TABLE OF CONTENTS PAGE

TABLE OF CONTENTS PAGE I. Definitions 1 II. General Rules 5 III. Rules Regarding Administration of the Property 6 A. Board Meetings and Association Records 6 B. Assessments and Collections 6 C. Insurance 7 D. Damage to Common Area and Buildings 7 E. Maintenance Requests 7 IV. Rules Regarding Use and Appearance of the Property 7 A. Roof Access Restrictions 7 B. Alterations and Additions 7 C. Antennas, Wiring 8 D. Satellite Dish Guidelines 8 E. Exterior Doors, Windows and Screens 9 F. Storm Doors 10 G. Use and Storage 11 H. Nuisance Guidelines 12 I. Garage and Moving Sales 12 J. Community Area and Lots 12 K. Winter De-icing 13 L. Seasonal Decorations 13 M. Signs and Advertisements 14 N. Garbage, Trash and Recyclables 14 V. Rules Regarding Landscape Planting, Maintenance 15 A. Gardens 15 B. Lawn, Trees, Shrubs and Ground-cover Maintenance 15 C. Potted Plants and Hanging Baskets 16 D. Statuary, Garden Ornaments and Plaques 16 E. Garden Hoses and Stepping Stones 16 VI. Rules Regarding Pets 17 A. Types of Pets 17 B. Attending to Pets 17 C. Controlling Pets 17 VII. Vehicle Regulations 18 A. General Rules 18 B. Enforcement 19 C. Notices and Authorization to Tow 20 Exhibit VII.1 Parking Violation Notice 21 Exhibit VII.2 Record of Vehicle Violation 22 i

VIII. Rules Regarding Sale and Transfer of Ownership 23 Exhibit VIII.1 Resale/Transfer of Ownership Form 25 Exhibit VIII.2 Resale Information Sheet 26 Exhibit VIII.3 Notice Form 27 Exhibit VIII.4 Explanation of Revocable Proxy 28 Exhibit VIII.5 Instructions for completing Revocable Proxy 29 Exhibit VIII.6 Revocable Proxy 30 IX. Rules Regarding Refinancing of Townhome 31 Exhibit IX.1 Refinancing of Townhome Notice 32 Exhibit IX.2 Refinancing Information Sheet 33 X. Rules Related to Leases, Tenants and Non-Resident Townhome Owners 34 Exhibit X.1Lease Rider 35 Exhibit X.2 Lessor Information Form 36 XI. Policies and Procedures Regarding Enforcement 37 Exhibit XI.1 Violation Complaint 41 Exhibit XI.2 First Notice of Violation 42 Exhibit XI.3 Notice of Violation 43 Exhibit XI.4 Request for Hearing 44 Exhibit XI.5 Notice of Determination Regarding Violation 46 ii

I. DEFINITIONS In the event a term is used in the Rules and Regulations which is not defined anywhere herein, its definition shall be determined by referring, in the order which follows: 1. The Declaration 2. The Bylaws 3. Its common usage within the Association 4. In its commonly understood meaning as indicated both by the context in which it is found and by its dictionary definition. A. Association The Tall Oaks of Hanover Townhome Owners Association, an Illinois Not for Profit corporation, its successors and assigns. B. Board - The Board of Directors of the Association constituted at any time or from time to time in accordance with the applicable provisions of Article IV of the Declaration. C. Bylaws - The Bylaws of Tall Oaks of Hanover Townhomes Owners Association, and as amended from time to time thereafter. D. Charges The Maintenance Assessment, any special assessment levied by the Association and/or any special charges or payments which an Owner is required to pay or for which an Owner is liable under the Declaration and the By-Laws or Rules and Regulations. E. Community Area The real property to be conveyed to and owned by the Association which is legally described in Exhibit D of the Master Declaration and by this reference made a part hereof and such additions thereto as may hereafter be brought within the jurisdiction of, or conveyed to, the Association. In addition, the Community Area shall also include the improvements located on the real property described in Exhibit D in the Master Declaration, including, but not limited to, green space, guest parking areas, driveways, walkways, street lights, entranceway islands and other islands, signage and storm water detention areas. The Community Area shall also include all easement rights granted to the Association pursuant to the Tall Oaks of Hanover Plat and its Declaration and any sanitary and storm water sewer mains and water mains that are not publicly dedicated and that are located within said easement area. F. Master Declaration The Master Declaration of Tall Oaks of Hanover Homeowners Association. G. Declaration - The Declaration of Covenants, Conditions and Restrictions for Tall Oaks of Hanover Townhomes Owners Association which was recorded in the Office of the Recorder of Deeds of Du Page County, Illinois on August 20, 1992 as Document No. R92-158793, and as amended from time to time thereafter. H. Dwelling Units Any of the one hundred twenty-nine (129) legally described parcels of 1

