'\ I FOR DECLARATION OF PROTECTIVE COVENANTS, CONDITIONS, RESTRICTIONS AND EASFMENTS

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1 AF'ER RECORDNG, RETURN TO: Howard M. Feuersten, Bsq. Stoel Rves 900 SW Ffth, Sute 2300 Portland, OR DECLARATON OF PROTECTVE COVENANTS, CONDTONS, RESTRCTONS AND EASFMENTS FOR CHELAN AT CASCADE SUMMT Declarant: Koss-Brod-Goodrch & Assocates, nc., an Oregon corporaton PDXM3640U -~ '\

2 - ~--- l j {.;j., l.'. ~- /. TABLE OF CONTENTS ARTCLE 1. DEFNTONS Assocaton" "Declarant" "Lot" ,., "Master Assocaton" "Master Declaraton "Mortgage" "Owner" ,..,,...., ,., "The Property" "Sold" "Ths Declaraton", "Unt''...,....,......,... 2 ARTCLB2. PROPERTY SUBJECT TO 'l'hmb COVENANTS., ,1 The Property...,..,......,,.,...., mprovements , ,... 3 ARTCLB3. PROPBRTYRGHTSNLOTS......,.,....., 3,.,. 3.1 Use and Occupancy Basements Reserved..., ,.,....,, 3 (a) Rght of Entry, , (b) Bncroachments, ,.,..,., (".') l_t@tl':"' Party Walls,...,......,....,..,.., 4 (a) General Rules of Law to Apply ,.,...,.. 4 (b) Sharng of Repar and Mantenance ,,... 4 (c) Destructon by Fre or Other Cuualty , 4 (d) Weatherproofmg,..,, (e) Arbtraton , ,..,.., 4 ARTCLB 4. RBSrRCTONS ON USB..,......,, Resdental Use....., ,,....,., Offen.1ve or Unlawful Actvtes......,.,...,.,..., PDXA ,1 20CB7-Clll2... ' ) \ '-... '

3 ~ Tralers, Campers, Boats, Etc Vehcles n Dsrepar Sgns Anmals Appearance Antennas and Servce Facltes Bxteror Lghtng or Nosemakng Devces Wndows, Decks, Porches and Outsde Walls Alteratons nsurance Leasng and Rental of Unts Garages Landscape Master Declaraton Assocaton Rules and Regulatons ARTCLE 5. ASSOCATON Organzaton Membershp Votng Rghts Powers and Oblgatons S Specfc Powers and Dutes (a) Mantenance and Servces _ (b) nsurance (C) Rulemakng..., ,...,,..,....., 9 (d) Assessments (e) Bnforcement tt) Employment of Agents, Advsers and Contractors (g) Borrow Money, Hold Ttle and Make Conveyances (h) Master Assocaton Assesaments (} Create Classes of Servce and Make Approprate Charges (j} mpled Rghts and Oblgatons Lablty nterm Board; Turnover Meetng Management Agreements and Servce Contract'.s Contracts Entered nto by Declarant or Pror to Turnover Meetng l'xa l3610'-1 :CXll'l.0012

4 ~ l 1 ~,,... ARTCLE ARTCLB MANTENANCE, SERVCES, CONDEMNATON, DAMAGB 11 Exteror Mantenance Mantenance of Utltes Utltes and Servces Damage or Destructon by Casualty ASSESSMBNTS Purpose of Assessments Types of Assessments Apportonment of Assessments Annual Assessments Specal AJSe88mcnts Bmergency Assesaments ndvdual Assessments Operatons Fund Reserve Fund , Creaton of Len and Personal Oblgaton of Assessments ARTCLES ARTCLB BNPQRCE!\{BNT Nonqualfylng mprovements and Volaton of General Protectve Covenants.., Default n Payment of Assessments; Bnforcement of Jen Notfcaton of Frst Mortgagee Subordnaton of Len to Mortgages nterest, Bxpensea and Attorneys' Fees Nonexclusveness and Accumulaton of Remed,-_, l MORTGAGBBS Rembursement of Frst Mortgagees Rght of Frst Mortgagees Relatng to Mantenance FHA/VA Approval ARTCLB 10. MSCBLLANEOUS PROVSONS Amendment and Repeal Regulatory Amendments Duraton PDXA J640'- 2Clll7-0012,. :t

5 - ~--,-...::., l 10.4 Jont Owners Lessees and Other nvtees Enforcement Declarant's Archtectural Revew Constructon; Severablty; Number; Capton (... '1 v '\

6 t -a..~... _, DECLARATON OF PROTECTVE COVENANTS, CONDTONS, RESTRCTONS AND EASEMENTS FOR CHELAN AT CASCADE SUMMT THS DECLARATON s made ths ~ day of Qelbt-f. 19.!:Jj by KOSS.BROD-GOODRCH & ASSOCATES, NC., an Oregon corporaton ("Dedarant"). RECTALS: A. Declarant has recorded the plat of "Cascade Townhomes South" n the plat records of Clackamas County, Oregon. B. Declarant desres to subject Lots through! of such property to the condtons, restrctons and charges set forth heren for the beneft of such property and ts present and subsequent owners, and to establsh 111Ch property as the frst phase of a townhouse project to be known as "Chelan at Cascade Summt. C. Chelan at Cascade Summt has been annexed to Cascade Summt and the Declaraton of Protectve Covenants, Condtons, Restrctons and Basement& Affectng Cascade Summt ("Master Declaraton") by a Declaraton of Annexaton to Cascade Summt (Cucade Townhomes South Cbelan at Cascade Summt) dated July 20, 1998 and n:corded July 22, 1998 n the Records of Clackamas County, Oregon, as Recorder's Fee No Chelan at Cascade Summt has been desgnated as a Project wthn Caacade Summt and ths Declaraton shall be a Project Declaraton for purposes of the Master Declaraton. NOW, THEREFORE, Declarant hereby declares that Lota 1 through 8 of the plat of cascade Townhomes South shall be held, sold and conveyed subject to the followng easements, covenants, rcmctona and charges, whch sball run wth such property and shall be bndng upon all partes havng or acqurng any rght, ttle or nterest n such property or any part thenlof and shall nure to the beneft of each owner thereof. ARTCLE 1. DEFNTONS meanngs: AB uaed n ths Declaraton, the tenns set forth below shall have the followng 1.1 -Apncl,ttgn" means the nonproft corporaton to be funned to serve as an owners' assocaton as provded n Artcle 5 of ths Declaraton, and ts successors and assgns. PDXA-13MOU 20Ql7-GCll2 \ t \ 1

