Covenants and Restrictions

RESTATED DECLARATION OF

COVENANTS AND RESTRICTIONS

For

HONEYMOON LAKE,

DIVISIONS 1, 2 and TRACT C OF SURVEY

AND HONEYMOON LAKE COMMUNITY CLUB

THE COVENANTS AND RESTRICTIONS HEREIN ARE RESTATED COVENANTS AND RESTRICTIONS AND SUPERSEDE ALL PREVIOUS COVENANTS AND RESTRICTIONS INCLUDING BUT NOT LIMITED TO THOSE ORIGINALLY ADOPTED SEPTEMBER 24, 1968 AND RECORDED OCTOBER 10, 1968 UNDER AFN 214447, SUBSEQUENTLY AMENDED JANUARY 20, 1971 AND RECORDED JANUARY 28, 1971 UNDER AFN 237501, AMENDED JULY 15, 1993 AND RECORDED JULY 20, 1993 UNDER AFN 93014025, AMENDED APRIL 28, 1995 AND RECORDED MAY 1, 1995 UNDER AFN 95006776, THOSE RECORDED JULY 10, 1997 UNDER AFN 97010671, AMENDED MARCH 18, 1999 AND RECORDED MARCH 22, 1999 UNDER AFN 99006949, AMENDED MARCH 18, 1999 AND RECORDED MARCH 22, 1999 UNDER AFN 99006950, AND THOSE AMENDED MARCH 26 AND RECORDED MARCH 28, 2001.

The Governing Documents of the Corporation and all of the definitions for the terms used therein and herein are described in Article 1 (PURPOSES AND DEFINITIONS) of the Bylaws. The definitions are incorporated herein by this reference as though fully set.

KNOW ALL PERSONS BY THESE PRESENTS, that the Board of Directors of HONEYMOON LAKE COMMUNITY CLUB, who are hereinafter collectively referred to as “The Undersigned”, do hereby declare as follows:

WHEREAS, the Undersigned constitute the Board of Directors elected by the fee owners or contract purchasers, of certain real property located in Island County, State of Washington, to wit: all Lots and Tracts within the Plat of HONEYMOON LAKE DIVISIONS 1 AND 2 AND TRACTS A, B AND C OF SURVEY legally described in Article 4 (PROPERTY) of this Declaration, referred to as “the Property” herein, and

WHEREAS, the Undersigned desire to subject the Property to the restrictions, covenants, conditions, reservations, easements, liens, and charges hereinafter set forth, each and all of which are for the benefit of the Property and for each owner thereof, and shall inure to the benefit of and pass with the Property as covenants running with the land, and each and every Lot or Tract thereof, and shall apply to and bind the successors in interest, and any future owners thereof, this Restated DECLARATION OF COVENANTS AND RESTRICTIONS being for the purpose of keeping the Property desirable, uniform and suitable in architectural design and use as herein specified, and WHEREAS, the power to enforce said restrictions, covenants, conditions, reservations, easements, liens and charges is to reside in HONEYMOON LAKE COMMUNITY CLUB, its successors and assigns, a non-profit corporation organized under the laws of the State of Washington, and

WHEREAS, The DECLARATION OF COVENANTS AND RESTRICTIONS for the Property provide in Article 5 (GENERAL PROVISIONS), Paragraph 5, that the DECLARATION OF COVENANTS AND RESTRICTIONS may be amended by the calling of a special meeting of the Members to which not less than fourteen (14) days notice was given by first class mail, postage pre-paid, and at which meeting Members discussed Amendments to the DECLARATION OF COVENANTS AND RESTRICTIONS and Amendments were then mailed to them along with Ballots and return envelopes, first class postage prepaid, and for the next two (2) weeks Ballots were collected and the votes were counted, and at least eighty percent (80%) of the votes received, approved the Amendments and the recording of the Restated DECLARATION OF COVENANTS AND RESTRICTIONS,

NOW THEREFORE, The Undersigned hereby declare that the DECLARATION OF COVENANTS AND RESTRICTIONS for Honeymoon Lake, [(DIVISIONS 1 AND 2, and TRACT C of SURVEY) and (TRACTS A-E therein, together with TRACTS A and B of SURVEY, owned by the Corporation which is owned by the Members)] are hereby Amended and Restated as set forth in this Declaration.

