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(Page 1)






The herein Declaration of Protective
Covenants, Conditions and Restrictions; Establlsnment of a Homeowners
Association and Initial Declaration of Homeowners Association Annual
Fee are applicable to WILLOW CREEK HEIGHTS including WILLOW CREEK
HEIGHTS (lots 1 through 85) and WILLOW CREEK HEIGHTS No. 2 (lots 86
through 145) and Tracts A through H. Willow Creek Heights is a
residential P.U.D. located in Washington County, Oregon. Willow Creek
Heights is a plat recorded in Plat Book 135 and Page 32-37, Document
No. 2001013473. Willow Creek Heights and Willow Creek Heights No.2 are
phases of a planned multi-phase development consisting of single family
housing in multiple phases. The first three phases will include
approximately 160 lots. At Declarant’s sole discretion this document
may apply to subsequent phases of development. The Declarant reserves
the right to amend this document to reflect incorporation of additional
land, additional and/or different provisions which reflect
governmental, physical and market requirements as additional phases are
approved and constructed in Willow Creek Heights. The number of
additional lots which could be platted for potential future phases has
not been applied for and is not, at the date of this declaration,
known. In an application by Declarant to add additional land to the
Willow Creek Heights Master Plan, the Willow Creek Heights Homeowners
Association, through Declarant, is authorized to act as agent of the
owners or contract purchasers of existing Willow Creek Heights lots in
order to meet signature requirements of Washington County Code. This
authority specifically recognizes that Declarant retains the authority
to act on behalf of said Homeowners Association prior to administration
of the Homeowners Association being turned over to its members as
hereinafter described.

After Recording Return To:

West Hills Development Co.

15500 S.W Jay Street

Beaverton, Oregon 97006

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(Page 2)

WHEREAS, West Hills Development
Company, hereinafter referred to as Declarant, is owner in fee simple
of the herein described real property; and,

WHEREAS, the Declarant desires to
declare of public record its intention to create a Homeowners
Association for ownership and/or maintenance of certain tracts and
certain easements and/or the improvements thereon and,

WHEREAS: This Planned Unit
Development is subject to the conditions of approval contained in
Washington County Department of Land Use and Transportation Case Files
No. 00-110-S/D(CI)/V/I-lRV/W/DHA/P/DFR and 00-366-MR; and,

WHEREAS: There shall be no direct
motor vehicle access onto N.W Saltzman Road, N.W. Thompson Road or N.W.
Kenny Terrace/Thompson Road to or from any lot or tract in this P.U.D.,
unless otherwise approved by the Governing Authority having
jurisdiction of said roads and street; and,

WHEREAS: A thirteen (13) foot
wide public utility and sidewalk easement shall exist along the
frontage of all lots and tracts abutting N.W. Pinon Hills Terrace, N.W.
Creekview Drive, N.W. Dalton Ranch Lane, N.W. Tustin Ranch Drive, N.W.
Hilton Head Terrace, N.W. Evergreen Street, N.W. Talamore Terrace, N.W.
Lansbrook Terrace, N.W. Hartford Street, N.W. Keeton Park Lane and N.W.
Yvonne Lane; and,

WHEREAS: Tract “A” is to be owned
and maintained by the Declarant, its successors or assigns; and

WHEREAS: Tracts “B”, “C”, “D”,
“E”, “F”, “G” and “H” shall be owned and maintained by the Willow Creek
Heights Homeowners Association (Homeowners Association); and,

WHEREAS: Tracts “D” and “E” and
“H”; shall be subject to Unified Sewerage Agency sanitary sewer and/or
storm and surface water drainage easements over their entirety The of

WHEREAS: Tracts “B”, “C”, “G”,
and “H”, are subject to a public pedestrian and bicycle access easement
over their entirety; and,

WHEREAS: Tracts “A”, “B”, “C”,
“G” and “H” shall be subject to a Public Utility Easement across their
entirety; and,

WHEREAS: Landscaping, fences,
retaining walls, irrigation system(s) and monuments if any, located in
Tracts “D” “E”, “F”,”G” and “H” shall be owned and maintained by the

(Page 3)

Homeowners Association; and,

WHEREAS: Tracts “D” and “E” are
for open space purposes; and,

WHEREAS: Tracts “D” and “E” are
subject to Unified Sewerage Agency sanitary sewer easements over their
entirety for open space purposes; and,

