BYLAWS OF

TAYLOR’S RIDGE HOMEOWNERS’ ASSOCIATION

A Washington nonprofit Corporation

DATED AND EFFECTIVE

AS OF

June 7, 1999

1.0 OBJECT AND DEFINITIONS

1.1 Purpose

The purpose for which this the Taylor’s Ridge Homeowners’ Association (the
“Association”) is formed is to govern the relations of the Owners within that certain Plat
which is governed by the Declaration and Covenants, Conditions and Restrictions of
Taylor’s Ridge recorded with the Department of Records and Elections of King County,
Washington, under Recording No. 9503231227 as hereafter amended from time to time
(the “Declaration”).

1.2 Assent

All present or future Owners, present or future tenants, or any other person using
the facilities of the Properties in any manner, including guests and employees, are subject to
these Bylaws and the Declaration. The mere acquisition, rental or occupancy of any of a Lot
shall constitute assent to be bound by, and ratification of, these Bylaws.

1.3. Definition

The terms used in these Bylaws shall have the same meaning as in the
Declaration, unless specifically indicated to the contrary.

2. MEMBERSHIP, VOTING AND MEETINGS OF THE ASSOCIATION.

2.1 Matters Governed by Declaration

WITH REGARD TO VARIOUS MATTERS, INCLUDING MEMBERSHIP
MEETINGS AND VOTING, REFERENCE IS MADE TO THE DECLARATION
WHICH IS INCORPORATED HEREIN BY THIS REFERENCE.

2.2 Meetings of Members.

2.2.1 Annual Meetings.

The association shall hold a general meeting of the
Owners at least once every 12 months, on a date specified by the Board (the “Annual
Meeting”).

2.2.2 Special Meetings.

Special meetings of the members my be called at any
time by the President or by a majority of the Board or, upon written request of the owners
who are entitled to vote ten percent (10%) of the total votes of the Association.

2.2.3 Notice of Meetings.

Unless otherwise specifically provided in the
Declaration, or in the Articles or Bylaws, written notice of each meeting of the members
shall be given by, or at the direction of, the Secretary or person authorized to call the
meeting by hand-delivering or mailing a copy of such notice by first class United States
mail, postage prepaid, not less than fourteen (14) days nor more than sixty (60) days before
such meeting, to the mailing address of each Owner or to any other mailing address desig-
nated in writing by the Owner as appearing on the books of the Association, in accordance
with Section IX.2 hereof. Such notice shall specify the place, cay and hour of the meeting,
and the business to be placed on the agenda by the Board of Directors for a vote by the owners,
including the general nature of any proposed amendment to the Articles, Bylaws, any budget
or changes in the previously approved budget that result in a change in assessment obligation,
and any proposal to remove a director. In addition to the foregoing notice requirements, for
special the notice shall also inform the members of the purpose of the meeting. Presence at
any such meeting shall be deemed a waiver of any required notice, or defect therein.

2.2.4 Quorum.

Unless otherwise specifically provided in the Declaration, the
presence at the opening of a meeting of members or proxies entitled to vote or cast five lots
or thirty four percent (34%) of the votes of the Association shall constitute a quorum.
If a quorum is present at the opening of a meeting, it shall be deemed to exist throughout
the meeting. If the required quorum is not forthcoming at any meeting, another meeting may
be called, subject to the notice requirements set forth above, and the required quorum at
such subsequent meeting shall be one-half (1/2) of the required quorum of the preceding
meeting. No such subsequent meeting shall be held more than sixty (60) days following
the preceding meeting. Alternatively, 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, and the same five percent (34%) quorum requirement
shall apply to the reconvened meeting.

2.2.5 Majority Vote.

A majority of the votes entitled to be cast by members
present or represented by proxy at a meeting at which a quorum is present shall be necessary
and sufficient for the adoption of any matter voted by members unless a greater proportion
is required by the Declaration, the Articles or these Bylaws.

2.2.6 Proxies.

Votes may be cast in person or by proxy. Proxies shall be in
writing and the signatures must be witnessed or acknowledged. Proxies must be filed with
the Secretary before the appointed time of each meeting. No proxy shall be valid for a period
longer than 11 months after the date thereof.

