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HomeMy WebLinkAboutFinal Condo docsDavis Wright LIN Tremaine LLP May 5, 2010 Steven L. Gross City of Auburn 25 W Main Street Auburn, WA 98001-4998 Re: Auburn Central Parking Garage Condominium Dear Steve: As you requested, I am enclosing copies of the following documents: Suite 2200 1201 Third Avenue Seattle, WA 98101-3045 Marco de Sa a Silva 206.757.8024 tel 206.757.7024 fax desam@dwt.com 1. Condominium Declaration and Covenants, Conditions, Restrictions, and Reservations for Auburn Central Parking Condominium recorded in King County on February 4, 2010, under Auditor's File No. 20100204000965; and 2. Consent to Action of Board of Directors in Lieu of Organizational Meeting of Directors of Auburn Central Parking Garage Condominium Owners Association effective as of January 1, 2010, with Bylaws attached as Exhibit A. Please do not hesitate to contact me if you have any questions concerning the enclosed documents. Sincerely yours, D v. Wright Tremaine LLP J--k \A-t- (1\,.A Marco de Sa e Silva MD:sms Enclosures DWT 14676578v1 0018516-000023 Anchorage New York Seattle Bellevue Portland Shanghai Los Angeles San Francisco Washington, D.C. F*) www.dwt.com WHEN RECORDED, RETURN TO: Marco de Sa a Silva, Esq. DAVIS WRIGHT TREMAINE LLP 1201 Third Avenue, Suite 2200 Seattle, Washington 98101 IIII11111111 lil 11111111111111111111 20100204000965 KING COUNTY, WA CONDOMINIUM DECLARATION AND COVENANTS, CONDITIONS, RESTRICTIONS, AND RESERVATIONS FOR AUBURN CENTRAL PARKING GARAGE CONDOMINIUM Grantor: AUBURN REGIONAL MEDICAL CENTER, INC. Grantee: AUBURN CENTRAL PARKING GARAGE OWNERS ASSOCIATION Abbreviated Legal Description: PARCEL B, CITY OF AUBURN BOUNDARY LINE ADJUSTMENT NUMBER BLA-08-0006, RECORDED UNDER RECORDING NUMBER 20080911900016, IN KING COUNTY, WASHINGTON. Complete legal description is at Schedule A hereto. Assessor's Property Tax Parcel Account Numbers: 0492000340-04 Reference to Related Documents: A.F. No. 2z/D 02,04wo 94 {(condominium survey map and plans) DWT 162 5240v 19 0018516-000023 CONDOMINIUM DECLARATION AND COVENANTS, CONDITIONS, RESTRICTIONS, AND RESERVATIONS AUBURN CENTRAL PARKING GARAGE CONDOMINIUM DWT 1625240v19 0018516-000023 CONDOMINIUM DECLARATION AND COVENANTS, CONDITIONS, RESTRICTIONS, AND RESERVATIONS FOR AUBURN CENTRAL PARKING GARAGE CONDOMINIUM TABLE OF CONTENTS Page ARTICLE1 DEFINITIONS............................................................................................................ I Section 1.1 Words Defined............................................................................................. I Section 1.2 Form of Words............................................................................................3 Section 1.3 Statutory Definitions...................................................................................3 ARTICLE 2 SUBMISSION OF THE PROPERTY TO THE CONDOMINIUM STATUTE............................................................................................................................4 ARTICLE 3 DEVELOPMENT RIGHTS; DESCRIPTION OF LAND........................................4 Section 3.1 Reservation of Development Rights...........................................................4 Section 3.2 Development in Subsequent Phases...........................................................5 Section 3.3 Joint Use and Maintenance of Common Elements....................................5 Section3.4 Liens.............................................................................................................6 Section 3.5 Character of Improvements.........................................................................6 ARTICLE 4 DESCRIPTION OF BUILDINGS..............................................................................6 ARTICLE 5 UNIT NUMBERS, LOCATION, AND DESCRIPTION.........................................6 Section 5.1 Building Location........................................................................................6 Section 5.2 Unit Location...............................................................................................6 Section 5.3 Unit Description..........................................................................................6 ARTICLE 6 COMMON ELEMENTS............................................................................................7 Section6.1 Description...................................................................................................7 Section 6.2 Use; Maintenance........................................................................................7 ARTICLE 7 LIMITED COMMON ELEMENTS..........................................................................8 Section7.1 Description...................................................................................................8 Section 7.2 Appurtenant to Units...................................................................................8 Section 7.3 Allocation, Reallocation of Limited Common Elements, Common Elements......................................................................................8 ARTICLE8 ACCESS.......................................................................................................................8 Section 8.1 Access to Common Elements.....................................................................8 DWT 1625240A 9 0018516-000023 Section 8.2 Access to Public Streets..............................................................................8 Section8.3 Access to Units............................................................................................8 ARTICLE 9 PERCENTAGES OF ALLOCATED INTERESTS IN COMMON ELEMENTS.........................................................................................................................9 ARTICLE 10 PARKING STALLS.................................................................................................9 Section10.1 Garage..........................................................................................................9 Section 10.2 Use of Parking Stalls...................................................................................9 Section 10.3 Re -striping of Parking Stalls.......................................................................9 Section 10.4 Modification of Disabled Person Parking Stalls........................................9 Section 10.5 Additional Required Disabled Person Parking Stalls...............................10 Section 10.6 Removal of Surplus Disabled Person Parking Stalls................................10 Section 10.7 Additional Optional Disabled Person Parking Stalls...............................10 ARTICLE 11 PERMITTED USES; MAINTENANCE OF UNITS; CONVEYANCES ........... I I Section 11.1 Parking Garage Use Only.......................................................................... I I Section 11.2 Maintenance of Units................................................................................ I I Section 11.3 Exterior Appearance ........................... Section11.4 Utilities.......................................................................................................11 Section 11.5 Effect on Insurance.................................................................................... I I Section 11.6 Alteration of Common Elements..............................................................12 Section11.7 Signs...........................................................................................................12 Section 11.8 Offensive Activity.....................................................................................12 Section 11.9 Abatement of Trespasses...........................................................................12 Section 11.10 Conveyances; Notice Required; Right of First Offer...............................12 (a) Conveyances in General; Notice....................................................12 (b) Right of First Offer.........................................................................13 ARTICLE 12 ENTRY WITHIN UNITS FOR PARKING FACILITY MANAGEMENT............................................................................. .....14 ARTICLE 13 ASSOCIATION OF UNIT OWNERS...................................................................14 Section 13.1 Form of Association..............................:................................................... 14 Section 13.2 Qualification for Membership...................................................................14 Section 13.3 Transfer of Membership............................................................................14 Section 13.4 Voting .......................................... Section 13.5 Voting Representative ................. Section 13.6 Joint Owner Disputes .................. Section 13.7 Pledged Votes .............................. Section 13.8 Annual and Special Meetings ..... Section 13.9 Books and Records ...................... Section 13.10 Audits ........................................... Section 13.11 Articles and Bylaws ..................... ii DWT 1625240v19 0018516-000023 ..............................................................15 ..............................................................15 ..............................................................15 ..............................................................15 ..............................................................15 ..............................................................16 ..............................................................16 ..............................................................16 Section 13.12 Inspection of Condominium Documents, Books, and Records...............16 ARTICLE14 NOTICES................................................................................................................16 Section 14.1 Form and Delivery of Notice....................................................................16 Section 14.2 Eligible Mortgagees..................................................................................17 ARTICLE 15 PERIOD OF DECLARANT CONTROL..............................................................17 Section 15.1 Transition Date..........................................................................................17 Section 15.2 Declarant's Powers Until Transition Date................................................17 Section 15.3 Transfer of Administration........................................................................17 Section 15.4 Transfer of Association Control................................................................17 ARTICLE 16 AUTHORITY OF THE BOARD...........................................................................18 Section 16.1 Adoption of Rules and Regulations..........................................................18 Section 16.2 Enforcement of Declaration, Etc...............................................................18 Section 16.3 Goods and Services...................................................................................18 Section 16.4 Managing Agent........................................................................................19 Section 16.5 Protection of Property...............................................................................19 Section 16.6 Imposition of Payments, Fees, Fines........................................................19 ARTICLE 17 BUDGET AND ASSESSMENT FOR COMMON EXPENSES .........................20 Section 17.1 Preparation of Budget................................................................................20 Section 17.2 Monthly Assessments for Common Expenses and Accrual of Assessments...............................................................................................20 Section 17.3 Revised Assessments.................................................................................21 Section 17.4 Special Assessments..................................................................................21 Section 17.5 Notice of Assessment................................................................................21 Section 17.6 Payment of Assessments...........................................................................21 Section 17.7 Proceeds Belong to Association................................................................21 Section 17.8 Failure to Assess........................................................................................21 Section 17.9 Certificate of Unpaid Assessments...........................................................21 Section 17.10 Separate Accounts.....................................................................................22 ARTICLE 18 LIEN AND COLLECTION OF ASSESSMENTS................................................22 Section 18.1 Assessments Are a Lien; Priority..............................................................22 Section 18.2 Lien May Be Foreclosed...........................................................................22 Section 18.3 Assessments Are Personal Obligations....................................................23 Section18.4 Receiver.....................................................................................................23 Section 18.5 Late Charges and Interest on Delinquent Assessments ............................24 Section 18.6 Recovery of Attorneys' Fees and Costs....................................................24 Section 18.7 Remedies Cumulative...............................................................................24 Section 18.8 Security Deposit........................................................................................24 ARTICLE 19 COMPLIANCE WITH DECLARATION.............................................................24 Section 19.1 Enforcement...............................................................................................24 DWT 1625240v19 0018516-000023 Section 19.2 No Waiver of Strict Performance.............................................................24 ARTICLE 20 LIMITATION OF LIABILITY..............................................................................25 Section 20.1 Liability for Utility Failure, Etc................................................................25 Section 20.2 No Personal Liability.................................................................................25 ARTICLE 21 INDEMNIFICATION.............................................................................................25 ARTICLE 22 INSURANCE..........................................................................................................26 Section 22.1 General Requirements...............................................................................26 Section 22.2 Property Insurance.....................................................................................27 Section 22.3 Commercial General Liability Insurance..................................................27 Section 22.4 Additional Policy Provisions.....................................................................28 Section 22.5 Fidelity Bonds............................................................................................29 Section 22.6 Insurance Proceeds....................................................................................29 ARTICLE 23 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY................................29 Section 23.1 Initial Board Determination......................................................................29 Section23.2 Notice of Damage......................................................................................30 Section 23.3 Definitions: Damage, Repair, Emergency Work.....................................30 Section 23.4 Execution of Repairs.................................................................................30 Section 23.5 Damage Not Substantial; Assessment Under One Hundred Thousand Dollars ($100,000)...................................................................31 Section 23.6 Substantial Damage; Assessment Over One Hundred Thousand Dollars($100,000).....................................................................................31 Section 23.7 Effect of Decision Not to Repair........................................................... 31 ARTICLE 24 CONDEMNATION................................................................................................33 Section 24.1 Consequences of Condemnation; Notices ........................................ ,....... 33 Section24.2 Proceeds.....................................................................................................33 Section 24.3 Complete Taking.......................................................................................33 Section24.4 Partial Taking............................................................................................34 Section 24.5 Reconstruction and Repair........................................................................35 ARTICLE 25 EASEMENTS..........................................................................................................35 Section25.1 In General..................................................................................................35 Section25.2 Encroachments........................................................................................35 Section 25.3 Easement and Rights Reserved by Declarant ............................... Section 25.4 Utility Easements Granted by Declarant..................................................36 Section 25.5 Easement Within Units for Parking by Disabled Persons ........................36 Section 25.6 Easements Run With the Land..................................................................36 ARTICLE 26 PROCEDURES FOR SUBDIVIDING, COMBINING OR RELOCATING BOUNDARIES BETWEEN UNITS.....................................................36 Section 26.1 Submission of Proposal.............................................................................36 iv DWT 1625240v19 0018516-000023 I Section 26.2 Section 26.3 (a) Subdivision or Combination..........................................................36 (b) Relocation of Boundaries...............................................................36 (c) Leases..............................................................................................37 ApprovalsRequired...................................................................................37 (a) Subdivision.....................................................................................37 (b) Approval Required for Combination.............................................37 Procedure After Approval.........................................................................37 (a) Subdivision.....................................................................................37 (b) Relocation of Boundaries...............................................................37 ARTICLE 27 AMENDMENTS OF DECLARATION AND SURVEY MAP AND PLANS........................................................................................................................ Section 27.1 Amendments by the Association...................................................... Section 27.2 Approvals Required........................................................................... ARTICLE 28 ABANDONMENT OR TERMINATION OF CONDOMINIUM STATUS................................................................................................................ ARTICLE 29 SEVERABILITY ARTICLE 30 EFFECTIVE DATE ............................... ARTICLE 31 REFERENCE TO SURVEY MAP AND PLANS ... ARTICLE 32 ASSIGNMENT BY DECLARANT.. ....38 ....38 ....38 ....38 ....39 ....39 ....39 ............................................ 39 ARTICLE 33 PROTECTIONS FOR MORTGAGEES TO FACILITATE MORTGAGE LENDING..................................................................................................40 Section 33.1 Mortgagee Approvals................................................................................40 Section 33.2 Notice to Mortgagees................................................................................41 ARTICLE 34 CONVEYANCE OR ENCUMBRANCE OF COMMON ELEMENTS .............42 Attachments: Schedule A - Description of Land Schedule B - Unit Description, Level, Type, Area and Allocated Interests v DWT 1625240v 19 0018516-000023 ARTICLE 1 DEFINITIONS Section 1.1 Words Defined. For the purposes of this Declaration and any amendments hereto, the following definitions shall apply. (a) Affiliate of Declarant shall mean any person who controls, is controlled by, or is under common control with Declarant (as "control" is defined in the Condominium Statute). (b) Allocated Interests shall mean the undivided interests in the Common Elements, common expense liability, and votes in the Association allocated to each Unit. (c) Articles shall mean the Articles of Incorporation of the Association defined below. (d) Association shall mean the Association of Owners described in Article 13 of this Declaration, which shall be known as "Auburn Central Parking Garage Condominium Owners Association." (e) Board shall mean the Board of Directors of the Association. (f) Building shall mean the building described in Article 4. (g) Bylaws shall mean the Bylaws of the Association. (h) Common Elements shall mean the common elements described in Article 6. (i) Condominium shall mean the condominium created by this Declaration. 0) Condominium Statute shall mean The Washington Condominium Act, Laws of 1989, Chapter 43, presently codified in Chapter 64.34, RCW, and any amendments thereto. (k) Declarant shall mean Auburn Regional Medical Center, Inc., a Washington corporation, and any successor or assign who takes title to a majority of the Property for purposes of development or sale and who is designated by declaration in a recorded instrument executed by the immediately preceding Declarant. (1) Declaration shall mean this Condominium Declaration and Covenants, Conditions, Restrictions, and Reservations for Auburn Central Parking Garage Condominium, as it may from time to time be amended. DWT 1625240v19 0018516-000023 (m) Declarant Control shall mean the right of the Declarant or persons designated by the Declarant to appoint and remove officers and members of the Board pursuant to Article 15. (n) Disabled Person Parking Stall shall mean a parking stall and appurtenant loading area located within the Property and reserved, by pavement markings and signs, for holders of disabled parking permits and, if such permits are no longer issued by any governmental authority with jurisdiction over the Property, then for the parking of motor vehicles used by physically disabled or handicapped persons. (o) Eligible Mortgagee shall mean any holder of a First Mortgage who has filed with the Secretary of the Association a written request, including its name and address and the Unit number for the Unit subject to the Mortgage held by such First Mortgagee, that it be notified of any proposed action that requires consent of a specified percentage of Eligible Mortgagees. (p) First Mortgage and First Mortgagee shall mean, respectively, (i) a Mortgage on a Unit that has legal priority over all other Mortgages thereon, and (ii) the holder, guarantor or insurer of a First Mortgage. (q) Institutional Holder of a Mortgage shall mean a Mortgagee which is a bank or savings and loan association or established mortgage company, or other entity chartered under federal or state laws, any corporation in the business of owning or servicing real estate mortgages, an insurance company, or any federal or state agency. (r) Limited Common Elements shall mean those Common Elements described in Article 7. (s) Managing Agent shall mean the person designated by the Board under Section 16.4. (t) Mortgage shall mean a recorded mortgage or deed of trust that creates a lien against a Unit and shall also mean a real estate contract for the sale of a Unit. (u) Mortgagee shall mean the holder, insurer or guarantor of an encumbrance on a Unit created by a Mortgage and shall also mean the vendor of a real estate contract for the sale of a Unit. (v) Owner shall mean the Declarant or other legal owner of a Unit and shall also mean the vendee of a real estate contract for the sale of a Unit. (w) Person shall mean a natural person, corporation, partnership, association, trust, governmental subdivision or agency, or other legal entity. 