7 ~ "Declanmt" means Koss-Brod-Goodrch & Assocates, nc,, an Oregon cotp0raton, and ts successors and assgns. 1.3 "Ult" means a numercally desgnated and platted lot wthn the Property (ncludng the Unt located on such Lot).,, j. J,. J 1.4 "Master Apoclatlon means the Cascade Summt Homeowners Assocaton establshed under the Master Declaraton. 1.5 "Mastec Dec!enrtJnn" means the Declaraton of Protectve Covenants, Condtons, Restrctons and Basements Affectng Cascade Summt executed March 4, 1993, recorded March 4, 1993 n the Records of Clackamas County, Oregon, as Recorder's No , as the same may be amended or supplemented. 1.6 "Moft&Bp" means a mortgage or a deed of trust; mortgagee" means a mortgagee or a benefcary of a deed of trust; "mortpaor" means a mortgagor or a granter of a deed of trust.. 7 "Omler" means the person or persons, ncludng Declarant, ownng any Lot n the Property, but does not nclude a tenant or holder of a leasehold nterest or a person holdng only a securty nterest n a Lot. The rghts, oblgatons and other status of beng an Owner commence upon acquston of the ownershp of a Lot and termnate upon dsposton of such ownerahp, but termnaton of ownershp shall not dscharge an Owner from oblgatons ncurred pror to termnaton "The Property" means the property descrbed n Artcle 2 below "Sold" means that legal ttle has been conveyed or that a contract of sale has been executed under whch the purchaser has obtaned the rght to possesson "Ths Declpratlnn means all of the easements, covenants, restrctons and charges set forth heren, together wth any rules or regulatons promulgated hereunder, as the same may be ~~ -:>"!!!~l:'!m':'.nt,.,, tmm tlmf' tn tme n 11crord11nce wth the provsons hereof "11Dlt" means a buldng or a porton of a buldng located upon a Lot wthn the Property and desgnated for separate occupancy as a dwellng; together wth any attached deck. PDX A '\., ~} l

8 - ~ ' - ARTCLE 2. PROPERTY SUBJECT TO TJESE COVENANTS 2.1 The Property. Declarant hereby declares that all the real property descrbed below s owned and shall be owned, conveyed, hypothecated, encumbered, used, occuped and mproved subject to ths Declaraton: That certan real property located n the Cty of West Lnn, Clackamas County, Oregon, desgnated as Lots 1 through 8 n that certan plat enttled "CASCADE TOWNHOMES SOUTH" fled n the Plat Records of Clackamas County, Oregon, on the 22nd day of July n Book 112 of Plats at Page 7. The Property contans eght Lots and wll contan not more than eght Unts. 2.2 mprovements. Declarant does not agree to buld any mprovementa on the Property other than aa requred by the Cty of West Lnn, but may elect, at Declarant's opton, to buld addtonal mprovements. ARTCLE 3. PROPERTY RGHTS N LOTS 3.1 Use and Oq;upgncy. The Owner of a Lot n the Property shall be enttled to the exclusve use and beneft of such Lot, except as otherwse expressly provded n ths Declaraton, but the Lot shall be bound by and the Owner shall comply wth the restrctons contaned n Artcle S below and all other provsons of ths Declaraton for the mutual beneft of all Owners. 3.2 EBffflJeota Bmenrecl. n addton to any utlty and dranage easements shown on the reconeu plll., :L1tX;lnu1. ~w, 1~1-v ~ Uu,;, fvllvw5 ~wcut'.. fc: the her.ef:t of Dec~~t and the Assocaton: (a) Blpt of Ent:y. The Assocaton and any person authomed by the Assocaton may at any reuonable tme, and from tme to tme at reasonable ntervals, enter upon any Lot for the purpose of performng the mantenance referred to n Secton 6.1 below and detennnng whether or not the Lot s then n complance wth ths Declaraton. No such entry shall be deemed to consttute a trespass or otherwse create any rght of acton n the Owner of such Lot. (b) EmmadJromrta- Bach Lot have an easement over all adjonng Lota for the purpose of accommodatng any present or future encroachment as a reault of engneerng errors, constructon, reconstructon, repars, settlement, shftng or movement of any porton of PDXA JMO!l.l 200J7-<1012 3

9 --~ :j the Property, or any other smlar cause, and any encroachment due to buldng overhang or projecton. 11tere shall be vald easements for the mantenance of the encroachng Unts so long as the encroachments shall exst, and the rghts and oblgatons of Owners shall not be altered n any way by the encroachment. The encroachments descrbed n ths paragraph shall not be construed to be encumbrances affectng the marketablty of ttle to any Lot. Nothng n ths secton shall releve an Owner of lablty n the case of the Owner's wllful msconduct. (c) llwlllm. Each Lot shall be subject to an f.'&enlent under and across that porton of the Lot not occuped by the Unt for nstallaton, mantenance and use of power, gas, electrc, water and other utlty and communcaton lnes and servces and for meters measurng such servces. 3.3 Party Walls. P.ach wall whch s bult as a pan of the orgnal constructon of the dwellngs wthn the Property and placed upon the dvdng lne between Lots shall conmtute a "party wall, and the followng provsons shall apply: (a) C'rlJU!l'A Kules of Law to Apply. The general rules of law of the State of Oregon regardng party walls and of lablty for property damage due to neglgence or wllful acts or omssons shall apply to all such party walls, to the extent such rules are not nconsstent wth the provsons of ths secton. Sbvlna of Betfr and Malotwance. Reasonable repars and mantenance (b) of a party wall shall be performed by the Assocaton. DestrudJmJ by Ere or Other Ca uajt)'. f the party wall s destroyed or (c) damaged, then the Assocaton shall restore t to ts former condton. (d) Wepthennoftna. Notwthstandng any other provaon of ths Sf.Cton 3. 3, an Owner who by hs neglgent or wllful act causes the party wall to be exposed to the elements shall bear the cost of furnshng the neceswy protecton aganst such elements to the extent such cost s not covered by the Assocaton's nsurance polcy. (e) ArhJtnltlon. n the event of any dsputes arsng concernng a party wall, or under the provsons of ths Secton 3.3, the Board of Drectors of the Assocaton &ball act as arbtrators and ther decson shall be fnal. ARTCLE4. BES'.fBTCTONS ON USE 4.1 B@ddeotlal Use. Not more than one Unt may be located on any Lot. Bxcept wth the consent of the Assocaton, no trade, craft; busnes.,, professon, commercal or smlar actvty of any knd shall be conducted on any Lot, nor shall any goods, equpment, vehcles, materals PDXA S Cll

