SW8050516_Historical File_20060123

o�oF WATFRQG Michael F. Easley, Governor
William G. Ross, Jr., Secretary
�? r North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
January 23, 2006
Mr. Randy Allen, President
R.A. North Development, Inc.
110 Matthews Station Street, Suite 2D
Matthews, NC 28105
Subject: Approved Plan Revision
Cannonsgate at Bogue Sound
Stormwater Project No. SW8 050516 Plan Revision
Carteret County
Dear Mr. Allen:
On January 11, 2006, the Wilmington Regional Office received a plan revision for Stormwater
Management Permit Number SW8 050516. The revisions include adding a temporary sales
office with parking (+9,817 sq ft), reducing boat storage from 80,904 to 71,904 sq ft (Appendix
D to permit, -9,000 sq ft), and reducing the "Future Development Area" allocation from 89,024
to 88,207 sq ft (Appendix D to permit, -817 sq ft), which results in no net increase to the
permitted impervious area . It has been determined that a formal permit modification is not
required for the proposed changes. We are forwarding you an approved copy of the revised
plans for your files. P!euse roNlacc the old approved plan Sheet 4 with the new Sheet 4.
Please be aware that all terms and conditions of the permit issued on June 2, 2005, remain
in full force and effect. Please also understand that the approval of this revision to the
approved plans for the subject State Stormwater Permit is done on a case -by -case basis.
Any other changes to this project must be approved through this Office prior to
construction. The issuance of this plan revision does not preclude the permittee from
complying with all other applicable statutes, rules, regulations or ordinances which may
have jurisdiction over the proposed activity, and obtaining a permit or approval prior to
construction.
If you have any questions concerning this matter, please do not hesitate to call me at (910)
796-7215.
Since ely,
Paul T. Bartlett, P.E.
Environmental Engineer
ENB1ptb: S:1WQSISTORMWATIREVISION1050516.jan06
cc: Carl C. Huddle, P.E., Carolina Engineers, PA
Katrina Marshall, Carteret County Building Inspections
Paul T. Bartlett, P.E.
Wilmington Regional Office
Central Files
North Carolina Division of Water Quality 127 Cardinal Drive Extension Phone [phone] Customer Service 1-877-623-6748
Wilmington Regional Office Wilmington, NC 28405-3845 FAX [phone] Internet: h2o.enr.state.nc.us One
NorthCarohna
An Equal Opportunity/Affirmative Action Employer— 50% Racyrled/10% Post Consumer Paper Naturally

0,
�ichaet F. Easley, Governor
William G. Ross Jr. Secretary
North Carolina Department of Environment and Natural )2esources
j :.� N Alan W. Igimek, P.E., Director
,< Division of WaterQuality
Coleen H. Sullins, Deputy Director
< sz Division of Water Quality
January 13, 2006
Mr. Sherrell Futral
Bluewater Associates of Emerald Isle Inc.
PO Box 4340
Emerald Isle, NC 28594
Subject: General 401 Water Quality Certification #3402
Cannonsgate Subdivision
Carteret County
Dear Mr. Futral:
The Wilmington Regional Office received your Pre Construction Notification application for a
US Army Corps of Engineers (USAGE) Nationwide 18 Permit on November 28, 2005, and received
additional information on November 28, 2005 and January 13, 2006. The wetland impacts proposed in
Cannonsgate Subdivision in Carteret County are for the purpose of constructing an access drive for Lots
60 and -61. You are authorized to impacf 0.078 acres of Section 404 Wetlands under General Water
Quality Certification (W QC) # 3402 (attached). This Certification allows you to use your 404 Permit
when the Corps of Engineers issues it. Written concurrence from the Division of Water Quality (DWQ)
is not required provided that you can meet all of the conditions of the General Water Quality
Certification.
If at anytime during construction' of your project you determine that you cannot meet these
conditions or if there are any additional impacts to wetlands or water quality not described in your
application, you must contact this office immediately.
3900.
If you have any questions concerning this matter, please do not hesitate to call me at (910)-395-
Sincerely,
�b
Noelle Lutheran
Environmental Specialist III
Attachments: WQC #3402
cc: Cyndi Karoly, 401 Oversight Unit
Mickey Sugg, USACE Wilmington
Trentt Junes, I)TR Wilmington
Doug Huggett, DCM Morehead City
Kim Williams, Land Management Group
WiRO
N. C. M.A.-Ion of :": ter Quarit r 127 Cardinal Drive Extension (910) 3W3900 Customw Service
Wlimingt+on Regional Office Wilmington. NC 28405 [phone] Fax [phone]
NOn rt1% C n-n
An Equal OpporkmitylAffirmafive Action Employer — 50% Recydedf10% Post Consumer Paper U fA
)VIPherlyl/t;