real estate upon which a Townhome is constructed or to be constructed. Each parcel of real estate, whether or not improved, is a Dwelling Unit hereunder. The precise legal description of the real estate, which makes up each Dwelling Unit, shall be set forth in the deed, which conveys the Dwelling Unit from the Developer to the first purchaser of such Dwelling Unit. I. Family One or more persons each related to the other by blood, marriage, or legal adoption, or a group of not more than three (3) persons not all so related, together with his or their domestic servants, maintaining a common household in a Townhome. J. Lot Any plot of land shown upon any Plat of Subdivision for the Properties and upon which on individual townhome dwelling is constructed. K. Maintenance Assessment The amounts which the Association shall assess and collect from the Owners to pay the Maintenance Expenses and accumulate reserves for such expenses, as more fully described in Article VII of the Declaration. L. Maintenance Expenses The expenses of administration (including management and professional services), operation, maintenance, repair, replacement, landscaping and snow removal of Townhome Exteriors (as hereinafter defined); the cost and expense incurred for the maintenance, repair and replacement of personal property acquired and used by the Association in connection with its maintenance of the Townhome Exteriors; any expenses specifically designated as Maintenance Expenses by the Declaration; and any other expenses lawfully incurred by the Association for the common benefit of all of the Owners. M. Managing Agent or Manager The person or entity which has been employed by the Association to manage the day-to-day administration of the Property in the manner directed by the Board. N. Mortgagee The holder of a bona fide first mortgage, first trust deed or equivalent security interest in a Townhome. O. Owner or Townhome Owner The person or persons whose estates or interests individually or collectively aggregate fee simple absolute ownership of the Townhome. The owner shall also include any beneficiary of a trust, shareholder of a corporation or partner of a partnership holding legal title to a Townhome. P. Person A natural individual, corporation, partnership, trustee or other legal entity capable of holding title to real estate. Q. Property All the real property against which the Declaration has been recorded, including any improvements thereon, together with abutting parkways. R. Real Estate The certain real estate described in Exhibit A of the Declaration and such additions thereto as may hereafter be brought within the jurisdiction of the Association. S. Resident - Any person who resides in a Townhome, including the Owners, families of Owners and tenants of Owners. 2

T. Rules or Rules and Regulations - The Rules and Regulations of the Association, as adopted pursuant to the powers available to the Association and the Board, and amended from time to time thereafter. U. Townhome - A residential housing unit consisting of a group of rooms which may be attached to one or more other Townhomes by common party walls and which is designed or intended for the exclusive use as a living quarters for one family, as herein defined, as constructed by the Developer and the parcel of real estate upon which the Townhome is constructed. V. Townhome Exterior The roof foundation, steps, footings, outer surface of exterior walls, garage doors and deck of each Townhome including, driveways, walkways and landscaping, all to the extent that such improvements fall within the boundaries of the Dwelling Unit. W. Vehicles 1. Permitted Vehicles a. Passenger-type automobiles, in a fully driveable and operable condition having no more than four entry doors and specifically excluding limousines, taxis, or hearses whether or not used for personal purposes b. Lightweight recreational motor vehicles, excluding campers, provided, however, that lightweight recreational vehicles shall have a "B", "RV", or other passenger license plate, shall have no more than four (4) wheels, shall have a curb weight of less than eight thousand pounds (8,000 lb.), shall have an overall length of less than twenty feet (20 ft.), shall have an overall width of less than seven feet (7 ft.). c. All permitted vehicles shall also be capable of being driven into a Home s garage with the garage door closed and shall be of a design, which does not impede entry and exit for a Home when parked on a Home s driveway. d. Motorbikes and motorcycles, provided that each of the foregoing is registered and licensed to be ridden on public roads and highways. 2. Emergency Vehicles - Ambulances and hospital or medical vehicles of any type; or fire fighting vehicles of any type; or police protection vehicles of any type; or snow plowing vehicles; or Permitted Vehicles, provided that each of the foregoing is being utilized for emergency purposes for the health, safety and welfare of the Townhome Owners, Residents and other persons on the Property. 3. Non-permitted Vehicles - All vehicles other than those defined above as Permitted Vehicles or Emergency Vehicles including but not limited to trailers, boats, snowmobiles and campers; or any vehicles without valid state license plates and appropriate municipal vehicle stickers, if required; or any vehicle used for 3

commercial purposes, with the exception of those vehicles which would be permitted as per regulation if they did not have commercial lettering. 4. Abandoned Vehicles - Any vehicle which is in a state of disrepair rendering it incapable of being driven in its present condition; and which has not been used or moved for at least seven (7) consecutive days; or which does not have a current, valid vehicle license plate and municipal vehicle sticker, if required; or which is such that the acts of the vehicle owner and the condition of the vehicle clearly indicate it has been abandoned. X. Voting Member The individual who shall be entitled to vote in person or by proxy in meetings of the Owners as more fully set forth in Section 4.03 of the Declaration. 4

II. GENERAL RULES All rules, regulations, restrictions and covenants contained in the Declaration and Bylaws are incorporated as part of these rules and regulations and are subject to the enforcement policies set forth in these comprehensive rules and regulations. To the extent that the provisions of applicable law, the Declaration, Bylaws and Rules and Regulations are in conflict, the provisions of applicable law shall first control, followed by the provisions of the Declaration, the Bylaws and the Rules and Regulations, in that order. THESE RULES AND REGULATIONS ARE BINDING ON ALL TOWNHOME OWNERS, RESIDENTS, THEIR FAMILIES AND GUESTS UNDER ARTICLES V AND VII, OF THE ASSOCIATION'S BYLAWS, AS AMENDED FROM TIME TO TIME. 5

