Covenants Page 5

BYLAWS:

(6) Authority of the Board of Directors (cont.):

The Board has the power to enforce any and all of the provisions of these convenants, conditions, and restrictions and such other rules and regulations as the board may adopt relating to the control of management of the roads, common areas and water and sewer sytems by legal or other appropriate action.

(7) MAINTENANCE FUNDS, ASSESSMENTS:

The fiscal year shall be July 1 to June 30. Prior to the begining of each year, the board of directors shall estimate the net cash requirements during such fiscal year for the payments described in paragraph 6 hereof, and to provide a reasonable provision for contingencies (including default of any owner in the payment of assessments), after taking into account any expedited income and any surplus from the prior year's assessments.

Said estimated cash requirements shall be assessed to the owner equally, (e.g. 1/50 if 50 lots) to each lot. Each owners shall be obligated to pay assessments pursuant to this paragraph to the board annually on or before the first day of each fiscal year, or in such other manner as the board shall designate.

The Board may, at any time and from time to time, modify its prior estimates of net cash requirements for any year and increase or decrease the assessment payable by owners duringt he balance of such year in the light of such modified cash requirements.

All assessments collected from owners pursuant to paragraph 7, all rental and other income received with respect to the lots purchase, leased, rented or subleased by the board and the net proceeds of any sale thereof shall be deposited in a maintenance fund and disbursed by the board for the purpose described in paragraph 6 hereof.

In the event that any owner shall fail to pay any assessment within the thirty (30) days following receipt from the board or a request in writing for such payment, such owner shall also pay to the board a late payment charge in such amount as may be fixed from time to time by the baord, which shall constitute an additional assessment payable by such owner hereunder.

Moreover, all costs and expenses, including reasonable attorney's fees incurred in collection or attempting to collect any assessment from an owner, including any costs and expenses incurred in foreclosing the lien securing such assessment created by Paragraph 8 hereof, shall be promptly reimbursed by such owner and shall constitute an additional assessment payable by such owner and secured by said lien.

(8) LIENS:

There is hereby created a lien on each lot and every part thereof to secure the payment of the amount or each assessment for maintenance of water and sewer systems and roads and common areas whether regular or special, payable hereunder by the owner thereof, provided that no action shall be brought to foreclose such lien until notice of lien is mailed to such owner, and a copy thereof is recorded in the office of the auditor of the County in which the property is situated. Such lien may be enforced by sale by the Board after failure of owner to pay such assessments in accordance with its terms, such sale to be conducted in accordance with the provisions of lien foreclosure section of the Washington State Statutes.