With the approval of the SAPOA Board of Directors, the following officers certify that, to the best of their knowledge and belief, the bylaw amendments adopted on 1/3/98 by the voting membership of SAPOA are accurately presented in this document.

(Original documents signed by)

Sam Mrakovich. President    Marydee Countryman, Vice President    Don Pridham, Secretary

CONSTITUTION and BYLAWS of
Sunshine Acres Property Owners Association, Incorporated
(Adopted 10/27/80 and 2/27/93. Amended 7/17/93, 7/9/94 and 1/3/98.)

TABLE OF CONTENTS       

CHAPTER I - Organization Name
    Section 1. The name of the organization shall be Sunshine Acres Property Owners Association, in accordance with the Articles of Incorporation dated October 28, 1980, as filed with the State of Washington's Secretary of State, hereinafter referred to as the "Association".
 
CHAPTER II - Objectives

    Section 1. The Association's purposes are:
        a. To maintain and preserve without profit the betterment of the area near Sequim, Washington known as Sunshine Acres.
        b. To preserve the character of Sunshine Acres as a private residential and recreational area in accordance with the provisions of the Sunshine Acres Deeds of        Trust and in accordance with provisions of FINDINGS OF FACT AND CONCLUSIONS OF LAW rendered by Judge Grant S. Meiner in Clallam County. Reference Cause Number 90-2-00443-3 dated December 20, 1991.
    Section 2. Limitations
Use of Association property is to be solely limited to property owners and their guests and shall be at their own risk.

CHAPTER III - Constitution
    Section 1. The AMENDMENT to the Protective Covenants of Plats One, Two, Three, Four, Five and the Industrial Plat of Sunshine Acres dated July 23, 1985 states:
"All property owners shall be members of the Sunshine Acres Property Owners Association, a non- Profit Corporation organized October 28, 1980. All property owners shall maintain current membership therein and hereby agree that Sunshine Acres Property Owners Association shall be the sole representative in all community matters."
Paragraph (13) of the Declaration of Protective Covenants for the Sixth and Seventh Plats of Sunshine Acres dated June 30, 1989 states:
"There is in existence a community organization known as SUNSHINE ACRES PROPERTY OWNERS ASSOCIATION. It was voluntarily formed by the lot owners in the various plats/divisions of Sunshine Acres. Said Association is a non-profit corporation, organized October 23, 1980. Membership in this Association is mandatory for all property owners in the development. Annual dues are collected by a treasurer, who is a lot owner and not affiliated with the developer. All property owners shall maintain current membership therein and said Association shall be the sole representative in all community matters. "
The Association recognizes that the Diamond Point Airport Association has trusteeship of the airport property, taxiways and taxiway easements on behalf of Sunshine Acres property owners.
    Section 2. The Sunshine Acres Property Owners Association is hereby established to pursue the objectives stated in Chapter II.  All activities carried out by the Association shall be for the furtherance of these objectives. This constitution empowers the members of the Association to elect a Board of Directors to conduct the business of the Association and provide guidance for the operation of the Association..
    Section 3. All powers not expressly assigned to the Board of Directors and the Officers are retained by the members of the Association.
    Section 4. The Association is empowered to establish conditions and classes of membership, assess dues and/or fees, promulgate rules, carry on the business of the Association in accordance with the Articles of Incorporation and in pursuit of the objectives above.
    Section 5. The objectives shall be accomplished in accordance with RCW Title 24, Washington Act governing
Non-profit Corporations and Associations Incorporated, and Bylaws established by the members.

ARTICLE I
Membership
All purchasers of property, both developed and undeveloped, in Sunshine Acres are required to be members of the Association and maintain current membership therein. Lot owners in Plats 1, 2, 3, 4, 5 and Industrial are so required by the 1985 Covenant amendment. Lot owners in Plats 6 and 7 are so required by their respective covenants.
    Section 1. The Association levies an annual membership fee on all property owners. (See Article III, Sections 1 and 2).
    Section 2. Each member is entitled to one vote for each lot of aggregate of lots owned. When more than one person holds a financial interest in any lot or aggregate of lots all such persons are eligible for membership. The vote for multiple owners of a lot or aggregate of lots shall be exercised as the owners determine, but in no event shall more than one vote be cast with respect to any lot or aggregate of lots; nor shall any individual owner cast more than one vote. Delinquent members are not entitled to vote. (See Article III, Section 2.)
    Section 3. Any current paid-up membership passes automatically to a subsequent purchaser of that property. However, if a member sells one or more of a multiple of lots, but retains at least one lot, this member retains membership and the purchaser of the lots is required to pay membership fees.
    Section 4. When the bylaws require that voting occur by a mail-in ballot, a ballot shall be sent prepaid by first class U.S. mail to the mailing address of each voting member or to any other mailing address designated in writing by the voting member. Twenty-nine percent (29%) of the voting members must return their ballots within thirty (30) days of its postmarked date to establish a quorum. Unless otherwise specified in the Bylaws, the issue(s) shall be approved providing that a simple majority of these ballots agree with the proposed action. The risk of a ballot not reaching the Association in time to be counted lies with the voting member, not the Association.
    Section 5. Each member is obligated to keep the Association apprised of his/her current mailing address. Section 6. Under no circumstances will proxy votes be allowed.