III. RULES REGARDING ADMINISTRATION OF THE PROPERTY The following rules present the administrative responsibilities of the Townhome Owners Association Board and Townhome Owners. Adherence will ensure the integrity and security of the Community. A. Board Meetings and Association Records 1. Board meetings are open to all Townhome Owners, except during executive sessions as permitted by the Declarations and Bylaws and statutory law. A limited open period for members questions and comments may be part of the agenda. 2. The time for Board meetings is determined by action of the Board from time to time, and appropriate notice will be provided as required to all Townhome Owners. 3. As required by law, certain books and records of the Association are available for the inspection of Townhome Owners at convenient hours of weekdays, provided that a written request is submitted to the Association Board or management. The Association may assess a fee for copies. B. Assessments and Collections 1. All monthly assessments and any special assessments or other lawful charges of the Association are due and payable on the first day of each month. Any payment of the foregoing which is received after the tenth (10th) day of the month shall be considered late. All payments received will be applied in such matter as determined by the Board. 2. Any payment of less than the full amount of all assessments and other charges, which are due in, any given month or any late payment shall cause the Townhome Owner to be subject to a late charge of twenty-five dollars ($25.00). The late charge(s) shall be added to and deemed a part of the Townhome Owner s common expense. Any administrative fees charged to the Association by the Management Agent shall be added to and deemed a part of the Townhome Owner s common expense. Per the Declaration and Bylaws, a Townhome Owner thirty (30) days or more delinquent may be charged interest on the unpaid balance. 3. Townhome Owners who are delinquent in payment of Common Expenses or Assessments shall be subject to legal action in accordance with the provisions of the Declaration and Bylaws. Once legal action has been commenced, all legal fees and costs will be assessed to the Townhome Owner as required by the Declaration and Bylaws. C. Insurance 6

1. The Association s Declaration should be reviewed for insurance requirements. 2. When casualty losses occur, it is the Townhome Owner s responsibility to report them to the Managing Agent immediately. If a Townhome Owner fails to report a loss in a timely manner and the insurance company denies the claim because of untimely reporting, the Townhome Owner becomes liable for the loss. D. Damage to Community Area and Buildings 1. Any property, which is damaged by the conduct of a Townhome Owner or by the Townhome Owner s family, tenants or guests, will be repaired by the Association and the cost will be assessed to the Owner responsible. 2. Any determination of whether or not the Owner is responsible is subject to Paragraph E(5) of Section XI- Policies and Procedures regarding Enforcement contained in these Rules and Regulations. E. Maintenance Requests 1. Requests for maintenance shall be submitted to the Management Company. IV. RULES REGARDING USE AND APPEARANCE OF THE PROPERTY The following presents the rules and regulations regarding the Townhome Owner responsibilities in the use of the Property. These rules and regulations will maintain the attractive appearance of our townhome community. A. Roof Access Restrictions Only properly licensed and insured contractors are allowed on any roof. Townhome Owners, their families, guests, tenants or any other non-authorized individuals are not permitted on a roof for any reason. The Board shall receive reasonable notice prior to the time that any contractor is allowed on the roof. All contractors must submit a copy of their certificate of insurance prior to the commencement of work. B. Alterations and Additions 1. No alterations and additions of any kind may be made to the exterior portions of any building without written Board approval, using the architectural change form as supplied by the Managing Agent. This includes windows, doors, and garage door. 2. The only item allowed to be permanently attached to the exterior of any building is a flagpole holding bracket. 3. No awning, sunroof, canopy or shutter of any type is permitted. 4. Balconies and patios may not be enclosed, altered or the appearance changed in any way without the prior consent of the Board. 7

5. Patios must be identical in size and configuration as to those installed by the developer for each unit. Requests to install or change a patio requires Board approval prior to construction. 6. Outdoor light fixture replacement or addition other than those installed as part of the original construction are not permitted without prior written approval from the Board. Patio and walkway lights, including Malibu lights are not permitted. Previously installed Patio or walkway lights, including Malibu lights are exempt from this rule until such time that they are removed. 7. No poles, rods or lines may be attached, set or hung on any portion of the Townhome Exterior. C. Antennas, Wiring 1. No antennas, cables or wires of any kind other than those installed during the original construction of the Townhome may be attached or mounted to any portion of the Townhome Exterior. D. Satellite Dish Guidelines 1. No satellite dish larger than (18 inches) in diameter will be permitted. 2. The contractor must, prior to the commencement of work, provide a current Certificate of Insurance, indicating General Liability and Worker's Compensation coverage (including completed operations) in the amount of at least ($500,000/$1,000,000), and naming Tall Oaks of Hanover Townhomes Owners Association and the current management company as additional insured. Evidence of Worker's Compensation, as required by Illinois Statute, must also be provided. 3. No more than one (1) satellite dish per townhome is allowed. 4. All satellite dishes shall be mounted on the rear of the Townhome so it is not visible from the street (whenever possible), without hindering the system's operation or function. Satellite dishes may not be mounted directly on the roof of a townhome under any circumstances. 5. The Townhome owner, current and future, is held liable and responsible for any and all damage caused by the satellite dish installation for the life of the satellite system. All damage caused by the satellite systems installation shall be repaired by the Association and charged back directly to the current Townhome owner. 6. All cabling from the satellite dish should enter the residence at the closest point possible to point of mount and sealed. 7. All wiring and cabling should be within the residence; no outside wiring will be permitted. 8