10 -~~ ! or supples used n connecton wth any trade, servce or busness be kept or stored on any Lot. Nothng n ths paragraph shall be deemed to prohbt (a) actvtes relatng to the rental or sale of Lots, (b) the rght of Declarant to use any Unt as a sales or rental offce or model home or apartment for purposes of sales or rental n Chelan at Cascade Summt, and (c) the rght of the Owner of a Lot to mantan hs professonal personal lbrary, keep hs personal busness or professonal records or accounts, handle hs personal busness or professonal telephone calls or confer wth busness or professonal assocates, clents or customers, n hs Unt. The Assocaton shall not approve commercal actvtes otherwse prohbted by ths paragraph unless the Assocaton detennnes that only normal resdental actvtes would be observable outsde of the Unt and that the actvtes would not be n volaton of applcable Cty of West Lnn ordnances. 4.2 Offensve or Unhlwful ActMtles. No noxous or offensve actvtes shall be carred on n any Unt or Lot nor shall anythng be done or placed upon any Unt or Lot whch nterferes wth or jeopardzes the enjoyment of other Unts, or whch s a source of annoyance to resdents. Unt occupants shall exercse extreme care not to make noses whch may dsturb other Unt occupants. No unlawful use shall be made of the Lot nor any part thereof, and all vald laws, :ronng ordnances and regulatons of all governmental bodes havng jursdcton thereof shall be observed. 4.3 Trallen, Carol>ffl'8, Boats, Etc, Except wth the consent of the Assocaton, no traler, truck camper, boat or boat traler, or other recreatonal vehcles or motorcycles, vehcles n excess oftbree-quaner (3/4) ton n weght or motor vehcles not operated n daly famly use shall be parlred n drveways or on any other porton of the Property, except n a garage or for the purpose of temporary loadng or unloadng. No such traller or truck camper shall be uaed as a resdence temporarly or permanently on any porton of the Property. 4.4 Yebldff fn Jllsrtlller No Owner sllall permt any vehcle whch s n an extreme state of dsrepar to be abandoned or to reman parked upon any Lot or on the Common Area for a perod n excess of forty-eght (48) hours, unless kept wthn a garage. A vehcle shall be deemed to be n an "extreme state of dsrepar" when n the opnon of the Assocaton, ts presence offends the occupants of the ne~hborhoorl. Shnnltl!!!'!!' ~ne!' fal~ ~-e-.':: ::::::h vehcle wthn fve (5) days followng the date on whch notce s maled to hm by the Assocaton, the Aasoclaton may have the vehcle removed from the Property and charge the expense of such removal to the Owner n addton to the assessments made upon hm n accordance wth ths Declaraton. 4.5 SJ&na. No sgns shall be placed or kept on any Lot, except that n the event an Owner wshes to adver1se hs or her Lot for sale or lease the Owner may do so, provded that the Owner shall use for that purpose a sngle sgn not more than 24 nches hgh and 36 nches long placed n front of the Unt. The restrctons n ths paragraph shall not prohbt the temporary placement of "poltcal" sgns on any Lot by the Owner. POXA CXl

11 ~~.,... _! ADmala. No anmals or fowls shall be rased, kept or penntted wthn the Property or any part thereof, except domestc dogs, cats or other how1chold pets kept wthn a Unt. No such dogs, cats or pets shall be penntted to run at large nor shall be kept, bred or rased for commercal purposes or n unreasonable numbers. Any nconvemence, damage or unpleasantness caused by such pets shall be the responsojty of the respectve Owners thereof. All dogs shall be kept on a leash whle outsde a Unt. An Owner may be requred to remove a pet upon the thrd volaton of any rule, regulaton or restrcton governng pets wthn the Property. 4. No part of any Lot shall be used or mantaned as a dumpng ground for rubbsh, trash, garbage or other waste. Trash, garbage or other wastes shall be kept only n santary contaners n the garages, except when outsde awatng pckup. 4.R AnfMMumt:l Servce FaclHtles. Exteror antennas and satellte dshes shall not be permtted to be placed upon the exteror of any structure, except as permtted by the Assocaton. Clotheslnes and other servce facltes shall be screened from vew from outsde of the Lot. 4.9 Exteror LJabtlo: or Noweo:,akloa Deylc;es. Except wth the consent of the Assocaton and the Archtectural Revew Commttee under the Master Declaraton, and except for exteror lghtng orgnally nstalled by the Declarant, no exteror lghtng or nosemakng devces shall be nstalled or mantaned on any Lot. Owners shall not tamper wth exteror lghtng nstalled by Declarant except to replace expended bulbs wth smlar new bulbs. 4. O WJndows. Decks, Pm:d:les 1md Outsde WaUs. n order to preserve the attnctve appearance of the Property, the Assocaton may regulate the nature of tems whch may be placed n or on wndows, decla, entry porches, and the outsde walls so as to be vsble from outsde of the Lot. Gannents, rugs, laundry and other smlar tems may not be hung from wndows, facades, porches, or decks AJtemtlons- Exteror pantng, mantenance and roof repar or replacement wll be pertonnec by the Assocaton w Un, w...~u~ ~1uv ~ ll ~vu 5.1 =m~.,. ~-'!!e!"!!..~ expressly prohbted from pantng or changng the exteror of a buldng or other structure wthout the wrtten permsson of the Assocaton and the Archtectural Revew Commttee under the Master Declaraton. No structure or fence may be nstalled outsde of Unts except structures nstalled by Declarant or nstalled by an Owner Yfth wrtten approval of Declarant, the Assocaton and the Archtectural Revew t::ommttee under the Master Declaraton. No fences shall be permtted on Lots S through XD81U'3JH"e. Nothng shall be done or kept n any Lot whch wll ncrease the cost of nsu111dcc on the Unts. No Owner shall pennt anythng to be done or kept n hs, Unt whch wll result n cancellaton of nsurance on any Lot. POXA l !.1! ' ~--

