EXHIBIT A TO MASTER DEED

CONDOMINIUM BYLAWS

OF

JOSLIN COVE TOWNHOMES

ARTICLE I

ASSOCIATION OF CO-OWNERS

1.1 Organization. Joslin Cove Townhomes, a residential condominium project located in the

City of Manistee, Manistee County, Michigan (the “Condominium”), shall be administered by an

association of co-owners (the “Association”) which shall be organized as a nonprofit corporation

under the laws of the State of Michigan. The Association will be responsible for the management,

maintenance, operation and administration of the common elements, easements and affairs of the

Condominium in accordance with the Master Deed and Bylaws of the Condominium, the Articles of

Incorporation, Bylaws, Rules and Regulations of the Association, and the laws of the State of Michigan.

1.2 Compliance. All present and future co-owners, mortgagees, lessees and all other persons

who may in any manner use, enter upon or acquire any interest in the Condominium Premises, or

any unit in the Condominium, shall be subject to and comply with the provisions of the Michigan

Condominium Act (Act 59, of the Public Acts of 19781 as amended), and the Condominium

Documents including but not necessarily limited to, any provision thereof pertaining to the use

and operation of the Condominium Premises and the property of the Condominium. The

acceptance of a deed or conveyance, the taking of a mortgage, the execution of a lease or the act

of occupancy of a unit, or presence, in the Condominium shall constitute an acceptance of the

provisions of these instruments and an agreement to comply therewith.

1.3 Purpose of Bylaws. These Bylaws govern the general operation, maintenance, administration, use

and occupancy of the Condominium, and all such activities shall be performed in accordance with the

provisions hereof.

ARTICLE II

MEMBERSHIP AND VOTING

2.1 Membership. Each co-owner of a unit in the Condominium, present and future, shall be a

member of the Association during the term of such ownership, and no other person or entity shall

be entitled to membership. Neither membership in the Association nor the share of a member in the

funds and assets of the Association shall be assigned, pledged or transferred in any manner, except as an

appurtenance to a unit in the Condominium.

2.2 Voting Rights. Except as otherwise provided in the Master Deed and in these Bylaws. The co-owners

of each unit shall collectively be entitled to one vote when voting by number and one vote, the value of

which shall equal the total percentage assigned to the unit or units owned by them in Article VI of the

Master Deed, when voting by value. Voting when required or permitted herein, or elsewhere in the

Condominium Documents, shall be by value, except in those instances where voting is specifically

required to be by number or both in value and in number, and no cumulation of votes shall be

permitted.

2.3 Persons Entitled to Vote. For each unit, the co-owners shall file a written certificate

designating one individual representative entitled to cast the vote for the unit and to receive all

notices and other communications from the Association. The certificate shall be signed by all the

record owners of the unit and filed with the Secretary of the Association. The certificate shall

state the name and address of the individual representative designated, the number or numbers of

the unit or units owned, the name and address of the person or persons, firm, corporation,

partnership, association, trust or other legal entity who is the co-owner thereof, and shall be

signed and dated by the co-owners of record. All certificates shall be valid until revoked, until

superseded by a subsequent certificate, or until a change occurs in the record ownership of the

unit concerned. The Developer shall, at any meeting, be entitled to cast a vote on behalf of each

unit it owns without submitting any proof of ownership.

2.4 Method of Voting. Votes on a specific issue may be cast in person. In addition, any person entitled to

vote at any meeting may also appear and vote via telecommunications equipment, or electronic voting

method as provided in the Association Bylaws, or appear and vote (either specifically on an issue or by

the general designation of a person to cast a vote) by written proxy. Proxies may be made by any person

entitled to vote and shall be valid only for the particular meeting designated, and any adjournment

thereof, and must be filed with the Association before the appointed time of the meeting.

2.5 Majority. At any meeting of the members at which a quorum is present, fifty-one percent

(51%) in value of the co-owners voting, whether in person, by telecommunications, electronic voting

method or by proxy, on any particular matter, shall constitute a majority for the approval of such matter,

except as otherwise required herein, by the Master Deed, or by law.

ARTICLE III

MEETINGS AND QUORUM

3.1 First Meeting of Members. The first meeting of the members of the Association may be convened

only by the Board of Directors and may be called at any time upon ten (10) days written notice to all

members. In no event, however, shall the first meeting be held later than a one hundred twenty (120)

days after legal or equitable title to fifty percent 50% of the Condominium units that may be created has

been conveyed to non-Developer co-owners; or (b) fifty-four (54) months after the first conveyance of

legal or equitable title to a Condominium unit to a non-Developer co-owner, whichever first occurs. The

Board of Directors may call meetings of members of the Association for informational or other

appropriate purposes before the first meeting of members, but no such meeting shall be construed as

the first meeting of members. Before the first annual meeting, the Developer shall appoint all directors.

3.2 Advisory Committee. The Developer shall establish an Advisory Committee of non-

Developer members upon the passage of (a) one hundred twenty (120) days after the legal or

equitable title to one-third (1/3) of the Condominium units that may be created has been

conveyed to non-Developer co-owners; or (b) one ( 1) year after the initial conveyance of legal

or equitable title to a Condominium unit to a non-Developer co-owner, whichever first occurs.

The Advisory Committee shall meet with the Board of Directors from time to time to facilitate

communication with the non-Developer members and to aid in transferring control from the

Developer to non­Developer members. The Advisory Committee shall be composed of not less

than one (1) nor more than three (3) non-Developer members, who shall be appointed by the

Developer in any manner it selects, and who shall serve at the pleasure of the Developer. The

Advisory Committee shall automatically dissolve following the election of a majority of the

Board of Directors by non­Developer co-owners. Reasonable notice of such meetings shall be

provided to all members of the Committee, and such meetings may be open or closed, in the

discretion of the Board of Directors.

3.3 Annual Meetings of Members. Following the first meeting of members and in addition to

subsequent meetings called for the purpose of electing directors, as provided in Section 4.1

below, an annual meeting of the members shall be held each year at the time and place specified

in the Association Bylaws. At least ten (I 0) days before the date of an annual meeting, written

notice of the time, place and purpose of such meeting shall be sent by first-class mail, postage

prepaid or by email, to each person entitled to vote at the meeting.

3.4 Special Meetings of Members. It shall be the duty of the President to call a special

meeting of the co-owners upon a petition signed by one-third (I/3), in number, of the co-owners

and presented to the Secretary of the Association or upon the direction of a majority of members

of the Board of Directors. Notice of any special meeting shall state the time and place of such

meeting and purposes thereof and shall be given at least ten (10) days before the date of such

meeting. No business shall be transacted at a special meeting except as stated in the notice.

3.5 Quorum of Members. Unless otherwise provided herein, the presence, in person or by

proxy, of a majority in value of the co-owners entitled to vote shall constitute a quorum of

members. If a quorum shall not be present at any meeting, the members present may adjourn the

meeting for not more than thirty (30) days.

ARTICLE IV

ADMINISTRATION

4.1 Board of Directors. The business, property and affairs of the Association shall be

managed by a Board of Directors to be elected and to serve in the manner set forth in the

Association Bylaws. Until the initial meeting of members as provided in Section 3.1, hereof, the

Directors designated by the Incorporator, or their successors appointed by the Association as

provided in the Association Bylaws, shall serve. The entire Board of Directors shall be elected or

appointed at the first meeting of the Association or by electronic voting method, each annual meeting of

the Association and at any meeting of the Association called by the Board of Directors for the particular

purpose of electing directors, in the following manner:

a) After conveyance of legal or equitable title to non-Developer co-owners of

twenty-five percent (25%) of the units that may be created, one (1) director and not less

than one-third (l/3) of the Board of Directors of the Association shall be elected by

non­Developer co-owners. After conveyance of legal or equitable title to non-Developer

co­ owners of sixty-six percent (66%) of the units that may be created, not less than one-

half (1/2) of the Board of Directors shall be elected by non-Developer co-owners.

b) Notwithstanding the formula provided above, fifty-four (54) months after the first

conveyance of legal or equitable title to a non-Developer co-owner of a unit in the

Project, and if title to not less than seventy-five percent (75%) of the units that may be

created has not been conveyed, the non-Developer co-owners have the right to elect a

number of members of the Board of Directors of the Association equal to the percentage

of units they hold, and the Developer has the right to elect a number of members of the