8. All satellite dishes shall be maintained in good repair. If the Townhome owner fails to maintain the dish in good repair, the Board may require the townhome owner to remove the dish. 9. Prior to installation, the Townhome owner must present to the Board the name, address and phone number of the installer and sales agent, and an executed hold harmless agreement. The townhome owner hereby indemnifies and holds harmless the Board of Directors, the Association, its agents and members from any and all claims, controversies or causes of action resulting from the installation or use of this satellite dish, including the payment of any and all costs of litigation and attorneys fees resulting therefrom. Owners agree to be responsible for any damage to the property or any injury to any individual as a result of the installation of the dish. 10. In the event, a Townhome owner is unable to obtain reception of an acceptable quality signal as a result of any of the above regulations, the owner may submit in writing to the Board, a request for a waiver of any of the regulations. 11. Should the satellite service agreement be terminated for any reason, the satellite dish must be removed. As with the installation, the homeowner bears all responsibility for removal and any damages incurred. 12. Failure by the Townhome Owner to comply with any and all of these guidelines may cause the unit owner to be in violation of the Rules and Regulations of the Association. An owner shall have twenty-one (21) days to comply with an order upholding the Association s Rules and Regulations prior to assessing a fine or other penalty. The Association reserves the right to levy a continuing and daily fine for each and every day an unauthorized satellite dish shall remain on the premises after the Owner has been notified to remove it, or advised to reinstall the dish pursuant to these Rules and Regulations. E. Exterior Doors, Windows and Screens 1. The Townhome Owner, with the exclusion of painting must maintain all exterior doors, windows and screens in good repair. Painting requests are handled through the Management Company. Per Village of Hanover Park ordinance, screens must remain on the windows at all times. 2. The replacement of all exterior doors (which includes front entry, patio storm and garage doors) and all windows, screens and skylights is the responsibility of the Townhome Owner. Painting, maintenance and cosmetic repair of front doors and garage doors is the responsibility of the Association. 3. No new or replacement exterior door, or skylight installation will be allowed before a request is submitted through the Board for approval process. Requests must include a description and brochure of the desired door or window design and color. The Board 9

reserves the right to request additional information in order to make an informed decision. 4. Replacement windows must be the same style and color as the original and must be approved by the Board prior to installation. It may be necessary to replace similar windows on same level of the home, at the same time to maintain a uniform appearance. 5. Nameplates, kickplates and doorknockers are not allowed on any door. 6. Plastic may not be attached to the exterior of any windows, doors or building. 7. No window unit air conditioners shall be allowed. F. Storm Doors 1. Storm door styles allowed are full view, full light or self- storing twin light, white in color. Style names may vary by manufacturer. Full view or full light door glass may have a grooved or beveled border. 2. The flanges are to be no wider than 5 on top, sides and bottom. Previously approved doors will be excluded from this requirement until such time as replaced. All requests to the Board for storm doors must be accompanied with a description or brochure of the desired door. The Board reserves the right to request additional information as necessary to make an informed decision. No work may commence without the written approval of the board. G. Use and Storage 10

1. Townhomes are intended for the exclusive use as living quarters of one (1) Family, as herein defined. Occupation of a Townhome by more than one (1) Family is expressly prohibited. 2. Each Townhome shall be used only as a residence, provided that no Owner shall be precluded, with respect to his Townhome, from (i) Maintaining a personal or professional library (ii) keeping his personal business records or accounts therein or (iii) handling his personal business or professional calls or correspondence therefrom. 3. Storage of any kind is expressly prohibited on or in any Community Area or Lot. 4. Decks and patios may not be used for storage. Patio furniture, barbecue grills, flower pots and statuary may remain on the patio or deck year round. 5. From April through October, where space allows, front porches or stoops may have benches, chairs and small tables that must be in good condition and designed for outdoor use. Stacking of chairs is not permitted on front porch. Beach type folding chairs are not allowed. Outdoor furniture may not remain on the lawn when not in use. 6. Front porches may not be used for off-season storage. Wood-wrought iron benches and large flowerpots that are located there in season and are impractical to move are acceptable year round. 7. Firewood is restricted only to patios and only from September through April. It may not exceed one face cord and a height of three feet when stacked. 8. Bicycles may not be stored on the Lot, Community Area, Patios or Decks. When not in use bicycles must be stored inside. 9. All toys and recreation equipment must be removed from the Lot when not in use and no later than sunset. In-season toys and recreation equipment on a Lot must be stored inside when not in use. 10. Permanent basketball hoops and other permanent playground equipment are not permitted. Portable basketball hoops must be stored inside when not in use. 11. Hot tubs, spas and pools of any type are not allowed anywhere on the Community Area or Lots. 12. No items should be placed or stored in a manner that would inhibit the maintenance, cutting or trimming of shrubs, shrub beds and lawns. Residents must remove items from the Community Area or Lot before the maintenance personnel start their activities. 13. There shall be no sheds, defined as a small structure, serving for storage or shelter, commenced, erected or maintained upon any part of the Community Area or Lot. H. Nuisance Guidelines 11