12 - -=-- - q j j, 4.13 mnr and Reolll of Unts. No Owner may lease or rent hs Unt for a perod of less than thrty (30) days. All Jc.ases or rentals shall be by wrtten lease agreement, whch shall provde that the tenns of the lease shall be subject n all respects to the provsons of ths Declaraton and the Artcles of ncorporaton and Bylaws of the Assocaton, and that any falure by the lessee or tenant to comply wth the terms of such documents shall be a default under the lease. f the Board of Drectors fnds that a lessee or tenant has volated any provson of such documents or the rules and regulatons, the Board may requre the Owner to termnate such lease or rental agreement. Other than the foregong, there s no restrcton on the rght of any Owner to lease or rent hs Unt Garaam. All garage doors shall reman closed except to permt entrance and ext therefrom. No garage shall at any tme be used as a resdence ether temporarly or pennanently Jandqpe. All exteror landacape natalla1on and mantenance wll be perfonned by the Assocaton, except that wth the permsson of the Assocaton an Owner may natall and mantan addtonal landscape or flowers n the yard area mmedately n front of such Owner's Unt and the area around the rear deck or pato Mutv Declaraton, n addton, each Owner and Lot shall be subject to the restrctons contaned n the Master Declaraton and n the rules and regulatons adopted under the Master Declaraton Assoclatlon Rules and ReaµJatlom. n addton, the Assocaton from tme to tme may adopt, modfy or revoke such rules and regulatons governng the conduct of persons and the operaton and use of the Lota and Unts as t may deem necessary or approprate n order to assure the peaceful and orderly use and enjoyment of the Property. A copy of the rules and regulatons, upon adopton, and a copy of ea.ch amendment, modfcaton or rev~on thereof, shall be delvered by the Assocaton Board of Drectors promptly to each Owner and shall be bndng upon all Owners and occupants of all Lota from the date of delvery. The method of adopton of such rules shall be as provded n the Bylaws of the Assocaton. ARTCLES. ASSOCATON Declarant shall organ7.e an assocaton of all of the Owners wthn the Property. Such Assocaton, ts au<:eessors and aasgns, shall be organl7.ed under the name "Chelan at cascade Summt Owners Assocaton or such smlar name as Declarant shall desgnate, and shall have such property, powers and oblgatons as are set forth n ths Declaraton for the beneft of the Property and all Owners of property located theren. 5.1 O1:1anlzaton. Declarant shall, before the frst Lot s conveyed to an Owner, organ1.e the Assocaton as a nonproft corporaton under the general nonproft corporaton laws PDXA-S640t, 2CCll7-00l2 7 '\

13 ~-- 1 1!.. '.. -! ; of the State of Oregon. The Artcles of ncorporaton of the Assocaton shall provde for ts perpetual exstence, but n the event the Assocaton s at any thne dssolved, whether nadvertently or delberately, t shall automatcally be succeeded by an unncorporated assocaton of the same name. n that event, the um of the Assocaton shall be dedcated to a publc body, or all of the property, powers and oblgatons of the ncorporated assocaton exstng thereupon shall automatcally vest n a successor unncorporated nonproft assocaton. Such vestng shall thereafter be confrmed and evdenced by approprate conveyances and assgnments by the ncorporated Assocaton. To the greatest extent possble, any successor unncorporated assocaton shall be governed by the Artcles of ncorporaton and Bylaws of the Assocaton as f they had been made to consttute the governng documents of the unncorporated a1aocaton. S.2 Memoorshlp. Bvery Owner of one or more Lots wthn the ~rty shall, mmedately upon creaton of the Assocaton and thereafter durng the entre perod of such Owner's ownershp of one or more.ots wthn the Property, be a member of the Assocaton. Such membershp shall commence, exst and contnue sbnply by vrtue of such ownershp, shall ell.pre automatcally upon tennnaton of such owneshp, and need not be confnned or evdenced by any certfcate or acceptance of membershp Yotln& Bl&)Jta. The Assocaton shall have two classes of votng memberabp:.claala. Class A members shall be all Owners wth the excepton of the Class B member and shall be enttled to one vote for each Lot owned. When more than one person holds an nterest n any Lot, all such persons shall be members. The vote for such Lot shall be exercsed as they among themselves determne, but n no event shall more than one vote be cast wth respect to any Lot..c:Jua.B. The Class B member shall be the Declarant and shall be enttled to three (3) votes for each Lot owned. The Class B membershp shall cease and be converted to Class A membershp on.the happenng of ether of the followng events, whchever occurs earler: (a) When seventy-fve percent (75 %) of the Lots have been sold and conveyed to Owners other than Declarant; or (b) The expraton of fve (5) years after the closng of the sale of the frst Lot to an Owner other than a successor Declarant. 5.4 Powers and Oh)lptton.,. The Assocaton shall have, exercse and perform all of the followng powers, dutes and oblgatons: (a) Declaraton. The powers, dutes and oblgatons granted to the Assocaton by ths PDXA,1] COl'l l 1.\. \ l...

