Algonquin Lakes Condominium Association

Algonquin, IL

RULES & REGULATIONS

Revised January 1, 2015

(These Rules and Regulations supersede all previously adopted Rules and

Regulations.)

These Rules and Regulations have been adopted to provide the residents of Algonquin Lakes Condominium Association with a practical plan for day-to-day living extracted from the technical language of the Declaration, By-Laws and Illinois law.

The goal is to maintain the first class nature of our community while still allowing all residents the ability to enjoy the beauty and spaciousness our community affords. Maintaining our community requires compliance by all residents and their visitors. If you are aware of any infractions, please contact the Management Company through the mechanism described in Section IX, Enforcement Proceedings.

Thank you for your help in making Algonquin Lakes a great place to call home.

Respectfully submitted,

Algonquin Lakes Condominium Association Boardwww.algonquinlakesca.com

2

TABLE OF CONTENTS

I. General 4II. Contact with Contractors, Vendors, Attorneys, Accountants and Others

4III. Units 5

A. General 5B. Unit Alterations 6C. Insurance 6D. Patios 7E. Windows and Doors 9

IV. Limited Common Elements and Common Elements 10A. Definition 10B. Use of Common Elements 11C. Garbage 13D. Landscaping and Water14E. Seasonal Decorations 16F. Satellite Dishes/Antennae 17G. Signs 22

V. Pets, Pet Litter and Damage by Pets 23VI. Vehicles, Parking, Maintenance, Storage and Movement

25A. Vehicles 25B. Parking, Maintenance, Storage and Movement27

VII. Sales and Leasing 29VII. Assessments and Assessment Collections 31IX. Enforcement Proceedings 32X. Exhibits 35

A. Owners vs. Association Maintenance ResponsibilitiesB. Alterations & Additions Application

3

C. Satellite Dish Indemnification Agreement & Request FormD. Rider to LeaseE. Assessment Collection PolicyF. Violation Complaint – Witness Statement

4

I. General

A. A chart outlining Unit Owner vs. Association Maintenance Responsibilities is enclosed as Exhibit "A". For the purpose of this document, any other items of owner/resident responsibility listed in any other association documents will be considered to be listed in these Rules and Regulations.

B. These Rules and Regulations may be amended and/or expanded from time to time.

C. The term "Resident" shall be defined as the owner and/or tenant, unless otherwise termed individually.

D. Any resident having a problem with neighboring units should FIRST directly speak to their neighbor prior to contacting the Association through the management company.

II. Contact with Contractors, Vendors, Attorneys, Accountants and Others

A. Authority has been vested in the Board of Directors to eliminate the possibility of misunderstanding, litigation and unnecessary costs to the Association.

B. Residents of the Association are permitted only to contact the managing agent with any concerns or issues they may have. Residents are not permitted to directly contact or communicate with any contractors, vendors, attorneys, accountants or other professionals.

5

C. Any costs or expenses incurred by the Association as a result of any such unauthorized and non-permitted contact by any Resident shall be charged to the Unit Owner. Owners will also be held responsible for any fines associated with the misuse or neglect of this regulation by them or their tenants.

III. Units

A. General

1. The units in the Condominium are for residential purposes. They are not to be used for business, except as specifically authorized in the Declaration.

2. Excessively loud playing of radios, karaoke, television and/or audio equipment or any other sounds in such a manner or at such a sound level and/or time as will disturb other residents in the building is not permitted. Each resident will respect the rights of others to privacy and a peaceful existence. Noise is to be kept to a minimum.

3. Noise-producing activities, such as construction and carpet laying, etc., are permitted on weekdays and Sundays only between 8:00a and 8:00p and on Fridays and Saturdays only between 8:00a and 10:00p.

4. Repair and maintenance of the HVAC systems, windows and doors (including garage doors) are the responsibility of the Unit Owner.

5. Garage sales are limited to two per year as per Village of Algonquin Ordinance. No signs may be displayed in the common area/limited common area unless they are free standing. They must be removed at the end of the day of the scheduled sale. If the sale runs for more than one day, the signs must be taken down and put up on a daily basis. The items for sale must be confined to the driveway/garage of the resident.

6

B. Unit Alterations

1. Plans for altering, combining, dividing units or changing the unit's inner construction, where such change will affect the structural integrity of the unit (such as removing or relocating common walls), must be submitted to the management company for Board approval not less than 30 days before starting any reconstruction. The work may not begin unless and until such documents and permits are provided to the Board of Directors and/or its managing agent. Refer to Exhibit "B" for application.

2. Removal of construction debris from the condominium premises is the responsibility of the Resident where such debris is created. If extra cleaning of the Common Elements and/or additional scavenger expenses is necessitated, the Unit Owner will be charged for such additional expenses.

3. The Unit Owner is responsible for damage to any Common Elements or any other unit or units as the direct and/or indirect result of work performed by or for that Owner.

