GUIDE TO SIGNIFICANT ISSUES

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WOODSTONE CONDOMINIUM ASSOCIATION GUIDE TO SIGNIFICANT ISSUES IN THE MASTER DEED & BYLAWS July 2015 A. BOARD OF DIRECTORS: 1. There shall be nine (9) Directors. The Directors shall be divided into three classes, each class with terms of office of three (3) years. Each class of Directors will have a staggered term of office such that each year one class of Directors (3) shall be elected at the Annual Meeting of the Woodstone Condominium Association. 2. At the first Board of Directors meeting immediately following the Annual Meeting, a President, Vice President, Secretary, and Treasurer shall be elected. They shall serve for no more than two (2) consecutive one-year terms. These four (4) positions will act as an Executive Committee (EC) of the Board. 3. The Executive Committee shall carry out the directions of the Board of Directors (BOD). 4. The Executive Committee shall respond to requests and issues raised by Co-owners between Board of Directors meetings. 5. The Executive Committee shall research and make recommendations to the Board of Directors relative to actions or changes that are deemed to be necessary. 6. The Executive Committee shall oversee the work of the committees of the Board of Directors between Board of Directors meetings. 7. The Executive Committee shall hold monthly meetings with agendas and minutes made available to all members of the Board of Directors. 8. In addition to the regularly-scheduled Board Meeting following the Annual Meeting of the Woodstone Condominium Association, there shall be a minimum of two (2) regular meetings of the full Board each year. 9. The Board will assign members to, and be advised by, the following standing committees: Annual Owners Meeting House Painting Architectural Control (ACC) Landscaping, Maintenance & Plowing Frog Pond Sewer Hospitality Website and Communications PAGE 1 OF 7

B. ARCHITECTURAL CONTROL: 1. ALL Co-Owners building a house must follow all steps of the Woodstone Condominium Association Construction Checklist adopted by the Board of Directors. Those who fail to comply are subject to fines. (See Penalties section below) This Checklist is attached and made part of this Guide to Significant Issues in the Master Deed & Bylaws as well as available as a separate document. 2. Co-Owners are required to choose a siding color and an accent color from the list of Cabot O.V.T. Solid Color Stain and House and Trim paints as published by Cabot in 2009, and approved by the Architectural Control Committee (ACC). Accent colors are defined as any exterior area of the house that is not siding or deck surface, i.e., trim, rails, doors, and shingles on gables. A second accent color may be used upon approval of the Architectural Control Committee. 3. Houses located in pods from which building sites have been eliminated may be resited only upon approval of both the Architectural Control Committee and the Co- Owners of adjacent units. 4. Co-Owners shall require that contractors building their houses post a bond with the Woodstone Condominium Association in the amount of $10,000 to ensure that all Common Elements are restored after the completion of construction. 5. PENALTIES FOR DEVIATIONS TO APPROVED ARCHTECTURAL CONTROL COMMITTEE PLANS: If construction on any site deviates from the final building plan approved by the Architectural Control Committee, the Co-Owner of that site will be sent notice by registered mail that discrepancies need to be corrected. The Co- Owner may submit a revised plan to the ACC for approval or notify the Woodstone Condominium Association Board, in writing, of intent to correct the deviation. Notification should be executed by certified mail with return receipt requested. If a Co-Owner fails to take prompt corrective action, the Board will call a special meeting with that Co-Owner two weeks after the registered notice has been sent. If no agreement is reached by the close of that meeting, the Board will vote on whether to assess penalties, with a majority vote required for assessment. The assessment will be a fine of up to $1,000 per day, beginning ten (10) days after the Board vote and continuing until a corrective action plan has been received by the Board or corrective action has been completed by the Co-Owner. C. RESTRICTED ACTIVITIES AND ARTICLES: ALL outdoor fires are strictly prohibited with the following exceptions: Within the Limited Common Elements: Grills are allowed on decks provided adequate space is allowed to avoid burnable materials (house/deck). Within the General Common Elements (includes patios): Wood fires are permitted on a stoned area with an elevated container and a screen-enclosed top. Normal safety procedures should prevail. 1. A patio may be added to a house only upon submission of a plan and its approval by both the Architectural Control Committee and the Co-Owners of neighboring units. The patio may be located only behind the rear deck of the house, may not extend more than 15 feet from the rear deck, and may not exceed the width of the deck. PAGE 2 OF 7