2.2.7 Voting by Mail.

The Board may provide for voting of the member by mail
with respect to any particular election of Directors or with respect to adoption of any
proposed amendment of the Declaration, Articles or Bylaws, or with respect to any other
matter for which approval by Owners is required by the Declaration, Articles or Bylaws,
in accordance with the following procedure:

(a) In case of election of Directors by mail, the existing Directors shall advise
the Secretary in writing of the names of proposed Directors sufficient to constitute a full
Board and of a date at a least 50 days after such advice is given by which all votes are to be
received. The Secretary, within 5 days after such advice is given, shall mail written notice
of the number of Directors to be elected and of the names of the Board’s nominees to
all Owners. The notice shall state that any member may nominate an additional candidate
or candidates, not to exceed the number of Directors to be elected, by notice in writing
to the Secretary at the specified address of the principal office of the Association, to be
received on or before a specified date 15 days from the date the notice is mailed by
the Secretary. Within 5 days after such specified date the Secretary shall mail written
notice to all Owners, stating the following: (1) the names of Directors to be elected, (2)
the number of all persons nominated by the Board and by the members on or before said
specified date, (3) that each Owner may cast a vote by mail, and (4) 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 that date shall not be effective. All persons elected as Directors pursuant to such an
election by mail shall take office effective on the date specified in the notice for receipt
of such votes.

(b) In the case of a vote by mail relating to any other matter, the Secretary
shall mail written notice to all Owners which noitce shall (1) include a proposed written
resolution setting forth a description of the proposed action, (2) state that such persons are
entitled to vote by mail for or against such proposal and stating a date not less than 20
days after the date such notice shall have been mailed on or before which all votes must
be received, and (3) state that votes must be sent to the specified address of the principal
office of the Association. Votes received after the specified 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 voting
requirement is established by the Declaration or Bylaws for the matter in question.

(c) Hand delivery 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 2.2.7.

(d) For purposes of a vote by mail, quorum requirements shall be deemed
satisfied on the basis of the number of ballots timely submitted. If a sufficient number of
ballots are not received by the Association by the required date to either constitute a
quorum, or to approve a proposal, the Board may extend the date for solicitation of
ballots on further notice to all members of not less than ten (10) and no more than thirty
(30) days of the new date for counting of ballots. In the event all ballots previously cast
on the proposal shall be counted. No such vote may be extended by more than a total of
sixty (60) days.

2.2.8 Order of Business.

The order of business at all meetings of the Owners of
lots shall be as follows unless dispensed with on motion:

(a) Roll Call.
(b) Proof of Notice of meeting or waiver of notice.
(c) Reading of minutes of preceding meeting.
(d) Reports of Officers.
(e) Reports of committees.
(f) Election of Directors.
(g) Unfinished business.
(h) New business.
(i) Adjournment.

2.2.9 Suspension of Voting Rights.

During any period in which an Owner shall be in default in the payment of any
assessments levied by the Association or the Declarent, the voting rights of such Owner may
be suspended by the Board. Such voting right may also be suspended for a period not to exceed
sixty (60) days for violation of any provision of the Declaration, Articles, or Bylaws or the
rules and regulations of the Association. In the event voting rights are suspended, such vote(s)
shall not be counted for any purpose including for the purpose of determining whether a quorum
has been achieved or whether any required majority or supermajority has been achieved.

3. BOARD OF DIRECTORS

3.1. In General.

The affairs of the Association shall be governed by the Board of Directors
composed of three (3) members, who need not be members of the Association, (each a
“Director”). The Board’s powers are set forth in the Declaration. Until the Transition Date all
Directors shall be appointed by Declarant, and shall serve at Declarants’ pleasure.

3.2. Election; Term; Vacancies; Additional Provisions Regarding Board.

3.2.1. Term of Office.

At each first meeting after the Transition Date, the
members of the Association shall elect one (1) Director for a term of one (1) year, and one (1)
Director for a term of two (2) years, and one (1) Director for a term of three (3) years; and at
each annual meeting thereafter the members shall elect one (1) Director for a term of three
(3) years.

3.2.2. Nomination.

After termination of the Development Period, nomination
for election to the Board shall be made by a nominating committee appointed by the Board.
The selection of the nominating committee and the rules under which it will function shall be
determined from time to time by the Board. The nominating committee shall make as many
nominations for election to the Board as it shall in its descretion determine, but not less than the
number of vacancies to be filled. Nominations may also be made from the floor at any annual
meeting of the members or special meeting called for the purpose of electing Directors.

3.2.3. Election.

Election to the Board shall be by secret written ballot, on a non-
cumulative basis.

3.2.4. Vacancies.

Vacancies in the Board occurring after termination of the
Development period caused by any reason other than the removal of a Director by a vote of the
Association shall be filled by vote of the majority of the remaining Directors, even though they
may constitute less than a quorum; and each person so elected shall be a Director until a
successor is elected at the next annual meeting of the Association.