C. Insurance

1. Residents shall be individually responsible for insuring their personal property in their respective units. Residents are also responsible for obtaining their own insurance for any additions, improvements, decorating and furnishings.

2. If a unit is permitted to be rented, the Owner continues to be responsible for insuring the unit fixtures, appliances, equipment, contents, decorating and all other items not covered by the Association's insurance policy. A Unit

7

Owner must provide a copy of their Condominium Insurance Policy upon request by the Board or Management Company.

3. Nothing shall be done or kept in any unit, building garage, or Common Elements which would increase the rate of insurance on the building or the contents thereof, and nothing shall be done therein other than those anticipated activities applicable for its intended use, without prior written consent of the Board.

4. Residents shall not permit anything to be done or kept in their respective units or in the Common Elements which would result in the cancellation of insurance on the building or its contents, or which would be in violation of any law.

D. Patios

1. Residents shall keep patios clean and free of clutter.

2. Patios may not be permanently carpeted. Seasonal, non-permanent carpeting may be allowed from April 1 through October 31.

3. Patios may not be enclosed, enlarged, or altered in any way. The original size of the patio is to be maintained at all times.

4. No decks or fences of any type may be built, erected or installed on any property.

5. No awnings, tents, sunshades, canopies, trellises, shutters, radio or television antennae shall be affixed to or placed in, upon, over or adjacent to any patio.

8

a. Retractable Sunshades may be allowed with the approval of the Board and in accordance with Section III. Only Board Approved Vendor/ Contractor and installation will be allowed. Board will provide and must approve vendor, style, size and color and install options. If motorized, all wiring must be internal to the unit. Any damage, injury and maintenance is the full liability of the homeowner. Colors must coordinate with either the trim color of the unit or accent color of the building.

6. Parking of motorcycles or other recreational vehicles on the patios is prohibited.

7. Patios may not be used for storage. Only patio furniture and items specifically for patio use (i.e. gas barbecue grills) are allowed on the patios. Hoses are allowed to be stored as long as they are either rolled up in a neat pile or in a hose box.

8. Maintenance and repair of the patio is the responsibility of the individual Unit Owner, as the patios are Limited Common Elements servicing a single unit. Patios should be kept in good condition at all times.

9. No permanent or ground fire pits are allowed at any time. Portable free-standing Fire Pits in accordance with legal fire codes, shall be permitted no closer than 8 feet to a Unit, must be kept on and near the edge of patio farthest from the Unit, only wood may be burned, no leaves, paper or other substance of any kind, no ash dumping on any property. Fire pits must be attended to at all times while flames or hot ash is present. Must be cleaned after use and maintained so that ash or debris does not blow into other areas. Any damage including smoke or ash nuisance is the liability and responsibility of the homeowner to correct. All residents must immediately honor any requests from homeowners to extinguish or remove fire if smoke,

9

flames or any disturbance resulting from use of the portable fire pit is bothersome to any neighbor. The Board may issue temporary or permanent disuse at any time. No fire stakes (tiki torches) are allowed to be burned on the balconies. Use of citronella candles is permitted on patios away from the exterior of the building.

10. All grills must be placed on the patio or mulched areas. They may not be placed on any sodded area. If they are placed on the mulched area, they should be placed on pavement blocks or bricks in the existing mulch/landscaped area on either side of the patio provided no existing landscaping plantings are disturbed or damaged, not to exceed the size of the grill. (Please refer to IV.B.11 for use of grills.) Charcoal grills are not allowed on the second floor balconies or patios.

11. All patio items (chairs, tables, planters, and swings) must be placed on the patio and not on the common areas. All patio furniture must fit on the limited common element (patio).

12. Planters on patios must be maintained in good repair and dead foliage must be removed.

E. Windows and Doors

1. Standard window coverings, such as drapes, shades or blinds, must be used. Window coverings other than blinds, drapes or shades will not be allowed, other than during move-in process, in which case, bed sheets are allowed to be hung as a covering, but must be replaced within a reasonable amount of time or at the Board's written direction.

2. No window air conditioners are permitted.

10

3. No cords or other objects shall be permitted to hang out of the windows.

4. Windows and screens are to be cleaned and maintained by the Unit Owner.

5. New or replacement entry doors, storm doors and windows must conform to existing doors and windows within the complex. The color of the storm door must match either the trim of the door or the accent color of the building (shutters). Approval is required from the Board prior to installing, utilizing the Alterations & Additions Application, Exhibit B.

IV. Limited Common Elements and Common Elements

A. Definition

1. The term "Limited Common Elements" is defined as that space contiguous to, and which serves exclusively, a single unit (i.e. patio of such individual unit, garage of each unit, perimeter doors and windows).

