DECLARATION OF CONDOMINIUM

OF

SOUTH FORK CONDOMINIUM

            The Declaration of Condominiums made under the Condominium Ownership Act, Chapter 703 of the Wisconsin Statutes, by Kirk Zelinske and Timothy J. Savino, hereinafter collectively referred to as the “Declarant”.

            I.            INTENT.  It is the intent of the Declarant, pursuant to this Declaration of Condominium, to submit the land and improvements described herein to condominium ownership and use in the manner provided by the Wisconsin Condominium Ownership Act.

            II.            DESCRIPTION OF LAND.  The land subject to this Declaration is owned by the Declarant and is more fully described in Exhibit “A”, attached hereto and incorporated herein by reference as though fully set forth.  It is located in the Township of Fifield, County of Price, State of Wisconsin.  The mailing address is N82W18046 Coventry Court, Menomonee Falls, WI  53051.

            III.            DESCRIPTION OF UNITS.  There are thirteen (13) building sites in Phase I of the land referred to in paragraph II.  Each building site shall contain one (1) condominium unit (hereinafter “unit”).  Each unit shall be completed within eighteen (18) months after commencement of construction.  All unit exteriors shall be restricted to wood, such as full log, log siding, cedar, pine, etc…, or other exterior otherwise approved by the South Fork Condominium Association.  Exteriors of vinyl, steel and aluminum are specifically excluded from use.  Each unit shall be a minimum of 1000 square feet in size.  Final design approval shall be by the Condominium Association Plan Review Committee.

            If any owner elects to build or enlarge his building the enlarged building shall become part of that Unit proposed expansion of units as set forth on Exhibit “A”.

            IV.            UNITS.  Units are identified on the condominium plat by a number designation.  Units are that part of the condominium intended for the exclusive use of each unit’s owner, his, her or their family, and those persons authorized to use or occupy each unit. 

            If any Unit owner elects to enlarge his unit as described in the Condominium Plat they must comply with all current laws and regulations regarding construction and zoning.

            V.            COMMON ELEMENTS.  “Common Elements” without intending to limit the

terms, include:

            a)            The land described in Exhibit “A”  (including driveway) not designated as “Limited Common Elements”.

            b)            All tangible personal property and fixtures, if any, acquired by the South Fork Condominium Association (hereafter referred to as the Association) for use in the operation, maintenance and management of the condominium.

            The Common Elements are owned by the Unit Owners, in Phase I each unit owner each having an undivided 1/13^th interest therein.  Each Unit Owner, his, her or their assigns, successors in interest, agents, employees, lessees, sublessees, mortgagees or licensees may use the Common Elements in accordance with the purpose for which they were intended, according to this Declaration, the Bylaws of the Association, Rules and Regulations adopted by the Association, and the Wisconsin Condominium Ownership Act.  The ownership interest will change if additional phases are added to this condominium association.

            However, the portions of the common elements designated as limited common may be used only by the unit Owner of the Unit to which their use is limited to in this declaration and in the Association By-laws, and by those persons authorized by the Unit Owners to use their respective limited common elements.

            Other than maintenance vehicles, there shall be no motorized vehicles on designated walking trails.

            No part of the Common Elements shall be used or maintained as a dumping ground for rubbish, garbage or waste of any kind. 

            No part of the Common Elements shall be used for commercial purposes by any unit owner. 

            Each Unit owner shall have the right to rent their respective units, with renters enjoying all rights and privileges of the Unit owner relative to use of the Common Elements.

            Campfires shall be restricted to designated fire pits in the common areas and/or private residences.

            The Declarants, their heirs, successors and assigns, shall retain for the Gibson home and an adjoining five acre parcel, (to be surveyed at a later date) the right to use the walking trails and access to the Flambeau River.  If the owners of these two parcels elect to exercise their rights to use the walking trails and river access, then they shall be responsible for a proportionate share of the expenses associated with said use.

            VI.  LIMITED COMMON ELEMENTS.  The “Limited Common Elements” are demarked on the condominium plat (Exhibit A).

            The Limited Common Elements respectively are reserved for the exclusive use and possession of the Owner of the Unit to which each Limited Common Element pertains and to that Owner’s assigns, successors in interest, lessee, sublessees, invitees and licensees.

            The unit owners agree that all external lights shall have deflectors so direct light is not shining into adjacent units.

            No part of the Limited Common Elements shall be used or maintained as a dumping ground for rubbish, garbage or waste of any kind.  Each unit owner shall be responsible for disposal of their rubbish, garbage or waste.  All such rubbish, garbage or waste shall be kept in containers so it is not a visual nuisance to the other unit owners.

