Covenants Page 1

Part of the plan this year is to update the covenants to Seven Bays. This page lays out the current covenants in the left hand column with suggested changes in the right hand column. If you have a suggestion you would like to make, email it to me and I will put it up here for you. All suggestions must be signed by the lot owner. Eventually, we will cull these out and propose a set of changes at the July meeting.

This instrument made this 9th day of July, 1983 by Seven Bays, Inc., a Washington Corporation hereinafter called "Grantors" and/or developer, witnesseth:

(A) GRANTORS ARE THE OWNERS OF THE REAL PROPERTY SITUATED IN THE COUNTY OF LINCOLN, STATE OF WASHINGTON, DESCRIBED AS; SEE FILED PLAT OF SEVEN BAYS INC. A WASHINGTON CORPORATION. GRANTORS HAVE SUBDIVIDED A PORTION OF THE ABOVE DESCRIBED PROPERTY AND INTEND TO SUBDIVIDE THE BALANCE.

(B) THIS INSTRUMENT SUPERSEDES ALL PREVIOUSLY WRITTEN COVENANTS FOR ALL PLATS WITHIN SEVEN BAYS INC. DEVELOPMENT AND IS INTENDED TO CONSOLIDATE WITHIN THIS HOMEOWNERS ASSOCIATION PLATS 1, 2, 3, 4, FRYS ADDITION, AIRPORT ADDITION, AND ANY SUBSEQUENT ADDITIONS OR PLATS DEVELOPED BY GRANTORS.

(C) GRANTORS HEREBY DECLARE THAT THE ENTIRE SUBDIVIDED PROPERTY IS AND SHALL BE HELD, CONVEYED, ENCUMBERED, LEASED, AND USED, SUBJECT TO THE FOLLOWING UNIFORM RESTRICTIONS, COVENANTS, CONDITIONS AND EQUITABLE SERVITUDES (HEREIN CALLED “RESTRICTIONS”) WHICH ARE IN FURTHERANCE OF A PLAN FOR THE SUBDIVISION, IMPROVEMENT AND SALE OF THE SUBDIVIDED PROPERTY, AND ARE ESTABLISHED TO ENHANCE THE VALUE, DESIRABILITY AND ATTRACTIVENESS OF THE SUBDIVIDED PROPERTY AND EVERY PART THEREOF. ANY CONVEYANCE OR CONVEYANCES MADE OR CAUSED TO BE MADE BY GRANTOR IN THE SUBDIVIDED PROPERTY WILL BE BY WARRANTY DEEDS. THE RESTRICTIONS SHALL RUN WITH THE SUBDIVIDED PROPERTY, SHALL BE BINDING UPON ALL PERSONS HAVING OR ACQUIRING ANY INTEREST IN THE SUBDIVIDED PROPERTY OR IN ANY PART HEREOF, SHALL INURE TO THE BENEFIT OF EVERY POSITION OF THE SUBDIVIDED PROPERTY, OR ANY INTEREST THEREIN SHALL INURE TO THE BENEFIT AND BE BINDING UPON EACH SUCCESSOR IN THE INTEREST OF GRANTORS, BY ANY OWNER OR HIS SUCCESSOR IN INTEREST, OR BY THE BOARD OF DIRECTORS HEREINAFTER MENTIONED.

BYLAWS:

(1) MEMBERSHIP:

Each lot owner shall automatically become a member of a property owners association formed by incorporation, whose affairs shall be administered by a board of directors. The Name of the Association shall be Seven Bays Unlimited.

(2) VOTING:

At any meeting of owners, each owner of a lot shall be entitled to cast one (1) vote. Any owner may attend and vote at such meeting in person or by an agent duly appointed by an instrument in writing signed by the owner and filed with the board.

Any designation of an agent to act for an owner may be revoked at any time by written notice to the board, and shall be deemed revoked with the board shall receive actual notice of the death or judicially declared incompetence of such owner or of the conveyance by such owner of his lot. where an owner.

Where an owner consists of two or more persons, any or all of such persons may attend any meeting of the owners, but it shall be necessary for those present to act unaminously in order to cast the vote to which they are entitled.

Any designation of an agent to act for such person myst be signed by all of such persons. Only members in good standing are entitled to vote.

Grantors shall not be entitled to vote any unsold lots owner by Grantors.