2. The term "Common Elements" is defined as all areas other than the units. For purposes of clarity, it should be understood that the following areas are considered to be part of the Common Elements:

a) Open spaces and land including streets, walks, parking areas, courtyards and fire lanes.b) Lawn, landscaped areas, exterior elevations, building roofs, and pond areas.

c) All structural components of the building located in a unit, including pipes, wires, conduits, ducts, flues, shafts or public utility lines serving more than one (1) unit.

11

B. Use of Common Elements

1. No industry, trade, business or profession of any kind shall be permitted on any part of the Common Elements, Limited Common Elements, or in the Units, except as permitted by the Declarations.

2. Nothing shall be altered, constructed on or removed from the Common Elements or Limited Common Elements without prior written consent of the Board.

3. It is each resident's responsibility to help to keep the Association's Common Elements clean by properly disposing of litter and waste found on any portion of their Limited Common Elements.

4. The use of illegal fireworks is strictly forbidden.

5. No drying or airing of clothes, carpeting or laundry or hanging of clotheslines is permitted.

6. Wind chimes, bells or other items which create excessive sound, as determined by the Board, are prohibited. Any wind chimes, bells or other items must be removed upon written notice by the Board or its managing agent to the resident.

7. Dumping of charcoal or any other debris upon the Common Elements or Limited Common Elements is prohibited.

12

8. Storage of any kind is expressly prohibited on the Common Elements. This includes all personal property of the residents. All personal items including toys, etc. must be removed from the Common Elements by the next scheduled lawn maintenance, or sooner, as determined by the Board.

9. Bird feeders and birdbaths are permitted; however, they may not be attached to any portion of the building or landscaping. Feeders may be hung from shepherds hooks or similar devices only.

10. Personal salt bins must be removed from the outside property and stored indoors by April 1st (pending weather conditions).

11. Gas grills are allowed on all limited common elements; charcoal grills must be used on the driveway only, no closer than 10 feet from the building. This is in accordance with insurance requirements. The use of gas or charcoal grills in the garage is prohibited. Grills used on the driveways must be returned to the garage once cooled down.

12. There shall be no obstruction of the Common Elements or Limited Common Elements.

13. Organized games, either formal or informal, of any kind shall be permitted, however any damage and/or nuisance liability will be held upon the homeowner conducting such activity. The Board reserves the right to restrict such activity if necessary. All residents must immediately honor any requests from homeowners to terminate games if any disturbance results or is bothersome to any neighbor. The Board may restrict the playing of organized games at any time.

14. Paintball is strictly prohibited.

13

15. The use of skateboards or motorized scooters is not allowed in the Common Elements/Limited Common Elements and as per the Village of Algonquin ordinance.

16. Owners, residents or guests may not feed the geese or other wild animals on the Common Elements/Limited Common Elements.

17. Owners are liable for damage caused by them, their family, guests, tenants, tenant's guests, or pets. Professional repairs due to damage to Common Elements and/or Limited Common Elements caused by improper Resident action will be charged to the Unit Owner.

18. No rugs are allowed on sidewalks or approaches to units. Rugs or mats are allowed at the entry of each individual unit entry and must be kept in good repair.

C. Garbage

1. Garbage must be in plastic bags or in a Waste Management container so that no garbage will spill.

2. Containers of garbage must be placed at the curb nearest the Resident's driveway and not on the grass. Placing of garbage on any portion of the Common Elements other than curbside is not permitted. Owners will be held responsible for any damage caused to the Common Elements.

3. The Resident must remove any litter remaining on the ground after disposing of garbage and after garbage pick-up.

14

4. Hazardous or flammable materials and construction debris shall not be deposited in the garbage container. Residents should contact the Village of Algonquin for appropriate disposal location for such materials.

5. All garbage containers shall be returned to the Resident's garage as soon as possible after garbage pick-up. Garbage containers are to be placed out no earlier than 6 p.m. the night before the scheduled pick-up day and must be removed from the common area no later than midnight on the day of pick-up.

D. Landscaping and Water

1. There will be no cutting down, moving or removal of any trees or shrubs in the Common Elements or Limited Common Elements without written consent of the Board. Owners will be held responsible for replacement costs for all landscape damage.

2. Growing of flowers is permissible, but only in the pre-existing dirt-filled areas created by the landscapers. The Owner/Resident is not allowed to create new areas for planting (i.e. digging up sod to create a flower bed). It is the responsibility of the Owner to maintain and weed such flowerbeds. The landscaping company/Management Company/Association Board will not be held responsible for any loss or damage to the flowerbeds. Planting is at the risk of the unit owner. Tree planting is not allowed. Shrub/bush planting is allowed, however, a request to alter must be made with the Board/Management Company and approval granted. If any landscaping planted by the owner dies or is removed, it is the responsibility of the owner to return the landscaping to its original condition. All dead foliage must be removed. Requests for additions, alterations, and replacements to landscaping must be submitted to the Management Company/Board for approval utilizing the Alterations & Additions Application (Exhibit B).