WHEREAS: Lots 1,4,5,7, 10 through
37, 40 through 60, 62, 64, 66 through 81, 86 through 88, 92 through
97,116 though 119, 125 though 129, 146 though 151 and the North side of
N.W. CreekView Drive shall be subject to easements for the location and
maintenance by the Willow Creek Heights Homeowners Association of
retaining walls (WME), landscaping, fencing and irrigation system(s) if
any; and,

WHEREAS: Lots 9, 16, 37 through
42, 59 through 63, 80, 81 and 106 shall be subject to easements for
public utilities, storm drainage, and sanitary sewer; and,

WHEREAS: Lots adjacent to N. W.
Saltzman Road and N. W. Kenny Terrace/Thompson Road may be impacted by
arterial road noise; and,

NOW, THEREFORE, Declarant hereby
declares that the subject property shall be held, sold and conveyed in
accord with and subject to all applicable governmental ordinances and
development agreements, the aforementioned “Whereas” clauses, the
following restrictions, covenants and conditions (CC&R’S) and
the following Homeowners Association Provisions (Provisions). The
purpose of the CC&R’S and Provisions is to maintain and protect
the value and desirability of said real property. The terms of the
“Whereas” clauses, CC&R’S and Provisions shall inure to the
benefit of each owner of property in Willow Creek Heights and shall be
binding on all parties having any right, title or interest in the above
described property or any portion thereof, their heirs, successors and
assigns. The “Whereas” clauses, CC&R’S and Provisions shall run
with and attach to the subject property and bind all the real property
within this P.U.D.

If any lot owner causes specific damage to a
protected wetland, the lot owner shall be solely responsible for
repairing and/or mitigating the damage. A lot owner is responsible for
the damage caused by him/herself, lessee, guests, invitees, and those
under his/her control. All work performed shall be performed in a good
and workmanlike manner and in compliance with the permits’ terms and
conditions, all laws, ordinances, codes, and other applicable
governmental regulations. A contractor acceptable to the Association
shall make the repairs of damage under the name of the responsible lot
owner. Construction shall commence within 30 days of the date of damage
or notice, or as required by governing authorities. If weather delays
the damage repair, work shall commence as soon as weather permits.
Should any disagreement of the lot owners occur over specific damage
responsibility, the Association shall decide upon a remedy. The lot
owner causing said work to be performed shall promptly pay the expenses
of the work. The party performing the work will have the right to enter
onto other lot owner(s) parcels to the

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(Page 4)

extent entry is reasonably necessary in connection
with the work, after reasonable advanced notice. The work shall be
performed in a manner designed to cause a minimum of interference with
the lot owner(s).

Failure to comply with the terms and conditions of
the permits or applicable regulations of a governing body may result in
a violation. Violations are subject to administrative and/or legal
action which may result in Homeowners Association liability, including
civil penalties.

If the Declarant was required to obtain and provide
the governing authority with a security bond, instrument or account
sufficient to ensure completion of mitigation, continuing maintenance,
and monitoring, the Homeowners Association shall obtain and provide a
security bond, instrument, or account sufficient to ensure the same, as
required by the governing authority. The security bond or instrument
obtained by the Association shall replace and supersede Declarant’s.

Although the transfer of the permits and the
obligations and liabilities associated with the permitted wetlands is
effective through this declaration, the Homeowners Association agrees
to enter into a written understanding which has the effect of
transferring the permit, and all obligations and liabilities imposed by
the terms and conditions of the permits and by law, from the Declarant
to the Association. The parties to any such written agreement will be
the Declarant and the Association and may include those governing
authorities with jurisdiction over the herein described wetlands, as
well as any entity that has contracted to perform maintenance and
monitoring services on said wetlands.

The Willow Creek Heights Homeowners Association shall
defend and hold harmless the Declarant, and its officers, agents, and
employees from any claim, suit or action for maintenance, monitoring,
repair, property damage, personal injury or death arising out the
maintenance and ownership of any Tracts whether or not said Tract(s)
contain wetlands. If the Willow Creek Heights Homeowners Association is
dissolved, the liabilities and continuing obligations transferred by
this Declaration shall be deemed transferred to the individual lot
owners who are members of the Association before dissolution.