2. The Board of Directors, in its discretion, may grant a waiver of specified limited duration, to the prohibition against cooking on charcoal or gas grills at locations other than those identified in Section 5 of Article XII of the Bylaws, and to the erection of tents that is precluded by Section 6 of Article XII. The waiver may allow either or both of the previously identified activities on specified locations on the Common Elements of the Condominium as defined in Article III, Section 3.1, Subsection (f) of the Master Deed. The power to grant waivers with regard to other prohibited activities enumerated in Sections V and VI of the Bylaws, or any other section of Article XII, is not be be implied by this section. 3. No animal shall be permitted to run loose upon the Common Elements, limited or general, and the owner of each pet shall be responsible for cleaning up after it. 4. FROG POND (Rules as posted): For use of Woodstone Residents And their guests Only No Lifeguard on duty Swim at your own risk Children Must Be Accompanied by an Adult Fishing Catch and Release Only Do Not Disturb the Frogs, Other Wildlife or Vegetation D. MAINTENANCE BY CO-OWNER: 1. The exterior of each structure must be repainted/restained on or before the seventh (7 th ) anniversary of the final certificate of occupancy and at least once within every seven-year period thereafter, unless an extension of time is requested and granted by a three-member subcommittee. The first subcommittee shall be comprised of the Board ACC representative and two others selected by the Board. A painting schedule will be posted on the Association's website and will be available at every Annual Meeting for review and update. 2. Each Co-Owner shall 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 and systems, and any other elements in any Unit which are appurtenant to or which may affect any other Unit. E. RENTAL OF CO-OWNERS' PROPERTIES: 1. A copy of the rental agreement must be on file with the Woodstone Condominium Association. These should be mailed to: Woodstone Condominium Association P.O. Box 2441 Traverse City, MI 49685 2. Only one (1) rental per seven-day period is allowed. PAGE 3 OF 7

F. ASSESSMENTS, FINES, AND LATE FEES: 1. Unpaid assessments and fines shall be deemed in default if not paid within thirty (30) days after they are due. A late notice shall be sent to the Co-Owner thirty (30) days after the due date. A Notice of Intent to File a Lien shall be sent to the Co-Owner after sixty (60) days. A lien shall be placed on the Co-Owner's unit ninety (90) days after the due date. Assessments and penalties in default shall bear interest at the rate of 10% per annum until paid in full, and late charges of up to $20 per assessment will be assessed. 2. Upon owner notification of a violation of the Woodstone Condominium Association Bylaws or Guide to Significant Issues in the Master Deed & Bylaws, a fine of up to $150 per month may be charged until there is correction of the violation or an acceptable plan for resolution of the violation is made. PAGE 4 OF 7

WOODSTONE CONDMINIUM ASSOCIATION CONSTRUCTION CHECKLIST July 2015 The purpose of this Construction Checklist is to remind you of the building process in Woodstone. At the time you purchased your site, you should have received copies of the Woodstone Condominium Bylaws. Article XII contains the information to review, particularly Section 3, which describes the responsibilities of the Architectural Control Committee (ACC). Current members of the Architectural Control Committee (ACC) are: Tom Phillips Shirley Debelack Dennis Moroz tomphillips.architect@att.net sdebelack@thehomesteadresort.com dlmoroz@comcast.net This checklist is a simplified summary of Article XII, Section 3. We trust you will find it useful and encourage you to share it with your builder. 1. Review the developer's prototype architectural plans, landscaping plans, and exterior color choices for siding and accent colors for your site. 2. Submit a packet to all the ACC members. The packet must contain the site plan, house plans, exterior color choices, grading, and landscaping plan, including irrigation. 3. The ACC will respond to the owner's submission within two (2) weeks, providing the received packet is complete. 4. Once the ACC has approved the pre-construction packet, the owner will notify the Woodstone Condominium Association of the date construction is scheduled to begin. 5. The owner will arrange for electrical support to be provided to the site so that portable compressors or generators will not be required for workers. Noise pollution is a major issue with owners in Woodstone. 6. Prior to the start of construction, the owner will submit $10,000 to the Woodstone Condominium Association as as reserve to ensure compliance to approved architectural plans and the restoration of common elements. Return of any unspent funds (ACC Review and Common Elements Restoration Reserve) will occur upon completion of approved construction, restoration of common element damage, and landscaping plan installation review. The owner is responsible for completing the construction as approved. 7. It is the responsibility of the site owner to manage his/her contractor in order to ensure compliance with approved architectural plans and to ensure that common elements (roads, sewer collection systems and utilities) are restored to pre-construction condition. PAGE 5 OF 7