Board equal to the percentage of units which are owned by the Developer and for which

assessments are payable by the Developer; provided, however, the Developer will be able

to designate one member until the Developer sells all units to third parties. This election

may increase, but shall not reduce, the minimum election and designation rights

otherwise established herein. Application of this provision does not require a change in

the size of the Board as set forth in the Association Bylaws.

c) If the calculation of the percentage of members of the Board that the non-

Developer co-owners have a right to elect hereunder, or if the product of the number of

members of the Board multiplied by the percentage of units held by the non-Developer

co­ owners results in a right of non-Developer co-owners to elect a fractional number of

members of the Board, then a fractional election right of 0.5 or greater shall be rounded

up to the nearest whole number, which number shall be the number of members of the

Board that the non-Developer co-owners shall have the right to elect. After application of

this formula, the Developer shall have the right to elect the remaining members of the

Board. Application of this provision shall not eliminate the right of the Developer to

designate at least one member as provided herein.

d) Whenever the non-Developer members become entitled to elect one (1) or more

additional directors pursuant to the above formula, the Board of Directors shall provide

due notice of a meeting at which an election of all the directors shall take place. The

Board of Directors shall schedule such meeting to occur no later than one hundred twenty

(120) days after the non-Developer members become so entitled or, if such meeting

would be the first meeting of the Association, as provided in Article ID, Section 3 .1,

above. A Board of Directors elected pursuant to these provisions shall serve until the

earlier of the next annual meeting of the Association or such time as it has been replaced

in accordance with the provisions of these Condominium Bylaws and the Association Bylaws.

4.2 Powers and Duties. The Association shall have all powers and duties necessary for the

administration of the affairs of the Condominium and may do all things which are not prohibited

by law or the Condominium Documents or required thereby to be done by the co-owners. The

powers and duties to be exercised by the Association through the Board shall include, but shall

not be limited to, the power and duty:

a) To develop an annual budget and determine amounts required for the operation

and affairs of the Condominium.

b) To manage and administer the affairs of and to maintain the Condominium, all

appurtenances thereto and the common elements, property and easements thereof.

c) To levy and collect assessments against and from the members of the Association

and to use the proceeds therefrom for the purposes of the Association, and to enforce

assessments through liens and foreclosure proceedings where, in the judgment of the

Directors is appropriate.

d) To carry insurance and to collect and allocate the proceeds thereof.

e) To restore, repair or rebuild the common elements of the Condominium, or any

portion thereof, and any improvements located thereon, after the occurrence of a casualty

and to negotiate on behalf of co-owners in connection with the taking of the Condominium, or any

portion thereof: by eminent domain.

f) To contract for and employ, supervise, and discharge, persons or business entities to assist in the

management, operation, maintenance and administration of the Condominium.

g) To make and amend reasonable rules and regulations consistent with the Michigan Condominium Act,

the Master Deed and these Condominium Bylaws affecting co­ owners and their tenants, guests,

employees and invitees concerning the use and enjoyment of the Condominium and to enforce such

regulations by all legal methods including, but not limited to, the imposition of fines and late payment

charges, eviction proceedings or legal proceedings (copies of all such regulations and amendments

thereto shall be furnished to all members and shall become effective ten (10) days after mailing or

delivery thereof to the designated voting representative, as provided for in Section 2.3 above, of each

member, and any such regulation or amendment may be revoked at any time at any duly convened

meeting of the Association by the affirmative vote of more than fifty percent (50%) of all members in

number and in value, except that the members may not revoke any regulation or amendment before the first meeting of the Association.

h) To own, maintain and improve, and to buy, sell, convey, assign, mortgage, license, rent or lease (as

landlord oi tenant) any real or personal property, including, but not limited to, any common elements or

unit in the Condominium, easements, rights-of-way or licenses or any other real property, whether or

not contiguous to the Condominium, for the purpose of generating revenues, providing benefit to the

members of the Association or in furtherance of any other appropriate purposes of the Association.

i) To borrow money and issue evidence of indebtedness in furtherance of any and all the purposes of

the business of the Association, and to secure those debts by mortgage, pledge or other lien on property

owned by the Association; provided, however, that any such action shall first be approved by the

affirmative vote of two-thirds (2/3) of all the members of the Association in value at a meeting of the

members duly called.

j) To establish such committees as it considers necessary, convenient or desirable and to appoint persons

thereto, for the purpose of implementing the administration of the Condominium and to delegate to

such committees any functions or responsibilities which are not by law or the Condominium Documents

required to be performed by the Board.

k) To enforce the provisions of the Condominium Documents, as amended from time to time, and to sue

on behalf of the Condominium or the members and to assert defend or settle claims on behalf of the

members with respect to the Condominium.

l) To do anything required of or permitted by it as administrator of the Condominium by the

Condominium Master Deed, these Bylaws or the Michigan Condominium Act. as amended from time to

time.

m) To provide services to co-owners.

n) In general, to enter into any kind of activity; to make and perform any contract and to exercise all

powers necessary, incidental or convenient to the administration, management, maintenance, repair,

replacement and operation of the Condominium and to the accomplishment of any of the purposes

thereof not forbidden, and with all powers conferred upon nonprofit corporations by the laws of the

State of Michigan. Provided, however, that, accept in the case of licenses, leases or rental arrangements

having a duration of one (1) year or less. neither the Board nor the Association shall, by act or omission,

abandon, partition, subdivide. encumber, sell or transfer the common elements. or any of them. unless

at least two-thirds (2/3) of the first mortgagees (based upon one (l) vote for each first mortgage owned)

and two-thirds (2/3) of the members in number and value have consented thereto. The granting of

easements for public utilities or other public purposes consistent with the intended use of the common

elements by the Condominium, shall not be considered a transfer for these purposes.

4.3 Managing Agent. The Board may employ, at a compensation established by it, a

management agent for the Condominium to perform such duties and services as the Board shall

authorize, including, but not limited to, the powers and duties set forth in Section 4.2 above.

Before the Transitional Control Date, the Developer, or any related person or entity, may serve as

managing agent if so appointed. In no event shall the Board be authorized to enter into any

contract with a management agent, or any contract providing for services by the Developer or its

affiliates, in which the maximum term is greater than three (3) years or which is not terminable

by the Association upon the Transitional Control Date or within ninety (90) days thereafter and

upon thirty (30) days written notice for cause. On the Transitional Control Date, or within ninety

(90) days thereafter. The Board of Directors may terminate a service or management contract

with the Developer or its affiliates. In addition, the Board of Directors may terminate any

management contract which extends beyond one (1) year after the Transitional Control Date by

providing notice of termination to the management agent at least thirty (30) days before the

expiration of the one (1) year.

4.4 Officers. The Association Bylaws shall provide the designation, number, terms of office, qualifications,

manner of election, duties, removal and replacement of the officers of the Association and may contain

any other provisions pertinent to the affairs of the Association not inconsistent herewith. Officers may be

compensated, but only after the affirmative vote of two thirds (2/3) of the members.

4.5 Actions Before First Meeting. Subject to the provisions of Section 4.3 above, all the

actions (including without limitation, the adoption of these Bylaws, the Association Bylaws, any

Rules and Regulations for the Association, and any undertakings or contracts entered into with

others on behalf of the Association) of the first Board of Directors of the Association named in

its Articles of Incorporation, or their appointed successors, before the first meeting of members,

shall be binding upon the Association in the same manner as though such actions had been authorized

by a Board of Directors duly elected by the members of the Association at the first or any later meeting

of members so long as such actions are within the scope of the powers and duties which may be

exercised by any Board of Directors as provided in the Condominium Documents.

4.6 Indemnification of Officers and Directors. The Association shall indemnify every Association director

and officer against all expenses (including attorney’s fees), judgments, fines and amounts paid in

settlement actually and reasonably incurred by him as a consequence of his being made a party to or

being threatened to be made a party to any threatened, pending or contemplated action, suit or

proceeding, whether civil, criminal, administrative or investigative, by reason of his being or having been

a director or officer of the Association, except in such cases where he is, adjudged guilty of willful and

wanton misconduct or gross negligence in the performance of his duties or adjudged to have not acted

in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the

Association and its members, and with respect to any criminal Action or proceeding, he is adjudged to

have had no reasonable cause to believe that his conduct was unlawful; provided that, if a director or

officer claims reimbursement or indemnification hereunder based upon his settlement of a matter, he

shall be indemnified only if the Board of Directors (with any director seeking reimbursement abstaining)

approves such settlement and reimbursement as being in the best interests of the Association and, if a

majority of the members request it. Such approval is based on an opinion of independent counsel

supporting the propriety of such indemnification and reimbursement. The foregoing right of

indemnification shall not be exclusive and shall be in addition to all other rights such director or

officer may have. The Board of Directors shall notify all members that it has approved an indemnification

payment at least ten (10) days before making the payment.