(Page 5)

The Board of Directors or, if no Board of Directors
has yet been chosen, the Declarant, shall have the authority, without
first submitting the question to owners, to increase, by no more than
ten percent 10%, the annual general Homeowners Association fee
assessment. The amount of each annual assessment shall be established
and justified at the Board’s annual meeting or if the Board of
Directors has yet to be established pursuant to the Declaration, the
amount of increase shall be based upon actual expenses experienced by
Declarant. In no event, however, shall the annual general Homeowners
Association fee assessment for any lot be increased by more than ten
percent (10%) in anyone year or an accumulated increase of more than
fifty percent (50%) from the initial annual general Homeowners
Association fee assessment without a vote of the owners as set forth
elsewhere in the Homeowners Association Provisions. The expenses
referenced herein shall be borne by the lot owners equally with a pro
rata share of the total being the responsibility of each lot owner(s).

The legal description of the real property included
in the planned community which is or must become a common property is
all common property so declared in this document or subsequent
documents including without limitation Tracts “B”, “C”, “D”, “E”,
“F”,”G” and “H”, easements for pedestrian access and entrance
monument(s), walls, landscaping, irrigation systems, fencing and
related activities,

A. The method of determining voting rights, the
liability of each lot for common expenses and right of each lot to any
common profits of the Association shall be as follows:

1). All owners and contract purchasers of lots in
Willow Creek Heights shall be members of the Association. The
allocation of votes to lots shall be one (1) vote per lot.

2). Once activated, as set forth herein, the
Association shall be responsible for taxes, liability insurance and
maintenance, repair and replacement of monuments, retaining walls,
landscaping, irrigation systems, governmental obligations regarding
wetland maintenance and protection, pathways and fences on Homeowners
Association property.

3). All costs of maintenance, repair and
replacement of all common property, fences, walls, entry monuments,
landscaping and irrigation facilities, shall be borne by the lot owners
equally with a pro rata percentage of the total costs being assigned to
each lot owner. Said costs shall be assessed annually by the
Association unless a special assessment is necessary.

4). Any lot owner failing to pay his or her
proportionate share of costs assessed by the Association within thirty
(30) days after it becomes due shall be liable for interest at the rate
of 12% per annum and costs of collection of such assessment including
attorney fees. All such unpaid amounts shall become a lien on the lot
or lots to which such amounts are attributable. No assessment will be
levied against lots while owned by Declarant.

5). All common profits of the Association shall
he allocated equally to each lot owner.

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(Page 6)

B. Declarant installed landscaping, irrigation
systems, fencing, retaining walls and entrance monuments, shall be
maintained to the standards of any governing public authority by the
Willow Creek Heights Homeowners Association. Common area taxes and
common area liability insurance shall be the responsibility of the
Association upon. Liability insurance shall include Declarant as a
named insured.

C. There shall be no restrictions on the alienation
of lots. A lot may not be divided but may be combined with other lots.

D. The intended use of each lot is residential.

E. The deeds to Homeowners Association Tracts and
easements shall be in the name of Willow Creek Heights Homeowners
Association, a non-profit Corporation.

F. Any amendment of the declarations shall be by vote
or agreement of the owners representing at least 75% of the total votes
in the Association. However, in no event shall an amendment under this
section limit or modify Declarant’s, its agents or assigns, rights
regarding the Architectural Control Committee or access to utilities
located in the common areas.

No amendment shall change the boundaries of any lot
or any uses to which any lot or tract is restricted unless the owners
of the affected lots unanimously consent to the amendment. Amendments
to a declaration under this section shall be executed, recorded and
certified on behalf of the Association by any officer of the
Association designated for that purpose or, in the absence of such
designation, by the President of the Board of Directors of the
Association. Amendments to a declaration under this section shall be
effective only upon recordation. Prior to turning administration of the
Homeowners Association over to the property owners as herein described
Declarant reserves the right to make amendments to the Whereas clauses,
Homeowners Association Provisions and CCR’s.

G. Declarant reserves the right to an unspecified
easement across, through and under any Tract or easement for connection
to utility lines located in said Tract, easement or neighboring
property. Declarant also reserves the right to impose and retain
exclusive easements over all common properties and individual lots
which easement will be the only location on said common properties or
individual lots allowed for extending lines, cables, etc. providing
telecommunications services of a non-telephonic and non basic video
reception only television nature from public utility lines to
individual structures. Said exclusive easement shall be the property of
Declarant or its assigns.

H. The date after which the right to withdraw
property from the Association shall expire is the date upon which the
Administration of the Willow Creek Heights Homeowners Association is
transferred to the members as herein provided.