ARTICLE II

Membership Voting Rights
    Section 1. Membership dues and fees shall be determined by the Board and ratified via a mail-in ballot as described in Article I, Section 4.
    Section 2. The annual membership dues shall be payable September 1st and cover the period through the following August 31st. Members will be reminded in a newsletter when dues are payable and will be granted a forty five day grace period. Any member not paying dues by October 15 will be delinquent and ineligible to vote.
    Section 3. Membership dues and fees are based on the intended use of the Sunshine Acres Property Owners Association facilities as residential and recreational areas. Any functions which would increase cost of insurance, maintenance, etc., in the judgment of the Board, shall be the responsibility of the person(s) generating those added costs.

ARTICLE III
Membership Dues and Fees
    Section 1. Membership dues and fees shall be determined by the Board and ratified via a mail-in ballot as described in Article II, Section 4.
    Section 2. The annual membership dues shall be payable September 1st and cover the period through the following August 31st. Members will be reminded in a newsletter when dues are payable and will be granted a forty five day grace period. Any member not paying dues by October 15 will be delinquent and ineligible to vote.
    Section 3. Membership dues and fees are based on the intended use of the Sunshine Acres Property Owners Association facilities as residential and recreational areas. Any functions which would increase cost of insurance, maintenance, etc., in the judgment of the Board, shall be the responsibility of the person(s) generating those added costs.

ARTICLE IV
Elections
    Section 1. Prior to the July annual meeting, the Board will appoint a Nominating Committee composed of one Board member as Committee Chairperson and two members at large.
    Section 2. This committee shall, at the annual general meeting present a slate of voting members to fill the positions on the Board. Additional nominations for the Board will be solicited from the floor. All nominees shall have been contacted by the Committee and agree to serve if elected.
    Section 3. Ballots shall be mailed by the Election Committee to all voting members within ten (10) days after the annual meeting. The Election Committee shall consist of the Association Secretary and at least two (2) voting members at large (not Board appointed). Committee members will elect the chairperson. (See Article VII, Section lb.)
    Section 4. Ballot mail-outs shall contain: Instructions, the Ballot prefolded three (3) times to be sealed in the plain inner envelope (stamped "BALLOT") after voting. It will also include the return envelope with the Sunshine Acres Property Owners Association address printed on it as well as the voting members return name and address is required.  The return envelope will also be stamped "BALLOT" to insure its unopened delivery to the Election Committee. (See Article VII, Section 3h.)
     Section 5. Ballots will be opened and counted the day following the ballot return date. The date, time and place of the ballot count will be clearly stated on the ballot form. The procedure is as follows:
        a. The name and address required on the return envelope is checked against the list of qualified voters.
        b. The voter is checked off on the list as having voted.
        c. The inner envelope containing the ballot is removed from the return envelope.
            The return envelopes are kept to be counted for verification of the number of votes cast.
        d. The inner envelope is opened and the folded ballot is removed and placed, still folded, into a     receptacle.
         e. When all inner envelopes have been processed, the folded ballots are taken from the receptacle, unfolded and the votes are counted.
        f. The number of total ballots should agree with the number of outer envelopes received. The ballots shall be tabulated with any voting member wishing to observe the count. The candidates securing the highest number of votes shall be declared elected and shall take office at the September Board meeting.
    Section 6. In the case of a tie, the decision shall be made between candidates by the flip of a coin. The loser shall be the first alternate for appointment to the Board should a vacancy occur before the next election. All ballots must be held for forty-five (45) days after the election.

