SW8050108_Current Permit_20050125

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Mr. Gary A. Mercer, President
Mercer Building Company
106-B Professional Park Drive
Beaufort, NC 28516
Michael F. Easley, Governor
William G. Ross, Jr., Secretary
North Carolina Department of Environment and Natural Resources
January 25, 2005
Subject: Stormwater Permit No. SW8 050108
Old Beaufort Village- Phase 5
Low Density Subdivision with a Curb Outlet System
Carteret County
Dear Mr. Mercer:
Alan W. Klimek, P.E. Director
Division of Water Quality
The Wilmington Regional Office received a complete Stormwater Management Permit
Application for Old Beaufort Village- Phase 5 on January 25, 2005. Staff review of the plans
and specifications has determined that the project, as proposed, will comply with the
Stormwater Regulations set forth in Title 15A NCAC 2H.1000. We are forwarding Permit No.
SW8 050108, dated January 25, 2005, for the construction of the subject project.
This permit shall be effective from the date of issuance until rescinded and shall be subject t\
the conditions and limitations as specified therein, and does not supersede any other agency
permit that may be required. �.._
If any parts, requirements, or limitations contained in this permit are unacceptable, you have
the right to request an adjudicatory hearing upon written request within thirty (30) days
following receipt of this permit. This request must be in the form of a written petition,
conforming to Chapter 150B of the North Carolina General Statutes, and filed with the Office of
Administrative Hearings, P.O. Drawer 27447, Raleigh, NC 27611-7447. Unless such demands
are made this permit shall be final and binding.
If you have any questions, or need additional information concerning this matter, please
contact either Christel Graham or me at [phone],
Sincerel ,
Ed Beck
Acting Regional Supervisor
Surface Water Protection Section
ENB/clg: S:IWQSISTORMWATIPERMIT1050108.jan05
cc: Ronald D. Cullipher, P.E., Stroud Engineering, P.A.
Carteret County Inspections
NCDOT District Engineer
Christel Graham
Wilmington Regional Office
Central Files
North Carolina Division of Water Quality 127 Cardinal Drive Extension Phone [phone] Customer Servicel-877-623-6748
Wilmington Regional Office Wilmington, NC 28405-3845 FAX [phone] Internet h2o.enr.state.nc,us ne
rthCarohna
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State Stormwater Management Systems
Permit No. SW8 050108
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
STATE STORMWATER MANAGEMENT PERMIT
LOW DENSITY DEVELOPMENT WITH A CURB OUTLET SYSTEM
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of
North Carolina as amended, and other applicable Laws, Rules and Regulations
PERMISSION IS HEREBY GRANTED TO
Mr. Gary A. Mercer, Mercer Building Company
Old Beaufort Village- Phase 5
Carteret County
FOR THE
construction, operation and maintenance of a 30% low density subdivision with a curb
outlet system in compliance with the provisions of 15A NCAC 2H .1000 (hereafter
referred to as the "stormwater rules') and the approved stormwater management plans
and specifications, and other supporting data as attached and on file with and approved
by the Division of Water Quality and considered a part of this permit.
The Permit shall be effective from the date of issuance until rescinded and shall be
subject to the following specific conditions and limitations:
I. DESIGN STANDARDS
1. The project is permitted for 48 lots, each limited to a maximum BUA per lot as
described in Section II Item 12.f of this permit, as defined by the stormwater
rules, and as indicated in the approved plans. CAMA regulations may reduce the
built -upon area for those lots within the AEC.
2. The overall tract built -upon area percentage for the project must be maintained at
30%, per the requirements of Section .1005 of the stormwater rules.
3. This project proposes a curb outlet system. Each designated curb outlet swale or
1 00'vegetated area shown on the a proved plan must be maintained at a
minimum of 100' long, maintain 5:1 �H:V) side slopes or flatter, have a
longitudinal slope no steeper than 5 Ye, carry the flow from a 10 year storm in a
non -erosive manner, maintain a dense vegetated cover, and be located in either
a dedicated common area or a recorded drainage easement.
4. No piping shall be allowed except those minimum amounts necessary_ to direct
runoff beneath an impervious surface such as a road or under driveways to
provide access to lots.
5. Runoff conveyances other than the curb outlet system swales, such as perimeter
ditches, must be vegetated with side slopes no steeper than 3:1 (H:V).
6. Approved plans and specifications for projects covered by this permit are
incorporated by reference and are enforceable parts of the permit.
Page 2of6

State Stormwater Management Systems
Permit No. SW8 050108
11. SCHEDULE OF COMPLIANCE
1. Curb outlet swales, vegetated areas and other vegetated conveyances shall be
constructed in their entirety, vegetated, and be operational for their intended use
prior to the construction of any built -upon surface, per the approved plans
2. During construction, erosion shall be kept to a minimum and any eroded areas of
the swales or other vegetated conveyances will be repaired immediately.
3. The permittee shall at all times provide the operation and maintenance
necessary to operate the permitted stormwater management systems at optimum
efficiency to include:
a. Inspections
b. Sediment removal.
C. Mowing, and revegetating of the side slopes.
d. Immediate repair of eroded areas.
e. Maintenance of side slopes in accordance with approved plans and
specifications.
f. Cleaning and repair of catch basin grates, flumes, piping, and the flow
spreader mechanism.
4. The permittee shall submit to the Director and shall have received approval for
revised plans, specifications, and calculations prior to construction, for any
modification to the approved plans, including, but not limited to, those listed
below:
a. Any revision to the approved plans, regardless of size.
b. Project name change.
C. Transfer of ownership.
d. Redesign or addition to the approved amount of built -upon area or to the
drainage area.
e. Further subdivision, acquisition or sale of the project area. The project
area is defined as all property owned by the permittee, for which
Sedimentation and Erosion Control Plan approval was sought.
f. Filling in, piping, or altering any vegetative conveyance shown on the
approved plan.
5. The Director may determine that other revisions to the project should require a
modification to the permit.
6. The permittee is responsible for verifying that the proposed built -upon area does
not exceed the allowable built -upon area. Once the lot transfer is complete, the
built -upon area may not be revised without approval from the Division of Water
Quality, and responsibility for meeting the built -upon area limit is transferred to
the individual property owner.
7. The permittee must certify in writing that the project's stormwater controls, and
impervious surfaces have been constructed within substantial intent of the
approved plans andspecifications. Any deviation from the approved plans must
be noted on the Certifcation. The permittee shall submit the Certification to the
Division within 30 days of completion of the project.
8. The permittee shall submit all information requested by the Director or his
r^cF.esentative within the time frame specified in the written information request.
9. Each lot in the subdivision covered by this permit will maintain a minimum 30 foot
wide vegetative buffer between all impervious areas and surface waters.
Page 3 of 6

State Stormwater Management Systems
Permit No. SW8 050108
10. Deed restrictions are incorporated into this permit by reference and must be
recorded with the Office of the Register of Deeds prior to the sale of any lot.
11. All roof drains must terminate at least 30' from the Mean High Water mark.
12. Recorded deed restrictions must include, at a minimum, the following statements
related to stormwater management:
a. The following covenants are intended to ensure ongoing compliance with
State Stormwater Management Permit Number 050108, as issued by the
Division of Water Quality under NCAC 2H.1000.
b. The State of North Carolina is made a beneficiary of these covenants to
the extent necessary to maintain compliance with the Stormwater
Management Permit.
C. These covenants are to run with the land and be binding on all persons
and parties claiming under them.
d. The covenants pertaining to stormwater may not be altered or rescinded
without the express written consent of the State of North Carolina, Division
of Water Quality.
e. Alteration of the drainage as shown on the approved plans may not take
place without the concurrence of the Division of Water Quality.
f. The maximum built -upon area per lot is as follows:
Lots 1-8 2900 square feet
Lots 9-21 3250 square feet
Lots 22-48 2900 square feet
Open space/Park 2500 square feet
This allotted amount includes any built -upon area constructed within the
lot property boundaries, and that portion of the right-of-way between the
front lot line and the edge of the pavement. Built upon area includes, but is
not limited to, structures, asphalt, concrete, gravel, brick, stone, slate,
coquina, driveways, and parking areas, but does not include raised, open
wood decking, or the water surface of swimming pools.
g. Filling in, piping or altering any 3:1 vegetated conveyances (ditches,
swales, etc.) associated with the development except for average
driveway crossings, is prohibited by any persons.
h. Lots within CAMA's Area of Environmental Concern may have the
permitted built -upon area reduced due to CAMA jurisdiction within the
AEC.
i. Filling in, piping or altering any designated 5:1 curb outlet swale or
vegetated area associated with the development is prohibited by any
persons.
A 30' vegetated buffer must be maintained between ail built -upon area and
the Mean High Water line of surface waters.
k. All roof drains shall terminate at least 30' from the Mean High Water mark.
Page 4of6

State Stormwater Management Systems
Permit No. SW8 050108
Each designated curb outlet swale or 100' vegetated area shown on the
ap1proved plan must be maintained at a minimum of 100' long, maintain
° (cI ar) side slopes or flatter, have a longitudinal slope no steeper than
5 / , carry the flow from a 10 year storm in a non erosive manner, maintain
a dense vegetated cover, and be located in either a dedicated common
area or a recorded drainage easement.
13. The Director may notify the permittee when the permitted site does not meet one
or more of the minimum requirements of the permit. Within the time frame
specified in the notice, the permittee shall submit a written time schedule to the
Director for modifying the site to meet minimum requirements. The permittee
shall provide copies of revised plans and certification in writing to the Director
that the changes have been made.
14. The permittee must submit a copy of the recorded deed restrictions within 30
days of the date of recording.
15. Prior to transfer of ownership, the swales must be inspected and determined to
be in compliance with the permit. Any deficiencies will be repaired or replaced
prior to the transfer.
16. The final plats for the project will be recorded showing all required swale
easements and common areas, in accordance with the approved plans.
III. GENERAL CONDITIONS
1. Failure to abide by the conditions and limitations contained in this permit mayy
subject the Permittee to an enforcement action by the Division of Water Qualityy,
in accordance with North Carolina General Statutes 143-215.6A to 143-215.6C.
2. The permit issued shall continue in force and effect until revoked or terminated.
3. The permit may be modified, revoked and reissued or terminated for cause. The
filing of a request for a permit modification, revocation and reissuance, or
termination does not stay any permit condition.
4. The issuance of this permit does not prohibit the Director from reopening and
modifying the permit, revoking and reissuing the permit, or terminating the permit
as allowed by the laws, rules, and regulations contained in Title 15A of the North
Carolina Administrative Code, Subchapter 2H.1000; and North Carolina General
Statute 143-215.1 et. al.
5. The permit is not transferable to any person or entity except after notice to and
approval by the Director. The Director may require modification or revocation and
reissuance of the permit to change the name and incorporate such other
requirements as may be necessary. A formal permit transfer request must be
submitted to the Division of Water Quality accompanied by the appropriate fee,
documentation from both parties involved, and other supporting materials as may
be appropriate. The approval of this request will be considered on its merits, and
may or may not be approved. The permittee is responsible for compliance with all
the terms and conditions of this permit until the Division approves the permit
transfer.
6. The issuance of this permit does not preclude the Permittee from complying with
any and all statutes, rules, regulations, or ordinances imposed by other
government agencies (local, state and federal) which have jurisdiction. If any of
those permits or approvals result in revisions to the plans, a permit modification
must be submitted.
Page 5 of 6

State Stormwater Management Systems
Permit No. SW8 050108
7. The permittee grants permission to DENR Staff to enter the property during
business hours for the purposes of inspecting the stormwater control system and
it's components.
8. The permittee shall notify the Division of Water Quality of any name, ownership
or mailing address changes within 30 days.
Permit issued this the 25t" day of January 2005.
NORTH�CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
---- -------- ------ —� --------------------
Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Page 6 of 6

STATE STORMWATER:
PERMIT INFORMATION UPDATE APPLICATION FORM
There is NO FEE for updating project name or permittee information.
This form is to only to be used by the current permittee to notify the Division of
1) changes to the Point of Contact (signing official) for the current permittee (LLC, Corporation, HOA or POA);
2) changes to the mailing address, phone number or email address of the current permittee;
3) changes to the name of the project and
4) changes to the legal corporate name as documented by a Name Change or Merger filed with the NCSOS.
A. NEW PERMIT INFORMATION
State Stormwater Permit Number: SW8 050108
Are you updating
(check all that PP y)I:
If.so, please provide the updated information:
® Project name
Palmetto Plantation @ Olde Beaufort Village
® Corporation Name'
Mercer Building & Design, Inc
❑ Permit Contact Name2.3
❑ Permit Contact Title
® Mailing Address3
106D Professional Park Drive, Beaufort, NC 28516
® Phone number
252-723-7811
® Email address
Qarvm(camercerrealtvinc.com
Provide documentation such as a Name Change / Merger filed with the NCSOS.
Provide supporting documentation such as NCSOS filing. The permit contact's position must be in accordance
with 15A NCAC 02H .1040(1).
If more than one point of contact or mailing address is being changed, please attach a separate sheet.
B. CERTIFICATION OF PERMITTEE
I, Gary A. Mercer , the current permittee, hereby notify DEMLR that I am making the changes as listed
in Section A above. I further attest that this application for an update to the permit information currently on file is accurate
and complete to the best of my knowledge. —1
Signature:` Date:
I, (�kt&eo V)k c -� �U� Notary Public for the State of
do hereby certify that A-C�
4er�e*d before me this the day of �� , 20, and acknowledge the due
�exe a fAoing instrument. Witness my hand and official seal,
: of —3"�
Notary Signature
My commission expires `'I Z021
Stormwater Permit information Update Form Page 1 of 1 May 11, 2017

OFFICE USE ONLY
Date Received
Fee Paid
Permit Number
State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
'This form may be photocopied for use as an original
I. GENERAL INFORMATION
1. Applicants name (specify the name of the corporation, individual, etc. who owns the project):
Mercer Building Company
2. Print Owner/Signing Official's name and title (person legally responsible for facility and compliance):
Gary A. Mercer, President
3. Mailing Address for person listed in item 2 above:
106-B Professional Park Drive
City: Beaufort
Telephone Number:
252 ) 728-6636
State: NC Zip: 28516
4. Project Name (subdivision, facility, or establishment name - should be consistent with project name on plans,
specifications, letters, operation and maintenance agreements, etc.):
Old Beaufort Village - Phase 5
5. Location of Project (street address):
Professional Park Drive
City: Beaufort
County: Carteret
6. Directions to project (from nearest major intersection):
From the intersection of Highway 70 and Highway 101 take Highway 70 east approximately 1 mile turn left on
Professional Park Drive, project is at the end of Professional Park Drive on the north side of the street.
7. Latitude: N 34^44'52" Longitude: W 76A37'35" of project
8. Contact person who can answer questions about the project:
Name: Gary A. Mercer Telephone Number: ( 252 ) 728-6636
II. PERMIT INFORMATION:
1. Specify whether project is (check one): ✓ New Renewal Modification
Form SWU-101 Version 3.99 Page 1 of 4

2. If this application is being submitted as the result of a renewal or modification to an existing permit, list the
existing permit number and its issue date (if known)
3. Specify the type of project (check one):
✓ __Low Density High Density Redevelop General Permit Other
4. Additional Project Requirements (check applicable blanks):
CAMA Major ✓ Sedimentation/Erosion Control _404/401 Permit NPDES Stormwater
Information on required state permits can be obtained by contacting the Customer Service Center at
1-877-623-6748.
III. PROJECT INFORMATION
1. In the space provided below, summarize how stormwater will be treated. Also attach a detailed narrative
(one to two pages) describing stormwater management for the project.
Low density project with stormwater treated through sheet flow and curb outlet swales, minimum of
100 feet in length.
2. Stormwater runoff from this project drains to the White Oak
3. Total Project Area: 20.5865 acres
5. How many drainage areas does the project have? 1
River basin.
4. Project Built Upon Area: 29.999 %
6. Complete the following information for each drainage area. If there are more than two drainage areas in the
project, attach an additional sheet with the information for each area provided in the same format as below.
Basin Information
Drainage Area 1
Drainage Area 2
Receiving Stream Name
Gable Creek
Receiving Stream Class
SA
Drainage Area
896,750.06 SF
Existing Impervious* Area
0 SF
Proposed Impervious*Area
269,016 SF
% Impervious* Area (total)
29.999%
Impervious* Surface Area
Drainage Aiea 1
Drainage Area 2
On -site Buildings
143,750 SF
On -site Streets
99,406 SF
On -site Parking
On -site Sidewalks
23,360 SF
Other on -site
2,500 SF
Off -site
I
I Total: 269,016 SF
Total:
Impervious area is defined as the built upon area including, but not limited to, buildings, roads, parking areas,
sidewalks, gravel areas, etc.
Form SWU-101 Version 3.99 Page 2 of 4