ARTICLE 1

GENERAL PURPOSE OF CONDITIONS

The purpose of these Covenants and Restrictions is to ensure the best use and the most appropriate development of each building site; to protect the owners of building sites against improper use of property; to maintain the dam according to the standards of the Department of Ecology of the State of Washington; to prevent pollution of waterways and the lake; to preserve, so far as practicable, the Property’s natural beauty; and to guard against the erection thereon of poorly designed or proportioned structures and structures built of improper or unsuitable materials; and thereby to enhance the values of investments made by purchasers of Lots.

ARTICLE 2

COVENANTS AND RESTRICTIONS

2.1

Petition for Variance. The Board of Directors may grant variance from these Covenants and Restrictions if, in their jointly considered opinion, such variance would not violate the harmony of the community or the spirit of these Covenants and Restrictions. A request for a variance must be in writing and in sufficient detail to satisfy the Board of Directors in its discretion. Notice of any variance shall be publicly posted at the principal place of business of the Club for a period of thirty (30) days prior to the issuance of said variance, and the Board of Directors shall consider Members’ comments in making their final decision. Owners of any Lot affected by the variance, in the opinion of the Board of Directors, shall be notified in writing, mailed or delivered on the day of posting. Prior to commencement of the action for which variance is requested, such variance must be granted, in writing to the petitioner.

2.2

Land Use. The Property shall be used only as described in this document, and such usage can be changed only by the Members of Honeymoon Lake Community Club as provided in Article 5 (GENERAL PROVISIONS), Paragraph 5.5 herein. All Lots and Tracts of the Property shall be used only for single family residence or owners’ personal recreation, except for such parts of the Property that are owned by Honeymoon Lake Community Club (Corporation Property herein). Hotels, resorts, and businesses catering to the public, including tenancies less than thirty (30) days, are prohibited within the boundary of this Plat and Survey. No land clearing or land use shall damage or threaten to damage the ecology of Honeymoon Lake or the water courses entering Honeymoon Lake.

2.3

Cuts. Fills. Utility. Sewerage and Drainage Easements. The right is reserved to construct and maintain public utilities on the streets and roads, and along the lot lines of the plats either above or below ground; to make all necessary slopes for cuts or fills upon the lots shown on the plats in their original grading; together with the right to drain the streets or roads over or across any Lot or Lots where water may take a natural course. The Board of Directors further reserves perpetual easement, for themselves or their agents, under, over, and across the rear, front and side five feet of each Lot for the purpose of placing, laying, erecting, constructing, maintaining and operation of utilities, sewerage and drainage systems. No change in the natural drainage shall be made by any Lot owner without prior written approval from the Board of Directors. The right is reserved to enter upon the easements mentioned above to trim trees where necessary for the installation and maintenance of overhead utilities, which right may be exercised by the power company, the telephone company, and other agencies responsible for the maintenance of overhead utilities.

2.4

Sewage Systems. Septic systems shall be inspected and pumped as required by current Island County Health Department regulations. Sewage systems shall meet all applicable Island County requirements.

2.5

Minimum Lot Size. No Lot can be subdivided from the original platted size.

2.6

Setbacks. Setbacks shall be in accordance with Island County regulations in force at the time of construction, which at the time of platting stated that no building shall be located nearer than twenty (20) feet from the front lot line or side street line or street corner, nor nearer than five (5) feet from any interior lot line unless and until Island County has issued a formal Administrative Reduction in setback requirements. No building or septic field shall be located nearer Honeymoon Lake than the setback line indicated on the Plats of Honeymoon Lake, which setbacks were established to prevent pollution of Honeymoon Lake and are fifty (50) feet for dwellings and one hundred (100) feet for septic drain fields.

2.7

Habitation of Temporary Structures. No temporary structure, basement, garage, any other outbuilding, tent, travel trailer or recreational vehicle shall be used on any lot as a permanent dwelling. Any of the above used as a seasonable recreational dwelling shall not be stored or left unoccupied for longer than thirty (30) days on lots without a permanent residence, except under a temporary written permit which may be granted, with specific time limitations, by the Board of Directors.

