A. Preamble:

The building Restrictions designed by the Developers of Swiss Village East were designed to do the following:

1. To insure the best use and the most appropriate development and improvement of each building site.

2. To preserve so far as practicable, the natural resources and natural beauty of said property.

3. To guard against the erection thereon of poorly designed or proportioned structures and structures built of improper or unsuitable materials.

4. To secure and maintain proper setbacks from streets, and adequate free spaces between structures.

5. In general, to provide adequately for a high type and quality of improvement in said property, and thereby to enhance the values of investments made by purchasers of Swiss Village East.

B. Architectural Committee:

1. No building, fence, wall or other structure shall be commenced, erected or maintained upon any lot, nor shall any exterior addition to, or change, or alteration therein be made until a complete set of building plans and specifications shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by an architectural committee composed of three (3) or more representatives appointed by the Board of Directors of the Property Owners Association. These plans must show the nature, kind, shape, weight, materials, and location project on the lot, including a Health Department permit, exterior appearance and color scheme of the project when completed.

2. Dwellings of unique character and design are strongly encouraged. The Architectural Committee expressly reserves the right to suggest revisions or to prohibit any plan submitted, because of lack of harmony of external design with the existing structures, or because of too great a similarity to other nearby existing structures. No square box housing will be allowed. All homes must have some characteristic or style to distinguish it from other homes.

3. A preliminary sketch or picture of the exterior is first required for tentative approval.

C. Residential Area Covenants:

1. Dwelling use. No building shall be erected, altered, placed or permitted to remain on any lot other than one single-family, private, residential dwelling, attached garage and out buildings incidental thereto, unless otherwise specified in the conveyance from Developer to an owner. Said premises may be leased or rented in whole or in part, from time to time, for residential purposes only. Garages and all other out buildings shall be attached to the main dwelling, shall satisfactorily blend with the architecture of the entire structure, and shall not be used for living purposes prior to the completion of the main structure.

2. Dwelling quality and size: All dwellings must have a minimum of 720 square feet of enclosed living area, exclusive of porches, breezeways, garages and basements. All buildings shall be limited to 40 feet above the ground level in height. All foundations shall be of stone, brick or cement construction forming a continuous solid wall beneath the building. All buildings shall be of frame, masonry or similar grade construction as approved by the architectural committee, and must be roofed with approved underwriters materials. The use of tar paper, rolled siding or rolled roofing materials as siding shall be expressly prohibited. Uncovered cement block or cinder block may not be used in exposed surfaces above grade unless finished with an additional exterior surface. All chimneys shall be of stone, brick or cement construction extending from the ground up, however, underwriters approved prefabricated chimneys shall be permitted. All furnaces, fireplaces and incinerators shall be constructed so as to be spark proof to prevent ground fires. Any exceptions to any of the above use, quality, and size restrictions shall be approved by the Architectural Committee.

3. Building Location: No building, hedge, fence, or other structure shall be located on any property nearer than 30 feet to the front or rear property line, or nearer than 20 feet to any side street line. No building fence or other structure shall be located to any side line nearer than 10% of the average width of the property of which such building fence or structure is to be placed. No building shall be constructed closer than 50 feet from the water's edge.

4. Freeboard structures:

A. Buildings for residential purposes must be constructed above and landward of the freeboard line.

B. No openings shall be permitted into basements below the elevations of the freeboard line.

5. BUILDING COMPLETION DATES: All buildings including those damaged by fire, shall have the exterior completed and the finish applied within six (6) months from the start of construction or date of fire.

6. WATER AND SEWAGE: All dwellings must be served by a water supply system and a water-carried sewage disposal system, constructed in compliance with the Antrim County Sanitary Code, and the Michigan Department of Health Regulations; however, no sewage disposal system shall be placed nearer than 100 feet from the water's edge, or nearer than 10 feet to any boundary line. No sewage disposal system shall be closer than 50 feet to any subsoil drainage system that empties directly into the river.

7. STORAGE TANKS: All storage tanks shall be covered below ground level or concealed from view.

8. GRADING AND CLEARING: No excessive grading, filling in or removal of ground on any lot which would seriously effect the grade or drainage of the adjacent lot shall be permitted. Finish grading must be completed in accordance with building completion dates. At such time as the residence structure is completed, the lot owner shall provide off-street parking for at least two vehicles. The Board of Director's of the Association reserves the right to do grading and excavating on any property including the right to do grading and excavating on any property, including the right to disturb topsoil and trim or clear trees where, in the opinion of the Board, such work is advantageous for the improvement of the community.

9. NATIVE PROTECTION STRIP ALONG RIVER: A strip 25 feet deep bordering the water's edge shall be maintained in trees and shrubs or in its present or natural state. A maximum of 30% of all living trees and shrubs may be removed by cutting them flush with the ground surface. The remaining trees and shrubs can be trimmed and pruned for a view of the water from the property. No living trees over 5 inches in diameter at breast level, nor more than 30% of all trees shall be removed from any property without the written consent of the Board of Directors of the Association, excepting for clearing the structure site, parking and access road thereto. No land alteration including the removal of tree stumps shall be allowed on the native protection strip. Exceptions shall be that a path or walk may be constructed to the water's edge to a width of 12 feet. Fill material shall be of a pervious material such as gravel or sand. No fill material shall be allowed to enter the water either by erosion or mechanical means.

10. TEMPORARY STRUCTURES: No structure of a temporary character, mobile home, trailer, basement, tent, shack, garage, barn, abandoned automobile or any other out-buildings shall be occupied, stored, or permitted on any lot or in any area at any time, either temporarily or permanently. Boats, snowmobiles, private trailers or trucks may be stored or maintained on a lot only if housed completely within a building permitted hereunder.