ARTICLE V

OPERATION OF THE PROPERTY

5.1 Personal Property. The Association shall be assessed as the person or entity in possession

of any tangible personal property of the Condominium owned or possessed in common by the

co-owners, and personal property taxes based thereon shall be treated as Expenses of

Administration as defined in Section 5.4 below.

5.2 Cost and Receipts to Be Common. All costs incurred by the Association in satisfaction of

any liability arising within, or caused by or in connection with, the common elements or the

administration of the Condominium shall be Expenses of Administration. All sums received as

proceeds of, or pursuant to, any policy of insurance carried by the Association securing the

interests of the co-owners against liabilities or losses arising within, caused by or connected with

the general common elements or the administration of the Condominium shall be receipts of

administration.

5.3 Books of Account. The Association shall keep or cause to be kept detailed books of

account showing all expenditures and receipts affecting administration of the Condominium.

The books of account shall specify the maintenance and repair expenses of the common elements

and any other expenses incurred by or on behalf of the Association of co-owners and shall be

open for inspection by the co-owners and their mortgagees during reasonable working hours on

normal working days at a place to be designated by the Association. The books of account shall

be reviewed at least annually and audited at such times as required by the Board of Directors by

qualified independent accountants. The cost of the review or audit, and all accounting expenses,

shall be Expenses of Administration. Any institutional holder of a first mortgage lien on any unit

in the Condominium shall, upon request, be entitled to receive a copy of the accountants report

within ninety (90) days following the end of the Associations fiscal year. At least once a year,

the Association shall prepare and distribute to each co-owner a statement of its financial

condition. the contents of which shall be defined by the Association.

5.4 Regular Assessments. The board shall establish an annual budget in advance for each

fiscal year for the Condominium. The budget shall contain a statement of the estimated funds

required to defray the Expenses of Administration for the forthcoming year, which shall mean

all items specifically defined as such in these Bylaws and all other common expenses. The

common expenses shall consist, among other things, of such amounts as the Board may consider

proper for the operation, management and maintenance of the Condominium Project to the extent

of the powers and duties delegated to it hereunder, and in the Master Deed, and shall include,

without limitation, amounts to be set aside for working capital of the Condominium, the cost of

fulfilling the Associations maintenance, repair and replacement responsibilities, management

wages, fees and salaries, common area utilities, common area landscaping maintenance and

replacement, common area cleaning, supplies, snow removal, licenses and permits, banking,

legal and accounting fees, insurance, and creation and maintenance of an appropriate reserve

fund. As provided in Section 5.11 below, an adequate reserve fund for maintenance, repair and

replacement of the general common elements must be established in the budget and must be

funded by regular assessments rather than by special assessments. The budget shall also allocate

and assess all Expenses of Administration against all co-owners in accordance with the percentage of

value allocated to each unit by the Maste Deed, without increase or decrease for the existence of any

rights to the use of the common elements. Any special common charges shall be allocated among the

units to which the limited common elements giving rise to the special charges appertain, based upon the

proportionate percentage of value allocated to each such unit in the Master Deed. The Board shall

advise each non-Developer co-owner in writing of the amount of common charges payable by him and

shall furnish copies of each budget on which such common charges are based to all co-owners, although

failure to deliver a copy of the budget to each co-owner shall not affect the liability of any co-owner for

any existing or future assessments. All assessments levied in accordance with the foregoing provisions of

this Section 5.4 shall be payable by the non-Developer co-owners in twelve (12) equal monthly

installments, commencing with acquisition of legal or equitable title to a unit by any means. The Board

may, in its sole discretion, elect to collect the regular assessments on a quarterly basis. Should the Board

at any time determine, in its sole discretion, that the assessments levied are or may prove to be

insufficient

(1) to pay the costs of operation and management of the Condominium, (2) to provide for the

maintenance, repair or replacement of existing common elements, (3) to provide additions to the

general common elements not exceeding Five Thousand and 00/100 Dollars ($5,000.00) annually, or (4)

to provide for emergencies, the Board shall have the authority to increase the general assessments or to

levy such additional assessment or assessments as it shall consider necessary. Such assessments shall be

payable when and as the Board shall determine. Any sums owed to the Association by any individual co-

owner may be assessed to and collected from the responsible co-owner as an addition to the regular

assessment installment next coming due. The discretionary authority of the Board to levy assessments

pursuant to this Section will rest solely with the Board for the benefit of the Association and the

members thereof and will not be enforceable by any creditors of the Association or its members.

5.5 Special Assessments. Special assessments, in addition to those provided for in Section

5.4 above, may be levied by the Board from time to time, following approval by the co­ owners

as hereinafter provided, to meet other needs, requirements or desires of the Association,

including, but not limited to, (1) assessments for capital improvements for additions to the

general common elements at a cost exceeding Five Thousand and 00/100 Dollars ($5,000.00) per

year, (2) assessments to purchase a unit upon foreclosure of the lien for assessments as described

in Section 5.6 hereof, and (3) assessments for any other appropriate purpose not described

elsewhere herein. Special assessments referred to in this Section (but not including assessments

referred to in Section 5.4 above, which shall be levied in the sole discretion of the Board) shall

not be levied without first being approved by two-thirds (213) of all members in value and in

number, which approval shall be granted only by a vote of the co-owners taken at a meeting of

the co-owners called in accordance with the provisions of Article hereof. The discretionary

authority of the Board to levy assessments pursuant to this Section will rest solely with the Board

for the benefit of the Association and the members thereof and will not be enforceable by any

creditors of the Association or its members.

5.6 Collection of Assessments. When used in this Section and Section S.12 below, and

wherever else appropriate in these Condominium Bylaws, the term assessment shall include all

regular quarterly and special assessments referred to in Sections 5.4 and 5.5 above and, in

addition, all other charges whatsoever levied by the Association against any co-owner. This

Section 5.6 is designed to provide the Association with a vehicle for collection.

Each co-owner, whether one or more persons, shall be and shall remain personally

obligated for the payment of all assessments levied with regard to his unit during the time that he

is the owner thereof. If any co-owner defaults in paying an assessment, interest at the maximum

legal rate shall be charged on such assessment from the due date and further penalties or

proceedings may be instituted by the Board in its discretion. The payment of an assessment shall

be in default if such assessment is not paid in full on or before the due date established by the

Board for such payment. In the event of default by any co-owner in the payment of any

installment of the annual assessment levied against his unit; the Association shall have the right

to declare all unpaid installments of the annual assessment for the pertinent fiscal year

immediately due and payable. The Association may also discontinue the furnishing of any

services to a co-owner in default upon seven (7) days written notice to such co-owner of its

intent to do so. A co-owner in default on the payment of any assessment shall not be entitled to

vote at any meeting of the Association so long as such default continues. The Board may, but

need not, report such a default to any first mortgagee of record; provided, however, that if such

default is not cured within sixty (60) days, the Association shall give the notice required by

Section 9.2 below. Any first mortgagee of a unit in the Condominium may consider a default in

the payment of any assessment a default in the payment of its mortgage. When a co-owner is in

arrears to the Association for assessments, the Association may give written notice of arrearage

to any person occupying his unit under a lease or rental agreement, and such person, after

receiving the notice, shall deduct from rental payments due the co-own.er the arrearage and

future assessments as they fall due and pay them to the Association. The deductions shall not be

a breach of the rental agreement or lease by the occupant. Unpaid assessments shall constitute a lien

upon the unit prior to all other liens except unpaid ad valorem real estate taxes and special assessments

imposed by a governmental entity and sums unpaid on a first mortgage of record. The Association may

enforce collection of delinquent assessments by a suit at law for a money judgment or by foreclosure of

the lien that secures payment of assessments. Each co-owner, and every other person, except a first

mortgagee, who from time to time has any interest in the Condominium, shall be considered to have

granted to the Association the unqualified right to elect to foreclose such lien either by judicial action or

by advertisement. The provisions of Michigan law pertaining to foreclosure of mortgages by judicial

action and by advertisement, as they may be amended from time to time, are incorporated herein by

reference for the purposes of establishing the alternative procedures to be followed in lien foreclosure

actions the rights and obligations of the parties to such actions. THE ASSOCIATION IS HEREBY