15

3. Planting of fruit and/or vegetables in the plant beds is not permitted.

4. Hanging plants are allowed. Such planters may not be attached to the building exterior or landscaping. The Unit Owner will be held responsible for any damage caused to the building.

5. Planters on driveways are limited to two and must be kept in good repair. They are permitted from April 15th to November 15th. Any dead foliage is to be removed immediately. Empty planters are strictly prohibited.

6. Removable flower boxes are permitted from April 15th to November 15th.

7. Residents are responsible for watering landscaping adjacent to and around their unit. Residents must provide their own hoses to water landscaping. Hoses can be stored in freestanding hose reel boxes in the mulched areas only.

8. Water from the Association spigots (outside spigots) is not allowed to be used for any reason other than to water landscaping. Personal use of Association water (i.e. washing of cars) is strictly prohibited.

9. Outdoor lighting is allowed in the mulched areas. Any electrical cords must be buried. No electrical cords or electrical boxes are permitted to be placed on or run across the limited common elements, including sidewalks, patios and driveways. The landscaping company will not be responsible for any damage to any lighting. An Alterations & Additions Application (Exhibit B) must be submitted to the Management Company/Board for approval no later than fourteen days prior to installation.

10. Landscapes rocks/stones and fences are not permitted.

16

11. Lawn ornaments are limited to four per unit. Such ornaments may be placed in the mulched areas only. They are not allowed on stairways, sidewalks, sodded areas, etc.

12. Any landscape alteration, enhancement, or replacement must be approved by the Management Company/Board prior to actual installation using the Alterations & Additions Application (Exhibit B). If said form is not submitted and resident is found to be in breach of policy, the Board can request that the alteration, enhancement, or replacement be removed at the expense of the owner. If this is not done, the Board has the right to have such item removed by the landscape contractor or maintenance contractor and the costs charged back to the Unit Owner.

13. The Board has the discretion to prohibit any planters/plants, etc. for any reason it deems to be in the best interest of the Association.

E. Seasonal Decorations

1. During any holiday, any decorative items may be displayed within reason prior to any holiday and must be removed within 14 after the holiday date. In the event that decorations are not removed within the time period provided, the Association may see to such removal. All costs and expenses incurred by the Association will be charged to the Unit Owner. It is at the Board’s discretion to delay the deadline to remove holiday decorations due to weather conditions.

2. The Board has the discretion to prohibit any decoration for any reason it deems to be in the best interest of the Association.

17

3. Any damage caused by the Resident as a result of the display or installation of decorations is the responsibility of the Unit Owner and repairs will be charged back to the Unit Owner. No decorations that create a safety hazard will be permitted. Residents have full responsibility for properly and safely disposing of seasonal decorations.

4. No decorations are allowed to be placed in the common sodded areas.

5. Lights on bushes/shrubs are allowed provided such electrical cords are run in the mulched areas or along the side of the buildings where the unit allows and are secured in such a way as to ensure that the cord will remain against the side of the building or in the mulched area.

F. Satellite Dishes/Antennae

1. Application Rules: a) Whenever any resident wants to install an antenna which in any waypenetrates the common elements of the condominium, the resident

mustfirst submit an application for approval to the Management

Company/Board of Directors prior to the installation and then therefore wait for an approval from the Board of Directors.

b) A Satellite Dish/Exterior Antenna Installation Request form is attached as

Exhibit C.

c) Upon receipt of a completed application, the Board will review it within

seven (7) days.

18

d) A completed application should contain the following:1. Certification that the installation will be performed by a professional installation company; and

2. A signed statement accepting responsibility for all damages which might occur to the property or person as a result of the installation of the Antenna; and

3. Any and all information in reference to the design, type and proposed location of the Antenna;

4. The Board will not review an incomplete application.

2. Location and Installationa) Antennas may be installed and maintained on the following preferred location sites:

1. The rooftop of the resident’s Unit provided that the antenna is not in plain view from the streets, courtyards or the windows of other Units; or

2. On the floor of the limited common element rear deck appurtenant to a resident’s Unit provided that it is not in plain view from the streets, courtyards or the windows of other Units (Antennas cannot be installed on the deck railings if the antenna in any way encroaches on the common elements), or

3. Inside the boundaries of a Unit, as defined in the Declaration, provided that the Antenna is not in plain view from the streets, courtyards or the windows of other Units.

