DISCLOSURE MATERIALS. HIGHLAND WOODS CONDOMINIUM HOMES Glen Thistle Glen Hollow Road Glen Thistle Court

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1 DSCLOSURE MATERALS HGHLAND WOODS CONDOMNUM HOMES Glen Thistle Glen Hollow Road Glen Thistle Court Declarant: Old Middleton Venture, a general partnership consisting of Charles.. Trainer, Thomas G. Beach, David G. Walsh and Carley Capital Group, a partnership consisting of James E. Carley and David Carley as a partner in Old Middleton Venture; c/o Declarant's Agent Declarant's Agent: Thomas G. Beach ~usinesb Address: 315 West Gorham Street Madison, W THESE ARE THE LEGAL DOCUMENTS COVERNG YOUR RGHTS AND RESPONSBLTES AS A CONDOMNUM OWNER. F YOU DO NOT UNDERSTAND ANY PROVSONS CONTANED N THEM, YOU SHOULD OBTAN PROFESSONAL ADVCE, THESE DSCLOSURE MATERALS GVEN TO YOU AS REQURED BY LAW MAY BE RELED UPON AS CORRECT AND BNDNG. ORAL STATEMENTS MAY NOT BE LEGALLY BNDNG, YOU MAY AT ANY TME WTHN FVE (5) BUSNESS DAYS FOLLOWNG RECEPT OF THESE DOCUMENTS, OR FOLLOWNG NOTCE OF ANY MATERAL CHANGES N THESE DOCUMENTS, CANCEL N WRTNG THE CONTRACT OF SALE AND RECEVE A FULL REFUND OF ANY DEPOSTS MADE.

2 HGHLAND WOODS CONDOMNUM HOMES ndex To Disclosure Materials - Continued Page 1. DECLARATON, AMENDMENT, AND AMENDMENT 1 The Declaration, Amendment, and Amendment 1 describes the Condominium, the Units (Detached Unit and Attached Unit)/ the Common Elements Limited Common Elements, and Special Unit Elements. The Declaration begins on page... D-it D- D CONDOMNUM PLAT, FLOOR PLANS AND AMENDMENTS AS EXHBTS TO THESE DSCLOSURE MATERALS The Declarant has provided floor plans of the Units being offered for sale and a Condominium. Plat and Amended Plat which shows the location of the Unit you are considering; and all facilities, Common Elements, and Limited Common Elements which are part of the Condominium. The Exhibits begin on page... D-27, D. D ARTCLES OF NCORPORATON The operation of a Condominium is governed by the Association, of which each Unit Owner is a member. The Articles of ncorporation of the Association begin on page....a-1 4. BYLAWS The Bylaws contain rules which govern the Condominium and the manner in which the Association is operated. The Bylaws affect the rights and responsibilities of Unit Owners. The Bylaws begin on page....b-1 5. MANAGEMENT AGREEMENT Certain services may be provided to the Condominium through a contract with individuals or private firms. The contract with regard to this Condominium begins on page....m-1

3 HGHLAND WOODS CONDOMNUM HOMES ndex To Disclosure Materials - Continued 6. ANNUAL OPERATNG BUDGET The Association incurs expenses for the operation of the Condominium which are assessed to the Unit Owners. The operating budget is an estimate of those charges which are in addition to mortgage, real estate taxes Page and utility payments paid by individual Unit Owners. The operating budget begins on page.....ab-1 7. EASEMENTS ~ro6erty is often subject to use by persons ' other than owners for purposes of access, ingress and egress, utilities and improvements. These rights are contained in easements effecting the land. This property is subject to such easements. Their descriptions begin on page.....e-1 8. LEASES n some Condominiums, units are sold subject to one or more leases of property which are not a part of the condominium. There are no such leases with regard to this Condominium. 9. RULES AND REGULATONS The Association of Unit Owners has adopted certain rules and regulations concerning the rights and responsibilities of Unit Owners. These rules and regulations begin on page.... R EXPANSON The Declarant has reserved the right to expand the Condominium in the future, and such right is described in more detail at Paragraph 2 of the Declaration of Condominium.

4 DECLARATON OF CONDOMNUM -. HGH- WOODS CONDOMNUM HoMEs i ~ Table of Contents PACE 10 Page 1. Purpose Expandable Condominium DescriptionofLand Name and Address Degcriptions of Buildings and Units Unit Owner The Association of Unit Owners Votesof Unit Owners Description of Detached Unit Description of Attached Unit...: Common Elements Percentage nterest in Common Elements Limited Common Elements Restrictionsonuse Damage or Destruction nsurance Alteration and Decoration of Units Easements Easements Run w ith the Land 20. Maintenance Common Expenses Utilities...

5 ' 23. Negligence of Owner Leasingofunits Reserved Rights of Declarant; Turnover of Control Association Rules and Regulations, , Agent for Service of Process Miscellaneous Provisions , (a) mpairment of Structural ntegrity of Building (b) Compliance (c) Display of Model by Declarant..... (d) Severability and nterpretation (e) Certificates (f) Encroachments (g) Amendments (h) Remedies... (i) Eminent Domain (j) Conflict in Condominium Documents..... (k) Warranties (11 Declarant Bound (m) Specific mplementation Plan (n) Captions Definitions Exhibits : Exhibit A Legal Description Exhibit B Possible Expansion Lands- ~egai Descriptions Exhibit C Condominium Plat - Phase Exhibit D Floor Plans (location, building, unit.d. #, dimensions) Phase..