Any activity, which unreasonably disturbs other Residents or interferes with other Residents enjoyment of the premises, or causes damage to any Common Area or Lot, is prohibited. I. Garage and Moving Sales 1. Residents are allowed to conduct two (2) garage or moving sales per year. 2. Directional signs for garage sales or moving sales, shall not be posted any earlier than one hour (1 hr.) before and must be removed no later than one hour (1 hr.) after the time for the event. Per Village of Hanover Park Ordinance, signs of any kind are not allowed on the parkway area. Signs must be located on private property and only with the consent of the owner. Signs in the public right-of-way will be removed and disposed of by Village personnel. 3. Only one garage sale sign is permitted on the private property where the sale is located. Signs may not exceed 6 square fee per side (for example, 2 feet by 3 feet). 4. Garage sales must comply with Village ordinances. 5. Commercial sales are strictly prohibited. J. Community Area and Lots 1. Townhome Owners are responsible for keeping lawns, landscaping, driveways, walks, porches, patios and balconies free from debris and clutter. 2. Townhome owners are responsible for watering lawns, shrubbery, trees, and the parkway areas near their respective unit. Unit owners may be held responsible for the cost of replacing any or all planted material, which died due to lack of watering. 3. Patio furniture, barbecue grills and other decorative items must be maintained to present a good appearance. Rusting items besides being unsightly can cause discoloration and staining of patios and decks. 4. Flagpoles, laundry poles/rods/lines are prohibited. 5. Clothing, sheets, blankets, laundry and similar items must not be hung out or exposed anywhere on the Community Area or Lots. 6. Deliveries shall be made in such manner that material or packages are not allowed to accumulate on the Community Area or Lots. 7. Newspapers must be picked up on a regular basis. 8. Garage doors must be kept closed when no activity is taking place in the garage or driveway area. 12

9. Dryer vent area should be checked periodically for expelled lint, which should be removed. Townhome Owners should contact Management for maintenance of vents, which protrude through the roof. 10. Townhome Owners may not enclose any portion of the Community Area or Lot with a fence or other boundary. 11. Townhome Owners are responsible for all interior and exterior insect and pest control. 12. Townhome Owners are responsible for all interior repairs. Questions or concerns should be addressed to Board of Directors in care of the Managing Agent. 13. Townhome Owners are responsible for cleaning of fireplace flues and chimneys. K. Winter De-icing Townhome Owners are responsible for de-icing sidewalks, driveways, porches and patios. 2. Use potassium or calcium chloride for deicing. Do not use rock salt as it deteriorates concrete and kills vegetation. 3. If your concrete is less than one year old do not use deicing agents as they will pit the concrete. It is recommended you use sand for added traction. L. Seasonal Decorations 1. Seasonal decorations shall not be installed any earlier than one (1) month before and must be removed no later than one (1) month after the date of the holiday being celebrated. 2. Placement of outdoor holiday decorations and lights must be attached with gutter clips or other non-penetrating fasteners. Hooks and nails must not be used on the buildings. These will cause premature deterioration of the wood by allowing water penetration. 3. No decorations or lighting, which creates a safety hazard, will be permitted. 4. No decorations will be allowed on the roof or fireplace chimneys. 5. Any damage caused by the hanging of decorations or lighting shall make the Townhome Owner liable according to the rules under Section III., Item D. Damage to Community Area and Buildings. 6. Decorative door wreathes are allowed if not permanently attached. Use of a wreath door hanger is recommended. No penetration of door or doorframe is permitted. M. Signs and Advertisements 13

1. Advertising signs for business or commercial activities are prohibited everywhere on the Property. 2. A For Sale sign may be displayed from the inside of a Townhome window, which faces the front of the Townhome. The sign is limited to a maximum size of 24 x 30 and no more than one (1) is permitted. For Rent signs are not allowed. For Sale signs must be removed within 7 days of the closing. 3. One directional sign for an open house may be placed at the nearest intersection to the property. The sign must be placed on private property (inside the sidewalk), and permission of the property owner is required. Open House signs may only be displayed on Saturdays and Sundays between the hours of 12:00 pm and 6:00 pm. 4. No more than three (3) directional signs per Open House are allowed. 5. Signs may not be attached to the exterior of any Townhome, placed on the lot or any common area other than as provided for above. N. Garbage, Trash and Recyclables Garbage and recycling policies are subject to Hanover Park Ordinances. The Townhome Owner or Tenant should review these ordinances to ensure compliance. The following rules highlight the village s guidelines in addition to the Association s rules. 1. Plastic bags of garbage, garbage cans and recyclables must be kept indoors at all times other than for pickup. 2. Bags of garbage, garbage cans and recyclables shall not be placed outside for collection any earlier than 5:00 p.m. of the night prior to pickup. Ensure placement does not obstruct walkways or mailboxes. 3. Garbage cans and Recycle bins should be returned indoors no later than the morning following pickup. 4. Garbage cans and Recyclables must be bagged or placed in the cans or bins securely to avoid blowing or rolling away. Any litter remaining on the ground after pickup should be cleaned up and removed by the Townhome Owner or Tenant responsible. 14

V. RULES REGARDING LANDSCAPE PLANTING, MAINTENANCE The Association is primarily responsible for landscape plantings and maintenance through contracting with a professional landscaping service. The following rules present what the Townhome Owner is allowed to add or change on his or her Lot, with the exception of trees and shrubs, without Board approval. Requests for landscaping changes beyond these rules must be submitted in writing with applicable drawings, to the Board for approval. A. Gardens 1. Townhome Owners may plant flowers in original non-sodded or non-ground-cover areas without Board approval. Vegetable plantings are not allowed in these areas. 2. Front and side plantings cannot exceed 2 feet in height. Rear plantings cannot exceed 4 feet in height. 3. Climbing plants and vines are not permitted. 4. Once an area is altered by a Townhome Owner as a garden area the Townhome Owner is solely responsible for its maintenance. If unattended, the Townhome Owner will be in violation. Restoration shall be completed by the Association and charged back directly to the Townhome Owner. 5. Garden plantings must not interfere with access or hinder the use of maintenance equipment by the professional landscapers or other authorized individuals. B. Lawn, Trees, Shrubs and Ground-cover Maintenance 1. Only the professional landscaping service, hired by the board, is allowed to cut, fertilize, prune or remove lawn, trees, shrubs or ground cover. 2. Townhome Owners are required to adequately water lawn (including parkway areas near the respective unit), trees, shrubs and all other plantings throughout the growing season. 3. Requests for additional or replacement trees and shrubs by the Townhome Owner at Owner expense, are allowed with prior Board approval and must be contracted through the Association s landscaping service. Replacement outside the warranty is at the discretion of the Board. Maintenance will be handled by the Association s landscaping service. 15