14 (b) 1be powers and oblgatons of a nonproft corporaton pursuant to the general nonproft corporaton laws of the State of Oregon. (c) The powers, dutes and oblgaton of a homeowners assocaton pursuant to the Oregon Planned Communty Act. (d) Any addtonal or dfferent powers, dutes and oblgatons necessary or desrable for the purpose of carryng out the functons of the Assocaton pursuant to ths Declaraton or otherwse promotng the general beneft of the Owners wthn the Property. The powers and oblgatons of the Assocaton may from tme to tme be amended, repealed, enlarged or restrcted by changes n ths Declaraton made n accordance wth the provsons heren, accompaned by changes n the Artcles of ncorporaton or Bylaws of tbe Assocaton made n accordance wth such nstruments and wth the nonproft corporaton laws of the State of Oregon. ;_.,. 5.5 Sgeclttc Powers and Dutes. The powen and dutes of the Assocaton shall nclude, wthout lmtaton, the followng: (a} Mmgtenam;e and Sernces. The Aasoclaton shall provde mantenance and servces for the Property as provded n Artcle 6 and other provsons of ths Declaraton. nsurance. The Assocaton shall obtan and mantan n force polces of (b) nsurance as provded n ths Declaraton or the Bylaws of the Assocaton. (c) Ruleme,kln1. The Assocaton shall make, establah, promulgate, amend and repeal Rules and Regulatons as provded n Secton 4.17 of ths Declaraton. (d) A meng. The Assocaton shall adopt budgets and mpose and collect assesaments as provded n Artcle 8 of ths Declaraton. (P.) V.nfnrN1mon... The.A..::ccu.t!vn :;hall p(,'fv, ou~u nw, whether or not exprc.uly author7.ed by ths Declaraton, as may be reasonably necessary to enforce the provsons of ths Declaraton and the Rules and Regulatons adopted by the Assocaton. Employment of Apnts, Ad'flaer& e,nd cmrtnctm,. The Assocaton, (t) through ts Board of Drectors, may employ the servces of any person or COpOraton aa manager, hre employees to manage, conduct and perfonn the busness, oblgatons and dutes of the Assocaton, employ professonal counsel and obtan advce from such persona or fll'd& or corporatons such as, but not lmted to, landscape archtects, recreatonal experts, archtects, planners, lawyers and accountants, and contract for or otherwse provde for alt servces necessary or convenent for the management, mantenance and operaton of the Property. PDXA l: C0:17-00l1 9!.1

15 l -=-- -.j (g) Borrow Money, Hold Ttle and Make Conyeyances. The Assocaton may borrow and repay moneys for the purpose of perfonnng ts dutes and responsbltes under ths Declaraton. The Assocaton may acqure, hold ttle to and convey, wth or wthout consderaton, real and personal property and nterests theren, and shall accept any real or personal property, leasehold or other property nterests wthn the Property conveyed to the Assocaton by Dcclarant. (h) Master As.,oclat!op Asmwments. The Assocaton may collect from the Owners assessments owng under the Master Declaraton for forwardng to the Master Assocaton. () Create C!pS'lfl' of Servce end Make Appmprlate CJaJ'lllfl The Assocaton may, n ts sole dscreton, create varous classes of servce and make approprate ndvdual Assessments or charges therefor to the users of such servces wthout be-ng requred to render such servces to those of ts members who do not assent to such charge., and to such other Rules and Regulatons as the Boaro of Drectors deems proper. n addton, the Board of Drectors shall have the rght to dscontnue any servce upon nonpayment or to elmnate such servce for whch there s no demand or adequate funds to mantan the same. (j) mpled Rfabta and Qhllpflnps. The Assocaton may exercse any other rght or prvlege reasonably to be mpled from the exstence of any rght or prvlege expreaaly gven to the Assocaton under ths Declaraton or reasonably necessary to effectuate any such rght or prvlege. 5.6 Llahmty. A member of the Board of Drectors or an offcer of the Assocaton shall not be lable to the Assocaton or any member thereof for any damage, loss or prejudce suffered or clamed on account of any acton or falure to act n the perfonnance of hs or her dutes, except for acts of gross neglgence or ntentonal acts. n the event any member of the Board of Drectors or any offcer of the Assocaton s made a party to any proceedng because the ndvdual s or was a drector or offcer of the Assocaton, the Assocaton shall ndemnfy such ndvdual aganst lablty and expenses ncurred to the maxmum extent penntted by law ntmrn llganl; Turnover Meetn1. Declarant shall have the rght to appont an nterm board of one to three drectors, who shall serve as the Board of Drectors of the Assocaton untl replaced by Declarant or ther successors have been elected by the Owners at the turnover meetng descrbed n ths secton. Declarant shall call a meetng of the Assocaton for the purpose of turnng over admnstratve responsblty for the Property to the Assocaton not later than one hundred twenty (120) days after tennnaton of the Class B membershp as provded n Secton 5.3 above. At the turnover meetng, the nterm drectors shall resgn and ther successors shall be elected by the Owners as provded n the Bylaws of the Assocaton. f the Declamnt fals to call the turnover meetng as requred by ths secton, any Owner or mortgagee of a Lot may call the meetng by gvng notce as provded n the Bylaws. PDXA ,