19

b) Antennas shall not be installed or maintained in any other location on the

general common elements, another Unit or the Limited Common Elements appurtenant to another Unit except as noted in Section A of this Article II.

c) No new penetration or attachment of wire to the exterior wall of any Unit shall be permitted in connection with Antennas without first obtaining a written variance from Board of Directors. All exterior wires and cables leading from the Antenna into the Unit must be concealed or camouflaged behind gutters, downspouts and railings.

d) Residents shall ensure that the installation of their antennas do not obstruct access to or exit from any Unit, walkway, ingress or egress from an area, electrical service equipment, or any other area that the Association’s agents will need access to, for the safe operation of the Condominium.

e) Residents must ensure that their installation complies with all applicable building codes and manufacturer’s instructions to the extent that federal laws and regulations do not supersede such codes and instructions.

f) Residents must permanently ground and properly affix all wiring in order to minimize the possibility of all safety hazards.

g) The Owner(s) of the Unit is/are responsible for any damage to the common elements, another unit or any other person or property which is caused by or related to the installation or continued presence of any Antenna installed by the resident of the Unit.

20

h) The Association reserves the power to specially assess a Unit Owner for all costs to rectify any damages caused to the common elements resulting from or relating to a resident’s installation or removal of the Antenna.

i) Antennas shall not be placed anywhere near power lines (aboveground or buried).

j) The Association reserves the right to enter a Unit or the Limited Common Elements appurtenant to a Unit to inspect the area of installation. The Association has the right to request that a resident (or Unit Owner if the resident is a tenant) remove an antenna from a limited common element deck in the event that the Association is required to perform any maintenance or repair work on the deck.

k) Residents shall not use any of the cable television wiring installed on the Common Elements. In addition, Antennas not covered by the FCC rule are prohibited.

l) The rooftops of units are not exclusive use areas. The additional rules regarding Antennas placed on rooftop locations are as follows:

1. Residents must submit a completed application.

2. Antennas must be mounted on an Association approved stand or bracket.

3. Antennas must be installed and removed by an Association approved contractor that is licensed to do business in the State of Illinois that has insurance to do work on the roofs of buildings.

21

4. No Antenna shall extend higher than is absolutely necessary for reception of an acceptable quality signal.

5. After installation of the antenna, residents must ensure that the Antenna always remains properly secured so that it does not jeopardize the structural integrity of any structure or the safety of any person near the Antenna, particularly during times of great wind velocity.

6. Residents are responsible for the cost of removing and reinstalling the Antenna in the event that the Association is required to make repairs or does other maintenance work on the rooftop.

7. Whenever an Antenna is removed, the resident is responsible for the cost of a complete sealing of the area of penetration and proper disposal of any unused wiring. An

8. A Board-approved contractor shall do the rooftop repairs.

9. Residents may not penetrate either the rooftop exterior or the exterior walls of any building to either install an Antenna or to connect wiring from the Antenna to the interior of their Unit.

3. Definitionsa) The term “Antenna(s)”means those Antennas that are protected under the FCC Rule, which include Antennas that are designed:

1. To receive video programming services, including direct broadcast satellite dishes that are one meter or less in diameter measurement (DBS), digital television broadcast that are one meter or less in diameter measurement (DTV), local television

22

broadcast Antennas (Local), and multipoint distribution service Antennas that are one meter or less in diagonal measurement (MMDS); or

2. To receive and transmit “fixed wireless services”. Antennas used for “fixed wireless services” must be “customer-end Antennas”. (Masts, cables, supports, conduits, wires, fasteners or other accessories necessary for the proper installation, maintenance and use of a reception Antenna shall be considered part of the Antenna).

b) The term “Residents” shall mean Unit Owners and Tenants.

4. Enforcement

a) If these rules are violated, the Association reserves all of its legal remedies, including, but not limited to, the enactment of special charges, subject to the due process procedures under the Association’s Rules and Regulations, and Code Section 55-79.80:2 of the Illinois Condominium Act.

b) If any Antenna installation poses a serious, immediate safety hazard or threat to property, the Association reserves the power to immediately remove the Antenna without notice to the Unit Owner; however, whenever feasible, the Association shall provide advance written notice to the Unit Owner of the Board’s concerns for safety and its request of the Unit Owner to remove, relocate, or re-secure the antenna.

23

c) Unit Owners shall be responsible for any damages and costs incurred by the Association.

d) Including, but not limited to, attorneys’ fees, as a result of the actions of their Tenants.

G. Signs

1. No sign, signal, illumination, advertisement, notice or any other lettering or equipment shall be exhibited, painted, affixed or exposed on or in any window or any part of the outside of any units without the prior written consent of the Board.

a) One "For Sale" sign is permitted to be displayed from the inside window of the individual unit.

b) "Open House" signs are allowed only on the day of the open house, and only on the Limited Common Elements in front of that unit.

c) All "Open House" signs must be free standing. No signs on stakes are permitted.

d) All "Open House" signs must be removed at the end of the day.

e) "Garage Sale" signs are allowed only on the day of the sale and must be removed immediately following the close of the sale.

f) No signs may be displayed in the common area/limited common area unless they are free standing.

24

g) If the sale runs for more than one day, the signs must be taken down and put up on a daily basis.

h) Home security signs are permitted.