2 DWT 1625240v 19 0018516-000023 (x) Property shall mean the land and the buildings and all improvements and structures now or hereafter placed on the land described in Schedule A. (y) RCW shall mean the Revised Code of Washington. (z) Reciprocal Easement Agreement shall mean the Reciprocal Easement Agreement dated November 21, 2008, between Auburn Regional Medical Center, Inc., a Washington corporation, and Auburn Medical Center Properties II, LLC, a Delaware limited liability company, as recorded in the real property records of King County, Washington, under Auditor's File No. 20090203001092, as amended by First Amendment to Reciprocal Easement Agreement dated August 13, 2009, as recorded in the real property records of King County, Washington, under Auditor's File No. 20090902000999, and as subsequently amended. (aa) Special Declarant Rights shall mean, individually and collectively, the rights reserved for the benefit of the Declarant to complete improvements described on the Survey Map and Plans, exercise "Development Rights" as that term is defined in Section 3.1, exercise "Declarant Control" as described in Article 15, and use easements as described in Section 25.3. (bb) Subsequent Phase, Subsequent Phases, and Subsequent Phase Amendment shall have the meanings as defined in Article 3. (cc) Survey Map and Plans shall mean the survey map and the plans recorded simultaneously with this Declaration and any amendments, corrections, and addenda thereto subsequently recorded. (dd) Transition Date is defined in Section 15. L (ee) Unit shall mean a garage unit composed of air space within or above the Building. The boundaries of a Unit are graphically depicted on the Survey Map and Plans and comprise the air space within the interior surfaces of the walls, floors, and ceilings of the Unit, together with all air space up to ten (10) feet in elevation above the unfinished surface of any roof deck parking area, together with all covered air space that would be enclosed if the exterior surfaces of the Building were extended to cover all openings therein, and the Unit includes the portions of the Building so described and the air space so encompassed, and all interior partitions and other fixtures and improvements so contained. Section 1.2 Form of Words. The singular form of words shall include the plural and the plural shall include the singular. Masculine, feminine, and neuter pronouns shall be used interchangeably. Section 1.3 Statutory Definitions. Some of the terms defined above are also defined in the Condominium Statute. The definitions in this Declaration are not intended to DWT 1625240v19 0018516-000023 limit or contradict the definitions in the Condominium Statute. If there is any inconsistency or conflict, the definition in the Condominium Statute will prevail. ARTICLE 2 SUBMISSION OF THE PROPERTY TO THE CONDOMINIUM STATUTE Declarant, being the sole owner of the Property, makes this Declaration for the purpose of submitting the Property to the Condominium form of use and ownership and to the provisions of the Condominium Statute. Declarant declares that the Property shall be held, used, conveyed, encumbered, leased, occupied, rented, and improved subject to the covenants, conditions, restrictions, reservations, and easements stated in this Declaration, all of which are in furtherance of the division of the Property into Units and Common Elements and shall be deemed to run with the land and be a burden and benefit to Declarant and all persons who own or acquire an interest in the Property or any part thereof, and their grantees, successors, heirs, executors, administrators, and assigns. Notwithstanding the foregoing, (a) Article 4 of 64.34 RCW, comprising RCW 64.34.400 through 64.34.465 inclusive, shall not apply to the Condominium, (b) Declarant shall have no obligation to prepare or to deliver to any Unit Owner or prospective Unit purchaser a public offering statement as described in RCW 64.34.400 et sea., (c) each Unit Owner and prospective Unit purchaser waives its right to the receipt of any public offering statement as described in RCW 64.34.400 et sea. and any resale certificate as described in RCW 64.34.425, (d) as between each Unit Owner and the Association on the one hand and Declarant on the other hand, each Unit Owner excludes and waives the implied warranties of quality described in RCW 64.34.445, and (e) as between each Unit Owner and the Association on the one hand and Declarant on the other hand, each Unit Owner shall acquire its Unit "AS IS" with all faults, known and unknown. The foregoing shall not limit the remedies and rights of Declarant, any Unit Owner, or the Association with respect to any person other than Declarant who shall furnish labor or materials in connection with the construction of the Condominium. In consideration of the foregoing, Declarant shall use commercially reasonable efforts to assign or delegate to each Unit Owner such rights, including without limitation breach of promise and express or implied warranty rights, relating to the quality of construction of improvements within the Condominium, as may be held by Declarant under any construction or other contract to which Declarant or any affiliate of Declarant is a party, to the extent that such assignment or delegation does not impair or reduce any such rights held by Declarant. ARTICLE 3 DEVELOPMENT RIGHTS; DESCRIPTION OF LAND Section 3.1 Reservation of Development Rights. Declarant reserves the rights (the "Development Rights") to add improvements to the Condominium, including without limitation one or more additional levels to the Building defined below, to create additional Units, Common Elements, and Limited Common Elements, and to subdivide any Unit owned 4 DWT 1625240v19 0018516-000023 by Declarant at any time and from time to time by an amendment to the Declaration executed by Declarant, provided, however, that any such subdivision shall not decrease the voting rights of other Unit Owners, and any addition of Units, Common Elements, or Limited Common Elements shall be located within the Property. Notwithstanding the foregoing, Declarant presently intends to establish this Condominium in a single phase comprising twenty-nine (29) Units, and this Declaration shall be effective immediately to establish a Condominium upon the Property described in Schedule A. The Development Rights shall terminate on the earlier of (a) the twentieth (20th) anniversary of the recording of this Declaration, or (b) the recording of a notice signed by Declarant that it no longer wishes to exercise the Development Rights. Section 3.2 Development in Subsequent Phases. Declarant may exercise Development Rights at any time and from time to time. Declarant is not required to exercise Development Rights at all, nor, if any Development Right is exercised with respect to any portion of the Property subject thereto, must Declarant exercise that Development Right with respect to all or any portion of the remainder of the Property. Each exercise of Development Rights by Declarant is described in this Declaration as a "Subsequent Phase." If Declarant elects to exercise Development Rights in a Subsequent Phase, it may do so by executing and recording, upon substantial completion of all improvements added in such Subsequent Phase, an amendment to this Declaration ("Subsequent Phase Amendment") and a new Survey Map and Plans or new certifications of the Survey Map and Plans as required by the Condominium Statute. The Subsequent Phase Amendment shall identify each Unit created; describe any Common Elements and Limited Common Elements created by the Subsequent Phase; and, except in a case of a subdivision or conversion of Units, reallocate the Allocated Interests among all Units, effective as of the date of recording of the Subsequent Phase Amendment. Allocated Interests shall be reallocated in accordance with the provisions of Article 9, below. Declarant may supplement Schedule B and amend this Declaration to describe Common Elements and Limited Common Elements included in a Subsequent Phase. Upon the recording of a Subsequent Phase Amendment, the previously existing Condominium shall be merged into and become a part of the Subsequent Phase as a single, unified Condominium. This Declaration and the Articles and Bylaws of the Association of this Condominium shall immediately become applicable to the improvements added in a Subsequent Phase. Section 3.3 Joint Use and Maintenance of Common Elements. When and if any Subsequent Phase is added to the Condominium or any Units are subdivided or converted to Common Elements in one or more Subsequent Phases, all of the Common Elements in the Subsequent Phase will be for the use and enjoyment of the entire Condominium and all of the Owners in the Condominium shall share in the subsequent expenses of maintaining, repairing and replacing the Common Elements as may be necessary. In the case of subdivision of a Unit, the Allocated Interests of the subdivided Unit shall be reallocated among the Units created by the subdivision in accordance with Article 9. In the case of conversion of a Unit entirely to Common Elements, such reallocation shall be in accordance with Article 9. 5 DWT 1625240v190018516-000023 Section 3.4 Liens. Any liens that arise in connection with Declarant's ownership or construction of any portion of the Property shall be removed prior to addition of such portion of the Property to the Condominium. All taxes and other assessments relating to such portion of the Property for any period prior to the addition of such portion of the Property shall be paid or otherwise provided for by Declarant. Section 3.5 Character of Improvements. Any improvements altered or added to the Condominium pursuant to a Subsequent Phase shall be generally consistent in design to the Building improvements existing at the time the Subsequent Phase improvements are made. Any claim that the improvements in a Subsequent Phase do not comply with this Section 3.5 must be made within sixty (60) days after the claimant has notice of the alleged noncompliance and in any event not later than sixty (60) days after the recording of the Subsequent Phase Amendment adding those improvements to the Condominium. The question of whether the improvements in a Subsequent Phase meet the requirements of this Section 3.5 will be referred to Declarant's architect and one other architect to be designated by Declarant, who shall have no association with this Condominium except to review for compliance with this Section 3.5 the improvements in the Subsequent Phase, or the plans for such improvements if they have not yet been built. If the two architects agree that the improvements planned for or built in the Subsequent Phase comply with the requirements of this Section 3.5, such determination shall be conclusive and binding upon all persons who have or thereafter acquire any interest in the Condominium. ARTICLE 4 DESCRIPTION OF BUILDINGS There is one (1) building (the "Building") in the Condominium, which is a four (4) level above -ground parking garage as of the effective date of this Declaration. The Building is constructed principally of concrete and steel with metal exterior materials. The Building is located as shown on the Survey Map and Plans. The Building initially comprises twenty-nine (29) garage Units, Common Elements, and Limited Common Elements described below. All Units enjoy Common Elements and Limited Common Elements described below. ARTICLE 5 UNIT NUMBERS, LOCATION, AND DESCRIPTION Section 5.1 Building Location. The Building is located as shown on the Survey Map and Plans. Section 5.2 Unit Location. The specific location of each Unit in the Condominium is identified on the Survey Map and Plans. Section 5.3 Unit Description. All of the Units are garage Units graphically depicted on the Survey Map"and Plans and are intended for and restricted to commercial and 6 DWT 1625240vl9 0018516-000023 municipally -owned or -operated parking and appurtenant uses. Initially, there shall be twenty-nine (29) Units: Units 1 through 29 inclusive. ARTICLE 6 COMMON ELEMENTS Section 6.1 Description. The Common Elements consist of all portions of the Condominium other than the Units, including the following: (a) The tracts of land described in Schedule A. and the easements, rights and appurtenances thereto, which have been included in this Condominium by this Declaration. (b) The roofs or roof decks, foundations, studding, joists, beams, supports, main walls (excluding nonbearing interior partitions of Units, if any), and all other structural parts of the Building, to the boundaries of the Units. (c) The pipes, wires, conduits, TV antennae, cable television and security systems, if any, and other fixtures and equipment for utilities that serve all Units. (d) The grounds, trees, gardens, landscaped areas, exterior fixtures, walkways, and driveways, to the boundaries of the Units. (e) Certain items that could ordinarily be considered Common Elements may, pursuant to the decision of all Owners and specification in the Bylaws or administrative rules, be designated as items to be furnished and maintained by Unit Owners at their individual expense, in good order, according to standards and requirements set by the Board by rule, regulation, or Bylaws. Section 6.2 Use; Maintenance. Each Owner shall have the right to use the Common Elements (except the Limited Common Elements reserved for Units not owned by such Owner) in common with all other Owners. The right to use the Common Elements shall extend not only to each Owner, but also to its agents, contractors, employees, guests, invitees, licensees, and tenants. The right to use the Common Elements, including the Limited Common Elements, shall be governed by the provisions of the Condominium Statute, this Declaration, the Bylaws, and the rules and regulations of the Association. The Owners shall not by act or omission seek to abandon, partition, subdivide, encumber, sell, or transfer the Common Elements and no other person shall have the right to have them partitioned or divided. The granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Elements by the Owners and occupants shall not be deemed a partition or division. A subdivision of a Limited Common Element as an incident of an authorized subdivision of a Unit pursuant to Article 26, or a subdivision, conversion, addition or withdrawal of Limited Common Elements or Common Elements pursuant to Article 7 will not be deemed a violation of this provision. DWT 1625240v 19 0018516-000023 The Association will be responsible for the operation, maintenance, repair and replacement of the Common Elements, which shall include without limitation relocating, replacing, and supplementing motor vehicle and pedestrian control and directional signs and pavement markings and maintaining, repairing, and replacing Building facilities, improvements, and systems. ARTICLE 7 LIMITED COMMON ELEMENTS Section 7.1 Description. The Limited Common Elements are Common Elements that are reserved for the exclusive use of the Unit or Units to which they are adjacent or allocated. They consist of those specified in the Condominium Statute as well as those designated on the Survey Map and Plans. The boundaries shall be as depicted on the Survey Map and Plans. Section 7.2 Appurtenant to Units. Conveyance of a Unit includes the exclusive rights to the use of the Limited Common Elements adjacent or allocated to that Unit. Section 7.3 Allocation, Reallocation of Limited Common Elements, Common Elements. Limited Common Elements may be reallocated between Units only with the approval of the Board and by an amendment to the Declaration executed by the Owners of the Units to which the Limited Common Element was and will be allocated, and the Mortgagees of such Units, and recorded. The Board shall approve any request of an Owner or Owners for reallocation within thirty (30) days, unless the proposed reallocation does not comply with this Declaration. The failure of the Board to act upon a request in compliance with this Declaration within such period shall be deemed approval thereof. Common Elements may be reallocated as Limited Common Elements and Limited Common Elements may be incorporated into an existing Unit with the approval all Owners. Such reallocation shall be reflected in amendments to this Declaration and to the Survey Map and Plans. ARTICLE 8 ACCESS Section 8.1 Access to Common Elements. Each Unit has direct access to Common Elements. Section 8.2 Access to Public Streets. The Units have direct motor vehicle access to a public street known as North Division Street, Auburn, Washington, under the Reciprocal Easement Agreement. Each Unit has an unrestricted right of ingress to and egress from such Unit, which right is perpetual and appurtenant to each Unit. Section 8.3 Access to Units. Each Owner, its agents, contractors, employees, guests, invitees, licensees, and tenants, shall have access to any Unit owned by such Owner to the extent that such Owner has granted a right of access, but shall have no right of access to 8 DWT 1625240v 19 0018516-000023 any Unit owned by any other Owner except to the extent that such other Owner has expressly granted a right of access and except as expressly provided otherwise in this Declaration. ARTICLE 9 PERCENTAGES OF ALLOCATED INTERESTS IN COMMON ELEMENTS The percentages of Allocated Interests of each Unit are set forth in Schedule B attached hereto. The Allocated Interest allocated to each Unit is calculated based on the ratio of the number of parking stalls within the Unit as of the date hereof to the total number of parking stalls within all Units as of the date hereof, as reflected in Schedule B as of the date hereof. The Allocated Interests allocated to each Unit shall not be reallocated unless the Owners of Units to which all of the votes in the Association are allocated approve, subject to, the rights of Declarant to reallocate Allocated Interests in connection with a Subsequent Phase Amendment under Section 3.2; provided, however, that the Allocated Interests allocated to any subdivided Unit may be reallocated among the resulting Units if the Owner or Owners of the resulting Units approve the same by an amendment to the Declaration executed by such Owner or Owners. ARTICLE 10 PARKING STALLS Section 10.1 Garage. The Building is a parking garage comprising three hundred six (306) parking stalls as of the date hereof. Section 10.2 Use of Parking Stalls. Parking stalls within the Building may be used only for the parking of operable passenger motor vehicles, trucks, trailers, and recreational vehicles as further regulated by the rules and regulations adopted by the Board from time to time. The use of such parking stalls for other purposes shall be prohibited. Section 10.3 Re -striping of Parking Stalls. Upon the request of an Owner, the Association may re -stripe parking stalls within an Owner's Unit, changing the dimensions, locations, number, and types of parking stalls within the Unit, provided that the Owner shall advance and reimburse the Association its actual costs incurred in connection with such re - striping, including without limitation its design and permit costs and costs relating to relocating, replacing, and supplementing motor vehicle and pedestrian control and directional signs and pavement markings, within thirty (30) days after written demand by the Association. The re -striping of parking stalls shall not amend or modify any Allocated Interest or Unit boundary. Section 10.4 Modification of Disabled Person Parking Stalls. Each Owner of a Unit that contains a Disabled Person Parking Stall that is in existence as of the effective date of this Declaration, including a portion of Unit 3 (three (3) unnumbered stalls), the entirety of Unit 9 (one (1) unnumbered stall), a portion of Unit 11 (one (1) unnumbered stall), and a portion of Unit 19 (one (1) unnumbered stall), as graphically depicted on the Survey Map and Plans, shall maintain and preserve the use of such Disabled Person Parking Stall for ingress 9 DWT 162524009 0018516-000023 and egress and the parking of motor vehicles by holders of disabled parking permits and shall not alter or modify such parking stall. Section 10.5 Additional Required Disabled Person Parking Stalls. If the Board determines that there is an insufficient number of Disabled Person Parking Stalls within the Property, based on the actual use of such stalls by physically disabled or handicapped persons, then the Board shall commission a parking study by a qualified traffic engineer to evaluate the use of Disabled Person Parking Stalls and to make the following findings: (a) the estimated peak average daily demand for Disabled Person Parking Stalls generated by each Unit Owner and its agents, contractors, employees, guests, invitees, licensees, and tenants, and (b) the estimated minimum adequate number of Disabled Person Parking Stalls within the Property that is sufficient to fully satisfy the peak average daily demand. The Board shall have the authority to require any Owner to create within any specific Unit or Units owned by the Owner, within ninety (90) days after the Board's written demand and at the Owner's sole cost and expense, the number of additional Disabled Person Parking Stalls that would satisfy the Owner's estimated peak average daily demand for Disabled Person Parking Stalls, based on the findings of the traffic engineer in the parking study, in which case each other Owner and its agents, contractors, employees, guests, invitees, licensees, and tenants shall have a non- exclusive license to use such stalls on a space available basis for the parking of motor vehicles by holders of disabled parking permits and, if such permits are no longer issued by any governmental authority with jurisdiction over the Property, then for the parking of motor vehicles used by physically disabled or handicapped persons, and such stalls shall not be subject to the easement created in Section 25.5. Section 10.6 Removal of Surplus Disabled Person Parking Stalls. If, at any time after the creation of additional required Disabled Person Parking Stalls under Section 10.5, the Board determines that there is a surplus number of Disabled Person Parking Stalls within the Property, based on the actual use of such stalls by physically disabled or handicapped persons, then the Board shall commission a parking study by a qualified traffic engineer to evaluate the use of Disabled Person Parking Stalls and to make the same findings required in the parking study described in Section 10.5. The Board shall have the authority to permit any Owner to remove from any specific Unit or Units owned by the Owner any surplus Disabled Person Parking Stalls that had been required by the Board under Section 10.5, based on the findings of the traffic engineer in the parking study. This section shall not apply to the six (6) Disabled Person Parking Stalls in existence as of the effective date of this Declaration. Section 10.7 Additional Optional Disabled Person Parking Stalls. Each Owner shall have the option at any time and from time to time to create within its Unit or Units one or more additional Disabled Person Parking Stalls, in which case each other Owner and its agents, contractors, employees, guests, invitees, licensees, and tenants shall have a non- exclusive license to use such stalls on a space available basis for the parking of motor vehicles by holders of disabled parking permits and, if such permits are no longer issued by any governmental authority with jurisdiction over the Property, then for the parking of motor vehicles used by physically disabled or handicapped persons, and such stalls shall not be 10 DWT 1625240v19 0018516-000023 subject to the easement created in Section 25.5. Each Owner may remove from its Unit or Units, at its option at any time, any additional optional Disabled Person Parking Stall created under this Section 10.7. ARTICLE 11 PERMITTED USES; MAINTENANCE OF UNITS; CONVEYANCES Section 11.1 Parking Garage Use Only. All of the Units are intended for and restricted to nonresidential use. The Building and the Units are intended for and restricted to use as a commercial or municipally -owned or —operated parking garage only, on an ownership, rental, lease, or license basis only, and for other reasonable activities normally incident to such use, and for the purposes of operating the Association and managing the Condominium as required. Section 11.2 Maintenance of Units. No structure or other improvement shall be located within any Unit, unless such structure or other improvement is constructed or installed by the Association, and the Association therefore shall maintain and repair all structures and other improvements located within any Unit. In addition, the Association shall keep all Units clean and free of refuse. Section 11.3 Exterior Appearance. In order to preserve a uniform exterior appearance of the Buildings, the Board shall provide for the painting of the Building and prescribe the type and color of paint. No Owner, except Declarant in the exercise of its Development Rights, may modify or decorate the Common Elements, the exterior of the Building, or other portions of any Unit visible from outside the Unit without the prior written consent of the Board or in accordance with rules or regulations of the Board. Section 11.4 Utilities. The Association, at its expense, shall be responsible for all electrical, domestic water, storm water sewer, and sanitary sewer utility service charges incurred in the operation of the Building, including but not limited to any hook-up charges there may be. Notwithstanding the foregoing, if any Owner clearly uses a greater share of any utility service than its Allocated Interest, then such Owner shall pay a reasonable share of the charges, to be determined by the Board in its discretion, based on the Board's estimate of actual usage. Such payment shall be made by each Owner concurrently with the monthly payment of assessments under Article 17 below. Section 11.5 Effect on Insurance. Nothing shall be done or kept in any Unit or Common Element that will increase the rate of insurance on the Property without the prior written consent of the Board. Nothing shall be done or kept in any Unit or Common Element that will result in the cancellation of insurance on any part of the Property, or would be in violation of any applicable laws or regulations. 