7. How was the off -site impervious area listed above derived? N/A
IV. DEED RESTRICTIONS AND PROTECTIVE COVENANTS
The following italicized deed restrictions and protective covenants are required to be recorded for all
subdivisions, outparcels and future development prior to the sale of any lot. If lot sizes vary significantly, a table
listing each lot number, size and the allowable built -upon area for each lot must be provided as an attachment.
1. The following covenants are intended to ensure ongoing compliance with state stormwater management permit number
as issued by the Division of Water Quality. These covenants may not be
changed or deleted without the consent of the State.
2. No more than SEE ATTACHED square feet of any lot shall be covered by structures or impervious materials.
Impervious materials include asphalt, gravel, concrete, brick, stone, slate or similar material but do not include wood
decking or the water surface of swimming pools.
3. Swales shall not be filled in, piped, or altered except as necessary to provide driveway crossings.
4. Built -upon area in excess of the permitted amount requires a state stormwater management permit modification prior to
construction.
5. All permitted runoff from outparcels or future development shall be directed into the permitted stormwater control
system. These connections to the stormwater control system shall be performed in a manner that maintains the integrity
and performance of the system as permitted.
By your signature below, you certify that the recorded deed restrictions and protective covenants for this project
shall include all the applicable items required above, that the covenants will be binding on all parties and persons
claiming under them, that they will run with the land, that the required covenants cannot be changed or deleted
without concurrence from the State, and that they will be recorded prior to the sale of any lot.
V. SUPPLEMENT FORMS
The applicable state stormwater management permit supplement form(s) listed below must be submitted for each
BMP specified for this project. Contact the Stormwater and General Permits Unit at [phone] for the status
and availability of these forms.
Form SWU-102
Wet Detention Basin Supplement
Form SWU-103
Infiltration Basin Supplement
Form SWU-104
Low Density Supplement
Form SWU-105
Curb Outlet System Supplement
Form SWU-106
Off -Site System Supplement
Form SWU-107
Underground Infiltration Trench Supplement
Form SWU-108
Neuse River Basin Supplement
Form SWU-109
Innovative Best Management Practice Supplement
Form SWU-101 Version 3.99 Page 3 of 4

Olde Beaufort Village Phase V ex
Low -Density Stormwater Permit, Total 48 lots
The following impervious restrictions shall apply to lots:
Lot #
Allowable BLIAILot (SF)
1
2900
2
2900
3
2900
4
2900
5
2900
6
2900
7
2900
8
2900
9
3250
10
3250
11
3250
12
3250
13
3250
14
3250
15
3250
16
3250
17
3250
18
3250
19
3250
20
3250
21
3250
22
2900
23
2900
24
2900
25
2900
26
2900
27
2900
28
2900
29
2900
30
2900
31
2900
32
2900
33
2900
34
2900
35
2900
36
2900
37
2900
38
2900
39
2900
40
2900
41
2900
42
2900
43
2900
44
2900
45
2900
46
2900
47
2900
48
2900
Open space/Park
2500
Total
146,250 sqft

VI. SUBMITTAL REQUIREMENTS
Only complete application packages will be accepted and reviewed by the Division of Water Quality (DWQ).
A complete package includes all of the items listed below. The complete application package should be
submitted to the appropriate DWQ Regional Office.
1. Please indicate that you have provided the following required information by initialing in the space provided
next to each item.
Initials
• Original and one copy of the Stormwater Management Permit Application Form 1249C
• One copy of the applicable Supplement Form(s) for each BMP
wc—
• Permit application processing fee of M (payable to NCDENR)EFY4--2L:�5S F197 ev
• Detailed narrative description of stormwater treatment/management t 2 bo%" G
• Two copies of plans and specifications, including: 120(l
- Development/Project name
- Engineer and firm
-Legend
- North arrow
- Scale
- Revision number & date
- Mean high water line
- Dimensioned property/project boundary
- Location map with named streets or NCSR numbers
- Original contours, proposed contours, spot elevations, finished floor elevations
- Details of roads, drainage features, collection systems, and stormwater control measures
- Wetlands delineated, or a note on plans that none exist
- Existing drainage (including off -site), drainage easements, pipe sizes, runoff calculations
- Drainage areas delineated
Vegetated buffers (where required)
VII. AGENT AUTHORIZATION
If you wish to designate authority to another individual or firm so that they may provide information on your
behalf, please complete this section.
Designated agent (individual or firm)
Mailing Address: 151-A Hwy 24
City: Morehead City
Phone:( 252 ) 247-7479
Stroud Engineering, P.A.
VIII. APPLICANT'S CERTIFICATION
_ State: NC Zip: 28557
Fax: ( 252 1 247-4098
I, (print or type name of person listed in General Information, item 2) Gary A. Mercer, President
certify that the information included on this permit application form is, to the best of my knowledge, correct and
that the project will be constructed in conformance with the approved plans, that the required deed restrictions
and protective covenants will be recorded, and that the proposed project complies with the requirements of 15A
NCAC 2H .1000.
Signature:,
Form SWU-101 Version 3.99 Page 4 of 4
Date: f — / 3 -- Z-&c E—

Permit No. , ®�� 0
(to be provided by DWQ)
State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
CURB OUTLET SYSTEM SUPPLEMENT
FOR LOW DENSITY DEVELOPMENT WITH CURB AND GUTTER
This form may be photocopied for use as an original
DWO Stormwater Management Plan Review:
A complete stormwater management plan submittal includes a stormwater management permit application, a
curb outlet system supplement, a low density supplement, design calculations, and plans and specifications
showing all stormwater conveyances and curb outlet details.
I. PROJECT INFORMATION
Project Name :
Old Beaufort Village - Phase 5
Contact Person: Gary A. Mercer Phone Number: (252 ) 728-6636
Curb outlets to (check one): 40 Swale 0 Vegetated Area
II. REQUIRED ITEMS CHECKLIST
The following checklist outlines design requirements per the North Carolina Administrative Code Section 15A
NCAC 211.1008.
Initial in the space provided to indicate that the following design requirements have been met and supporting
documentation is attached. If the applicant has designated an agent on the Stormwater Management Permit
Application Form, the agent may initial below. If a requirement has not been met, attach justification.
Applicants Initials
ploc, a. Curb outlets direct flow to a Swale or vegetated area.
b. Swales or vegetated areas receiving curb outlet flow are designed to carry, at a minimum,
the peak flow from the 10-year storm.
�- c. Flow velocity is non -erosive for peak flow from the 10-year storm event.
r2+X, d. Longitudinal slope of the swale or vegetated area does not exceed 5%.
94�K, e. Side slopes of the swale or vegetated area are no steeper than 5:1 (horizontal to vertical).
(LIX-, f. Length of Swale or vegetated area is > 100 feet.
g. The system takes into account the run-off at ultimate built -out potential from all surfaces
draining to the system (delineate drainage area for each swale). 1
P%L h. Swales are located in recorded drainage easements. (`Tv W REFC�2 DOD WIFII r44L mkr)
f2*X_ i. Grass type(s) for permanent vegetative cover specified on detail.
QZC j. Swale detail provided on plans.
Form SWU-105 Ver 3.99 Page 1 of 3

III. DESIGN INFORMATION
Complete the following table. If additional space is needed the information should be provided in the same
format as Table 1 and attached to this form. Rainfall intensity data can be found in Appendix 8.03 of the State
of North Carolina Erosion and Sediment Control Planning and Design Manual.
Table 1. Swale Design Information i(G- RA!;wD�
Swale No.
Drainage
Area ac
Impeivions
Area ac
Grassed
Area (ac)
C
Q
(cfs
Va„,
s
V- bul
s
Flow
Depth ft
1
5.997
2.282
3.715
0.60
25.90
4.0
1.79
0.97
2
2.784
1.239
1.545
0.64
12.87
4.0
1.45
0.67
3
3.115
1.103
2.012
0.58
13.07
4.0
1.30
0.62
4
2.616
0.945
1.671
0.58
11.06
4.0
2.58
0.75
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Form SWU-105 Ver 3.99 Page 2 of 3

k
III. CURB OUTLET SYSTEM MAINTENANCE REQUIREMENTS
1. Mowing will be accomplished as needed according to the season. Grass height will not exceed six inches
at any time.
2. Swales will be inspected monthly or after every runoff producing rainfall event for sediment build-up,
erosion, and trash accumulation.
3. Accumulated sediment and trash will be removed as necessary. Swales will be reseeded or sodded
following sediment removal.
4. Eroded areas of the swales will be repaired and reseeded. Swales will be revegetated as needed and in a
timely manner based on the monthly inspections.
5. Catch basins, curb cuts, velocity reduction devices, and piping will be inspected monthly or after every
significant runoff producing rainfall event. Trash and debris will be cleared away from grates, curb cuts,
velocity reduction devices and piping.
6. Swales will not be altered, piped, or filled in without approval from NCDENR Division of Water Quality.
I acknowledge and agree by my signature below that I am responsible for the performance of the six
maintenance procedures listed above. I agree to notify DWQ of any problems with the system or prior to any
changes to the system or responsible party.
Print Name and Title: Gary A. Mercer, President
Address: 106-B Professional Park Drive, Beaufort, NC 28516
252-728-6636
Signature:
Date: /- / 3 - ZOO S
Note: The legally responsible party should not be a homeowners association unless more than 50% of the lots have been sold and a
resident of the subdivision has been named the president.
I, MA-1THG W L h4cN YE , a Notary Public for the State of 1AOfZTk*CAP-yL 64A , County of
(:PA l , do hereby certify that 6AR%r A-- kG9ZL-+g=P— personally appeared before me this :377�
day ofTj,�t ON." 5 , and acknowledge the due execution of the forgoing infiltration basin maintenance
requirements. Witness my hand and official seal,
,'toll Ia tatty,•
•� � l.. MpN ••
i
M
=Q� AR1►';m=
SEI
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My commission expires__ 21 4eelr
Form SWU-105 Ver 3.99 Page 3 of 3

Permit No. slit/ 17()S D % O 7
(to be provided by DWQ)
State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
LOW DENSITY SUPPLEMENT
This form may be photocopied for use as an original
A low density project is one that meets the appropriate criteria for built upon area and transports stormwater
runoff primarily through vegetated conveyances. Low density projects should not have a discrete stormwater
collection system as defined by 15A NCAC 2H .1002(18). Low density requirements and density factors can be
found in 15A NCAC 2H .1005 through .1007.
I. PROJECT INFORMATION
Project Name : Old Beaufort Village - Phase 5
Contact Person: Gary A. Mercer Phone Number: ( 252 ) 728-6636 0
Number of Lots: 48
Allowable Built Upon Area Per Lot*: SEE ATTACHED
*If lot sizes are not uniform, attach a table indicating the number of lots, lot sizes and allowable built upon area
for each lot. The attachment must include the project name, phase, page numbers and provide area subtotals
and totals.
II. BUILT UPON AREA
See the Stormwater Management Permit Application for specific language that must be recorded in the deed
restrictions for all subdivisions.
For uniform lot sizes, complete the following calculation in the space provided below where:
• SA Site Area - the total project area above Mean High Water. Wetlands may be excluded when the
development results in high density pockets.
• DF Density Factor - the appropriate percent built upon area divided by 100.
• RA Road Area - the total impervious surface occupied by roadways.
• OA Other Area - the total area of impervious surfaces such as clubhouses, tennis courts, sidewalks, etc.
• No. Lots - the total number of lots in the subdivision.
• BUA/Lot - the computed allowable built upon area for each lot including driveways and impervious
surfaces located between the front lot line and the edge of pavement.
Form SWU-104 Rev 3.99 Page 1 of 2

(SA x DF) - RA - OA = BUA
No. Lots Lot
Calculation:
0.30 x 896750.06 SF - 99406 SF - 23360 SF - 2500 SF = 143759.01 SF (ALLOWABLE BUA)
35 lots @ 2900 SF/lot = 101500 SF & 13 lots @ 3250 SF/lot = 42250 SF
TOTAL BUA = 143750 SF < ALLOWABLE BUA
III. REQUIRED ITEMS CHECKLIST
Initial in the space provided to indicate that the following requirements have been met and supporting
documentation is provided as necessary. If the applicant has designated an agent on the Stormwater
Management Permit Application Form, the agent may initial below.
Applliics Initials
11 a. A 30 foot vegetative buffer is provided adjacent to surface waters. Projects in the Neuse
River basin may require additional buffers.
R� b. Deed restriction language as required on form SWU-101 shall be recorded as a restrictive
covenant. A copy of the recorded document shall be provided to DWQ withi 30 days of
platting and prior to sale of any lots. ( AJ= '� t'--�vtiDM�
c. Built upon area calculations are provided for the overall project and all lots.
ffir d. Project conforms to low density requirements within the ORW AEC (if applicable).
[15A NCAC 2H .1007(2)(b)]
Form SWU-104 Rev 3.99
Page 2 of 2

iYlerlanie Arthur 63 p
CARTERET MNATFY
1G JL Date 03/02/2007 Tillie 09 u 39 u 00
tali 121.3078 Palle f. of 63
SEP 8 2M?
NOW CAROLINA, CARTERET COUNTY
�Y: s instrument and this certificate are duly filed at
the date and time and in the Book and Page shoWit
on the first page hereof.
ffi j` Mr-7117ffl
Prepared by and Return to Richard L. Stanley
D& AS 7741S
STATE OF NORTH CAROLINA DECLARATION OF RESTRICTIVE COVENANTS
CONDITIONS AND ST®R1dIWATER EASEMENTS
COUNTY OF CARTERET FOR PALMETTO PLANTATION AT OLDE
BEAUFORT VILLAGE
These Restrictions and Easements. executed thi s I" day of March 2007, by Mercer Building
Company,106-B Professional Drive, Beaufort, NC, 28516C, herein "Declarant" Carolina; and all
persons, firms and corporations hereafter acquiring certain designated lots, townhomes or
condominium units within Palmetto Plantation at Olde Beaufort Village located off Professional
Drive, Beaufort, NC, as the same may be shown on plats of the same hereafter recorded, including
those lots within Phase 1, Section 1 of Palmetto Plantation at Olde Beaufort Village shown on a
Stroud Engineering Plat recorded in Map Book 31, page 193, Carteret County Registry, said plat
being incorporated herein by reference;
WITNESSETH:
WHEREAS, Mercer Building Company now owns real property located in Beaufort
Township, Carteret County, North Carolina, offProfessional Drive which is to be developed as part
of Palmetto Plantation at Olde Beaufort Village, a planned unit development, with phase 1, Section
1 of said Palmetto Plantation at Olde Beaufort Village PUD being shown on a plat recorded in Map
Book 31, page 193, Carteret County Registry; and
� 4

WHEREAS, Mercer Building Company, herein "Declarant", as the owner of said real
property, intends to subdivide the property into single family subdivision and multi -family tracts
or lots as part of the Declarant's project to be known as "Palmetto Plantation at Olde Beaufort
Village PUD.", herein "Palmetto Plantation";
WHEREAS, .Declarant intends to locate, construct and complete access roads from
Professional Drive over and across the property as shown or to be hereafter shown on recorded plats
for use by the various tracts within Palmetto Plantation P.U.D. for access to and from Professional
Drive, and Declarant fiu-ther intends to locate, construct and complete swales, a stormwater pond
and other stormwater facilities and equipment within The Palmetto Plantation., for use by the various
tracts for stormwater runoff, accumulation and infiltration;
WHEREAS, Declarant intends to impose certain restrictions regarding impervious surfaces,
to allow for and impose easements for drainage, to allow for and impose easements for vehicular
access, to require prior architectural approval for construction and development of certain designated
tracts, and to otherwise preserve the values, attractiveness and environmental quality of said project,
and in order to accomplish all of these purposes, Declarant has adopted these restrictions, covenants
and easements;
NOW, THEREFORE, in order to provide for the foregoing, the Declarant does hereby
covenant and agree with all persons, firms or corporations now owning or hereafter acquiring
designated parcels within The palmetto Plantation at Olde Beaufort Village PUD., herein "Project",
that the use of the lots or tracts in said Project is hereby made subject to the following restrictions,
covenants, easements, terms and conditions, which shall run with sai ,_1 project and the lands therein,
and be binding on the property owners within said project and their successors and assigns.
ARTICLE I - DEFINITIONS