2.8

Construction Control. All buildings, structures and fences on the Property must conform to current Island County building regulations and the requirements of Honeymoon Lake Community Club, Inc. All plans and specifications for buildings, structures, fences, sewage systems and land clearing must meet all of the requirements of Island County and be submitted to the Building Committee in a package for review. Approval must be obtained in writing from the Building Committee before lot clearing and construction may commence. All exterior construction and finish must be completed within twelve (12) consecutive months. All residences shall be of new construction and rest upon continuous concrete foundations. All residences shall be erected upon the site and no residence or sections of a residence shall be moved onto a Lot from another location. Water system hookups and/or Certification of Water Availability will be made only after full payment of the water hookup fee. Water Availability Forms will not be signed until proposed construction plans have been approved by the Building Committee.

2.9

Building Size Limitations. No dwelling shall have a living area less than nine hundred (900) square feet, exclusive of porches, patios, open entrances and garages. No building or structure shall exceed twenty (20) feet in height, measured from the highest point of the original (undisturbed earth) grade within the foundation footprint of the structure. Variance (Article 2 (VARIANCE), Paragraph 2.1, herein) may be granted by the Board of Directors depending upon location and approval by neighbors.

2.10

Fences and Hedges. Fences and hedges exceeding six (6) feet in height must be approved by the Board of Directors prior to construction. Fences and hedges shall approach no closer than fifteen (15) feet to the shore of Honeymoon Lake to permit free movement of wildlife.

2.11

Docks and Floating Structures. The Board of Directors shall approve plans and materials in writing before the placement or construction of docks and floating structures. Each lake front Lot is allowed one (1) dock or floating structure, limited to one hundred (100) square feet or less in surface area, placed as least six (6) feet from adjacent property line extensions. Docks and floating structures must be firmly secured to the shore, extend no more than ten (10) feet from the shoreline, and rise no more than four (4) feet above water level including railings. Construction materials must be non-toxic and environmentally safe, and spent flotation material must be promptly removed and replaced. Docks and floating structures in existence as of the date of the original Declaration of Covenants and Restrictions shall be acceptable until they are rebuilt, when they shall conform to the restrictions of this Section.

2.12

Radio and TV Antennae. Television, radio or communication antennae shall not exceed ten (10) feet in height, measured from the highest point of the roof, without written permission from the Board of Directors.

2.13

Outside Storage. Outside storage on Lots without a dwelling shall not be allowed. Items shall be stored in such a way as to not constitute an eyesore or hazard on any Lot. Adequate OFF-STREET parking shall be provided by owners for all vehicles, boats, trailers, campers, etc.

2.14

Animals. Only dogs, cats and other common household pets may be kept provided they are not a neighborhood nuisance or hazard. No animals, birds, fish or reptiles shall be raised, bred or kept for any commercial purpose upon any of the Property. One accessory building and/or pet run to house such animals is permitted, located not less than twenty (20) feet from any lot line and outside the fifty (50) foot pollution control line of Honeymoon Lake.

2.15

Refuse. None of the Property or the waters within the Property shall be used as a dumping ground for rubbish, yard waste, pet waste, refuse, ashes or garbage. Garbage and other waste shall be kept in sanitary containers and not allowed to become an offensive nuisance. All equipment for the disposal of waste shall conform to and be operated under the regulations of Island County.

2.16

Unkempt Lots. Owners are responsible for maintaining their property in a manner which minimizes the danger of fire and protects the ecology of Honeymoon Lake. If the owner, after thirty (30) days notice, does not fulfill these responsibilities, the Club or its agent shall have the right but not the obligation, to enter upon all Lots and Tracts of the Property to maintain that property and to charge the owner the actual cost plus ten percent (10%) for services rendered in alleviating any unsightly or polluting condition. [Refer to Bylaws Article 5 (POWERS AND DUTIES OF DIRECTORS, Paragraph 5.1.4 and Article 7(DUES, FEES, ASSESSMENTS AND LIENS), Paragraph 7.15.)]

2.17

Signs. No signs in public view larger than one (1) square foot shall be allowed on the Property, except for “For Sale” signs which may be no larger than four (4) square feet.

2.18

Nuisances. No activity which is an annoyance or nuisance to the neighborhood shall be allowed on any of the Property. Discharge of firearms is prohibited. Only human, electric or wind-powered boats shall be allowed on Honeymoon Lake.

