A majority of the owners of building sites having completed dwellings upon the premises as located in Division No. 2 , Plat of Dugualla Bay Heights, as per Plat recorded in the records of Island County, Washington, do hereby adopt these Amended Building and Use Restrictions in order to maintain a good and restricted residential character for the premises, and to ensure a homogeneous development of the premises and all of the property within the said Plat, and for the rights and benefit of each owner of a building site in the aforesaid division and of the Plat of Dugualla Bay Heights, do hereby provide and declare that all of the lots and blocks in the Plat of Dugualla Bay Heights, Division No. 2, hereinafter called ‘the premises’, shall be owned, held, used, occupied and developed subject to these Amended Building and Use Restrictions and do hereby provide and impose as follows:

1. This Amended Building and Use Restriction supersedes and replaces in its entirety the previous Building and Use Restrictions and Amendments thereto, previously filed under the following Island County Auditor’s File Numbers: 144198, 168612, 323879, 85013869, and 95020779.

This new Building and Use Restriction has been adopted in accordance with the amending process set forth in the previous Building and Use Restriction recorded under Island County Auditor’s File Number 144198.

2. No building site shall be used except for single occupancy residential purposes. No building site shall be used for business or commercial purposes. No building shall be erected, altered, placed or permitted to remain on any building site other than one detached single occupancy dwelling, except that one private garage, a guest house and a garden house, herein termed "accessory buildings", may be erected, altered, placed and permitted to remain on such building site, if used as an accessory to such dwelling. Rental for residential purposes of a dwelling coming within the terms hereof shall not constitute a business or commercial purpose.

3. No used house shall be moved upon, erected, altered, placed or permitted to remain upon any building site without written permission of the Board of Directors of Dugualla Community, Inc., having been first obtained.

4. Any building to be erected on the premises shall be in accordance with the following procedures:

No dwelling shall be erected, altered, placed or permitted to remain on any building site exceeding 1 1/2 stories in height and having a floor area less than 1200 square feet excluding any attached car port or garage, but including any

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porch, patio, and passageway covered by a permanent roof integral with the roof of the principal structure.

No dwelling or accessory building shall be placed nearer than 20 feet to any front property line, nor nearer than 20 feet to a rear property line, nor nearer than 5 feet to the side boundary of any building site.

A. Approval of Plans

For the purpose of further insuring the development of the land so platted as an area of high standards, the owner occupant of each and every lot by acceptance of title thereto, or by taking possession thereof, and the present owner of each lot by retaining title thereto covenants and agrees that he or she shall not erect any building, dwelling, or other structure unless and until the plans and specifications therefore and plot plan have been approved in writing by the Architectural Control Committee hereinafter provided.

Each such building, dwelling, or structure shall be placed on the premises only in accordance with the plans and specifications and plot plans so approved. Refusal of approval of plans and specifications by such committee must be based upon reasonable grounds to insure homogenous development of the premises and of the rights of other real property owners in Dugualla Bay Heights and consistent with the restrictions heretofore filed and the amendments filed hereof. If the committee shall fail to approve or disapprove the plans and specifications within thirty days after written request therefore then such approval shall not be required, provided that no building or other structure shall be erected which violates any of the covenants herein contained.

B. Architectural Control Committee

The Board of Directors shall appoint one or more persons to the committee herein referred to and a successor committee or committees shall also be appointed by the Board of Directors of Dugualla Bay Heights. The committee shall be composed of such members as the directors of Dugualla Bay Heights, Inc. shall so provide.

C. 1 1/2 Story Height Limitation

Whenever and wherever the term "1 1/2 stories in height" is used in any of the restrictive and protective covenants for all nine of the subdivisions of Dugualla Bay Heights as a limitation of the height of a limitation of the height of a structure on any lot so restricted, the following shall define the maximum height of said structure:

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A structure whose highest point, excluding chimneys, does not exceed 18 feet, measured at the mid-point of the building site (lot) setback line (as described in these covenants) drawn parallel to the street which is named as the official post office address of the building site (lot) or a structure whose highest point does not exceed 14 feet above the highest point on the building site (lot) shall be in conformance with the height limitation, "1 1/2 stories in height." All structures in excess of this height are hereby defined to be conclusively in excess of "1 1/2 stories in height."

