The herewith By-Laws are executed and attached to the Declaration of the Lake Princeton Condominium pursuant to Chapter 5311, Ohio Revised Code. Their purpose is to provide for the establishment of a Unit Owners’ Association for the government of the Condominium Property in the manner provided by the Declaration and by these By-Laws. All present or future owners or tenants or their employees, or any other person who might use the facilities of the Condominium Property in any manner shall be subject to the covenants, provisions or regulations contained in the Declaration and these By-Laws and shall be subject to any restriction, condition or regulation hereafter adopted by the Board of Trustees of the Association. The mere acquisition or rental of any of the Units located within the Condominium Property described in the Declaration, or the mere act of occupancy of any of the units will constitute acceptance and ratification of the Declaration and of these By-Laws.

1.1. Name and Nature of Association. The Association shall be an Ohio corporation not for profit and shall be called The Lake Princeton Condominium Homeowners’ Association, Inc.

1.2. Membership. Each unit owner, upon acquisition of title to a unit, shall automatically become a member of the Association. Such membership shall terminate upon the sale or other disposition by such member of his unit, at which time the new owner of such unit shall automatically become a member of the Association.

1.3. Voting Rights. There shall be one vote for each unit comprising the Condominium Property, and the owner or owners of each unit shall be entitled to one vote for their unit.

1.4. Proxies. Members may vote or act in person or by proxy. The person appointed as proxy need not be a member of the Association. Designation by a member or members of a proxy to vote or act on his or their behalf shall be made in writing to the Board of Trustees of the Association and shall be revocable at any time by actual notice to the Board of Trustees by the member or members making such designation. Notice to the Board of Trustees in writing or in open meeting of the revocation of the designation of a proxy shall not affect any vote or act previously taken or authorized.

2.1. Number and Qualification. The Board of Trustees shall consist of three persons, except as otherwise provided, all of whom must be owners and occupiers of a unit. If for five (5) years following filing the Declaration, the Declarant, its successors and assigns, shall not have conveyed seventy-five percent (75%) of all units, no less than two members of the Board may be designated by it who need not be an owner or occupier of a unit.

2.2. Nomination of Trustees. Nomination for election to the Board of Trustees, shall be made by a Nominating Committee. Nominations may also be made from the floor at the annual meeting. The Nominating Committee shall consist of a Chairman, who need not be a member of the Association but who shall be a member of the Board of Trustees, and two or more other members of said committee who shall be members of the Association. The Nominating Committee shall be appointed by the Board of Trustees prior to each annual meeting of the members, to serve from the close of such annual meeting until the close of the next annual meeting and such appointment shall be announced at each annual meeting. The Nominating Committee shall make as many nominations for election to the Board of Trustees as it shall in its discretion determine, but not less than the number of vacancies that are members or non-members.

2.3. Election of Trustees: Vacancies. The required Trustees shall be elected at each annual meeting of members of the Association. Only persons nominated as candidates shall be eligible for election as Trustees and the candidates receiving the greatest number of votes shall be elected. Each member may vote for as many candidates as there are vacancies in the Board of Trustees, however caused. The remaining Trustees, though less than a majority of the authorized number of Trustees, may, by the vote of a majority of their number, fill any vacancy for the unexpired term, provided, however, that a vacancy in the position filled by designation of Declarant shall be filled by Declarant.

2.4. Term of Office: Resignations. Each Trustee shall hold office until the next annual meeting of members of the Association and until his successor is elected, until his earlier resignation, removal from office or death. Any Trustee may resign at any time by oral statement to that effect made at a meeting of the Board of Trustees or in a writing to that effect delivered to the Secretary of the Association; such resignation shall take effect immediately or at such other time as the Trustee may specify. Trustees of the Board of Trustees shall serve without compensation.

2.5. Organization Meeting. Immediately after each annual meeting of the members of the Association, the newly elected Trustees shall hold an organizational meeting for the purpose of electing officers and transacting any other business. Notice of such meeting need not be given.

2.6. Regular Meeting. Regular meetings of the Board of Trustees may be held at such times and places as shall be determined by a majority of the Trustees, but at least ten (10) such meetings shall be held during each fiscal year.