16 -~ Manalfl))ffl! Aarameots and 8eCYke Contrac;ts. The Assocaton may enter nto a management agreement wth a professonal management fnn ether alone or n a common management arrangement wth other owners or assocatons n the area. Any such management agreement shall be tennnable by the Assocaton for cause upon thrty (30) days' wrtten notce, and the tenn of any such agreement may not exceed one (1) year, renewable by agreement of the partes for successve one (1) year perods. 5.9 Contracts Entered luto by Dtclarant or Pror to Turnover Meettua. Notwthstandng any other provson of ths Declaraton, any leases or contracts (ncludng management contlets, servce contracts and employment contracts) entered nto by the Declarant or the Board of Drectors on behalf of the Assocaton pror to the turnover meetng descrbed n Secton 5. 7 above shall have a tenn of not n exceaa of three (3) years. n addton, any such lease or contract shall provde that t may be termnated wthout ~u~ or penalty by the Assocaton or Board of Drectors upon not less than thrty (30) nor more than nnety (90) days' notce to the other party gven at any tme after the turnover meetng descrbed n Secton 5. 7 above. ARTCLE 6. MANTENANCE, SEBVXCFS, CONDEMNATON, DAMAGE 6.1 Exted9r Maluteuaom. The Assocaton shall provde exteror mantenance upon each Unt as follows: pant, repar, replace and care for roofs, gutter11, downspouts, exteror buldng surfaces, exteror lghts and other exteror mprovements. Such exteror mantenance does not nclude repar or replacement of doors, wndows and other glass surfacca, except to the extent of the proceeds of the Assocaton's nsurance. The Assocaton shall also mantan party walls as provded n Secton 3.3 and the landscapng on that porton of each Lot not occuped by the Unt. The cost of auch mantenance by the Assocaton shall be a common expense pad out of assessments descrbed n Artcle 8. n the event, however, the need for such mantenance or repar s caused by the wllful or neglgent act or omsson of an Owner, hs or her famly, tenants, guests or nvtees, and to the extent such mantenance or repar s not covered by the.a..::;c::l::.t!c~ :; :uowa-w fau-,y, 1w wllj o such mantenanee and repar may, n the dscet.on of the Board of Drectors, be charged to the Owner as an ndvdual Assessment Mantenanc:e of Utllltlm. The Assocaton shall perform or contract to perfonn mantenance of all utltes, such as santary sewer servce lnes, domestc water servce lnes and storm dranage lnes located n the Lots. P.ach Owner shall mantan at such Owner's expense utlty lnes to the extent located wthn the Unt. 6.3 Utnltm and Serylm. The Assocaton shall provde or contract for such utltes and servces as the Board of Drectors may reasonably deem to be of beneft to the Property, ncludng, wthout lmtaton, cable, garbage and trash removal and securty servces. PDXA l CXJ.OOl2 11. ~

17 l. - -~ Acceu at 8ffl80D@hle Hours. For the purpose solely of perl'ormng the mantenance and servces provded for n ths Artcle 6, the Assocaton, through ts duly authorzed agents or employees, shall have the rght, after reasonable notce to the Owner, to enter upon any Lot or exteror of the dwellng thereof at reasonable hours. The Assocaton shall also have a rght of entry for purposes of effectng emergency repars or acton to prevent mmnent damage or njury to other Unts, to other Owners and ther guests and nvtees. n such nstances, the Assocaton shall gve notce by telephone f reasonably possble pror to entry. 6.5 PMmaa or Dr,truqlon by Casualty. n the event of damage or destructon whch affects a materal porton of the Property, tmely wrtten notce shsll be gven to the Owners and ther mortgagees, and the followng provsons shall apply: (a) n the event of damage or destructon by casualty to any Unt, the damage or destructon shall be repared, reconstructed, or rebuh unless, wthn fourteen (14) days of such damage ordeatructon, the Board of Drectors or more than ten percent (1095) of the Owners shall have requeated a specal meetng of the Assocaton. Such specal meetng muat be held wthn thrty (30) days of the date of damage or destructon. At the tme of such meetng, unless all 0wnora, whether n person, by wrtng or by proxy, wth the approval of mortgagee, f and as requred by ths Declaraton, vote not to repar, reconstruct or rebuld the damaged property, the damage or destructon shall be repared, reconstructed or rebult, wth the work commencng as soon as reasonably possble. n the event any porton of the nsurance proceeds pad to the Assocaton are not used to repar, reconstruct or rebuld the damaged or destroyed Unts, the Assocaton shall dstrbute the proceeds attrbutable to Unts to the Owners and mortgagee& thereof, as ther nterests may appear. f the nsurance proceeds are not suffcent to pay the entre cost, the Board of Drectors, f necessary, may assess the Owner of each Unt such addtonal amounts as requred to pay the cost of restoraton. (b) f, due to act or neglect of an Owner or a member of hs or her famly or hs or her household pet or of a guest or other unauthorzed occupant or vstor of such Owner, damage shall be caused or malntenance, repars or replacements shall be requred whch would otherwse be a common expense, then such Owner shall pay for such damage and such ""!?.!n!~'!~, ~wa: c:- rep!:cc.:aeut; a:; way ~ ~ -,ww Uy.1" UKUClllt.on, co the extent not covered by the Assocaton's nsurance, as an ndvdual As.,essment. ARTCLE 7. ASSRSSMENTS 7.1 Pucpose cf A n;ata. The A.aessments leved by the Assocaton shall be used exclusvely to promote the recreaton, health, safety, and welfare of the Owners and occupants of Chelan at Cascade Summt and for the mprovement, operaton and mantenance areas to be mantaned by the Assocaton. PDXA C '\

18 -~, Types of Assessments. The Assocaton may levy Annual Assessments, Specal Assessments, Emergency Assessments and ndvdual Assessments, aj as more pancularly descrbed below. ; _ 7.3 Apportonment cf A DlllPlB- Lots owned by Declarant shall not be subject to Assessments untl such tme as the Unt located on the Lot s occuped for resdental use, subject to accrual of reserves as descn"bed n Secton 7.9 below. All other Lots shall pay an equal pro rata share of the Annual Assessments, Specal Assessments and Emergency Assessments commencng upon the date such Lots are made subject to ths Declaraton. 7.4 Annual A nllqta. The Board of Drectors of the Assocaton shall from tme to tme and at least annually prepare an operatng budget for the Assocaton, takng nto account the current costs of mantenance and servces and future needs of the Assocaton, any prevous overaasessment and any common profts of the Assocaton. The budget shall provde for such reserve or contngency funds aa the Board deems necessary or as may be requred by law, but not less than the reserves requred by Secton 7.9 below. Annual Assessments for such operatng expenses and reserves (" Annual Assessments ) shall then be apportoned among the Lots as provded n Secton 7.3 above. The method of adopton of the budget and the manner of bllng and collecton of Auessments shall be as provded n the Bylaws. l ' 7.S 6l>e JM Assessrnm- n addton to the Annual Assessment authorzed above, the Board of Drectors may levy durng any fscal year a Specal Assessment ("Speclal Assessment"), applcable to that year only, for the purpose of deferrng all or any part of the cost of any constructon or reconstructon, unexpected repar, or acquston or replacement of a descrbed captal mprovement, or for any other one-tme expendture not to be pald for out of Annual Assessments. Specal Assessments whch n the aggregate n any fuca1 year exceed an amount equal to ffteen percent of the budgeted gross expenses of the Assocaton for the fscal year may be leved only f approved by a majorty of the votng rghts votng on such matter, together wth the wrtten consent of the Class B member, f any. Specal Assessments shall be apportoned as provded n Secton 7.3 above and may be payable n lump sum or n nstallments, wth or wthout nterest or dscount, as determned by the Board of Drectors. 7.6 Emerpncy Assessments. f the Annual Assessments leved at any tme are, or wll become, nadequate to meet all expenses ncurred under ths Declaraton for any reason, ncludng nonpayment of any Owner's Assessments on a current bass, the Board of Drectors of the Assocaton shall mmedately detennne the approxmate amount of such nadequacy and ssue a supplemental budget, noted as to the reason therefor, and levy an Emergency Aasessment for the amount requred to meet all such expenses on a current bass ("Emergency Assessment"). Any Emergency Assessment whch n the aggregate n any fscal year would exceed an amount equal to fve pen:ent of the budgeted gross expenses of the Assocaton for the fscal year may be leved only f approved by not less than a majorty of the votng rghts votng on such matter, together wth the wrtten consent of the Class B member, f any. Emergency Assessments shall PDXA l :n4>12 13

