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DECLARATION OF RESTRICTIONS FOR VERNDALE LAKES

Lots 1-26

TO THE PUBLIC

Acknowledgements and Statement of Policy

A. Verndale Lakes Development Company, (DEVELOPER) is the owner of the property comprising lots 1-26 of Verndale Lakes Subdivision, a subdivision on part of the East 1/2 of the Southwest 1/4 of Section 14, T4N, R 3 W, Township of Delta, County of Eaton, Michigan (herein referred to as “Verndale Lakes” ).

The terms, covenants and restrictions of this Declaration shall apply solely to Lots 1-26, of Verndale Lakes Subdivision. The same shall not apply to restrict or create a servitude on- the remaining lots in Verndale Lakes Subdivision. The undersigned, its representatives or assigns may develop, improve, or impose covenants and restrictions upon the remaining lots in Veradale Lakes Subdivision in any manner as it deems appropriate without reference to and unrestricted by the terms, covenants or restrictions of this Declaration.

B. That a plat has been recorded with the Eaton County Register of Deeds at Liber 12 of plats, pages 17 through 21, inclusive, reflecting the subdivision of the above described property into twenty-six (26) residential lots.

C. DEVELOPER desires and intends that lots 1-26, within Verndale Lakes Subdivision, be subject to certain land building use restrictions as subsequently set forth. (for common benefit of all lot owners subject to this Declaration) desire and intent of DEVELOPER is to develop a subdivision quality homes and lots aesthetically pleasing and neat appearance and to provide for appropriate maintenance of land and buildings located on lots 1-26 so as to preserve and enhance their value and to insure compliance with applicable laws and ordinances.

D. To effectuate the desire and intent described above, DEVELOPER has intentionally reserved in this Declaration of Restrictions broad powers to DEVELOPER and its assigns, to direct and control the development and use of lots 1—26. Any ambiguity as to the extent of DEVELOPER’s authority, or that of its assignees, is to be construed and resolved in favor of DEVELOPER and its assignees. Each owner of the lots subject to this Declaration contractually agrees to this principle. As will be set forth subsequently in greater specificity, DEVELOPER, amongst other things, reserves the right to pre-approve the size, type and style of all homes, structures, improvements, renovation, landscaping and related activity on lots 1-26. this right may be later assigned by DEVELOPER, an assignee or successor entity, including the Homeowners’ Association (“Association”) to be formed.

E. DEVELOPER acknowledges and gives notice to the public and prospective lot purchasers that it intends to form or may already have formed an incorporated non—profit Homeowners Association. Amongst others, the duties and responsibilities of such Homeowners’ Association shall be to interpret and enforce the restrictive covenants set forth in this document, and to develop and enforce any assessment procedure that may be necessary to perform its duties and responsibilities with reference to this document. The architectural control referenced above may also be assigned to the Association.

F. Should any person or entity bound by these Covenants and Restrictions violate them, it shall be lawful for the Association, or any other person owning a lot or lots subject to this Declaration to prosecute and pursue any proceedings at law or in equity against any person or entity violating any of such Covenants and Restrictions. DEVELOPER also has the right to undertake the same enforcement action as any lot owner. or the Association, so long as DEVELOPER owns or controls any of the lots subject to this Declaration.

G. The covenants and restrictions in this Declaration run with the land, bind the land, and shall inure to the benefit of and be enforceable by the Association, or the owner of any land subject to this Declaration, their legal representatives, heirs, successors, and assigns, for a term of 25 years from the date that this Declaration is recorded. The Covenants and Restrictions shall be automatically extended for successive periods of 10 years unless an instrument signed by the then-owners of 2/3 of the lots subject to this Declaration has been recorded, agreeing to change the covenants and restrictions in whole or in part. However, no such agreement to change these Covenants and Restrictions shall be effective unless made and recorded with the Eaton County Register of Deeds one year in advance of the effective date of such change, and unless proceeded by written notice of the proposed change being sent to every owner of a lot subject to this Declaration at least 90 days in advance of any action taken on the proposed change and providing that such change is approved by the then-owners of 2/3 of the lots subject to this Declaration.

Restrictive Covenants

Of Verndale Lakes Subdivision

1. Lot Use:

Lots 1-26 shall be used only for single-family residential purposes. No building intended for, adapted to or used for business purposes and no multiple-family dwelling shall be erected or maintained in the Subdivision. Buildings shall not be erected, altered, placed or permitted to remain on any lot in the subdivision other than one detached single-family dwelling of new construction in accordance otherwise with the Restrictive Covenants set forth below.

DEVELOPER reserves the right to construct, maintain and use for purposes of advertisement and development of the subdivision, a model or models of the type of home representative of the desired construction for lots 1-26 and related signage and graphics. Such model home or homes may contain displays and may be used to conduct activities relating to sales of lots 1-26.