2.19

Trees, Shrubbery, Lawns and Plantings. Native evergreens such as cedars, firs and hemlock may not be cut and felled without pre-approval from the Board of Directors or the Building Committee Chairman. Whenever evergreens are cut down on community property or on individual Lots, beyond what has been approved for construction or improvements, a fine of $100 for each one inch (1”) diameter of each tree will be imposed on the violator. In addition, the person(s) responsible shall plant one (1) four foot (4’) conifer for every two inches (2”) above the highest root. Vegetation (other than evergreens) higher than fifteen feet (15’) is not allowed on any Lot if it would affect the views of another community member. The Board of Directors forbids the use of fertilizers, herbicides or poisons where natural drainage would in time carry such nutrients or biocides into Honeymoon Lake.

2.20

Complaints. Complaints regarding any property owner’s use of his or her property or alleged violation of Covenants, Bylaws or Rules for use of Club property shall be directed first to the owner thereof. If the problem continues, in the opinion of the complainer, the complainer shall direct the complaint to the Board of Directors in writing. The Board of Directors will consider the complaint and render a decision to the parties, in writing, in its discretion. The decision of the Board of Directors shall be final.

ARTICLE 3

HONEYMOON LAKE COMMUNITY CLUB

3.1

Membership. The owner of each Lot shall be a Member of Honeymoon Lake Community Club and be subject to the Articles on Incorporation, these Covenants and Restrictions, Bylaws and Rules of the Corporation, including any amendments or revisions thereof, which may hereafter be effected as provided by the Bylaws of the Corporation. Each Member shall pay all fees, dues, and assessments which may become payable to the Corporation as provided by the Bylaws of the Corporation. Each Member shall be entitled to vote as provided by the Bylaws of the Corporation.

3.2

Honeymoon Lake Dam Maintenance. A dam was installed to create Honeymoon Lake. Honeymoon Lake Community Club, through its Board of Directors, agrees to be responsible for the dam maintenance pursuant to the specifications of the Department of Ecology of the State of Washington.

3.3

Water System. All Lots and Tracts within the Property are hereby conveyed an undivided equal interest in the entire water system consisting of the reservoir and platted grounds, the pumping plant and well, the pipe lines and other parts of the system. A hookup fee for connection to the system as set forth in the Bylaws of the Corporation shall be paid before construction commences and before water hookup is made to the property. All connections to the system are subject to an annual water users fee as set forth in the Bylaws of the Corporation. Any disposition of Lots 72 and 73, Division 1, shall reserve the right of access to the community well and their use restricted to purposes that will not contaminate the well so long as it is being used for domestic supply.

3.4

Dues, Fees, Special Charges and Assessments. All Lots (as defined in Bylaws, Article 1 (PURPOSES AND DEFINITIONS), Paragraph 1.12) are subject to dues, fees, special charges and assessments [as described in Bylaws, Article 7(DUES, FEES, ASSESSMENTS AND LIENS)] for the purposes of financing the activities of the Club, maintaining the water system, maintaining the Club facilities, enforcing these covenants, and maintaining the dam installed for the creation of Honeymoon Lake according to the specifications of the Department of Ecology of the State of Washington as set forth in the Bylaws of the Corporation.

3.5

Late Payments, Delinquent Payments and Liens. Late and Delinquent [as defined in Bylaws, Article 1(PURPOSES AND DEFINITIONS), Paragraphs 1.11 and 1.8) payments shall incur interest penalties as set forth in the Bylaws of the Corporation.

3.6

Rules for Use of Facilities. The Board of Directors or a majority of the Members voting at any Annual or special Membership meeting, may impose or amend certain Rules for the fair and orderly use of the Corporation Property and any or all property under the care and control of the Club. A current version of the Rules, approved for posting at the annual meeting, will be posted on the bulletin board in the clubhouse within fifteen (15) days after that meeting. Such Rules become a part of these covenants and Members will be notified in writing by mail, electronic transmission or delivery on the day of posting. The Board of Directors will deal with violations of these Rules as set forth in the Bylaws of the Corporation. If the Board of Directors and a majority of Members disagree, the majority of Members voting at any Annual or special Membership meeting shall prevail.