(Page 7)

I. Administration of the Homeowners Association shall
be transferred from Declarant to the members no later than when homes
on 75% of the total lots in all phases of Willow Creek Heights P. U.D
have been occupied. The Declarant shall call a meeting for the purpose
of turning over administrative responsibility for the Homeowners
Association and related property to the Association not more than 90
days after 75% of all homes in all phases are occupied. The Declarant
shall give notice of the meeting to each lot owner. At said meeting the
members in attendance shall select a transition team to adopt formal
bylaws which will then be followed to select a Homeowners Board of
Directors of the Willow Creek Heights Homeowners Association. Upon
transfer of the Association, Bylaws for the Willow Creek Heights
Homeowners Association shall govern Association activities.

Following said turnover meeting, Declarant, its
agents or assigns shall continue to have the right to use all of the
roads within the P.U.D. to develop and or build upon adjoining property
and each owner of a lot agrees that he or she will not object to such
use or to oppose Declarant’s, its agents or assigns future development
or building plans on said adjoining property.

Upon selection of a Board of Directors the Declarant
shall turn over to the Association the responsibility for the
administration of the Association and said Association shall accept the
administrative responsibility. The Declarant shall deliver, if in

1). The original or a photocopy of the recorded
declaration and copies of the Bylaws of the Association and any
supplements and amendments thereto;

2). A deed(s) to the common property in as well as
to common easements;

3). The minute books, including all existing
minutes other books and records of the Association and the Board of

4). All rules and regulations adopted by the

5). All funds, if any, and supporting records of
the Association and control oft he funds;

6). All tangible personal property and an inventory
thereof belonging to the Association, if any;

7). Records of all property tax payments for the
common property to be administered by the Association;

8). Copies of any income tax returns filed by the
Declarant in the name of the Association and supporting records of the
returns, if any;

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(Page 8)

9). All bank signature cards, if any;

10). An operating budget for the portion of the
Association property turned over to Association administration and a
budget for replacement and maintenance of the common property, as

11). A copy of ‘as built’ architectural,
structural, engineering, mechanical, electrical and plumbing plans, if

12). The plans for underground site service,
including television service, site grading, site drainage and
landscaping, to the extent those are available and are not official
records kept at Washington County;

13). Any other plans and information relevant to
future repair or maintenance of the Association property;

14). A list of the general contractor and the
electrical, masonry, landscaping and plumbing contractors responsible
for construction or installation of common property improvements;

15). Insurance policies;

16). Any permits issued by governmental bodies
applicable to the Association property in force or issued within one
year before the date on which the owners assume administrative

17). A list of any written warranties on the
Association property that are in effect and the names of the
contractor, subcontractor or supplier who made the installation for
which the warranty is in effect;

18). A roster of owners and their addresses and
telephone numbers, if known, as shown on the records of the declarant;

19). Employment or service contracts in which the
Association is a contracting party or service contracts in which the
Association or the owners have an obligation or responsibility,
directly or indirectly, to pay some or all of the fee or charge of the
person performing the service; and

20). Any other contracts to which the Association
is a party.

J. In order to facilitate on orderly transition
during the three month period following

(Page 9)the turnover meeting, the Declarant or an informed
representative shall be available, if needed, to meet with the Board of
Directors on three mutually acceptable dates to review the documents
covered above.

K. Upon the transfer of Administration of the
Homeowners Association to the members by the declarant, as herein set
forth, the Association Board of Directors shall establish a reserve
account for replacement of all items of common property which will
normally require replacement in whole or in part, in more than three
and less than thirty years. Said account shall be funded by assessments
against the individual lots for maintenance items [or which the
reserves are established. The reserve account shall be established in
the name of the Willow Creek Heights Homeowners Association. The
Association shall be responsible for administering the account, for
making periodic payments into it, and for adjusting the amount of the
payments at regular intervals to reflect changes in current replacement
costs over time. The account may be used only for replacement of common
property and is to be kept scparatc from assessments for maintenance.
However, after the individual lot owners have assumed responsibility
for administration of the Association, the Board of Directors may
borrow funds from the reserve account to meet high seasonal demands on
the regular operating funds or to meet other temporary expenses. Funds
borrowed to meet temporary expenses under this subsection must be paid
later from special assessments or maintenance fees. Following the
second year after the Association has assumed administrative
responsibility for the Association, if owners of lots representing 75%
of the votes of the Association agree to the action they may vote to
increase, reduce or eliminate future assessments for the account.
Assessments paid into the reserve account are the property of the
Association and are not refundable to sellers or owners of lots. The
sellers or owners of lots may treat their outstanding share of the
reserve account as a separate item.