As used throughout this Declaration, the following terms shall have the definitions set out
herein as follows:
A. "Declaration" shall mean and refer to this Declaration of Covenants,
Easements, Conditions, and Restrictions for Palmetto Plantation at Olde Beaufort Village P.U.D.,
and any amendments thereto as recorded in the Carteret County Registry.
B. "Declarant" shall mean and refer to Mercer Building Company and its
successors in interests and assigns. "Declarant" and "Developer" as used herein are interchangeable
and shall have the same definition.
C. "Lot" or "Parcel' shall mean and refer to any tract or plot of land within
Palmetto Plantation at Olde Beaufort Village P.U.D. project as said project is more particularly
described hereafter, which constitutes or will constitute after construction of improvements, single
family subdivision and multi -family sites, as shown on the plats or plans for Palmetto Plantation as
recorded in the Carteret County Registry.
D. "Owner" shall mean and refer to the owner of record of fee simple interest in
any lot, tract or parcel in Palmetto Plantation at Olde Beaufort Village P.U.D. project, excluding
those persons having such interests merely of a security interest for the performance of an obligation.
E. "Tract or Parcel' shall initially mean and refer to all of those tracts or parcels
of Phase 1, Section 1 of Palmetto Plantation at Olde Beaufort Village P.U.D. as shown on the plat
of Stroud Engineering, PA, recorded in Map Book31, page 193, Carteret County Registry, which are
intended by Declarant for single family residential use. Declarant by recordation of maps and
amendments hereto reserves the right to bring additional tracts or parcels under the terms of this
Declaration of Restrictive Covenants.
3

F. "Project" shall mean and refer to the multi -family and single family residential
projects brought under and contemplated as part of Palmetto Plantation at Olde Beaufort Village
P.U.D which is estimated to contain a total of 53 acres.
G. "Association" shall mean and refer to Palmetto Plantation Master Association,
Inc., and its successors and assigns, the Association entity responsible for the overall administration,
upkeep, and maintenance of the streets, stormwater facilities, and other common areas of Palmetto
Plantation P.U.D.
ARTICLE II - PROPERTIES SUBJECT TO THIS DECLARATION
1. Applicability. All of the lots and property designed as Phase 1, Section 1 as shown
on the Stroud Engineering PA plat recorded in Map Book 31, page 193, Carteret County Registry,
are hereby expressly made subject to the operation of these Covenants.
2. Additional Lands. Declarant at any time prior to December 31, 2016 reserves the
right to add or bring additional phases, lots or lands under this Declaration by filing in the Office of
the Register of Deeds for Carteret County, North Carolina, either an applicable amendment or a
supplementary Declaration ofCovenants and restrictions with respect to them additional lots, phases
or properties. Said amendments or supplemental Declaration would extend the scheme of
development and the binding effect of these Covenants and Restrictions on the additional properties,
and such amendments or supplementary Declarations may contain complementary additions and
modifications of these Covenants and Restrictions as may be necessary to reflect the different
character and uses of the added properties. In no event shall the supplementary declaration revoke,
modify or add to these Covenants which are applicable to the lots set forth in Paragraph 1 above.
3. Reservations. The Declarant reserves the right absolutely to change, add to, alter or
redesignate the allocated, planned, platted, or recorded use, area, or designation of any of the parcels
4
phi-::-:. ...:.• � ....-

shown on plats of the Palmetto Plantation P.U.D. project as recorded aforesaid, so long as the
Declarant retains title to the property involved, so long as any changes or alterations are in
conformance with the Town of Beaufort's Subdivision, Zoning, and Multi -Family Ordinances,
including, but not limited to the right to change, alter or redesignate roads, utility and drainage
easements, and to change, alter or redesignate such other present or proposed parcel or tract lines and
facilities as may, in the sole judgment of the Declarant, be necessary or desirable.
ARTICLE III - ARCHITECTURAL CONTROL INSPECTION AND USE RESTRICTIONS
Declarant shall have the responsibility of enforcing the restrictions set forth in this Article
prior to the formation ofthe Committee, which upon appointment by the Declarant, shall assume and
be responsible for enforcement. References in this Article to "Committee" shall mean Declarant
until the Committee is appointed and references to "Declarant" shall include the Committee once it
is appointed. The following building or architectural restrictions shall apply to each and every parcel
of Palmetto Plantation P.U.D. Project subject to this Declaration:
Section 1. Approval of Plans and Architectural Committee.
(a) No site preparation or initial construction, erection, or installation of any
improvements, including, but not limited to structures, buildings, landscaping, fences, walls,
drainage, lot clearing, signs, antennas or other structures, shall be undertaken upon the parcels unless
the plans and specifications therefore, showing the nature, proposed uses, kind, shape, size, height,
materials, and location of the proposed improvements on each parcels, including but not limited to,
buildings, decks, drives, drainage, landscaping, clearing, parking areas, plants, shrubs, trees
(including trees to be removed), and any other permanent structures or changes to be made to the
parcel, shall have been first submitted to the Committee and expressly approved in writing. No
subsequent alteration or modification which would result in an exterior, structural change to the
5 43 ��

buildings, outbuildings, or significant changes to the landscaping may be undertaken on any of the
parcels without the nrior review and express written approval of the Committee.
(b) In the event the Committee fails to approve or disapprove the site or design
of any proposed improvements within thirty (30) days after plans and specifications therefore have
been submitted and received, approval will not be required, and the requirements of this Article will
be deemed to have been fully met; provided, that the plans and specifications required to be
submitted shall not be deemed to have been received by the Committee if they contain erroneous
data or fail to present adequate information upon which the Committee can arrive at a decision.
(c) The Committee shall have the right, at its election, to enter upon any of the
parcels during site preparation or construction, erection or installment of improvements, to inspect
the work being undertaken and to determine that such work is being performed in conformity with
the approved plans and specifications and in a good and workmanlike manner, utilizing standard
industry methods and good quality materials.
(d) The approval of any such plans, specifications or other items submitted to the
Committee pursuant to this Section shall not impose any liability or responsibility on the Committee
or the Association with respect to either the compliance or non-compliance with any such plans,
specifications, or other items (including any improvements or structures erected in accordance
therewith) with applicable zoning ordinances, building codes or other governmental or quasi -
governmental laws, ordinances, rules and regulations or defects in or arising from such plans,
specifications or other items (including, without limitation, defects relating to engineering matters,
structural and design matters and the quality or suitability of materials).
(e) Until such time as the Declarant notifies the owners of parcels within the
project of its desire to appoint the Committee, the Declarant consisting of Gary A. Mercer, Judy
6

Mercer and Carolyn Fowle, shall serve as the Committee, and shall exercise the authority to approve
plans and other matters set forth in this Article. At such time as Declarant notifies the parcel owners
that they will appoint a Committee for the functions and purposes set forth herein, the Committee
consisting of two to five persons, shall be appointed by the Declarant to each serve for a term of one
year or until their successors have been duly appointed, in the event of the death, resignation or
removal of a member of the Architectural Review Committee.
(fl With the submission of the plans and specifications, each parcel owner shall
pay a non-refundable architectural review fee to the Declarant in such amount as may be established
from time to time by the Declarant for the review of the plans and specifications, so long as the
Declarant is acting as the Committee, and thereafter shall pay to the Committee such fee as may be
approved from time to time for architectural review of the plans and specifications.
2. General Architectural Theme for Phase 1. Declarant has established as the general
architectural theme and building design for Phase 1, Section 1 of Palmetto Plantation at Olde
Beaufort Village Victorian, early 1900's or coastal maritime design consisting primarily of clapboard
siding, porches, pitched roofs and the like. Houses and residential structures of a contemporary or
modem design or era as well as houses constructed primarily of brick will be prohibited unless
specifically approved by the Declarant or the Architectural Committee in writing as being proper and
fitting for lots in Phase V. Nothing herein shall be construed as dictating the type or quality of
materials used so that vinyl, hardboard and similar sidings will be allowed. It is the Declarant's
intent that the specified architectural style or design be followed as opposed to requiring the use of
specified materials.
Section 3. General PUD Use Restrictions.
7
Do. W-- P ..,t

(a) All parcels within the project as defined herein shall be used single family
residential and/or multi -family purposes only, in accordance with the Town of Beaufort Zoning,
Subdivision and Multi -Family Ordinances.
(b) Mobile homes, trailers, manufactured homes, modular homes, tents and all
other structures of a temporary character are expressly prohibited from being placed, erected or
maintained on any lot at any time. Provided, this prohibition shall not apply to shelters used by a
Contractor or Builder during the construction of a building so long as the temporary shelter is not
used at any time as a residence and said temporary shelter is immediately removed following
completion of the building. As used herein, the term "mobile home" and "manufactured home" shall
have those definitions and meanings set forth in G.S. 41-2.5, G. S. 143-143.9(6), and G.S.
143-145(7). Provided, that the width and length of a manufactured home, or mobile home shall be
irrelevant and inapplicable as it is the intent of these covenants to prohibit manufactured homes,
modular homes and mobile homes of all sizes regardless of length or width.
(c) Only stick built buildings shall be permitted on any of the parcels within the
project. No buildings or structures of any kind shall be permitted on any parcel within the project
unless first submitted to and approved in advance by the Architectural Control Committee.
(d) All fuel tanks or similar storage receptacles shall be prohibited from being
exposed to view, and any such receptacles may only be installed within the main building, within
a permitted accessory building, within a screened area, or buried underground. Provided, the
Declarant shall be permitted to erect, place or permit the placement of tanks, equipment or other
apparati within the project for uses related to the provision of sewage, water, pool, stormwater and
similar utilities and uses within the project.
I

(e) Clothes lines, radio and television antennas and similar communication
devices are prohibited.. Nothing herein shall reauire the approval of television satellite dishes not
exceeding eighteen (18) inches in diameter so long as the same are installed at such location or
screened from view so that the same are not visible from the street or adjoining parcels.
Section 4. Minimum Building Requirements for General PUD Uses.
(a) No building shall be erected or allowed to remain on any parcel in said prof ect
unless the same shall meet the front, side, and rear setbacks of the Town of Beaufort Zoning and
Building Ordinances, or a minimum front setback of 25 feet, a rear setback of 30 feet, and a side
setback of 8 feet, for single family residential uses, whichever is greatest.
(b) The exterior of all structures shall be completed within twelve (12) months
after construction is commenced, except under such circumstances where such completion is
impossible or would result in great hardship to the Owner or builder due to strikes, fires, national
emergency or natural calamities. No building may be occupied or used unless it has been built
substantially in accordance with the approved plans and specifications as approved by the Committee
and a certificate of completion has been issued by the appropriate governmental inspector.
(c) Each parcel owner shall provide receptacles for garbage and trash in a
screened area not generally visible from the street or common areas on which the parcel fronts or
adjoining parcels. The pickup of garbage, trash and refuse shall be in accordance with Town of
Beaufort rules and regulations. All fuel tanks shall be enclosed within a fence, wall or plant screen
so that the same shall not be visible from the street or adjoining parcels, or the fuel tank shall be
placed underground.
9

(d) Each parcel owner shall provide sufficient parking spaces in accordance with
the Town of Beaufort Zoning and Building Regulation Ordinances on the parcel and off the street
prior to the use and occupancy of any building constructed on the parcel.
(e) With regard to streets as well as other stormwater ditches or swales along any
parking areas, property perimeters, or other locations, each parcel owner shall be required to install
a culvert and driveway over the swales or stormwater ditching for continuous flow of stormwater.
Parcel owners shall be required to design and complete landscaping and construction on their lots
and structures so that stormwater runs off from their lots through the swales and drainage easements
shown on the recorded plats and flows into and is stored in swales, ditches or stormwater facilities
which are part of the PUD. No parcel owner shall fill in or alter any drainage system ditches or
swales of the project without the written approval of the Declarant.
(f) No fencing shall be erected, placed or allowed to remain on any portions of
the project unless the location, type of screening, screening design and other particulars are first
submitted to and approved by the Architectural Control Committee. The Architectural Control
Committee is authorized to permit decorative fencing or screening for landscaping, courtyard or
similar decorative purposes, or to screen the perimeter of the project from adjoining highways or
properties. Metal and wire fencing is prohibited on any lot or portion thereof except for wrought iron
fencing or as approved by the Architectural Control Committee.
Section 5. Nuisances, Inoperable Vehicles Etc
(a) No unserviceable motor vehicles, appliances or other assorted junk and useless
materials may be kept on any parcel. All parcels shall be maintained free and clear of rubbish and
debris.
10

(b) No noxious or offensive activity shall be carried on upon any parcel, nor shall
anything be done thereon tending to cause embarrassment, discomfort, annoyance or a nuisance to
adjoining parcel owners or the businesses being conducted thereon. Horses, fowl, livestock or other
animals are prohibited on any lot except that a lot owner actually residing upon the lot may keep pets
which are customarily domesticated, tame and considered house pets such as dogs, cats and birds,
so long as the type, nature or number of pets due to excessive ferociousness or barking do not
constitute a nuisance or unreasonable annoyance to adjoining property owners. The Association shall
have the authority to prohibit, remove or restrict pets which are in violation of these provisions.
(c) All buildings, structures and their appurtenances shall be maintained in a
reasonable state of repair. In the event of damage to a building or other structure by fire or other
casualty, the exterior of a building or structure shall be repaired within six (6) months or the building
structure shall be demolished and the premises cleared of debris within six (6) months of the date
the damage occurred.
Section 6. Signs. All signage shall be in accordance with the Town of Beaufort Signage and
Zoning Regulations. All signage for all uses and buildings on any parcel within Palmetto Plantation
shall first be submitted to and approved by the Declarant or the Architectural Control Committee.
The Declarant retains the right to prescribe the style, texture, size and design of all signage. A
property identification sign not exceeding 2 quare feet and "for sale" or "forrent" signs not exceeding
6 square feet in size each shall be allowed and nothing herein shall prohibit Declarant from erecting,
placing or maintaining such signs as deemed appropriate by the Declarant in marketing and
identifying lots and houses within Phase V.
Section 7. Mailboxes. Each parcel's proposed use of mailboxes and newspaper receptacles
shall first be submitted to and approved by the Architectural Control Committee. For each parcel
11

having more than one single family use thereon and requiring three or more mailboxes, one central
location together with uniformity of design and configuration shall be used, subject to guidelines and
design format approved by the Declarant or Architectural Review Committee.
Section 8. Sub_ dividing. Except as to any parcel still owned by the Declarant, no parcel shall
be further subdivided, or its boundary lines changed, except with the prior written consent of the
Declarant. Likewise, no parcel shall be used as a street, road, lane, way or easement over which
access may be obtained from another parcel within the project to adjacent properties without the
specific written consent ofthe Declarant. In the event the Declarant hereafter determines it necessary
to alter or change any boundary lines of a parcel, then a revised plat of said projector section thereof
subject to the alteration or change shall be recorded, and all such parcels thereon shall be subject to
the terms and conditions of these covenants.
Section 9. Restrictions on Built -Up Area. In order to comply with the rules and regulations
of the North Carolina Department of Environment and Natural Resources, Division of Water
Quality, and other state agencies with regard to stormwater runoff, each Owner of a parcel shall be
restricted to clearing, constructing and using as "built -upon" area not more than the square footage
or percentage per lot or parcel as set forth herein or in subsequent amendments bringing additional
properties hereunder , inclusive of that portion of the right of way between the front lot line and the
edge of the pavement, structures, walkways of brick, stone, slate, and coquina, but excluding
uncovered wood decking or the water surface of swimming pools. 'Built -upon Area" is defined as
that portion of a residential lot that is covered with impervious or partially pervious cover including
buildings, pavement, recreational facilities, etc., but not including decking.
The restrictions upon the built -upon area for the lots in Phase 1 are set forth on the chart attached
hereto as exhibit A and incorporated herein by reference. The State ofNorth Carolina and the Town

of Beaufort are hereby designated as a third party beneficiary to the provisions regarding Built -upon
Areas with the power to enforce the same through proceedings in law or in equity.
This covenant may not be changed or deleted without the consent of the State of North Carolina.
However, Declarant reserves the right to amend these covenants to specifically list and set out any
impervious area restrictions in order to comply with State of North Carolina and specifically
Division of Stormwater requirements.
Section 10. Filling of Drainage Features and Compliance with Environmental Regulations.
No owner may fill in or pipe any roadside or parcel -line swale, except as necessary to provide a
minimum driveway crossing. No one may pipe, fill in or alter any parcel line swales used to meet
North Carolina Stormwater Management permit requirements. Each parcel owner is required to
maintain at all times in a manner consistent with all State and Federal regulations, that portion of any
ditching, drainage facilities, or stormwater system within the parcel lines of the owner's parcel as
shown on any recorded plats of properties or lots within Palmetto Plantation PUD.
The owner of a parcel shall be prohibited from altering any of the drainage features or
Portions of the drainage plan as shown on the approved drainage plan for the project except with the
prior written approval of the Declarant as well as the Division of Water Quality, State of North
Carolina. Each owner of a lot in fertilizing or spraying for landscaping and gardening purposes shall
use liquid solution to curb chemical and petroleum ranoffdirectly or indirectly into drainage ditches
or nearby stormwater ponds or waters.
11. Specific Use Restrictions for Phase 1 Iots. The following restrictions shall in additional
to the general restrictions set forth above be applicable to lots in Phase 1, Section 1:
13
a-GCA-K' ZL� I _Y

