1. Developer owns certain real property in Bonney Lake and in Pierce County, Washington, on which it is developing the residential community of "Sky Island." Developer is developing the first phase of Sky Island on the lands described in Exhibit "A."
2. Developer has created a general plan of development for the benefit of all of the property within Sky Island. Developer desires to preserve and enhance the property values, amenities, and opportunities in Sky Island and to provide for the health, safety and welfare of the residents. To this end, Developer desires to subject the property to the covenants, restrictions, easements, charges and liens set forth in this Declaration, all of which are for the benefit of the property and each owner.
3. Developer will incorporate, as a nonprofit corporation, the Sky Island Homeowners Association, to provide a mechanism for meeting the purposes of this Declaration.
4. The Declaration of Covenants, Conditions and Restrictions was recorded with the Pierce County Auditor under File No. 9702030033, and was superseded by the First Amended and Restated Declaration, which was recorded with the Pierce County Auditor under File No. 9705130562. The Developer has retained the right to amend the Declaration so long as it retains 75% of the voting power of the Association. The Developer retains more than 75% of the voting power of the Association, and desires to amend the Declaration. This Second Amended and Restated Declaration supersedes the First Amended and Restated Declaration in its entirety.

DECLARATION

Developer hereby declares that the property described in Exhibit "A" is and shall be held, transferred, sold, conveyed, and occupied subject to the covenants, conditions, restrictions, easements, charges, and liens set forth in this Declaration.

Further, Developer delegates and assigns to the Sky Island Homeowners Association the power of owning, maintaining, and administering the Common Areas, administering and enforcing the covenants and restrictions, collecting and disbursing the assessments and charges created in this Declaration, and promoting the recreation, health, safety, and welfare of the residents.