The measurements set forth above will be established before any filling, excavation or site preparation is accomplished on the building site and will be shown clearly on all plot plans, exterior elevations, building sections and specifications for the buildings or structures discussed above.

The Dugualla Community, Inc. Board of Directors is authorized, in their discretion, to approve structures which exceed the above heights on recommendation of the architectural control committee so long as the quality and expanse of views of other property owners are preserved, the structures are homogenous to the development of the plat, and there is no objection from property owners whose views may be affected by the non-conforming structure.

5. Construction on any lot shall require a building permit and sewage disposal permit prior to commencement of work. No building shall be erected, altered, placed or permitted to remain upon a building site unless construction be good and substantial, unless all chimneys installed shall be equal to or better than fire insurance underwriter's approved specifications and unless the exterior, shall be completed and finished in a usual manner, having regard for the type of construction. Work shall be prosecuted with reasonable expedition, upon any building or structure from the beginning of construction to completion of the exterior. The exterior of any new constructed structure shall be completed within two years after the date of commencement of construction.

6. No dwelling shall be occupied until the exterior thereof shall be substantially completed. No structure, other than a dwelling conforming to these Building and Use Restrictions, shall be occupied as a temporary or permanent residence, and no tent, trailer or mobile home shall be moved onto or erected or maintained upon the premises or occupied as a temporary or permanent residence thereon, except that a finished garage or a finished garden house, or a trailer, may be occupied as a temporary residence for a period of not to exceed 24 consecutive months during the period of construction of a dwelling, and provided the same shall be connected to a septic tank.

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7. No dwelling shall be occupied or continue to be occupied unless, within 90 days after water shall be available in a pipe line designed to serve the building site, it shall be connected with a sewer or a septic tank designed for sewage disposal, installed, used and maintained in conformity with the requirements of the Department of the State of Washington or of Island County having jurisdiction.

8. In conjunction with each dwelling there shall be maintained and used a closed sanitary container for the deposit of garbage and refuse.

9. No tank for the storage of fuel oil or propane gas shall be erected or used unless it is installed in some type of enclosure and is not obtrusive to the neighbors. This enclosure can be man-made or horticultural in nature, must conform to Island county regulations and be approved by the Architecture Control Committee.

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

11. Each owner of a building site, upon which a dwelling has been constructed, shall keep the building site in a neat, clean and orderly condition. Recreational vehicles, boats and trailers of various descriptions should be parked on the owner’s property to protect, preserve and enhance neighbors’ views and to maintain a neat and orderly appearance in the division. Visiting recreational vehicles shall not remain on any site within the community for a period greater than 14 consecutive days, nor exceed 28 calendar days per year.

12. No lot shall be used or maintained as a dumping ground for rubbish or junk of any kind. Trash, garbage or other waste shall not be kept except in sanitary containers. All equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition. All outdoor burning shall be done in accordance with applicable Island County regulations. No noxious weeds shall be permitted to grow thereon and further that no weeds or wild growth shall be allowed to grow thereon uncontrolled such that the height thereof shall in any manner detract from the appearance thereof. No unlicensed or inoperable vehicles shall be allowed to remain in open storage on any building site without written authorization from the Dugualla Community, Incorporated Board of Directors.

13. No commercial goods, equipment, trucks, vehicles or paraphernalia used or designed for use in connection with any business, service, or trade, shall be kept or stored in the open on any residential lot.

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14. No sign of any kind shall be displayed to the public view on any lot except one professional sign of not more than one square foot, one sign of not more than five square feet advertising the property for sale or rent, or signs used by a builder to advertise the property during the construction and sales period.