C. Potted Plants and Hanging Baskets 1. Pots or plant boxes may be clay, ceramic, plastic or wood (neutral colors). Height is not to exceed 2 feet and width is not to exceed 2 feet. 2. Vegetable and fruit planting is allowed only in pots and only on rear patios. Overall height cannot exceed 4 feet. 3. Hanging baskets are limited to two attached to the underside of the porch roof and four attached under the balcony over a patio. D. Statuary, Garden Ornaments and Plaques 1. Statues and garden ornaments are restricted to the rear of the Lot on the patio, in gardens or in shrub beds. 2. Statues and garden ornaments must be neutral colored and a maximum height of 4 feet and maximum width of 2 feet. 3. The total number of statues and garden ornaments shall not exceed four. 4. Statues and garden ornaments are not allowed anywhere on the lawn. 5. Statues and garden ornaments must be located so as not to interfere with the landscaping and maintenance activities. Though landscaping and maintenance personnel will exercise all caution, they will not be held responsible for damage. 6. Plaques are limited to a maximum size of 8 x12. Attachment to aluminum, stucco or brick is not allowed. Only one plaque in the front of the house is allowed and is restricted to the porch/stoop area. E. Garden Hoses and Stepping Stones 1. Garden hoses when not in use must be coiled up in an unobtrusive location or reeled up on a hose cart or rack. Hoses must not rest on lawns, ground cover or shrubs. Attaching hose racks or hooks to exterior walls is prohibited to avoid damage to the siding. Cost to repair any damage resulting from such attachments will be the responsibility of the Townhome Owner. 16

VI. RULES REGARDING PETS The responsibilities of pet ownership need to be more focused in a close environment such as our townhome community. The following rules regarding pets comply with the Village of Hanover Park ordinances. These rules apply to all pet owners- Townhome Owner, family member, tenant and guests. A. Types of Pets 1. No animals, other than dogs, cats and birds shall be raised, bred or kept anywhere on the Property, nor shall any animals be kept, bred or maintained for any commercial purpose. No more than two (2) animals shall be kept in any townhome. No animals considered farm animals shall be allowed. B. Attending to Pets 1. No pet may be left outside unattended at any time 2. All dogs and cats must be on a hand-held leash, not more than six (6) feet long while outdoors or on any part of the Lot or Community Area. 3. Pet owners must clean up after pets immediately whether on the Lots or Community Areas and sidewalks and streets. 4. Stakes and chains are prohibited and can be described as but not limited to chains or tethers attached to any portion of the Townhome Exterior, Lot or Community Area. C. Controlling Pets 1. No pet shall be allowed to create a nuisance or unreasonable disturbance or to damage any part of the Property. 2. A Townhome Owner is responsible for the actions of pets of anyone residing in or visiting his Townhome. The costs of repairing any damage caused by a pet shall be assessed to the Townhome Owner responsible. 3. Any Townhome Owner who has been found to have been guilty of more than two (2) violations of the above rules shall be deemed to be liable for having a pet which causes or creates a nuisance or unreasonable disturbance. Thereafter the Board, after consideration of the facts and circumstances, may elect to order the Townhome Owner to have the pet removed permanently from the Property upon ten (10) days written notice to the owner from the Board or its authorized agents. 17

VII. VEHICLE REGULATIONS See Section I, DEFINITIONS, Item V, Vehicles for the definitions of Permitted Vehicles, Emergency Vehicles, Non-permitted Vehicles and Abandoned Vehicles. A. GENERAL RULES 1. Parking of any vehicles on the street is permitted only where and when authorized by the Village of Hanover Park Ordinances. 2. Vehicles may not be parked, maintained, or stored so as to obstruct passage of other vehicles on the Property. All vehicles shall be parked within permitted limits or within the lines or other marked boundaries for such vehicles. 3. Parking of vehicles cannot block the sidewalks between the hours of 7 a.m. and 10 p.m. The Hanover Park Police Department has advised that blocking of sidewalks during these hours is a violation of the Village of Hanover Park Municipal Code Section 17-11-1303 and a citation will be issued. 4. All vehicles are restricted to paved surfaces, including the streets, courts, driveways and parking areas on the Property. There shall be no parking on routes of passage across any other portions of the Property, including all lawn areas and sidewalks (except passage onto driveway). 5. Vehicles shall not be parked, maintained or stored in a manner, which interferes with ingress to or egress from a driveway or other portion of the Property. Parking on the Community Area Driveways is expressly prohibited as these areas are considered fire lanes. 6. Only permitted vehicles, as defined in the Definitions, Section I. Item N., shall be parked at any given time in front of a garage door or other area reserved for the exclusive use of Residents. 7. Non-permitted vehicles must be parked inside the garage. Any non-permitted vehicle, which is parked inside the garage, must be of a design to allow the garage door to close fully. Homeowners who, prior to the adoption of these rules and regulations, had parked a non-permitted vehicle in their driveway may continue to do so until such time that they no longer own or are furnished the non-permitted vehicle by their employer or until the time they move. Subsequent owners or tenants of these properties will not be allowed to park non-permitted vehicles on the driveway. To be eligible to park the non-permitted vehicle in the driveway, it will be necessary for the homeowner or tenant to register the non-permitted vehicle with the Management Company 8. Parking, maintenance or storage of Non-permitted Vehicles on any portion of the Property, other than inside the garage, is expressly prohibited. 9. Townhome owners, residents and tenants are not allowed to park in any of the Guest 18