(A) All numbered lots shall be used for single family residential purposes only. No structures
shall be constructed, altered, placed or permitted to remain on any lot in Phase 1, Section 1 unless
the same is a single family residence.
(B)Minimu n Building Requirements for Homes in Phase 1. No residential structure shall be
constructed on any of the lots in Phase 1, Section 1 unless it shall contain a minimum of 1100 square
feet of enclosed dwelling area for each residential structure. For any dwelling containing more than
a single story, (a) a one and one half story house must contain a minimum of 1100 square feet with
700 square feet on the first floor; and a two story dwelling must contain a minimum of 1100 square
feet with a minimum of 550 square feet on the first floor. "Enclosed dwelling area" shall mean the
total enclosed heated area within a dwelling, excluding garages, terraces, decks, unenclosed porches
and similar areas. In the event Declarant specifies a higher minimum square footage of enclosed
dwelling are in deeds to purchasers of lots within Phase 1 than as set forth in this paragraph, then the
higher minimum square footage figure set out in the deed shall be controlling and shall be complied
with.
(C) Within Phase 1, Section 1 no building shall be erected or allowed to remain on any lot
within 25 feet of the street abutting the front of each lot, or within 8 feet of any side line of each lot,
within 10 feet of any side street, or within 30 feet of the rear lot line, or as said setbacks may be
shown on the recorded plat of Phase 1, whichever is the greater setback. Upon written application,
the Architectural Control Committee is authorized to vary the setbacks the minimum amount
necessary in order to provide for a suitable and aesthetically pleasing structure on the subject lot if
due to topography, irregular lot shape or similar factors directly related to other lots within Phase 1,
the setbacks herein would create a hardship or burden on the Owner. Nothing herein shall relieve
14
•. �eRnleGRe 0 M _ .... . rr_ �f!'�... d.--.t�..:ti�

a lot owner from securing any necessary approvals from the Town of Beaufort as to the use or
variance of setbacks required under the Town's zoning or subdivision ordinances.
D. Each lot owner shall provide space for parking two automobiles off the street prior to
occupancy of any dwelling constructed on said lot and automobiles shall not be parked on the , ets
within Phase V.
E. Each lot owner shall be permitted to build, erect or maintain a detached garage and one
additional detached structure to be used as an outside storage unit, gazebo or similar accessory
building to the main residential structure but the same shall not exceed one and one half stories in
height, shall not be used for any activity normally conducted as a business, and shall be located in
accordance with the setback requirements of these Covenants and the zoning setbacks of the Town
of Beaufort. All detached buildings shall be prohibited from being constructed prior to the
construction of the main dwelling and shall be of the same quality and type of materials and so
designed as to be compatible with the main dwelling house. All detached buildings shall be located
no closer to the street on which the lot fronts than the main dwelling located thereon.
F. All drivevrays leading from the roads within Phase 1 to the dwelling and/or structure
located on the lots shall be paved with concrete, paving brick or other materials as approved by the
Architectural Control Committee, and the paving of driveways with marl or gravel is prohibited
unless first approved in writing by the Committee.
G. Campers, recreational vehicles or commercial trucks shall be parked either in a garage or
accessory building or in the side or rear yard behind appropriate vegetation or screening as approved
by the Architectural Control Committee.
15
nml( A` 13 PACIF

H. The only permitted access to each lot from the roads within Phase 1 shall be over the
driveway constructed to the road or street, and no owner shall fill in or alter any of the drainage
system, ditches or swales of the Subdivision without the prior written approval of the Declarant.
IV - STREETS EASEMENTS AND STORMWATER
SYSTEM FEATURES AND R%APROVEMENTS
A. Streets. The four streets and accesses off Professional Park Drive into Phase 1 are
known as Calhoun, Rutledge, Tradd and Franklin Streets as shown on the recorded plat. Declarant
reserves unto itself a perpetual, alienable and releaseable easement and right-of-way on and over
said streets to and from US Highway 70 for continued access to any portions of Phase 1. The streets
upon the recordation of the plat for Phase 1 shall be deemed to be dedicated for public use to the
Town of Beaufort and it shall be the responsibility of the Master Owners Association to provide for
the maintenance and upkeep of the streets through dues and assessments until such time as
maintenance of the streets has been accepted by the Town. The Declarant and then the Association
shall have the authority to establish, adopt and enforce annually a budget for all costs associated
with the maintenance, upkeep, operation, replacement and related costs associated with the streets
and roads, and the Master Association shall further have the authority to assess the costs related to
the same among and between the various tracts or parcels brought under these Covenants as part of
the Palmetto Plantation PUD project, based upon the size each phase, lot, tract or parcel bears to the
total area or size of the project as set forth in Paragraph G hereafter. Each owner, developer, and
townhome or condominium association to which costs of maintenance, repair or operation are
charged, shall have the continuing obligation to pay the same, and the Master Association upon
default as to payment of the same, shall have the right to file liens and to foreclose the same for non-
payment for the assessments and charges.
16

B. Utility Easements. The Declarant reserves unto itself a perpetual, alienable and
releaseable easement and right-of-way on, over, under, through and upon the ground with men and
equipment to erect, maintain, inspect, repair and use electrical and telephone poles, wires, cables,
conduits, sewers, water mains, pipes and other suitable equipment for the conveyance and use of
electricity, telephone equipment, television, gas, sewage, water and community utilities or
conveniences as shown on the recorded plats and in and over the following areas:
With regard to each lot, tract or parcel hereafter sold and split out from the
Project property, in and over the front 10 feet of each parcel, 8 feet along each sideline of each
parcel, and along the rear 10 feet of each parcel;
2. Along the 10 foot. strip bordering and abutting the perimeters of the PUD
project as shown on plats to be recorded hereafter.
3. 10 feet on each side of the 4 streets within Phase 1;
Declarant further reserves the right to cut drainways for surface water within the utility
easement areas reserved herein whenever action may appear to the Declarant to be necessary in order
to maintain reasonable standards of health, safety and appearance. The easements reserved herein
include the right to cut trees, bushes or shrubbery, to grade soils, or to take similar actions reasonably
necessary to provide economical and safe utility installation and to maintain reasonable standards
of health, safety and appearance. The Declarant further reserves the right to assign said easements
to one or more public or private utility companies for utility services to each parcel within the project
properties in the future.
C. Street Lighting. Declarant reserves the right to subj ect the real property in this proj ect
to a contract with Town of Beaufort, Progress Energy or such other utility companies furnishing
electrical services for the installation of underground electrical cables.

D. Drainaae and Stormwater Easements and Facilities.
1. Rights Reserved. Declarant reserves unto itself a perpetual, alienable, and releaseable easement
and right-of-way for stormwater collection and drainage purposes over those swales, ditches, pipes,
drainage easements, sediment traps, catch basin areas, stormwater retention pond, other portions
of the stormwater and sedimentation control as shown on the plans and plats for Phase 1 recorded
as referenced above. These easements are reserved for the collection, storage and movement of
stormwater and surface waters within areas of Phase 1 and other tracts, lots and uses within the
Project. Declarant reserves the continuing right to maintain, widen, replace, reconstruct, or modify
all such stormwater and sedimentation easements and areas, and further reserves the right to transfer
and assign all such easements to the Palmetto Plantation Master Association, Inc. for further
maintenance, repair, replacement and management of the stormwater easement areas and system.
The cost of such maintenance, repair and replacement shall again be provided for by the Master
Association and the costs assessed between and among the various parcels of the project in
accordance with Paragraph G thereafter.
2. Private Dedication of Retention Pond Easements and Facilities. Declarant has caused to
be dedicated for the benefit of lots, units and parcels within Palmetto Plantation PUD a stormwater
detention pond as shown on the recorded plat for Phase 1. The pond is for the collection, storage
and discharge under Town of Beaufort and State of North Carolina rules and regulations of surface
stormwater from areas of Phase 1, future additions to the Palmetto Plantation PUD Project and from
lots and homes located on Meeting Street within Phase I of Olde Beaufort Village Subdivision as
the same is shown on a plat recorded in Male Book 29, page 850, Carteret County Registry.
Declarant reserves the right to construct in the future one or more additional ponds, canals or similar
facilities for the storage, collection and discharge of surface stormwater from other parcels, lots and
1188,RnGK�
V PAGE �q�.C.tficvab:.Y'4T'.'1ntYd'

units within the Palmetto Plantation PUD, and to cause the same to be brought under the
management and control of the Palmetto Plantation Master Association, Inc. for future upkeep and
maintenance.
Declarant proposes to convey all drainage easements and stormwater detention pond areas as
shown on recorded plats and as described herein, to the Palmetto Plantation Master Association, Inc.,
as part of the common areas of Palmetto Plantation PUD. Said pond areas may also be used for open
space and recreational uses by owners of lots and units within the Palmetto Place PUD subject to the
authority of the Master Association to adopt and enforce rules and regulations concerning access to
and the use and enjoyment of the same by owners of property and lots within the Project.
3. Management of pumping Station Pond and Stormwater Facilities. It shall be the
affirmative obligation of the Declarant and then the Master Association at such time as the drainage
easements, pond and facilities are transferred to the Master Association, to own, maintain and
manage the pond, easements and drainage facilities in accordance with the requirements of the North
Carolina Department of Environment and Natural Resources(herein"NCDENR:), and the Town of
Beaufort under conditions of final subdivision approval, including stormwater permits issued in
conjunction therewith.
It shall be the obligation of the Declarant and then the Master Association upon transfer of the
pond and easements to Association, to install, maintain, operate and replace as necessary an
engineered electrical operated pump, pumping station, control panel, back up generator in the event
of electrical failure, and other necessary equipment and facilities, which are designed to receive,
control the flow and height of surface stormwater, and to circulate and discharge surface waters
flowing from Meeting Street properties, Phase 1 of this Project and additional properties as Phases
and tracts are brought under these Covenants, into the retention pond and then released at controlled
19
8 lA 13 PACE

intervals into adjoining or nearby drainage ditches downstream from the Project and Meeting Street
for either eventual runoff or elimination. The pumping station will be operated in such manner that
surface waters stored in the pond will be continually discharged and pumped down into adjoining
or nearby drainage ditches for transportation off site and downstream, so that there will be excess
storage within the pond in advance and during significant storm events such as major rainstorms,
hurricanes, and tropical storms, so as to receive and store surface waters from Meeting Street, Phase
1 lots and other parcels brought under these Covenants.
The Declarant and then the Master Association shall reasonably in advance of the arrival of
significant storm events either automatically( or manually if so required) activate the pumping
system for the pond so as to provide excess storage for surface stormwater from Meeting Street and
areas serviced by the Pond.
Declarant and the Master Association shall at all times provide the operation and maintenance
necessaryto assure that the permitted retentionpond(s), easements, facilities and equipment function
at reasonable efficiency, and that the approved operation and maintenance plan are followed in their
entirety, and that maintenance occurs at the scheduled intervals ,including but not limited to:
Semi-annual Scheduled inspections every six months
Sediment removal
Mowing and revegetation of side slopes
immediate repair of eroded areas
maintenance of side slopes in accordance with approved plans and specifications
debris removal and unclogging of outlet structures, orifice devices and catch basins and piping
availability of access to the outlet structures at all times
testing and starting of generator as backup to electrical power
20

periodic maintenance of pumping station as required by specifications
periodic draw down or pumping down of pond depth to maintain storage capacity
It shall be the responsibility of the Declarant and then the Association to maintain current
records of maintenance activities so that the same are available upon request to authorized personnel
of the North Carolina Division of Water Quality and/or the Town of Beaufort, which records are to
show the date, activity, names of persons performing work, and all such actions taken. It shall
further be the responsibility of the Declarant and then the Association to provide through its annual
budget such revenues and fiords for the maintenance, operation, upkeep and reconstruction of the
stormwater retention pond(s) and stormwater system for the Project.
4. Prohibition Against Blocking of Drainage Easements. Each tract or parcel owner hereafter
shall be obligated to keep free and clear any and all drainage easements shown on the recorded plats,
and each owner as well as each owner's tenants, guests and invitees, shall be prohibited from
obstructing, blocking or i npeding the flow of surface waters through said stormwater and drainage
easements, and in the event any such easements are obstructed or blocked so as to impede the flow
of water, then the Declarant, Master Association, or other owners of the project property shall have
the right to clear said drainage easements and to recover from the party responsible the cost of
clearing of such obstruction or blockage as a result of such deliberate acts or negligence of the
responsible party.
E. Proi ect Identification Signs and Entrance Areas. The Declarant reserves the right to
place signs, fencing, brick or stucco walls, shrubs or other appropriate structures identifying the
various sites, townhome and/or condominium projects and uses within the Project. The Declarant
further reserves a continuing easement for access to and from said signs or entrance area features
so as to repair, maintain, replace or reconstruct said signs or landscaping features.

F. Shared Costs and Responsibility for Common Expense Relating to Streets
Stormwater Easements and Utility Easements. Declarant first and then the Master Association to
which the stormwater detention pond, easements and facilities have been assigned and transferred,
shall establish, adopt and enforce annually a separate budget which includes and provides for all
costs associated with the maintenance, upkeep, operation, utilities and related costs associated with
the Project's drainage and stormwater facilities, easements and retention ponds, upkeep and
maintenance of streets and utility easements, costs of engineering, utilities associated therewith,
insurance, professional fees and the like. Said budget shall reflect all costs associated with or related
to the maintenance, upkeep, operation and management of the stormwater retention pond, drainage
equipment, easements and facilities, maintenance and upkeep of the streets and, utility easements,
and the costs associated with upkeep and maintenance of the pond as a recreational facility and open
space, including but not limited to engineering fees, repair costs, utilities, insurance, costs of
contractors or third parties, mowing, maintenance, capital reserves, projected costs of replacement,
professional fees, etc. Annually the Declarant and then the Master Association shall prepare a
budget as to the expenses associated with its management responsibilities and shall forward a copy
to all property and lot owners responsible for portions of such budget under the terms of these
Covenants, for review and input a minium of 30 days before final adoption by either the Declarant
or responsible Association. Following the opportunity for review by each parcel or lot owner and
input arising therefrom, the Declarant or Master Association shall then adopt a final budget setting
forth the common expenses related to the stormwater ponds, easements, roads .utilities and other
items for which the Association or Declarant has the duty to maintain and provide for. Upon such
adoption each lot, unit owner or parcel owner then subject to the terms of these Covenants shall be
required to pay his or their prorata portion of the common expenses, upkeep and maintenance,
based upon the size each lot, parcel or tract bears to the total area or size of the Parcels then under

these Covenants(herein PUD project). Phase 1 contains 22.8146 acres and 48 individual lots and
until additional parcels are added to this PUD project, the common expenses shall be paid entirely
by Phase 1 lots so that each lot owner would be responsible for paying 1/48th of the common
expenses reflected by the budget.
As additional parcels are added to this PUD project by amendment to this Declaration thereby
bringing said additional tract under the terms hereof, the Amendment adding the additional parcel
shall specify the acreage of the new parcel and then re -compute the total acreage under the PUD
project, setting out the new prorated portion of the common expenses to be paid by each lot, parcel
or condominium project then under these Covenants.
It shall be the responsibility of the Declarant initially and then the Master Association to
determine the dues and assessments to be paid by each lot, parcel or unit owner based upon the
guidelines set forth, and to then bill the same to each individual owner. It is the intent that as parcels
are added as additional properties hereunder, that the prorated portion of the common expenses be
determined based upon the percentage that new parcel then bears to the total acreage then under
these PTJD Covenants, and that the percentage so determined for the new parcel be used to determine
the new parcel's portion of the annual common expenses which will then be divided among and
between the new lots or units(if the new parcel is a condominium project). For example if a
condominium project is next added or annexed after Phase 1 herewith having 10 total acres, the
total PUD acreage at that point following the amendment would be 32.8146 acres, Phase 1 would
then be responsible for 69.5255 % of the common expenses which would be divided between the
48 lots in Phase 1. The new condominium project consisting of 10 acres would be responsible for
30.4745 % which would then be allotted by and between the owners of units in accordance with the