11 DWT 1625240v190018516-000023 Section 11.6 Alteration of Common Elements. Nothing shall be altered or constructed in or removed from any Common Element except with the prior written consent of the Board. Section 11.7 Signs. No sign of any kind, including without limitation motor vehicle and pedestrian control and directional signs and pavement markings, shall be displayed to public view within or from any Unit or Common Element without the prior written approval of the Board and in accordance with the sign design standards and rules and regulations of the Board as to the design, location, and materials of such sign. Section 11.8 Offensive Activity. No noxious or offensive activity shall be carried on in any Unit or Common Elements, nor shall anything be done therein which may be or become an annoyance or nuisance to other Owners. Section 11.9 Abatement of Trespasses. Each Owner shall have the authority and right to remove and to cause the removal from such Owner's Unit any Person and personal property, including without limitation. any motor vehicle, truck, trailer, or recreational vehicle, to the extent that such Owner has not authorized the use of the Unit by such Person or the presence of such personal property, if (a) the Owner has first given notice to the Association or the Managing Agent, except in cases where Owner believes such presence poses an imminent threat of personal injury, death, or property damage, (b) the Association or Managing Agent is unavailable, or is unable or unwilling to immediately remove such Person or personal property, (c) the removal does not breach the peace, (d) the removal is not an assault on any Person, and (e) the removal complies with the requirements of all applicable laws, orders, ordinances, and regulations. Section 11.10 Conveyances; Notice Required; Right of First Offer. (a) Conveyances in General; Notice. The right of an Owner to sell, transfer, mortgage or otherwise convey its Unit shall not be subject to any right of approval, disapproval, or similar restriction by the Association or the Board, or anyone acting on their behalf, but shall be subject to the notice requirement described in this Section 11.10(a) and the right of first offer described in Section 11.10(b). An Owner intending to sell ("Selling Owner") one or more of its Units ("Offered Units"), at least thirty (30) days before closing, shall deliver a written notice to the Board specifying the Unit being sold; the names and addresses of the purchaser, closing agent, and title insurance company insuring the purchaser's interest; a statement whether the purchaser is UHS or an Affiliate of UHS (as such terms are defined below); and the estimated closing date. The Board shall have the right to notify the purchaser, title insurance company, and closing agent of the amount of unpaid assessments and charges outstanding against the Unit, whether or not such information is requested. The failure of any Selling Owner to deliver the notice described in this section shall not impair any rights of its purchaser as an Offeree Owner under Section 11.10(b). 12 DWT 1625240v19 0018516-000023 As used herein, the term "Affiliate of UHS" shall mean and include: ARMC; UHS; any successor of ARMC or UHS by consolidation, merger or reorganization; any affiliate, parent, or subsidiary of any such party; and any corporation, joint venture, partnership, limited liability company or real estate investment trust in which ARMC, UHS or any affiliate, parent or subsidiary thereof is a shareholder, partner, member or. unit holder. (b) Right of First Offer. This Section 11.1 ON is made for the benefit of only the City of Auburn, Auburn Regional Medical Center, Inc. ("ARMC"), Universal Health Services, Inc. ("UHS"), and any Affiliate of UHS that is an Owner (each, an "Offeree Owner," and collectively, the "Offeree Owners"), and shall not benefit any other Person. This Section 11.10(b) shall expire and terminate as to all Units within the Condominium on the date on which no Offeree Owner is a Unit Owner. Following the Declarant's initial conveyance of any Units to the City of Auburn, each Offeree Owner shall have a right of first offer to purchase any Offered Units (the "RFO"), subject to the terms and conditions set forth herein. In the event a Selling Owner desires to sell an Offered Unit to any party other than an Offeree Owner, then the Selling Owner shall so notify each of the Offeree Owners in writing, specifying the proposed sale price and all other material terms and conditions of the proposed sale, together with the name and address of any parties who have expressed a bona fide interest in purchasing the Offered Units. For a period of thirty (30) days after such notice is given to the Offeree Owners, or until such earlier date upon which any Offeree Owner shall elect to exercise its RFO, each Offeree Owner shall have the option to purchase the Offered Units on the terms contained in the notice by providing written notice of such election to the Selling Owner. To the extent that the Offeree Owners comprise ARMC, UHS, and/or an Affiliate of UHS, the Offeree Owners may elect from among them which Offeree Owner may exercise the RFO, but in the absence of such election it may be exercised by any of them. In the event any Offeree Owner elects to exercise such RFO, then the Selling Owner shall sell the Offered Units to the Offeree Owner on the terms described by the Selling Owner in its notice to the Offeree Owner, and closing shall take place at such time as may be mutually agreed, but in the absence of such agreement closing shall take place sixty (60) days after the notice of election to purchase has been given by the Offeree Owner to the Selling Owner. In the event any Offeree Owner does not exercise the RFO within the thirty (30) day time period specified above, then the Selling Owner shall be free for a period of one (1) year thereafter to sell the Offered Units to any Person on the same terms as those specified in the notice given by the Selling Owner to the Offeree Owners, or on terms less favorable to the purchaser; provided, however, that if the Selling Owner desires to sell the Offered Units on terms more favorable to the purchaser than those set forth in such notice, the Selling Owner shall first notify the Offeree Owners in writing, and each of the Offeree Owners shall have thirty (30) days from the date of receipt thereof, or until such earlier date upon which any Offeree Owner shall elect to purchase the Offered Units, in which to elect to purchase the Offered Units in accordance with the revised terms and conditions. In the event the Selling Owner desires to sell the Offered Units after such one (1) year time period expires, the procedures set forth above shall be repeated. 13 DWT 1625240v 19 0018516-000023 Notwithstanding the foregoing, the RFO shall not apply to (1) the sale by any Selling Owner of substantially all of its assets, including all of its Units, located within the City of Auburn, (2) any change in control of any Selling Owner, or (3) any foreclosure sale, trustee's sale, or deed in lieu of foreclosure of any Mortgage (a "Lender Sale"), but the RFO shall thereafter apply to any subsequent sale of Units exempted from the RFO under this sentence. ARTICLE 12 ENTRY WITHIN UNITS FOR PARKING FACILITY MANAGEMENT The Association and its agents or employees may enter any Unit and the Limited Common Elements adjacent or allocated thereto to effect cleaning, repairs, improvements, replacements, or maintenance of the Common Elements and Limited Common Elements (including without limitation relocating, replacing, and supplementing motor vehicle and pedestrian control and directional signs and pavement markings and maintaining, repairing, and replacing Building facilities, improvements, and systems) and to prevent damage to the Common Elements. Such entry shall include the right to make improvements and modifications that extend into any Unit if such improvements and modifications are reasonably desirable or necessary (a) for controlling and directing motor vehicles and pedestrians, (b) to comply with the requirements of any applicable law, order, ordinance, or regulation, or (c) to protect human health and safety, provided, however, that no improvement or modification may eliminate a parking stall within a Unit without the prior written consent of the Owner of the Unit that contains the parking stall. Such entry shall be made with as little inconvenience to the Owners and occupants as practicable. Any damage caused by such entry shall be repaired by the Association as a common expense unless the repairs or maintenance were necessitated by the acts or default of the Owner or occupant of the Unit entered, in which event the costs of the repairs or maintenance shall be specially assessed to that Unit. ARTICLE 13 ASSOCIATION OF UNIT OWNERS Section 13.1 Form of Association. No later than the date the first Unit in the Condominium is conveyed, the Association shall be organized as a nonprofit corporation under the laws of the state of Washington; provided that, from and after the formation of such corporation, the rights and duties of the members and of such corporation shall continue to be governed by the provisions of the Condominium Statute and of this Declaration. Section 13.2 Qualification for Membership. Each Owner (including Declarant) shall be a member of the Association. Declarant shall be considered an "Owner" as that term is used herein, and shall be a member of the Association and the voting representative with respect to any Unit owned by Declarant. Section 13.3 Transfer of Membership. The Association membership of each Owner (including Declarant) shall be appurtenant to the Unit giving rise to such membership, and shall not be transferred in any way except upon the transfer of the Owner's interest in the 14 DWT 1625240v19 0018516-000023 Unit and then only to the transferee. Any attempt to make a prohibited transfer shall be void. Any transfer of an Owner's interest in a Unit shall operate automatically to transfer the membership in the Association to the new Owner. Section 13.4 Voting. The voting power of the Owner of each Unit shall be equal to the Allocated Interest of the Unit as set forth on Schedule B. An Owner (including Declarant) of more than one Unit shall have the votes appertaining to all Units owned. No votes allocated to a Unit owned by the Association may be cast, and in determining the percentage of votes required to act on any matter, the votes allocated to the Association shall be disregarded. No lessee of any Unit shall have the right to use the voting power of the Owner of such Unit, unless such lessee has been designated as the voting representative of such Unit by the Owner pursuant to Section 13.5 below. Section 13.5 Voting Representative. An Owner may, by written notice to the Board, designate a voting representative for its Unit. The voting representative need not be an Owner. The designation may be revoked at any time by written notice to the Board from the Owner or by actual notice to the Board of the death or judicially declared incompetence of the Owner, except in cases in which the person designated is a Mortgagee of the Unit. This power of designation and revocation may be exercised by the guardian of an Owner, the attorney -in -fact for the Owner under a durable power of attorney, and the administrators or executors of an Owner's estate. If no designation has been made among multiple Owners of a Unit, or if a designation has been revoked and no new designation has been made, all votes allocated to each Unit may be cast by the one of multiple Owners present at the meeting, or if more than one of multiple Owners are present, according to the agreement of a majority in interest of such Owners in the Unit. Section 13.6 Joint Owner Disputes. The voting interest of each Unit must be cast as a single vote. Fractional votes shall not be allowed. If joint Owners are unable to agree how their vote shall be cast, they shall lose their right to vote on the matter in question. Section 13.7 Pledged Votes. If an Owner is in default under a First Mortgage on its Unit for sixty (60) consecutive days or more, the Mortgagee shall automatically be authorized to declare at any time thereafter that the Owner has pledged its vote on all issues to the Mortgagee during the continuance of the default. If the Board has been notified of any such pledge to a Mortgagee, and if the pledge is then effective, only the vote of the Mortgagee will be recognized on the issues that are subject to the pledge. Section 13.8 Annual and Special Meetings. There shall be an annual meeting of the members of the Association in the first quarter of each calendar year at such reasonable place and time as may be designated by no less than ten (10) or more than sixty (60) days written notice from the Board. Special meetings of the Association may be called at any time by the president, a majority of the Board, or Owners having twenty percent (20%) or more of the votes in the Association, for the purpose of considering matters which require the approval of all or some of the Owners, or for any other reasonable purpose. Any Institutional Holder of 15 DWT 1625240v19 0018516-000023 a First Mortgage may attend or designate a representative to attend the meetings of the Association. Section 13.9 Books and Records. The Board shall cause to be kept complete, detailed, and accurate books and records of the receipts and expenditures of the Association, and, at least annually, shall prepare, or cause to be prepared, a financial statement of the Association, in a form that complies with generally accepted accounting principles. Section 13.10 Audits. At the annual meeting, there shall be presented an audited financial statement of the Association, prepared by a certified or licensed public accountant who is not a member of the Board or an Owner. The above -described audit may be waived annually by the unanimous vote of all Owners. If the above -described audit is waived, any holder of a Mortgage may cause an audited financial statement of the Condominium to be prepared at such holder's expense and the Association shall cooperate fully with any such audit. The Board, or persons having thirty-five percent (35%) or more of the voting power of the Association, may require that an audit of the Association and management books be presented at any special meeting. An Owner, at its expense, may at any reasonable time conduct an audit of the books of the Board and the Association. Section 13.11 Articles and Bylaws. The Association will adopt Bylaws to supplement this Declaration and the Articles and to provide for the administration of the Association and the Property and for other purposes not inconsistent with the Condominium Statute or this Declaration. The Articles and Bylaws may be amended as provided therein and consistent with applicable law. However, no material amendment of the Articles or Bylaws may be made without the prior written approval of fifty-one percent (51 %) or more of the Eligible Mortgagees. Section 13.12 Inspection of Condominium Documents, Books, and Records. During normal business hours and at other reasonable times this Declaration, the Survey Map and Plans, the Articles, the Bylaws, and other rules governing the operation of the Condominium (collectively, the "Condominium Documents") shall be available for inspection free of charge by the Owners, First Mortgagees, prospective purchasers and their prospective First Mortgagees, and the agents or attorneys of any of them and, in addition, at such times the books and records, financial statements, authorizations for payment of expenditures, and all contracts, documents, papers, and other records of the Association shall be available for inspection by the Owners, Mortgagees, and the agents or attorneys of either of them. ARTICLE 14 NOTICES Section 14.1 Form and Delivery of Notice. All notices given under the provisions of this Declaration or the Bylaws or rules or regulations of the Association shall be in writing and may be delivered either personally or by mail. If delivery is made by mail, the notice shall be deemed to have been delivered on the third (3rd) day of regular mail delivery after it has been deposited in the United States mail, first class, postage prepaid, addressed to the 16 DWT 1625240v19 0018516-000023 person entitled to such notice at the most recent address known to the Board. Notice to the Owner of any Unit shall be sufficient if mailed to the Unit if no other mailing address has been given to the Board. Mailing addresses may be changed by notice in writing to the Board. Notices to the Board shall be given to the president or secretary of the Association. Section 14.2 Eligible Mortgagees. Until such time as any Eligible Mortgagee withdraws its request for notice or satisfies the Mortgage held, guaranteed or insured by such Eligible Mortgagee of record, the Board shall send to the Eligible Mortgagee a copy of all notices of any proposed actions which require the consent of a specified percentage of Eligible Mortgagees. All Institutional Holders of First Mortgages shall be entitled to notices under Article 23 (damage and repair of damage to property) and Article 24 (condemnation) irrespective of whether they have filed requests for notices. ARTICLE 15 PERIOD OF DECLARANT CONTROL Section 15.1 Transition Date. The "Transition Date" shall mean the date after which Declarant may no longer exercise Declarant Control (as defined in Section 15.2), which shall be ten (10) days after conveyance of any Unit that may be created to any Owner other than Declarant. Declarant may voluntarily surrender Declarant Control before the Transition Date, but require that until the Transition Date, specified actions of the Association or the Board, as described in a recorded instrument executed by Declarant, be approved by Declarant before they shall become effective. Section 15.2 Declarant's Powers Until Transition Date. Until the Transition Date, Declarant shall have the full power and authority to appoint and remove the Board and the officers of the Association ("Declarant Control") subject to the limitations set forth in this Article 15. After the Transition Date, the Board shall be elected by Owners and shall appoint and remove the officers of the Association. Declarant shall at all times comply with all applicable provisions of the Condominium Statute regarding contracts to which the Association is a party, including without limitation RCW 64.34.320, and the Association shall have all rights regarding the termination of contracts as are provided under RCW 64.34.320. Section 15.3 Transfer of Administration. Within thirty (30) days after the Transition Date the Owners shall elect a new Board of four (4) directors. The Board or the Managing Agent shall call a meeting of the Association to be held within thirty (30) days after the Transition Date for the purpose of electing the new Board. The new Board shall elect the officers of the Association and such members of the Board and officers shall take office upon election. Section 15.4 Transfer of Association Control. Within sixty (60) days after the Transition Date, Declarant shall deliver to the Association all property of the Owners and the Association held or controlled by Declarant including, but not limited to, the original or a photocopy of this Declaration and each amendment hereto; the certificate of incorporation and a copy or duplicate original of the Articles of the Association as filed with the Washington 17 DWT 1625240v19 0018516-000023 Secretary of State; the Bylaws and minute books, including all minutes and other books and records of the Association; any rules and regulations that have been adopted; any resignations of officers and members of the Board who are required to resign because Declarant is required to relinquish control of the Association; all financial records, including cancelled checks, bank statements and financial statements of the Association and source documents from the time of incorporation of the Association through the date of transfer of control to the Owners; all Association funds or the control thereof; all tangible personal property of the Association represented by Declarant to be the property of the Association or ostensibly the property of the Association and an inventory of such property; a copy of Declarant's plans and specifications utilized in the construction or remodeling of the Condominium and a certificate of the Declarant or a licensed architect or engineer that the plans and specifications represent, to the best of their knowledge and belief, the actual plans and specifications used by the Declarant in the construction or remodeling of the Condominium (except for alterations to a Unit done by an Owner other than Declarant); insurance policies or copies thereof for the Condominium and the Association; copies of any certificates of occupancy that may have been issued to the Condominium; any other permits issued by governmental bodies applicable to the Condominium; all written warranties still in effect for the Common Elements or any areas or facilities which the Association has the responsibility to maintain and repair and all documents related thereto; a roster of Owners and Eligible Mortgagees and their addresses and telephone numbers; and any leases or contracts to which the Association is a party. Upon the transfer of control to the Owners, the records of the Association shall be audited as of the date of transfer by an independent certified public accountant in accordance with generally accepted accounting principles unless the Owners other than Declarant by two-thirds (2/3) vote elect to waive the audit. ARTICLE 16 AUTHORITY OF THE BOARD Section 16.1 Adoption of Rules and Regulations. The Board is empowered to adopt, amend, and revoke on behalf of the Association detailed administrative rules and regulations necessary or convenient from time to time to ensure compliance with the general guidelines of this Declaration and to promote the comfortable use and enjoyment of the Condominium. The Declaration and the Bylaws and the rules and regulations of the Association shall be binding upon all Owners and occupants and all other persons claiming any interest in the Condominium. Section 16.2 Enforcement of Declaration, Etc. The Board shall have the power and the duty to enforce the provisions of this Declaration, the Articles, the Bylaws, and the rules and regulations of the Association, as the same may be lawfully amended from time to time, for the benefit of the Association. Section 16.3 Goods and Services. The Board shall acquire and pay for as common expenses of the Condominium all goods and services reasonably necessary or convenient for the efficient and orderly functioning of the Condominium. The goods and services shall 18 DWT 1625240v19 00185167000023 include (by way of illustration and not limitation) utility services for the Property; motor vehicle and pedestrian control and directional signs and pavement markings within the Property; re -striping parking stalls within Units upon the request and at the expense of the Unit Owner; policies of insurance (including directors and officers liability insurance) and fidelity bonds (if deemed advisable by the Board or required by the Condominium Statute); legal and accounting services; cleaning, maintenance, repair, landscaping, gardening, and general upkeep of the Common and Limited Common Elements; and all supplies, materials, fixtures, and equipment that are, in the Board's judgment, necessary or desirable for the operation of the Condominium and enjoyment of it by the Owners. The Board may hire such full-time or part-time employees as it considers necessary. Section 16.4 Managing Agent. The Board may, but shall not be required to, contract with an experienced professional Managing Agent to assist the Board in the management and operation of the Condominium and may delegate such of its powers and duties to the Managing Agent as it deems to be appropriate, except as limited herein. If a Managing Agent is employed by the Board, the prior written approval of at least fifty-one percent (51 %) of all Eligible Mortgagees and seventy-five percent (75%) of all Institutional Holders of First Mortgages shall be required before the Board may terminate professional management and assume self management. Only the Board can approve an annual budget or a supplemental budget, and only the Board can impose a special assessment on a Unit or authorize foreclosure of an assessment lien. The Managing Agent may (but is not required to) be a professional parking facility manager, and the contract with the Managing Agent may (but is not required to) take the form of a parking facility management agreement. Any contract with a Managing Agent, or any other contract providing for management or operational services, shall have a term no longer than one (1) year (but may be renewable by agreement of the parties for successive one- (1) year periods) and shall be terminable by the Board