2.7. Special Meetings. Special meetings of the Board of Trustees may be held at any time upon call by the President or any two Trustees. Written notice of the time and place of each such meeting shall be given to each Trustee either by personal delivery or by mail, telegram or telephone at least three (3) days before the meeting, which notice need not specify the purpose of the meeting; provided, however, that attendance of any Trustees at such meeting without protesting, prior to or at the commencement of the meeting, the lack of proper notice shall be deemed to be a waiver by him of notice of such meeting and such notice may be waived in writing either before or after the holding of such meeting, by any Trustee, which writing shall be filed with or entered upon the records of the meeting. Unless otherwise indicated in the notice thereof, and business may be transacted at any organization, regular, or special meeting.

2.8. Quorum; Adjournment. A quorum of the Board of Trustees shall consist of a majority of the Trustees then in office; provided that a majority of the Trustees present at a meeting duly held, whether or not a quorum is present, may adjourn such meeting from time to time. If any meeting is adjourned, notice of such adjournment need not be given if the time and place to which such meeting is adjourned are fixed and announced at such meeting. At each meeting of the Board of Trustees at which a quorum is present, all questions and business shall be determined by a majority vote of those present, except as may be otherwise expressly provided in the Declaration or in these By-Laws.

2.9. Removal of Trustees. At any regular or special meeting of the members of the Association duly called, at which quorum shall be present, any one or more of the Trustees, except the Trustee, if any, acting as a representative of a lending institution or a member designated by Declarant as provided in 2.1. of this Article II, may be removed with or without cause by the vote of members entitled to exercise at least fifty-one percent (51%) of the voting power of the Association, and a successor or successors to such Trustee or Trustees of removed shall then be elected to fill the vacancy or vacancies thus created. Any Trustee whose removal has been proposed by the members of the Association shall be given an opportunity to be heard at such meeting.

2.10. Fidelity Bonds. The Board of Trustees shall require that all officers and employees of the Association handling or responsible for Association funds shall furnish adequate fidelity bonds. The premiums of these bonds shall be paid by the Association and shall be a common expense.

3.1. Election and Designation of Officers. The Board of Trustees shall elect a President, a Vice President, a Secretary, and a Treasurer, each of whom shall be a member of the Board of Trustees. The Board of Trustees may also appoint an Assistant Treasurer and an Assistant Secretary and such other officers as in their judgment may be necessary who are not members of the Board of Trustees but who are members of the Association, or persons who could be heirs-at-law of a unit owner under the Ohio statutes of descent and distribution provided they are occupiers of a unit.

3.2. Term of Office; Vacancies. The officers of the Association shall hold office until the next organization meeting of the Board of Trustees and until their successors are elected, except in the case of resignation, removal from office or death. The Board of Trustees may remove any officer at any time with or without cause by a majority vote of the Trustees in office. Any vacancy of any office shall be filled by the Board of Trustees.

3.3. President. The President shall be the chief executive officer of the Association. He shall preside at all meetings of members of the Association and shall preside at all meetings of the Board of Trustees. Subject to direction of the Board of Trustees, the President shall have general executive supervision over the business and affairs of the Association. He may execute all authorized deeds, contracts and other obligations of the Association and shall have such other authority and shall perform such other duties as may be determined by the Board of Trustees or otherwise provided for in the Declaration or in these By-Laws.

3.4. Vice President. The Vice President shall perform the duties of the President whenever the President is unable to act and shall have such other authority and perform such other duties as may be determined by the Board of Trustees.

3.5. Secretary. The Secretary shall keep the minutes of meeting of the members of the Association and of the Board of Trustees. He shall keep such books as may be required by the Board of Trustees, shall give notices of meetings of members of the Association and of the Board of Trustees required by law, or by these By-Laws or otherwise, and shall have such authority and shall perform such other duties as may be determined by the Board of Trustees.

3.6. Treasurer. The Treasurer shall receive and have in charge all money, bills, notes and similar property belonging to the Association, and shall do with the same as may be directed by the Board of Trustees. He shall keep accurate financial accounts and hold the same open for the inspection and examination of the Trustees and shall have such authority and shall perform such other duties as may be determined by the Board of Trustees.

3.7. Other Officers. The Assistant Secretary and Assistant Treasurer, if any, and any other officers whom the Board of Trustees may appoint shall, respectively, have such authority, and perform such duties as may be determined by the Board of Trustees.