Parking Areas at any time. These areas are specifically reserved for guests and visitors only. 19 10. Abandoned Vehicles will be removed from the Property immediately. The abandoned vehicle definition is being restated here to ensure no misunderstanding: Any vehicle which is in a state of disrepair rendering it incapable of being driven in its present condition; and which has not been used or moved for at least seven (7) consecutive days; or which does not have a current, valid vehicle license plate and municipal vehicle sticker, if required; or which is such that the acts of the vehicle owner and the condition of the vehicle clearly indicate it has been abandoned. 11. During or after a snowfall accumulation of one (1) inch or more, no vehicle shall be parked, maintained or stored on any Community Area normally used for parking until such time as the area has been plowed. Driveways in which vehicles remain parked during snow removal will not be plowed. B. ENFORCEMENT 1. The provisions set forth herein are intended to supplement, but not replace the enforcement of rules and regulations as presented in Section XII, Policies and Procedures Regarding Enforcement, which are fully applicable to all violations under these Vehicle Regulations. 2. In the event of a violation of these Vehicle Regulations, the Managing Agent shall send a Notice of Violation to the Townhome Owner or shall affix a Parking Violation Notice to the vehicle, in a form similar to the one presented at the end of this section, Parking Violation Notice, Exhibit VII.1. 3. Failure to request a hearing, for a Notice of Violation of the vehicle rules or Parking Violation Notice, shall be deemed an admission of the violation and may result in costs or expenses being assessed to the Townhome Owner as set forth in Section XI, Policies and Procedures Regarding Enforcement. 4. In addition to providing notice of any violation in accordance with the above provisions, the Board may also take any or all of the following actions: a) Record, to the extent possible, the vehicle identification, including license number, vehicle sticker, date of violation, type of violation and vehicle owner, if known, on a permanent record of violations, in a form similar to the one presented at the end of this section, Record of Vehicle Violation, Exhibit VII.2. b) Identify or attempt to identify the Resident whose vehicle or whose guest s vehicle is causing the violation. c) Identify or attempt to identify the vehicle owner, if not a Resident and advise them to remove the vehicle. d) Notify the Hanover Park Police Department, asking that they issue a citation and remove the vehicle.

5. In addition to the other provisions for enforcement contained herein and in the Policies and Procedures Regarding Enforcement, the Board shall have authority to tow vehicles which are parked in violation of these vehicle rules under the following circumstances: a) When a vehicle is parked in a manner, which presents an immediate danger to the Property or to the health, safety and welfare of any person thereon, the vehicle may be towed immediately without notice to the vehicle owner. b) When a vehicle is parked in violation of any of these Vehicle Rules and the owner has been found guilty of at least two (2) prior violations of any provisions of these Vehicle Rules, the vehicle may be towed immediately upon the occurrence of the third or subsequent violation without notice to the vehicle owner. 6. Anytime a vehicle is towed pursuant to these Vehicle Rules; all costs and expenses shall be assessed to the vehicle owner. In the event the vehicle owner is a Resident, the costs and expenses may be assessed to the Townhome Owner as a Common Expense. C. NOTICES AND AUTHORIZATION TO TOW 1. In order to insure that potential Vehicle Rules violators have notice of the fact that their vehicles may be towed, and in accordance with the requirements of the law set forth in Chapter 18a-100 et seq. of the Illinois Motor Vehicle Code, the Association will include such notice in the periodic newsletters giving notice that violators of the Vehicle Rules may be towed. 2. The Board or its duly authorized agents shall notify the appropriate towing companies or individuals to remove vehicles. In addition, when any tow is authorized the duly authorized agents for the Association shall notify the Hanover Park Police Department to provide them with the appropriate information concerning the tow and to request their assistance in order to insure that no breach of the peace will occur. 3. All towing shall be authorized on an individual basis only. There shall be no general authorization given to any towing company to tow any vehicle in violation of the Vehicle Regulations. 4. The Board may enter an agreement with an appropriate and authorized towing company or individual to effect removal of vehicles pursuant to authorization under the Vehicle Regulations. 20

PARKING VIOLATION NOTICE Date: Time: This vehicle is parked in violation of the Rules and Regulations of Tall Oaks of Hanover Townhome Owners Association for the following reason(s): This is your (Circle one): First Second violation of the Association's Vehicle Rules. UPON A THIRD OR SUBSEQUENT VIOLATION, YOUR VEHICLE MAY BE TOWED WITHOUT NOTICE TO YOU. NOTE: IF YOU WISH TO PROTEST THIS VIOLATION, YOU MUST CONTACT THE ASSOCIATION IN WRITING AND REQUEST A HEARING IN ACCORDANCE WITH THE ASSOCIATION'S POLICIES AND PROCEDURES REGARDING ENFORCEMENT. IF YOU FAIL TO PROTEST WITHIN 21 DAYS, THE VIOLATION WILL BE DEEMED ADMITTED, AND YOU MAY BE ASSESSED COSTS AND EXPENSES OF AT LEAST $25.00. Please phone the Association at if you have any questions or to obtain a copy of the Association's Rules. Signature of Authorized Agent EXHIBIT VII.1 21