GRANTED WHAT IS COMMONLY KNOWN ASA POWER OF SALE. Further, each co­owner and every other

person, except a first mortgagee, who from time to time has any interest in the Condominium shall be

considered to have authorized and empowered the Association to sell or to cause to be sold the unit

with respect to which the assessment is delinquent and to receive, hold and distribute the proceeds of

such sale in accordance with the priorities established by applicable law. EACH CO-OWNER

ACKNOWLEDGES THAT AT THE TIME OF ACQUIRING TITLE TO HIS UNIT, HE WAS NOTIFIED OF THE

PROVISIONS OF THIS SECTION AND THAT HE VOLUNTARILY, INTELLIGENTLY AND KNOWINGLY WAIVED

NOTICE OF ANY PROCEEDINGS BROUOHT BY THE ASSOCIATION TO FORECLOSE BY ADVERTISEMENT THE

LIEN FOR NONPAYMENT OF ASSESSMENTS AND A HEARING ON SUCH FORECLOSURE BEFORE THE SALE

OF THE SUBJECT UNIT. Notwithstanding the foregoing, neither judicial foreclosure action nor a suit at law

for a money judgment shall be commenced, nor shall any notice of foreclosure by advertisement be

published, until the expiration of ten {10) days after the mailing of a written notice that an assessment,

or any part thereof, levied against his unit is delinquent, and the Association may invoke any of its

remedies hereunder if the default is not cured within ten (10) days after the date of mailing. The notice

shall be mailed by certified mail, return receipt requested, and postage prepaid, and shall be addressed

to the individual representative of the delinquent co-owner designated in the certificate filed with the

Association pursuant to Section 2.3 above, at the address set forth in such certificate or at his last known

address. The written notice shall be accompanied by a written affidavit of an authorized representative

of the Association that sets forth (i) the affiant capacity to make the affidavit, (ii) the statutory and other

authority for the lien, (iii) the amount outstanding (exclusive of interest costs, attorney’s fees and future

assessments), (iv) the legal description of the subject unit, and (v) the name of the co-owner of record.

The affidavit shall be recorded in the Office of the Manistee County Register of Deeds before the

commencement of any foreclosure proceeding, but it need not have been recorded as of the date of

mailing the notice as provided above. If the delinquency is not cured within the ten (10) day period, the

Association may take such remedial action as may be available to it hereunder or wider Michigan law. In

the event the Association elects to foreclose the lien by advertisement, the Association shall so notify

the individual representative designated above and shall inform such representative that he may

request a judicial hearing by bringing suit against the Association. The expenses incurred in collecting

unpaid assessments, including interest, costs, actual attorney’s fees (not limited to statutory fees) and

advances for taxes or other liens paid by the Association to protect its lien, shall be chargeable to the co-

owner in default and shall be secured by the lien on his unit. In a judicial foreclosure action, a receiver

may be appointed to collect a reasonable rental for the unit from the co-owner the thereof or any

persons claiming under him, and each co-owner hereby consents to the appointment of such a receiver.

The Association may purchase a unit at any foreclosure sale hereunder. If the holder of a first mortgage

on a unit in the Condominium obtains title to the unit as a result of foreclosure of the mortgage, deed in

lieu of foreclosure or similar remedy, or any other remedy provided in the mortgage, such person, and its

successors and assigns, or other purchaser at a foreclosure sale shall not be liable for unpaid

assessments chargeable to the unit which became due before the acquisition of title to the unit by that

person: provided, however, that those unpaid assessments shall be considered common expenses

collectible from all the unit owners including that person, its successors and assigns, and that all

assessments chargeable to the unit after the acquisition of title shall be the responsibility of that person

as provided above with respect to all co-owners.

5.7 Obligations of the Developer. The Developer, although a member of the Association, will not be

responsible for the payment of either regular or special assessments levied by the Association, except as

follow:

(a) Pre-Turnover Expenses. During the time that the Developer controls the Association, it will be its

responsibility to keep the books balanced, and to avoid any deficit in operating expenses. At the time of

the initial meeting of members, the Developer will be liable for the funding of any continuing Association

deficit incurred prior to the Transitional Control Date.

(b) Post-Turnover Expenses. After the Transitional Control Date has occurred, the Developer will not be

responsible for the payment of regular monthly assessments or of special assessments on units being

constructed by it or under its supervision until such time as a certificate of occupancy is issued for a unit.

Until a certificate of occupancy is issued, however, the Developer may be assessed by the Association for

actual costs, if any, incurred by the Association which are directly attributable to the units being

constructed by the Developer, together with a reasonable share of costs of administration which

indirectly benefit the Developer (other than costs attributable to the maintenance of commercial

structures), based on the ratio of completed units owned by the Developer from time to time to the

number of completed units owned and/or occupied by non-Developer Co-owners.

c) Exempted Transactions. The Developer will not be responsible for the payment of any portion of any

general or special assessment which is levied for deferred maintenance, reserves for replacement or

capital improvements or additions, except with respect to units which have been substantially

completed. In no event will the Developer be liable for any assessment levied in whole or in part to

finance litigation or other claims against the Developer, any cost of investigating and/or preparing such

litigation or claim, or any similar related costs.

d) Act to Govern. As long as the Developer owns one or more of the units in the Project, it shall be

subject to the provisions of the Condominium Documents and of the Act 5.8 Access: Maintenance and

Repair. As provided in the Master Deed, the Association shall maintain and repair the general common

elements, whether located inside or outside the units, and the limited common elements, to the extent

set forth in the Master Deed, the costs thereof shall be charged to all the members as a common

expense, unless necessitated by the negligence, misuse or neglect of a member, in which case such

expense shall be charged to such member. The Association or its agent shall have access to each unit

from time to time during reasonable working hours, upon notice to the occupant thereof, for the

purpose of maintenance, repair or replacement of any of the common elements located therein or

accessible therefrom. The Association or its agent shall also have access to each unit at all times without

notice for making emergency repairs necessary to prevent damage to other units, the common elements

or both. Each member shall provide the Association means of access to his unit and any limited

common elements appurtenant thereto during all periods of absence, and if such member fails to

provide a means of access, the Association may gain access in such manner as may be reasonable under

the circumstances and shall not be liable to such member for any necessary damage to his unit or any

limited common elements appurtenant thereto caused thereby or for the repair or replacement of any

doors or windows damaged in gaining such access, the costs of which damage shall be borne by such

member. Unless otherwise provided herein or in the Master Deed, damage to a unit or its contents

caused by the repair or maintenance activities of the Association, or by the common elements, shall be

repaired at the expense of the Association.

All other maintenance and repair obligations shall, as provided in the Master Deed, rest

on the individual member. Each member shall maintain his unit and any limited common

elements appurtenant thereto for which he has maintenance responsibility in a safe, clean and

sanitary condition. Each member shall also use due care to avoid damaging any of the common

elements, including, but not limited to, the telephone, water, gas, plumbing, electrical or other

utility conduits end systems, boat docks and any other elements in any unit which are appurtenant to or

which may affect any other unit. Each member shall be responsible for damages or costs to the

Association resulting from negligent damage to or misuse of any of the common elements by

him, his family, guests, agents or invitees, unless such damages or costs are actually reimbursed

from insurance carried by the Association, in which case there shall be no such responsibility (if

reimbursement to the Association is excluded by virtue of a deductible provision, the responsible

member shall bear the expense to the extent of the deductible amount, anything else in these

Bylaws to the contrary notwithstanding). Any costs or damages to the Association that are herein

or elsewhere in the Condominium Documents assigned to the individual member may be

assessed to and collected from the responsible member in the manner provided for regular

assessments in Section 5.4. The provisions of this Section

5.8 shall be subject to those of Sections 6.1 and 6.2 in the event of repair or replacement on account of a casualty loss.

5.9 Taxes. After the year in which the Condominium is established, all special assessments

and property taxes shall be assessed against the individual units and not upon the total property

of the Condominium or any part thereof. Taxes and governmental special assessments which

have become a lien against the property of the Condominium in the year of its establishment (as

provided in Section 131 of the Act) shall be Expenses of Administration and shall be paid by the

Association. Each unit shall be assessed a percentage of the total bill for such taxes and

assessments equal to the percentage of value allocated to it in the Master Deed, and the owner

thereof shall reimburse the Association for his units share of such bill within ten (I 0) days after

he has been tendered a statement therefor.