3.8. Delegation of Authority and Duties. The Board of Trustees is authorized to delegate the authority and duties of any officer to any other officer and generally to control the action of the officers and to require the performance of duties in addition to those mentioned herein.

4.1. Payments from Maintenance Funds. The Association, for the benefit of all the owners, shall acquire, and shall pay for out of the maintenance fund hereinafter provided for, the following:

4.2. Capital Additions and Improvements. The Association’s power hereinabove enumerated shall be limited in that the Association shall have no authority to acquire and pay for out of maintenance fund any capital additions and improvements (other than for purposes of replacing or restoring portions of the Common Area and Facilities, subject to all the provisions of the Declarations and these By-Laws) having a total cost in excess of One Thousand Dollars ($1,000.00), nor shall the Association authorize any structural alterations, or capital additions to, capital improvements of the Common Areas and Facilities requiring an expenditure in excess of One Thousand Dollars ($1,000.00) without in each case the prior approval of the members of the Association entitled to exercise a majority of the voting power of the Association, provided that during the seven (7) year period following filing of the Declaration, if Declarant shall own any of the units, its consent to such expenditure shall be required.

4.3. Association’s Right to Enter Units. The Association or its agents may enter any unit when necessary in connection with any maintenance or construction for which the Association is responsible. Such entry shall be made with as little inconvenience to the owners as practicable, and any damage caused thereby shall be repaired by the Association, at the expense of the maintenance fund. In the event of any emergency originating in or threatening any unit at a time when required alterations or repairs are not scheduled, the management agent or his representative or any other person designated by the Board of Trustees may enter the unit immediately, whether the owner is present or not.

4.4. Rules and Regulations. The Association, by vote of the members entitled to exercise a majority of the voting power of the Association, may adopt such reasonable rules and regulations and from time to time amend the same, supplementing the rules and regulations set forth in the Declaration and these By-Laws as it may deem advisable for the maintenance, conservation and beautification of the Condominium Property, and for the health, comfort, safety and general welfare of the owners and occupant of the Condominium Property. Written notice of such rules and regulations shall be given to all owners and occupants and the Condominium Property shall at all times be maintained subject to such rules and regulations. In the event such supplemental rules and regulations shall conflict with any provisions of the Declaration or of these By-Laws, the rules and regulations of the Declaration and of these By-Laws shall govern.

4.5. No Active Business to be Conducted for Profit. Nothing herein contained shall be construed to give the Association authority to conduct an active business for profit on behalf of all the owners or any of them.

4.6. Special Services. The Association may arrange for the provision of any special services and facilities for the benefit of such owners and/or occupants as may desire to pay for same, including, without limitation, cleaning, repair and maintenance of units. Fee for such special services and facilities shall be determined by the Board of Trustees and may be charged directly to participating owners, or paid from the maintenance fund and levied as a special assessment due from the participants.

4.7. Delegation of Duties. Nothing herein contained shall be construed so as to preclude the Association, through its Board of Trustees and officers, from delegating to persons, firms or corporation of its choice, including any trustee or managing agent, such duties and responsibilities of the Association as the Trustees of the association shall from time to time specify, and to provide reasonable compensation for the performance of such duties and responsibilities.

4.8. Applicable Laws. The Association shall be subject to and governed by the provision of any statute adopted at any time and applicable to property submitted to the Condominium form of ownership (including, without limitation Chapter 5311, Ohio Revised Code); provided, however, that all inconsistencies between or among the permissive provisions of any statute and any provision of the Declaration and of these By-Laws, and any inconsistencies between any statute applicable to associations formed to administer property submitted to the Condominium form of ownership, shall be resolved in favor of the latter statute. In the event of any conflict or inconsistency between the provisions of the Declaration and the Articles or By-Laws of the Association, the terms and provisions of the Declaration shall prevail, and the owners and all persons claiming under them covenant to vote in favor of such amendments in the Articles or By-Laws as will remove such conflicts or inconsistencies.

5.1. Obligations of Owners to Pay Assessments. It shall be the duty of every unit owner to pay his proportionate share of the expenses of administration, maintenance and repair of the Common Areas and Facilities and of the other expenses provided for herein. Such proportionate share shall be in the same ratio as his percentage of ownership in the Common Areas and Facilities as set forth in the Declaration. Payment thereof shall be in such amounts and at such times as may be determined by the Board of Trustees of the Association, as hereinafter provided.