11. FENCES: No property line fences shall be allowed. Fences or hedges may be erected or maintained that do not exceed four (4) feet in height. The Board of Directors of the Association shall have the authority to make exceptions in individual cases.

12. EASEMENTS: No lot shall be divided, subdivided or separated into smaller parcels for any purpose, nor used for street purposes or right-of-way, except by or with the written permission of the Developers. The right to grant easements for public utilities is hereby reserved. Easements are reserved along and within ten (10) feet of any property line of all lots in the development for the construction and perpetual maintenance of underground or overhead wires, lines and cables for electric lights, telephones, and other public and quasipublic utilities and drainage, and the right of ingress to and egress from across, over, under, and through said premises to the employees of said utilities. The person owning more than one (1) lot with adjoining lot lines may build on such common lot line and the easement shall be inoperative as to said line, provided that such building shall be placed thereon prior to the instigation of use of this easement for one of the foregoing purposes.

13. GARBAGE AND REFUSE: Garbage or other waste and refuse of any kind or nature shall be kept in sanitary containers with tight fitting covers to keep out animals, rodents and insects. Equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition. No waste material shall be disposed of on the property by burning other than by agents authorized by the developer.

14. NUISANCE: The owner of each lot shall at all time keep such lot and any improvements situated thereon in such a manner as to prevent its becoming unsightly. In the event an owner of any lot shall fail to maintain the premises and improvements situated thereon in a manner satisfactory to the Board of Directors of the Association, such Board shall have the right, though its agents, and employees to enter upon said lot and repair, maintain, and restore the lot and exterior of the buildings and other improvements erected thereon. The cost of such maintenance shall be added to and become a part of the annual assessment to which the lot is subject. No activity nor condition producing offensive odors or noise shall be permitted.

15. SIGNS: No bill board, for-sale sign, or other advertising device of any nature shall be permitted on any lot without the written approval of the Board of Directors of the Association. Signs, used by a builder to advertise a new home previously unoccupied shall be permitted.

16. PETS: No animals, livestock or poultry of any kind shall be raised or kept on any lot except dogs, cats, or other household pets, provided that they shall not be so maintained for any commercial purposes.

17. OIL AND MINING OPERATIONS: No oil drilling, oil development oil refining, quarrying or mining operations of any kind shall be permitted upon or in any lot or parcel, nor shall oil wells, tanks, funnels, mineral excavations or shafts be permitted upon or in any lot parcel. No derrick or other structures designed for use in boring for oil or natural gas shall be erected, maintained, or permitted upon any lot or parcel.

18. COMMON PROPERTIES: The foregoing restrictions shall not apply to the Common Properties. No removal of any living vegetation or trees, or any excavation within or upon any of the Common Properties shall be permitted. Nor shall any material or refuse be placed or stored on any lot within 20 feet of the property line of any common property without the written consent of the Board of Directors of the Association.

19. DURATION: The covenants and restrictions of this Declaration shall run with and bind the land and shall insure to the benefit of and be enforceable by the Association, or the Owner of any land subject to this Declaration, their respective legal representatives, heirs, successors and assigns, for a term of twenty (20) years from the date this declaration is recorded, after which time said covenants shall be automatically extended for successive periods of ten (10) years unless an instrument signed by the then Owners of two-thirds (2/3) of the lots has been recorded, agreeing to change said covenants and restrictions in whole or in part. Provided, however that no such agreement to change shall be effective, unless made and recorded three (3) years in advance of the effective date of such change, and unless written notice of the proposed agreement is sent to every Owner at least ninety (90) days in advance of any action taken. Paragraph four (4) shall be effective in perpetuity and shall not be amended.

20. NOTICES: Any notices required to be sent to any member or Owner under the provisions of this Declaration shall be deemed to have been properly sent when mailed, postpaid, to the last known address of the person who appears as member or owner on the records of the Association at the time of such mailing.

21. SEVERABILITY: Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.

22. ENFORCEMENT: Your Association has the Legal authority to enforce all of the aforementioned restrictions. Enforcement of these covenant and restrictions shall be by proceeding at law or in equity against any person or persons violating or attempting to violate any covenant or restriction, either to restrain violation or to recover damages, and against the land to enforce any lien created by these covenants; and failure by the Association or any owner to enforce any covenant or restriction shall in no event be deemed a waiver of the right to do so thereafter.

Midwest Resort Properties, Inc.

Witness: Bellaire, Michigan 49615

A Michigan Corporation

(Signed) C. Kelley Theobald

By: (signed ) Paul T. Lahti, Jr. President

(Signed) Eugene Smith

And: (signed) Roberta Lahti, Secretary

ACKNOWLEDGEMENT

State of Michigan )

Antrim County ) ^ss.

Personally came before me this 24 day of July, 1970, Paul T. Lahti, Jr., President and Roberta Lahti, Secretary, of the above named corporation, to me known to be the persons who executed the foregoing instrument, and to me known to be such president and secretary of said corporation, and acknowledged that they executed the foregoing instrument as such officers as the free act and deed of said corporation, by its authority.

Notary Public, Mary Dobson (signed), Antrim County, Michigan.

My commission expires: September 24, 1973.

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Filed October 1970 with Antrim County Register of Deeds Liber 183, Pages 66-70 and covers Sections 1 and 3. The Restrictions and Regulations for Section 2 is filed in Liber 188, Pages 48-53 and for Section 4 is filed in Liber 200, Pages 548-552. Those restrictions are the same as those printed here with the exception that they delete the language pertaining to the Native Protection Strip along the river and other provisions applying only to properties along the river. If there are discrepancies between this version and the recorded document, the recorded document prevails. The Association will not be responsible if you rely on this version. A photocopy of the recorded document for your section is available by contacting Karen Law.