6 DECLARATON OF CONDOMNW vo~ 6170 a, 12 HGHLAND WOODS CONDOMNUM HOMES 1 The undersigned (The "Declarantn) owners of the property described herein, and being duly authorized to do so, hereby submit said property to the provisions of Chapter 703, Wisconsin "Act"). 1 Statutes ( ), the Wisconsin. Condominium Ownership Act (The 1. PURPOSE The purpose of this Declaration is to submit the land and improvements described herein (hereinafter referred to as the. "Condominiumn) to the condominium form of ownership and use in the manner provided by the Wisconsin Condominium ownership Act. t 2. EXPANDABLE CONDOMNUM The Declarant hereof expressly reserves the option and right to expand this condominium- pursuant to Section of the Act and subject to the provisions of this Article: A. The consent of Unit Owners of the project shall not be required for such expansion and the Declarant may proceed with such expansion at its sole option; B. This option to expand the Condominium project shall expire ten (10) years after the recording of this declaration, if not sooner exercised; however, the Declarant may, at any time prior to the expiration of such period, terminate its option to expand by recording among the land records wherein this declaration is recorded an executed and notarized document terminating this option; C. The additional land which may, at the option of Declarant, be made part of the expandable Condominium, is located in Dane County, State of Wisconsin, and is more particularly described in Exhibit B; D. - The Declarant need not add all or any portion of the additional land to the Condominium; however, the Declarant may add portions of the additional land to the Condominium and may do so at different times; such portions as are -added to the Condominium shall be substantially as set forth on the attached plat and marked Exhibit B; a. E. The approximate locations of improvements that may be located on the additional land are shown on the attached plat designated Exhibit B; however, Declarant reserves the right to

7 change the location of such improvements if required to achieve the best development in the opinion of the Declarant; F. The improvements to be placed on the additional lands shall contain no more than 48 additional residential Condominium Units; and said Units may, at the option of Declarant, be added in one or more phases. G. The improvements to be placed on the additional land will be compatible with the improvements located within the rest of the Condominium and will be of the same or similar quality of construction and materials, and the architectural style will be substantially identical to that of the improvements located within the rest of the Condominium; H. Other improvements to be placed on the additional land shall be limited to parking, roadways, recreational, and service facilities;. The Units to be created in the im~rovements on the additional land will be substantially identicd to the Units in the project; however, the Declarant reserves the right to change the size, design, and mix of the Units in order to meet requirements of the market; 3. The Declarant reserves the right to create special Unit Elements, limited common areas and facilities within a portion of the additional land and to designate common areas and facilities therein which may subsequently be assigned as limited common areas and facilities for the purpose of making parking spaces and such other traditional types of limited common areas and facilities as the Declarant may see fit; K. nitial property, buildings, units shall be referred to and described herein as "Phase ". DESCRPTON OF LAND The land subject to this Declaration is owned by Declarant, and Phase is more fully described in Exhibit A attached hereto. The additicnal land which may be added to the Condominium is more fully described in Exhibit B. 4. NAME AND ADDRESS The name of the Condominium is "Highland Woods Condominium Homesn. Phase thereof has as its address the following tall in Madison, Wisconsin 53705): Unit la: 102 Glenthistle Road Unit 2c: 104 Glenthistle Road Unit 3d: 106 Glenthistle Road Unit 4d: 101 Glenthistle Road Unit 5c: 103 Glenthistle Road Unit 6b: 105 Glenthistle Road Unit 7d: 107 Glenthistle Road

8 5. DESCRPTONS OF BULDNGS AND UNTS. - A. Phase of the Condominium shall consist of 5 buildings which contain 7 living units and attached garages or carports. The Condominium may be expanded to a maximum of 55 Units and attached garages, detached garages or carports.. B. As used herein, "Building" shall mean a structure containing one or more units that has been or shall hereafter be constructed on the land. As designated herein an individual building containing only one (.) Unit in the Condominium shall be referred to herein as a "Detached Unit". An individual living unit in. a building containing more than one (1) Unit in the Condominium shall be referred to herein as an "Attached Unit". By expansion or amendment hereto, a Building may be divided into Units, equal in number to the number of individual living units in the Building, pursuant to Wisconsin Statutes, Section (7). C., A Condominium Plat showing the location of the other improvements on the land for Phase is attached to this Dec1ara.- tion as Exhibit C. A set of floor plans of the buildings for Phase, showing the location, Attached or Detached Unjt identification numbers and ' dimensions of each Attached or Detached Unit, is attached to this Declaration as Exhibit D. D. All references herein to "Unit" or "living unit" shall include both Attached and Detached Units (as defined abcve) unless otherwise specifically provided. E. As of the effective date hereof, The Units of Phase of the Condominium are designated as follows: Unit la Unit 2c Unit 3d Unit 4 d 6. UNT OWNER Unit Sc Unit 6b Unit 7d The term "Unit Owner" shall mean a person, conbination of persons, partnership, or corporation, who holds legal title to a Unit; provided, however, that in the event equitable ownership has been conveyed in the Unit by means of a land contract or other similar document, "Unit Ownir" shall mean the land contract purchaser. 7. THE ASSOCATON OF UNT OWNERS A. All Unit owners are members of an association of Unit Owners known as "Highland Woods Condominium Homes, nc." (the "Association"), which is incorporated as a non-stock, non-profit corporation under the laws of the State of Wisconsin. The