The Association may not sell, convey or subject to a
security interest any portion of the common property. This prohibition
does not apply to granting of easements for public utilities or other
public purposes consistent with the intended use of the common


The rights of the Association with respect to the
common property or the rights of an individual lot owner with respect
to a lot or improvements on a lot, shall be restricted as follows. The
following covenants, conditions and restrictions are in addition to the
ordinances, rules and regulations of Washington County, Oregon. In case
of conflict between the following covenants, conditions and
restrictions and the ordinances, rules and regulations of Washington
County, Oregon, the ordinances, rules and regulations of Washington
County shall control.


(Page 10)

1). Land Use and Building Type

No lot shall be used except for residential purposes.
No building shall be erected, altered, placed or permitted to remain on
any lot other than one single family dwelling and a private garage for
not less than two (2) cars. The foregoing provisions shall not exclude
construction of a private greenhouse, storage unit, private swimming
pool or a shelter for the protection of such swimming pool provided the
location of such structure is in conformity with the applicable
municipal regulations, the structure is compatible in design and
decoration with the residence constructed on such lot and the structure
and its location has been approved by the Architectural Control
Committee (Committee). The provisions of this section shall not be
deemed to prohibit the right of any home builder to construct a
residence on any lot, to store construction materials and equipment on
said lots in the normal course of construction and to use any single
family residence as a sales office or model home for purposes of sale
in this P.U.D. There shall be no construction, landscaping, clearing,
grading, tree cutting or land filling on a lot without the approval of
the Architectural Control Committee. There is a right to repair or
restore improvements on the lot at the owner’s discretion in the event
of damages or destruction; however, at all times such improvements must
comply with these CC&R’S and the rules and regulations of the
Architectural Control Committee.

2). Dwelling Size

The total floor area of a dwelling, whether of single
or two story construction, exclusive of open porches and garages, shall
not be less than 1200 square feet. The Declarant must approve, in
writing, any exceptions to these standards.

3). Easements and Setbacks

Easements as shown on the P.U.D. plat and/or
described in the deeds to each lot and tract shall be preserved by the
respective lot owners. Site improvements shall not be placed so as to
interfere with the maintenance of any easement. The owner of any lot
which has an easement shall maintain the easement area at his or her
expense, except for improvements for which the Association or a public
authority or private utility is responsible. All set backs must at a
minimum meet the ordinances, rules and regulations of the governing
authority. Declarant reserves the right, however, to impose more
restrictive front, rear and side yard setbacks as necessary to protect
and enhance the character of Willow Creek Heights.

4). Offensive Activities

(Page 11)

No noxious or offensive activity shall be carried on
upon any lot, nor shall anything be done, grown or placed upon any lot
which interferes with or jeopardizes the enjoyment of other lot owners
within this P.U.D..

5). Animals

No animals, livestock or poultry of any kind shall be
raised, bred or kept on any lot, except that a reasonable number of
dogs, cats or other household pets may be kept provided that they are
not kept, bred Or maintained for commercial purposes and are reasonably
controlled so as not to be a nuisance.

6). Signs

No signs shall be erected or maintained on any lot
(excluding Willow Creek Heights entry monument signs) except that not
more than one “For Sale” sign placed by the owner, Declarant or by a
licensed real estate agent, consistent with controlling governmental
ordinances, may be temporarily displayed on any lot. This restriction
shall not prohibit the temporary placement of “political” signs on any
lot by an owner.

7). Parking

Parking of boats, trailers, motor homes, motorcycles,
trucks, truck-campers and like equipment shall not be allowed on any
part of the property nor on public streets, common property, or alleys
adjacent thereto excepting only within the confines of an enclosed
garage. Each dwelling must have off street parking spaces for at least
four vehicles. Garage bays may be counted for the purpose of meeting
this requirement. No owner shall permit any vehicle of any kind
including without limitation, boats, trailers, motor homes,
motorcycles, trucks, truck campers, etc. to be abandoned or to remain
parked upon any lot, the common property, alley or street for a period
in excess of forty-eight (48) hours. The Declarant or appointed agent
of the Homeowners Association may give written notice to anyone
violating these parking conditions by leaving said notice on the
offending vehicle. If no corrective action is taken within 24 hours
after the second notice is left on the offending vehicle the declarant
or agent may cause the offending vehicle to be towed at the owners sole

8). Private Streets or Alleys

All private driveways, streets or alleys shall be
separated from public rights of way and common property tracts by
standard driveway approaches.