V. Pets, Pet Litter and Damage by Pets

A. No animals other than those allowed by the County of Kane will be permitted in any Unit or on the Common Elements.

B. No animals will be kept, bred or maintained for any commercial purpose.

C. Residents will not use their units as pet-sitting or training facilities.

D. No residents’ pets are allowed to run loose within the complex. Dogs taken outside a Unit must be on a leash.

E. Pets may not be tied to landscaping or left unattended at any time. Pet stakes are allowed provided the stake does not interfere with lawn maintenance and the rope, chain or other tethering device does not interfere with other residents.

F. Pets shall not be fed when located outside a Unit or when located in any portion of the Common Elements. Drinking water is permitted.

G. Residents must utilize the strictest sanitary procedures so that no animals shall be kept in such a manner which creates a nuisance, damage property or present danger to the health, safety and welfare of the residents.

H. The person attending the pet must immediately dispose of any deposit of solid waste by a pet on the Common Elements. The person attending such

25

pet must deposit such waste in his or her own trash can to be removed with the rest of his or her garbage.

I. Unit Owners will be held financially responsible for any damage to the landscaping due to their pets.

J. Due to the overwhelming concern in this area, infraction of any of these rules will cause notice to the Kane County Health Department.

K. Any Unit Owner or Resident who has been found to be responsible for one or more violations of the above rules shall be deemed to have a pet which causes or creates a nuisance or unreasonable disturbance within the meaning of the Declaration and By-Laws.

L. All statutes, ordinances, rules and regulations of the governmental organizations or body having jurisdiction over the Property pertaining to animal regulation, are incorporated herein and made a part hereof.

M. The Unit Owner will be held responsible for damage and any other violations of these rules caused by any pets kept in the Unit owned by him, including pets of his Tenants, guests or Tenant's guests. The costs of professionally repairing, replacing or remedying any damage, including but not limited to damage to sod or plants, and the costs of any other charges associated with maintaining or enforcing these regulations, will be charged to the Unit Owner.

N. Excessive barking will not be tolerated. The Village of Algonquin has strict ordinances against excessive/nuisance barking. Unit Owners must maintain control of their animals to prevent excessive barking.

26

VI. Vehicles, Parking, Maintenance, Storage and Movement

A. Vehicles

1. Permitted Vehicles: The following are defined as permitted vehicles:a) Passenger type automobiles having no more than four (4) entry

doors.

b) Boats may be kept inside of garages only. No boat or trailer may be stored on any driveway, private area or other Common Element.

c) Lightweight recreational motor vehicles, excluding campers, provided that the lightweight recreational vehicle shall be "B", "RV" or other passenger license plates; shall have no more than four (4) wheels; shall have a curb weight of less than eight thousand (8,000) pounds; shall have an overall length of less than twenty (20) feet; shall have an overall width of less than seven (7) feet; shall be capable of being driven into the building garage and stored in the garage in a drivable condition; and shall be of a design which, in the determination of the Board, does not impede entry and exit from the building when parked.

d) Motorbikes and motorcycles which are registered and licensed to be driven on Illinois roads and highways.

2. Non-Permitted Vehiclesa) All vehicles, other than those defined above as permitted vehicles.

b) Any vehicles without current state license plates.

27

c) Hearses used for personal or business purposes.

d) Limousines used for personal or business purposes.

e) Commercial vehicles of any type or kind, such as commercial vans or pickup trucks having commercial advertising on the body, unless such commercial vehicle, van or pickup truck is driven by a Resident on a daily basis as a means of making a living, in which case, one vehicle shall be classified as a permitted vehicle.

f) RV trailers, non-powered camper, snowmobiles, skimobiles and/or trailers for such.

g) Emergency vehicles are classified as non-permitted if not being used for the emergency purposes for the health, safety and welfare of the community.

3. Abandoned Vehicles: A vehicle shall be deemed abandoned if:a) It is in a state of disrepair rendering it incapable of being driven in its present condition.

b) It has not been used or moved for seven (7) consecutive days or more and is apparently deserted.

c) It does not have a current, valid vehicle license plate.

d) The condition of the vehicle clearly indicates it has been abandoned.

e) Any vehicle that is deemed abandoned may be removed without notice to the owner of said vehicle and at the vehicle owner's expense.

28

B. Parking, Maintenance, Storage and Movement

1. When garage and driveway are full, residents are responsible to instruct their guests to park on the street where and when allowed by law.

2. Vehicles of any type are restricted to the drives and parking areas of the Association, unless specifically authorized otherwise by the Board and/or its agents, and then, only for Association purposes. There shall be no parking on routes of passage across any other portions of the Common Elements, including all turf areas, sidewalks and fire lanes.

3. Any vehicle that is parked, maintained or stored on Common Elements, other than drives or parking areas may be removed without notice to the vehicle owner and at the vehicle owner's expense.