9 operation, use and management of the Condominim shall be vested in the Association. No Unit Owner, except an authorized officer of the Association, or authorized member of its Board of Directors (the uboard") shall have any authority to act for the Association. The powers and duties of the ~ssociation shall include those set forth in the Bylaws, the Wisconsin Condominium Ownership Act and this Declaration, subject to the rights reserved by Declarant herein, including but not limited to those rights reserved by Declarant in paragraph 24. B. All Unit Owners covenant and agree that the administration of the Condominium shall be in accordance with the provisions of this Declaration, the Bylaws of the Association and. the Wisconsin Condominium Ownership Act. All Unit Owners, tenants of Units and other occupants shall comply with the provisions of this Declaration, the Bylaws and decisions and resolutions of the Association or its representatives, all as lawfully amended from time to time, and failure to comply with any such provisions, decisions or resolutions, shall be grounds for an action to recover any sums that may be due and related to such failure, for other damages and, if applicable, for injunctive relief. VOTES OF UNT OWNERS A. All voting concerning the administration of the Condominium shall be in accordance with this Section 8. Voting is on the basis of one vote per living Unit. The vote for each living Unit may be cast as agreed by the person(s) who have an ownership interest in the living Unit and if only one such person is present it is presumed that person has the right to cast the Unit vote.unless there is contrary evidence presented. n the event they cannot agree on the manner in which the vote is to be cast no vote may be accepted from that living Unit. One who holds a land contract purchaser's interest or any other such equitable interest shall be considered the Unit Owner for, voting purposes. However, for purposes of being eligible to vote as a member of the Association, the land contract or other document establishing the equitable interest, or an instrument providing constructive notice of such interest, must be recorded in the Dane County Register of Deeds office. B. n the event that the Declarant is an owner of a living Unit and elects not to be assessed (the "election") for, and pay, Common Expenses pursuant to Section 21, the owner of the living Unit shall not be entitled to cast the votes designated above with regard to the administration of the Condominium or any other matters referred to herein. n the event the Declarant owner of a living Unit elects to be assessed for, and pay, Common Expenses pursuant to Section 21 said Declarant owner shall be entitled to cast the vote designated above. C. n no event shall an owner of a living unit be entitled to vote in accordance with this Section 8 until the living unit

10 is substantially constructed and ready for occupancy at which time the owner of the living Unit shall make the election described above. 9. DESCRPTON OF DETACHED UNT An unattached Unit in the Condominium designated as a Detached Unit shall be described as follows: A. The Detached Unit is more particularly described as a volume of space; the exterior' boundaries shall be the finished exterior surface of the perimeter walls surrounding the Detached Unit (including exterior finish material), the finished upper surface of the roof of the highest story of the building (including shingles), and the outside of the finished exterior surface of the foundations of the Detached Unit. Finished interior surfaces, including paint, wallpaper, carpeting,' paneling, partitioning, and the like, are part of the Detached Unit., B. n addition, a Detached Unit includes the following items servicing the particular Detached Unit, although they may or may not be outside the-defined volume of space: 1. All windows, doors, and garage doors, their exterior and interior easements, and all their openings, closing, and locking mechanisms and hardware ; 2. Any garages, carports, patios, private balconies and porches directly adjacent to the Detached Unit; 3. All wall and ceiling mounted electrical fixtures and all floor, wall; baseboard, or ceiling electrical outlets and switches and the junction boxes serving them, and any exterior electrical outlets or fixtures served by the electric meter for the Detached Unit ; 4. All plumbing fixtures and the piping, valves and other connecting and controlling materials or devices lying between the fixtures and the water meter or main sewage.lines; 5. The cable television outlet to the Detached Unit and the junction box serving it, if any; 6. The heating system including the furnace, fans, ducts, controls, humidifying elements, and chimneys serving the Detached Unit; 7. Air conditioning to the Detached Unit, including fans, ducts, and controls; and

11 8. The lines bringing natural gas or similar fuel from the meter to the Detached Unit. 9. Any and all appliances and other fixtures contained in the Detached Unit, which items may include, but not limited to, refrigerator, dishwasher, disposal, laundry equipment, water softener. 10. DESCRPTON OF ATTACHED UNT An Attached Unit in the Condominium (other than a Detached Unit as described above) shall include: A. One or more contiguous or non-contiguous cubicles of air including the perpetual right of ingress and egress thereto. The exterior boundaries of the cubicles shall be the unfinished or uncovered interior surface of the perimeter walls surrounding the cubicle and in the basement shall be the inner face of the foundation wall of the building. The upper boundary of such cubicles shall be the unfinished or uncovered lower face of the ceiling of the highest story of the Attached Unit. The lower boundary shall be the unfinished or uncovered exterior face of the concrete floor in the garage, basement area, and crawl space. Such cubicles of air shall include the attached garage or carport space, if any as identified on the Condominium Plat. The foregoing Qoundaries extend to the intersection with each other. t is intended that the finished surface of the boundaries (whether tiled, papered, panelled, painted, carpeted or otherwisd) is included as part of the Attached Unit. B. Any and all appliances and other fixtures contained in the Attached Unit, which items may include, but not be limited to, refrigerator, dishwasher, disposal, laundry equipment, water softener, furnace, range, compactor, cabinets, carpeting, and floor covering. C. The following items serving the particular Attached Unit although they may be outside the defined cubicle of air: (1) All doors and windows, their interior casements, and all of their opening, closing, and locking mechanisms and hardware; (2) All wall and ceiling mounted electrical fixtures and recessed junction boxes serving them; (3) All floor, wall, baseboard, or ceiling electrical outlets and switches and the junction boxes serving them; (4) All plumbing fixtures and the piping, valves, and other connecting and controlling materials and devices (serving only the Attached Unit to be defined and not the

12 Condominium in general) lying between the fixtures and main water or sewage lines; (5) The cable television outlet, if any, to the Attached Unit and the junction box serving it (unless owned by the provider of the service); (6) f applicable, the individual furnaces or ducting, the radiator, and the piping providing heating to the Attached Unit, and the controls for the heating system for the Attached Unit; ' (7) f applicable, the air conditioning equipment and ducting providing air conditioning to the Attached Unit, and the controls for the air conditioning system of the Attached Unit; (8) The lines bringing natural gas or similar fuel to the Attached Unit, which l?nes extend from the utility ameter to the boundary of the Attached Unit; (9) The fireplace, and the fireplace flues, if any, serving the Attached Unit; (10) The garage doors on the attached garage space, if any, included with the Attached Unit; (11) Any garages, carports, patios and porches directly adjacent to an Attached Unit. D. Specifically not included as part of the Attached Unit are those structural components of the building and any portions of the mechanical systems of the building, not specifically included in the Attached Unit under (C) above or E below, which lie within the cubicle or cubicles of air comprising the Attached Unit. E. Specifically included as part of the Attached Unit are \ "Special Unit Elements." Special Unit Elements are those special elements unique to those Attached Units which share a common roof, foundation or walkway. The Special Unit Elements shall be owned in common by all Attached Unit owners immediately adjacent thereto, and are for the special and limited use of the adjacent owners only for the purposes for which they were intended pursuant to this Declaration, the Bylaws, and the rules and regulations adopted by the Association without hindering or encroaching upon the lawful rights of the other Unit owners, adjacent or otherwise. The necessary work of maintenance, repair and replacement of the Special Unit Elements and the making of any additions or improvements thereto shall be the joint and equal responsibility of the adjacent Attached Unit owners pursuant to this Declaration, the Bylaws, and the rules and regulations adopted by the Association. Without intending to limit the term, "Special Unit Elements" expressly includes:

13 (1) Shared roofs and crawl spaces, including shingles fro. the unfinished or unlowered lower face of the ceili~: of the highest story of the Attached Unit to an1 including the exterior roof; (2) Shared perimeter walls from the unfinished or uncoverec interior surfaces of the perimeter walls surroundinc - > the Attached Unit to and including the exterio: finished perimeter walls (including siding material); (3) The foundation wall in the lowest level from the innel face of the foundation wall of the building to anc including the exterior foundation wall of the building; (4) Entry walkways and any roof or covering thereto attached to the Units connecting the individual Attached Units. (5) Partition walls, load bearing interior walls and. columns, and those structural and mechanical components of the Attached Units shared by adjacent owners, 11: COMMON ELEMENTS A. Without intending to limit the term, "Common Elementsn expressly includes all of the Condominium except the Units and Special Unit Elements and specifically (but without limitation): (1) The land on which the Building or Units are located; (2) Roads, pedestrian walks, private road parking, yards, gardens, play areas, and recreational facilities (if any) ; (3) nstallation of central services, if any, providing services for more than one Unit, such as sewer, power, light, gas, and water; (4) Such community and commercial facilities as may be provided for in this Declaration, if any; (5) All other parts of the property necessary or convenient to its existence, maintenance and safety, or normally in common use except as otherwise limited herein; (6) The Limited Common Elements hereafter described as subject to the usage and maintenance limitations particularly set out therein, (7) All other portions of the Condominium not included in the definition of the Detached Unit, Attached Unit and/or Special Unit Elements as described above,

14 B. No Unit Owner shall own any pipes, wires, condu~ts, public utility lines or other structural components running through his/her Unit and serving more than his/her Unit, whether or not such items shall be located in the floors, ceilings, or perimeter or interior walls of the Unit. C. Each Unit Owner may use the Common Elements in accordance with the purpose for which they were intended pursuant to this Declaration, the Bylaws, and rules and regulations adopted by the Association without hindering or encroaching upon the lawful rights of the other Unit Owners. D. The necessary work of maintenance, repair and replacement of the Common Elements and the making of any additions or improvements thereto shall be carried out only as provided in this Declaration, the Bylaws, and rules and regulations of the Association and the Wisconsin Condominium. Ownership Act. 12. PERCENTAGE NTEREST N COMMON ELEMENTS A. Each Unit and the Unit Owner has such undivided percentage interest in Common Elements and facilities as is equal to the ratio of said Unit's square footage to the total square footage of all the Units. "Square footage" shall mean a-11 floor space capable of being used for occupancy purposes within a Unit and specifically excluding garages, carports, entry walkways attached to any units, patios, and private balconies. Except as provided herein, and subject to the Bylaws of the Association and any rules and regulations adopted pursuant thereto, the Common Elements are available for the use and enjoyment of, or service to, all Unit Owners. This percentage interest is appurtenant to the Unit, and is not subject to partition as long as this Declaration is in effect. Such maximum interest shall be subject to diminution, to accommodate expansion or conversion under the provisions of paragraph 2. Except as provided in paragraph 2, the percentage of undivided interest in the common areas and facilities appurtenant to any unit shall not be changed except with the unanimous consent of all of the unit owners in the condominium project expressed in an amendment to this declaration duly executed by all such owners and recorded. B. Any deed, mortgage, lease or other instrument purporting to' affect a conveyance of a Unit without including also the Unit Owner's interest in the Common Elements shall be deemed and interpreted to include the interest so omitted even though the latter is not expressly mentioned or described therein. 13. LMTED COMMON ELEMENTS A. "Limited Common Elements" shall mean those Common Elements identified in this Declaration and on the Condominium

15 Plat (Exhibit C) as reserved for the exclusive use of one or more but less than all of the owners of Units. The Condominium Limited Common Elements and the Unit or Units to which their use is reserved are identified on the Condominium Plat and shall include any of the following (as may be applicable): driveways, and a 5 foot perimeter of yard surrounding each unit. Limited Common Elements are reserved for the use of the respective Unit which they serve, to the exclusion of other Units. B. Each Unit Owner shall be entitled to the exclusive use and possession of the Limited Common Elements, direct access to which is provided from his respective Unit, and which is located outside of and adjoining his respective Unit. Unless and until such time as the Board determines to the contrary, each Unit Owner shall be responsible for repair, maintenance and appearance of the Limited Common Elements (except that if the 5 foot perimeter of yard surrounding each unit is grass, the Association shall maintain said area as they do other common areas) the exclusive use and possession whereof is extended hereby, at his own expense including (without limitation) responsibility for breakage, damage, malfunction and ordinary wear and tear, except that the' Association shall be responsible for lawn maintenance and snow removal as further determined by the Board. A Unit Owner shall not paint, or otherwise decorate or adorn or change the appearance of any such Limited Common Element in any manner contrary to such rules and regulations as may be established by the said Board: except that upon approval of said Board a Unit Owner may install shrubs, flowers or other plantings within said 5 foot perimeter. Each Unit Owner shall be responsible for the decoration, furnishing, housekeeping, general cleanliness and presentability of his or her 5 foot perimeter area if shrubs, flowers or other plantings are installed by Owner. C. Pursuant to Section , Wisconsin Statutes, or as amended, any Unit Owner of a Unit to which the use of any Limited Common Element is restricted may grant. by deed, subject to the rights of any existing mortgagee or secured party, the use of the Limited Common Element to any other Unit Owner. Such deed must be recorded in the Dane county Register of Deeds office and a copy thereof must be provided to the Association. After any such grant, the grantor shall have no further right to use the specified Limited Common Stock Element. D. Except as otherwise provided herein, the manner of use of the Limited Common Elements shall be determined solely by the Unit Owner or Owners who have the exclusive use of such Limited Common Elements. 14. RESTRCTONS ON USE Jhe U u Special Unit Elements, Limited Corrmon Elements, and Common Elements of the Condominium, shall be used for residential purposes only, by the Unit Owners, their respective family members, guests and approved tenants; and shall /