19 be apportoned as set forth n Secton 7.3 above and payable as detennned by the Board of Drectors lndyldua! 4 nrrts. Any common expense or any part of a common expense benefttng fewer than all of the Lots may be assessed exclusvely aganst the Lots bencftted ("ndvdual Assessment"). ndvdual Assessments nclude, wthout lmtaton, charges for servces provded under Secton 5.5(). ndvdual Assessments shall also nclude default assessment& leved aganst any Lot to remburse the Assocaton for coats ncurred n brngng such Lot or ts Owner nto complance wth the provsons of ths Declaraton or the Rules and Regulatons of the Assocaton and for fnes or other charges mposed pursuant to ths Declaraton for volaton thereof. Unless otherwse provded by the Board of Drectors, ndvdual Assessments shall be due 30 days after the Board of Drectors has gven wrtten notce thereof to the Owners subject to the ndvdual Assessments. 7.8 Operaton., Fund. The Assocaton shall keep all funds receved by t as Assessments, other than reserves de3crbed n Secton 7. 9, separate and apart from ta other funds, n an account to be known as the "Operatom Fund. The Assocaton shall use such fund exclusvely for the pupo.,e of promotng the recreaton, health, safety and welfare of the resdents wthn the Property and n partcular for tbe mprovement and mantenance of propertes, sejvces and facltes devoted to ths puq,ose and related to the use and enjoyment of the Lots stuated upon the Property, ncludng but not lmted to: (a) descrbed n Artcle 6. Payment of the cost of mantenance, utltes and servces as Assocaton. (b) Payment of the cost of nsurance as descrbed n the Bylaws of the (c) Payment oftbe cost of water servce, sewer servce and garl>age and trash dsposal whch are commonly blled. (cl) Payment of the cost of other servces whch the Assocaton deems to be of general beneft to the Owners, ncludng but not lmted to accountng, legal and secretaral servces Besenre Fund. The Declarant shall establsh a reserve fund for replacement of tholle tems to be mantaned by the Assocaton all or a part of whch wll nonnally requre replacement n more than three (3) and less than thrty (30) years ("Reserve Fund"). Such Reserve Fund shall be funded by Aslessments aganat the ndvdual Lots as8cllled for mantenance of the tems for whch the Reseve Fund s beng establshed. The Assessments under ths secton begn accrung aganst each Lot from the date the frst Lot n the Property s conveyed. The Declamnt may defer payment of the accrued Assessments for a Lot untl the Lot s conveyed. The amount assessed shall take nto account the estmated remanng lfe of the tems for whch the PDXA l Qlll 14 l

20 ~ '"- -.. J.: J reserve s created and the current replacement cost of such tems. The Reseve Fund shall be establshed n the name of the Assocaton and shall be adjusted at regular ntervals to recogn7.e changes n current replacement costs over tme. The Reserve Fund shall be used only for replacement of common property as detennned by the Board of Drectors and shall be kept separate from the Operatons Fund. After the turnover meetng descrbed n Secton 5.7, however, the Board of Drectors may bo1tow funds from the Reserve Fund to meet hgh seasonal demands on the regular operatng funds or to meet other temporary expenses whch wll later be pad from Annual Assessments, Specal Assessments, or Emergency Assessments. Nothng n ths secton shall prohbt prudent nvestment of the reserve account. Followng the second year after the turnover meetng, future Assessments for the Reaerve Fund may be reduced, elmnated or decreased by an affnnatve vote of not less than seventy-fve percent (75 % ) of the votng power of the Assocaton. Assessments pad nto the Reserve Fund are the property of the Assocaton and are not refundable to sellers or Owners of Lots. Sellers of the Lots, however, may treat ther outstandng share of the Reserve Fund as a separate tem n any sales agreement Creaton of den and PersooaJ OhHr,atJon of Asswmmrts- Declarant, for each Lot owned by t wthn the Property, does hereby covenant, and each Owner of any Lot by acceptance of a conveyance thereof, whether or not so exprossed n any such conveyance, sball be deemed to covenant to pay to the Assocaton all asse.wnents or other chargea as may be fxed, establshed and collected from tme to tme n the manner provded n ths Declaraton or the Assocaton Bylaws. Such assessments and charges, together wth any nterest, expenses or attorneys' fees mposed pursuant to Secton 8.5, shall be a charge on the land and shall be a contnung len upon the Lot aganst whch each such assessment or charge s made. Such assessments, charges and other costs shall also be the penonal oblgaton of the person who was the Owner of such Lot at the thne when the assessment or charge fell due. Such lens and personal oblgatons shall be enforced n the manner set forth n Artcle 9 below. ARTCLES. ~-! Nnnm,ollfvlno Tmnmv..m~nh: and Vlnlatlnn nf f'..mlll'lll Prntect!ye Covenants. n the event any Owner constructs or permts to be constructed on hs Lot or Unt an mprovement contrary to the provsons of ths Declaraton, or causes or pennts any mprovement;- actvty, condton or nusance contrary to the provsons of ths Declaraton to reman uncorrected or unabated on hs Lot or Unt, then the A8socaton actng through ts Board of Drectors shall notfy the Owner n wrtng of any such apecfc volatons of ths Declaraton and shall requre the owner to remedy or abate the same n order to brng hs Lot and Unt, the mprovements thereon and hs use thereof, nto conformance wth ths Declaraton. f the Owner la unable, unwllng or refuses to comply wth the Assocaton's specfc drectves for remedy or abatement, or the Owner and the Assocaton cannot agree to a mutually acceptable soluton wthn the framework and ntent of ths Declaraton, after notce and opportunty to be heard and wthn sxty (60) days PDXA t:! ()Qll 15., '