ARTICLE V
Recall of Officer(s) Procedure
    Section 1. A Recall petition must be signed by a minimum of ten percent (10%) of voting members. When complete, it shall be presented to the Secretary of the Board, who will check it for validity.
    Section 2. If valid, the Board shall have a minimum of ten (10) days and a maximum of twenty (20) days to call a special general meeting to provide a hearing if requested by the named member.
    Section 3. The Board shall mail a ballot per Article II, Section 4, within ten (10) days of the hearing, or if no hearing was requested by the named member(s), within thirty (30) days of receipt of a valid recall petition. If two- thirds (2/3) of the votes cast favor the recall action, the officer(s) shall immediately be removed from office and his/her position(s) shall be declared vacant until refilled by temporary appointment or election of a new candidate(s). (See Article IV, Section 6.)

ARTICLE VI
  Officers, The Board of Directors, Committees
    Section 1. The Board of Directors shall consist of seven (7) directors who must be voting members of the Association. A President and Vice-President shall be elected from among the Board at the September meeting of the Board of Directors following the annual general membership meeting. The Board will also appoint a Secretary and Treasurer, who may be an ex-officio member. Officers of the Board will serve one (1) year in those positions. Transition to a seven (7) member Board of Directors shall be as follows:
        a. Following the 1992 annual general membership meeting and election for the Board of Directors, the three (3) candidates receiving the highest number of votes shall be declared elected and fill the vacant chairs in that order; highest votes to the longest term.
    Section 2. Board members shall serve staggered terms of three (3) years each unless removed from office as provided in Section 3 below, or Article V (Recall). No elected officer or Board member may serve more than two (2) consecutive terms in office.
    Section 3. If a Board member, unless excused by the Board, fails to attend three (3) consecutive Board meetings or does not attend fifty percent (50%) of Board meetings in any six (6) month period, the President may request resignation. If such, member does not submit a written resignation; membership may be declared vacant by a vote of not less than two-thirds (2/3) vote of the Board members at a Board meeting.
    Section 4. In the event of a vacancy on the Board the remaining members of the Board shall appoint a temporary replacement to serve until the next annual election of Board members which shall occur by mail-in ballot in accordance with procedures set forth in Article II, Section 4.
    Section 5. The Board has the authority to act on any and all matters concerning the Association. Proposed obligations of the Association in excess of one-hundred dollars ($100.00) must be approved by the Board before they are incurred. All checks, vouchers or withdrawal slips must bear the signature of ANY TWO (2) of the officers. (See Article XI.)
     Section 6. Standing Committees shall be appointed at the discretion of the Board for:
        a. Bylaws
        b. Budget and Finance
        c. Audits
        d. Maintenance
        e. Election (See Article IV, Section 3.)
        f. Social/Recreation Activities
        g. Architectural Liaison
        h. Beach Road
 The chairperson of these committees will report to the Board.