4. Parking, maintenance or storage of non-permitted vehicles, on any portion or portions of the Common Elements, including drives, is expressly prohibited, except that commercial vehicles may park on permitted areas for their normal commercial purposes, so long as such parking is only for the period of time necessary to provide the commercial services requested by a dwelling resident of the Association and does not block the driving lanes or sidewalks.

5. Any vehicle parked, maintained or stored in violation of this section is considered to be interfering with the ingress to and egress from a Unit or Units for emergency purposes and may be removed without notice to the vehicle owner and at the vehicle owner's expense.

6. No automobile repairs, greasing or oil changes are allowed on the parking areas, or other Common Elements. Emergency repairs will be permitted only

29

if necessary and any damage caused to the Common Elements by any Owner, his guest, permitted Tenant, family or invitee shall be paid for by that Owner.

7. Owners will be held financially responsible for any fines applicable due to the improper parking usage and behavior of their guests.

8. The Association or its agent, when apprised of a possible violation of any of the above noted Rules, shall investigate and determine whether a violation has occurred. If the Association determines that a violation has occurred, it may take any or all of the following actions in addition to removal of the vehicle for the reasons and under the circumstances noted:

a) Attach a notification sticker to the vehicle.

b) Record the vehicle identification, including license number, vehicle sticker, date of violation, type of violation and vehicle owner, if known, on permanent records of violations to be maintained by the Association at its principal office or at such other place as is designated by the Board.

c) Identify or attempt to identify the vehicle owner or whose guest or invitee, and notify said owner of the violations.

d) Notify the Village authorities, asking that they issue a citation and/or remove the vehicle.

e) Follow the procedures set forth in the enforcement policies set forth in the final section of these Rules and Regulations.

30

9. The Board of Directors is hereby authorized to execute a contract with an appropriate company or individual to effect removal of vehicles parked in violation of these Rules and Regulations.

VII. Sales and Leasing

A. All sales and permitted leases must comply with the applicable provisions of the Declaration, By-Laws, Illinois Condominium Property Act and County ordinances.

B. A "Permitted Lease" is one which is allowed pursuant to Section 2.12 of the Declaration. There is a limit of twenty percent (20%) leased units. Owners must reside in the community for a minimum of three years prior to turning the unit over for rental unless they can provide legitimate financial hardship prior to leasing the unit. The determination of whether a hardship exists lies solely with the Board. In the event twenty percent (20%) or more of the units are being leased at any one time, an owner must establish a legitimate hardship prior to leasing the unit.

C. Leasing of any unit by future owners, will require the determination of the Board of Directors, not the Unit Owner, and final approval of the lease by the Board of Directors. All lease agreements will be for a term of no longer than one (1) year. Renewal of a lease will require the redetermination of the Board of Directors, not the Unit Owner, as to re-approval of the lease by the Board of Directors.

D. Any Unit Owners seeking to lease their units are required to do the following:

1. A Rider to Lease is completed and submitted to the Board/Management Company. (See Exhibit D)

31

2. Homeowner must also submit a copy of their current HO-6 insurance policy, including the Agent contact information.

3. Homeowner is required to maintain Landlord’s Rental Condominium Insurance, requesting the Association and Management Company be named as Additional Insured with respects to Liability. Also, the policy must request limits of no less than $500,000 with Personal Liability and include Water & Sewer Backup.

4. Homeowner will be required to submit a professional Tenants Background Check including a Credit Report to the Association for review and approval.

5. Homeowner must supply a copy of their lease agreement and it must be approved by the Board. The lease can be no greater than annual and must be approved 30 days prior to each renewal.

6. Tenants will be required to maintain Renters Coverage with no less than $500,000 in Personal Liability and include Water & Sewer Backup.

E. Unit Owners are responsible for supplying their tenants with a copy of the Rules and Regulations. Written acknowledgement must be obtained at the management company office of the tenant's agreement to abide by these Rules and Regulations prior to the tenant taking occupancy. Refer to Exhibit "D" for Rider to Lease. Unit Owners will be held financially responsible for any violation of such Rules and Regulations by their tenants and their tenant's pets, guests and guests' pets.

F. In the event a Unit Owner has not sought to be approved or re-approved to lease his or her unit and leases it, has been denied to lease such Unit and leases it regardless, has not provided the lease agreement, the Unit Owner's

32

forwarding address, or the written acknowledgement by the tenant of the Rules and Regulations, the Association is entitled to and will act on, at the Unit Owner's expense, all remedies, including eviction of the tenant, injunction against occupancy, lien on unit, and forced sale of the unit. Violations will also include at a minimum a $500 fine repeating each month the Unit Owner remains in violation.