9). Rubbish and Trash

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(Page 12)

No lot, open space, common property, street or alley
shall be used as a dumping ground for trash or rubbish of any kind. All
garbage or other waste shall be kept in appropriate sanitary containers
for proper disposal and out of public view. Yard rakings, debris and
dirt resulting from landscaping work shall not be dumped onto streets,
open space, common property, alleys, any lot or adjacent property.

10). Temporary Structures

No structure of a temporary character, trailer, motor
home, basement, tent, shack, garage, barn or other outbuilding shall be
used on any lot at any time as a residence.

11). Utilities

No outdoor overhead wire or service drop for the
distribution of electric energy or for telecommunication purposes, nor
any pole, tower, or other structure supporting said overhead wire shall
be erected, placed or maintained within this P.U.D.. All owners of lots
within this P.U.D., their heirs successors and assigns shall use
underground wires to connect their premises and the structures built
thereon to the underground electric, T. V. cable, or telephone utility
facilities provided.

12). Completion of Construction

The construction of any building on any lot,
including private lot drainage, painting and all exterior finish shall
be completed within eight (8) months from the beginning of construction
so as to present a finished appearance when viewed from any angle. In
the event of undue hardship due to weather conditions, this provision
may be extended for a reasonable length of time upon written approval
from the Architectural Control Committee.

13). Landscape Completion

All front, rear and side yard landscaping must be
completed pursuant to a landscaping plan approved by the Architectural
Control Committee. The landscaping on all front yards and on corner
lots side yards must be installed upon substantial completion of the
residence. All remaining landscaping must be completed within 6 months
of occupancy of the dwelling. In the event of undue hardship due to
weather conditions, this provision may be extended for a reasonable
time, but only after written application is made to the Architectural
Control Committee and the Committee’s approval is obtained. Landscaping
plans which include vinyl clad cyclone fencing shall incorporate plant
materials designed to buffer or soften said fencing from exposure to
any street or common area.

(Page 13)

14). Fences, Hedges, Walls and Retaining Walls

No fence, hedge, wall or retaining wall shall be
erected without prior written approval of the Architectural Control
Committee as to design, size, color, location and materials. Washington
County code regulates all fence heights depending on individual lot
configuration and topography to assure proper sight and visibility
goals are achieved. No fence or hedge may be placed forward of the
dwellings front elevation building footprint. No fence or hedge may be
placed in a side yard adjacent to a public street without approval of
the Architectural Control Committee. Washington Counly Code limits
combinations of fences and retaining walls to a maximum of ten (10)
feet in height (six foot fence and four foot wall) except as otherwise
permitted by an approved variance.

15). Antennas and Service Facilities

No exterior antennas or aerials shall be permitted
unless required for reception and then only as approved by the
Committee. Clothes lines and other service equipment shall be screened
so as not to be viewed from any street. No high-speed equipment or
satellite dish antennas shall be allowed on site without Declarant or
assigns prior approval. Approval may be subject to communication
systems provider agreements and easement restrictions. Committee must
approve screening prior to installation.

16). Exterior Materials

Exterior materials must be approved for use by the
Architectural Control Committee and in accordance with any provisions
contained in a purchase agreement for any lot within this P.U.D. All
Roofing material is to be the equivalent of at least 25 year
architectural grade asphalt composition and must be approved by the
Architectural Control Committee. Exterior Siding must be approved by
the Architectural Control committee. Dwellings shall be Double Wall
Construction on all elevations. T-lll or other pressed wood sheet
siding shall not be allowed. Windows shall be wood, vinyl clad wood or
vinyl with sight lines equivalent to wood. In appropriate circumstances
the Architectural Control Committee may approve other materials if
necessary to facilitate design, provided they are in keeping with the
character of Willow Creek Heights

17). Exterior Finish

The exterior finish of all construction on any lot
shall be designed, built and maintained in such a manner as to blend in
with the existing structures and landscaping within this P.U.D..
Exterior colors must be approved by the Architectural Control
Committee. Exterior trim, fences, doors, railings, decks, eaves,
gutters, exhaust pipes and exterior finish on garages and other
accessory buildings shall be designed, built and maintained to be
compatible with exterior of the structures they adjoin.