            No part of the Limited Common Elements shall be used for commercial purposes by any unit owner.

            There shall be no outside storage of any motor vehicles, boats, snowmobiles, golf carts or RV’s beyond the recreational use of any of these items.

            Structures of a temporary nature, such as trailers or tents, may be placed on the Limited Common Elements by the Unit Owner for recreational purposes, but shall not be used or maintained as a permanent dwelling.

The location of each building site, and well and septic location shall be approved  by the Condominium Association Plan Review Committee, and buyer shall be required to construct their home in accordance with said plan.

            VII.  ACCESS AND PARKING.  Parking shall be on their respective lots only.

            VIII.            INTERPRETATION OF CONDOMINIUM PLAT.  If there is a minor variance between (a) any existing physical boundaries of any unit, common or limited common element and (b) this Declaration of Condominium Plat as recorded, the former shall be conclusively presumed to be its boundary.  The same presumption shall apply to variances resulting from any duly authorized repair or reconstruction.  These presumptions apply only to variations within the condominium.  A significant variance shall require a corrected survey and condominium plat, to be paid for and recorded by the Association.

            IX.            AGENT FOR SERVICE OF PROCESS.  The initial Resident Agent for service of legal process, as well as for the condominium generally, shall be Timothy J. Savino, N82W 18046 Coventry Ct., Menomonee Falls, WI  53051.  The Resident Agent shall also serve, as required by law, as the Registered Agent of the Association of Unit Owners.  The Association, may, at any time, designate a Successor Agent, upon Resolution of its Board of Directors.

            X.            ASSOCIATION OF UNIT OWNERS.  All Unit Owners shall be members of SOUTH FORK CONDOMINIUM Association.  The powers and duties of the Association shall include those set forth in the Association By-laws, the Wisconsin Condominium Ownership Act, and this Declaration.  No Unit Owner, except an officer of the Association, or member of its Board of Directors shall have any authority to act for the Association.  Notwithstanding any express or implied powers given to the Association by its By-laws as adopted, the Association shall not be entitled to any of the following acts, except as provided by statute in cases of condemnation or substantial loss to the units of the condominium project, unless all (100%) of the first mortgagees (based upon one (1) vote for each first mortgage owned), and the Unit Owners shall have given their prior written approval.

            a)            By act or omission, seek to abandon or terminate the condominium project.

            b)            Change the pro-rata interest or obligations of any individual condominium unit for the purpose of:

                        1)            levying assessments or charges or allocated distributions of hazard             insurance proceeds or condemnation awards, or,

                        2)            determining the pro-rata share of ownership of each condominium unit in   the common elements.

            c)            By act or omission, seek to abandon, partition, sub-divide, encumber, sell or transfer the common elements.

            XI.            VOTING RIGHTS AND DECLARANT CONTROL.            There shall be one person with respect to each Unit Ownership who shall be entitled to vote at any meeting of the Owners.  Such person shall be known and hereinafter referred to as a “voting member”.  Such voting member may be the Owner of one of the group composed of all of the Owners of a Unit or may be some person designated by such Owner or Owners to act as proxy on his or their behalf and who need not be an Owner.  Such designation shall be made in writing to the Board and shall be revocable at any time by actual notice to the Board of the death or judicial declared incompetence of any designator, or by written notice to the Board by the Owner or Owners.  If more than one person owns a unit, the One (1) vote attributable to that Unit shall be cast unanimously by all the Unit’s owners, or it shall not be counted.  There shall be no fractional vote.  Any and all of such Owners may be present at any meeting of the voting members and (those constituting a group acting unanimously) may vote or take other action as a voting member either in person or by proxy.  Notwithstanding the provisions above, and except as provided below, the Declarant hereby expressly reserves the right to exercise all powers and responsibilities of the Unit Owners Association as assigned to it by this Declaration, the Association By-laws and Chapter 703 of the Wisconsin Statutes.  The period of Declarant control shall begin on the date the first condominium unit is conveyed by Declarant to any person or entity other than the Declarant.  The period of Declarant control shall end upon the earlier of the following:

            a)            The expiration of three years following commencement of Declarant control.

b)                 The expiration of 30 days after the conveyance of 75% of the Common Element of all five phases to purchasers.

c)                  If Declarants decide not to expand the Condominium Association further the expiration of 30 days after the conveyance of 75% of the Common Element of all five phases to purchasers.