Declaration of Unit Ownership for the Condominium to the same extent that the expenses of the
Condominium are determined.
Each purchaser and owner of a lot, parcel or unit with the Palmetto Plantation Pud hereby
consents to amendments to these Covenants by recordation of a deed, and does hereby
irrevocably appoint Declarant as his attorney in fact with regard to future amendments adding
properties to this PUD project and reconfiguring the percentage or responsibility for common
expenses in accordance with these guidelines.
The Declarant and then the Master Association shall have the ultimate responsibility for
assessing each owner of a tract or parcel within the project using the guidelines set forth herein, and
the assessments of the common expenses as determined by the Declarant and/or the Master
Association shall be binding upon all owners of parcels within the project hereafter.
G. Failure to Pay Prorata Share of the Common Expenses, Creation of Lien. Each owner
of a tractor parcel within the Project shall be required to pay his pro -rats share of the annualbudget
as adopted by the Declarant or the Master Association for the common expenses as required by these
Covenants, and the Declarant or the Master Association shall provide that each parcel owner shall
pay its pro-rata share through monthly, quarterly, or semi-annual payments. In the event any owner
of a tract or parcel should fail to pay its share of the common expenses in a timely fashion, then the
Declarant or the Association following ten (10) days written notice and failure to thereafter cure said
default, shall have the right to file a lien against the parcel owner and such parcel, which lien may
be enforced in accordance with Chapters 44, 44A and 47F of the North Carolina General Statute,
including the right of the Declarant or the Master Association, or its assignee, to foreclose the lien
for non-payment of the common expenses. Upon default by any parcel or tract owner, then the
amount in default together with interest at 18%Per annum, and the Declarant or Master Association's
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8001K.Z"' /3 PAGE

costs and reasonable attorneys fee, may be collected, by either including the same in any lien filed
against the parcel and parcel owner, or in a lawsuit filed in the appropriate division of the General
Court of Justice in Carteret County, North Carolina. The Declarant, Master Association, or its
Assignee is authorized to file in the Office of the Clerk of Superior Court an instrument suitable for
recordation which shall set forth the name of the record owner of each parcel, the parcel description,
the amount of the common expenses owed, the date the common expenses were due, the fact that
the parcel owner has failed to pay said expenses, and the amount of the common expenses, costs and
attorney's fees claimed. Following the recordation of the lien, the Declarant, Master Association or
its Assignee is authorized to institute an appropriate action in the Court having jurisdiction over the
subject matter and the parties, in order to collect the common expenses, interests, costs and attorneys
fees, and to effect a sale of the parcel to satisfy the lien for the delinquent common expenses.
H. Use of Common Expenses Collected. All sums collected by the Declarant, responsible
Association or its Assignee for common expenses pursuant to the separate common expenses budged
budget shall be used exclusively for the purpose of maintaining, operating, managing, and
administering the stxeets, utility systems and equipment, and stormwater easements and facilities,
insurance, upkeep, maintenance and replacement of said facilities and equipment associated
therewith, replacement or reconstruction costs, capital reserves, costs of manpower, utilities,
contracting, and professional fees, and other expenses as maybe determined appropriate or necessary
by the Declarant, Master Association, or their Assignee, using good business practices.
I. Easements of Enj oyment. Every owner of an parcel within the Proj ect as well as their
agents, employees, invitees and guests, shall have the right and easement of enjoyment in and to the
streets and roads, the right to connect to and use all drainage easements, ditching, swales and other
drainage system features, for the purpose of transporting and diverting all stormwater and surface

water runoff to the various stormwater easement areas, retention pond and facilities as shown on the
recorded plats..
ARTICLE V - COVENANTS RUN WITH THE LAND
These Covenants and Restrictions shall run with the project and inure to the benefit of the
parcel owners for a term of twenty-five (25) years from the date these Covenants are recorded.
Thereafter, said Covenants shall be automatically renewed and extended for successive periods of
ten (10) years each. These Covenants and Restrictions may be amended by an instrument executed
by parcel owners who collectively are responsible for the payment of not less than 66 2/3's percent
of the common expenses of the streets, utility systems and stormwater easements and drainage
system in accordance with Article IV, Paragraph G. Until such time as all of the parcels have been
sold by the Declarant, Declarant reserves the right to amend these restrictions as a matter of right and
such amendments shall be binding on all parcel owners thereto and all future purchasers on and after
the recordation of the amendments. No amendment adopted hereafter shall have the effect ofmaking
a building, structure or architectural plan non -conforming if the same has been originally approved
by the Architectural Control Committee_ Notwithstanding the forgoing, no amendment affecting
the existence and operation of the Retention Pond, the Pumping Station and all appurtenances and
easements connected therewith, as provided in Article IV, Section D, Subsections 2 and 3, may be
adopted without the written consent of the Town of Beaufort.
ARTICLE VI - VIOLATIONS
In the event of a violation or breach of any of these Covenants by any parcel owner or other
person, the Declarant, or any one or more Owners of parcels in the project, or any of them jointly or
severally, shall have the right to proceed at law or in equity to compel compliance with the terms and
conditions set forth herein, and to prevent the violation or breach of these covenants, and to recover
26
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o
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damages as compensation for a breach or violation of these covenants. Any failure to enforce any
right, reservation, or conditions contained in these covenants, however long continued, shall not be
deemed a waiver of the right to do so hereafter as to the same breach, or as to a breach occurring
prior or subsequent thereto, and shall not bar or affect its enforcement.
ARTICLE VII- INVALIDATION
The invalidation by a Court or otherpublic agency of any ofthe provisions ofthese covenants
shall not in any way affect any of the remaining provisions, and the same shall remain in full force
and effect.
ARTICLE VII - BINDING EFFECT
These Covenants and Restrictions shall be binding on the Declarant, each parcel owner, any
Association hereafter formed for the purposes set forth herein, as well as the heirs, successors in
interest and assigns, of the named parties herein.
ARTICLE VIII-COMMON AREA PROPERTY RIGHTS.
The Project common areas initially with the recordation of Phase 1 will consist of retention pond
which will also be a recreational and open space area for the owners with the Project. Declarant
reserves the right to dedicate privately additional areas within future phases or additions thereto. The
open space will have as its purpose recreational uses such as fishing, rowing and exercising around
the perimeter, and stormwater retention for the Project. Declarant reserves the right to transfer the
open space or common area to the Town of Beaufort for future ownership, control and management
if so accepted by the Town..
ARTICLE IX- DUES TO PALMETTO PLANTATION
MASTER ASSOCIATION INC.
Section 1 - Covenants for Dues and Assessments
. .13 P a
27

A. Monthly Assessments for Common Expenses. For each lot owned within Palmetto
Plantation PUD, each owner covenants and agrees, and each subsequent owner of any such lot
covenants and agrees, that by acceptance of a deed therefor whether or not it is so expressed in such
deed, that the owner will pay to the Master Association the assessments and charges provided for
in this Declaration.
B. Every owner of a lot in the Project by the acceptance of a deed to the same, which shall
be conclusively evidenced by the recording of a deed in the office of the Register of Deeds
Covenants and agrees to pay to the Association such annual, quarterly or monthly dues and
assessments for maintenance and upkeep of Association properties, capital improvements and the
construction of improvements and facilities on or to Association properties, and the adnuiustration
of properties and facilities assigned to the Association for operation and management, as may
established from time to time by the Board of Directors and membership of the Association. Such
dues and assessments together with interest at the rate of 1.5 % monthly upon default, cost and
reasonable attorney's fees if the dues and assessments remain unpaid, shall be a continuing lien on
each lot against which said assessment is made until paid in fall. Said dues and assessments shall
also be the personal obligation of the owner of each lot at the time the dues and assessments become
due, and the personal obligation shall not pass to a successor in title unless expressly assumed by the
successor. However, said dues and assessments shall be a lien on said lot and a sale or transfer of any
lot shall not affect the lien for unpaid dues or special assessments against said lot.
C. The dues and assessments shall be used exclusively for the purpose of maintaining and
improving Subdivision roads, drainage ditches, easements, retention ponds and facilities, the
maintenance and upkeep of Association properties, the construction of improvements and facilities
thereon, the upkeep, maintenance, operation and management of properties or facilities leased to or
28 F
ImevW p

assigned to the Association in accordance with these Covenants, as well as the upkeep, maintenance
and replacement of equipment, improvements in facilities thereon, and generally for the promotion
of the recreational, health, safety and welfare of the membership. Additionally, the dues and
assessments may be used for acquiring all types of property, casualty and liability insurance for the
Association, and the dues and assessments may be used to fund any of the activities, powers and
authority of the Association as the Association is authorized to do as a non-profit owners'
association.
D. The Declarant shall have the obligation to pay dues and assessments for unsold lots
within Phases brought under these Covenants in order to advance sums and expenses and to
supplement the Association budget with regard to shortfalls of revenues as may be necessary. As
a lot is sold in the Project, the Declarant shall collect from each purchaser two months assessments
and dues as working capital which shall be paid to the Association, and the Declarant shall notify
the Association as to the name and address of each purchaser. The obligation to pay dues shall
commence as to all members purchasing lots on the date the deed to the lot from the Declarant shall
be recorded.
Section 2. Maximum Monthly or Annual Assessments. The Association Board of Directors
is authorized to assess and collect its regular dues and assessments on either a monthly, quarterly,
semi-annual, or annual basis. Until January 1 of the year immediately following the conveyance of
the first lot to an owner, the maximum annual assessments shall be $600.00 per lot, per year pending
further notification from the Association.
(a) From and after January 1 ofthe year immediately following the conveyance of the
first lot to an owner, the maximum annual assessment may be increased each year not more than ten
1001K.LaZ

(10%) percent above the maximum assessment for the previous year without a vote of the regular
membership.
(b) From and after January 1 of the year immediately following the conveyance of the
first lot to an owner, the maximum annual assessment maybe increased above ten (10%) percent by
a majority vote of the regular members of the Association who are voting either in person or by
proxy, at a meeting duly called for said purpose.
(c) The Board ofDirectors may fix the annual assessment at an amount not in excess
of the maximum.
Section 3. Special Assessments for Capital Improvements or Extraordinary Expenditures.
In addition to the regular annual assessments authorized in paragraph 2 above, the Association may
levy, in any assessment year, one or more special assessments applicable to that year for the purpose
of defraying, in _whole or in part, the cost of any construction, reconstruction, repair or replacement
of capital improvements upon the common areas, or property or facilities assigned to the Association
for operation and acUninistration, including equipment, fixtures and personal propertyrelated thereto,
as well as for the purpose of defraying, in villole or in part, any extraordinary cxpenses resulting from
storms, casualties or similar expenses resulting from extraordinary circumstances beyond the control
of the Board of Directors, provided that each such assessment shall have the assent of owner
members being responsible for payment of not less than fifty one (51%) percent of the common
expenses and budget who are voting in person or by proxy at a meeting duly called for this purpose.
Section 4. Notice and Quorum for any Action Authorized Under Sections 2 and 3 Above
Written notice of any meeting called for the purpose of taldng any action authorized under sections
2 or 3 above shall be sent to all Master Association members not less than ten (10) days nor more
than twenty (20) days in advance of the meeting. At the first such meeting called, the presence of
<.,P 1A 17

members or of proxies responsible for not less than fifty one (51 %) percent of the common expenses
shall constitute a quorum. If the required quorum is not present, another meeting may be called
subject to the same notice requirement, and the required quorum at the subsequent meeting shall be
one-half of the required quorum at the preceding meeting. No such subsequent meeting shall be held
more than thirty days (30) days following the preceding meeting.
Section 5. Non Payment ofAssessments Any member failing to pay the annual assessments and dues
or any fees or charges authorized by the Association within a period of thirty (30) days after the billing
thereof, shall be deemed to be in default. The Board of Directors shall caused to be filed in the Office of the
Clerk of Superior Court or in the office of the Register of Deeds of Carteret County an instrument suitable
for recordation which shall set for the name of the owner, the lot description, the amount of the assessment,
the date the assessment was due, and the fact that the Board of Directors has given the owner notice of said
assessment and said owner has failed to pay said assessment. In addition to the assessment so stated, all
amounts necessary for the collection of said assessment, including, but not limited to mailing costs, recording
costs, and a reasonable attorneys fee incurred for the collection thereof, together with interest at the legal rate
of interest, shall constitute a lien against said lot and shall be due and payablc from the delinquent owner.
Following the recordation of said lien, the Board of Directors is authorized to institute an appropriate
action in a court having jurisdiction over the subject matter and the parties in order to collect the assessments,
interest, costs and attorney's fees from the owners and in order to effect a sale of the property to satisfy the
lien for the delinquent assessments and expenses.
Section 6. Sabordination of the Lien to Mortgages. The lien of the assessments provided for herein
shall be subordinate to the lien of any first mortgage. The sale or transfer of any lot shall riot affect. the
assessment lien. However, the sale or transfer of any lot pursuant to mortgage foreclosure or anyproceedings
in lieu thereof, shall extinguish the lien of such assessments as to payments which became due prior to the
31 ��JJ

sale or transfer. No sale or transfer shall relieve such lot from liability for any assessments thereafter becoming
due or from the lien thereof Likewise, the sale or transfer shall not relieve the lot owner from personal
liability therefrom.
Section 7. Susroension or termination of voting rip -his. In addition to any other rights the Association
may have with regard to non-payment of assessments and dues, the payment of any assessments levied by the
Association shall be a prerequisite to the exercise of any voting rights earlier provided for herein and for
serving on the Board of Directors of the Association. Any member failing to pay the assessments or dues on
his lot so that the same thereafter become delinquent, shall be deemed ineligible to vote at any annual or
special meeting of the membership and shall be deemed ineligible to serve on the Board of Directors or as an
officer of the Association so long as said delinquency continues and in addition thereto, upon such suspension
of voting rights the Board may further terminate or suspend all rights of the member in default to use the
common areas and facilities until the dues and assessments have been made current.
ARTICLE X-CREATION OF PALMETTO PLANTATION
MASTER ASSOCIATION I1,1C.
Declarant has heretofore incorporated Palmetto Plantation Master Association, Inc. for the benefit of lot
owners within the Project so as to provide for the maintenance, upkeep and repair of roads, the maintenance,
upkeep and repair of drainage easements, ponds, amenities, recreational open spaces and common areas which
are the subject to the management and administration of the Association.
Section 1. Membership.
(A.). There shall be both a Regular Membership and an Associate Membership. The Record owner of
the fee interest in any lot, parcel or tract subject to these covenants shall be a regular member. Associate

Memberships shall be allowed up to 25% of the total of the Regular Memberships at such time as all phases
of the PUD have been completed, and Associate Memberships may be offered by the Declarant within the
Master Association to owners of lots, homes, condominium units and other uses which are in proximity to
or adjoined this PUD. While the Board ofDirectors of the Master Association may prescribe reasonable rules
and regulations for Associate Membership and may establish reasonable dues to be paid by Associate
Members, the Master Association, its members and Board of Directors may not adopt any amendments
hereto nor impose any regulations or rules which does away, reduces or impairs the rights of enjoyment of
Associate Members without the written consent of the Declarant or its assignee.
Associate Memberships shall not entitle the holder thereof to vote but shall entitle the Associate Member
to use the recreational facilities, common areas and amenities of the Master Association. Every person or
entity who is a record owner of a fee or undivided interest in any lot, parcel or tract which is subject by these
Covenants to assessments by the Master Association shall be required to be a member of the Master
Association,` subject to and bound by the Association's Articles of Incorporation, By-laws, rules and
regulations. The foregoing is not intended to include persons or entities who hold an interest in any lot
merely as security for the performance of any obligation. Ownership of record of such lot shall be the sole
qualification for membership and when any lot is owned of record in tenancy by the entireties, joint tenant
or tenancy in common, or by other legal forms of multiple ownership, the membership(including the voting
power therefrom) shall be exercised only as set out in section 2 below.
B. During any period when a member shall be in default in the payment of any periodic assessment levied
by the Association, the voting rights and right to the use of the common areas or other facilities which the
Association may provide, maybe suspended by the Board of Directors of the Association until such
assessment is paid. In the event of violation by a member of any rules and regulations established by the
Board of Directors, such member's voting and use rights may be suspended after a hearing at which the
33

general requirements of due process have been observed. Such hearing shall only be held by the Association
Board of Directors or a committee thereof after giving the member 10 days prior written notice specifying the
alleged violation and setting the time and place of the meeting. Determination of the violation shall
be made by majority vote of the Board or committee thereof.
C. No membership fee shall be charged nor members be required to pay at any time any amount to carry
on the business of the Association except to pay when due the charges, assessments and special assessments
levied upon each member's lot as specified in the Declaration or as the members of the Association may from
time to time approve and adopt.
Section 2. Voting and Voting Rights.
(A) The voting rights of the membership shall be appurtenant to the ownership of lots within the PUD
Project. Ownership of each lot by aperson shall entitle its owner to a vote represented by that lot's percentage
of responsibility for payment of common expenses calculated in accordance with Article IV(F) above.
The Association shall only have one class of voting membership which shall be a "regular membership"
The Declarant shall likewise have a vote for each unsold lot represented by each unsold lot's percentage of
responsibility for payment of common expenses calculated in accordance with Article 11"(F) above.
B. When two or more persons hold an interest(other than a leasehold or security interest) in any lot, all
such persons shall be members but the vote for such lot shall be exercised by one or such persons as proxy
and nominee for all persons holding an interest in the lot, and in no event shall more than one vote be cast
with respect to any lot nor shall any fractional vote be cast.
C. Any member who is delinquent in the payment of any charges duly levied by the Association against
any lot owned by such member shall not be entitled to vote until all such charges, together with such
reasonable penalties as the Board of Directors may impose, have been paid.