15. For all lots in Block #9 and Block #10; in order to preserve as many trees and other vegetation as possible within the Division, while at the same time to carry out the primary intent of this paragraph to protect, preserve and enhance views of the water (Dugualla and Saratoga Passage) and the mountains (Mt. Baker and the adjoining foothills), no tree, bush and/or other horticultural growth shall be allowed to exceed 15 feet if the said height affects the view of any other property owner within the Division. The sole determining factor of whether or not a view is affected shall be solely determined by the party whose view is affected and not by the owner of the tree, bush and/or other horticultural growth. The 15 foot height limitation shall be measured from the ground at the base of the tree, bush and/or other horticultural growth. Any property owner who deems his view affected shall request the owner of the offending tree, bush or horticulture to reduce the size of the said vegetation to no higher than 15 feet, and upon such written request, the owner of the said vegetation shall reduce the height of the vegetation to no higher than 15 feet. Vegetation over 15 feet shall be allowed so long as it does not affect the view of another property owner within the said Division, provided however, as aforestated, the opinion of the person whose view is affected shall be the sole and determining factor as to whether or not vegetation shall be reduced to a 15 foot limitation.

16. For all lots in Block #6 and Tract "W" in Block #7; in order to preserve as many trees and other vegetation as possible within the Division, while at the same time to carry out the primary intent of this paragraph to protect, preserve and enhance views of the water (Dugualla and Saratoga Passage) and the mountains (Mt. Baker and the adjoining foothills), no tree, bush and/or other horticultural growth shall be allowed to exceed 10 feet if the said height affects the view of any other property owner within the Division. The sole determining factor of whether or not a view is affected shall be solely determined by the party whose view is affected and not by the owner of the tree, bush and/or other horticultural growth. The 10 foot height limitation shall be measured from the ground at the base of the tree, bush and/or other horticultural growth. Any property owner who deems his view affected shall request the owner of the offending tree, bush or horticulture to reduce the size of the said vegetation to no higher than 10 feet, and upon such written request, the owner of the said vegetation shall reduce the height of the vegetation to no higher than 10 feet. Vegetation over 10 feet shall be allowed so long as it does not affect the view of another property owner within the said Division, provided however, as aforestated, the opinion of the person whose view is affected shall be the sole

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and determining factor as to whether or not vegetation shall be reduced to a 10 foot limitation.

17. For all lots in Block #8 and lot #1 in Block #7; in order to preserve as many trees and other vegetation as possible within the Division, while at the same time to carry out the primary intent of this paragraph to protect, preserve and enhance views of the water (Dugualla and Saratoga Passage) and the mountains (Mt. Baker and the adjoining foothills), no tree, bush and/or other horticultural growth shall be allowed to exceed 25 feet if the said height affects the view of any other property owner within the Division. The sole determining factor of whether or not a view is affected shall be solely determined by the party whose view is affected and not by the owner of the tree, bush and/or other horticultural growth. The 25 foot height limitation shall be measured from the ground at the base of the tree, bush and/or other horticultural growth. Any property owner who deems his view affected shall request the owner of the offending tree, bush or horticulture to reduce the size of the said vegetation to no higher than 25 feet, and upon such written request, the owner of the said vegetation shall reduce the height of the vegetation to no higher than 25 feet. Vegetation over 25 feet shall be allowed so long as it does not affect the view of another property owner within the said Division, provided however, as aforestated, the opinion of the person whose view is affected shall be the sole and determining factor as to whether or not vegetation shall be reduced to a 25 foot limitation.

18. An easement is reserved for the installation, operation, repair, and replacement of water pipe lines over, under, and across the northerly 5 feet of Lot #5 and the southerly 5 feet and the westerly 5 feet of Lot #4, Block #8, Division #2.