16 not be used for any trade or hu.si.nass, The Units shall not be leased or rented by the Unit Owner for transient or hotel purposes, which shall be defined as rental for any initial terms of less than three months and any subsequent terms of less than 30 days. Other than abiding by the foregoing, the Unit Owners shall have the absolute right to lease his or her Unit provided that said lease is made subject to the covenants and restrictions contained in this Declaration and further subject to the Bylaws and rules and regulations of the Association and approved by the Association. Notwithstanding anything to the contrary contained herein, the use of the Units, Special Unit Elements, Limited Common Elements, and Common Elements shall comply with all applicable ordinances and any other restrictions as contained in the Association Bylaws and any rules and regulations adopted by the Association. No use may unreasonably interfere with the use and enjoyment of the Common Elements by other Unit Owners. There shall be no storage of material, and there shall be no conduct of any activity, which would increase the insurance rates on the Condominium, Any and all attorney fees and other expenses incurred by the Association in the enforcement of this provision shall be reimbursed by the Unit Owner in violation and may be assessed against such Owner's Unit. Use is further restricted by any rules and regulations adopted by the ~ssociation. DAMAGE OR DESTRUCTON n the event the Common Elements are totally destroyed or sustain more than Ten Thousand Dollars ($10, ) in damage at any one time, the Association shall within fifteen (15) days of the date of damage determine whether the Condominium is damaged to an extent more than the available insurance proceeds. Once determined, the Association shall promptly notify the Unit Owners in writing of the adequacy or inadequacy of the insurance. Within ten (10) days of receipt of the notice, the Unit Owners shall have the opportunity to decide whether the Condomjnium should be partitioned. Partition shall only occur' by the affirmative vote of Unit Owners representing' at least seventy-five percent (75%) of the votes available in the Association. n case of such partition, the net proceeds of sale, together with the net proceeds of insurance, shall be considered as one fund and shall be divided among all Unit Owners in proportion of their percentage interests in the Common Elements and shall be distributed in accordance with the priority of interests in each Unit. n the event the required seventy-five percent (75%) affirmative votes are not cast within the ten day period or in the event the damage sustained is less than or equal to Ten Thousand Dollars ($1O,OOO.00), the Association shall promptly undertake to repair or reconstruct the damaged property to a condition compatible with the remainder of the Condominium. Upon reconstruction, the Association may vary the design, plan, and specifications of the Common Elements from that of the original: provided, however, that the number of square feet of any Unit may not vary by more than five percent (5%) from the number of square feet for such Unit as originally constructed and,

17 TVOL psf 23 provided further, that the location and floor plan of the damaged ) buildings shall be substantially the same as they were prior to the damage. n the event insurance proceeds are insufficient to pay the estimated or actual costs of reconstruction, the shortage shall be considered a Common Expense, and the Association shall 1 have the responsibility and the right to levy assessments against the Unit Owners as provided herein. A. Each r sha 1 obtain and maintain insurance for the, Units, -a* Special Unit Elements, covering the perl~s or iire, =tended coverage, vandalism, and malicious mischief on a repair b -. and replacement cost basis, of an amount not less than the full replacement value of the insured property. The Association, Unit Owners and mortgagees of Units shall be named as insured as their interests appear. For purposes of this provision and for the Declaration, "mortgagee" shall mean the holder of any recorded mortgage encumbering one or more Units or a land contract seller. 1 B. Each Unit Owner shall also car erson e- ty - contents dnd public liabi 1 y rnsurance on his--own--unit in 1 a,ccordanc&w such reason-tion may by ByLaw or rule or regulation establish. C. The Association shall obtain and maintain insurance for the Common Elements, including Limited Common Elements, coverin'g \ the perils of fire, extended coverage, vandalism, and malicious mischief on a repair and replacement cost basis, for an amount not less than the full replacement value of the insured property. n addition, the Association shall maintain comprehensive general liability insurance against all claims commonly insured against and in such amounts as the Association shall deem suitable; provided, however, the minimum limits for bodily injury and property damage shall be $1,000, The policies shall include standard cbverage for the errors and omissions of Association directors and officers. Such policies shall also contain "severability of interest" endorsements which shall preclude the insurer from denying the claim of a Unit Owner because of negligence on the part of the Association or other Unit Owners. 7' D. Maintenance of insurance by the Association does not relieve nor prohibit Unit Owners from maintaining insurance with limits in excess of those maintained by,the Association or with regard to risks not insured by it. Unit Owners are encouraged to ] submit copies of their Condominium Disclosure Materials to their insurance carriers in order to ensure adequate property and a liability coverages on their personal - property Units and Limited Comqn ~iements. - j E. The Association shall maintain fidelity coverage against dishonest acts by any person responsible for handling the 1 fund. belonging to or administered by the Association. The A8ooci8tion shall be the named insured, and the insurance shall b C