2. Architectural Control:

For the purpose of insuring the high standards of the development contemplated by the DEVELOPER, the DEVELOPER reserves the power to control the building, structures, improvements and exterior alterations placed on each lot subject to this Declaration, and also reserves the right to make exceptions to these conditions and restrictions that the DEVELOPER or the entity acting in its stead deems necessary and proper. Whether or not provided for in any conveyance documents for any lot subject to this Declaration or in any building contract for construction of a single-family residence upon a lot, the owner or occupant of each and every lot subject to this Declaration, by acceptance of title to it or by taking possession of it, Covenants and agrees that no building, wall, structure, fence, or landscaping shall be commenced, erected, placed or altered on any lot, nor shall any exterior addition, change or alteration be made, until the plans and specifications for it have been approved in writing by the DEVELOPER or other entity acting in its stead.

The plans and specifications, which shall show the nature, kind, shape, height, materials, color, and location of same shall be submitted to DEVELOPER prior to any construction, landscaping or other activity in any way changing or affecting a lot subject to this Declaration. DEVELOPER shall have 30 days following submission of such plans and specifications to either approve or reject them. DEVELOPER or its assignee also reserves the right to require an applicant to resubmit plans if incomplete or inappropriate. If DEVELOPER or entity acting in its stead neither approves nor disapproves within that 30 day period, applicant shall resubmit and DEVELOPER or entity acting in its stead has 10 days from receipt of such resubmission to approve or disapprove. In the event that the DEVELOPER or the entity to which such pians and specifications have been submitted fails to approve or disapprove in writing within 10 days after such resubmission, no further approval will be required and approval be deemed to have occurred. However, unless the DEVELOPER or its assigns creates an exception in writing to the restrictions and covenants reflected in this document, no building, structure, fence or landscaping shall be erected or altered, which violates any of the restrictive covenants. DEVELOPER gives notice of its intent as above described to retain architectural control pending sale of the last lot subject to this Declaration, though DEVELOPER reserves the rights to delegate and assign this function as above described to the Association or an appropriate sub-committee formed by the Association for such purpose. However, even if no entity exists whose function is approval or disapproval of plans and specifications as above described, there shall be no building, structure, landscaping or other activity which violates any of the restrictive covenants.

3. Minimum Construction Standards:

Buildings or structures shall not be erected, altered, placed or permitted to remain on any lot other than one detached single-family dwelling of new construction not to exceed 2 stories in height with an attached private garage for not more than three cars. Single-family homes shall not be constructed on any lot subject to this Declaration with enclosed living space of less than 1600 square feet, exclusive of basement, lover level walkout, garage, and porches and decks. Single-story structures shall consist of enclosed living space of not less than 1600 square feet. Two-story structures shall consist of enclosed living space of not less than 1200 square feet on the first floor and not less than 2,200 total square feet, With the enclosed square footage being calculated exclusive of basement, lover level walkout, garage, and porches and decks. Bi-levels, raised ranch style homes, split level and split entry homes (all of which may include living areas below grade) shall consist of enclosed living space not less than 2,500 square feet exclusive of garage, decks and porches.

4. Building Exteriors:

As part of the architectural control referenced earlier and in order to maintain a high quality of construction and appearance within the subdivision, DEVELOPER requires that the front elevation of the dwelling must be at least 50% brick, with the remaining materials being of a natural substance (i.e. stone or wood). DEVELOPER may approve high quality aluminum or vinyl, (of which samples must be provided to the Developer); however, there will be no use of vinyl or aluminum siding on the front elevation. The remaining elevations will be reviewed by the developer.

5. Garages:

Each home constructed on a lot subject to this Declaration shall have an attached or built-in garage, containing a minimum of 430 square feet or cement floor area and with walls drywalled and painted using materials approved by DEVELOPER. DEVELOPER or its assignee reserves the right to regulate the width and number or garage doors for each garage built. Garage doors shall be of wood or steel. Carports or detached garages or similar structures are not permitted on any lot subject to this Declaration.

6. Driveways and Parking Areas:

The location of all driveways shall be pre-approved by the DEVELOPER as previously described but, in any event, shall be located no closer than three feet from any property line. The driveway approach and driveway leading from the hard-surface street to the garage must be paved with concrete.

Unless otherwise approved by DEVELOPER or its assignee, there shall be no outside parking other than in the driveway area limited to the distance between the garage and the edge of the sidewalk or street closest to the structure. Outside parking shall otherwise comfort with all applicable Delta Township ordinances. In the event that this provision would have to be interpreted, it is the intent of DEVELOPER to limit outside parking of vehicles to the space between that portion of the driveway beyond the sidewalk, if any, or the street and the front of the garage and to limit such outside parking to no more than three cars per dwelling unit, and to insure that such outside parking is temporary in nature so as not to violate applicable Delta Township ordinance and also to prevent parking on the street in violation of ordinances.