5.2. Preparation of Estimated Budget. Each year on or before December 15^th, the Board of Trustees shall estimate the total amount necessary to pay the cost of wages, materials, insurance, services and supplies which will be required during the ensuing calendar year for the rendering of all services, together with a reasonable amount considered by the Board of Trustees to be necessary for a reserve for contingencies and replacements, and shall on or before January 1^st notify each member in writing as to the amount of such estimate, with reasonable itemization thereof. Said "estimated cash requirement" shall be assessed to the owner according to each owner’s percentage of ownership in the Common Areas and Facilities as set forth in the Declaration. On or before January 1^st of the ensuing year, and the 1^st of every month of said year, each owner shall be obligated to pay to the Association or as it may direct one-twelfth (1/12) of the assessment made pursuant to this paragraph. On or before the date of the annual meeting in each calendar year, the Association shall supply to all owners, an itemized accounting of the maintenance expenses actually incurred for the preceding calendar year, together with a tabulation of the amounts collected pursuant to the estimates provided, and showing the net amount over or short of the actual expenditures plus reserves. Any amount accumulated in excess of the amount required for the actual expenses and reserves shall be credited according to each owner’s percentage of ownership in the Common Areas and Facilities to the next monthly installments due from owner’s during the current year’s estimate, until exhausted, and any net shortage shall be added according to each owner’s percentage of ownership the Common Areas and Facilities to the installments due in the succeeding six (6) months after rendering of the accounting.

5.3. Reserve for Contingencies and Replacements. The Association shall build up and maintain a reasonable reserve for contingencies and replacement. Extraordinary expenditures not originally included in the annual estimate which may be necessary for the year, shall be charged first against such reserve. If said "estimated cash requirement" proves inadequate for any reason, including non-payment of any owner’s assessment, the same shall be assessed to the owners according to each owner’s percentage of ownership in the Common Areas and Facilities. The Association shall serve notice of such further assessment on all owners by a statement in writing giving the amount and reasons therefore, and such further assessment shall become effective with the first monthly maintenance payment which occurs more than ten (10) days after the delivery or mailing of such notice of further assessment. All owners shall be obligated to pat the adjusted monthly amount.

5.4. Budget for First Year. When the first Board of Trustees elected hereunder takes office, the Association shall determine the "estimated cash requirement", as hereinabove defined, for the period commencing fifteen (15) days after said election and ending on December 31^st of the calendar year in which said election occurs. Assessments shall be levied against the owners during the period as provided in 5.2. of this Article V.

5.5. Failure to Prepare Annual Budget. The failure or delay of the Board of Trustees to prepare or serve the annual or adjusted estimate on the owner shall not constitute a waiver or release in any manner of such owner’s obligation to pay the maintenance costs and necessary reserves, as herein provided, whenever the same shall be determined. The absence of any annual estimate or adjusted estimate, the owners shall continue to pay the monthly maintenance charge at the existing monthly rate established for the previous period until the first monthly maintenance payment which occurs more than fifteen (15) days after such new annual or adjusted estimate shall have been mailed or delivered.

5.6. Books and Records of Association. The Association shall keep full and correct books of account and the same shall be open for inspection by an owner or any representative of any owner duly authorized in writing, at reasonable times and upon request by an owner. Upon five (5) days notice to the Board of Trustees and upon payment of a reasonable fee, any unit owner shall be furnished a statement of his account setting forth the amount of any unpaid assessments or other charges due and owing from such owner.

5.7. Status of Funds Collected by Association. All funds collected hereunder shall be held and expended solely for the purposes designated herein, and (except for such special assessments as may be levied hereunder against less than all the owners and for such adjustments as may be required to reflect delinquent or prepaid assessments) shall be deemed to be held for the use, benefit and account of all owners in proportion to each owner’s percentage of ownership in the Common Areas and Facilities as provided in the Declaration.