18 J f be in an amount of not less than one hunzred fifty percent (1509) of the Association's annual operating expenses and reserves. F. Any and all premiums associated with the insurance purchased by the Association shall be a Common Expense to be paid by monthly assessments levied by the Association; and such payments shall be held in a separate escrow account of the Association and used solely for the payment of the premiums related to the insurance to be maintained by the Association hereunder. The Association shall act as the trustee for the purpose of obtaining insurance coverage and for the receipt, application, and disbursement of proceeds. 17. ALTERATON AND DECORATON OF UNTS A. A Unit Owner may make improvements or alterations within his or her Unit; provided however, that such improvements or alterations do not impair the structural soundness or integrity or lessen the support of any portion of the Condominium, do not reduce the value of the Condominium, and do not impair any easement. A Unit Owner may not change the exterior appearance of a Unit, Special Unit Element, or any portion of the Common Elements (including Limited Common Elements) without obtaining the written permission of the Association's Board of Directors. Any improvements or alteration which changes the floor plan or room dimensions of a Unit must be evidenced by the recording of a modification to the Condominium Plat before it shall be effective and must comply with the thenlegal requirements for such a purpose. Furthermore, any approved improvements or alterations must be accomplished in accordance with applicable laws and regulations, must not unreasonably interfere with the use and enjoyment of other Units, Special Unit Elements, Limited Common Elements or the Common Elements, and must not be in violation of any underlying mortgage, land, contract, or similar security interest, % B. All expenses involved in such improvements or alterations, including expenses to the Association, which it may charge as a special assessment to the affected Units, shall be borne by the Unit Owners involved. EASEMENTS Easements are reserved over, through and underneath the Common Elements for ingress and egress and for present and future utility services, including but not limited to, easements for water pipes, sanitary sewer pipes, emergency sewer lines, storm drainage pipes, electrical wires, television wires, security wires, and street lights, whether or not shown on the exhibits attached hereto. Easements for such utility services 'are reserved to the Declarant and Unit Owners. Easements for ingress and egress are reserved to the Association in, over, and under the Units, Special Unit Elements and Limited Common Elements, their ceilings, floors, and walls for the purpose of making any

19 repairs which are the obligation of the Association. The Association shall be responsible for any damage resulting from such easements and any costs related thereto shall be regarded as a Common Expense. 19. EASEMENTS' RUN WTH THE LAND ~ l l easements and rights set forth in this Declaration run with the land are are subject to the control of the Association. No Unit Owner shall commit any act which would jeopardize the soundness or safety of the property subject to this Declaration, reduce the value thereof, or impair any easement or hereditament. 20. MANTENANCE A. Each Unit Owner is responsible for the decoration, furnishing, housekeeping, repair and maintenance of that owner's Unit and Special Unit Elements and the general cleanliness and presentability of the Limited Common Elements whose use is reserved,to the Unit. The Association is responsible for the decoration, furnishing, housekeeping, repair, garbage collection, and maintenance of the Common Elements, and snow removal of the Limited Common driveways. n meeting its - responsibilities hereunder or otherwise the Unit Owner may not alter the appearance or design of the exterior of the buildings or use a Unit, Special Unit Elements, the Limited Common Elements reserved to it, or the Common Elements in a manner which adversely affects the exterior appearance of the building. The Association may enter into management agreements providing for necessary maintenance, repair and replacement of Common Elements, the making of any additions or improvements thereto, snow removal and garbage collection. B..The Association may enter any Unit, Special unit Elements, and Limited Common Elements at reasonable times and under reasonable conditions when necessary in connection with any maintenance, construction, or repair of public utilities and for any other matter for which the Association is responsible. Prior notice to the Unit Owners shall be attemptgd, and the entry shall be made with as little inconvenience to the Unit Owner as possible under the circumstances. Any damage caused thereby shall be repaired by the Association and shall be treated as a Common Expense, as hereinafter defined. 21. COMMON EXPENSES A. Each Unit Owner shall be liable for the share of expenses ("Common Expenses") of the Association assessed against such Owner's Unit unless the Declarant elects (the "election") in writing to not be assessed for Common Expenses. Such election shall be deemed to be made by the Declarant unless such Declarant gives notice otherwise in writing to the President or Secretary of the Association, in which case the Declarant shall be assessed

20 Common Expenses effective the first day of the month after receipt by the President or Secretary of such notice. n the event the Declarant makes the election referred to above, such Declarant shall be responsible for all expenses and costs associated with the Unit (for example, but not limited to, maintenance, snow removal, insurance, lawn care, pest control, etc. ) which would otherwise be paid by the Association, The Association shall have no liability for Common Expenses or such other items as may be assessed as Common Expenses with regard to units the Declarant has which have made said election. This "election" is available only the Declarant as defined herein. B. Common Expenses shall be allocated among the Units 'in the proportions specified in Paragraph a above. No Unit Owner may exempt himself or herself from liability for contribution towards the Common Expenses by waiver of the use or enjoyment of any of the Common Elements or by the abandonment of his or her Unit, except as provided above. C. The assessment of Common Expenses, together with such interest as the Association may impose in the Bylaws for delinquencies and with costs of collection and actual attorney fees, constitute a lien on the Units against which they are' assessed. Attachment, filing, effectiveness, priority, and.enforcement of the lien shall be as provided in Section , Wisconsin Statutes, or as amended. Provided, however that any such lien shall be inferior and subordinate to the lien for all sums payable to any first mortgagee of record. D. f any assessment of Common Expenses is delinquent and a statement of condominium lien as described in Section (9), Wisconsin Statutes, or as amended, has been recorded against a Unit, the Association may suspend the voting rights of the delinquent Unit Owner. A delinquency resulting in the filing of a statement of Condominium lien against a Unit shall constitute an act of default under any mortgage secured by the Unit. E. Except as otherwise provided herein, unpaid Common Expenses assessed against a Unit shall be a joint and several liability of the seller and purchaser in a voluntary transfer of the Unit. F. The Association shall have a lien, from the date an assessment is made, upon any Unit for assessmezts made against that Unit, which assessments remain unpaid. The lien shall secure payment of the assessment, interest, and costs of collection, including reasonable attorney fees. The lien may be recorded in the Dane County Register of Deeds office by an instrument executed by the Association and may be foreclosed. The Unit Owner shall be personally liable for all unpaid assessments, interest, and costs of collection. This liability shall not terminate upon transfer of ownership or upon abandonment by the Unit Owner. When any lien is foreclosed, if