D. Members shall vote in person or by proxy executed in writing by the Member. No proxy shall be valid
after 11 months from its date of execution and the proxy shall likewise terminate upon transfer or
conveyance of the lot. A corporate member's lot shall be cast by the president of the member corporation
or by any other officer or proxy appointed by the president or Board of Directors of the Corporation,
which is required to be in writing.
E. Associate Memberships shall not entitle the Associate Member to any voting privileges. The Board of
Directors of the Association may suspend or terminate the rights of any Associate Member to the use of the
common areas, recreational facilities and amenities during such time that an Associate Member is in default
for non payment of dues or Membership fees or for violations of Master Association rules and regulations.
Voting on all matters except the election of directors shall be by voice vote or by show of hands unless a
majority of members present at the meeting shall, prior to voting on any matter, demand a ballot vote on that
particular matter. Where directors or officers are to be elected by the members, the solicitation of proxies for
such elections may be conducted by mail.
ARTICLE XI - Initial By -Laws and Rules and Reguulations of
Palmetto Plantation Master Association Inc.
The initial by-laws adopted by the Board of Directors of said Association are set forth on appendix
B attached hereto and incorporated by reference. All owners of lots and the guests, families and invitees of
regular members, shall be bound by and fully comply with the by-laws of said Association as well as the
Articles of Incorporation of said Association attached as exhibit C. The Association shall have the authority
to adopt amendments to the by-laws governing the business and affairs of the Association from time to time
in the manner and procedures prescribed by the by-laws and Articles of Incorporation attached as exhibits
35

hereto. The by-laws set forth the organization of the Board of Directors and officers, the time and manner of
meetings of the Association, quorum and voting procedures, and other rights, powers, responsibilities, duties
and obligations of the officers, directors and members of the Association.
The Association shall further have the authority to adopt from time to time rules and regulations
regarding the duties and responsibilities of the Association and its individual members with regard to the use,
enjoyment, maintenance, ownership, upkeep and maintenance of Association properties and the purposes of
the Association.
In witness whereof, the Declarant has executed this instrument on the day and year first above written.
MERCER BUILDING COMPANY
By:
President
36

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
I, a Notary Public, in and for said County and State, do hereby certify that
Gary A. Mercer. President of Mercer Building Compaqy a North Carolina Corporation, personally
appeared before me this day in the capacity as President of said corporation, and acknowledged the due
execution of the foregoing and annexed instrument for the purposes therein expressed for and on behalf of
Mercer Building Company pursuant to authority duly given.
hand and official seal or stamp this the
4A
Notary
r
public
My co�expires: 4 - l I
Lk -A' - SKA96VE
Notary Public
Prepared by: Richard 1. Sta,".ley, Attorney at Law, P.O, Box950,Seau%rt, North Carolina 28516
37
" a �� ....

SUBORDINATION OF DEED OF TRUST
TO TERMS AND CONDITIONSIOF RESTRICTIVE COVENANTS
FOR PALMETTO PLANTATION AT OLDE BEAUFORT VILLAGE PUD
Branch Banking and Trust Company, Beneficiary of that certain Deed of Trust dated
40q,& Z , 2006, as executed by Mercer Building Company, to BB& T Collateral Services
Corporation, trustee, said Deed of Trust being in the amount of $_ qq,, '' 64)• (jD , as recorded in
Book 11 page, Carteret County Registry, does hereby subordinate its recorded Deed of
Trust to the Declaration of Covenants, Conditions and Restrictions for Palmetto Plantation at Olde
Beaufort Village PUD as to the lands which are encompassed by the description in the recorded Deed of
Trust, so that hereafter the lots shown on the recorded plats of said Palmetto Plantation PUD may be sold,
transferred, mortgaged, owned and used in accordance with the terms of the Covenants, Conditions and
Restrictions for said Project and so that lot owners will have the use and enjoyment of the roads and other
amenities as shown on the recorded plats and as described in the Declaration of Covenants, Conditions
and Restrictions..
In witness whereof, the Lender and Beneficiary of said Deed of Trust and the Trustee have
executed this Subordination.
Branch anlig an Trust Company
By:
u3
i

BB & T Collateral Service Corporation
Trustee
By
Name and title: Pa-.A--H. /k yvke n
STATE OF NORTH CAROLINA
COUNTY OF
Notary Public for the aforesaid County and State, do hereby certify.
that f l personally appeared before me this day and acknowledged
5v
that he/she isther JL�2 aof Bra
nch Banking and Trust, a North Carolina Banking
Corporation, and that by authority duly given and as the act of the Corporation, the foregoing instrument
was signed in its name by the person named herein on behalf of said corporation.
•. $ �d and seal, this the day ofbac 06
� G '
NOTARY fi
^. C) PUBLIC � :c No tary Public
MY Coiifa0p�r�s
STATE OF NORTH CAROLINA
COUNTY OF&j
a Not Public in and for said County q.nd State, do
hereby certify that / in the. capacity of Al behalf of BB&T
Collateral Seivices Corporation, Trustee, personally appeared before me this day and acknowledged the
39

due execution of the foregoing instrument for and behalf of said trustee in the capacity indicated pursuant
to authority duly given..
Witness my hand and seal, this the day of['2006.
NM.'•.
' NOTARY
Q PUBLIC .
My Commission Expires. " '6- �/
W2-%ZT=e7mw w—j
1
Notary Public
.rk Ij JU, var`"m

Olde Beaufort Village Phase V
Low-DensRy Stormwa w Permit, Total 48 lots
The following impervious restrictions shall apply to lots;
Lot #
Allowable BUAW (SF)
1
2900
2
2900
3
2900
4
2900
5
2900
6
2900
7
2900
8
2900
9
3260
10
3250
11
3250
12
3250
13
3260
14
3260
15
3250
16
8260
17
3250
18
3260
19
3260
20
3250
21
3250
22
2900
23
2900
24
2900
25
2900
26
2900
27
2900
28
2900
29
2900
30
2900
31
2900
32
2900
33
2900
34
2900
35
2900
36
2900
37
2900
38
2900
39
2900
40
2900
41
2900
42
2900
43
2900
44
2900
45
2900
46
2900
47
2900
48
2900
Ooen suace/Park
2604
Total
146,250 sqR
I

BY-LAWS
OF
PALMETTO PLANTATION MASTER ASSOCIATION, INC.
ARTICLE I
NAME AND LOCATION
Section 1. The Name: The name of the corporation is Palmetto Plantation Master
Association, Inc.
Section 2. The Principal Office: The principal office of the Association shall be located
at 106C Professional Drive, Beaufort, NC 28516, pending further notice, but the meetings of the
members and Directors maybe held at such places within the State of North Carolina and/or County
of Carteret as may be designated by the Board of Directors.
ARTICLE Il
DEFINITIONS
Section 1. "Association" shall mean and refer to Palmetto Plantation Master Association,
Inc., its successors and assigns.
Section 2. The term "Subdivision", "Project", "Development" or "Property" as used herein
shall mean and refer to the lots, parcels and tracts within Palmetto Plantation at Olde Beaufort
Village PUD, a single family and multi -family mixed use planned unit development offProfessional
Drive in the Town of Beaufort, Carteret County, NC, as shown on plats prepared by Stroud
Engineers, PA and/or other surveying or engineering firms hereafter as recorded in the Office of the
Carteret County Registry, as well as any additional properties which may hereafter be submitted to
the Protective Covenants and Restrictions for Palmetto Plantation PUD by Mercer Building
Company, herein "Declarant" or "Developer" of the project.
Section 3. Other Definitions: The terms "Developer", "Association", "Owner", "Lot",
and "Common Area", shall have those terms and definitions as defined in the Protective Covenants
and Restrictions for Palmetto Plantation PUD, to which these by-laws are attached.
_,. .. is �.a•::m:..v.....e. _...�.•.� :i is ... .>... ..�, ,.,..�..,.,. ..__

ARTICLE III
PALMETTO PLANTATION MASTER ASSOCIATION, INC.
Section 1. General: There shall be two types of Membership, a Regular Membership
limited to owners of lots within the Palmetto Plantation PUD, and an Associate Membership which
shall carry no voting rights. Every owner of a lot in Palmetto Plantation PUD shall be a regular
member of the Association upon the terms and conditions hereinafter set forth and as defined in the
Declaration of Covenants. Regular memberships in the Association shall be limited to owners of
lots, parcels, tracts or unit within the Project.
Section 2. Administration of the Association: The operating entity of the Association
shall be Palmetto Plantation Master Association, Inc.
a. Powers: The Association shall have all of the powers and duties set forth in
-Chapter 55A of the North Carolina General Statutes for non-profit corporation, as well as all of the
powers and duties granted to or imposed upon the Association by the Declaration of Covenants and
Restrictions for the project and the Articles of Incorporation of the Association, and all of the
powers and duties necessary in the ownership, administration and management of the Association
properties.
All affairs of the Association shall be conducted by the Board of Directors who shall be
designated in the manner provided for in these By -Laws and Articles of Incorporation of the
Association.
In the administration of the operation and management of the Association, the Board of
Directors is hereby granted the authority and power to enforce the provisions of these By -Laws and
Articles of Incorporation, and rules and regulations governing the use of lots and common areas as
the Board of Directors of the Association may deem to be in the best interest of the Association.
b. P oses: The Association does not contemplate pecuniary gain or profit to
the members thereof and no part of the Association's net income shall inure to the benefit of its
officers, directors or members or any other private individual. The purposes and objectives of the
Association shall be to administer and manage the Association properties and the acts and duties
incident to the administration of the Association properties in accordance with the terms, provisions
or conditions of the Declaration of Covenants for Palmetto Plantation PUD, and the Articles of
Incorporation; and to own, operate, lease, sell, trade and otherwise deal with such property, whether
real or personal, as may be necessary or convenient in the administration of said project.
In carrying out the foregoing purposes, the Association shall have all of the powers
reasonably necessary to implement and effectuate the purposes of the Association, including, but not
limited to the power to make and establish reasonable rules and regulations governing the use of
PUD lots, properties and common areas, to levy and collect assessments from lot, unit or parcel
0
I

owners in accordance with the Declaration of Protective Covenants and Restrictions for Palmetto
Plantation PUD and these By -Laws, to maintain, repair, replace and manage the Association
properties, to acquire or lease real and personal property for the benefit of lot owners, and generally
to possess all powers necessary in order to carry out the foregoing purposes.
Section 3. Easements ofEnjoyment: Everymember ofthe Association shall have a right
and easement of enj oyment in and to the Association properties. Each regular Owner may delegate,
in accordance with the By-laws, his right of enjoyment to the Common Areas and facilities to the
members of his family, his tenants, or contract purchasers who reside on the property.
Said rights of use and enjoyment shall be subject to the following provisions:
(a) The Association shall have the right to charge dues and assessments for the upkeep and
maintenance of Association properties, drainage easements, retention ponds and drainage facilities,
recreational and open space areas, utility and drainage easements, and other amenities which are the
responsibility of the Association herein. Likewise, the Association shall have the right to charge dues
and assessments for the construction, replacement and maintenance of any improvements on said
common areas, and to provide for all types of insurance for the Association and its properties, and
the upkeep and maintenance of PUD amenities.
(b) The Association shall have the right to suspend the right to the use of any Association
Properties by any Member for any period during which any dues or assessments against such
Member are overdue and unpaid, and for a period not exceeding sixty (60) days for any infraction
of rules and regulations established by the Association for the regulation and control of Association
Properties. Likewise, the Association shall have the right to fine any Member an amount not
exceeding $50.00 for each violation of rules and regulations established by the Association.
(c) The Association by rules and regulations established from time to time shall have the
right to provide for `one use and enjoyment of common areas and Association Properties. This right
to the use of Association Properties shall extend to members of the Association and relatives of
members who reside with and in the house of members, tenants of each member's lots in the
subdivision so long as the tenancy exists, and contract purchasers of lots and units in the project
who reside on the lot.
Section 4. Membershib and Voting Rights: There shall be two types of membership, a
Regular Membership limited to owners of lots within the project, and an Associate Membership
which shall carry no voting rights. Every owner of a lot, unit or parcel within the project shall be a
Regular member and membership shall be limited to owners of lots, units and parcels within the
project. The Declarant shall be a regular member as the owner of unsold lots as shown on any
recorded plats of properties within the PUD project, and shall have a vote for each unsold -lot
calculated and based upon the percentage each unsold lot, unit or parcel owes for the common.:
expenses and dues under the Declaration of Covenants for the project.
3

The Master Association shall have Associate Memberships which shall entitle the Associate
Member to use and enjoy the recreational amenities, common areas and facilities of the Mast
Association, upon payment er
of an Associate Membership fee, dues or charges. Associate
Membership shall be limited to no more than 25% of the total regular members of the Master
Association based upon a complete build out and development of the 53 acres. The Declarant and
then the Master Association may establish the rules and regulations for the Associate Memberships,
establish the privileges therefor, and set the membership fees or dues. The Declarant and then the
Master Association may suspend or terminate Associate Memberships upon violation of such rules
and regulations. The Master Association shall not have the authority to do away with Associate
Memberships or to reduce the number unless the Declarant approves the same in writhing, and after
the Declarant has turned over management and operation of the Master Association under the terms
of these by-laws, then the suspension, termination or alteration of the rights and privileges of
Associate Members shall still require the approval of the Declarant so long as the Declarant owns
any unsold lots, units or parcels of land within the planned unit development. The Master
Association Board of Directors and the Declarant are authorized to establish rules and regulations
and to prescribe the rights and privileges ofAssociate Members subj ect to the inability of the Master
Association to do away with, restrict or terminate Associate Memberships.
Every owner of a lot in Palmetto Plantation PUD shall become a regular member of the
Association upon the date of recordation of the deed conveying the lot, unit or parcel to the
purchaser. Every owner as a member of the Association shall be bound by the terms and conditions
set forth in these By -Laws and the Covenants and Restrictions for the project, and the lot owner and
his heirs, successors and assigns, shall be obligated to comply with the duties and obligations set
forth herein. Regular membership shall be appurtenant to the lot and may not be severed, separately
transferred or conveyed. Persons or entities who hold an interest in the lot merely as security for the
performance of an obligation shall not be members.
Every Regular Member shall have a vote at all meetings of the membership based upon the
percentage of the common expenses and dues annually each lot, parcel or unit is responsible for as
determined by the Master Association under the terms of the Declaration of Covenants for the
project. When more than one person or entity holds an interest in any lot, the purchasers of said lot
shall designate one of them as the voting member, and if the lot if owned by a corporation or other
business entity, an officer or employee shall be designated a voting member. Regular Members may
vote either in person or by proxy, but if by proxy, the same must be in writing and delivered to the
Secretary of the Association prior to, or at the start of, the meeting at which the proxy is to be
exercised. Every proxy shall be revocable and shall automatically cease upon the conveyance of the
lot by the Regular Member.
The Secretary of the Association shall keep a list of any and all owners of lots, units and
parcels within the PUD which is to include the percentage of the annual dues and association
common expenses owed by each owner for the purpose of determining the identity of each owner
and the vote each owner has at the meetings. As additional properties are added to the project by
amendment, the Secretary and the Board will be required to amend the list of owners and the vote
4
lei

each owner will have. The membership list shall be arranged consecutively by phases as they are
brought under the PUD Covenants and shall be accessible to all members of the Association.
Section 5. Meetin s of Regular Membership: There shall be an annual meeting of the
membership held each year between June 1 and June 30 until otherwise changed by vote of either
the Executive Board or Membership, with the specific date, time, and place to be determined by the
President of the Association unless the Board of Directors or a meeting of the membership has
already specified the exact date, time and place. The presence at the meeting of a member or
members entitled to cast, either in person or by proxy, 51 % of all eligible votes of persons entitled
to vote for election of the Board of Directors shall constitute a quorum for the transaction of all
business except such as may otherwise expressly be provided for in this instrument. If a quorum is
not met through 51 %, then at a subsequent called meeting to be held within 60 days thereafter, the
requirements for a quorum shall be reduced to 25.5 %. Special meetings of the membership may be
called at anytime either by the President, the Board of directors, or one-third of the members. Such
request for a special meeting shall state the purpose or purposes of the proposed meeting. At the
annual meeting, the members shall elect the new members of the Board of Directors, and transact
such other business as may properly come before the meeting. Written notice of the annual and
special meetings of the membership shall be given to each member entitled to vote at least 10 days
prior to said meetings as specified in Section 4 above. The Secretary shall maintain a list of all
members entitled to vote at annual and special meetings with said list containing a mailing address
of each member. All members shall be responsible for notifying the said Secretary of any change
in their address between annual meetings, and all written notice of annual and special meetings sent
to the addresses of the members as shown on the membership list shall be effective as notice by the
Association.
Section 6. Special Regular Membership Meetings: Special meetings of the regular
members for any purpose or purposes unless otherwise prescribed by statute or by these By -Laws,
may be called by the President, the Board of directors or members holding one-third of the total
eligible votes. Such request shall be in writing and shall state the purpose or purposes of the
proposed special meeting. Written notice of the special meeting of members stating the time, place
and purpose thereof, shall be served upon or mailed to each member entitled to vote thereat, at such
address as appears on the list of the Secretary of the Association, at least 10 days before such
meeting. Business transacted at all special meetings shall be confined to the objects and purposes
stated in the notice thereof, unless 100% of the members present at such meeting in person or by
proxy consent to the transaction of business not stated in the notice.
Section 7. uorum: 51 % of the total number of eligible votes of the Association, present
in person or represented by written proxy, shall be requisite to and shall constitute a quorum at all
meetings of the members of the Association for the transaction of business, except as otherwise
provided by Statute, by the Subdivision Covenants, or by these By -Laws. If, however, such quorum
shall not be present or represented at any meeting of the members, the members entitled to vote
thereat, present in person or represented by written proxy, shall have power to adjourn the meeting
from time to time, without notice other than announcement at the meeting, until a quorum thereafter
reduced to 25.5% of the membership, shall be present or represented. At such adjourned meeting
at which a quorum of 25.5 % shall be present or represented, any business may be transacted which
might have been transacted at the meeting originally called.