5.8. Assessments Prior to Organization of Association. Until such times as the Association is organized, monthly assessments in the amount of Fifty Dollars ($50.00) per unit shall be paid by the owner of each unit (including those units owned by Declarant as provided in Section 8.12 of the Declaration), and such sums shall be deposited with a bank or savings and loan association in Butler County, Ohio, for the account of and for the benefit of the Association. Such payments in such amount shall continue to be paid until the amount thereof shall be readjusted in accordance with the provisions of the Declaration and these By-Laws immediately following the organization of the Association. After the Association has been organized, Declarant shall continue to pay its proportionate share of the monthly assessments to the Association for each unit, the title of which is vested in Declarant.

5.9. Annual Audit. The Books of the Association shall be audited once a year by the Board of Trustees, and such audit shall be completed prior to each annual meeting. If requested by four members of the Board of Trustees, such audit shall be made by a Certified Public Accountant. In addition and at any time, if requested by the owners of a majority of the units, including Declarant, the Board of Trustees shall cause an additional audit to be made.

5.10. Remedies for Failure to Pay Assessments. If an owner is in default in the monthly payment of the aforesaid charges or assessment for sixty (60) days, the members of the Board of Trustees may bring suit for and on behalf of themselves and as representatives of all owners, to enforce collection thereof or to foreclose the lien therefore as provided in the Declaration. There shall be added to the amount due the costs of said suit, together with legal interest and reasonable attorney’s fees to be fixed by the Court. To the extent permitted by the Declaration, any decision or any statute or law now or hereafter effective, the amount of any delinquency and unpaid charges or assessments, and interest, costs and fees as above provided, shall be a lien or charge against the unit ownership of the owner involved when payable and may be foreclosed by an action brought in the name of the Board of Trustee or the Association as in the case of foreclosure of liens against real estate, as provided in the Declaration. As provided in the Declaration, the members of the Board of Trustees and their successors in office acting on behalf of the unit owners, shall have the power to bid in the interest so foreclosed at foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Any encumbrancer may from time to time request in writing a written statement from the Board of Trustees setting forth the unpaid common expenses with respect to the unit covered by his encumbrance and unless the request shall be complied with within ten (10) days, all unpaid common expenses which become due prior to the date of the making of such request shall be subordinate to the lien on such encumbrance.

6.1. Declarant’s Rights Pending Sale of Seventy-five Percent (75%) of Unit Ownerships. Until such time as the Association is formed, and until such time thereafter as Declarant shall have consummated the sale of seventy-five percent (75) of all unit ownerships or five years following the filing of the Declaration, whichever time shall first occur, the powers, rights, duties and functions of the Association and its Board of Trustees shall be exercised by a minimum of two (2) persons or a majority of the Board who shall be selected by Declarant.

6.2. Copies of Notice to Mortgage Holders. Upon written request to the Board of Trustees, the holder of any duly recorded mortgage or trust deed against any unit ownership shall be given a copy of any and all notices permitted or required by the Declaration or these By-Laws to be given to the owners or owners whose unit ownership is subject to such mortgage or trust deed.

6.3. Service of Notice on the Board of Trustees. Notices required to be given to the Board of Trustees or to the Association may be delivered to any member of the Board of Trustees or officer of the Association either personally or by mail addressed to such members or officers at his unit.

6.4. Service of Notices on Devisees and Personal Representatives. Notices required to be given any devisees or personal representative of a deceased owner may be delivered either personally or by mail to such party at his, her or its address appearing on the records of the Court wherein the estate of the deceased owner is being administered.

6.5. Non-Waiver of Covenants. No covenants, restrictions, conditions, obligations or provisions contained in the Declaration or these By-Laws shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur.

6.6. Agreements Binding. All Agreements and determinations lawfully made by the Association in accordance with the procedure established in the Declaration and these By-Laws shall be deemed to be binding on all unit owners, their successors, heirs and assigns.

6.7. Notices of Mortgages. Any owner who mortgages his unit shall notify the Association, in such manner as the Association may direct, of the name, address and the amount of his mortgage and thereafter shall notify the Association of the full payment, cancellation or other alteration on the status of such mortgage. The Association shall maintain such information in a book entitled "Mortgages of Units".

6.8. Severability. The invalidity of any covenant, restriction, condition, limitation or any other provision by these By-Laws, or any part of the same, shall not impair or affect in any manner the validity, enforceability or effect of the rest of these By-Laws.