21 the Unit Owner remains in possession of the Unit, he or she shall pay a reasonable rental value of the Unit. The Association shall be entitled to the appointment of a receiver of the Unit, as a matter of strict right. Assessments shall be paid without offset or deduction. NO unit Owner may withhold payment of any assessment or any part thereof because of any dispute which may exist among a Unit Owner, the Association, the Declarant, or any of them. Rather, the Unit Owner shall pay all assessments pending resolution of any dispute. G. n the event the mortgagee of a first mortgage of record or any other purchaser of the Unit obtains title to the Unit as a result of foreclosure of a mortgage, or as a result of a conveyance in lieu of.foreclosure, such purchaser or his or her successors and assigns shall not be liable for the total share of Common Expenses or assessments by the Association pertaining to such Unit cr chargeable to the former Unit Owner, which Common Expenses or assessments became due prior to the acquisition of title. Such unpaid share of Common Expenses or assessments shall be deemed to be Common Expenses collectible proportionately from all of the Unit Owners except the mortgagee or any other purchaser of a Unit who obtained title to the Unit as a result of foreclosure of a mortgage, or as a result of a conveyance in lieu of foreclosure. 8. Except for items such as insurance premiums which must be prepaid, assessment shall be paid in advance, in the form of a monthly maintenance fee determined by a budget of Common Expenses prepared by the Association. Special assessments for items not provided for in the budget shall be paid at such time or times, in a lump sum, or in such installments, as the Association may determine. UTLTES Each Unit Owner shall pay for his own telephone, electrical, and other utilities which are separately metered or billed to each user by the respective utility company. Utilities which are not separately metered or billed shall be treated as part of the Common Expense. 23. NEGLGENCE OF OWNER f, due to the negligent act or omission of a Unit Owner, or a member of his family, a housetdld pet, or of a guest or other authorized occupant or visitor of such Unit Owner, damage shall be caused to the Common Elements or to a Unit or Units owned by others, or Special Unit Elements, or maintenance, repairs or replacements shall be required which would otherwise be at the Common Expense, then such Unit Owner shall pay for such' daauge and such maintenance, repairs and replacements as may be determined by the Board, subject to the rules, regulations and bylnra of the Association.

22 24. LEASNG - OF UNTS The Units shall not be leased or rented by the Unit Owner for transient or hotel purposes, which shall be defined as rental for any initial term of less than three months (excluding month to month tenants) and any subsequent terms of less than 30 days. Other,than abiding by the foregoing, each of the Unit Owners shall have the absolute right to lease his or her Unit provided that said lease is made subject to the covenants and restrictions contained in this Declaration and further subject to the Bylaws and the rules and regulations of the Association, and further subject to approval by the Association's Board of Directors. 25. RESERVED RGHTS OF DECLARANT; TURNOVER OF CONTROL A. Except as provided in Section (2) (d), Wisconsin Statutes, qr as amended, Declarant reserves the right to appoint and remove officers and directors of the Association and to exercise the powers and responsibilities of the Association, its members and its directors until the earlier of either of the following shall occur: (i) expiration of ten (10) years from the date this Declaration is recorded: or (ii) thirty (30) days after conveyance to purchasers of Units entitled to cast seventy-five percent (75%) of the votes available in the Association. During this period, Declarant shall have the full and exclusive right to take all action on behalf of the Association, including but not limited to, the right to (a) enter into leases of Units, (b) make contracts and agreements on behalf of the Association for the maintenance, operation, and management of the Condominium, (c) determine, levy, and collect assessments, (d) grant easements, and (e) enact and enforce rules and regulations of the use of the Condominium, Any contracts or agreements entered into by Declarant on behalf of the Association with Declarant or an affiliate of Declarant shall not extend for a period exceeding one (1) year; provided, however, that such contracts or agreements may be automatically renewable if a reasonable period for giving notice of termination is provided at the end of each term. Furthermore, any such contracts or agreements shall provide for termination by either party without cause and without payment of a termination fee upon at least ninety (90) days prior written notice. ~otwithstanding the foregoing, this provision shall not apply to any lease, the tenination of which would terminate the Condomini-. 8. Notwithstanding any provision to the contrary, ~eclarant reserves the following rights: (i) to continue any unfinished development work on any unsold Unit, and on the Limited Common Elements and Common Elements (i'ncluding obtaining any necessary easements therefore) ; (ii) to conduct promotional and, sales activities using unsold Units and Special Unit Elements, the Llmlted Common Elements and Common Elements, which activities shall include but need not be limited to maintaining sales and management off ices, model Units, parking areas, and advertising