3.2.5. Removal.

After termination of the Development Period any member of
the Board of Directors may be removed with or without cause by the vote of a majority of the
total votes entitled to be cast at any meeting of the owners at which a quorum is present. In the
event of death, resignation or removal of a Director, his successor shall be selected by the
remaining Directors and shall serve for the unexpired term of his or her predecessor.

3.2. Meetings of the Board.

3.3.1. Organizational Meeting.

The first meeting of a newly elected Board shall
be held immediately following the annual meeting of the Association and no notice shall be
necessary to the newly elected Directors in order to legally constitute such meeting.

3.3.2. Regular Meetings.

Regular meetings of the Board may be held at such
time and place as shall be determined, from time to time, by a majority of the Directors, but at
least two such meetings shall be held each fiscal year and one such meeting shall be held
immediately following the annual meeting of Owners. Notice of regular meetings of the Board
shall be given to each Director, personally or by mail, or by telephone at least three days prior
to the day named for such meeting.

3.3.3. Special Meetings.

Special meetings of the Board may be called by the
President on three days notice to each Director, given personally, or by mail, or by telephone,
which notice shall state the time, place (as hereinabove provided), and purpose of the meeting.
Special meetings of the Board shall be called by the President or Secretary in like manner and
on like notice on the written request of at least two Directors.

3.3.4. Waiver of Notice.

Before, at or after any meeting of the Board, any
Director may, in writing, waive notice of such meeting and such waiver shall be deemed
equivalent to the giving of such notice. Attendance by a Director at any meeting of the Board
shall be a waiver of notice by him or her of the time and place thereof. If all the Directors are
present at any meeting of the Board, no notice shall be required and any business may be
transacted at such meeting.

3.3.5. Actions Taken Without Meeting.

The Directors shall have the right to
take any action in the absence of a meeting which they could take at a meeting by obtaining the
written approval of all the Directors. Any action so approved shall have the same effect as
though taken at a meeting of the Directors.

3.3.6. Quorum.

At all meetings of the Board, a majority thereof shall constitute
a quorum for the transaction of business, and the acts of the majority of the Directors present
at a meeting at which quorum is present shall be the acts of the Board. If, at any meeting of the
Board, less than a quorum is present, the majority of those present may adjourn the meeting from
time to time. At any such adjourned meeting, any business which might have been transacted at
the meeting as originally called may transacted without further notice. Attendance at any
meeting of the Board may be by telephone or in person.

3.3.7. Compensation.

No Director shall receive compensation for any serviced he
may render to the Association as a Director. However, any Director may be reimbursed for his
or her actual expenses incurred in performance of his or her duties.

3.3.8. Open Meeting.

Except as otherwise provided in RCW 64.38.035 as it
may be amended, all meetings of the Board of Directors shall be open for observation by all
owners of record and their authorized agents. The Board of Directors shall keep minutes of all
actions taken by the Board, which shall be available to all Owners. Upon the affirmative vote in
open meeting to assemble in closed session, the Board of Directors may convene in closed
executive session to consider personnel matters; consult with legal counsel or consider
communications with legal counsel; and discuss likely or pending litigation, matters involving
possible violations of the governing documents of the Association, and matters involving the
possible liability of an Owner to the Association. The motion shall state specifically the purpose
for the closed session. Reference to the motion and the stated purpose for the closed session
shall be included in the minutes. The Board of Directors shall restrict the consideration of
matters during the closed portions of meetings to only those purposes specifically exempted and
stated in the motion. No motion, or other action adopted, passed or agree to in closed session
may become effective unless the Board of Directors, following the closed session, reconvenes in
open meeting and votes in the open meeting on such motion, or other action which is reasonably
identified. The requirements of this paragraph shall not require the disclosure of information in
violation of law or which is otherwise exempt from disclosure.

4. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.

4.1. Powers.

In addition to the powers set forth in Declaration, the Board of Directors shall
have the powers to do all the following:

4.1.1. Adopt and amend bylaws and rules and regulations governing the members
and their guests, and penalties for the infraction thereof.

4.1.2. Exercise for the Association all powers, duties and authority vested in or
delegated to this Association and not reserved to the membership by other provisions of these
Bylaws, the Articles of Incorporation or the Declaration.

4.1.3. Declare the office of a Director to be vacant in the event such Director shall
be absent from three (3) consecutive regular meetings of the Board.

4.1.4. Employ a manager, an independent contractor, or such other employees as
they deem necessary, and to prescribe their duties.

4.1.5. Take any and all actions necessary to comply with and enforce the
provisions and requirements of the Declaration, the Articles of Incorporation and these Bylaws,
and all powers and rights as provided in the Declaration.