without payment of a termination fee, with or without cause, on thirty (30) days' written notice. Section 16.5 Protection of Property. The Board may spend such funds and take such action as it may from time to time deem necessary to preserve the Property, settle claims, or otherwise act in what it considers to be the best interests of the Condominium or the Association. Section 16.6 Imposition of Payments, Fees, Fines. The Board may impose and collect charges for late payment of assessments described in Article 18 and, after notice and opportunity to be heard by the Board or by such representative designated by the Board and in accordance with procedures provided by the Bylaws or rules and regulations adopted by the Board, levy reasonable fines in accordance with a previously established schedule thereof adopted by the Board and furnished to the Owners for violations of the Declaration, Bylaws, or rules and regulations of the Association. The Board may impose and collect reasonable charges for the preparation and recording of amendments to the Declaration and statements of unpaid assessments, and may assign its right to future income, including the right to receive common expense assessments. The Board may impose and collect any payments, fees or 19 DWT 1625240v190018516-000023 charges for the use, rental or operation of the Common Elements other than Limited Common Elements appurtenant to each Unit, and for services provided to Owners. ARTICLE 17 BUDGET AND ASSESSMENT FOR COMMON EXPENSES Section 17.1 Preparation of Budget. At least ninety (90) days prior to the beginning of each calendar year, the Board shall estimate the charges (including common expenses, and any special charges for particular Units) to be paid during such year and prepare a budget for creating, funding and maintaining reasonable repair, replacement and acquisition of Common Elements, taking into account any expected income and any surplus available from the prior year's operating fund (which surplus may be applied by the Association to current operating expenses as referenced in the budget). Within thirty (30) days after adoption of any proposed budget for the Condominium, the Board shall provide a summary thereof to all Owners and set a date which is not less than fourteen (14) nor more than sixty (60) days after mailing of the summary for a meeting of the Owners to consider ratification of the budget. The budget shall be ratified unless at such meeting the Owners of Units to which at least forty percent (40%) of the votes in the Association are allocated reject the budget, whether or not a quorum is present, provided, however, that as long as the City of Auburn is the owner of all of Units 4, 5, 6, 9, 11, 12, 13, 14, 19, 20, 21, 22, 27, and 29 of the Condominium (collectively, the "City Units"), the budget shall not be ratified if at such meeting the City of Auburn or its representative rejects the budget. Without limiting the generality of the foregoing but in furtherance thereof, the Board may create and maintain from regular monthly assessments a reserve fund for periodic maintenance and repair of Common Elements and for replacement of those Common Elements which can reasonably be expected to require replacement prior to the end of the useful life of the Building. The Board may calculate the contributions to said reserve fund so that there are sufficient funds therein to replace each Common Element covered by the fund at the end of the estimated useful life of each such Common Element. If the sum estimated and budgeted at any time proves inadequate for any reason (including nonpayment of any Owner's assessment), the Board may at any time levy a further assessment, which shall be assessed to the Owners in like proportions. Section 17.2 Monthly Assessments for Common Expenses and Accrual of Assessments. The sums required by the Association for common expenses as reflected by the budget and any supplemental budgets shall be divided into equal installments to be paid each month over the period of time covered by the budget or supplemental budget. The monthly installments shall be assessed to all of the Units and their respective Owners in proportion to the Units' Allocated Interests in the Common Elements. Notwithstanding the foregoing, the budget may include expenses related to Limited Common Elements which may be assessed against the Units to which such Limited Common Elements appertain equally and/or expenses benefiting certain Units may be assessed exclusively against those Units. The cost of utilities shall be assessed in proportion to usage. Assessments to pay a judgment against the Association perfected under RCW 4.64.020 may be made only against Units in the 20 DWT 1625240v 19 0018516-000023 Condominium at the time the judgment was entered in proportion to their Allocated Interests in common expense liability at the time the judgment was entered. Any common expenses caused by the misconduct of an Owner may be assessed exclusively against such Owner's Unit. Until the Association makes a common expense assessment, the Declarant shall pay all common expenses. The first assessment shall be made by the Association against all Units, no later than sixty (60) days after the first Unit is conveyed. Thereafter, assessments shall be made against all Units, based on a budget adopted by the Association. Section 17.3 Revised Assessments. The assessments shall be based upon the Allocated Interests stated in Schedule B as amended. Section 17.4 Special Assessments. If a special assessment becomes chargeable against a Unit under the authority of this Declaration or the Bylaws, the Board shall determine the amount of such special assessment and fix the month in which it is to be paid. The special assessment shall be added to the Unit's monthly installment of common expenses and be included in the assessment against the Unit. Section 17.5 Notice of Assessment. The Board shall notify each Owner in writing of the amount of the monthly assessments to be paid for such Owner's Unit and shall furnish copies of each budget on which the assessments are based to all Owners and, if so requested, to their respective Mortgagees. Section 17.6 Payment of Assessments. On or before the first day of each calendar month each Owner shall pay or cause to be paid to the treasurer of the Association the assessment against the Unit for that month. Any assessment not paid by the first day of the calendar month for which it is due shall be delinquent and subject to late charges, interest charges and collection procedures as provided in Article 18. Section 17.7 Proceeds Belong to Association. All assessments and other receipts received by the Association on behalf of the Condominium shall belong to the Association. Section 17.8 Failure to Assess. Any failure by the Board or the Association to make the budget and assessments hereunder before the expiration of any budget period for the ensuing period shall not be deemed a waiver or modification in any respect of the provisions of this Declaration, or a release of the Owners from the obligation to pay assessments during that or any subsequent time period, and the monthly assessments and amounts previously established shall continue until a new assessment is established. Section 17.9 Certificate of Unpaid Assessments. Upon the request of any Owner, Mortgagee, prospective purchaser, or prospective Mortgagee of a Unit, the Board shall furnish within fifteen (15) days after request therefor a certificate in recordable form stating the amount, if any, of unpaid assessments charged to the Unit. The certificate shall be binding upon the Board, the Association and every Owner as to the amount of such indebtedness on the date of the certificate unless and to the extent known by the recipient to be false. 21 DWT 1625240v19 0018516-000023 Section 17.10 Separate Accounts. The Board shall require that the Association maintain separate accounts for current operations, reserves, and a special separate reserve account for payment of insurance. No funds of the Association shall be commingled with the funds of any other association or with the funds of the Managing Agent or any other person responsible for the custody of such funds. Each month the Board shall first deposit to the insurance reserve account that portion of the common expense assessment necessary to pay at least one -twelfth (1/12) of the total cost of all of the insurance policies provided regarding the Condominium and such insurance reserve account shall be held separately and inviolate until utilized for payment of insurance premiums. Thereafter the remainder of the assessments and charges collected may be utilized for payment of other expenses or deposited or credited to other accounts. Any action affecting reserve funds, including issuance of checks, shall require the signature of at least two (2) persons who are officers or directors of the Association. All such assessments and charges shall be collected and held in trust for, and administered and expended for the benefit of, the Owners. ARTICLE 18 LIEN AND COLLECTION OF ASSESSMENTS Section 18.1 Assessments Are a Lien; Priority. All unpaid sums assessed by the Association for the share of the common expenses chargeable to any Unit and any sums specially assessed to any Unit under the authority of this Declaration or the Bylaws (together with interest, fines, late charges, costs, and attorneys' fees in the event of delinquency) shall constitute a continuing lien on the Unit and all its appurtenances from the time the assessment is due. The lien for such unpaid assessments shall be prior to all other liens and encumbrances except (a) liens and encumbrances recorded before the recording of the Declaration, (b) a Mortgage on the Unit recorded before the date on which the assessment sought to be enforced became delinquent, and (c) liens for real property taxes and other governmental assessments or charges against the Unit. Except as provided above (and subject to the provisions of Section 18.2 below), a Mortgagee that obtains the right of possession of a Unit through a foreclosure or deed of trust sale, or by taking a deed in lieu of foreclosure or sale, or a purchaser at a foreclosure sale, shall take the Unit free of any claims for assessments or installments thereof that became due prior to such right of possession, but will be liable for the common expenses and assessments that become due thereafter. The Unit's past due share of common expenses or assessments shall become new common expenses chargeable to all of the Owners, including the Mortgagee or foreclosure sale purchaser and their successors and assigns, in proportion to their respective Allocated Interests in the Common Elements; however, the Owner shall continue to be personally liable for such past accrued assessments, as provided in Section 18.3. For the purpose of this Section, the terms "Mortgage" and "Mortgagee" shall not mean any real estate contract or vendor or designee or assignee of a vendor under a real estate contract. Section 18.2 Lien May Be Foreclosed. Each Unit in the Condominium is hereby granted to Chicago Title Insurance Company, as trustee, in trust with power of sale, to secure the obligation of each Unit (and the Owner thereof) to pay assessments against such Unit 22 DWT 1625240v19 0018516-000023 made by the Association. The Units are not used principally for agricultural or farming purposes. The power of sale granted hereby is operative in case of any default in the obligation of an Owner to pay any assessment made against such Owner's Unit. The Association's lien for delinquent assessments is not subject to the provisions of Chapter 6.13 RCW. The lien may be enforced by the Managing Agent or the Board, acting on behalf of the Association, judicially in the manner set forth in Chapter 61.12 RCW or nonjudicially in the manner set forth in Chapter 61.24 RCW for nonjudicial foreclosures of deeds of trust. Unless the Association elects to foreclose its lien nonjudicially pursuant to Chapter 61.24 RCW, the lien shall also be prior to any Mortgage described in Section 18.1(b) to the extent of assessments for common expenses, excluding any amounts for capital improvements, based on the periodic budget adopted by the Association, which would have become due during the six (6) months immediately preceding the date of a sheriffs sale in an action for judicial foreclosure by either the Association or a Mortgagee, the date of a trustee's sale in a nonjudicial foreclosure by a Mortgagee, or the date of recording of the notice of forfeiture in a proceeding by the vendor under a real estate contract. The priority of the Association's lien against any Unit encumbered by a Mortgage held by a Mortgagee which has given to the Secretary of the Association a written request for notice of delinquent assessments shall be reduced by up to three (3) months if and to the extent the Association's lien priority includes delinquencies which relate to a period after such holder has given such notice and before the Association gives.the holder a written notice of the delinquency. The Managing Agent or the Board, acting on behalf of the Association, shall have the power to bid on at the foreclosure sale, acquire, hold, lease, mortgage and convey the Unit. The lien for delinquent assessments and the personal liability for payment of the assessments shall be extinguished unless proceedings to enforce the lien are instituted within three (3) years after the amount of assessment sought to be recovered becomes due. Section 18.3 Assessments Are Personal Obligations. In addition to constituting a lien on the Unit and all its appurtenances, all sums assessed by the Association chargeable to any Unit (together with interest, costs and attorneys' fees in the event of delinquency) shall be the joint and several personal obligations of the Unit Owner when the assessment is made and such Owner's successors in title who assume such obligations, for all assessments due up to the time of each Owner's conveyance of the Unit, without prejudice to any such successor's ability to recover from the Owner the amounts paid by such successor therefore. Suit to recover a personal judgment for any delinquent assessments shall be maintainable without foreclosing or waiving the lien securing them. Section 18.4 Receiver. The Association may appoint a receiver to collect from the lessee of any Unit for which Association assessments are delinquent the rent for the Unit as and when due, regardless of whether and when the Association has commenced foreclosure of its assessment lien against the Unit. If the rental is not paid, the receiver may obtain possession of the Unit, rent the Unit or permit its rental to others, and apply the rents first to the cost of the receivership and attorneys' fees thereof, then to applicable charges, then to costs, fees and charges of the Association's assessment lien foreclosure action (if any), and 23 DWT 1625240090018516-000023 then to the payment of the delinquent assessments. Exercise by the Association of the foregoing rights shall not affect the priority of any preexisting liens on the Unit. Section 18.5 Late Charges and Interest on Delinquent Assessments. The Board may from time to time establish late charges and a rate of interest to be charged on assessments that may thereafter become delinquent. In the absence of another established nonusurious rate, delinquent assessments shall bear interest at the rate of twelve percent (12%) per annum. Section 18.6 Recovery of Attorneys' Fees and Costs. In any action to collect delinquent assessments, including appeal thereof and enforcement of a judgment, the prevailing party shall be entitled to recover as a part of its judgment a reasonable sum for attorneys' fees and expenses reasonably incurred in connection with the action, in addition to taxable costs permitted by law. Section 18.7 Remedies Cumulative. The remedies provided herein are cumulative and the Board may pursue them, and any other remedies which may be available under the law although not expressed herein, either concurrently or in any order. Section 18.8 Security Deposit. An Owner who has been delinquent in paying its monthly assessments for three (3) of the five (5) preceding months may be required by the Board, from time to time, to make and maintain a security deposit not in excess of three (3) months' estimated monthly assessments, which shall be collected and shall be subject to penalties for nonpayment as are other assessments. The deposit shall be held by the Association in a separate fund, credited to such Owner, and may be resorted to by the Association at any time when such Owner is ten (10) days or more delinquent in paying its assessments. ARTICLE 19 COMPLIANCE WITH DECLARATION Section 19.1 Enforcement. Each Owner and the Association shall comply strictly with the provisions of this Declaration and with the Bylaws and administrative rules and regulations passed hereunder, as the same may be lawfully amended from time to time, and with all decisions adopted pursuant to this Declaration and the Bylaws and administrative rules and regulations. Failure to comply shall be grounds for an action to recover sums due for damages, or injunctive relief, or both maintainable by the Board acting through its officers on behalf of the Owners, or by any aggrieved Owner on its own. Section 19.2 No Waiver of Strict Performance. The failure of the Board (or the Managing Agent) in any instance to insist upon the strict compliance with this Declaration or the Bylaws or rules and regulations of the Association, or to exercise any right contained in such documents or to serve any notice or to institute any action, shall not be construed as a waiver or a relinquishment for the future of any term covenant, condition, or restriction. The receipt by the Board of payment of an assessment from an Owner, with knowledge of a 24 DWT 1625240v 19 0018516-000023 breach by the Owner, shall not be a waiver of the breach. No waiver by the Board of any requirement shall be effective unless expressed in writing and signed for the Board. ARTICLE 20 LIMITATION OF LIABILITY Section 20.1 Liability for Utility Failure, Etc. Except to the extent covered by insurance obtained by the Board, none of the Association, the Board, the Managing Agent or the Declarant shall be liable for: the failure of any utility or other service to be obtained and paid for by the Board; any injury or damage to person or property caused by the elements, or resulting from electricity, water, rain, dust, or sand which may lead or flow from outside or from any parts of the Buildings, or from any of their pipes, drains, conduits, appliances, or equipment, or from any other place; or for inconvenience or discomfort resulting from any action taken to comply with any law, ordinance, or orders of a governmental authority. No diminution or abatement of common expense assessments shall be claimed or allowed for any such utility or service failure, or for such injury or damage, or for such inconvenience or discomfort. Section 20.2 No Personal Liability. Except as otherwise provided in the Condominium Statute, so long as a Board member, Association committee member, Association officer, Declarant or the Managing Agent has acted in good faith, with ordinary and reasonable care (and in the case of Board officers and members appointed by Declarant, with the care required of a fiduciary of the Owners), without willful or intentional misconduct, upon the basis of such information as is then possessed by such person, no such person shall be personally liable to any Owner, or to any other person, including the Association, for any damage, loss, or prejudice suffered or claimed on account of any act, omission, error, or negligence of such person; provided that this section shall not apply where the consequences of such act, omission, error, or negligence is covered by insurance obtained by the Board. ARTICLE 21 INDEMNIFICATION Each Board member, Association committee member and Association officer, and Declarant and the Managing Agent shall be indemnified by the Association against all expenses and liabilities, including attorneys' fees, reasonably incurred by or imposed in connection with any proceeding to which he or she may be a party, or in which he or she may become involved, by reason of holding or having held the position of Board member, Association committee member, Association officer or Managing Agent, or any settlement thereof, whether or not he or she holds such position at the time such expenses or liabilities are incurred, except to the extent such expenses and liabilities are covered by any type of insurance and except in such cases wherein such person is adjudged guilty of willful misfeasance in the performance of his or her duties; provided that, in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and 25 DWT 1625240v190018516-000023 reimbursement as being for the best interests of the Association; further provided that Declarant shall not be entitled to indemnification against any expenses or liabilities for which it is liable under the Condominium Statute; and further provided that nothing contained in this Article 21 shall be deemed to obligate the Association to indemnify any Owner who is or has been a Board member or officer of the Association with respect to any duties or obligations assumed or liabilities incurred by he or she under or by virtue of the Declaration as an Owner of a Unit covered thereby. ARTICLE 22 INSURANCE Section 22.1 General Requirements. The Board shall cause the Association to purchase and maintain at all times as a common expense a policy or policies and bonds necessary to provide property insurance; commercial general liability insurance; worker's compensation insurance to the extent required by applicable laws; insurance against loss of personal property of the Association by fire, theft, or other causes with such deductible provisions as the Board deems advisable; insurance, if available, for the protection of the Association's directors, officers, and representatives from personal liability in the management of the Association's affairs; such insurance as the Board deems advisable for a person engaged in the business of owning and operating a commercial parking garage; and such other insurance and fidelity bonds as the Board deems advisable or as may be required by the Condominium Statute. The Board shall review at least annually the adequacy of the Association's insurance coverage. All insurance shall be obtained from an insurance carrier rated Triple A (and rated in Class XI or better financial condition) by Best's Insurance Reports or equivalent rating service, and licensed to do business in the State of Washington. Except as provided otherwise in the following sentence, and subject to the requirements of the Condominium Statute (including without limitation RCW 64.34.352), the provisions of this Article 22 shall be subject to the authority of the Board to modify the Association's insurance coverage in its discretion upon the approval of a majority of the members of the Board. Notwithstanding any other provisions herein, the Association shall continuously maintain in effect property insurance, including earthquake coverage (if available at commercially reasonable rates), and liability insurance and a fidelity bond (if a fidelity bond is required by any applicable law, ordinance, or regulation) that meet the insurance and fidelity bond requirements for commercial condominium projects established by any applicable law, ordinance, or regulation. All such insurance policies and fidelity bonds shall provide that coverage may not be cancelled, modified or allowed to lapse (including cancellation for nonpayment of premium) without compliance with all applicable provisions of Chapter 48.18 RCW pertaining to cancellation or nonrenewal of insurance and at least thirty (30) days' prior written notice to any and all Mortgagees, designated servicers of Mortgagees, and all insurers that issue certificates or memoranda to. the Association and, upon written request, to any Owner or Mortgagee. Promptly upon the conveyance of a Unit, the new Owner shall notify the Association of the date of the conveyance and the Owner's name and address. The Association shall notify each insurance company that has issued an insurance policy to the Association for the benefit of the Owners under this'Article 22 of the name and address of the 26 DWT 1625240v19 0018516-000023 new Owner and request that the new Owner be made a named insured under such policy. No claims may be made under any insurance policy held by the Association except upon the approval of the Board. Section 22.2 Property Insurance. The property insurance shall, at the minimum, consist of a standard form of fire insurance policy with extended coverage or "all risk" endorsements in an amount equal to the full replacement value (i.e., one hundred percent (100%) of current replacement cost exclusive of land, foundation, excavation, and other items normally excluded from coverage) of the Common Elements, and all fixtures and equipment belonging to the Association with an "Agreed Amount Endorsement" or its equivalent, if available, or an "Inflation Guard Endorsement." In addition to protection against loss or damage by fire and other hazards covered by the standard extended coverage endorsement, the policy shall provide protection against loss or damage from sprinkler leakage, debris removal, cost of demolition, vandalism, malicious mischief, windstorm, water damage, and such other risks as are customarily covered in policies for commercial condominium projects of similar construction and use in the greater Seattle metropolitan area. The policy or policies shall provide for separate protection for each Unit to the full insurance replacement value thereof (limited as above provided), and a separate loss payable endorsement in favor of the holder of the Mortgage that creates a lien against such Unit; provided, however, that each Owner shall be responsible for property damages to its Unit up to the deductible amounts of the Association's property insurance policy. The insurance proceeds may be made payable to any trustee with which the Association may enter into an insurable trust agreement, or any successor trustee, who shall have exclusive authority to negotiate losses under the policies. The policies shall provide that, notwithstanding any provisions thereof which give the carrier the right to elect to restore damage in lieu of making a cash settlement, such option shall not be exercisable without the prior written approval of the Association (or any insurance trustee) or when in conflict with the provisions of any insurance trust agreement to which the Association may be a party, or any requirement of law. The policy or policies shall have deductibles of no greater than the lesser of Ten Thousand Dollars ($10,000), one percent (1 %) of the coverage amount, or a deductible amount deemed reasonable by the Board. Section 22.3 Commercial General Liability Insurance. The commercial general policy of public liability insurance shall insure the Board, the Association, the Owners, Declarant, and the Managing Agent, and cover all of the Common Elements, with a "Severability of Interest Endorsement" or equivalent coverage that would preclude the insurer from denying the claim of an Owner because of the negligent acts of the Association or of another Owner, and shall include protection against water damage liability, liability for non - owned and hired automobiles, liability for property of others, and such other risks as are customarily covered with respect to commercial condominium projects of similar construction and use in the greater Seattle metropolitan area. The limits of liability shall be determined by the Board but shall not be less than Two Million Dollars ($2,000,000) covering all claims for personal injury and/or property damage arising out of a single occurrence and Three Million Dollars ($3,000,000) general aggregate. 