5.10 Documents to Be Kept. The Association shall keep current copies of the recorded Master

Deed, and all amendments thereto, and other Condominium Documents available at reasonable

hours to co-owners, mortgagees, prospective purchasers and prospective mortgagees of units in

the Condominium.

5.11 Reserve for Major Repairs and Replacement. The Association shall maintain a reserve

fund for major repairs and replacement of common elements in an amount equal to at least ten

percent (I 0%) of the Associations current annual budget on a noncumulative basis. Moneys in

the reserve fund shall be used only for major repairs and replacement of common elements. The

minimum standards required by this Section may prove inadequate for a particular project. The

Association of co-owners should carefully analyze the Condominium Project to determine if a

greater amount should be set aside, or if additional reserve funds should be established for other

purposes.

5.12 Statement of Unpaid Assessments. Pursuant to the provisions of the Act, the purchaser of

any unit may request a statement from the Association as to the outstanding amount of any

unpaid assessments thereon, whether regular or special or resulting from unpaid charges. Upon

written request to the Association accompanied by a copy of the executed purchase agreement

pursuant to which the purchaser holds a right to acquire a unit, the Association shall provide a

written statement of such unpaid assessments as may exist or a statement that none exist, which

statement shall be binding upon the Association for the period stated therein. Upon the payment

of that sum within the period stated, the Associations lien for assessments as to that unit shall be

considered satisfied; provided, however, that the failure of a purchaser to request such a

statement at least five (5) days before the closing of the purchase of a unit shall render any

unpaid assessments and the lien securing them fully enforceable against that purchaser and the

unit itself.

ARTICLE VI

INSURANCE; REPAIR OR REPLACEMENT: CONDEMNATION; CONSTRUCTION LIENS

6.1 Insurance. The Association shall, to the extent appropriate given the nature of the

common elements, carry fire and extended coverage, vandalism and malicious mischief and

liability insurance (including, without limitation, Directors and Officers coverage), workers

compensation insurance, if applicable, and such other insurance coverage as the Board may

determine to be appropriate with respect to the ownership, use and maintenance of the common

elements of the Condominium and the administration of Condominium affairs. The insurance

shall be carried and administered in accordance with the following provisions:

a) The Association shall purchase that insurance for the benefit of the Association, the co-owners and

their mortgagees, as their interests may appear, and provision shall be made for the issuance of

certificates of insurance with mortgagee endorsements to the mortgagees of co-owners. The Association

and all co-owners shall use their best efforts to see that all property and liability insurance carried

pursuant to the terms of this Article I shall contain appropriate provisions by which the insurer waives

its right of subrogation as to any claims against any co-owner or the Association, and, subject to the

provisions of Section 5.8, hereof, the association and each co-owner hereby waive, each as to the other.

any right of recovery for losses covered by insurance. The liability of carriers issuing insurance obtained

by the Association shall not, unless otherwise required by law, be affected or diminished on account of

any additional insurance carried by any co-owner, and vice versa.

b) The Association may carry fidelity bond insurance in such limits as the Board shall determine upon all

officers and employees of the Association who in the course of their duties may reasonably be expected

to handle funds of the Association or any co-owners.

c) Each co-owner shall be responsible for obtaining insurance coverage at his own expense for the

interior of his unit, including wall coverings, floor coverings, windows and screens. It shall further be

each co-owner’s responsibility to obtain insurance coverage for his personal property located within his

Condominium unit or elsewhere in the Condominium Project. Each co-owner also shall be obligated to

obtain insurance coverage for his personal liability for occurrences within his unit and the limited

common elements appurtenant to his unit. The Association will under no circumstances have any

obligation to obtain any of the insurance coverage described in this subsection or any liability to any

person for failure to do so.

d) All common elements of the Condominium shall be insured against fire and other perils covered by a

standard extended coverage endorsement in an amount equal to the maximum insurable replacement

value, excluding land, landscaping, pavement, foundation, and excavation costs, as determined annually

by the Board of Directors of the Association. Such coverage shall also include interior walls within any

unit and the pipes, wires, conduits, and ducts contained therein and shall further include all fixtures,

equipment, and trim within a unit which were furnished with the unit as standard items according to the

plans and specifications thereof on file with the Association (or such replacements thereof as do not

exceed the cost of such standard items). Any improvement, made by a co-owner within his unit shall be

covered by insurance obtained by and at the expense of the co-owner; provided that., if the Association

elects to include such improvements under its insurance coverage, any additional premium cost to the

Association attributable thereto shall be assessed to and home solely by the co-owner and collected as a

part of the assessment levied against the co-owner under Section 5.4 above.

e) All insurance carried hereunder shall, to the extent possible, provide for cross-coverage of claims by

one insured against another.

f) Public liability insurance shall be carried in such limits as the Board may from time to time determine

to be appropriate, and shall cover the Association, each member., director and officer thereof, and any

managing agent.

g) All premiums upon insurance purchased by the Association pursuant to these Bylaws, except pursuant

to subsection 6.t{c) above, shall be Expenses of Administration.

h) Proceeds of all insurance policies owned by the Association shall be received by the Association, held

in a separate account, and distributed to the Association, the co­owners and their mortgagees as their

interests may appear; provided, however, whenever repair or reconstruction of the Condominium shall

be required as provided in Section 6.2. below, the proceeds of any insurance received by the Association

as a result of any loss requiring repair or reconstruction shall be applied for such repair or reconstruction

and in no event shall hazard insurance proceeds be used for any purpose other than for repair,

replacement or reconstruction of the Condominium Project unless all the holders of first mortgages on

units in the Condominium have given their prior written approval.

i) Each co-owner, by ownership of a unit in the Condominium, shall be considered to appoint the

Association as his true and lawful attorney-in-fact to act in connection with all matters concerning

insurance pertinent to the Condominium and the common elements thereof. Without limiting the

generality of the foregoing, the Association as attorney shall have full power and authority to purchase

and maintain such insurance, to collect and remit premiums therefor, to collect proceeds and to

distribute them to the Association, the co-owners and respective mortgagees, as their interests may

appear (subject always to the Condominium Documents), to execute releases of liability and to

execute all documents and to do all things on behalf of such co-owners and the Condominium as shall be

necessary or convenient to accomplish the foregoing.

j) Each individual co-owner shall indemnify and hold harmless every other co-owner. the Developer, and

the Association from and against all damages. costs and judgment, including actual attorney’s fees,

which any indemnified party may suffer as a result of defending claims arising out of an occurrence on or

within such individual co-owner’s unit or appurtenant limited common elements. This provision shall not

be construed to give an insurer any subrogation right or other right or claim against an individual co-

owner, the Developer or the Association.

k) Fidelity bonds may be required by the Board of Directors from all persons handling or responsible for

Association funds, the amount of such bonds shall be determined by the Board in its sole discretion, and

the premium for such bonds shall be a general expense of the Association.

6.2 Reconstruction or Repair. If any part of the Condominium shall be damaged, the determination of

whether or not and how. it shall be reconstructed or repaired shall be made in the following manner:

(a) If a common element or a unit is damaged. such property shall be rebuilt or repaired if any

Condominium unit is tenantable, unless the members unanimously vote that the Condominium shall be

terminated and each holder of a mortgage lien on any Condominium unit has given its prior written

approval of such termination.

(b) If the Condominium is so damaged that no unit is tenantable, and if each holder of a mortgage lien

on any unit in the Condominium has given its prior written approval to the termination of the

Condominium the damaged property shall not be rebuilt and the Condominium shall be terminated,

unless all the members in value and in number agree to reconstruction by vote or in writing within

ninety (90) days after the destruction.

(c) Any reconstruction or repair shall be performed substantially in accordance with the Master Deed

and the plans and specifications for the Condominium to a condition as similar as possible to the

condition existing prior to damage, unless the members and each holder of a mortgage lien on any

Condominium unit shall unanimously decide otherwise.

(d) If the damage is only to a part of a unit which it is the responsibility of a member to maintain and

repair, it shall be the responsibility of the member to repair such damage in accordance with subsection

(e) hereof in all other cases, the responsibility for reconstruction and repair shall be that of the

Association. The Association promptly shall notify each holder of a mortgage lien on any of the

Condominium units if any unit or any part of the common elements is substantially damaged or

destroyed.