4.1.6. To the extent not inconsistent with the powers set forth in the Declaration
or the Bylaws, to take other action pursuant to the Association powers listed in RCW 64.38.020.

4.2. Duties.

It shall be the duty of the Board to do all of the following:

4.2.1. Cause to be kept a complete record of all its acts and corporate affairs and
to present a statement thereof to the members of the Association at the annual meeting of the
members.

All records of the Association, including the names and addresses of Owners and other occupants of the Lots, shall be available for examination by all Owners, holders of mortgages on the Lots, and their respective authorized agents on reasonable advance notice during normal working hours at the offices of the Association or its managing agent. The Association shall not release the unlisted telephone number of any Owner. The Association may impose and collect a reasonable charge for copies and any reasonable costs incurred by the Association in providing access to records.

4.2.2 Supervise all officers, agents and employees of the Association, and see
that their duties are properly performed.

4.2.3. Fix, levy and collect assessments as provided in the Declaration.

4.2.4. Adopt proposed regular or special budgets of the Association and schedule
a meeting of the members as herein described for consideration of the budget.

Within thirty (30) days after adoption by the Board of any proposed regular or special budget, the Board shall set a date for a meeting of the owners to consider ratification of the budget not less than fourteen (14) nor more than sixty (60) days after the Board mails a summary of the budget proposal to each Owner addressed to the Owner’s address last appearing on the books of the Association. Unless at that meeting the Owners of a majority of the total number of votes entitled to be cast (regardless of quorum) vote, in person or by proxy, to reject the budget, the budget is ratified, whether or not a quorum is present. In the event the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the Owners shall be continued until such time as the owners ratify a subsequent budget proposed by the Board of Directors.

4.2.5. Prepare or cause to be prepared annually a financial statement of the
Association.

If the annual assessments for the Association are fifty thousand dollars or more, the financial statements of the Association shall be audited at least annually by an independent certified public accountant, but the audit may be waived if sixty-seven percent (67%) of the votes cast by Owners, in person or by proxy, at a meeting of the Association at which a quorum is present, vote each year to waive the audit.

4.2.6. Cause the Common Maintenance Area, entry signs, and rights of ways to
be maintained.

4.2.7. Issue, or cause an appropriate officer to issue, upon demand by any person
or entity, a certificate setting forth whether or not any assessment has been paid.

A reasonable charge may be made by the Board for the issuance of these certificates. If a certificate states an assessment has been paid, such certificate shall be conclusive evidence of such payment.

4.2.8. Cause the expenses relating to the Common Maintenance Area to be paid
as appropriate.

4.2.9. Obtain insurance as it may deem appropriate.

4.2.10. Cause all officers or employees having fiscal responsibilities to be bonded,
as it may deem appropriate.

4.2.11. Cause the landscaping to be maintained as provided in the Declaration.

4.2.12. Perform any and all duties necessary to comply with the provisions and
requirements of the Declaration, the Articles of Incorporation and these Bylaws.

4.2.13. Notwithstanding the foregoing, the Board of Directors shall not act on
behalf of the Association to amend the Articles, to take any action that requires the vote or
approval of the owners, to terminate the Association, to elect members of the Board of Directors,
or to determine the qualifications, powers, and duties, or terms of office of members of the
Board; but the Board of Directors may fill vacancies in its membership of the unexpired portion
of any term.

5. OFFICERS.

5.1. 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. Members of the Board may
simultaneously serve as officers.

5.2. Election of Officers.

The officers of the Association shall be elected annually by the Board at the
organizational meeting of each new Board, and shall hold office at the pleasure of the Board.
Any person may hold concurrently any two 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.

5.3. 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 or her successor elected at any regular or
special meeting of the Board called for such purpose.

5.4. President.

The President shall be the chief executive officer of the Association. He or she
shall preside at all meetings of the Association and the Board. He or she 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
members of the Association from time to time as he or she may in his or her discretion decide is
appropriate to assist in the conduct of the affairs of the Association.

5.5. 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 or her inability for
any reason to exercise such powers and funtions or perform such duties.

5.6. Secretary.

The Secretary shall keep the minutes of meetings of the Board and minutes of
meetings of the Association; he or she shall have charge of such books and papers as the Board
may direct; and he or she shall in general perform all the duties incident to the office of
Secretary. The Secretary may 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 Lot
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.

5.7. Treasurer.

The Treasurer shall have responsibility for Association funds and shall be
responsible for keeping full and accurate records of all receipts and disbursements in books
belonging to the Association. He or she shall be responsible for the deposit of all monies 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.