27 DWT 1625240v19 0018516-000023 Section 22.4 Additional Policy Provisions. The Board shall exercise its reasonable best efforts to obtain insurance policies pursuant to Sections 22.2 and 22.3 containing the following provisions and limitations:. (a) The named insured shall be the Association, as trustee for each of the Owners in accordance with their respective Allocated Interests in the Common Elements. The insurance proceeds may be made payable to any trustee with which the Association may enter into an insurance trust agreement, or any successor trustee, who shall have exclusive authority to negotiate losses under the policies. (b) Such policies shall not provide for contribution by or assessment against Mortgagees or become a lien on the Property superior to the lien of a First Mortgage. (c) In no event shall the insurance coverage be brought into contribution with insurance purchased by the Owners of the Units or their Mortgagees. (d) Coverage shall not be prejudiced by (i) any act or neglect of the Owners when such act or neglect is not within the control of the Association, or (ii) failure of the Association to comply with any warranty or condition with regard to any portion of the Property over which the Association has no control. (e) A waiver of subrogation by the insurer as to any and all claims against the Association, any Owner and their respective agents, employees, household members, or tenants, and of any defenses based upon co-insurance or upon invalidity arising from the acts of the insured. (f) A standard mortgagee clause which shall provide: (i) that any reference to a mortgagee in the policy shall mean and include all holders of Mortgages that create liens against any Units or Unit leaseholds or subleaseholds in their respective order of preference, whether or not named therein; (ii) that such insurance as to the interest of any holder of a Mortgage shall not be invalidated by any act or neglect of the Board or Owners or any persons under any of them; (iii) any provision invalidating such mortgagee clause by reason of the failure of any holder of a Mortgage to notify the insurer of any hazardous use or vacancy, any requirement that such holder pay any premium thereon, and any contribution clause; and (iv) that, without affecting any protection afforded by such mortgagee clause, any proceeds payable under such policy shall be payable to the Board or the insurance trustee. 28 DWT 1625240v19 0018516-000023 Section 22.5 Fidelity Bonds. The fidelity bonds, if deemed advisable by the Board or required by the Condominium Statute or any other applicable law, ordinance, or regulation, shall afford coverage to protect against dishonest acts on the part of officers, directors, trustees, and employees of the Association or the Managing Agent and all other persons who handle or are responsible for handling funds of the Association and be in an amount equal to at least fifty-five percent (55%) or more of the estimated annual operating expenses of the Condominium, including reserves. All such fidelity bonds shall name the Association as an obligee and contain waivers of any defense based upon the exclusion of persons who serve without compensation from any definition of "employee" or similar expression. Section 22.6 Insurance Proceeds. Insurance proceeds for damage or destruction to any part of the Property shall be paid to the Board on behalf of the Association which shall segregate such proceeds from any other funds of the Association for use and payment as provided for in Article 23. The Association acting through the Board shall have the authority to settle and compromise any claim under insurance obtained by the Association, each Owner hereby appoints the Association as its attorney in fact for this purpose and the insurer may accept the release and discharge of liability made by the Board on behalf of the named insured under the policy. ARTICLE 23 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY Section 23.1 Initial Board Determination. In the event of damage to any part of the Property, the Board shall promptly, and in all events within thirty (30) days after the date of damage, make the following determinations with respect thereto, employing such advice as the Board deems advisable: (a) The nature and extent of the damage, together with an inventory of the Property directly affected thereby. (b) A reasonably reliable estimate of the cost to repair the damage, which estimate shall, if reasonably practicable, be based upon two (2) or more firm bids obtained from responsible contractors. (c) The expected insurance proceeds, if any, to be available from insurance covering the loss based on the amount paid or initially offered by the insurer. (d) The amount, if any, by which the estimated cost of repair exceeds the expected insurance proceeds and the amount of the assessments that would have to be made against each Unit if the excess cost were to be paid as a maintenance expense and specially assessed against all the Units in proportion to their Allocated Interests in the Common Elements. (e) The Board's recommendation whether the damage should be repaired. 29 DWT 1625240v 19 0018516-000023 Section 23.2 Notice of Damage. The Board shall promptly, and in all events within thirty (30) days after the date of damage, provide each Owner and each Institutional Holder of a First Mortgage with a written notice describing the damage and summarizing the initial Board determinations made under Section 23.1. If the Board fails to do so within said thirty (30) days, any Owner or Institutional Holder of a First Mortgage may make the determinations required under Section 23.1 and give the notice required under this Section 23.2. Section 23.3 Definitions: Damage, Repair, Emergency Work. As used in this Article 23: (a) Damage shall mean all kinds of damage, whether of slight degree or total destruction. (b) Repair shall mean restoring the improvements to substantially the condition they were in before they were damaged, with each Unit and the Common Elements having substantially the same vertical and horizontal boundaries as before. Modifications to conform to applicable governmental rules and regulations or available means of construction may be made. (c) Emergency Work shall mean work that the Board deems reasonably necessary to avoid further damage or substantial diminution in value to the improvements and to protect the Owners from liability from the condition of the site. Section 23.4 Execution of Repairs. (a) The Board shall promptly repair the damage and use the available insurance proceeds therefor unless (a) the Condominium is terminated, (b) the repair or replacement would be illegal under any state or local health or safety statute or ordinance, or (c) before the repairs (other than Emergency Work) are begun the Owners decide in accordance with this Article not to repair. If the cost of repair exceeds the available insurance proceeds the Board shall impose a special assessment against all Units in proportion to their Allocated Interests in the Common Elements in an amount sufficient to pay the excess costs. (b) The Board shall have the authority to employ architects and engineers, advertise for bids, let contracts to contractors and others, and take such other action as is reasonably necessary to make the repairs. Contracts for the repair work shall be awarded when the Board, by means of insurance proceeds and sufficient assessments, has provided for paying the cost. The Board may authorize the insurance carrier to make the repairs if the Board is satisfied that the work will be done satisfactorily, and if such authorization does not contravene any insurance trust agreement or requirement of law. (c) The Board may enter into a written agreement with a reputable financial institution or trust or escrow company that the institution or company shall act as an insurance trustee to adjust and settle any claim for property loss in excess of One Hundred 30 DWT 1625240v 19 0018516-000023 Thousand Dollars ($100,000) or for the institution or company to collect the insurance proceeds and cant' out the provisions of this Article 23. Section 23.5 Damage Not Substantial; Assessment Under One Hundred Thousand Dollars ($100,000). If the estimated assessment determined under subsection 23.1(d) does not exceed One Hundred Thousand Dollars ($100,000) for any one Unit, the damage will be deemed not to be substantial and the provisions of this Section 23.5 shall apply. (a) Either the Board or the requisite number of Owners, within fifteen (15) days after the notice required under Section 23.2 has been given, may but shall not be required to, call a special Owners' meeting in accordance with Section 13.8 and the Bylaws to decide whether to repair the damage. (b) Except for Emergency Work, no repairs shall be commenced until after the fifteen (15) day period and until after the conclusion of the special meeting if such a special meeting is called within the fifteen (15) days. (c) A concurring vote of all Owners and eighty percent (80%) or more of the Institutional Holders of First Mortgages will be required to elect not to repair the damage. The failure of the Board and the Owners within the fifteen (15) day period to call a special meeting shall be deemed a decision to repair the damage. Section 23.6 Substantial Damage; Assessment Over One Hundred Thousand Dollars ($100,000). If the estimated assessment determined under subsection 23.1(d) is One Hundred Thousand Dollars ($100,000) or more for any one Unit, the damage will be deemed substantial and the provisions of this Section 23.6 shall apply. (a) The Board shall promptly, and in all events within thirty (30) days after the date of damage, call a special Owners' meeting to consider repairing the damage. If the Board fails to do so within thirty (30) days, then notwithstanding the provisions of Section 13.8 and the Bylaws, any Owner -or Institutional Holder of a First Mortgage may call and conduct the meeting. (b) Except for Emergency Work, no repairs shall be commenced until the conclusion of the special Owners' meeting. (c) A concurring vote of all Owners and eighty percent (80%) or more of the Institutional Holders of First Mortgages will be required to elect not to repair the damage. Failure of the Board, the Owners, and the Institutional Holders of First Mortgages to conduct the special meeting provided for under subsection 23.6(a) within ninety (90) days after the date of damage shall be deemed a unanimous decision to repair the damage. Section 23.7 Effect of Decision Not to Repair. Prior to and notwithstanding a decision under either subsections 23.5(a) or 23.6(a) not to repair the damage, the Board may 31 DWT 1625240v19 0018516-000023 nevertheless expend so much of the insurance proceeds and common funds as the Board deems reasonably necessary for Emergency Work (which Emergency Work may include but is not necessarily limited to removal of the damaged improvements and clearing, filling, and grading the land), and the remaining funds, if any, and the Property shall thereafter be held and distributed as follows: (a) If the requisite numbers of Owners and Institutional Holders of First Mortgagees vote to terminate the Condominium: (i) The Property shall be owned in common by the Owners and shall no longer be subject to this Declaration or to condominium ownership; (ii) Owner's respective undivided interest in the Property shall be the same as the proportion of the fair market value of that Owner's Unit and Allocated Interest in the Common Elements (as determined by one (1) or more appraisers selected by the Association) to the fair market value of all Units and Common Elements immediately before the casualty. If any Unit or any Common Element is destroyed to the extent that an appraisal of the fair market value thereof before destruction cannot be made, each Owner's respective undivided interest in the Property shall be the same as each Owner's Allocated Interest in the Common Elements immediately before the termination; (iii) Mortgages and other liens affecting any of the Units shall be deemed transferred in accordance with the existing priorities to the Owners' respective undivided interests in the Property; and (iv) The Property shall be subject to an action for partition at the suit of any Owner, in which event the net proceeds of sale, together with the net proceeds of the insurance on the Property, if any, shall be considered as one (1) fund, which fund shall be divided into separate shares, one (1) for each Owner in a percentage equal to the percentage of undivided interest owned by such Owner in the Property. After first paying out of the respective share of each Owner, to the extent sufficient for the purpose, all Mortgages and other liens on such Owner's interest, the balance remaining in each share shall be distributed. to the Owner. Notwithstanding the foregoing, the right of partition shall be suspended if an agreement ("Sales Agreement") to sell the Property is provided for in an agreement ("Termination Agreement") to terminate the Condominium entered into by Owners of Units to which at least eighty percent (80%) of the votes in the Association are allocated. The suspension of the right to partition shall continue unless and until the first to occur of the following: (A) no binding obligation to sell exists three (3) months after the recording of the Termination Agreement, (B) the Sales Agreement is terminated, or (C) one (1) year after the Termination Agreement is recorded. 32 DWT 1625240v19 0018516-000023 (b) If the requisite numbers of Owners and Institutional Holders of First Mortgagees do not vote to terminate the Condominium: (i) Insurance proceeds attributable to the damaged Common Elements shall be used to restore the damaged area to a condition compatible with the remainder of the Condominium; (ii) Insurance proceeds attributable to any Units and Limited Common Elements which are not rebuilt shall be distributed to the Owners of such Units and the Owners of the Units to which such Limited Common Elements were allocated, or to the holders of any Mortgages or other liens affecting such Units, as their interests may appear•, and (iii) The remainder of the insurance proceeds shall be distributed to all of the Owners and holders of Mortgagees or other liens, as their interests may appear, in proportion to the Owners' respective Allocated Interests in the Common Elements. If the Owners vote not to rebuild any Unit, that Unit's Allocated Interest shall be automatically reallocated upon such vote as if the Unit had been condemned as provided in Article 24. ARTICLE 24 CONDEMNATION Section 24.1 Consequences of Condemnation; Notices. If any Unit or portion thereof or the Common Elements or any portion thereof is made the subject matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired by a condemning authority (collectively, a "Taking") notice of the Taking shall promptly be given to each Owner and to each Institutional Holder of a First Mortgage and the provisions of this Article 24 shall apply. The Association, acting through the Board, shall represent the Owners in any proceedings, negotiations, settlements or agreements in connection with any Taking, and each Owner shall appoint the Association its attorney -in -fact for this purpose. Section 24.2 Proceeds. All compensation, damages, or other proceeds of the Taking (collectively, the "Award") shall be payable to the Association, as trustee for the Owners and Mortgagees as their interests may appear. Section 24.3 Complete Taking. If the entire Property is taken the Condominium ownership shall terminate effective as of the acquisition of the Property by the condemning authority. The Award shall be apportioned among the Owners in proportion to their respective Allocated Interests in the Common Elements; provided that, if a standard different from the value of the Property as a whole is employed to measure the Award in the Taking, then in determining such shares the same standard shall be employed to the extent it is relevant and applicable. On the basis of the foregoing principle, the Board shall as soon as practicable determine the share of the Award to which each Owner is entitled. Each Owner's share shall be applied first to the payment of all Mortgages and liens on the Owner's interest 33 DWT 1625240v19 0018516-000023 in accordance with the existing priorities and the balance of each share, if any, shall be distributed to the Owner. Section 24.4 Partial Taking. If less than the entire Property is taken the Condominium ownership shall not terminate. The Allocated Interests of all Units taken shall be reallocated to the remaining Units in proportion to the respective Allocated Interests of those Units before the Taking and the Association shall promptly prepare, execute and record an amendment to this Declaration reflecting the reallocations. Any remnant of a Unit remaining after part of the Unit is taken, which remnant may not practically or lawfully be used for any purpose permitted by this Declaration, shall become a Common Element effective as of the acquisition of the Property taken by the condemning authority. If part of a Unit is taken and the remaining part may be practically and lawfully used for a purpose permitted by this declaration, that Unit's Allocated Interest shall be reduced in proportion to the reduction in size of the Unit or on any other basis specified herein and the portion of the Allocated Interest divested from the partially taken Unit shall be automatically reallocated to such Unit and the remaining Units in proportion to the respective Allocated Interests of those units before the Taking, with any partially taken Unit sharing in the reallocation on the basis of its reduced Allocated Interest. Each Owner shall be entitled to a share of the Award determined in the following manner: (a) As soon as practicable the Board shall, reasonably and in good faith, allocate the Award among compensation for Property taken, severance damages, or other proceeds. (b) Any amount allocated to taking of or injury to the Common Elements shall be apportioned among Owners in proportion to their respective Allocated Interests in the Common Elements. (c) Any amount allocated to the taking or partial taking of or injury to a particular Unit, Limited Common Elements appurtenant thereto and/or improvements made by the Owner therein shall be apportioned to the Unit. (d) Any amount allocated to severance damages shall be apportioned to the Units that were not taken. (e) Any amount allocated to consequential damages and any other takings or injuries shall be apportioned as the Board determines to be equitable in the circumstances. (f) If an allocation of the Award has already been established in negotiation, judicial decree, or otherwise, then in apportioning the Award the Board shall employ that allocation to the extent it is relevant and applicable. (g) Distribution of apportioned proceeds shall be made to the Owners and their respective Mortgagees in the manner provided in Section 24.3. 34 DWT 1625240v19 0018516-000023 Section 24.5 Reconstruction and Repair. Any reconstruction and repair necessitated by a Taking shall be governed by the procedures specified in Article 23 for repair of damage; provided that the Board may retain and apply such portion of each Owner's share of the Award as is necessary to discharge the Owner's liability for any special assessment arising from the operation of Article 23. ARTICLE 25 EASEMENTS Section 25.1 In General. Each Unit has an easement in and through each other Unit and the Common Elements for all support elements and utility, wiring, heat, and service elements and for reasonable access thereto, as required to effectuate and continue proper operation of the Condominium. In addition, each Unit and all the Common Elements are specifically subject to easements as required for the electrical wiring and plumbing for each Unit. The specific mention or reservation of any easement in this Declaration does not limit or negate the general easement for Common Elements reserved by law. Section 25.2 Encroachments. All Common Elements are hereby declared to have an easement over all adjoining Units for the purpose of accommodating any present or future encroachment as a result of engineering errors, construction, reconstruction, repairs, settlement, shifting, or movement of any portion of the Property, or any other similar cause, and any encroachment due to Building overhang or projection. There shall be valid easements for the maintenance of the encroaching Common Elements so long as such encroachments shall exist. The encroachments described in this Section 25.2 shall not be construed to be encumbrances affecting the marketability of title to any Unit. Section 25.3 Easement and Rights Reserved by Declarant. Declarant hereby reserves nonexclusive easements over, across and through the Common Elements as reasonably necessary for the purpose of discharging Declarant's obligations hereunder and under the Condominium Statute and for exercising any Special Declarant Rights for the benefit of itself and its successors and assigns. Declarant also reserves nonexclusive easements for the benefit of itself and its successors and assigns and for the benefit of the Association, for ingress and egress over the Common Elements and for access to and over the Common Elements and to tie into and utilize any water, sanitary sewer, storm sewer, electricity, gas, telephone, cable communications and other utility lines now or hereafter established in the Condominium. The easements reserved hereby shall not be exercised in a manner that will overload or materially impair the use and enjoyment of the roadways, pathways and utilities by the Owners. The easements reserved shall be exercised for the purpose of discharging Declarant's and the Association's obligations hereunder and under the Condominium Statute and for exercising any Special Declarant Rights. Declarant also reserves an easement over, across and through the Common Elements for the purpose of completing the construction of any Units or other improvements. The Association shall have the right to grant additional permits, licenses and easements over the Common Elements for utilities, roads and other purposes necessary for the proper operation of the Condominium. 