Section 8. Order of Business: The order of business at the annual Association meetings
and as far as practical at other meetings of the membership, will be as follows:
1. Roll call and certifying of proxies;
2. Proof of notice of meeting without waiver of notice;
3. Reading of minutes of prior meeting;
4. Officers' reports;
5. Committee reports;
6. Approval of budget;
7. Election of directors;
8. Unfinished business;
9. New business;
10. Adjournment.
Section 9. Officers: The Association shall have not less than three (3) officers, a
President, Secretary and Treasurer, which shall be elected by the Board ofDirectors for a term of one
year or until their successors have been elected. The Board may provide for one or more Vice -
Presidents or Assistant Secretary or Assistant Treasurer. The President shall act for the Association,
but shall not have the authority to obligate the credit of the Association, nor the members thereof,
without authorization of either the Board of Directors or the membership. All checks written on any
bank account of the Association shall be signed by any two or more of the authorized officers as
indicated on the Association's bank signature cards and resolution adopted pursuant thereto. The
Association may authorize the Treasurer or Assistant Treasurer to sign all checks for the Association,
and the Assistant Treasurer need not be a member of the Association. The duties of the officers shall
be as follows:
a. President: The President shall preside at all meetings of the members and
Directors; he shall have general and active management of the business of the Association; he shall
see that all orders and resolutions of the Board of Directors are carried into effect; he shall have
equal superintendence and direction of all the other officers of the Association, and shall see that
their duties are performed properly. He shall report on the operations of the Association for the
fiscal year to the directors when ever called for by them, and to the members at the annual meeting,
and from time to time shall report to the Board of Directors all matters within his knowledge which
the interest of the Association may require to be brought forward. He shall be an ex-officio member
of all committees, and shall have the general powers and duties of supervision and management
usually vested in the office of the President of an Association.
b. Vice -President: If a Vice -President is hereafter elected, the Vice -President
shall be vested with all of the powers and required to perform all the duties of the President in his
absence, and such other duties as may be prescribed by the Board of Directors.
C. Secretary: The Secretary shall keep the minutes of the meetings of the
members and the Board of Directors; he shall see that all notices are fully given in accordance with
the provisions of these By -Laws or as required by law. He shall keep a register of the post -office
address of each member, which shall be furnished to the Secretary by all members.
"209
.5 Al�

d. Treasurer: The Treasurer shall keep full and accurate accounts of receipts
and disbursements in books belonging to the Association and shall deposit all monies and other
valuable effects in the name and to the credit of the Association, in such depositories as may be
designated by the Board of Directors. He shall disburse the funds of the Association as ordered by
the Board, taking proper vouchers for such disbursements and shall render to the President and
Directors at the regular meetings of the board or whenever they may require it an account of all his
transactions as Treasurer and of the financial condition of the Association. Such records shall be
open to inspection by members at a reasonable time. In addition he may be required to give the
Association at the Association's costs a bond in the sum and with one or more sureties satisfactory
to the Board, for the faithful performance of the duties of his office, and the restoration to the
Association, in case of his death, resignation or removal from office, of all books, papers, vouchers,
money or other property of whatever kind in his possession belonging to the Association. He shall
maintain a register for the names of any mortgage holders or lien holders on lots who have requested
in writing that they be registered to whom the Association will give notice of default in case of
non-payment of assessments. No responsibility by the Association or its members is assumed with
respect to said register except that it will give notice of default to any registered mortgagee or lienor
therein, if so requested by said mortgagee or lienor. In general he shall perform all duties as may
from time to time be assigned to him by the President or by the Board of Directors.
Section 10. Executive Board:
a. Number and Term. The initial Board of Directors shall consists of three (3)
Directors. The number of Directors shall remain three until these By -Laws have been amended by
the Directors in accordance with Article VI hereafter. All Directors shall be required to be members
of the Association. Provided, until such time as seventy-five percent (751/6) of all lots within the
proposed PUD project have been sold which shall be evidenced by the recordation of a Deed or
Deeds to lots therein, then the Developer as the initial Declarant or its written appointee shall appoint
the three members of the Board of Directors annually and theirs successors until control of the Board
of Directors has been completely transferred to the lot owners. The three members so appointed by
the Declarant or its written designee shall not be required to be members of the Association. No
later than one hundred and twenty (120) days after conveyance of seventy-five percent (75%) of the
lots within the project to owners other than the Declarant, a special meeting of the Association shall
be held for the purpose of electing members to the Board of Directors to replace those members of
the Board of Directors appointed by the Declarant. Pending transfer of control of the Association,
the Declarant shall have the absolute right to appoint all members of the Board of Directors.
Additionally, so long as the Declarant continue to own one lot within the PUD project and for a
period of 10 years after control of the Association is assumed by the membership, the Declarant
shall have the right to designate one member of the Executive Board.
b. Subject to the provisions of subparagraph (d) hereafter, if the office of any
Director becomes vacant by reason of death, resignation, retirement, disqualification, removal from
office or otherwise, the Executive Board shall appoint at a properly called meeting thereafter a
replacement to fill the unexpired term in respect to which said vacancy occurs.
A13

C. Members representing at least 61% of all eligible votes present and entitled
to vote at any meeting of the membership at which a quorum is present, may remove any member
of the Board of Directors with or without cause, in accordance with G.S. 47C-3-103. However,
while the Declarant has control and is entiticd to name `Tie directors, the Declarant may remove any
member of the Board without cause at any time. The membership after control has shifted from the
Declarant will be prohibited from removing the Declarant's appointment of a director except for
cause and upon such removal the Declarant shall name a replacement thereto.
d. Pending transfer of control of the Association in accordance with Article XI
of the Articles of Incorporation, the Declarant shall have the right to remove any member of the
Board of Directors with or without cause, and to appoint and elect successors to the Board in the
event of the death, resignation, retirement, disqualification, removal from office or otherwise of a
Director.
e. Powers. The property and business of the Association shall be managed by
the Board of Directors, which may exercise any and all authority over the management of the
Association and the common areas not specifically prohibited by Statutes, these By -Laws, or the
Declaration of Covenants and Restrictions for Palmetto Plantation PUD. The powers of the Board
shall specifically include all powers set forth in the Declaration of Protective Covenants and
Restrictions and the Articles of Incorporation, which powers are incorporated herein by reference
as if fully set out, and shall include but not to be limited to the following:
1. To make and collect regular and special assessments and establish the time
within which payment of the same are due.
2. To use and expend the assessments collected to maintain, care for and
preserve the PUD project properties, including roads, drainage easements and facilities, recreational
areas and open spaces, etc..
3. To purchase the necessary equipment and tools required in the maintenance,
care and preservation referred to above.
4. To enter into and upon Association properties and lots when necessary and
with as little inconvenience to the lot owner as possible in connection with such maintenance, care
and preservation.
5. To insure and keep insured Association properties in the manner set forth in
the Declaration of Covenants against loss from fire and/or other casualty, and the lot owners and
Association against public liability, and to purchase such other insurance as the Board may deem
advisable.

6. To collect delinquent assessments by suit or otherwise, abate nuisances and
enjoin or seek damages from purchasers for violations of these By -Laws and the terms and
conditions of the Declaration of Protective Covenants.
7. To employ and compensate such personnel as may be required for the
maintenance and preservation of the property.
8. To make appropriate changes in the Rules and Regulations for the use and
occupancy of Association properties as may be deemed necessary.
9. To acquire and/or rent and/or lease personal and real properties in the name
of the Association or a designee.
10. To contract for management of the Association properties and to delegate to
such other party all powers and duties of the Association except those specifically required by the
Declaration of Protective Covenants to have specific approval of the Board or membership.
11. To carry out the obligations of the Association under any restrictions and/or
covenants running with any land submitted to the Declaration of Protective Covenants for the PUD
project.
12. To designate, as the board deems appropriate, assigned parking spaces for
each lot, visitors, service vehicles, boats, and other vehicles.
13. To adopt Rules and Regulations pursuant to Article IV of these By -Laws
pertaining to 'Default".
14. To impose a special assessment, fine or penalty against any purchaser, not
to exceed $50.00 for each occurrence, for the violation by the purchaser or his guests of any rule or
regulation adopted by the Board or the breach of any By -Laws contained herein, or the breach of any
provision of the Declaration.
15. To enforce the provisions and requirements of the Covenants including the
obligation that each owner secure and keep in effect insurance, and to purchase insurance for any lot
or improvements thereon which fails to provide evidence of insurance or defaults with respect to
payment or procurement of the same.
Section 11. Meetings of the Board of Directors:
a. The first meeting of each Board newly elected by the members shall be held
immediately upon adj ournment of the meeting at which they were elected, provided a quorum shall
9
300 , //-W - PAGE-1E.,......

then be present, or as soon thereafter as may be practicable. The annual meeting of the Board shall
be held at the same place as the general membership meeting.
b. Special meetings shall be held whenever called by the Director or the
President or a majority of the Board. The Secretary shall give notice of each special meeting either
personally or by mail, or telegram, at least three (3) days before the date of such meeting, but the
directors may, in writing, waive notice of the calling of the meeting, before or after such meeting.
C. A quorum shall be deemed present throughout any meeting of the Board of
Directors of persons entitled to cast 50% of the votes on that Board, if present at the beginning of
the meeting. The act of a majority present at such meeting and which there is a quorum shall be the
act of the Board. If the quorum shall not be present at the meeting, the Directors then present may
adjourn the meeting without notice other than announcement at the meeting until a quorum shall be
present.
d. Order of Business: The order of business at all meetings of the Executive
Board shall be as follows:
i. Roll call;
ii. Proof of notice of meeting or waiver of notice;
Reading of minutes of last meeting;
iv. Consideration of communications;
V. Reports of officers
vi. Report of committees;
vii. Unfinished business;
viii. Election of officers at annual meeting;
ix. New Business;
X. Adjournment.
e. Annual Statement: The Board shall present, no less often than at the annual
meeting, a full and clear statement of the business and condition of the Association, including a
report of the operating expenses of the Association and the assessments paid by each member.
Section 12. Liabili : The officers, and directors shall not be liable to the owner for any
mistake in judgment, negligence, or otherwise except for their own individual willful misconduct,
bad faith, or gross negligence.
Section 13. Compensation: Neither Directors nor officers shall receive compensation for
their services as such.
Section 14. Removal of Officers and Directors: Any one or more of the officers and
Directors may be removed at any time, with or without cause, by a vote of lot owners representing
at least 67% of all persons present and entitled to vote at any meeting of the owners at which a
10

quorum is present. Upon the removal of any officer or Director, the membership shall elect a
replacement to fill the unexpired term subject to the Declarants' rights set forth in Section 10(d)
above.
ARTICLE IV
FINANCES
Section 1. Fiscal Year: The fiscal year shall be the calendar year.
Section 2. Checks: All checks or demands for money and notes of the Association shall
be signed by the following officers: President or Vice -President and Treasurer, or by such officer or
officers or such other persons as the Executive Board may from time to time designate.
Section 3. Determination of Assessments:
a. The Board shall determine from time to time the sum or sums necessary and
adequate for the common expenses of the Association. The Board shall adopt a proposed budget for
the Association, and within 30 days after, adoption of the proposed budget, the Board of Directors
shall provide a summary of the budget to all regular members, and shall set a date for a meeting of
the regular members to consider ratification of the budget not less than 14 nor more than 30 days
after mailing of the summary. There shall be no requirement that a quorum be present at the
meeting. The budget is ratified unless at that meeting a majority of all the owners reject the budget.
In the event the proposed budget is rejected, the periodic budget last ratified shall be continued until
such time as the owners ratify a subsequent budget proposed by the Board of Directors.
The budget shall constitute the basis for all dues and assessments for common expenses
against owners, which assessments shall be due and payable periodically as determined by the Board
of Directors. Common Expenses shall include expenses for the operation, maintenance, repair or
replacement of Association properties, including drainage easements, ponds and facilities, the cost
of carrying out the powers and duties of the Association, all insurance premiums and expenses
relating thereto, and any other expenses designated as common expenses from time to time by the
Board of Directors.
b. The Board is specifically empowered on behalf of the Association to make
and collect assessments and to maintain, repair and replace the common areas and facilities. The
dues and assessments shall be assessed to each owner of a lot, parcel or unit then under the terms of
the Declaration of Covenants for the project in accordance with the percentage each owner is
responsible for of the annual common expenses of the Association, calculated in accordance with
the terms of the Declaration as amended. The dues shall be payable periodically as determined by
the Board.
11

C. Special assessments for common expenses and repairs or replacement of
capital not adequately funded through the regular assessments may be required by the Board and
shall be levied and paid in the same manner as hereinbefore provided for regular assessments.
Notwithstanding anything in these By -Laws or. the Declaration of Protective Covenants which
authorize assessments and expenditures, no special assessment exceeding $1500 per lot per annum
or expenditure for the improvement of the Association properties exceeding $15,000 per annum for
the subdivision shall be made without the approval of sixty-seven percent (67%) of the eligible
membership. Nothing herein shall restrict or limit the number of special assessments which maybe
made annually if deemed necessary for common expenses and repairs or the replacement of capital
not adequately funded through the regular assessments.
d. When the Board has determined the amount of any assessment, the Treasurer
of the Association shall mail or present a statement of the assessment to each of the assessed owners.
All assessments shall be payable to the Association, and upon request, the Treasurer shall give a
receipt for each payment made.
e. The Board may enter into a management contract with third parties to whom
the Board of Directors may delegate the power to levy and collect assessments approved by the
Board or required by the Declaration of Protective Covenants.
f. All assessments not paid when due shall bear interest at 1.5 percent monthly
until paid.
g. The Declarant shall have the obligation to pay dues or assessments for unsold lots
which have been made subject to the Declaration of Covenants for the PUD by the recordation of
one or more plats showing the same..
ARTICLE V
DEFAULT
Section 1. Dues and Assessments: Each purchaser of a lot in Palmetto Plantation PUD
by the acceptance of a deed therefore, whether or not it shall be so expressed in such deed, covenants
and agrees to pay to the Association such monthly, quarterly or periodic dues and special
assessments as shall be established from time to time by the Board of Directors or membership of
the Association. Such monthly or periodic dues and special assessments, together with interest, cost,
and reasonable attorneys fees, shall be a charge on the lot and shall be a continuing lien on the land
against which each assessment is made, until paid. In addition such monthly dues and special
assessments shall also be the personal obligation of the purchaser of the lot at the time the dues or
assessments become due. This personal obligation shall not pass to a successor in title to -the
purchaser unless expressly assumed by such successor. The dues and any assessments shall be used
exclusively to promote the recreation, health, safety and welfare of the members of the Association
and for improvements, maintenance ofthe common areas and properties, buildings or improvements
12 ��

within said subdivision development. The lien ofthe monthly dues and special assessments provided
for herein shall be subordinate to the lien of any first mortgage. No sale or transfer of any lot shall
affect the lien for unpaid dues or special assessments. The monthly dues shall be payable monthly
in advance, unless otherwise directed by the Board of Directors. The pro rata portion of the dues
levied for the month purchased shall be collected by the Declarants from the purchaser of each lot
at the time the sale is closed. This money shall be paid by the Declarants to the Association. The
amount of the monthly dues for each year shall be fixed at the annual meeting of the membership
for the following fiscal year of the Association. The monthly dues shall commence as to all lots on
the date a deed to the lot from the Declarants is recorded. In addition to the monthly dues, the
Association may levy a special assessment for the purpose of defraying, in whole or in part, the cost
of any construction, reconstruction, repair or replacement of any capital improvements upon the
Association properties, or for acquiring additional land for Association properties, or for any other
related purpose, and the Association shall give notice of meeting clearly stating that a vote is to be
held on whether to levy such special assessment.
Section 2. Enforcement of Lien for Assessments: In the event a lot owner does not pay
any sums, charges, or assessments required to be paid to the Association by the due date, the
Association, acting on its behalf or through its Board of Directors, may enforce its lien for
assessments and to take such other action to recover the sums, charges or assessments to which it
is entitled, in accordance with Chapter 44 and 44A ofthe North Carolina General Statutes. Provided,
no foreclosure of a lien incurred exclusively for non-payment ofpenalties, fines and attorney's fees
is authorized herewith. However, if dues or special assessments and interests and attorneys fees
thereon for non-payment are also part of the lien, then foreclosure is permitted and authorized even
though part of the sums owed may be penalties or fines.
Section 3. Legal Costs: In the event such legal action is brought against any lot owner
and results in a judgment for the Association; the lot owner shall pay the Association's reasonable
attorneys fees, costs of collection, and court costs.
Section 4. Foreclosure: If the Association becomes the purchaser of a lot by reason of
foreclosure, it shall offer said lot for sale and at such time as a sale is consummated, it shall deduct
from the proceeds of said sale all sums or money due it for assessments and charges, all costs
incurred in the bringing of the foreclosure suit, including reasonable attorneys fees, and any and all
expenses incurred in the resale of the lot, which shall include but not be limited to advertising
expenses, real estate brokerage fees and other incidental expenses.
Section 5. Other Remedies: In the event of violation of the provisions of the Protective
Covenants or rules and regulations adopted by the Board of Directors for thirty (30) days after notice
from the Association to the lot owner and failure to correct the same, the Association, on its own
behalf or through its Board of Directors, may bring appropriate action to enjoin such violation or
may enforce the provisions of the Protective Covenants or these By -Laws, or may sue for damages,
or take other courses of action, or pursue other legal remedies as it may deem appropriate.
13
tMIk-Q .