21 ~..._.. of wrtten notce to the Owner, then the Assocaton actng through ts Board of Drectors shall have the rght to do any or all of the followng: J l : f (a) mpo3e reasonable fnes aganst such Owner n the manner and! amount the Board deems approprate n relaton to the volaton, (b) Enter the offendng Lot and remove the cause of such volaton, or alter, repar or change the tem whch s n volaton of ths Declaraton n such a manner as to make t ' confonn thereto, n whch case the Assocaton may assess such Owner for the entre cost of the work done, whch amount shall be payable to the Operatons Fund, provded that no tems of constructon shall be altered or demolshed n the absence of judcal proceedngs or (c) Brng sut or acton aganst the Owner on behalf of the Assocaton and other Owners to enforce ths Declaraton. 8.2 Default n Payment of NffllSDlMW Enfomment of Leu. f an assessment or other charge leved under ths Declaraton s not pad wthn thrty (30) days of ts due date, such assessment or charge shall become delnquent and shall bear nterest from the due date at the rate set forth below. n such event the Assocaton may exercse any or all of the followng remedes: (a) The Assocaton shall have a len agan8t each ldt for any a&llel8mcnt leved aganst the Lot and any fnes or other charges mposed under ths Declaraton or the Bylaws aganst the Owner of the Lot from the date on whch the assessment, fne or charge s duo. The provsons regardng the attachment, notce, recordaton and duraton of lens establshed on real property under ORS to , as the same may be amended, shall apply to the Assocaton's len. The len shall be foreclosed n accordance wth the provsons regardng the foreclosure of lens under ORS Chapter 88. The Assocaton, through ts duly authorud agents, may bd on the Lot at such foreclosure sale, and may acqure and hold, lease, mortgage and convey the Lot. (b) The Assocaton may brng an acton to recover a money judgment for unpad assessments, fnes and charges under ths Declaraton wthout foreclosng or wavng the en descrbed n paragraph ~b) 1100ve. Recovery on any such acton, however, slal openue to satsfy the len, or the porton thereof, for whch recovery s made. equty. (c) The Assocaton shall have any other remedy avalable to t by law or n 8.3 Ngtlfr,atlop of Fat Mortppe. The Board of Drectors shall notfy any frst mortgagee of any ndvdual Lot of any default n performance of ths Declaraton by the Lot Owner whch s not cured wthn sxty (60) days. PDXA-1'6t :J'l ! ' l

22 - 8.4 Suhordlnatlon of Uen to Mart.caps. The len of the assessments or charges provded for n ths Declaraton shall be subordnate to the len of any mortgage or deed of trust on such Lot whch was made n good fath and for value and whch was recorded pror to the recordalon of the notce of len. Sale or transfer of any Lot shall not affect the assessment len, but the sale or transfer of any Lot whch s subject to any mortgage or deed of trust pursuant to a decree of foreclosure thereunder or any deed or proceedng, deed or assgnment n leu of foreclosure shall extngush any len of an assessment notce of whch was recorded after the recordng of the mortgage or trust deed. Such sale or transfer, however, shall not release the Lot from lablty for any assessments or charges thereafter becomng due or from the len of such assessments or charges. 8.S nterest, Expewg and Attm:n~ Fees. Any amount not pad to the Assocaton when due n accortlance wth ths Declaraton shall bear nterest from the due date untl pad at a rate three (3) percentage ponts per annum above the prevalng Portland, Oregon prme rate at the tme, or such other rate as may be establshed by the Board of Drectors, but not to exceed the lawful rate of nterest under the laws of the State of Oregon. A late charge may be charged for each delnquent assemnent n an amount e.stablshed from tme to tme by resoluton of the Board of Drectors of the Assocaton not to exceed thrty percent (301) of such aasenment. n the event the Assocaton shall fle a notce of len, the len amount &hall also nclude the recordng fees assocated wth flng the notce and a fee for preparng the notce of len establshed from tme to tme by resoluton of the Board of Drectors of the Assocaton. n the event the Aasoclatlon shall brng any sut or acton to enforce ths Declaraton, or to collect any money due hereunder or to foreclose a len, the Owner-defendant shall pay to the Assocaton all costs and expenses ncurred by t n connecton wth such sut or acton, ncludng a foreclosure ttle report, and the prevalng party n such sut or acton shall recover such amount as the court may determne to be reasonable as attorneys' fees at tral and upon any appeal or petton for revew thereof. 8.6 NonmcclwdYtPess and Att,nmqlatlon of BernecJffl. An electon by the Assocaton to pursue any remedy provded for volaton of ths Declaradon sball not prevent co=..--:-...!!t C!!'.!~"Mt exercse of anolher remedy penntted hereunder. The remede.s provded n ths Declaraton are not excluave but sball be n addton to all other remeces, ncluw.15 actons for damages and suts for njunctons and specfc perfonnance, avalable under applcable law to the Assocaton. n addton, any aggreved Owner may brng an acton aganst another Owner or the Assocaton to recover damages or to enjon, abate or remedy any volaton of ths Declaraton by approprate legal proceedngs. ARTCLE 9. MORTGAGEES 9.1 R@lmhplHPJen& of Frst Mortaaeees, Frst mortgagees of unts may, jontly or sngly, pay overdue premums on bmu'd nsurance polces or secure new buard nsurance PDXA t