            Notwithstanding the above, the Unit Owners, other than the Declarant, shall be permitted to elect directors of the Unit Owners Association as expressly granted in Section 703.15(2)(d) and (f) of the Wisconsin Statutes (1990).

            XII.            EXPANDABILITY.  All unit owners shall be allowed to enlarge their respective building within their limited common area so long as they comply with this declaration and by-laws and comply with all zoning regulations.  In complying with zoning regulations, each lot shall be considered a stand-alone lot for set-back purposes.  Also, any expansion of a unit shall be subject to the review and approval of the Condominium Design Review Committee.

This condominium association may be expanded in four additional phases at the sole discretion of Declarants.  The areas of expansion are shown on the attached map marked Exhibit D.  The total number of units after the expansion shall not exceed one hundred (100) units.  Upon the decision to proceed with each phase, those units contained within said phase shall receive all the same rights that the units of the existing phase have and the existing units shall obtain rights in the common areas of the current expansion phase.

            XIII.            BYLAWS, RULES AND REGULATIONS.  The Association may promulgate and amend such reasonable bylaws, rules and regulations as necessary and desirable to carry out the purposes and intents of this Declaration, to promote the harmonious usage of the Common Elements and to cause each Unit Owner to be free from any unreasonable interference with the use of such Owner’s building and appurtenant Limited Common Element.

            XIV.            MAINTENANCE AND REPAIR OF LIMITED COMMON ELEMENTS.  Each Unit Owner shall be responsible for the maintenance, repair, reconstruction and appearance of his, her, or their Limited Common Element.

            XV.            MAINTENANCE AND REPAIR OF COMMON ELEMENTS.  The Unit Owners shall be jointly responsible for the maintenance, repair and appearance of the common area.  The common area shall be maintained in good condition, appearance and repair at all times.  The expenses associated with the maintenance and repair shall be paid in accordance with Article XIX.

            XVI.            EASEMENTS.

            a)            For Utilities.  The Unit Owners, the Association, and the Declarant (until such time as their interest in the property terminates) shall each have easements for utility purposes, over, under, along and on any part of any unit, the Limited Common Elements and Common Element.  Each unit shall be metered separately.

            b)            For Maintenance, Alteration and Repair.  Each Unit Owner shall have an easement over and into the surfaces of the Common Elements abutting his, her, its or their unit for the purpose of maintenance, alteration and repair provided that this easement shall not be construed so as to allow the owner to impair the structural integrity of any portion of the property or to change the boundaries of the unit, or to interfere with the rights of the other Unit Owners in the Limited Common Elements or Common Element.

            c)            Easements Run With the Land.  All easements and rights set forth in this Declaration run with the land and are subject to the reasonable control of the Association.  No Unit Owner shall do any work which would jeopardize the soundness of safety of the property, reduce the value thereof or impair any easement or hereditament without first obtaining, in every such case, the written consent of the other Unit Owners.  The Condominium shall receive an easement for ingress and egress from Flambeau River Corporation.

            XVII.            INSURANCE.  The Association shall obtain fire, casualty and extended coverage insurance for the common area insuring it against loss or damage by fire and other hazards for not less than the full replacement value of any structures or personal property on said common area.  The proportion of coverage attributable to each unit shall be determined by a qualified insurance agent or broker selected by the Association.  That same proportion shall be used to determine how much of the total premium charges for each year shall be assessed to each owner.

Each Unit Owner shall also obtain appropriate liability insurance, insuring their unit against claims arising out of their ownership of, use, presence on or any other association with the Units or Limited Common Elements of the condominium.  Such coverage shall be written on the property in the name of the Unit Owner, and their first mortgagees, as their interest may appear.  All unit owners shall provide copies of their respective insurance policies on a yearly basis.

            In the event of damage or destruction to all or part of any Unit or the Common or Limited Common elements of the condominium, the Unit Owners, in conformance with their responsibilities set forth in provisions XIV and XV shall promptly undertake its repair or reconstruction to its former condition or one compatible with the remainder of the condominium.  The cost of such repair or reconstruction which exceeds available insurance proceeds shall be borne singly or jointly by the Unit Owners in accordance with their responsibilities set forth in provisions XIV and XV.  Similarly, any surplus in insurance proceeds over construction costs shall be disbursed on the same basis.

            All plans for repair or reconstruction must be submitted to and approved by the Association prior to the commencement of construction.