8. Before excavation begins, the owner/builder must make certain to have all six (6) utility lines flagged: electric, natural gas, telephone, cable TV/Internet, sewer/septic location, and well water. 9. Before construction begins, have building(s) to be constructed staked for review and approval of the ACC. 10. After staking is reviewed and approved, the owner should have the contractor contact a qualified forestry specialist (such as Deering Tree Service) to perform a site tree review and determine which trees beyond the site footprint need to be removed and which trees need to be protected. The WCA prefers to retain as many trees as possible. The homeowner/contractor can identify tree(s) outside of the home's footprint they want to have removed by wrapping a yellow ribbon around the trunk of any such tree(s). Trees marked with a yellow ribbon will be considered during the site tree review, but the decision of whether to remove or protect the tree(s) will be determined by the WCA Board Member with responsibility for oversight of trees based on the assessment done by the qualified forestry specialist. After the homeowner and the WCA Board member with responsibility for trees agrees on the tree(s) to be removed or protected, all trees to be removed will be marked with red ribbons and the Landscape Plan will be used as a reference to document decisions (marking trees to be protected). The Landscape Plan is part of the package of documents submitted to the WCA Architectural Control Committee (ACC) prior to beginning construction. Note: There is a $100 fee for the site tree review (the fee for services provided by the qualified forestry specialist) to be paid by the homeowner to the WCA (or to be deducted from the construction deposit). 11. Within five (5) days of the completion of the foundation, furnish the ACC with a copy of an as-built foundation survey done by a licensed surveyor showing that the foundation is within the designated building area. 12. Ensure that construction is completed within sixteen (16) consecutive months. Construction activities are deemed to be initiated on the date that clearing of trees from the foundation area or excavation for the foundation has begun, whichever occurs first. Completion of construction will be deemed to occur on the date of the issuance of the occupancy permit and verification by an ACC Board Member that the project conforms to the approved plans. The $5,000 ACC review fee or unspent balance of the fee will then be refunded. 13. All exterior site and dwelling lighting shall be of an incandescent nature or use energy efficient bulbs. The lighting shall be enclosed in fixtures that shield the light source from view and eliminate upward and outward directing light. The only exception is at the main home entrance door. Remember, light the ground, not the sky. Lighting suggestions may be found at www.darksky.org. 14. Because of the proximity of our homes in Woodstone, we ask that you work with your builder and neighbors during the building process to be considerate of parking, noise, and debris management. Construction activities should normally take place between 7:30 A.M. and 5 P.M. 15. Exterior modifications to the home, such as the addition of dormers, should follow all ACC procedures. An escrow deposit is not required for modifications of an existing home. PAGE 6 OF 7

16. All notices, plans, architectural review fee, and evidence of the contractor's bond should be sent to: Woodstone Condominium Association P.O. Box 2441 Traverse City, MI 49685 Please notify a member of the ACC that you have sent an item to the P.O. Box so we can respond promptly to your submission. Woodstone Condominium Association Guide to Significant Issues in the Master Deed & Bylaws Woodstone Condominium Association Construction Checklist November 2007 Revised: June 2009 Revised: August 2010 Revised: September 2010 Revised: July 2015 PAGE 7 OF 7