23 signs: and (iii) to do all other acts Declarant shall deem reasonably necessary in connection with the development and sale of the remaining Units, However, any such acts shall not violate the rights of the Unit Owners or their mortgagees or unreasonably interfere with the use and enjoyment of the Units, Special Unit Elements, Limited Common Elements, or Common Elements. Furthermore, Declarant shall be responsible for any damages resulting from the exercise of such rights. Declarant shall also have the right to grant easements over, through, or under any part of the Condominium for the benefit of the Condominium as a whole or any part thereof, C. The Declarant may assign or delegate some or all of the Declarant's rights and duties (including the rights granted pursuant to this Section 25) hereunder by recording an instrument reciting such assignment or delegation with the Register of Deeds of Dane County, Wisconsin. D. Declarant, and persons it may select, shall have the ' right of ingress and egress over, upon, and across the general and limited common areas and facilities, or any additional land which may hereafter be added to the project in accordance with the provisions of paragraph 2, and the right to store materials thereon and make such other use thereof as may be reasonably necessary incident to construction, development, and sales of the.. Units and operation of the Units and common areas and facilities in connection with the Condominium and the overall development of which the property is a part. Declarant and its agent shall retain the right to use the sales office and model Units and the general and limited common areas and facilities in connection therewith during the period of development and sale of the Condominium, including additional phases of development. ASSOCATON RULES AND REGULATONS The Association may from time to time promulgate such reasonable rules and regulations as are deemed necessary and desirable to carry out the purposes and intents of this Declaration, to promote the harmonious usage of the Common Elements, and to cause each Unit Owner to be free from any unreasonable interference with the peaceful use of his Unit and its appurtenances AGENT FOR SERVCE OF PROCESS ' - '. i <, -5 &C Service of process on the Condominium or the Association may be made on Thomas G. Beach, 315 W. Gorham Street, Madison, Wisconsin The Board of Directors of the Association may, however, at any time designate a different. person to receive service of process. The designation of a different person to receive service of process shall become effective upon being filed with the Register of Deeds for Dane County, Wisconsin. C

24 28. MSCELLANEOUS PROVSONS A. mpairment of Structural ntegrity of Buildinq. Nothing shall be done in any Unit, Special Unit Element or in, on, or to the Common Elements which will impair the structural integrity of the property or which would structurally change the property except as is otherwise provided herein. No Unit Owner shall overload the electric wiring in the property or operate any machines, appliances, accessories or equipment in such manner as to cause, in the judgment of the Board, an unreasonable disturbance to others. B. Compliance. Each Unit Owner shall comply strictly with the covenants, conditions and restrictions set forth in this Declaration or in the deed to his Unit, and with the Bylaws and with the rules and regulations adopted pursuant thereto, as either of the same are amended from time to time. Failure to comply with any of the same shall be grounds for action to recover sums due, for damages or injunctive relief or both, maintainable by the Board of Directors on behalf of the Association or; in a proper case, by an aggrieved Unit Owner. Furthermore, all Unit Owners, tenants of such owners, employees of owners and tenants, or any other persons that in any manner use the property or any part thereof shall be subject to the Wisconsin Condominium Ownership Act and to this Declaration, the Articles of ncorporation of the Associa$ion and its Bylaws. C. Display of Model by Declarant. Until all Units are sold Declarant may occupy or grant permission to any person or entity to occupy, with or without rental, as determined by the Declarant, one or more Units for business or promotional purposes, including clerical activities, sales offices, model Units for display and the like; provided that the activities in the Units so occupied do not unreasonably interfere with the quiet enjoyment of any other Unit Owner or occupant. D. Severability and nterpretation. The invalidity of any covenant, restriction, condition, limitation, or any other provision of this Declaration or any part of the,same, shall not impair or affect in any manner the validity, enforceability or effect of the rest of this Declaration. The intent of this Declaration is to comply with Wisconsin Statutes and the provisions hereof shall be interpreted in the light of this expressed indication of intent. E. Certificates. All certificates stating facts in regard to the Condominium or any of its Units, including statements of condominium lien, statements regarding unpaid assessments against anv Unit or the then-current status of documents related to the ~ohdorninium, shall be signed on behalf of the Association by its secretary or assistant secretary.

25 F. Encroachments. f any portion of a Unit, Special Unit Element, Limited Common Element, or Common Elements encroaches upon another, an easement for the encroachment and its maintenance shall exist. n the event all or a portion of the Condominium is damaged and subsequently reconstructed, the Unit Owners shall allow encroachments on the Units, Limited Common Elements, or on the Common Elements during construction, and easements for such encroachments and their maintenance shall exist. G. Amendments. Except for expansion of the Condominium as provided in paragraph 2, and except as otherwise specifically provided herein, this Declaration may only be amended with the written consent of at least seventy-five (75%) percent of the Unit Owners and with the written consent of at least seventy-five (75%) percent of the first mortgagees of the Units; provided, however, that no such amendment may substantially impair the security of any Unit mortgagee. No amendment to this Declaration affecting the status or rights of the Declarant may be adopted without the written consent of Declarant. No amendment to this Declaration shall be effective until an instrument containing the amendment and stating that the required consents or votes were duly obtqined, signed on behalf of the Association, and duly acknowledged or authenticated, is recorded with the Dane County ~egister of Deeds. For purposes of this provision, each Unit shall have one (1) vote. Furthermore, for purposes of clarification, it is intended that any amendment shall require both the affirmative vote of at least seventy-five percent (75%) of the Unit Owners and the affirmative vote of at least seventy-five percent (75%) of the first mortgagees, calculated on a per-unit basis. An expansion of this Condominium Declaration pursuant to Paragraphs 2, 3 and 5 above shall not be considered an namendment" as provided in this paragraph. Such an expansion shall be at the discretion of the Declarant and not subject to the approvals required in this paragraph. Declarant is hereby vested with the right to amend and supplement this Declaration and the floor plans as may be reasonably necessary or desirable to facilitate the practical, technical, administrative, or functional integration of Phase 1 1 or of any subsequent phase, or the addition of additional land in-to the Condominium. As each additional phase is added to the Condominium, the supplemental Declaration and supplemental condominium plat and plans associated with such phase shall, in the manner detailed in paragraph 2 of this Declaration, supplement and amend all such instruments relating to all phases previously included 1 in the Condominium. 1 H. Remedies. f any Unit Owner fails to comply with any provisions of the Act, this Declaration, Association Bylaws, Articles of ncorporation, or any rules and regulations promul- 1 gated by the Association, the Unit Owner may be sued for damages caused by the failure or for injunctive relief, or both, by the t L L