ARTICLE VII
  Duties of Officers and Board Members
    Section 1. The President shall:
        a. Preside at the meetings of the Association and the Board of Directors.
        b. Appoint all committees with Board approval, except as otherwise provided in these Bylaws. (See Article IV, Section 3.)
        c. Act as an ex-officio member thereon and perform all other duties that properly pertain to the office.
        d. Cast a vote to decide the outcome of any tie vote.
    Section 2. The Vice-President shall:
        a. Preside as President in the absence of the President.      
    Section 3. The Secretary shall:
        a. Take the minutes of all meetings.
        b. Make an accurate record of the proceedings both by minutes and electronic tape. The tapes are to be retained for one year.
        c. Conduct correspondence at the direction of the Board.
        d. Collect and record all bills before submitting them to the Treasurer.
        e. Make available at cost, current rules, regulations, fee schedules, etc.
        f. Keep, maintain, retain and transfer intact all official records, including computer stored data of the Association to his or her successor.
        g. Perform all other duties that properly pertain to the office.
        h. Date ballot envelopes, unopened as received and using great care, turn them over to the Elections-Committee Chairperson as soon as possible.
    Section 4. The Treasurer shall:
        a. Receive all Association monies and deposit these in Association accounts maintained in a federally insured depository. The Treasurer shall further deposit donations specific to the Beach Road, together with any percentage of annual dues received under Article XI, Section 4, into a separate account maintained in a federally insured depository dedicated for funds specific to the Beach Road.
        b. Make all authorized disbursements.
        c. Keep accurate records of all transactions (using conventional bookkeeping methods) and report the
financial condition at each regular Board meeting and at each general membership meeting.
        d. Prepare and file all reports as required by governmental agencies.
        e. Keep, maintain, retain and transfer intact, all official financial records and documents including computer
    stored data, to his or her successor.
        f. Perform all other duties that properly pertain to the office.
    Section 5. The duties of the Board are:
        a. To act on all matters of policy.
        b. To act in a judicial capacity on violations of Association rules.
        c. To protect the Association's interest and safeguard its welfare.
        d. To submit its findings and recommendations to the membership.
        e. To cause the records to be audited and testified thereto annually.
        f. To propose regulations deemed necessary and recommend their adoption by the Association.
        g. Purchase liability insurance as required. Insurance policies shall be reviewed annually. A copy of the current policy shall be made available at no cost to any member or property owner upon request.
        h. To exercise reasonable diligence in seeking written membership opinions and input regarding significant questions generated by members.    .
        i. To exercise reasonable diligence in providing the following service functions in support of plat architectural activities:
            - Conduct balloting for the election of Plat Architectural Representatives
            - Communicate alleged covenant infractions, as reported by the affected Plat Architectural Representative,to property owners of the plat.
            - Communicate the existence of Sunshine Acres covenants to new property owners.
            - Send a letter of concern, on behalf of Sunshine Acres property owners, to anyone who violates a covenant, as reported by the affected plat Architectural Representative and verified by the SAPOA Board.
            - Provide limited financial support to Architectural Representatives to cover expenses such as stationery supplies, postage, reproduction, etc., related to their function.
            - Maintain a file of Architectural Records for all plats.
        j. An annual budget shall be prepared by the Budget and Finance Committee, and approved by the Board. The Board shall mail a ballot, per Article II, Section 4, for ratification by members. The Chairperson of the Budget and Finance Committee shall present the results of the vote on the annual budget at the July general membership meeting.
        k. Within thirty days after the adoption by the Board of any proposed regular or special budget of the Association, the Board shall set a date for a meeting of the members to consider ratification of such regular or special budget not less than 14 nor more than 60 days after the mailing to the members of notice of said meeting and a summary of said budget.
         l. The board of directors shall not act on behalf of the association to amend the articles of incorporation, 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 of directors; but the board of directors may fill vacancies in its membership of the unexpired portion of any term.
        m. To conduct mail-in voting procedures set forth in Article II, Section 4.
        n. To delegate none of the powers of the Board or officers to other persons or to a managing agent.
    Section 6. Four (4) Board members shall constitute a quorum at a Board meeting. Once a quorum is
established, it shall be considered established until the meeting is adjourned.
    Section 7. The Board shall provide an Annual Report including the Association's annual financial audit to be furnished at cost to any property owner. This report will be submitted for approval at the July annual general meeting and be posted and available for distribution as soon as possible thereafter.
    Section 8. All written records of any nature maintained by the Association, its board or its committees, shall be available for examination by all owners, holders of mortgages on lots, and their respective authorized agents on reasonable advanced notice during normal working hours at the usual place of business 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 assets or records.

ARTICLE VIII
Meetings
    Section 1. Meetings of the general membership shall be held in the months of January (Semi-annual) and July (Annual). The Board shall establish the date, time and location of these meetings and notify the membership not less than 14 nor more than 60 days in advance of the meeting: The notice of any general membership meeting of the Association shall be hand-delivered or sent prepaid by first class United States mail and shall state the time and place of the meeting and the business to be placed on the agenda by the Board for a vote by the owners, including the general nature of any proposed amendment to the articles of incorporation, 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.
    Section 2.
        a. In addition to the two general membership meetings, the Board shall hold Board meetings as required. Members will be notified at least ten (10) days in advance. The Board shall issue four quarterly newsletters per annum.
        b. Upon the affirmative vote in an open Board meeting to assemble in closed session, the Board may convene in closed executive session to consider personnel matters; consult with legal counselor 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 shall restrict the consideration of matters during the closed portions of meetings only to those purposes specifically exempted and stated in the motion. No motion or other action adopted, passed, or agreed to in closed session may become effective unless the Board, 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 subsection shall not require the disclosure of information in violation of law or which is otherwise exempt from disclosure.
    Section 3. Unless stated otherwise in the Bylaws, the Association's meetings shall be conducted according to the most recent Revised Edition of Robert's Rules of Order.
    Section 4. Special general membership meetings may be called by the President, a majority of the Board, or as requested in writing by ten percent (10%) or more of the voting members. The Board must provide prompt notice either hand-delivered or sent prepaid by first class mail of any special meeting and its agenda. Any such meeting shall be held more than 14 days, but within thirty (30) days, after the postmark date of the mailing. Such notice shall be mailed no later than ten (10) days after the petition of request is received by the Board. and shall state the time and place of the meeting and the business to be placed on the agenda for a vote.
    Section 5. A quorum at a general membership, or special membership, meeting shall consist of at least ten percent (10%) of the voting members of the Association present in person, including at least four (4) Board members. After a quorum is established, it shall be considered established until this meeting is adjourned.
    Section 6. Special or emergency meetings of the Board may be called by the President, or at the written request of any three Board members. All Board members must receive a minimum of three full days (72 hours) notice of the time, date, place and agenda of the meeting, in writing or by Fax.
    Section 7. The Board may not approve or vote upon any Board business by telephone. Such action can only be conducted at formal Board meetings.

