Article II

Shares of Stock

Section 2.1: Ownership of Stock
Section 2.2: Certificate of Shares
Section 2.3: Transfer of Shares
Section 2.4: Lost Certificates
Section 2.5: Lien

Section 2.1 Ownership of Stock. The named purchaser(s) of any lot located within the boundaries of the original plat known as Norton Hills Estates or any adjacent numerical addition thereto will be issued 2 shares of common stock in Norton Hills Estates Recreation Association, Inc. at a par value of $125.00 per share, shall be known as Shareholder(s), and shall acquire all the privileges, rights, interests and obligations of Shareholder(s) in this Corporation

Section 2.2 Certificate of Shares. The Certificates for shares of the Capital Stock of this Corporation shall be in such form, not inconsistent with the Articles of Incorporation, as shall be prepared or be approved by the Board of Directors. The Certificates shall be signed by the President and also by the Secretary.

Section 2.3 Transfer of Shares. Upon receipt by the Secretary of documentary proof that the fee title to any Lot within the Plat of Norton Hills Estates, or any numerical addition thereto, has been transferred from an owner thereof to any subsequent purchaser(s), the Secretary shall request that the prior fee owner(s) surrender the certificate representing shares held in Norton Hills Estates Recreation Association, Inc., but upon the prior owner's failure to surrender said certificate the Secretary shall void it and shall issue a new certificate representing a like number of shares to the new fee owner(s). This provision is deemed to effectuate the mandatory transfer of share provision set forth in the covenant of title recorded in the Office of the Register of Deeds of Muskegon County, and affecting said premises. Upon transfer of shares, which will be deemed to have occurred as of the date that fee title to the Lot was transferred, each transferee shall acquire all the privileges, rights, interest and obligations of a shareholder in this Corporation. Each new shareholder shall be deemed to assent to these Bylaws in their entirety.

Section 2.4 Lost Certificates. If any Certificate for Shares of stock in this Corporation is lost, the Secretary shall issue a replacement Certificate upon receipt of an affidavit attesting to the loss as well as a statement fully indemnifying the Corporation therefor issued by the registered holder(s) or the holder's authorized representative.

Section 2.5 Lien. The Corporation shall have a lien upon all stock or property of its members invested therein, for all debts due it by the owners thereof.