ARTICLE 4

PROPERTY

Whenever used in this Declaration, the following terms shall have meaning given them in this Article 4.

4.1

“The Property”. “The Property” herein shall mean all land encompassed within the Plat of HONEYMOON LAKE, DIVISIONS 1 and 2 and Lot 0 legally described as follows:

SITUATE IN THE COUNTY OF ISLAND, STATE OF WASHINGTON:

DIVISION 1: LOTS 1-93. Plat of HONEYMOON LAKE, DIVISION NO. 1, according to the Plat thereof recorded in Volume 10 of Plats, Pages 44-46, records of the County Auditor of Island County, Washington.

DIVISION 2: LOTS 1-71. Plat of HONEYMOON LAKE, DIVISION NO. 2, according to the Plat thereof recorded in Volume 11of Plats, Pages 38-40, records of the County Auditor of Island County, Washington.

LOT 0: TRACT C of SURVEY recorded April __, 1962, in Volume 29 of Miscellaneous Records, page 477, under Auditor’s File No. 143914, Records of Island County, Washington. NOTE: The date in April, 1962 was illegible in the records of the title company.

4.2

”Corporation Property”. The property owned by the HONEYMOON LAKE COMMUNITY CLUB and managed on behalf of its Members (“Corporation Property”, herein) consists of the parcels of Real Property (“TRACTS” herein), all of which lie within DIVISIONS 1 and 2 described above and legally described as follows:

SITUATE IN THE COUNTY OF ISLAND, STATE OF WASHINGTON:

HONEYMOON LAKE: Tract A, PLAT of HONEYMOON LAKE, DIVISION NO.1, according to the Plats thereof recorded in Volume 10 of Plats, Pages 44 - 46, records of the County Auditor of Island County, Washington.

WELL: Tract B, PLAT of HONEYMOON LAKE, DIVISION NO.1, according to the Plats thereof recorded in Volume 10 of Plats, Pages 44 - 46, records of the County Auditor of Island County, Washington.

DAM: Tract C, PLAT of HONEYMOON LAKE, DIVISION NO.1, according to the Plats thereof recorded in Volume 10 of Plats, Pages 44 - 46, records of the County Auditor of Island County, Washington.

EXCEPT that portion described as follows:

Beginning at the most Northerly point of Lot 42 of said Plat of Honeymoon Lake, Division No. 1; Thence S 57°53’49” E to the most Easterly point of said Lot 42; Thence N 45°49’44” E along the Northerly line of Honeymoon Lake Drive, a distance of 15 feet; Thence N 57°53’49”W 95 feet; Thence Northwesterly in a straight line to the point of beginning.

GREEN BELT: Tract D, PLAT of HONEYMOON LAKE, DIVISION NO.2, according to the Plats thereof recorded in Volume 11 of Plats, Pages 38-40, records of the County Auditor of Island County, Washington.

GREEN BELT: Tract E, PLAT of HONEYMOON LAKE, DIVISION NO.2, according to the Plats thereof recorded in Volume 11 of Plats, Pages 38-40, records of the County Auditor of Island County, Washington.

CLUBHOUSE: TRACT A of SURVEY recorded April __, 1962, in Volume 29 of Miscellaneous Records, page 477, under Auditor’s File No. 143914, records of Island County, Washington. NOTE: The date in April, 1962 was illegible in the records of the title company.

POOL: TRACT B of SURVEY recorded April __, 1962, in Volume 29 of Miscellaneous Records, page 477, under Auditor’s File No. 143914, records of Island County, Washington. NOTE: The date in April, 1962 was illegible in the records of the title company.

.ARTICLE 5 - GENERAL PROVISIONS

5.1

Term. These Covenants and Restrictions shall run with the land and shall be binding upon all parties and persons claiming under them for a period of ten (10) years from the date this Declaration is recorded, after which time said Covenants and Restrictions shall be automatically extended for successive periods of ten (10) years unless an instrument has been recorded, agreeing to extinguish or change said Covenants and Restrictions in whole or part; provided that no covenant or restriction which alters the covenant guaranteeing the maintenance of the dam shall be extinguished or changed without prior written approval of the Department of Ecology of the State of Washington.

