendments thereto). Ownership of each Lot shall include, and there shall pass with each Lot as an appurtenance, whether or not separately described, all rights, title, and interest of an Owner in the Common Property, including membership in the Association.

(f) "Majority" means those eligible votes, Owners, or other groups, as the context may indicate, totaling more than fifty percent (50%) of the total eligible number.

(g) "Mortgage" means any mortgage, deed of trust, deed to secure debt, or similar instrument issued for the purpose of conveying or encumbering real property as security for payment or satisfaction of an obligation.

(h) "Mortgagee" shall mean the holder of a Mortgage.

(i) "Owner" shall mean the record Owner, whether one or more persons or entities, of fee simple title to any Lot within the Community, excluding persons holding such interest merely as security for performance or satisfaction of an obligation.

(j) "Person" means any natural person, corporation, joint venture, partnership (general or limited), association, trust, or other legal entity.

EXHIBIT "B"

Description of Property

CEDAR RIDGE ESTATES, recorded in Volume _____ of Plats, Page _____, records of Skagit County, Washington.

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