RECORD OF VEHICLE VIOLATION Date: Time: Vehicle Information: License Plate: Municipality & Sticker No. Association Parking Sticker No. Make of Car: Model: Color: Where Parked: Owner's Name, Address, or Unit No., if known: Were any photographs taken? Yes No If yes, please attach to this form or forward as soon as possible. Include name of photographer and date taken. Type of Violation: Completed by: (Signature) EXHIBIT VII.2 22

VIII. RULES REGARDING SALE AND TRANSFER OF OWNERSHIP A. In the event of any resale of a Townhome, the following rules shall apply. B. The Association through the management firm shall provide the required information to any Townhome Owner who requests it. The information shall be provided only: 1. When requested in writing by the Townhome Owner or his or her agents, and 2. Within thirty (30) days of the request. The Association may request information in the form of Exhibit VIII.1 and the agent may charge a reasonable fee to the Seller/Owner for the cost of this service. However, in the event a request is made which requires this information to be provided in less than ten (10) days, the Association will charge the Townhome Owner an additional fee, approved by the Board. C. Anytime a Townhome within the Association is sold or otherwise transferred, the prospective owner shall be contacted through the present owner, and requested to supply information essential to the Association's records and efficient functioning. The present owner shall be contacted by a letter and form substantially the same as Exhibit IX.1 and shall be required to supply the information requested therein at least 10 days prior to the close date. Such information must be received prior to the release of the assessment letter issued by the Association or Management Agent. The new owner shall also supply a photocopy of the signed sales contract as evidence of transfer of ownership. If the new Townhome Owner so desires, information on purchase price, financial terms of the mortgage and other information deemed personal or confidential by the Townhome Owner, except for the exact name of the owner and mortgagee and their respective addresses may be blacked out or removed from the copies supplied. All information supplied by the prospective owner shall be kept confidential and shall be used for Association purposes only. In the event a Townhome Owner fails to cooperate with the Board in providing the information requested in this paragraph the Board may suspend the rights and privileges of ownership as to that Townhome Owner until the requested information is supplied. Furthermore, all costs and expenses of the Board in obtaining the requested information, including attorney's fees, shall be assessed to the account of that Townhome Owner as a Common Expense. D. As required, the Association shall provide any Townhome Owner, upon ten (10) days notice to the Board or its authorized agents, a statement of his account setting forth the amount of any unpaid assessments and other charges due and owing from such Owner. In accordance the Association may charge a reasonable fee for this service. This amount may be changed from time to time by the Board. In the event a request is made which requires this information to be provided in less than the ten (10) day period provided by statute, the Association will charge the Townhome Owner an additional fee, approved by the Board. E. At the time the above information is requested, the Association may also solicit a proxy, information sheet (Exhibit VIII.2) and Notice (Exhibit VIII.3) from each new Townhome Owner. The proxy, a letter of explanation and instructions for completing the proxy should be substantially in the form set forth in Exhibit VIII.4, 5 and 6. F. The Association through the Management Firm, may be requested to provide the new 23

Townhome Owner a current copy of the Association s Declaration, Bylaws, and Rules and Regulations. These documents can be provided at a cost. The Management Firm will acquire and maintain, a signed release from the new Townhome Owner acknowledging receipt of these documents. 24

RESALE/TRANSFER OF OWNERSHIP FORM UNIT # & ADDRESS: SELLER: SELLER'S NEW ADDRESS: CITY: STATE: ZIP CODE: SELLER'S PHONE #(HOME) (WORK) BUYER: BUYER'S CURRENT ADDRESS: BUYER'S PHONE #(HOME) (WORK) CLOSING DATE: BUYER'S MORTGAGE COMPANY: PHONE: (FULL NAME & ADDRESS AS IT SHOULD APPEAR ON CERTIFICATE OF INSURANCE) LOAN NUMBER LOAN OFFICER ADDRESS: CITY: STATE: ZIP CODE SELLER'S ATTORNEY: PHONE: ADDRESS: CITY: STATE: ZIP CODE SELLER'S REALTOR: PHONE # WILL OWNER BE OFF PROPERTY OWNER? YES NO IF YES, WHAT IS THE MAILING ADDRESS? THE UNDERSIGNED ACCEPTS ANY RESPONSIBILITY FOR ANY INCORRECT INFORMATION WHICH MAY RESULT IN REPROCESSING OR ADDITIONAL FEES THEREOF. SELLER'S SIGNATURE EXHIBIT VIII.1 25

INFORMATION SHEET The Association is required to keep accurate records regarding titleholders of property within the Association. This information is general in nature and will assist the Association in operating, caring, upkeeping, maintaining, replacing and improving the common elements of the Association, and in providing proper insurance for the property. PLEASE PRINT OR TYPE - USE N/A IF NOT APPLICABLE Name of Owner(s) as it will appear on deed Name of Trustee Bank, if property will be held in trust Names of Trust Beneficiaries Owner's Address, if different from property address Mortgagee Bank and Bank Branch Loan Number Name of Occupant, if not Owner Name and Number of Person to Notify in Case of Emergency Any Dogs or Cats Owned, if so, specify EXHIBIT VIII.2 26