35 DWT 1625240v19 0018516-000023 Section 25.4 Utility Easements Granted by Declarant. Declarant grants to each company or municipality providing utility services to the Condominium or to the Owners an easement for the installation of all utilities serving the Condominium or the Owners, including, without limitation, such utilities services as water, sanitary sewer, storm sewer, electricity, gas, cable communications and telephone, and an easement for reasonable access over the roadways and Common Elements to the utility service facilities. Section 25.5 Easement Within Units for Parking by Disabled Persons. Declarant, hereby reserves an exclusive easement within each Disabled Person Parking Stall that is in existence as of the effective date of this Declaration, which shall include a portion of Unit 3 (three (3) unnumbered stalls), the entirety of Unit 9 (one (1) unnumbered stall), a portion of Unit 11 (one (1) unnumbered stall), and a portion of Unit 19 (one (1) unnumbered stall), as graphically depicted on the Survey Map and Plans, for ingress and egress and the parking of motor vehicles by holders of disabled parking permits and, if such permits are no longer issued by any governmental authority with jurisdiction over the Property, then for the parking of motor vehicles used by physically disabled or handicapped persons, for the benefit of all Unit Owners, their respective agents, contractors, employees, guests, invitees, licensees, and tenants. The easement created in this section may be amended or terminated by the amendment of this section according to the procedures set forth in Article 27 for amendments to this Declaration. Section 25.6 Easements Run With the Land. The easements, covenants, restrictions, benefits and obligations hereunder shall be perpetual and run with the land. ARTICLE 26 PROCEDURES FOR SUBDIVIDING, COMBINING OR RELOCATING BOUNDARIES BETWEEN UNITS Section 26.1 Submission of Proposal. No Unit or Units or Common Elements shall be subdivided and/or combined either by agreement or legal proceedings, except as provided in this Article and Article 3. (a) Subdivision or Combination. An Owner may propose subdividing and/or combining of a Unit, Units, or Common Elements by submitting the proposal in writing to the Board. If the proposal contemplates the subdivision of a Unit, the proposal must also be given to all First Mortgagees. The proposal must include complete plans and specifications for accomplishing the subdivision or combination (including plans and specifications for removal or alteration) and proposed amendments of this Declaration the Survey Map and Plans, if required by the Condominium Statute. (b) Relocation of Boundaries. The Owners of adjoining Units may apply to the Association for relocation of the boundary between their Units. If the Owners have specified a reallocation between their Units of their Allocated Interests, the application must state the proposed reallocations. 36 DWT 1625240v19 0018516-000023 (c) Leases. This article shall not restrict the right of any Owner to lease, license, or sublease any portion of the Unit, including without limitation any parking stall. Section 26.2 Approvals Required. (a) Subdivision. A proposal that contemplates subdivision of a Unit will be accepted only if approved in writing by all Owners and Mortgagees/Institutional Holders of First Mortgages of the Unit or Units to be subdivided and the Owners of Units to which at least sixty percent (60%) of the votes in the Association are allocated, provided, however, that as long as the City of Auburn is the owner of all of the City Units, the subdivision must be approved also by the City of Auburn. (b) Approval Required for Combination. A proposal that contemplates only combination of Units without subdividing any of them will be accepted if approved in writing by the Owners of Units to which at least sixty percent (60%) of the votes in the Association are allocated and all Owners and Mortgagees/Institutional Holders of First Mortgages of the Units to be combined, provided, however, that as long as the City of Auburn is the owner of all of the City Units, the combination must be approved also by the City of Auburn. Section 26.3 Procedure After Approval. An Owner's proposal for combination, subdivision or relocation of boundaries shall be approved by the Board within thirty (30) days after any required Owner and/or Mortgagee approval is obtained, unless the proposed alteration does not comply with the Condominium Statute or this Declaration or impairs the structural integrity or mechanical or electrical systems of the Condominium or any proposed reallocation of Allocated Interests is unreasonable. Upon approval of the proposal, the Owner making it may proceed according to the proposed plans and specifications; provided that the Board may in its discretion require that the Board administer the work or provisions for the protection of other Units or Common Elements or that reasonable deadlines for completion of the work be inserted in the contracts for the work. (a) Subdivision. In the event of a subdivision, the Association shall prepare, execute and record (and the Owner of the subdivided Unit shall execute) an amendment to this Declaration and the Survey Map and Plans, subdividing the Unit, assigning identifying numbers to the Units created, and reallocating the Allocated Interests formerly allocated to the subdivided Unit to the new Units. (b) Relocation of Boundaries. In the event of a relocation of Unit boundaries, the Association shall prepare an amendment to the Declaration that identifies the Units involved and states the reallocations of Allocated Interests. The amendment must be executed by the Owners of the Units. involved, contain words of conveyance between them and be recorded in the county in which the Condominium is located. The Association shall obtain and record Survey Maps or Plans necessary to show the altered boundaries between adjoining Units and their dimensions and identifying numbers. 37 DWT 1625240v19 0018516-000023 ARTICLE 27 AMENDMENTS OF DECLARATION AND SURVEY MAP AND PLANS Section 27.1 Amendments by the Association. Any Owner may propose amendments to this Declaration or the Survey Map and Plans to the Board. A majority of the members of the Board may cause a proposed amendment to be submitted to the members of the Association for their consideration. If an amendment is proposed by Owners to which twenty percent (20%) or more of the votes in the Association are allocated, then, irrespective of whether the Board concurs in the proposed amendment, it shall be submitted to the members of the Association for their consideration at their next regular or special meeting. Notice of a meeting at which an amendment is to be considered shall include the text of the proposed amendment. Amendments may be adopted at a meeting of the Association or by written consent of the requisite number of persons entitled to vote, after notice has been given to all persons (including Mortgagees) entitled to receive notice of a meeting of the Association. Section 27.2 Approvals Required. Except for amendments that may be executed by the Declarant under Article 3 (exercise of the Development Rights) or by the Association under Section 7.3 (reallocation of Limited Common Elements), Article 24 (condemnation), or Article 26 (relocation of boundaries or subdivision of Units), or by certain Owners if and to the extent provided under Section 7.3 (reallocation of Limited Common Elements), Article 9 (Allocated Interests), or Article 26 (relocation of boundaries or subdivision of Units), all other amendments to this Declaration shall be adopted if approved by the Owners of Units to which at least sixty percent (60%) of the votes in the Association are allocated at an annual, regular, or special meeting, provided, however, that as long as the City of Auburn is the owner of all of the City Units, all such other amendments to this Declaration shall require the approval of the City of Auburn. In addition to the above and other provisions of this Declaration and of the Condominium Statute: (a) no amendment may restrict, eliminate, or otherwise modify any Special Declarant Right without the prior written approval of Declarant and any Mortgagee with a security interest in the Special Declarant Right or the property subject thereto, excluding Mortgagees of Units owned by persons other than Declarant, and (b) the prior written approval of at least seventy-five percent (75%) of all Institutional Holders of First Mortgages will be required for any material amendment of this Declaration or the Bylaws, including, but not limited to, any amendment that would change the Allocated Interest of any Unit in the Common Elements. Once an amendment has been adopted by the Association it shall become effective when the amendment, executed and certified on behalf of the Association by any designated officer or the president of the Association, has been recorded in the county in which the Condominium is located. ARTICLE 28 ABANDONMENT OR TERMINATION OF CONDOMINIUM STATUS Except as provided in Articles 23 and 24 the condominium status of the Property shall not be abandoned or terminated by reason of any act or omission by the Owners or the 38 DWT 1625240v 19 0018516-000023 Association except with the consent of the Owners of Units to which at least eighty percent (80%) of the votes in the Association are allocated, by an instrument to that effect specifying a date after which such instrument will be ineffective unless recorded prior thereto and containing a description of the manner in which creditors of the Association will be paid or provided for and setting forth the terms of any sale of all or a portion of the Property to be sold following termination, which instrument must be duly recorded and then only if at least seventy-five percent (75%) of all Institutional Holders of Mortgages approve in writing, provided, however, that as long as the City of Auburn is the owner of all of the City Units, the condominium status of the Property shall not be abandoned or terminated without the consent of the City of Auburn. Proceeds of sale of any portion of the Property shall be distributed to, and title to any portion of the Property not sold upon termination shall vest in, the Owners, as described in the Condominium Statute. ARTICLE 29 SEVERABILITY The provisions of this Declaration shall be independent and severable, and the unenforceability of any one provision shall not affect the enforceability of any other provision, if the remainder complies with the Condominium Statute or, as covenants, affect the common plan. ARTICLE 30 EFFECTIVE DATE This Declaration shall take effect upon recording. ARTICLE 31 REFERENCE TO SURVEY MAP AND PLANS The Survey Map and Plans were filed with the Recorder of King County, Washington, simultaneously with the recording of this Declaration under File No. q,010020 a in Volume .2.fo,S-of Condominiums, pages 07 / through p-2*. ARTICLE 32 ASSIGNMENT BY DECLARANT Declarant reserves the right to assign, transfer, sell, lease or rent all or a portion of the Property then owned by it and reserves the right to assign all or any of its rights, duties and obligations created under this Declaration; however, such assignment shall not diminish Declarant's duties and obligations, including without limitation all contractual or warranty obligations imposed on the Declarant by the Condominium Statute. 39 DWT 1625240A 9 0018516-000023 ARTICLE 33 PROTECTIONS FOR MORTGAGEES TO FACILITATE MORTGAGE LENDING Section 33.1 Mortgagee Approvals. Notwithstanding any other provision of any of the Condominium Documents, to the extent required or permitted by law, the prior written approval of fifty-one percent (51 %) or more of the Eligible Mortgagees, with each Eligible Mortgagee being counted as having the same percentage of votes in the Association allowed to it as if allocated to the Unit encumbered by its Mortgage, shall be required for any of the following, and without such approval, no person, the Board or the Association shall by either act or omission seek nor can they legally effect: (a) Any change of a material nature to any of the Condominium Documents, including but not limited to any change respecting: (i) decreasing Owner rights; (ii) foreclosing assessment liens or the priority of such liens; (iii) increasing assessments for maintenance, repair and replacement of the Common Elements; (iv) performance or fidelity bonds; (v) change of Allocated Interests in or rights to use of any of the Common Elements; (vi) increasing assessments for maintenance and repair of the Condominium; (vii) expansion or contraction of the Condominium or the addition, annexation or withdrawal of property to or from the Condominium; (viii) relocation of the boundaries of any Unit; (ix) conversion of Units into Common Elements or of Common Elements into Units; (x) imposition of any restrictions on the right of an Owner to sell, transfer or otherwise convey its Unit; (xi) a decision by the Association to establish self -management when professional management had been required previously by the Condominium Documents or any Eligible Mortgagee; 40 DWT 1625240v19 0018516-000023 (xii) replacement or repair of the Condominium (after a hazard, damage or partial condemnation) in any manner other than that specified in the Condominium Documents; (xiii) any action to terminate the legal status of the Condominium after substantial destruction or condemnation occurs; and (xiv) any provisions that expressly benefit Mortgagees; provided, however, that any abandonment or termination of the Condominium for reasons other than substantial destruction or condemnation of the Condominium shall require the consent and approval of at least sixty-seven (67%) of the Eligible Mortgagees and at least seventy-five (75%) of all Institutional Holders of First Mortgages, as set forth in Article 28. Any Eligible Mortgagee who fails to submit a response to any written proposal for an amendment within thirty (30) days after it receives proper notice of the proposal, provided the notice was delivered by certified or registered mail, return receipt requested, shall be deemed to have approved and consented to the amendment in question. (b) Notwithstanding anything to the contrary in this Declaration, no requirement for Mortgagee approval shall operate to (1) deny or delegate control over the general administration of affairs of the Association by the Owners or the Board, or (2) prevent the Association or the Board from commencing, intervening or settling any litigation or proceeding, or receiving and distributing any insurance proceeds except pursuant to Article 23. Section 33.2 Notice to Mortgagees. Upon a written request sent by any Mortgagee to the Association stating such Mortgagee's name and address and the Unit number or address of the Unit subject to the Mortgage held, guaranteed or insured by such Mortgagee, such Mortgagee shall be entitled to timely written notice without charge of: (a) Any condemnation or casualty loss that affects either a material portion of the Condominium or the Unit subject to the Mortgage held, insured or guaranteed by such Mortgagee; (b) Any default in payment of assessments or charges owed by the Owner of a Unit subject to the Mortgage held, insured or guaranteed by such Mortgagee, where the delinquency has not been cured in sixty (60) days; (c) Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; (d) Any of the proposed changes referred to in Section 33.1 of this Declaration. 41 DWT 1625240v19 0018516-M23 ARTICLE 34 CONVEYANCE OR ENCUMBRANCE OF COMMON ELEMENTS Portions of the Common Elements not necessary for the habitability of a Unit may be conveyed or subjected to a security interest by the Association if approved by the Owners of Units to which at least eighty percent (80%) of the votes in the Association are allocated (including eighty percent (80%) of the votes allocated to Units not owned by Declarant or an Affiliate of Declarant), but in order to convey any Limited Common Elements or subject them to a security interest, all of the Owners of the Units to which such Limited Common Elements are allocated must consent in writing; provided, however, that as long as the City of Auburn is the owner of all of the City Units, any conveyance or encumbrance of any portion of the Common Elements shall require the approval of the City of Auburn. Proceeds of any such sale or financing shall be an asset of the Association. Any agreement to convey Common Elements or subject them to a security interest must be evidenced by the execution of an agreement or ratification thereof in the same manner as a deed by the requisite number of Owners. The agreement must specify a date after which the agreement will be void unless recorded before that date. The agreement and all ratifications thereof must be recorded in every county in which a portion of the Condominium is located. The Association, on behalf of the Owners, may contract to convey Common Elements or subject them to a security interest but the contract shall not be enforceable against the Association until approved as required under this Article 34. Thereafter, the Association shall have all powers necessary and appropriate to effect the conveyance or encumbrance, including the power to execute deeds or other instruments. No conveyance or encumbrance of Common Elements pursuant to this Article 34 shall deprive any Unit of its rights of access and support, nor affect the priority or validity of any preexisting encumbrances. Executed as of the '21 sr day of January, 2010. DECLARANT: AUBURN REGIONAL MEDICAL CENTER, INC., A WASHINGTON CORPORATION By Print Name: Fi Its I la Ppl-ua&y— STATE OF &SU10A � ) ss. COUNTY OF MQO ,( ) On this Gt^ day of J�U , 2010, before me, a Notary Public in and for the State of personally appeared 42 DWT 1625240v19 0018516-000023 6wt h1 to me known to be the person who signed as the of Auburn Regional Medical Center, Inc., a Washington corporation, the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned and on oath stated that he was authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. V N TARY PUBLIC in and for the State of V15 residing at My appointment a fires / -3 Print Name W- hwbl- COMMONWEALTH OF PENNSYLVANIA Notarial Seal Caitlin M. Vemot, Notary Public Upper Merion Twp., Montgomery County My Commission Expires Nov. 3, 2012 Member, Pennsylvania Association of Notaries 43 DWT 1625240v19 0018516-000023 SCHEDULE A AUBURN CENTRAL PARKING GARAGE CONDOMINIUM DESCRIPTION OF LAND PARCEL B, CITY OF AUBURN BOUNDARY LINE ADJUSTMENT NUMBER BLA-08- 0006, RECORDED UNDER RECORDING NUMBER 20080911900016, IN KING COUNTY, WASHINGTON; TOGETHER WITH AND SUBJECT TO PERMANENT EASEMENTS AS DESCRIBED IN THAT CERTAIN RECIPROCAL EASEMENT AGREEMENT, AS RECORDED IN THE REAL PROPERTY RECORDS OF KING COUNTY, WASHINGTON, UNDER RECORDING NO. 20090203001092, AS AMENDED BY THAT CERTAIN FIRST AMENDMENT TO RECIPROCAL EASEMENT AGREEMENT RECORDED IN THE REAL PROPERTY RECORDS OF KING COUNTY, WASHINGTON, UNDER RECORDING NO. 20090902000999, WITHIN PARCEL A OF SAID BOUNDARY LINE ADJUSTMENT; SUBJECT TO AND TOGETHER WITH OTHER MATTERS OF RECORD. A-1 DWT 1625240v 19 0018516-000023 SCHEDULE AUBURN CENTRAL PARKING GARAGE CONDOMINIUM UNIT .DESCRIPTION, UNIT LEVEL, UNIT TYPE, APPROXIMATE AREA, AND ALLOCATED INTERESTS IN COMMON ELEMENTS, COMMON EXPENSES, AND VOTES IN ASSOCIATION Number of Assigned Covered Number of Number of Total Number Approximate Allocated Interest in Parking Parking Stalls Uncovered Covered ADA- of Parking Area Common Elements, Stall (Except ADA Parking Compliant Stalls* (in square feet) Common Expenses, Unit Numbers* Stalls) Stalls* Parking Stalls*' and Votes in No. Level Association C, 1F Pi 12: AVIN 4 Pi 16-31 16 0 0 16 2,595 5.2288% 5 Pi 32-52 21 0 0 21 3,443 6.8628% 6 P1 53-61 9 0 0 9 1,643 2.9412% 7 V'P2 6211 7-r 7 "n' -W, 7, B-1 DWr 1625240Y19 0018516-M23 Number of Assigned Covered Number of Number of Total Number Approximate Allocated Interest in Parking Parking Stalls Uncovered Covered ADA- of Parking Area Common Elements, Stall (Except ADA Parking Compliant Stalls* (in square feet) Common Expenses, Unit Numbers* Stalls) * Stalls* Parking Stalls*t and Votes in No. Level Association 8 P2 Z-98 21.: 0 0 21 3,430 ? x1 6'Fo: _ x 9 P2 None 0 0 1 1 198 .3268% i,- A qx R,Y 1� t — MIX `� i < lx�s• 7Q".,�'r' .! ,:, .. 'fir 11 P2 103-105 3 0 1 4 613 1.3072% 12 P2 106-121 16 0 0 16 2,595 5.2288% 13 P2 122-142 21 0 0 21 3,240 6.8628% 14 P2 143-145 3 0 0 3 515 .9804°fo A A �` x�..7l�¢I�I �s t.'S`i r� � .,,_,ec..., � t ::��a '�._ O O �.4� � �'�� � � °�Mg4r.A4�f0 ;,Nc i� .,-.. �, e.< ., r��•tli'f5 ; .�..,.. ... r. R' iiFP: ..: '. ,. ....a ..3:....� <...... ', .i.�.. - .•... �. ^ :X i fs�f..t�� # �4 i H;:xY,' 4..: I69$91.: `�1 3,430 0 11 l; ,., (�! ' < �H S.:e `t*i,R R Pix iC. ix R <• ,.. - %o-t - r 19 P3 194-197 4 0 1 5 732 1.634% 20 P3 198-213 6 10 0 16 2,595 5.2288% DWT 1625240v19 0018516-000023 Number of Assigned Covered Number of Number of Total Number Approximate Allocated Interest in Parking Parking Stalls Uncovered Covered ADA- of Parking Area Common Elements, Stall (Except ADA Parking Compilimt stalls* (in square feet) Common Expenses, Unit Numbers* Stang) • stalls* Parking Staffs** and Votes In No. Level Association 21 P3 214-234 1 8 13 0 21 3,240 6.8627% 22 P3 P3 235-239 0 5 0 5 822 1.6339% P3, ?244m," �7'- 0 5, Z -24 P4 -4245-260­ 2�S. Ott 25 P4 -.161491 26: P4 vj!-282206�.,� 0 XM P 27 P4 291 0 1 0 1 124 .3267/o ZVI 28 P4 292,206 61 P TM, 29 P4 297-302 0 6 0 6 1,119 1.9607% Totals 209 91 6 306 49,310 100.0000% Notes: * As of the effective date of the Declaration. * * There are no parking stalls numbered 10 or 11 within the Condominium as of the effective date of the Declaration. B-3 DWr 1625240v 19 0018516-000023 ' ADA-compliant parking stalls are unnumbered as of the effective date of the Declaration but are included within the boundaries of certain Units, as shown above. The use of ADA-compliant parking stalls is governed by the Declaration. All Units are garage Units. B-4 DWT 1625240A 9 0018516-000023 CONSENT TO ACTION OF BOARD OF DIRECTORS IN LIEU OF ORGANIZATIONAL MEETING OF DIRECTORS OF AUBURN CENTRAL PARKING GARAGE CONDOMINIUM OWNERS ASSOCIATION The undersigned, being all of the directors of Auburn Central Parking Garage Condominium Owners Association, a Washington nonprofit corporation (the "Corporation'), as set forth in the Articles of Incorporation, consent to the following actions of the board of directors in lieu of holding an organizational meeting but with the same force and effect as if an organizational meeting had been held after proper call and proper notice. t. Bylaws. The Bylaws attached hereto as Exhibit A and incorporated by this reference are hereby adopted as the Bylaws of the Corporation. 2. Consent to Electronic Transmissions. The following resolution is unanimously adopted: RESOLVED, that each member, officer, and director who wishes to receive notices from the Corporation by email shall return to the Corporation a consent to receive electronic transmissions in substantially the form attached as Exhibit B. 3. Officers. The following are hereby confirmed and elected as officers of the Corporation, to serve until their successors are elected and qualified: President Pat Bailey Secretary Robert Dickens Treasurer Gina Anderson 4. Budget. The Annual Budget attached hereto as Exhibit C anted incorporated by this reference is hereby adopted as the budget of the Corporation for the 2010 fiscal year. S. Regular Annual Assessments. The regular annual assessment for each Unit within Ninth and Lenora Condominium shall be equal to the Allocated Interest or Assessment Percentage as set forth in the Declaration as amended, multiplied by the annual expenses of the Corporation for the budgeted year or partial year. 6. Banking. The following resolution is unanimously adopted; RESOLVED, that the President and Treasurer are authorized: DWT 13439219v4 0018516-000023 (a) to designate such bank or banks as depositories (a "Depository") for the funds of the Corporation as they may deem necessary or advisable; (b) to open, keep and close general and special bank accounts and safe deposit boxes with any Depository_; (c) to cause to be deposited in accounts with any Depository from time to time such funds of the Corporation as they may deem necessary or advisable; (d) to designate from time to time officers and agents of the Corporation authorized to sign or countersign checks, drafts or other orders for the payment of money issued in the name of the Corporation against any suoh account; and (e,) to make such general and special rules and regulations with respect to such accounts (including without limitation authorization for use of facsimile signature) as they may' deem necessary or advisable, If any Depository requires a prescribed form of preamble, preambles, resolution, or resolutions relating to such accounts or to any application, statement, instrument, or other document connected therewith, each such preamble or resolution shall be deemed to be adopted by the Board of Directors, and the Secretary or any Assistant Secretary of the Corporation is authorized to certify the adoption of any such preamble or resolution as though it were presented to the Board of Directors at the time of adopting this resolution, and to insert all such preambles and resolutions in the minute book of the Corporation immediately following this resolution. Dated effective as of January 1, 2010. Prin t Mley Title: Director Date: 3 - / T -'/ a Print Name: Robert Dickens Title: Director Date: T" Print ame: Gina Anderson Title: Director Date: Print Name: Matt Counas Title: Director ,,�,,,, Date: / Seattle 2 DWT 13439219v400185I&M23 EXHIBIT A BYLAWS (See attached pages.) A-1 DWT 13439219v4 0018S 16-000023 BYLAWS OF AUBURN CENTRAL PARKING GARAGE CONDOMINIUM OWNERS ASSOCIATION Adopted January , 2010 DWT 1626566v] 6 0018516-000023 TABLE OF CONTENTS Page ARTICLE I OBJECT AND DEFINITIONS...................................................................................I Section 1.1 Purpose ........................ I Section1.2 Assent..* ...........................................................................................I.....I......I Section1.3 Definitions....................................................................................................I ARTICLE II MEMBERSHIP AND MEETINGS OF MEMBERS................................................I Section 2.1 Matters Governed by Declaration................................................................I Section2.2 Membership.................................................................................................I Section 2.3 Membership Classes....................................................................................2 Section 2.4 Registration of Members..............................................................................2 Section 2.5 Place of the Association Meetings...............................................................2 Section 2.6 Annual Meeting of the Association.............................................................2 Section 2.7 Special Meetings of the Association............................................................2 Section 2.8 Notice of Meetings of the Association.........................................................2 Section2.9 Quorum........................................................................................................3 Section 2.1.0 Voting........................................................................... ......3 ......................... Section 2.11 Use of Telephone or Similar Communications Equipment .........................5 Section 2.12 Unanimous Consent.....................................................................................5 Section 2.13 Adjournment................................................................................................5 Section 2.14 Conduct of Association Meetings................................................................5 ARTICLE III MANAGEMENT OF CONDOMINIUM - BOARD OF DIRECTORS..................5 Section 3.1 Management by Board of Directors.............................................................5 Section 3.2 Number of Directors....................................................................................5 Section 3.3 Tenn of Directors.........................................................................................6 Section 3.4 Qualifications and Appointment of Directors..............................................6 Section3.5 Vacancies.....................................................................................................6 Section 3.6 Removal of Board Members........................................................................6 Section 3.7 Meetings of the Board of Directors.............................................................6 ARTICLE IV OFFICERS................................................................................................................9 Section4.1 Designation..................................................................................................9 Section 4.2 Election of Officers......................................................................................9 Section 4.3 Removal of Officers.....................................................................................9 Section4.4 President.......................................................................................................9 Section 4.5 Vice President............................................................................................10 Section4.6 Secretary ....................................................................................................10 Section 4.7 ...................... Treasurer........................................................................ ......10 Section 4.8 Assistant Secretary .....................................................................................10 Section 4.9 Assistant Treasurer.....................................................................................10 Section 4.10 Vacancies...................................................................................................10 Section 4.11 Amendments to Declaration......................................................................10 i DWT 1626566v160018516-000023 ARTICLE V INDEMNIFICATION OF OFFICERS AND MANAGERS...................................10 ARTICLE VI OBLIGATIONS OF OWNERS..............................................................................I I Section6.1 In General...................................................................................................11 Section 6.2 Use of Common Elements and Limited Common Elements ..................... I I Section 6.3 Right of Entry . ........................................................................................... I I Section 6.4 Power of Attorney......................................................................................I I Section 6.5 Working Capital Contribution................................................................... I I Section 6.6 Assessment Obligation...............................................................................I I Section 6.7 Association Funds......................................................................................12 Section 6.8 Rules and Regulations................................................................................12 ARTICLE VII BYLAWS...........................................................................................12 Section7.1 Amendments..............................................................................................12 ARTICLE VIII MORTGAGES.....................................................................................................12 Section 8.1 Notice to Association.................................................................................12 Section 8.2 Notice of Unpaid Assessments..................................................................12 ARTICLE IX EVIDENCE OF OWNERSHIP, REGISTRATION OF MAILING ADDRESS AND COMPLETION REQUIREMENT...................................................................12 Section 9.1 Proof of Ownership....................................................................................12 Section 9.2 Registration of Mailing Address................................................................13 Section 9.3 Completion Requirement...........................................................................13 ARTICLE X CONFLICT WITH DECLARATION OR LAW.....................................................13 ARTICLE XI NONPROFIT ASSOCIATION..............................................................................13 ARTICLE XII FISCAL YEAR.....................................................................................................13 ii DWT 162656606 0018516-000023 BYLAWS OF AUBURN CENTRAL PARKING GARAGE CONDOMINIUM OWNERS ASSOCIATION ARTICLE I OBJECT AND DEFINITIONS Section 1.1 Purpose. The purposes for which this association (the "Association") is formed are set forth at Article III, Section 3.1 of the Association's Articles of Incorporation. These purposes include to govern the condominium property which is described in Exhibit A attached hereto and by this reference made a part hereof (the "Property"), which Property will be submitted to condominium ownership under the provisions of the Washington Condominium Act, RCW Chapter 64.34 (the "Washington Condominium Act") by a document entitled "Condominium Declaration and Covenants, Conditions, Restrictions, and Reservations for Auburn Central Parking Garage Condominium," which will be recorded in the real property records of King County, Washington, as it may from time to time be amended (as amended, the "Declaration"), establishing a plan for condominium ownership of units ("Units") within the Property under the name "Auburn Central Parking Garage Condominium" (the "Condominium"). Section 1.2 Assent. All present or future owners or tenants or any other person using the facilities of the Condominium in any manner are subject to the regulations set forth in these Bylaws. The mere acquisition or rental of any of the Units in the Condominium or the mere act of occupancy of any of the Units shall constitute ratification of these Bylaws. Section 1.3 Definitions. Unless otherwise specified, capitalized terms used herein shall have the same meaning in these Bylaws as such terms have in the Declaration. (a) The terms "Owner" and "Member" as used herein shall be synonymous. (b) The term "executed" means: (a) a writing that is signed; or (b) an e-mail transmission that is sent with sufficient information to determine the sender's identity. (c) The term "person" means any natural person, corporation, partnership, association, trust, governmental subdivision or agency, or other legal entity. ARTICLE II MEMBERSHIP AND MEETINGS OF MEMBERS Section 2.1 Matters Governed by Declaration. With regard to various matters including membership, meetings and voting, reference is made to Article 13 of the Declaration. Section 2.2 Membership. Every owner (collectively the "Owners") of Units within the Condominium, as defined in the Declaration, shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Unit which is subject to Assessment. DWT 1626566YI6 0018516-000023 Section 2.3 Membership Classes. The Association shall have one (1) class of membership. Section 2.4 Registration of Members. The Board of Directors shall maintain a register containing the names and addresses of Owners, their designated representatives, and the holders or assignees of any voting rights or proxies that have been filed with the Association. Any person becoming an Owner, or acquiring an interest therein entitling that person to exercise voting rights as, or on behalf of, a Member of the Association, shall not be entitled to exercise such voting rights until he or she has furnished proof of ownership and satisfied the requirements described in Article IX of these Bylaws. Section 2.5 Place of the Association Meetings. Meetings of the Members of the Association shall be held at the.principal office of the Association or at such other suitable place convenient to the Members as the Board may designate. Section 2.6 Annual Meeting of the Association. Annual meetings of the Members shall be set by the Board so as to occur during the first (I") quarter of the Association's fiscal year on a date and at a time set by the Board. Section 2.7 Special Meetings of the Association. Special meetings of the membership of the Association may be called from time to time by the President, a majority of the Board, or by Owners having at least twenty percent (20%) of the votes in the Association. Section 2.8 Notice of Meetings of the Association. All Owners shall receive written notice stating the place, day, and hour of any meeting of the Members of the Association not less than ten (10) nor more than sixty (60) days before the date of the meeting by or at the direction of the President or the Secretary or the Officers or persons calling the meeting. Notice shall be delivered in a manner reasonably calculated to provide each Member entitled to vote at such meeting with actual notice. The notice shall state the business to be placed on the agenda by the Board of Directors for a vote by the Members, including the general nature of any amendment to the Articles, Bylaws, Declaration, any budget or increases in Assessment obligations and any proposal to remove a Director. Such notice may be delivered by regular or express mail, private carrier, personal delivery, e-mail, electronic network posting, or facsimile. 2.8.1 Consent to Notice by E-mail. If notice is provided to Members by e-mail, it is effective only with respect to Members who have: (a) consented in writing or by e-mail to receive notices transmitted by e-mail; and (b) designated in the consent the message format that is accessible to the recipient, and the address, location, or system to which these notices may be e-mailed. A Member who has consented to receipt of e-mailed notices may revoke the consent by delivering (by mail, facsimile or e-mail) a revocation to the Association. The consent of any Member is revoked if the Association is unable to transmit by e-mail two (2) consecutive notices given by the Association in accordance with the Member's consent, and this inability becomes known to the Secretary of the Association or other person responsible for giving the notice. The inadvertent failure by the Association to treat this inability as a revocation does not invalidate any meeting or other action. 2 DWT 1626566v16 0018516-OW023 2.8.2 Delivery of Notice by E-mail. Notice provided by e-mail to a Member who has consented to receive notice by such means is effective when it is e-mailed to an address designated by the recipient for that purpose. 2.8.3 Delivery of Notice by Posting to Electronic Network. The Association may provide notice of the time and place of any meeting of the Members by posting the notice on an electronic network (such as a listserv), provided that the Association also delivers to the Member notice of the posting by mail, facsimile, or e-mail (pursuant to the recipient's consent to receive notices by e-mail), together with comprehensible instructions regarding how to obtain access to the posting on the electronic network. 2.8.4 Delivery of Notice by Other Means. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail addressed to the Member at the address as it appears on the records of the Association, with postage thereon prepaid. Other forms of notice described in this section are effective when received. Section 2.9 Quorum. Except as otherwise provided in these Bylaws or the Declaration, the presence in person or by proxy of Owners of Units to which at least seventy-five percent (75%) of the total votes in the Association are allocated shall constitute a quorum at a meeting of the Members, provided, however, that as long as the City of Auburn is the owner of all of Units 4, 5, 6, 9, 11, 12, 13, 14, 19, 20, 21, 22, 27, and 29 of the Condominium (collectively, the "City Units"), there shall be no quorum unless the City of Auburn or its representative is present at the meeting. Section 2.10 Voting. An affirmative vote of Owners of Units to which are allocated a majority of the votes in the Association and which are present, either in person or by proxy, at a meeting of the Members shall be required to take any action that may be taken by the Members unless a greater proportion is required by Washington law, the Articles of Incorporation, the Declaration, or another provision of these Bylaws. A Member entitled to vote may vote in person at any meeting, or such Member may vote by mail, electronic transmission (such as e-mail or "web voting"), or by proxy executed by the Member or by a designated voting representative, all in accordance with the provisions of Section 13.5 of the Declaration and these Bylaws. The voting power of each Member shall be equal to the Allocated Interest of the Member's Unit as set forth in the Declaration. 2.10.1 Proxies; Voting Representative, A proxy dated, and duly executed by the Owner or by a designated voting representative may be transmitted to the Association by regular or express mail, private carrier, personal delivery, e-mail, electronic network posting, or facsimile. Multiple Owners of a Unit each may vote or register protest to casting of votes by the other Owners of the Unit through a duly appointed voting representative. Proxies must be filed with the Secretary before the appointed time of each meeting. No proxy shall be valid for a period longer than eleven (11) months after the date thereof. Revocation of a proxy must be by written or electronic transmission to the Secretary. A proxy with respect to a specific meeting shall entitle the holder thereof to vote at any reconvened meeting following adjournment of such meeting but shall not be valid after the final adjournment of such meeting. 3 DWT 1626566v 16 0018516-000023 2.10.2 Voting by Mail. The Board may decide that voting of the Members shall be by mail or by electronic transmission (such as e-mail or "web voting") with respect to any particular election of Directors, adoption of any proposed amendment to the Declaration or Bylaws or any other matter for which approval by Owners is required by the Declaration or Bylaws, in accordance with the following procedure: (i) A vote may be conducted by electronic transmission if the Association has designated an address, location, or system to which the ballot may be electronically transmitted and the ballot is electronically transmitted to the designated address, location, or system, in an executed electronically transmitted record. (ii) In the case of election of Board members by mail or by electronic transmission, the existing Board members shall advise the Secretary in writing or by e-mail of the names of proposed Board members sufficient to constitute a full Board and of a date at least fifty (50) days after such advice is given by which all votes are to be received. The Secretary within five (5) days after such advice is given shall give notice of the number of Board members to be elected and of the names of the nominees to all Owners of each Unit. The notice shall state that any Owner may nominate an additional candidate or candidates, not to exceed the number of Board members to be elected, by notice to the Secretary at the specified address of the principal office of the Association, to be received on or before a specified date fifteen (15) days from the date the notice is given by the Secretary. Within five (5) days after such specified date the Secretary shall give notice to all Owners, stating the number of Board members to be elected, the names of all persons nominated by the Board and by the Members on or before said specified date, that each Owner may cast its vote by mail or by electronic transmission and the date established by the Board by which such votes must be received by the Secretary at the address of the principal office of the Association, which shall be specified in the notice. Votes received after the established date shall not be effective. All persons elected as Board members pursuant to such an election by mail or by electronic transmission by receipt of the number of votes required by applicable law shall take office effective on the date specified in the notice for receipt of such votes. (iii) In the case of a vote by mail or electronic transmission relating to any other matter, the Secretary shall give notice to all Owners of each Unit, which notice shall include a proposed resolution setting forth a description of the proposed action and shall state: (1) that such persons are entitled to vote by mail (or by electronic transmission) for or against such proposal; (2) a date not less than twenty (20) days after the date such notice shall have been given on or before which all votes must be received; and (3) that they must be sent to the specified address of the principal office of the Association. Votes received after that date shall not be effective. Any such proposal shall be adopted if approved by the affirmative vote of not less than a majority of the votes entitled to be cast on such question, unless a greater or lesser voting requirement is established by the Declaration or Bylaws for the matter in question. I. (iv) Receipt of a vote in writing to the principal office of the Association shall be equivalent to receipt of a vote by mail at such address for the purpose of this Section 2.10.2. DWT 1626566Y 16 0018516-000023 Section 2.11 Use of Telephone or Similar Communications Equipment. Meetings of Members may be conducted by conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other at the same time and participation by such means shall constitute presence in person at a meeting. Section 2.12 Unanimous Consent. Any corporate action required or permitted by the Articles of Incorporation, Declaration, or Bylaws, or by the laws of the State of Washington, to be taken at a meeting of the Members of the Association, may be taken without a meeting if a consent in writing or by e-mail transmission setting forth the action so taken shall be executed (as defined in Section 1.3 of these Bylaws) by all of the Members entitled to vote with respect to the subject matter thereof. Such consent shall have the same force and effect as a unanimous vote, and maybe described as such. Section 2.13 Adjournment. If any meeting of the Owners cannot be organized because a quorum has not been obtained, the Owners who are present either in person or by proxy may adjourn the meeting to a time not less than forty-eight (48) hours from the time the original meeting was called. Section 2.14 Conduct of Association Meetings. The President shall also serve as Chairman and shall preside over all meetings of the Association, and the Secretary shall keep the minutes of the meetings and record in a minute book all resolutions adopted and all other transactions occurring at such meetings. The order of business at all meetings of the Owners shall be as follows: (i) call; (ii) reading of notice of meeting or waiver of notice; (iii) review of minutes of preceding meeting; (iv) reports of officers; (v) reports of committees; (vi) reports of Board members (annual meeting only); (vii) old business; and (viii) new business. ARTICLE III MANAGEMENT OF CONDOMINIUM — BOARD OF DIRECTORS Section 3.1 Management by Board of Directors. A Board of Directors shall govern the Association. Section 3.2 Number of Directors. There shall be four (4) Directors of the Association. The names and addresses of the initial Board members are as set forth in 5 DWT 1626566v16 0018516-000023 Article VII of the Articles of Incorporation of the Association. After the Transition Date and at each annual meeting thereafter, the Members shall appoint a Board of four (4) Directors. The Board of Directors may, upon the amendment of these Bylaws, increase or decrease the number of Directors, subject to the requirements of the Washington Condominium Act regarding the number of Directors, provided that no decrease in number shall have the effect of shortening the term of any incumbent.. Section 3.3 Term of Directors. Except to the extent otherwise provided in the Declaration or these Bylaws, a Director shall hold office for a term of one (1) year and may serve consecutive terms. Each Director shall hold office for the term for which he or she is elected and until his or her successor shall have been elected and qualified, or until removed as provided in these Bylaws. Section 3.4 Qualifications and Appointment of Directors. The Board of Directors succeeding the Initial Directors named in the Articles of Incorporation shall be appointed by the Members. The Member(s) who own the City Units shall appoint two (2) Directors to the Board of Directors, and the Member(s) who own Units 1, 2, 3, 7, 8, 10, 15, 16, 17, 18, 23, 24, 25, 26, and 28 in the Condominium (the "Hospital Units") shall appoint two (2) Directors to the Board of Directors. Directors need not be members of the Association. Directors shall have such other qualifications as may be prescribed by amendment to these Bylaws. If two or more Members own the City Units, then such Members shall collectively appoint two (2) Directors to the Board of Directors unless they have agreed on a different method of appointing Directors. If two or more Members own the Hospital Units, then such Members shall collectively appoint two (2) Directors to the Board of Directors unless they have agreed on a different method of appointing Directors. Section 3.5 Vacancies. Vacancies in the Board caused by any reason other than the removal of a Board member as provided in these Bylaws shall be filled by written designation of the Member or Members who appointed or elected such Board member; and each person so designated shall be a Board member until a successor is appointed or elected at the next annual meeting of the Members of the Association. Section 3.6 Removal of Board Members. At any regular meeting or at any special meeting of the Members called for that purpose at which a quorum is present, any one or more of the Board members may be removed with or without cause, by Owners of Units to which at least seventy-five percent (75%) of the votes in the Association are allocated and who are present and entitled to vote at such meeting, and a successor may then and there be elected to fill the vacancy thus created; provided, however, that as long as the City of Auburn is the owner of all of the City Units, the removal of any Board member appointed by it shall require the approval of the City of Auburn. Any Board member whose removal has been so proposed by the Owners shall be given an opportunity to be heard at the meeting. Section 3.7 Meetings of the Board of Directors. 