(e) Each member shall be responsible for the reconstruction and repair of the interior of his unit,

including, but not limited to, floor coverings, wall coverings, window shades, draperies, interior walls

(but not any common elements therein), interior trim, furniture, light fixtures and all appliances,

whether freestanding or built-in, and items deemed to be the responsibility of the individual member by

Article V of the Master Deed. If damage to interior walls within a unit or to pipes, wires, conduits, ducts

or other common elements therein is covered by insurance held by the Association, then the

reconstruction or repair thereof shall be the responsibility of the Association in accordance with

subsection (t). If any other interior portion of a unit, or item therein, is covered by insurance held by the

Association for the benefit of the member, the member shall be entitled to receive the proceeds of

insurance relative thereto, and if there is a mortgage endorsement, the proceeds shall be payable to the

member and the mortgagee jointly, without any change to the obligations set forth in this subsection (e).

(f) The Association shall be responsible for the reconstruction and repair of the common elements, and

for any incidental damage to a unit and the contents thereof caused by such common elements or the

reconstruction or repair thereof. Immediately after a casualty occurs causing damage to property for

which the Association has the responsibility of maintenance, repair md reconstruction. the Association·

shall obtain reliable and detailed estimates of the cost to return the damaged property to a condition as

good as that existing before the damage.

(g) Any insurance proceeds received, whether by the Association or a member. Shall be used for

reconstruction or repair when reconstruction or repair is required by these Bylaws. If the insurance

proceeds are not sufficient to pay the estimated costs of reconstruction or repair required to be

performed by the Association, or if at anytime during such reconstruction or repair, or upon completion

of such reconstruction or repair, the funds for the payment of the costs thereof are insufficient,

assessments shall be made against all members for the cost of reconstruction or repair of the damaged

property in sufficient amounts to provide funds to pay the estimated or actual cost of repair. Such

assessments shall be levied in the same manner as the regular monthly assessments, as set forth in

Article V, Section 5.4.

6.3 Eminent Domain. The following provisions shall control upon any taking by eminent domain:

(a) In the event of any taking of all or any portion of a unit or any limited common element appurtenant

thereto, the award for such taking shall be paid to the co-owner of the unit and the mortgagee thereof,

as their interests may appear. If the co-owner’s entire unit is taken by eminent domain, such co-owner

and his mortgagee shall after acceptance of the condemnation award therefore, be divested of all

interest in the Condominium Project.

(b) In the event of any taking of all or any portion of the general common elements,

the condemnation proceeds relative to such taking shall be paid to the co-owners and the

mortgagees in proportion to their respective interests in the common elements and the

affinitive vote of two-thirds (2/3) or more of the co-owners in number and in value

shall determine whether to rebuild, repair or replace the portion so taken or to take such

other action as they consider appropriate.

(c) In the event the Condominium Project continues after taking by eminent domain,

then the remaining portion of the Condominium Project shall be resurveyed and the

Master Deed amended accordingly and, if any unit shall have been taken, Article VI of

the Master Deed shall also be amended to reflect such taking and to proportionately

readjust the percentages of value of the remaining co-owners based upon the continuing

value of the Condominium. of one hundred percent (100%). Such amendment may be

effected by an officer of the Association duly authorized by the Board of Directors

without the necessity of execution or specific approval thereof by any co-owner.

(d) In the event any unit in the Condominium or any portion thereof, or the common

elements or any portion thereof, is made the subject matter of any condemnation or

eminent domain proceeding or is otherwise sought to be acquired by a condemning

authority, the Association promptly shall notify each institutional holder of a first

mortgage lien on any of the units in the Condominium.

(e) To the extent not inconsistent with the foregoing provisions, Section 133 of the

Act shall control upon any taking by eminent domain.

6.4 Construction Liens. The following provisions shall control the circumstances under

which construction liens may be applied against the Condominium or any unit thereof:

(a) Except as provided below, a construction lien for work performed on a

Condominium unit or upon a limited common element may attach only to the unit upon

or for the benefit of which the work was performed.

(b) A construction lien for work authorized by the Developer or principal contractor

and performed upon the common elements may attach only to units owned by the

Developer at the time of recording of the claim of lien.

(c) A construction lien for work authorized by the Association of co-owners may

attach to each unit only to the proportionate extent that the co-owner of the unit is

required to contribute to the Expenses of Administration as provided by the

Condominium Documents.

(d) A construction lien may not arise or attach to a unit for work performed on the

common elements not contracted for by the Developer or the Association of co-owners,

except as provided in subsection 6.4(a) above. If a co-owner is advised or otherwise learns of a

purported construction lien contrary to the foregoing, he shall immediately notify the Board of Directors.

Upon teaming of the purported construction lien, the Board shall take appropriate measures to remove

any cloud on the title of units improperly affected thereby.

6.5 Mortgagees. Nothing contained in the Condominium Documents shall be construed to

give a Condominium unit owner, or any other party, priority over any rights of first mortgagees

of Condominium units pursuant to their mortgages in the case of a distribution to Condominium

unit owners of insurance proceeds or condemnation awards for losses to or a ta1dng of

Condominium units, common elements or both.

ARTICLE VII

USE AND OCCUPANCY RESTRICTIONS; ENFORCEMENT

7.1 Establishment of Restrictions. In order to provide for congenial occupancy of the

Condominium and for the protection of the value of the Condominium units, the use of

Condominium property shall be subject to the limitations set forth below:

a) Residential Units. No Condominium unit shall be used for other than residential

purposes and the common elements shall be used only for purposes consistent with the

use of single-family residences. It is strictly prohibited to use common areas for commercial,

political or religious or other purposes not consistent with single-family use. No more than four

persons or no more than two unrelated persons may occupy a unit, without the written consent

of the Association or Developer.

b) Alterations. A Co-owner may make improvements or alterations within his unit

that (a) do not impair the structural integrity of a structure or otherwise lessen the support

of a portion of the Project, and (b) do not affect the external appearance of the unit or to

appurtenant limited common elements (only with the consent of all other Co-owners of

units to which the limited common element is appurtenant). Such improvements and

alterations shall not require the consent or approval of the Board of Directors. No Co-

owner shall make alterations in the exterior appearance of the Condominium Project or

make structural modifications to his unit not specifically permitted above or make

changes in any of the general common elements, nor shall any Co-owner damage or

make modifications or attachments to common or limited common element walls

between units which in any way impair sound-conditioning provisions, without the

express prior written approval of the Co­owner of the adjoining unit, The Board of

Directors may appoint an Environmental Control Committee and may delegate to it

responsibility for establishing rules relating to the appearance of units and common areas,

and the construction, maintenance, and repair, and approval thereof. Even after approval,

a Co-owner shall be responsible for all damages to any other units and their contents or to

the common elements, resulting from any such modification.

c) Use of Common Elements. The common elements shall be used only by the Co-

owners of units in the Condominium and by their agents. tenants, invitees and licensees

for access, ingress to and egress from the respective units and for other purposes

incidental to use of the units; provided, however, that any storage facilities or other

common elements designed for a specific use shall be used only for the purposes

approved by the Association. In general, no activity shall be carried on nor condition

maintained by a Co-owner either in his unit or upon the common elements, which spoils

the appearance of the Condominium or unreasonably interferes with the permitted

activities of the other Co-owners. ln general, all of the general common elements shall

not be obstructed in any way nor shall they be used for purposes other than for which

they are reasonably and obviously intended.

d) Nuisances. No immoral, improper, unlawful or offensive activity shall be carried

on in any unit or upon the limited or general common elements. nor shall anything be

done which may be or become an annoyance or a nuisance to the members, nor shall any

unreasonably noisy activity be carried on in any unit or on the common elements. No

member owning any unit shall do or permit to be kept in his unit or on the common

elements anything that will increase the insurance rate on the Condominium without the

written approval of the Association. Each member who is the cause thereof shall pay to

the Association the increased cost of insurance premiums resulting from any such activity

or the maintenance of any such condition.

e) Storage and Trash. Neither the limited nor general common elements shall be used to store supplies,

materials, personal property, trash or refuse of any kind. except as designated by the Association. Trash

receptacles shall be maintained in areas designated therefor at all times and shall not be permitted

elsewhere on the common elements except for such short periods of time as may be reasonably

necessary to permit the periodic collection of trash. The common elements shall not be used in any way

for the drying, shaking or airing of clothing or other fabrics. In general, no activity shall be carried on

nor condition maintained by a member, either in his unit or upon the common elements, which

unreasonably spoils the appearance of the Condominium.

f) No Obstructions. Sidewalks, yards, landscaped areas, drives and, in general, all of the common

elements, shall not be obstructed in any way nor shall they be used for purposes other than for which

they are reasonably and obviously intended. No bicycles. vehicles, trailers, boats, snowmobiles,

recreational vehicles, chairs or benches may be left unattended on or about the general common

elements, without the prior written consent of the Board of Directors.