Section 6. Intent: Every lot owner, for himself, his heirs, successors and assigns, agrees
to the foregoing provisions relating to collection of dues and assessments, default and abatement of
nuisances, regardless of the harshness of the remedy available to the Association and regardless of
the availability of the other equally adequate legal procedures. It is the intent of all purchasers of lots
to give the Association a method of procedure which will enable the Association at all times to
operate on a business -like basis, to collect the monies due and owing it from the purchasers of lots,
and to preserve each lot purchaser's right to enjoy his lot, free from unreasonable restraint and
ruisancc.
ARTICLE VI
AMENDMENTS
The By -Laws may only be altered, amended or added to at any duly called meeting of the
members; provided (1) that the notice of the meeting shall contain a full statement of the proposed
amendment; and (2) that the quorum requirements for such purposes shall be a 51 percent of the
eligible votes in person or by proxy. In addition, it shall be necessary that there be an affirmative
vote of the Board of Directors, in order to amend the By -Laws. No amendment to these By -Laws
shall be passed which would operate to impair or prejudice the rights and/or liabilities of any
mortgagee.
ARTICLE VII
CONSTRUCTION
Whenever the masculine singular form of the pronoun is used in these By -Laws, it shall be
construed to mean the masculine, feminine or neuter, singular or plural, wherever the context so
requires.
Should any of the covenants herein imposed be void or be or become unenforceable at law
or in equity, the remaining provisions of this instrument shall nevertheless be and remain in full force
and effect:
IN WITNESS WHEREOF, Mercer Building Company by its president has caused these
By -Laws to be executed on this the 1st day of March 2007.
Mercer Building Company
BY:
G .Mercer President
14

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
T,]L a Notary Public, in and for said County and State, do hereby
certify that Gary A. Mercer, President of Mercer Building Company, a North Carolina Corporation,
Ramsey personally appeared before me this day and acknowledged the due execution of the
foregoing instrument for and on behalf of said corporation in such capacity pursuant to authority duly
given.
Witness my hand and official seal or
2007.
My Commission expires: q
p Bohr®�8���'
Notary
Public
stamp 's the 1st pdaof March
Notary Public

ARTICLES OF INCORPORATION
OF
PALMETTO PLANTATION MASTER ASSOCIATION, INC.
In compliance with the requirements of Chapter 55A of the North Carolina General
Statutes entitled "Nonprofit Corporation Act," and the several amendments thereto, the undersigned,
natural person of full age, has this day executed these Articles of Incorporation for the purpose of
forming a non-profit corporation and hereby certifies:
ARTICLE I.
The name of the corporation is Palmetto Plantation Master Association, Inc., herein
"Corporation" or "Association".
ARTICLE II.
The registered office of the Corporation is located at 106C Professional Drive, Beaufort,
Carteret County, North Carolina 28516. The principal office of the Corporation is located at 106C
Professional Drive, Beaufort, Carteret County,NC 28516.
ARTICLE III.
Gary Mercer whose address is 106C Professional Drive, Beaufort, Carteret County,NC 28516,
is hereby appointed the initial Registered Agent of the Corporation.
ARTICLE IV.
The Corporation does not contemplate pecuniary gain or profit to the members thereof
and no part of the Corporation's net income shall inure to the benefit of any of its officers,
directors or members or any other private individual. The purposes and objects of the corporation
shall be to administer the operation and management of properties and common areas conveyed,
transferred, leased or assigned for management or administration to said Corporation within or
without Palmetto Plantation at Olde Beaufort Village PUD being developed in the Town of
Beaufort, Carteret County, North Carolina, by Mercer Building Company, its successors and
assigns, said development initially consisting of approximately 22 acres and 48 lots, with open
spaces, stormwater ponds and easements, common areas, and roads as shown on plats to be
recorded in the Officc of the Register of Deeds for Carteret County, North Carolina; to undertake
the performance of the acts, duties, rights and responsibilities incident to the administration of
the operation and management of the common areas and properties of Palmetto Plantation PUD
as more particularly assigned and described in the Protective Covenants and Restrictions for the
✓�1/3 �P

development as recorded in the Carteret County Registry; and to own, operate, lease, sell, trade
and otherwise deal with such property, whether real or personal, as may be necessary or
convenient in the administration and management of association properties located within said
development. The Covenants provide that additional properties will be added and these
properties will be subject to the Covenants and administered by said Association.
ARTICLE V.
The Corporation shall have the following powers:
1. The Corporation shall have all of the powers and privileges granted to Non -Profit
Corporations under the law pursuant to which this Corporation is chartered, and all of the powers
and privileges which may be granted unto said Corporation under any other applicable laws of
the State of North Carolina.
2. The Corporation shall have all the powers reasonably necessary to implement and
effectuate the purposes of the Corporation, including, but not limited to, the following:
(a) To make and establish reasonable rules and regulations governing the use
of Association properties and Common Areas within the development as said terms may be
defined herein and in the Protective Covenants and Restrictions for said subdivision.
(b) To levy and collect assessments against members of the Corporation to
defray the common expenses of the Association as may be provided in the Protective Covenants
and Restrictions for the Development and in the By -Laws of this Corporation which maybe
hereafter adopted, including the right to levy and collect assessments for the purpose of
acquiring, operating, leasing, managing and otherwise trading and dealing with Association
properties, whether real or personal, which may be necessary or convenient in the operation and
management of the Association Properties and Common Areas within or without said
development, and for the purpose of accomplishing the purposes set forth in the Protective
Covenants and Restrictions for Palmetto Plantation PUD.
(c) To maintain, repair, replace, operate and manage Association Properties,
real or personal, including the right to reconstruct improvements after casualty and to make
further improvements to Association Properties within said subdivision and to make and enter
into any and all contracts necessary or desirable to accomplish said purpose.
(d) To contract for the management of the Association and to delegate to such
management firm all of the powers and duties of the Association except those which may be
required by these Articles of Incorporation, By -Laws hereafter adopted, or the Protective
Covenants and Restrictions, to have the approval of the Board of Directors or membership of the
Corporation.
2
0

(e) To acquire and enter into, now or at any time hereafter, leases and
agreements whereby the Association acquires leaseholds, undivided interests in real property,
memberships, and other possessory, ownership or use interests in land or facilities including, but
not limited to, swimming pools, open spaces and other recreation facilities, whether or not
contiguous to Palmetto Plantation PUD in order to provide enjoyment, recreation or other use or
benefit to the owners of lots within said development.
(f) T o enforce the provisions of these Articles of Incorporation, the By -Laws
of the Corporation, pertinent and applicable provisions of any of the Protective Covenants and
Restrictions for the development, and the rules and regulations governing the use of Association
Properties as the same may be hereafter be established from time to time.
(g) To exercise, undertake and accomplish all of the rights, duties and obligations
which may be granted to or imposed upon the Corporation pursuant to any of the recorded
Protective Covenants and Restrictions for the development.
(h) To acquire, own, operate, lease, manage, maintain and otherwise operate
in all respects properties which may be annexed to or added and brought under the covenants for
the development.
(i) Said corporation shall further have as its purpose and object the administration of
such additional properties and common areas as may be annexed to or brought under the
Protective Covenants and Restrictions for the Development, including properties which may be
added by subsequent amendment thereto by the Declarant designed herein.
ARTICLE VI.
The qualification of the members, the manner of their admission to membership and
termination of such membership, and voting by members shall be as follows:
1. There shall be two types of membership consisting of regular member and an associate
member. All owners of lots, units or parcels within the Palmetto Place planned unit development
including Mercer Building Company as the Developer/declarant are required to be regular
members of the Association, and regular memberships shall be limited to purchasers of lots
within said development. Associate Memberships shall be permitted and allowed in accordance
with the by-laws and Associate Memberships shall not have voting privileges.
2. Regular memberships shall be appurtenant to and may not be separated from
ownership of a lot. Persons or entities who hold an interest in a lot merely as security for the
performance of an obligation shall not be class A members,-;,
I.-
3. When more than one person holds an interest iniany lot, all such persons shall be
entitled to the privileges and responsibilities of membership, but said lot shall only have one
'90

vote, and the purchasers of said lot shall designate one of them as the voting member. If the lot
is owned by a corporation or other business entity, an officer or employee shall be designated as
the voting class member.
4. Each lot owner shall have the vote at all meetings of the membership as established
and set out in the Declaration of Covenants for Palmetto Plantation PUD and in the Bylaws of
the Association. .
5. The interest of a member in the funds and assets of the Corporation cannot be assigned,
hypothecated or transferred in any manner except as an appurtenance to ownership of the lot.
The funds and assets of the Corporation shall belong solely to the Corporation subject to the
limitation that the same be expended, held or used for the benefit of the membership and for the
purposes authorized herein, and the Protective Covenants and Restrictions for the development
and in the By -Laws which maybe hereafter adopted.
6. As the Protective Covenants and Restrictions for the Development are recorded and
lots are sold and conveyed pursuant to the same, a roster or other written documentation shall be
maintained containing the names and addresses of all purchasers of lots. The vote of each lot
may be cast or exercised by the Owner or Owners of each lot in such manner as may be provided
in the By -Laws hereafter adopted by the Corporation.
ARTICLE VII.
The Corporation shall have perpetual existence.
ARTICLE VIII.
The affairs of the Corporation shall be managed by the Board of Directors, and the Chief
Officer of the Corporation shall be the President, assisted by the Secretary/Treasurer, subject to
the directions of the Board of Directors. The Board of Directors may employ a management firm
and/or such other managerial and supervisory personnel or entities to administer or assist in the
administration of the operation and management of the Association, and the affairs of the
Corporation, and any such person or entity may be a member of the Corporation or a Director or
Officer of the Corporation, as the case may be.
ARTICLE IX.
The number of members of the First Board of Directors of the Corporation shall be three
(3). The number of members of the succeeding Board of Directors shall be as provided from time
to time by the By -Laws of the Corporation but shall not be less than 3. The members of the -
Board of Directors shall be elected by the members of the Corporation at the annual meeting of
the membership as provided uy the By --Laws of the Corporation. All Directors shall be required
to be members of the Association. Provided, until such time as seventy-five (75%) percent of all
4

lots within the proposed Palmetto Plantation PUD have been sold which shall be evidenced by
the recordation of a Deed or Deeds to lots therein, then Mercer Building Company the initial
Declarant or its written appointee shall appoint the three (3) members of the Board of Directors
annually and their successors until control of the Board of Directors has been completely
transferred to the lot owners. The three (3) members so appointed by the Declarant or its written
designee shall not be required to be members of the Association. Not later than one hundred and
twenty (120) days after conveyance of seventy-five (75%) percent of the lots within the Palmetto
Plantation PUD to owners other than the Declarant, a special meeting of the Association shall be
held for the purpose of selecting members to the Board of Directors to replace those members of
the Board of Directors appointed by the Declarant. At such time as 75% of all lots have been
sold and the members have assumed control over the management of the Corporation, in
accordance with the Covenants, the Declarant so long as it owns one lot shall have the right to
appoint or elect one director to the Executive Board for a period of ten years after the
membership has assumed control.
ARTICLE X.
The Board of Directors shall elect a President and Secretary/Treasurer. The President and
Secretary/Treasurer shall be elected from among the membership of the Board of Directors. The
offices of Secretary and Treasurer may be held by the same person. No person shall
simultaneously hold more than one of any of the other offices except in the case of special offices
created by the Board of Directors.
ARTICLE XI.
The names and post office addresses of the initial Board of Directors who, subject to the
provisions of these Articles of Incorporation, the By -Laws and the laws of the State of North
Carolina, shall hold office until the first annual meeting of the Membership (or until their
successors are elected and qualified) are as follows:
Gary A. Mercer
106C Professional Drive
Beaufort, NC 28516
Judy Mercer
106C Professional Drive
Beaufort, NC 28516
Robert Fowle
106C Professional Drive
Beaufort, NC 28516
5

ARTICLE XII.
The original By -Laws of the Corporation shall be adopted by a majority vote of the initial
members of the Corporation as provided for in Paragraph 1 Article VI, herein, present at a
meeting of said members at which a majority of the membership is present, and thereafter, such
By -Laws may be altered or amended only in such manner as said By -Laws provide.
ARTICLE XIII.
Every Director and every officer of the Corporation shall be indemnified by the
Corporation against all expenses and liabilities, in counsel fees, reasonably incurred by or
imposed upon him in connection with any proceeding to which he may be a party, or in which he
may become involved, by reason of his being or having been a Director or officer of the
Corporation, whether or not he is a Director or officer at the time such expenses are incurred,
except in such cases wherein the Director or officer is adjudged guilty of willful misfeasance or
malfeasance in the performance of his duties; provided that, in the event of any claim for
reimbursement or indemnification hereunder based upon a settlement by the Director or officer
seeking such reimbursement or indemnification, the indemnification herein shall only apply if the
Board of Directors approves such settlement and reimbursement as being in the best interests of
the Corporation. The foregoing right of indemnification shall be in addition to and not exclusive
of all other rights to which such Director or officer may be entitled.
ARTICLE XIV.
An amendment or amendments to these Articles of Incorporation shall require the assent
of sixty six and two thirds percent (66-2/3%) of the Board of Directors.
ARTICLE XV.
In the event of dissolution of this Corporation, all of its then assets shall be distributed as
follows:
(i) The dissolution shall be conducted under Court supervision, if required or
permitted under the statutes of the State of North Carolina, as now- enacted or as hereafter
amended or supplemented, and, subject to prior compliance with N.C.G.S. 47C-2-118 et. seq. of
the North Carolina Statutes, as then amended or supplemented, the assets of this Corporation
shall be distributed to another non-profit corporation or unincorporated association formed for
the purpose of operating, managing or administering association properties and discharging
association responsibilities in accordance with these Articles and the Protective Covenants and
Restrictions of the subdivision, or in the event no such corporation or association exists, then the
assets of this corporation shall be distributed to Carteret County or other public entity, or to a
similar non-profit corporation which has as its purpose the operation, management or

administration of the Association properties and the discharge of Association responsibilities in
accordance herewith.
ARTICLE XVI,
The name and address of the incorporator is as follows:
Richard L. Stanley
613 Cedar Street
P. O. Box 150
Beaufort, N.C. 28516
IN TESTIMONY WHEREOF, I, being the incorporator, have hereunto set my hand and
seal, this the 25 day of February 2007.
7::
Ri and . anley
Incorporator
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
. I, L*ar-'j.SLWkLW ,the undersigned Notary Public hereby certify that Richard L.
Stanley, personally appeared before me, and being by me first duly sworn, declares that he signed
the foregoing document in the capacity indicated and that the statements therein contained are
true.
Witness my hand and notarial seal, this the 25 day of
February 2007. ;W
,1 q . za q Notary Public L-PC4 -- b . S«.(�.�—t 470?
My commission expires: • (i 201 1
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