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DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR THE PLAT OF HARBOR RIDGE

contained in instrument recorded under pierce County Auditor's No. 8010100262, as follows:

THIS DECLARATION made on the 2nd day of October, 1980, by BLOCK BROS. INDUSTRIES (USA) INC., a Washington corporation, and CARSON L. ELLER and LINDA ELLER, husband and wife (hereinafter collectively referred to as "Declarant").

1. Declarant is the owner of certain property (the "property") located in Pierce County, Washington and more particularly described in Exhibit "A", a copy of which is attached hereto and specifically incorporated by this reference.

2. Declarant desires to create on the property a residential community with a high standard of exterior architectural appearance.

3. Declarant will convey the property, subject to certain protective covenants, conditions, restrictions, reservations, and charges set forth in this Declaration.

Declarant hereby declares that all of the property shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions, all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of the property. These easements, covenants, restrictions and conditions shall run with the property and shall be binding on all parties having or acquiring any right, title or interest in the property, or any part thereof, and shall inure to the benefit of each owner thereof.

Section 1. "Lot" shall mean any numbered plot of land shown upon any recorded subdivision map of the property with the exception of areas dedicated to the City of Tacoma.

Section 2. "Owner" shall mean the one or more persons or entities holding legal title to a lot, or in the event any lot is sold under real estate installment sales contract, the vendee or vendees under said contract; provided, however, that the term "Owner" shall not include those holding legal title merely as security for the performance of an obligation.

Section 3. "Property" shall mean the property described in Exhibit "A."

Section 1. There is hereby created an Architectural Control Committee (the "ACC") which shall have the authority to review and act upon proposals and plans submitted and to perform other functions set forth in this Declaration.

Section 2. The initial members of the ACC are:

The majority of the members may designate a representative to act for the ACC. In the event of the death or resignation of any member of the ACC, the remaining members shall appoint a successor. At any time after Declarant has sold all of the lots within the subdivision, the then owners of a majority of the lots shall have the power through a duly recorded instrument to change the membership of the ACC or to withdraw from the committee or restore to it any of its powers or duties.

Section 3. The ACC shall have the authority to adopt written guidelines to be applied in its review of plans and specifications. If such guidelines are adopted, they shall be available to all owners upon request.

Section 4. The ACC shall meet as necessary to properly perform its duties and shall keep and maintain a record of all actions taken at meetings or otherwise. The members of the ACC shall not receive any compensation for services rendered.

Section 5. Approval by the ACC of any plans, drawings, or specifications shall not constitute a waiver of the right to withhold approval of any similar plan, drawing, specifications, or matter subsequently submitted for approval.

Section 6. Neither the ACC nor any member thereof shall be liable to any owner for damage, loss, or prejudice due to approval or failure to approve any matters submitted to the ACC; provided, however, the member must have acted in good faith in light of the actual knowledge possessed by him/her. Notwithstanding the foregoing, the ACC or any member may consult any owner with respect to plans, drawings, or specifications, or any other proposal submitted to the ACC.

Section 1. No building or other structure, including fences, walls and swimming pools, shall be constructed or altered until plans and specifications for the same have been approved by the ACC. No clearing shall be allowed on any lot until the plans for the principal structure on said lot have been approved. Any person proposing to construct or alter a building or structure shall submit to the ACC two sets of plans and specifications showing:

1. The size and dimension of the improvement.
2. The exterior design and materials.
3. The exterior color scheme.
4. The exact location of the improvement on the lot.
5. The location and materials of driveways and parking area.
6. The scheme for drainage and grading.
7. Proposed clearing and landscaping, including, landscaping of the area between the lot line and the curb line.

The ACC may also require that a soils report, prepared by a licensed engineer, be prepared and submitted in connection with any request for approval under this Article.

Section 2. The following actions shall also require the prior written approval of the ACC:

1. Changing the grade or natural drainage of any lot.
2. Planting any tree or shrub which is or may grow to be greater than 15 feet in height.
3. Cutting or removal of any tree greater than 4" in diameter at a height three feet above the ground.

Section 3. Approval of plans and specifications for any of the above-listed actions may be withheld or conditioned if the proposed action is at variance with these covenants. Approval may also be withheld or conditioned if, in the opinion of the ACC, the proposed action will be detrimental to the property or any portion thereof because of impact on view rights, grading and drainage plan, location of a structure on the building site, color scheme, finish design, proportions, shape, height, style, appropriateness, materials or landscaping plan. With respect to those lots adjacent to the steep slops areas dedicated to the City of Tacoma, the ACC shall consider the impact of the proposed action on such areas and on other steep areas of the property.

Section 4. The approval or disapproval of the ACC as required in these covenants shall be in writing. In the event that the ACC or its designated representative fails to approve or disapprove an action within thirty (30) days after plans and specifications have been submitted, or in any event, if no suit to enjoin the action has been commenced prior to the completion thereof, approval will not be required and the related covenants shall be deemed to have been fully complied with.

Section 5. It shall be the responsibility of the ACC to determine that actions have been completed in accordance with the plans as submitted and approved. Such determination must be made within sixty (60) days of the completion of the action. In the event the ACC shall determine that the action does not comply with the plans and specifications as approved, it shall notify the owner within said sixty-day period, whereupon the owner, within such time as the ACC shall specify, but not less than thirty (30) days, shall either remove or alter the improvement or take such action as the ACC shall designate. If no action by the ACC is taken within sixty (60) days of the date of completion of the action, the action shall conclusively be deemed to be satisfactory to the ACC.