g) Use of Recreational Facilities. Use of any recreational facilities in the Condominium by Co-owners and

by children may be limited to such times and in such manner as the Association shall determine by duly

adopted regulations.

h) Signs. No signs or other advertising devices shall be displayed which are visible from the exterior of a

residential unit or on the common elements, including, For Sale signs, without written permission from

the Association.

i) Landscaping. No member shall perform any landscaping or plant or remove any trees. Shrubs or

flowers or place any ornamental materials upon the common elements, without the approval of the

Board of Directors.

j) Decks and Porches. No unsightly condition shall be maintained upon any porches or decks and only

furniture and equipment consistent with ordinary porch or deck use shall be permitted to remain there

during seasons when such areas are reasonably in use, and no furniture or equipment of any kind shall

be stored on the front porch during seasons when they are not reasonably in use.

k) Parking Area Storage. No inoperable or unlicensed vehicles, house trailers. commercial vehicles. boat

trailers, boats. campers, camping vehicles, camping trailers, snowmobiles, snowmobile trailers or motor

vehicles or trailers other than automobiles may be parked outside or stored on the Condominium

Premises, unless parked in an area specifically designated therefor by the Association; provided,

however, that campers and similar vehicles may be kept at the Condominium for a period of less than

twenty-four (24) hours without obtaining the Associations prior written approval. Commercial vehicles

and trucks shall not be parked in or about the Condominium (except as provided above) unless while

performing services or making deliveries or pickups in the normal course of business.

l) Pets. Except for household dogs, cats, and small caged birds, and fish, a Co-owner may not keep, raise,

or breed animals, livestock poultry of any kind in any unit. No pets may be kept, raised or bred in any

unit for commercial purposes. Pets shall have such care and restraint so as not to be obnoxious or

offensive on account of noise, odor or unsanitary conditions. No savage or dangerous pet shall be kept.

No such pet may be permitted to run loose upon the common elements, limited or general. The

Association may charge all Co-owners maintaining a pet a reasonable additional assessment to be

collected in the manner provided in Article V, Section 5.4, of these Bylaws if the Association determiners

such assessment necessary to defray the maintenance cost to the Association of accommodating animals

within the Condominium. Any person who causes an animal to be brought or kept in the Condominium

shall indemnify and hold harmless the Association for any damage. loss or liability which might accrue to

the Association as a result of the presence of such animal in the Condominium.

m) Mailbox System. The Developer and/or the Association will require that a common mailbox system be

used for the units which may require mailboxes to be located at a central location or at separate or joint

locations. The Developer and/or Association may determine the design and location of the mailbox

system or of joint or individual mailboxes.

n) Developer Sales Period. None of the restrictions contained in this Article VD shall apply to the

commercial activities or signs, if any, of the Developer during the development and sales period as

defined hereinafter, or of the Association in furtherance of its powers and purposes set forth herein and

in its Articles of Incorporation and Bylaws as the same may be amended from time to time. For the

purposes of this subsection. the development and sales period shall be deemed to continue so long as

Developer owns any unit which he offers for sale or so long as any additional unit may be created in the

Condominium. Until all units that may be created in the Condominium have been sold by Developer,

Developer shall have the right to maintain a sales office, model units, storage areas, reasonable parking

incident to the foregoing and such access to, from and over the project as may be reasonable to enable

development and sale of the entire project by Developer.

o) Regulations. Reasonable regulations consistent with the Act, the Master Deed and these Bylaws

concerning the use of the common elements may be made and amended from time to time by any

Board of Directors of the Association, including the Board of Directors appointed by the Incorporator and

its successors. Copies of all such regulations and amendments thereto shall be furnished to all members

and shall become effective ten (10) days after mailing or delivery thereof to the designated voting

representative of each member. Any such: regulation or amendment may be revoked at any time by the

affirmative vote of more than fifty percent (50%) of all members in number and in value at any duly

convened meeting of the Association, except that the members may not revoke any regulation or

amendment prior to the first meeting of the Association.

7.2 Enforcement of Restrictions. The Associations costs of exercising its rights and administering its

responsibilities hereunder shall be Expenses of Administration (as defined in Article V above), provided

that the Association shall be entitled to recover its costs of proceeding against a breach by a co-owner as

provided in 12. l (b), below.

7.3 General Provisions.

(a) Zoning. All restrictions imposed by the City of Manistee Zoning Ordinance, as it applies to the

Condominium Project, shall apply to all units in the Condominium, except that if the Developer or the

Association has imposed more stringent restrictions; those restrictions shall apply in place of the City of

Manistee restrictions.

(b) No Gift or Dedication. Nothing herein contained will be considered to be a gift or dedication of any

portion of the units or other areas in the Condominium to the general public or for any public purposes

whatsoever, it being the intention of the Developer that these restrictions will be strictly limited to the

purposes herein specifically expressed.

(c) No Third-Party Beneficiaries. No third party, except grantees, heirs, representatives, successors and

assigns of the Developer, as provided herein, will be a beneficiary of any provision set forth herein.

(d) Handicapped Persons. Reasonable accommodations in the rules, policies and practices of the

Condominium will be made as required by the Federal Americans with Disabilities Act, as amended, and

other applicable laws and regulations.

7.4 Persons Subject to Restrictions. All present and future co-owners, tenants and any other persons or

occupants using the facilities of the Condominium in any manner are subject to and shall comply with

the Act, the Master Deed, these Condominium Bylaws and the Articles of Incorporation, Bylaws, rules

and regulations of the Association.

7.5 Enforcement. A breach of any provision contained in this Article VIl shall constitute a breach of these

Bylaws and may be enforced pursuant to the terms of these Bylaws.

ARTICLE VIII

LEASES

8.1 Notice of Intent to Lease. A Co-owner, including the Developer, desiring to rent or lease a

Condominium unit for any term. shall disclose that fact in writing to the Association at least ten

(10) days before presenting a lease form to a potential lessee, and at the same time, shall supply

the Association with a copy of the exact lease form for review for its compliance with the

Condominium Documents. The Board of Directors shall advise the C0-owner of any deficiencies

in the lease form and the Co-owner shall correct such deficiencies as directed by the Board of

Directors before presenting a copy of the lease form to the potential lessee. Once a lease form is

approved by the Board of Directors, a Co-owner of a unit may use the lease form to lease or let a

unit for a term of six (6 months) or longer. If Developer proposes to rent any Condominium unit

before the Transitional Control Date, Developer shall notify either the advisory committee or

each Co-owner in writing. For security purposes, all non-Co-owner occupants shall register their

presence with the Association prior to taking occupancy and shall notify the Association upon

departure. Boat slips may not be rented to non-residents of the development.

8.2 Conduct of Tenants. All tenants and non-co-owner occupants shall comply with all the terms and

conditions of the Condominium Documents and the provisions of the Act. No tenant shall be allowed to

keep pets in a unit without obtaining approval from the Association Board. If the Association determines

that a tenant or non-co-owner occupant has failed to comply with the conditions of the Condominium

Documents or the provisions of the Act, the Association may advise the appropriate member by certified

mail of the alleged violation by a person occupying his unit. The member shall have fifteen (15) days

after receipt of the notice to investigate and correct the alleged breach or advise the Association that a

violation has not occurred. If after fifteen (15) days the Association believes that the alleged breach has

not been cured or may be repeated, it may institute on its behalf, or the members may institute

derivatively on behalf of the Association if it is wider the control of the Developer an action for eviction

against the tenant or non-co-owner occupant and, simultaneously, for money damages against the

member and tenant or non-co-owner occupant for the breach of the conditions of the Condominium

Documents or the Act. The relief set forth in this Section may be by any appropriate proceeding. The

Association may hold both the tenant or non-co-owner occupant and the member liable for the

damages caused to the Condominium.

ARTICLE IX

MORTGAGES

9.1 Notice of Mortgage. A co-owner who mortgages a unit shall notify the Association of the name and

address of his mortgagee and shall file a conformed copy of the note and mortgage with the Association,

which shall maintain that information in a book entitled Mortgages of Units. If the Association does not

receive the notice, it shall be relieved of any duty to provide the mortgagee any notice required by the

Master Deed or these Bylaws.