G. All Homeowners and their Renters or other Adult Occupants (Over 18 years of age) of the Homeowner's Unit shall provide to the Association Board upon request the following contact information that is to be utilized by the Association Board for the express purpose of emergency notification and late or missed assessment payments and upon separate approval of the Homeowner; other non-emergency notifications such as voting proxies and submitting repair requests, etc.

1. Full Name of Homeowner and each unit occupant full name and relationship to Homeowner.

2. Physical Address of Homeowner contact if other than Unit address.

3. Active Personal Phone Number of Homeowner or Homeowner Authorized Person. (Also Work Number if applicable)

4. Active Personal Phone Number of Adult Unit Occupant (Over 18), if other than Homeowner.

5. Active email address of Homeowner, if applicable.

6. Active email address of Homeowner Authorized Adult Occupant (Over 18).

33

7. The same contact information listed in 1-6 of the above at a minimum is also required of all Renters to any Unit occupancy. (See Section VII A-F.)

8. Homeowner's have the right to "Opt-In" the ability of the Board to communicate with Homeowners and Renters by first providing authorization to communicate in electronic manner. Electing to participate in electronic communication does not preclude the homeowner from liability of current Illinois law (Article 13.02) that deems any Notice the Board sends via U.S. Mail, postage pre-paid, is deemed as proper notification whether or not the recipient claims notice was received or not. Electronic communication is a means of assisting homeowners who would prefer an alternative method to U.S. Mail Notification.

VIII. Assessments and Assessment Collections

A. Monthly association assessments are due and payable on the first of each month. A late charge will be assessed if monthly Association dues are not received by the 15th day of the month as follows; First offense $15, second offense $20 and $30 thereafter each offense during each Calendar year. (see Exhibit E.)

B. Payment should be made by check or money order payable to Algonquin Lakes Condominium Association and mailed to the Association Management Company.

C. Any bank charges incurred by the Association as a result of checks returned for any reason will be charged back to the owner.

D. Owners will be held responsible for any separate or special assessments, including, but not limited to, delinquencies, account collection, damage by a

34

Resident to the Common Elements, repairs chargeable to a specific Unit Owner, non-recurring common expenses and legal fees.

E. Any and all unpaid assessments, special assessments, late charges, fines and other amounts charged to a Unit shall then constitute a lien to be placed upon such Unit.

F. Accounts that reach 60 days delinquency are turned over to the Association's attorney to initiate collection proceedings. The Unit Owner is responsible for all legal fees incurred as a result of this collection activity.

G. Refer to Exhibit "E" for timetable of actions to be taken in the event of late receipt of assessment fees.

H. Any owner who is in arrears with assessments will not be permitted to vote at any Board election.

I. Unit Owners may be asked to provide photo identification at all elections.

IX. Enforcement Proceedings

A. In accordance with Section 318.4(e) of the Illinois Condominium Property Act, if someone is believed to be in violation of any of the provisions of the Declaration and By-Laws or Rules and Regulations, a signed, written complaint must be submitted by a Unit Owner, the property manager, a Resident or a member of the Board of Directors. A form for this purpose is attached as Exhibit "F". Owners are responsible for the conduct of all residents and guests occupying or visiting their unit.

35

B. The Unit Owner will be given written notice of the complaint informing him of the alleged violation, allowing him five (5) days to correct the violation, and given a warning not to repeat the conduct alleged. If the violation is not corrected within the time allowed, a fine will be assessed. Subsequent infractions of the same nature must be corrected immediately.

C. All Unit Owners have the right to a hearing after a violation/fine letter is sent. They must notify the Management Company within 15 days of receipt to schedule a hearing before the Board. All hearings shall be closed, and the Board's decision final. The Board will notify the resident via certified mail within five business days of their decision. A Unit Owner may choose to pay the fine without a hearing.

D. At the hearing, the Unit Owner will have the opportunity to present a defense and respond to accusations. All hearings will proceed with or without the presence of the accused Owner, so long as notice has been sent in advance.

E. The hearing will proceed based upon witness complaints and/or witness testimony. The Board/Committee will weigh all evidence prior to rendering a finding.

F. There will be a $50.00 fine for each violation unless otherwise stated. Fines will escalate by $25 -$50 per occurrence and per each week for like violations as determined by the Board as they remain uncorrected.

G. In the event of any violation of the Rules and Regulations, Declaration or By Laws of the Association, the Board reserves the right to pursue any and all legal remedies to compel enforcement, legal and equitable. Any and all costs and attorney's fees shall be assessed back to the account of the offending Owner at the time they are incurred.

36

H. All forms are available through the Management Company and on-line atwww.algonquinlakesca.com.

X. ExhibitsA. Owner vs. Association Maintenance ResponsibilitiesB. Alterations & Additions Application

37

C. Satellite Dish Indemnification Agreement & Request FormD. Rider to LeaseE. Assessment Collection PolicyF. Violation Complaint – Witness Statement

38