AUTHORIZATION TO SIGN ON MY BEHALF

AND

PROXY

The undersigned owner(s) hereby appoints Nancy P. Kirchner, President of the Board of Directors of Presque Isle Harbor Association, her successor in office, or such other person as may be designated from time to time by the Board of Directors as my (our) attorney-in-fact to sign on my (our) behalf, an Amendment to the Declaration of Restrictive Covenants to effect the following changes:

1.      The title of the restrictive covenants shall read:  DECLARATION OF RESTRICTIVE
COVENANTS BY Presque IslE Harbor Association, And AMERICAN

      CENTRAL CORPORATION HEREINAFTER CALLED DEVELOPER

2.      Article I, Section 1(c) shall read:  “Common Properties” shall mean and refer to those areas designated by the Developer on any plat and those included in the deed recorded by the Presque Isle County Register of Deeds at Liber 214, Pages 701-714.  These lots are intended to be devoted to the common use and enjoyment of the owners of the Properties.

3.      Article I, Section 1(g) shall read: “Improve,” “Improving,” or “Improvements” shall mean and refer to physical changes that increase the members’ existing private rights of use and enjoyment, but shall not include development or changes that by their location, nature, or character substantially diminish such rights or inhibit their exercise.

4.      Article II, Section 1 shall read:  “Existing Property”.  The real property which is, and shall be held, transferred, sold, conveyed and occupied, subject to this Declaration is located in the County of Presque Isle, Michigan and is more particularly described as follows: Plat(s) of Harbor Manor, Northland Heights, Northland Heights No. 2, Grand Highland View, Harbor View, Harbor View No. 2, Esau Terrace, Grand Pines No. 1, Grand Pines No. 2, Presque Isle Heights, Northbay Shores, Northbay Heights.  All of which real property is referred to herein as “Existing Property”.

5.      Article III, Section 1(a) shall read:  Despite the type of ownership device or interest, number of ownership interests, or number of lots owned there shall be only one member.  When a lot(s) is (are) held in fee by a single individual, that single fee holder shall be the member of  the association.  When a lot(s) is (are) held in fee by more than one individual, or when a lot(s) is (are) held in fee by a corporation, limited liability company, partnership, trust or other entity, only one individual shall be a member, and that member shall be designated in writing to the Association by the fee holder(s), or as recognized by the Association in the absence of a designation.  The individual designated for membership by a corporation, limited liability company, partnership, business trust, or other entity must have a twenty five percent (25%) ownership interest in said entity, or if no owner owns twenty five (25%), he must have the largest ownership interest.  When a lot(s) is (are) held on a land contract or similar arrangement, the vendee shall be the member.  No lesser interest holder, mortgage holder or other holder of a security interest shall be deemed a member as a result of such interest. 

6.      Article III, Section 2 shall read:  Voting Rights.  Each member shall have one vote regardless of the number of owners of a lot or the number of lots in which he has an ownership interest.

7.      Article IV, Section 3(a) shall read:  The Association, in accordance with its Articles and By-laws,
may borrow money only from a regulated, publicly held and traded financial institution for the
purpose of improving the Common Properties and in aid thereof may mortgage said properties with
such a financial institution.  The members’ rights and easements in the Common Properties shall be
subordinate to any such mortgage given by the Developer or Association as security for funds
borrowed for said improvements.  Any such indebtedness which shall be created for the purpose of
making improvements to the Common Properties shall be an obligation of the Association.  In the
event of a default upon any such mortgage, the lender or mortgagee shall only have the rights
afforded under the mortgage or security agreement and under the laws of the State of Michigan
including the right after taking possession of the Properties to charge admission and other fees as a
condition to continued enjoyment by the members and if necessary to open the enjoyment of such
properties to a wider public.  If the Properties are returned to the Association, all rights of the
members hereunder shall be restored; and  

8.      Article V, Section 3 shall read:  Basis and Amount of Annual Assessments.  The annual assessment and basis thereof shall be as last approved under this section, section 4 or section 5 below per each Original Lot sold by Developer, its representatives or assigns, by Land Contract or Deed and the assessment shall be distributed evenly against each Original Lot.  From all such assessments, the association shall pay for the cost of the maintenance of parks, equipment, general upkeep of the Presque Isle Harbor area, management and operation thereof.  In no event shall any assessment or charge or special assessment as provided below be levied against or be due from the Association for any lots owned by it, or otherwise.

9.      Article VI, Section 1 shall read:  Review by Committee.  No building, septic tank, well, signs, dock, pier, incinerator, trash or garbage receptacle, fence, wall or other structure shall be commenced, erected or maintained upon The Properties, nor shall any exterior addition to or change or alteration therein be made until the plans and specifications showing the nature, kind, shape, heights, materials, and location of the same shall have been submitted (in such form as may be prescribed from time to time) to and approved in writing by the Board of Directors of the Association, or by an architectural committee composed of three (3) or more representatives appointed by the Board.  The Board and an Architectural Control Committee so appointed by the Board shall exercise its authority under this section pursuant to the building and use restrictions in Article VII below as modified or supplemented by such other reasonable standards as the Board may from time to time prescribe.  In the event said Board or its designated committee fail to approve or disapprove such design and location within thirty (30) days after said plans and specifications have been submitted to it, approval will not be required.  This Article shall not apply to the Association on any lots owned by it for the purposes of sale or resale.  In any event, the Association Board of Directors may file suit to enjoin (a) occupation or use of any dwelling constructed in violation of this section or Article VII; and (b) any commencement, continuation, erection, maintenance, addition, alteration or change described in this section above; and (c) any dwelling that is constructed in violation of this section or Article VII; and (d) to require the removal of any structure or improvement built in violation of the limitations or plans, whether before or after completion.  Further, in the event the Association shall be successful in obtaining relief, it shall be entitled to actual reasonable attorneys fees, as determined by the Court, in addition to taxable costs.  The fees and costs together with statutory interest thereon, shall be a continuing lien upon the land where the violation occurred as well as the personal obligation of the owner of said lands.  The lien may be foreclosed in the same manner as a mortgage containing a power of sale. 

10.  The closing of the restrictive covenants shall read:  THE PRESQUE ISLE HARBOR ASSOCIATION

Additionally, in the event sufficient signatures are obtained to amend the Restrictive Covenants as aforesaid I (we) appoint Nancy P. Kirchner, her successor or other person designated by the Board to cast my (our) vote to amend Article III, Section 1 of the Bylaws to conform to Article III, Section 1(a) of the amended Restrictive Covenants; and, to amend Article IV of the By-Laws to conform to Article III, Section 1(c) of the amended Restrictive Covenants.  This vote may be cast at any regular or special meeting providing that the notice for such meeting contains a full explanation of the proposed amendment, and at any adjournment or adjournments thereof, or subsequent meetings necessitated by a lack of quorum.

The “AUTHORIZATION TO SIGN ON MY BEHALF AND PROXY” to act as my attorney-in-fact shall not be affected by the disability of the principal and shall remain in full force and effect until written notice of revocation shall be received by the Board of Directors of the Association.

OWNER(S)

DATED:                                         (1)______________________________________

                                                             Signature                                      Print Name

DATED:                                         (2)______________________________________

                                                             Signature                                      Print Name

DATED:                                         (3)______________________________________

                                                             Signature                                      Print Name

DATED:                                         (4)______________________________________

                                                             Signature                                      Print Name

By signing this document on behalf of a corporation, limited liability company, partnership, trust, or other entity, or as attorney-in-fact for another, the signer swears and affirms under penalty of perjury that he or she is doing so with proper authority.

Lot Number: ________

Subdivision Name: _____________________________________________________

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