(Page 14)

18). Landscaping and Maintenance

Each Owner and Occupant of a lot or house in Willow
Creek Heights shall maintain at all times such Owner or Occupant’s lot
and improvements in an attractive, neat and good condition as provided
herein, at such Owner’s or Occupant’s expense. Required maintenance and
repair shall include without limitation: 1) maintenance of all parking
areas, private drives, curbs, and walkways in a clean and safe
condition, including cleaning and repairing as often as is necessary;
2) maintenance of landscaping in an attractive, neat, orderly, trimmed
and cut condition at all times, free of brush, weeds, and debris and in
compliance with the Street Landscaping Plan, to the extent such a plan
is applicable, including sidewalks and street trees (this provision
includes the area between the property line of any lot and nearest
curb); 3) cleaning maintenance, and replacement of any external
lighting fixtures and bulbs; and, 4) maintenance, repair and/or
replacement and care in an attractive and neat condition of exterior
building surfaces, their paint and/or stain, roofs, gutters, and

19). Window Coverings

Window coverings, curtains, shutters, drapes or
blinds, other than those of commercially produced quality, shall not be
permitted to be visible from any public or private street at any time
after occupancy of the dwelling.

20). Business and Commercial Activities

No trade, craft, business, profession, commercial or
similar activity of any kind shall be conducted on any lot, nor shall
any goods, equipment, vehicles, materials or supplies used in
connection with any trade, service or business be kept or stored on any
lot. Excepted from this general rule is the right of any homebuilder
and the Declarant to construct residences on any lot, to store
construction equipment and material on said lots in the normal course
of construction and to use any single family residence as a sales
office or model home for purposes of sales in this P.U.D. In addition,
the Declarant shall be permitted to maintain a sales trailer on any
unsold lot until all lots have been sold. This provision shall not be
construed to prevent or prohibit an owner from maintaining his or her
professional personal library, keeping his or her personal business or
professional records of accounts, handling his or her personal business
or professional telephone calls, or conferring with business or
professional associates, clients customers in his or her home. This
later provision is intended to recognize the right of an owner to
conduct a business based upon electronic communication devises or other
non-intrusive processes provided such a business does not rely upon or
cause increased traffic to or from the home site and does not involve
use of on-site employees.

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(Page 15)

21). Mail and Paper Delivery Boxes

Mail boxes and newspaper receptacles placed in front
of any lot shall be included in a single structure of a design approved
by the Architectural Control Committee unless otherwise dictated by the
U.S. Postal Service.

22). Swimming Pools

The location of a swimming pool on any lot must be
approved by the Architectural Control Committee. Adequate and Committee
approved safety fencing must be installed and properly maintained
around swimming pools.

23). Damage to Roads or Curbs During Construction

Any damage to roads, sidewalks, or curbs which occurs
during the course of construction of any kind on a lot shall be the
responsibility of that lot owner. Repair of such damage, if not
undertaken by the lot owner within 30 days of notice to correct may, at
their option, be undertaken by the Declarant or the Association if it
has been activated. The cost of such repair shall be billed to and
borne by the lot owner and shall be payable within 30 days aftcr it
becomes due. Failure to pay for any repair billed shall cause the lot
owner to be liable for interest at the rate of 15% per annum and costs
of collection including attorneys fees and such unpaid amounts shall
become a lien on the lot owned by the lot owner.

24). Sidewalks and driveways

All driveways shall extend from the edge of the
finished surface of streets in Willow Creek Heights to the surface of
the garage floor and shall be constructed of concrete and/or materials
acceptable to the Committee such as brick or cobblestones. No asphalt
driveways will be permitted. Sidewalks shall be installed by the owner
of each lot in compliance with the standards of the governing political


1). Architectural Review

No structure, including storage shelters, shall be
commenced, erected, placed or altered on any lot until construction
plans and specifications and a plat showing the nature, shape, heights,
materials, colors and proposed location of the structure or alteration
have been submitted to and approved in writing by the Architectural
Control Committee (Committee). It is the intention and purpose of this
covenant to assure quality of workmanship and materials, harmony of
external design with the existing structures as to

(Page 16)

location, topography and finished grade elevations,
to avoid plan repetition and to protect views from adjacent lots. In
all cases the Architectural Control Committees’ consent is required.

a). Major Construction

In the case of initial or substantial additional
construction of a dwelling the lot owner shall prepare and submit to
the Architectural Control Committee such plans and specifications for
the proposed work as the Committee may require. Materials required by
the Committee may include, but not necessarily be limited to the

(1). A plan indicating location of all
improvements including private drainage.