9.2 Notice of Default. The Association shall give to the holder of any first mortgage covering any unit in

the Condominium Project written notification of any default in the performance of the obligations of the

co-owner of such unit that is not cured within sixty (60) days if such mortgagee has. in writing. requested

the Association to report such defaults to it.

9.3 Notice of insurance. The Association shall notify each mortgagee appearing in the above-described

book of the name of each company insuring the general common elements of the Condominium against

vandalism and malicious mischief and the amounts of such coverage.

9.4 Notice of Meetings. Upon a request submitted to the Association, any institutional holder of a first

mortgage lien on any unit in the Condominium shall be entitled to receive written notification of every

meeting of the members of the Association and to designate are presentative to attend such meeting.

9.5 Acquisition of Title by First Mortgagee. Any first mortgagee who obtains title to a unit pursuant to

the remedies provided in the mortgage, or deed in lieu thereof, shall not be liable for that units unpaid

assessments which accrue before acquisition of title by the mortgagee, except to the extent provided in

Section 5.6. above.

ARTICLE X

AMENDMENTS

10.1 Proposal. Amendments to these Bylaws may be proposed by the Board of Directors of the

Association acting upon the vote of the majority of the Directors or by one-third (1/3) or more of the

members in number or in value by an instrument in writing signed by them.

10.2 Meeting to Be Held. Upon any amendment being proposed, a meeting for consideration of the

amendment shall be duly called in accordance with the provisions of the Association Bylaws.

10.3 Vote Required. These Condominium Bylaws may be amended by an affirmative vote of

Two thirds (2/3) of the members in number and in value and two thirds (2/3) of all mortgagees at any

regular meeting or special meeting called for that purpose, except that the method or formula used to

determine the percentage of value of units in the Condominium Project and any provisions relating to

the ability or terms under which a co-owner may rent a unit may not be modified or amended without

the consent of each affected member and mortgagee. For purposes of this voting, each co-owner will

have one (1) vote for each unit owned, including as to the Developer all units created by the Master

Deed but not yet conveyed. Each mortgagee shall have one (1) vote for each mortgage held.

10.4 Amendments Not Materially Changing Condominium Bylaws. The Developer or Board of Directors

may enact amendments to these Condominium Bylaws without the approval of any member or

mortgagee, provided that the amendments shall not materially alter or change the rights of a member or

mortgagee. The Developer may also enact amendments to these Condominium Bylaws as provided in

the Master Deed.

10.5 Effective Date. Any amendment to these Bylaws (but not the Association Bylaws) shall become

effective upon the recording of the amendment in the Office of the Register of Deeds in the county

where the Condominium is located.

10.6 Costs of Amendments. Any person causing or requesting an amendment to these Condominium

Bylaws shall be responsible for the costs and expenses of considering, adopting, preparing and recording

the amendment except as provided in the Master Deed; provided, however, that such costs and

expenses relating to amendments adopted pursuant to Article 10, Section 10.4, or pursuant to a decision

of the Advisory Committee shall be expenses of administration.

10.7 Notice; Copies to Be Distributed. Members and mortgagees of record of Condominium units shall

be notified of proposed amendments not less than ten (10) days before the amendment is recorded. A

copy of each amendment to these Bylaws shall be furnished to every member after recording; provided,

however, that any amendment to these Bylaws that is adopted in accordance with this Article shall be

binding upon all persons who have an interest in the Condominium Project regardless of whether such

persons actually receive a copy of the amendment.

ARTICLE XI

DEFINITIONS

All terms used herein shall have the same meanings as set forth in the Act or as set forth in the Master

Deed to which these Bylaws are attached as an exhibit.

ARTICLE XII

REMEDIES FOR DEFAULT

12.1 Relief Available. Any default by a co-owner shall entitle the Association or another co-owner or co-

owners to the following relief:

a. Failure to comply with any of the terms or provisions of the Condominium Documents shall be

grounds for relief, which may include, without limitation, an action to recover sums due for damages,

injunctive relief, foreclosure of lien (if default in payment of an assessment or other amount due) or any

combination thereof, and such relief may be sought by the Association. or, if appropriate. by an

aggrieved co-owner or co-owners.

b. In any proceeding arising because of an alleged default by any co-owner or the failure of any co-owner

to abide by the provisions of the Condominium Documents, the Association, if successful, shall be

entitled to recover the costs of the proceeding and such reasonable attorney’s fees (not limited to

statutory fees) as may be determined by the court, but in no event shall any co-owner be entitled to

recover attorney’s fees.

c. Such other reasonable remedies as are provided in the rules and regulations promulgated by the

Board of Directors, including, without limitation, the levying of fines against co-owners after notice and

opportunity for hearing, as provided in the rules and regulations of the Association, and the imposition

of late charges for nonpayment of assessments.

d. The violation of any of the provisions of the Condominium Documents shall also give the Association

or its duly authorized agents the right, in addition to the rights set forth above, to enter upon the

common elements, limited or general. or into any unit. Where reasonably necessary, and summarily

remove or abate, at the expense of the co-owner in violation, any structure, thing or condition existing

or maintained contrary to the provisions of the Condominium Documents.

12.2 Failure to Enforce. The failure of the Association or of any co-owner to enforce any right, provision,

covenant or condition which may be granted by the Condominium Documents shall not constitute a

waiver of the right of the Association or of any such co-owner to enforce that right, provision, covenant

or condition in the future.

12.3 Rights Cumulative. All rights, remedies and privileges granted to the Association or any co-owner or

co-owners pursuant to any terms, provisions. covenants or conditions of the Condominium Documents

shall be considered to be cumulative and the exercise of any one or more shall not be considered an

election of remedies, nor shall it preclude the party exercising it or them from exercising such other and

additional rights, remedies or privileges as may be available to that party at law or in equity.

12.4 Hearing. Before the imposition of any fine or other penalty hereunder, the offending unit owner

shall be given a reasonable opportunity to appear before the Board and be heard. Following the hearing,

the Board shall prepare a written decision and place it in the permanent records of the Association.

ARTICLE XIII

ARBITRATION

13.1 Submission to Arbitration. Any dispute, claim or grievance arising out of or relating to the

interpretation or application of the Master Deed. Condominium Bylaws or management agreement, if

any, or any disputes, claims or grievances arising among or between the co-owners or between the co-

owners and the Association shall, upon the election and written consent of all the parties to the dispute,

claim or grievance, and written notice to the Association, be submitted to arbitration, and the parties

thereto shall accept the arbiters decision as final and binding. The Commercial Arbitration Rules of the

American Arbitration Association, as amended and in effect from time to time hereafter. shall be

applicable to the arbitration. The arbiter may be either an attorney acceptable to both parties or a panel

of three (3) individuals, at least one (1) of whom shall be an attorney. The panel shall be composed of

one (1) individual appointed by the co-owner and one (1) individual appointed by the Board of Directors

of the Association. These two (2) panelists will then promptly agree on the third member of the panel.

No co-owner who is a natural person may appoint himself or a member of his household to the panel.

No corporation or partnership member may appoint a directors partner, officer or employee to the

panel. Neither may the Board appoint a person similarly associated with an individual, corporate or

partnership member. Costs of the arbitration shall be borne by the losing party to the arbitration. The

arbiter may require a reasonable deposit to ensure payment of costs. The deposit shall be placed in

escrow in the name of the arbiter as trustee in the name of the matter at issue.

13.2 Effect of Election. Election by co-owners or the Association to submit any dispute, claim or

grievance to arbitration as provided above shall preclude the parties from litigating that dispute, claim or

grievance in the courts. Any appeal from an arbitration award shall be considered a statutory appeal.

13.3 Preservation of Right. No co-owner shall be precluded from petitioning the courts to resolve any

dispute claim or grievance in the absence of election to arbitrate.

ARTICLE XIV

SEVERABILITY

If any of the terms, provisions or covenants of these Bylaws or the Condominium Documents are held to

be partially or wholly invalid or unenforceable for any reason whatsoever. that holding shall not affect,

alter, modify or impair in any manner whatsoever any of the other terms, provisions or covenants of

those documents or the remaining portions of any terms, provisions or covenants held to be partially

invalid or unenforceable.

ARTICLE XV

INITIATION FEE

When a Condominium is sold either by the developer or a Condominium owner, an Initiation Fee of

($1,000) one thousand dollars must be collected from the purchaser at closing. This fee is to be

deposited into the Condominium contingency fund. The initiation fee amount can only be changed by

unanimous support of the Condominium Association Board and a vote of (2/3) two-thirds of the

Condominium Association Co-Owners.