            XVIII.            COMMON EXPENSES AND SURPLUSES.  The expenses incurred by the Association in performing its responsibilities or otherwise duly incurred shall be called “Common Expenses”.  The Common Expenses shall be charged to the Unit Owners according to their percentage interest of each in the Common Elements except for insurance premiums, which shall be separately determined.

            All Unit Owners shall be liable for all assessments, or installments thereof, coming due while owning a unit. 

            Any Common Surpluses of the Association may be distributed among the Unit Owners or credited against any assessments outstanding against a Unit Owner in the same percentage governing the assessment.

            XIX.            SEPARATE TAXATION.  Every unit and its percentage interest in the Common Elements shall be deemed to be a separate parcel and subject to separate assessments and taxation for all types of taxes authorized by law including but not limited to, special ad valorem levies and special assessments.  In the event that, for any year, such taxes are not separately taxed to each Unit Owner, but are taxed on the property as a whole, then each Unit Owner shall pay his/her/their proportionate share thereof in accordance with the relative value of his or her unit, determined by the purchase price compared to the aggregate value of all units, determined by the aggregate purchase prices.

            XX.            UTILITIES.  Utilities will be separately metered for each unit.

            XXI.  PETS, NUISANCES.  Pets are permitted if properly restrained to avoid becoming an annoyance or nuisance to other unit owners.

            XXII.            CONVEYANCE AND DISPOSITION.  The legal description of each unit for all conveying purposes shall consist of a number designation as shown on the Condominium Plat recorded with this Declaration.  Every deed, lease, mortgage or other instrument may legally describe a unit by its identifying number as shown on the plat, and every such description shall be deemed good and sufficient for all purposes, as provided by the Act.  Each unit shall consist of the space enclosed and bounded as described in paragraph III above.

            Each Unit Owner shall have the right to mortgage or encumber his respective unit.  No Unit Owner shall have the right or authority to mortgage or otherwise encumber in any manner whatsoever the property or any part thereof, except his own Unit.

            XXIII.            CONDEMNATION.  In the event of condemnation proceedings commenced against the condominium, including any Unit, Common Elements or portion thereof, the allocation of any award shall be governed by Section 703.19(3) of the Wisconsin Statutes, except that before a Unit Owner shall be paid any portion of the award, any unpaid first mortgagee of his/her/their interest shall be paid in full.

            XXIV.  AMENDMENT.  This Declaration may be amended only with the written consent of all Unit Owners and their first mortgagees.  Any amendment so adopted shall be certified by the President and Secretary of the Association in a form suitable for recording and shall become effective upon recording with the Price County Register of Deeds.

            XXV.  REVOCATION.  This Declaration may be revoked and the property removed from the provisions of the Wisconsin Condominium Ownership Act by a duly recorded instrument to that effect.  Section 703.28 of the Wisconsin Condominium Ownership Act shall govern such removal.

            XXVI.  ARBITRATION OF DISPUTES.  In the event the Unit Owners, per se, or as members or officers of the Association cannot resolve differences of opinion on serious matter(s) which must be resolved in order that the intents and purposes of this declaration be carried out, any such disputant may give written notice to all Unit Owners that the matter(s) will be submitted for arbitration if not resolved within five days.

            Upon receipt of this notice the disputants shall review the matter(s) in an effort to resolve them.  If they remain unresolved at the end of the five (5) day period, the disputants shall attempt to agree on an arbitrator.  If they cannot, they shall each name a proposed arbitrator, and the two proposed arbitrators shall select a third person and the three shall serve as an arbitration panel chaired by the third person to resolve the dispute.  The expense of the arbitration shall be shared equally by the disputants.

            XXVII.            SEVERABILITY AND INTERPRETATION.  The invalidity of any provision of this Declaration or any part thereof, shall not impair or affect in any manner the validity, enforceability or effect of the rest of the Declaration.  The intent of this Declaration is to comply with Chapter 703 of the Wisconsin Statutes.  It shall be liberally construed in favor of enforceability.                                                  

___________________________________(SEAL)

                                                                        KIRK ZELINSKE

                                                                        ___________________________________(SEAL)

                                                             TIMOTHY J. SAVINO

STATE OF _____________          )

                                                ) ss

COUNTY OF ___________              )

            Personally came before me this _____ day of ________________, 2003, the above named Kirk Zelinske and Timothy J. Savino to me known to be the persons who executed the foregoing instrument and acknowledged the same.

                                                                        __________________________________________

This document drafted by:                                Notary Public, _______________________ County

Attorney Thomas J. Duffy                            State of __________________________________

Hayward, WI                                                   My commission: ___________________________