5.8. 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.

5.9. 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.

6. OBLIGATIONS OF OWNERS.

6.1. In General.

Each owner shall always endeavor to observe and promote the cooperative
purposes for the accomplishment of which the Declaration was created and each Owner shall
comply strictly with all provisions of the Declaration.

6.2. Use of Common Maintenance Areas.

Each Owner shall use the Property in accordance with the purpose for which it
was intended without hindering or encroaching upon the lawful rights of the other Owners.

6.3. Compliance with Covenants, Bylaws, and Administrative Rules and Regulations.

Each member of the Association shall comply strictly with the Declaration, these Bylaws
and with the administrative rules and regulations adopted pursuant thereto, as they may be
lawfully amended from time to time, and with the covenants, conditions, and restrictions set forth
in the deed to his Lot.

7. AMENDMENTS AND CONFLICTS.

7.1. Amendments.

The Bylaws may be amended at any time by majority vote of the Board. Any lot
Owner or Owners who desire that these Bylaws be amended may propose amendments to the
Board. A majority of the Directors may cause a proposed amendment to be submitted to the
members of the Association for their consideration. If an amendment is proposed by Owners of
20% of more of the Lots, 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 for which timely notice may be given. 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 Lot Owners entitled to vote, after notice has been given to all persons
(including Mortgagees) entitled to receive notice of a meeting of the Association. These
Bylaws may not be amended so as to render them inconsistent with the Declaration.

7.2. Conflicts.

In the case of any conflict between the Articles of Incorporation and these
Bylaws, the Articles shall control; and in the case of any conflict between the Declaration and
these Bylaws, the Declaration shall control.

8. MORTGAGES.

8.1. Notice to Association.

An Owner who mortgages his or her lot shall notify the Association through the
Managing Agent, if any, or the President of the Board, giving the name and address of his or her
Mortgagee. The Association shall maintain such information in a book or list entitled
“Mortgagees of Lots.”

8.2. Notice of Unpaid Assessments.

The Association shall at the request of a Mortgagee of a Lot report any unpaid
assessments due from the owner of such Lot.

9. EVIDENCE OF OWNERSHIP, REGISTRATION OF MAILING ADDRESS AND
REQUIRED PROXIES.

9.1. Proof of Ownership.

Any person or Persons on becoming an Owner of a Lot shall furnish to the
Managing Agent or Board a photocopy of a certified copy of the recorded instrument vesting
that person with an interest or ownership, which instrument shall remain in the files of the
Association.

9.2. Registration of Mailing Address.

The Owner of each Lot 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 shall be furnished by such Owner
to the Secretary within five (5) days after transfer of title; such registration shall be in written
form and signed by all of the Persons consitituting such Owner or by such Persons as are
authorized by law to represent the interests of all such Persons. If no such address is registered
or if all the Owners cannot agree, then the address of the Lot shall be the registered address for
all purposes of this section. Registered addresses may be changed from time to time by a
similar designation.

9.3. Condition to Voting Right.

The requirements contained in this Section shall be first met before an Owner of a
Lot shall be deemed in good standing and entitled to vote at any annual or special meeting of
members, and the vote of any such Owner shall not be counted for any purposes, including for
the purpose of determining whether any quorum, majority or supermajority requirement has been
satisfied.

10. COMMITTEES.

10.1. Committees of Directors.

The Board may appoint one or more committees that consist exclusively of one or
more Directors. Such committees shall have and exercise, to the extent provided in the
resolution establishing the committee, the authority of the Board in the management of the
Association; but the appointment of any such committee shall not relieve the Board of its
ultimate responsibility for the administration and management of the Property.

10.2. Other Committees.

Other committees, not having or exercising the authority of the Board in the
management of the Association, may be appointed by President or the Directors, as they deem
appropriate.

11. CONFLICT WITH DECLARATION OF LAW.

These bylaws are intended to comply with and supplement the requirements of
RCW 24.03 and the Declaration. If any of these Bylaws conflict with provision of said
Statute which may not be altered by the governing documents of the Association; then the
provision of the Statute shall control. If any provision of the Bylaws conflict with the
provisions of the Declaration, the provision of the Declaration shall control.

The foregoing Bylaws have been adopted by the Board of Directors of the Taylor’s Ridge
Homeowners Association.

DATED this 7th day of June, 1999.

TAYLOR’S RIDGE HOMEOWNERS ASSOCIATION

a Washington Nonprofit Corporation

By: (Original signed by)
Dennis E. Thornton, President