19. An easement and right of way is hereby reserved for the installation, operation, repair and replacement of a covered drainage ditch over, under and across the northerly 5 feet of Lots #1,2,3,4,5,6,7,8, and 9 in Block #10, and the easterly 5 feet of Lots #1,2, and 3, Block #6, and the easterly 5 feet of Lot #2 and the westerly 5 feet of Lot #3, Block #8, and the southerly 5 feet of Lot #3 and the northerly 5 feet of Lot #4, Block #8, and the southerly 5 feet of Lot #5 and the northerly 5 feet of Lot #6, Block #8, and the westerly 5 feet of Lots #3,4,5, and 6, Block #8, and the southerly 5 feet of Lot #1, Block #7, all in Division #2. Within these easements no structures, trees, vegetation, horticultural growths or other materials shall be placed or permitted to remain which may damage or interfere with the installation and direction of flow of drainage channels in the easements, or which may obstruct or retard the flow of water through drainage channels in the easements

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20. Upon purchase of a lot in the Plat of Dugualla Bay Heights, each fee owner or contract purchaser of a residential lot or lots situated in the premises is hereby automatically made a member of Dugualla Community Inc., a Washington non- profit corporation, (hereinafter, called the “corporation”) on the following terms and conditions:

(a) Each membership in the corporation runs automatically with the ownership of the land, and each membership shall be governed by the Articles of Incorporation, Bylaws and Rules and Regulations of the Corporation, including any amendments or revisions thereof, which may hereafter be effected from time to time.

(b) Each fee owner or contract purchaser shall maintain his membership in the corporation in good standing, subject to the restrictions for aforesaid Articles, By- Laws and Rules and Regulations, as long as he shall continue to have a fee owner's or contract purchaser's interest in said residential lot or lots. The membership shall cease and terminate upon the bona fide transfer of ownership of said residential lot or lots by the member (it being understood that the sale of the realty under a real estate contract or assignment of a vendee's interest in a real estate contract shall constitute a transfer of ownership for the purposes of termination of membership).

(c) Each member shall pay when due all fees, dues, charges or assessments which may from time to time become payable to the corporation; and any default or defaults on such obligations or otherwise with regard to the member's duties and obligations as a member of the corporation, shall subject said defaulting member and/or the residential lot or lots owner or being purchased by said defaulting member, to such claims, damages, liens, mortgages, penalties and/or other liabilities as may now or hereafter be provided for by law and/or in the aforesaid Articles, Bylaws and Rules and Regulations of the Corporation.

21. These Building and Use Restrictions may be supplemented, relaxed, revoked or amended, in whole or in part, at any time by a majority of the fee owners or contract purchasers of a residential lot or lots situated upon the premises, evidenced by an instrument in writing, filed for record in the office of the Auditor of Island County.

22. These Building and Use Restrictions shall run with the land and shall be binding upon vendees and/or grantees of the subdividers herein, and all persons, firms and corporations obtaining title to or in any manner occupying the premises or any portion thereof from the date hereof.

23. These Building and Use Restrictions may be enforced by any lot or building site owner, or by Dugualla Community, Inc., by proceedings at law or in equity against any person, firm or corporation violating or attempting to violate these Building and Use Restrictions, or any portion thereof, either to recover damages

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or to restrain violation or to enjoin the use of a structure or structures, or to require performance of any act or removal of a structure or structures, in such form and under such penalties as judgment, order or decree of a court shall provide. In any litigation to enforce these Restrictive Covenants, the prevailing party shall be entitled to recover from the losing party reasonable attorney’s fees and court costs as determined by the court to be just, fair and proper.

24. The invalidation of any portion of the Building and Use Restrictions by judgment, decree or order of a court having jurisdiction, shall in no wise affect any of the other provisions, which shall remain in full force and effect.

Now, therefore, the undersigned parties, being the majority of the owners of the building site having a completed dwelling upon the premises, adopt these Amended Building and Use Restrictions. At the time of the execution of this document, in Division #2, there were _________ completed buildings, and _________ of the owners of lots having completed dwellings have signed this Amended Building and Use Restriction.