5.2

Enforcement. The Board of Directors of the Club is hereby charged with the authority and obligation for the enforcement of the terms of this Declaration. Enforcement may be by proceedings in equity or at law against any person or persons violating or attempting or threatening to violate any of the covenants or restrictions hereof, either to restrain such violation or to recover damages. The Board of Directors shall report all known violations and actions at the Annual Membership meeting. In the event that the Club fails to take appropriate action for the enforcement of the Covenants and Restrictions within a reasonable time after a violation or threatened or attempted violation is brought to its attention in writing, any person or persons then owning or purchasing Lots within the Property, or the Department of Ecology of the State of Washington, may take such steps in law or in equity as may be necessary for such enforcement. Any damages recovered in such enforcement proceedings shall inure to the benefit of the person or persons damaged by the violation involved. The party prevailing in such enforcement proceedings, whether in law or in equity, shall have from his or her opponents such attorneys fees as the court may deem reasonable.

5.3

Non-Waiver of Right. The failure of any land owner or the Club to enforce any of these Covenants or Restrictions or any particular term or condition hereof shall in no event be deemed a waiver of the right to do so thereafter as to the same breach or as to one occurring prior to or subsequent thereto, nor shall such failure give rise to any claim or cause of action against such land owner, or the Club.

5.4

Severability. Invalidation of any one of these Covenants and Restrictions, or any part thereof, or any application thereof to any person or circumstances by judgment or court order shall not affect any of the other Covenants or Restrictions or remaining parts thereof nor their application to other persons or circumstances, all of which shall remain in full force and effect.

5.5

Amendment Procedure. This DECLARATION OF COVENANTS AND RESTRICTIONS may be supplemented, amended or revoked, in whole or in part in the following way: Proposed changes shall be adopted by the Board of Directors in a Resolution, which proposed changes are subject to approval by the members. The Secretary shall deliver the Notice in person, by electronic transmission or by pre-paid First Class US mail, to the mailing address of each owner or to any other mailing address designated in writing by the owner, not less than fourteen (14) days nor more than sixty (60) days prior to the meeting, as required by RCW 64.38.035(1). Notice of the meeting shall include the following: a copy of existing language, a copy of the proposed language, a ballot, and a pre-paid First Class US postage return envelope addressed to the Secretary. The Notice shall state the time and place of the meeting and the business to be placed on the agenda by the Board of Directors for a vote by the Members. The Notice shall be for either an annual meeting or a special meeting specifically called for that purpose. The meeting agenda shall include a discussion of the proposed amendments. Ballots may be collected at the meeting and shall continue to be collected until two (2) weeks after such annual or special meeting. The President and Secretary shall count the ballots. At least eighty percent (80%) of the votes received in the affirmative shall be required to approve the amendments. Upon approval, the Officers shall sign the Amended and Restated DECLARATION OF COVENANTS AND RESTRICTIONS and the Secretary shall certify that the process of adoption conformed with this Article by providing the particulars of the process. The Secretary shall then record the original signed Amended and Restated DECLARATION OF COVENANTS AND RESTRICTIONS in the Office of the Auditor of Island County, and obtain a Conformed Copy thereof.

5.6

Insertion in Deeds. The Members, their heirs, assigns and successors in interest hereby agree to inform any prospective purchaser or lessee of any of the Property of the existence of this Restated DECLARATION OF COVENANTS AND RESTRICTIONS, ARTICLES OF INCORPORATION, and BYLAWS OF THE HONEYMOON LAKE COMMUNITY CLUB, and further agree that in every deed, contract of sale or lease of the Property or any portion thereof, a clause reasonably identical to the following shall be inserted:

“The real property described herein is subject to the terms and conditions of the most recent and all subsequent lawfully adopted Governing Documents, being the Restated Declaration of Covenants and Restrictions, the Restated Articles of Incorporation, and the Restated Bylaws of the Honeymoon Lake Community Club, all of which have been or will be in the future recorded in the records of the auditor of Island County, Washington.”

IN WITNESS WHEREOF, the Undersigned have hereunto set their hands and seals as the duly elected Directors and Officers of Honeymoon Lake Community Club, Inc. and have signed these Amended and Restated Declaration of Covenants and Restrictions, this _____ day of August, 2006.