3.7.1 Annual Meeting. The annual meeting of the Board of Directors shall be held immediately after the annual membership meeting. Said meeting shall be held on the same date and at the same place as the membership meeting unless some other place or date shall be 0 DWT 1626566v160018516-000023 specified by resolution of the membership at such meeting. No notice to the Board members shall be necessary to legally constitute such meeting. 3.7.2 Regular Meetings. Regular meetings of the Board of Directors shall be held at 7:00 p.m. on the first Tuesday of each calendar month at the Auburn Regional Medical Center, City of Auburn, Washington, or at such other time, date, and location as may be approved in advance, upon written notice to each Board member, by a majority of the Board of Directors. 3.7.3 Special Meetings. Special meetings of the Board of Directors may be held at any place and time, whenever called by the President, Secretary, or any two (2) Directors. The person or persons authorized to call special meetings may fix any suitable place within the City of Auburn, Washington, convenient to the Board members as the place for holding any special Board of Directors meeting. 3.7.4 Notice of Meetings. No notice of the annual meeting of the Board of Directors shall be required. Notice of the time and place of regular meetings of the Board shall be given to each Board member at least three (3) days prior to the day named for such meeting. Neither the business to be transacted nor the purpose of any regular meeting of the Board of Directors need be specified in the notice or any waiver of notice of such meeting. Notice of the time, place and purpose of any special meeting of the Board of Directors shall be given to each Board member at least three (3) days prior to the date on which the meeting is to be held. Notice of regular and special meetings shall be given by the Secretary, or by the Director or Directors calling the meeting, by regular or express mail, private carrier, personal delivery, e-mail, electronic network posting, facsimile, or by personal communication over the telephone or otherwise. (i) Consent to Notice by E-mail. If notice is provided to Directors by e-mail, it is effective only with respect to Directors who have: (a) consented in writing or by e-mail to receive notices transmitted by e-mail; and (b) designated in the consent the message format that is accessible to the recipient, and the address, location, or system to which these notices may be e-mailed. A Director who has consented to receipt of e-mailed notices may revoke the consent by delivering (by mail, facsimile or e-mail) a revocation to the Association. The consent of any Director is revoked if the Association is unable to transmit by e-mail two (2) consecutive notices given by the Association in accordance with the Director's consent, and this inability becomes known to the Secretary of the Association or other person responsible for giving the notice. The inadvertent failure by the Association to treat this inability as a revocation does not invalidate any meeting or other action. (ii) Delivery of Notice by E-mail. Notice provided by e-mail to a Director who has consented to receive notice by such means is effective when it is e-mailed to an address designated by the recipient for that purpose. (iii) Delivery of Notice by Posting to Electronic Network. The Association may provide notice of the time and place of any special meeting of the Board of Directors by posting the notice on an electronic network (such as a listserv), provided that the Association also delivers to the Director notice of the posting by mail, facsimile, or e-mail (pursuant to the 7 DWT 1626566v 16 0018516-000023 recipient's consent to receive notices by e-mail), together with comprehensible instructions regarding how to obtain access to the posting on the electronic network. (iv) Delivery of Notice by Other Means. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail addressed to the Director at his or her address as it appears on the records of the Association, with postage thereon prepaid. Other forms of notice described in this section are effective when received. 3.7.5 Waiver of Notice. Before, at or after any meeting of the Board, any Board member may, in writing or by e-mail, waive notice of such meeting, and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a Board member at any meeting of the Board shall be a waiver of notice by him of the time and place thereof, unless his appearance is limited to the purpose of objecting to the validity of the meeting, and in such event a written (or e-mail) statement of the limited purpose and of the objection to the meeting shall be filed with the Board prior to the meeting. If all the Board members are present without objection at any meeting of the Board, no notice shall be required and any business may be transacted at such meeting. The Board may act without a meeting if all Board members concur and sign minutes confirming the action of the Board and waiving notice and actual meeting. 3.7.6 Quorum. The presence of three (3) Directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors. If, at any meeting of the Board, there be less than a quorum present, the majority of those present may adjourn the meeting for rescheduling. 3.7.7 Voting. All actions of the Board of Directors shall require the approval of at least three (3) Directors, provided, however, that in the event that two (2) Directors approve a proposed action and two (2) Directors disapprove the action and/or fail to vote, then upon the request of any Director the Directors shall mutually select and appoint a third party advisor (the "Advisor") to advise the Board of Directors on the proposed action. If the Board is unable to agree upon the selection of the Advisor, then the selection shall be made by the Presiding Judge of the King County Superior Court upon the petition of any Director. The appointed Advisor shall be an individual who has no bias or partiality toward any Member or Director and is not an affiliate, employee, director, officer, official, partner, trustee, employee, or attorney of a Member. To facilitate resolution of the Board of Directors deadlock, the appointed Advisor initially shall present a non -binding advisory recommendation at a regular or special meeting of the Board of Directors, within a time period specified by the Board of Directors, upon review of information submitted by the Directors and the Members and such additional information that the Advisor considers relevant to the issue. Following presentation of the Advisor's recommendation, the Board of Directors shall again vote on the matter at issue. If at least three (3) Directors do not either approve or disapprove the proposed action after presentation of the Advisor's recommendation, then upon the request of any Director the Advisor shall arbitrate the matter at the meeting as it may be continued according to any lawful and reasonable practices and procedures as the Advisor may approve, and the decision of the Advisor following such arbitration shall be in writing delivered to all Directors, and shall be F: DWT 1626566v 16 0018516-OW023 binding upon the Association and Board and not subject to appeal. The Advisor, while acting as an arbitrator, shall have no other authority except to determine whether or not the proposed action shall be approved or disapproved. 3.7.8 Fidelity Bonds. The Board may require that all officers and employees of the Association handling or responsible for Association funds shall furnish adequate fidelity bonds. The premiums on such bonds shall be paid by the Association. 3.7.9 Meetings Held by Telephone or Similar Communications Equipment. Members of the Board of Directors or its committees may participate in a meeting of the Board or such committees by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other at the same time and participation by such means shall constitute presence in person at a meeting. 3.7.10 Actions by Written Consent. Any action required or permitted by the Declaration, Articles of Incorporation or Bylaws, or by the laws of the State of Washington, to be taken at a meeting of the Board of Directors (or its committees) of the Association, may be taken without a meeting if a consent in writing or by e-mail transmission setting forth the action so taken shall be executed (as defined in Section 1.3 of these Bylaws) by all of the Directors. Such consent shall have the same force and effect as a unanimous vote, and may be described as such. ARTICLE IV OFFICERS Section 4.1 Designation. The officers of the Association shall be a President, a Vice President, a Secretary and a Treasurer, all of whom shall be elected annually by the Board. Section 4.2 Election of Officers. The officers of the Association shall be elected annually by the Board of Directors at the annual meeting of the Board and shall hold office at the pleasure of the Board. Any person may hold concurrently any two (2) offices, except that the same person may not concurrently hold the offices of President and Secretary. The office of Vice President need not be filled. The Board may elect officers from among its members or otherwise. Section 4.3 Removal of Officers. Upon an affirmative vote of a majority of the members of the Board, any officer may be removed, with or without cause, and his successor elected at any regular or special meeting of the Board called for such purpose. Section 4.4 President. The President shall be the chief executive officer of the Association. He shall preside at all meetings of the Association and the Board. He shall have all of the general powers and duties which are usually vested in the office of the President of a nonprofit association including, but not limited to, the power to appoint committees from among the Owners from time to time as he may in his discretion decide is appropriate to assist in the conduct of the affairs of the Association. 01 DWT 1626566v16 0018516-000023 Section 4.5 Vice President. A Vice President shall have all the powers and authority and perform all of the functions and duties of the President in the absence of the President or his inability for any reason to exercise such powers and functions or perform such duties. Section 4.6 Secretary. The Secretary shall keep the minutes of meetings of the Board and minutes of meetings of the Association; have charge of such books and papers as the Board may direct; and, in general, perform all the duties incident to the office of Secretary. The Secretary shall compile and keep up to date at the principal office of the Association a complete list of Members and their registered mailing addresses. Such list shall also show opposite each Member's name the number or other appropriate designation of the Unit owned by such Member. Such list shall be open to inspection by Members and other persons lawfully entitled to inspect the same at reasonable times during regular business hours. Section 4.7 Treasurer. The Treasurer shall have responsibility for Association funds and shall be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association. He shall be responsible for the deposit of all moneys and other valuable effects in the name and to the credit of the Association in such depositories as may from time to time be designated by the Board of Managers. Section 4.8 Assistant Secretary. The Board may appoint one or more Assistant Secretaries to perform all of the duties of the Secretary in the absence of the Secretary. Section 4.9 Assistant Treasurer. The Board may appoint one or more Assistant Treasurers to perform all of the duties of the Treasurer in the absence of the Treasurer. Section 4.10 Vacancies. Vacancies in any office arising from any cause may be filled by the board of directors at any annual, regular, or special meeting. Section 4.11 Amendments to Declaration. The Secretary and the President shall be authorized to prepare, execute, certify and record Amendments to the Declaration on behalf of the Association. ARTICLE V INDEMNIFICATION OF OFFICERS AND MANAGERS The Association shall indemnify every Board member or officer and his or her heirs, executors and administrators against all expenses and liabilities, including attorneys' fees, reasonably incurred by or imposed in connection with any proceeding to which he or she may be a party or in which he or she may become involved by reason of holding or having held such position at the time such expenses or liabilities are incurred, except to the extent such expenses and liabilities are covered by insurance and except in cases wherein such person is adjudged guilty of willful misfeasance in the performance of his or her duties; provided that, in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and reimbursement as being for the best interests of the Association. Nothing contained herein shall, however, be deemed to obligate the Association to indemnify any Owner who is or has been a Board member or officer of the Association with respect to any duties or obligations assumed or liabilities incurred by him or her under and by virtue of the Declaration as an Owner of a Unit covered thereby. 10 DWT 1626566v 16 0018516-000023 ARTICLE VI OBLIGATIONS OF OWNERS Section 6.1 In General. Each Owner shall always endeavor to observe and promote the cooperative purposes for the accomplishment of which the Condominium was established, and each Owner shall comply strictly with all provisions of the Declaration. Without limiting the generality of the foregoing, particular reference is made to Articles 11, 17 and 19 of the Declaration. Section 6.2 Use of Common Elements and Limited Common Elements. Each Owner shall use the Common Elements and Limited Common Elements in accordance with the purpose for which they were intended without hindering or encroaching upon the lawful rights of the other Owners. Section 6.3 Right of Entry. (a) An Owner shall permit the Managing Agent or other person authorized by the Board the right of access to the Owner's Unit and appurtenant Limited Common Elements from time to time during reasonable hours as may be necessary for the maintenance, repair or replacement of the Common Elements or at any time deemed necessary by the Managing Agent or Board for the making of emergency repairs or to prevent damage to any part of the Common Elements. (b) An Owner shall permit the Managing Agent, other persons authorized by the Board, other Owners or their representatives, when so required, to enter its Unit for the purpose of performing installations, alterations or repairs to the mechanical or electrical services or to the Units and Limited Common Elements of other Owners; provided that requests for entry are made in advance and that such entry is at a time convenient to the Owner. In case of an emergency, such right of entry shall be immediate. Section 6.4 Power of Attorney. Each Owner shall, upon becoming an Owner of a Unit, execute a power of attorney in favor of the Association, irrevocably appointing the Association its attorney -in -fact to maintain, repair and improve the Building in general and the Limited Common Elements, to deal with the Owner's Unit upon its destruction or obsolescence and regarding insurance proceeds as is provided in the Declaration. The purpose of such execution shall be more fully to evidence such appointment, but failure to execute such power of attorney shall in no way derogate from the appointment provided in the Declaration. Section 6.5 Working Capital Contribution. Each Owner shall pay to the Association a contribution to its working capital fund in the manner and amount as provided in the Declaration, and such working capital fund shall be used by the Association for any expenses of operation or shall be placed in reserve for any purpose. Section 6.6 Assessment Obligation. Each Owner is obligated to pay the assessments imposed on such Owner's Unit by the Association and to pay the common expenses of the Condominium as provided in Article 17 of the Declaration. Except for special assessments levied against particular Units, all assessments for common expenses shall be assessed to Owners in proportion to such Unit's Allocated Interests in the Common Elements. 11 DW r 1626566v16 0018516-000023 Section 6.7 Association Funds. All funds paid to the Association, whether as contribution to working capital or as assessments, shall be the common property of the Association, held in trust for the benefit of the Owners, in the accounts to which such funds are from time to time allocated by the Board. Section 6.8 Rules and Regulations. The Board or the Association may adopt rules and regulations necessary or advisable for the proper administration of the Condominium, provided that such rules and regulations may be adopted only by the affirmative vote of Owners of Units to which are allocated at least sixty percent (60%) of the votes in the Association, and provided further that as long as the City of Auburn is the owner of all of the City Units, such rules and regulations shall not be adopted or amended unless approved by the City of Auburn. The rules and regulations may be amended by the Board (or by the Owners in the same manner as amending these Bylaws), and such rules and regulations shall be deemed a part of these Bylaws. ARTICLE VII BYLAWS Section 7.1 Amendments. These Bylaws (and amendments thereto) for the administration of the Association and the Condominium, and for other purposes not inconsistent with the Washington Condominium Act or with the intent of the Declaration, shall be adopted by the Board at its first meeting. Thereafter the Bylaws may be amended by the affirmative vote of Owners of Units to which are allocated at least sixty percent (60%) of the votes in the Association at an annual, regular or special meeting, provided, however, that as long as the City of Auburn is the owner of all of the City Units, all amendments to these Bylaws shall require the approval of the City of Auburn. Notice of the time, place and purpose of such meeting shall be delivered to each Owner at least ten (10) days prior to such meeting. No material amendment of these Bylaws may be made without the prior written approval of a majority of the Eligible Mortgagees. ARTICLE VIII MORTGAGES Section 8.1 Notice to Association. An Owner who mortgages his Unit shall notify the Association through the Managing Agent, if any, or the President of the Board, giving the name and address of its mortgagee. The Association shall maintain such information in a book or list entitled "Mortgagees of Units." Section 8.2 Notice of Unpaid Assessments. The Association shall at the request of a mortgagee of a Unit report any unpaid assessments due from the Owner of such Unit. ARTICLE IX EVIDENCE OF OWNERSHIP, REGISTRATION OF MAILING ADDRESS AND COMPLETION REQUIREMENT Section 9.1 Proof of Ownership. Any person on becoming an Owner of a Unit shall furnish to the Managing Agent or Board a photocopy of a certified copy of the recorded 12 DWT 1626566v 16 0018516-000023 instrument vesting that person with an interest or ownership, which instrument shall remain in the files of the Association. Section 9.2 Registration of Mailing Address. The Owners of each Unit shall have one and the same registered mailing address to be used by the Association for mailing of monthly statements, notices, demands and all other communications; and such registered address shall be the only mailing address of a person or persons, firm, corporation, partnership, association or other legal entity or any combination thereof to be used by the Association. Such registered address of an Owner or Owners shall be furnished by such Owners to the Secretary within five (5) days after transfer of title; such registration shall be in written form and signed by all of the Owners of the Unit or by such persons as are authorized to represent the interests of the Owners thereof. If no such address is registered or if all of the Owners cannot agree, then the address of the Unit shall be the registered address until another registered address is furnished as permitted under this Section. Registered addresses may be changed from time to time by similar designation. Section 9.3 Completion Requirement. The requirements contained in this Article shall be first met before any Owner of a Unit shall be deemed in good standing or entitled to vote at any annual or special meeting of Members. ARTICLE X CONFLICT WITH DECLARATION OR LAW These Bylaws are intended to comply with and supplement the requirements of the Washington Nonprofit Corporation Act, the Washington Condominium Act and the Declaration. If any of these Bylaws conflict with the provisions of said statutes or Declaration, the provisions of the statutes and Declaration will apply. ARTICLE XI NONPROFIT ASSOCIATION This Association is not organized for profit. No Member, member of the Board, officer, or person from whom the Association may receive any property or funds shall receive or shall be lawfully entitled to receive any pecuniary profit from the operations thereof, and in no event shall any part of the funds or assets of the Association be paid as salary or compensation to, be distributed to or inure to the benefit of any members of the Board or any officer. The foregoing, however, shall neither prevent nor restrict the following: (1) reasonable compensation may be paid to any Member, Director, or manager while acting as an agent or employee of the Association for services rendered in effecting one or more of the purposes of the Association; and (2) any Member, officer, or Board member may, from time to time, be reimbursed for his or her actual and reasonable expenses incurred in connection with the administration of the affairs of the Association. ARTICLE XII FISCAL YEAR The fiscal year of the Association shall begin on January 1 and end on December 31. 13 DW r 1626566v16 0018516-000023 EXHIBIT A DESCRIPTION OF LAND PARCEL B, CITY OF AUBURN BOUNDARY LINE ADJUSTMENT NUMBER BLA-08- 0006, RECORDED UNDER RECORDING NUMBER 20080911900016, IN KING COUNTY, WASHINGTON; TOGETHER WITH AND SUBJECT TO PERMANENT EASEMENTS AS DESCRIBED IN THAT CERTAIN RECIPROCAL EASEMENT AGREEMENT, AS RECORDED IN THE REAL PROPERTY RECORDS OF KING COUNTY, WASHINGTON, UNDER RECORDING NO. 20090203001092, AS AMENDED BY THAT CERTAIN FIRST AMENDMENT TO RECIPROCAL EASEMENT AGREEMENT RECORDED IN THE REAL PROPERTY RECORDS OF KING COUNTY, WASHINGTON, UNDER RECORDING NO. 20090902000999, WITHIN PARCEL A OF SAID BOUNDARY LINE ADJUSTMENT; SUBJECT TO AND TOGETHER WITH OTHER MATTERS OF RECORD. 14 DWT 162656606 0018516-000023 EXHIBIT B CONSENT TO ELECTRONIC TRANSMISSIONS Consent of [Director/Member] of [Name of Corporation] to Receive Electronic Transmissions The Corporation wishes to communicate with officers, directors, and members via electronic communication. The Corporation must first obtain the consent of the recipients to receive such communication. Electronic notice is not effective without such prior consent. Directors or Members may complete this form and return a signed copy by mail, facsimile or personal delivery, or they may return the completed form by email, so long as the email provides sufficient information to determine the sender's identity. I consent to receive electronically transmitted notices under the Washington Nonprofit Corporation Act. Please send such notices to the address below in the format identified. Email address: Email text format: ❑ plain text ❑ rich text format ❑ other Attachment format: ❑ Microsoft Word, version ❑ Word for Macintosh, version ❑ Word Perfect, version ❑ PDF ❑ Rich Text Format ❑ Other Date [Name] B-1 DWT 13439219v4 0018516-000023 EXHIBIT C AUBURN CENTRAL PARKING GARAGE CONDOMINIUM OWNERS ASSOCIATION PRO FORMA 2010 BUDGET (See attached page.) C-1 DWT 13439219v4 0018516-000023 ARMC/City West Garage 1/5/2010 Vendor: Contact: Cell/office: Service: Comment: Annual cost: Utilities are estimates Cosco Fire protection Jesse Strasbaugh 425 210 0566 Fire sprinkler system Annual & 3 qrt inspections $ 2,100.00 Sound Electronics Andy Freudenstein 253 472 2955 Fire Alarm Annual Confidence $ 1,200.00 Western Mechanical Matt Wells 206 613 9844 Backflow Preventers Annual City required $ 360.00 Otis Joel Kallman 206 3915160 Elevators $382 per mo. Otis Elevator $ 4,584.00 McDonough & Sons Fernado 425 432 3155 Sweeper Service Per week $150.56 $ 7,829.12 McDonough & Sons Fernado 425 432 3155 Power Washing/Snow removal Semiannual /Seasonal $ 4,500.00 ARMC Engineering Matt Counas 253 333 2549 Lighting/lamps/Mist $50 per hour 1/2 hr min Dzingle Russ Dzingle 253 833 2288 Grounds Maintenance $150 per Mo. $ 1,800.00 Allied Barton Will Leurquin 206 786 4445 Security 40 hrs Plus 24/7 response $ 31,449.60 Healthcare Parking Cameron Kronemyer 253 212 8873 Porter/Cashier/attendant option 40 firs per week @ $14.25 only $29,640 Fire Extingusher Fire Chief Equipment 206 682 3419 Annual fire Extingusher ($ 9.3)(11) plus $59.00 $ 161.30 Utilities: City Of Auburn Water/Waste $ 4,500.00 PSE Elect $ 24,000.00 Fire Com NW 3rd Party Notification Fire Sys. $ 504.00 Property Tax Chicago Title Source of inf $ 5,109.20 Total Estimate $ 88,097.22 13615248 4.XLSX