ARTICLE XV

General Provisions

Section 15.1.    Binding Effect
All present and future Owners or occupants of Lots shall be subject to and shall comply with the provisions of this Declaration, and the Bylaws and rules and regulations of the Association, as they may be amended from time to time. The acceptance of a deed or conveyance or the entering into occupancy of any Lot shall constitute an agreement that the provisions of this Declaration, and the Bylaws and rules and regulations of the Association, as they may be amended from time to time, are accepted and ratified by such Owner or occupant, and all such provisions shall be deemed and taken to be covenants running with the land and shall bind any person having at any time any interest or estate in such Lot, as though such provisions were recited and stipulated at length in each and every deed and conveyance or lease.

Section 15.2.    Enforcement
The Association and any Owner shall have the right to enforce, by any proceedings at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. Should the Association or any Owner employ counsel to enforce any of the foregoing covenants, conditions, reservations, or restrictions, all costs incurred in such enforcement, including a reasonable fee for counsel, shall be paid by the Owner found to be in violation of said condition, covenant, reservation, or restriction, or found to be delinquent in the payment of said lien or charge.

Section 15.3.    Failure to Enforce
No delay or omission on the part of the Developer or the Owners in exercising any rights, power, or remedy provided in this Declaration shall be construed as a waiver of or acquiescence in any breach of the covenants, conditions, reservations, or restrictions set forth in the Declaration. No action shall be brought or maintained by anyone whatsoever against the Developer for or on account of its failure to bring any action for any breach of these covenants, conditions, reservations, or restrictions, or for imposing restrictions which may be unenforceable.

Section 15.4.   Severability
Invalidation of any one of these covenants or restrictions by judgment or court order shall not affect any other provisions which shall remain in full force and effect.

Section 15.5.    Interpretation
The singular may also include the plural and the masculine may include the feminine, or visa versa, where the context so admits or requires. This Declaration shall be liberally construed in favor of the party seeking to enforce its provisions to effectuate the purpose of protecting and enhancing the value, marketability, and desirability of the Property by providing a common plan for the development of Sky Island.

Section 15.6.    Amendment
The covenants and restrictions of this Declaration shall run with and bind the land, for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. This Declaration may be amended by those holding seventy-five percent (75%) of the voting power of the Association. Any amendment must be in writing and signed by the approving Members or Owners, and must be recorded.

Section 15.7.    Power of Developer to Amend to Meet Financing Requirements
Notwithstanding anything in this Declaration to the contrary, Developer may, without the consent of any Owner, at any prior to the time it has sold and closed seventy-five percent (75%) of the Lots, amend this Declaration by an instrument signed by Developer alone in order to satisfy the requirements of the Federal Mortgage Agencies and/or other financial institutions.

Section 15.8.    FHA/VA Approval
As long as there is a Class B membership, the following actions will require the prior approval of the Federal Housing Administration or the Veterans Administration if such administrations have insured any of the Lots or held a first mortgage on any of the Lots: annexation of additional properties, dedication of Common Areas, and any amendment to this Declaration of Covenants, Conditions and Restrictions.

Section 15.9.    Certain Rights of Developer
For such time as Developer shall own Lots there shall be no amendments to the Declaration, the Articles of Incorporation, the Bylaws of the Association, or any Rules and Regulations adopted by the Association which:
  (a)    Discriminate or tend to discriminate against the Developer's rights as an Owner.
  (b)    Change Article I ("Definitions") in a manner which alters Developer's rights or status.
  (c)    Alter the character and rights of membership or the rights of Developer as set forth in Article II.
  (d)    Alter previously recorded or written agreements with public or quasi-public agencies regarding easements and rights-of-way.
  (e)    Alter its rights as set forth in Articles VI and VII relating to architectural controls.
  (f)    Alter the basis for assessments.
  (g)    Alter the provisions of the use restrictions as set forth in Article VIII.
  (h)    Alter the number or selection of Directors as established in the Bylaws.
  (i)    Alter the Developer's rights as they appear under this Article.

IN WITNESS WHEREOF, the undersigned has caused this Declaration to be executed this _____ day of __________, 1998.

SKY ISLAND, L.L.C., a Washington limited liability company.



By:   Peter J. Naccarato
    Its: Managing Member