ARTICLE IX
Association Address
    Section 1. No member shall give the name of the Association in any advertisement or use the address of the Association on any personal business. A post office box shall be maintained at the Sequim Post Office (98382) as the official address of the Association. The President, Secretary and Treasurer shall be responsible for the Post Office box keys.
    
ARTICLE X
Association Property
    Section 1. Property of the Association includes all money and other assets. The Association or its managing agent shall keep financial and other records sufficiently detailed to enable the Association to fully declare to each member the true statement of its financial status.
    Section 2. Association property is for the use of all members and no member may convert Association property for his own private or commercial use or the private or commercial use of others excepting as may be approved by the Board. Unauthorized or unlawful use of, or removal of, Association property shall be subject to disciplinary or legal action.
    Section 3. The Association is not responsible for loss or damage to articles of value left on Association premises.

ARTICLE XI
Insurance, Liability and General Finances
    Section 1. As deemed by the Board, any necessary liability insurance shall be purchased by the corporation. insurance policies shall be reviewed annually. A copy of the current policy shall be made available at cost to any member or property owner upon request.
    Section 2. Budget items may not be exceeded by more than ten percent (10'%) without prior approval via mail-in ballot in accordance with procedures set forth in Article II, Section 4. 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 renewed until such time as the owners ratify a subsequent budget proposed by the Board.
        a. Emergency expenditures may be approved by a majority of the Board, but not to exceed two hundred fifty dollars ($250.00) for anyone item per annum.
        b. The annual budget shall include a line item of not more than $200 to provide the service functions listed in Article VII, Section 5.i., after Board approval, in support of plat architectural activities; except that direct costs of covenants changes shall be paid by the affected plat property owners.
     Section 3. The funds of the Association shall be kept in accounts in the name of the Association and shall not be comingled with the funds of any other association, nor with the funds of any manager of the Association or any other person responsible for the custody of such funds.
    Section 4. Donations specific to the Beach Road, together with any member approved percentage of annual dues, will be deposited to the separate account referred to in Article VII, Section 4.a. and used to maintain and/or improve the Beach Road and/or the Beach Road area.

ARTICLE XII
Parliamentary Authority
The rules contained in the current edition of The Scott, Foresman Robert's Rules of Order Newly Revised shall govern the Association in all cases to which they are applicable and in which they are not inconsistent with these bylaws and any special rules of order the Association may adopt.

ARTICLE XIII
Amendments
    Section 1. The Bylaws may be amended via a mail-in ballot per Article II, Section 4, provided that two-thirds of the members returning the ballot within 30 days of its mailing approve the proposed change. The mailed ballot shall contain a copy of the current bylaw(s) and proposed changes.
    Section 2. The President, and/or Vice-president and Secretary [with the approval of the Board] may prepare,
execute, certify and/or record valid amendments of Association governing documents.

ARTICLE XIV
Mediation and Arbitration
    Section 1. It is the intent of the Association to function in harmony with all individuals and groups in the community. Therefore, disputes arising from properties, operations or management shall be resolved, if possible, by mediation. Mediation may be initiated by written notice of complaint or dispute to or from the Board. In the event mediation is not successful, mandatory and binding arbitration shall be employed.
    Section 2. Arbitration shall be initiated by a party making a demand in writing upon another party for arbitration, stating the basis of the dispute and depositing such sum as may be required with the arbitrator agreed upon by the parties as a security deposit for arbitration fees.
    Section 3. The arbitrator shall determine procedural rules.
    Section 4. The prevailing party shall be entitled to. all costs and the losing party shall pay all fees and costs.
Results of the arbitration shall be final and binding. The prevailing party may apply to any appropriate court to enforce the arbitration award. The party paying the security deposit shall be entitled to its return should he/she prevail; if not, that deposit will be applied to offset arbitration fees.

ARTICLE XV
Invalidation
    Section 1. Should any part of these Bylaws or referenced material be found invalid by any court or at arbitration then ONLY that invalid part shall be deemed null and void.