(2). A drawing showing elevations, exterior
materials and exterior color schemes of all improvements, including the
mailbox/newspaper structure and fencing;

(3). A drawing showing yard landscape design and
location including a description of plant materials in all front or
sideyards facing a street.

b). Minor Construction

In the case of minor additions or remodeling,
change of existing exterior color schemes or exterior materials,
greenhouse, swimming pool construction, or any other work not referred
to in a). above, the owner shall submit to the Committee such plans and
specifications for the proposed work as the Committee determines to be
necessary to enable it to evaluate the proposal.

c). Time for Rendering a Decision

The Architectural Control Committee shall render
its decision with respect to the proposed work within 10 days after it
has received all required materials.

2). Architectural Control Committee Decisions

The Committee may, at its sole discretion, withhold
consent to any proposed work if the Committee finds that the proposed
work would be inappropriate for the particular lot or incompatible with
the design standards that Declarant intends for the P.U.D.
Considerations such as site, shape, size, color, design, height, and
impairment of the view from other lots within this P.U.D. or other
factors which the Committee reasonably believes to be relevant, may be
taken into account by the Committee in determining whether or not to
consent to any proposed work.

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(Page 17)

3). Membership: Appointment and Removal

The Architectural Control Committee shall consist of
as many persons as the Declarant may from time to time appoint. The
Declarant shall keep on file at its principal office a list of names
and addresses of Committee members. A member of the Committee shall not
be entitled to any compensation for services performed pursuant to
these covenants. The powers and duties of such Committee shall cease
six (6) months after completion of construction of all dwellings on all
building sites within this project and the sale of said dwellings to
the initial owner/occupants. The Homeowners Association may assume the
role of the Committee only upon the termination of the Committees’
powers and duties as set forth in this paragraph.

4). Liability

Neither the Committee nor any member thereof shall be
liable to any owner, occupant, builder or developer for any damage,
loss, or prejudice suffered or claimed on account of any action or
failure to act by the Committee or a member thereof, provided that the
member has in accordance with actual knowledge possessed by him acted
in good faith.

5). Action

Except as otherwise provided herein, anyone member of
the Committee shall have power to act on behalf of the Committee
without the necessity of consulting the remaining members of the
Committee. The Committee may render its decisions only by written
instrument setting forth the action taken by the members consenting

6). Nonwaiver

Consent by the Committee to any matter proposed to it
within its jurisdiction under these covenants shall not be deemed to
constitute a precedent or waiver impairing its rights to withhold
approval as to any similar matter thereafter proposed or submitted to
it for consent.

7). Effective Period of Consent

The Committee’s consent to any proposed work shall
automatically be revoked one year after issuance unless construction of
work has commenced or the owner has applied for and received an
extension of time from the Committee.

8). Term and Amendment

(Page 18)

These covenants shall run with and bind all the
property within this P.U.D. for a term of twenty five (25) years from
the date this declaration is recorded, after which time they shall
automatically be extended for successive periods of ten (10) years.
This declaration or parts thereof can be terminated, revoked or amended
only by duly recording an instrument which contains the amendment or
the order of revocation or termination and which is signed by the
owners of seventy five percent (75%) of the platted lots except that
the Declarant shall retain the authority to make amendments until the
last lot is constructed upon.

(9). Enforcement

In the event of any violation of any of the
provisions of this declaration, the Declarant, the Association once it
controls the CC&R’S as set forth herein, or any other person or
persons owning real property within Willow Creek Heights may, at their
option, exercise the right to enforce these covenants by prosecuting
any proceeding at law or in equity necessary to prevent the violation
or to recover damages sustained by reason of such violation. Failure by
any party to enforce any covenant or restriction herein contained shall
in no event be deemed a waiver of the right to do so thereafter. In any
action successfully prosecuted to abate or recover damages for
violation of the provision of this declaration, the prevailing party
shall be entitled to recover all costs including reasonable attorney
fees incurred in such enforcement.

(10). Severability

Invalidation of any one of these covenants by
judgment or court order shall in no way affect any of the other
provisions which shall remain in full force and effect.

(11). Limitation of Liability of Declarant

Neither Declarant nor any officer or director thereof
shall be liable to any owner on account of action or failure to act by
Declarant in performing its duties or rights as herein set forth
provided that the Declarant has, in accordance with actual knowledge
possessed by it, acted in good faith.

(Page 19)

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