f-R
CAROLINA ENGINEERS, PA
January 11, 2006
Geotechnical • Construction Materials • Forensic • Site Development • Surveying
North Carolina Department of Environment and Natural Resources
127 Cardinal Drive Ext.
Wilmington, NC 28405-3845
Attention: Mr. Paul Bartlett
am Qkv 1
swg Drolp
0 6 16- W - I /�0/0(0
Reference: Impervious Area Modifications to Sales Office with Parking & Boat Storage Area
Sheet 4, Revision No. 2 - Dated 1/11/06
Cannonsgate at Bogue Sound, Carteret County, North Carolina
Stormwater Project SW8 050416
Dear Paul:
I have attached two (2) copies of Sheet 4, Revision No. 2 dated January 11, 2006 of the Stormwater
Management Plan for Cannonsgate at Bogue Sound subdivision. These plan modifications depict
an increase in the temporary sales office with parking impervious area and a decrease in a portion
of the boat storage impervious area. This aggregate wiL result in an increase in impervious area
totaling 817 square feet of the 89,024 square feet of area allocated for future development.
The following is a summary of the impervious area modifications:
Sales Office with Parking: 9817 SF
Boat Storage Area: less 9000 SF
Added Impervious Area: total 817 SF
A check for the express fee of One Thousand Dollars ($1,000.00) is also included with this
correspondence.
If additional information is needed or you have any questions, please call.
Sincerely,
LCAROLINA ENGINEERS,
CARL C..HUDDL , P.E.
Project Engineer
Enclosure(s): 2
PO Box 1595, New Bern, NC 28563, Tab. [phone], Fax. [phone],

CAROLINA ENGINEERS, P.A. 1413
P.O. BOX 1595
NEW BERN, NC 28563-1595 56-112/531
DATED —� �. Zo 06 01901
TO THE
PAY
ORDER OF �V-TU CA?-b1.i,JP, G PT. I? q V-gsoJI&�C-5 $ Gf3
)") �` �L)GIA,3� Ar5'7 $ a DOLLARS
BBUCAROLINA ENGINEERS, P.A.
BRANCH BANIDNG AND TRUST COMPANY
NEW BERN, NORTH OAROLINA c/"�
FOR....... ......... ...._ __.._ _ ......._ ��_... _.. _. _"�'
l:053 10 L &%: L L9 L066983i1'
RECEIVED
JAN 1 S 2006
BY:s�v�o� 5 6Pe

Additional impervious area for sales office @ Cannonsgate
Parking 9817 sq.ft
impervious area for boat storage (before) 80000 sq.ft
impervious area for boat storage (now) 51000 sq.ft
less area for boat storage 9000 sq.ft
J AN 1 Z006

TRADER CONSTRUCTION CO.
MWE 252/633.2424 FAX [phone]
PO. DRAWER 1575
NEW BERN, N.C. 28563
October 12, 2005
Mr. Edward Beck
Regional Supervisor — Surface Water Protection Section
Division of Water Quality
NC Department of Environment and Natural Resources
127 Cardinal Drive Extension
Wilmington, NC 28405-3845
RE: Recorded Deed Restrictions Submission
Cannonsgate at Bogue Sound, Carteret County, NC
Permit Number SW8 050516
Mr. Beck,
S(0?050SKO
,',�-�005
Pursuant to State Stormwater Management Permit Number SW8 050516, Section II. Schedule
of Compliance #14 on page 4 of 5, Trader Construction Company is pleased to provide the
NCDENR — Division of Coastal Management on behalf of R.A. North Development, Inc. a copy
of the recorded Declaration of Protective Covenants, Restrictions, Easements, Charges, and
Liens for Cannonsgate at Bogue Sound.
If you have any questions or concerns please call_
Respectfully Submitted,
Trader Construction C`�ny
Carl C. Huddle, P.E.
Project Manager
cc: Randy Allen, President
R.A. North Development, Inc.

off.. .; or . -.pS::. �d ; w:<. - ••
f F r -
Melanie Arthur
CRRE
PH Date 07/12/2005
GR 1121146
Cannonsgate
at
COUNTY 43P
Time :11100:00
Page 1 of 43
Bogue Sound
NORTH CAROLINA, CAR7"15ERIET COUNTY
The foregoing certiffeate4s) of Notary Publio(e) i 61V
certified to tse correct. This instrurnent and this cert{fl.
cats• are duly registered at the dmta and time and In
fdloa Book and Pare shwwn on the ftrst Fags hereof,
/! ae Arlhu� €�egistt�; rut i]�,�g
' afar of Doeds ..
DECLARATION OF PROTECTIVE COVENANTS,
RESTRICTIONS, EASEMENTS, CHARGES, AND LIENS FOR
CANNONSGATE AT BOGUE SOUND
7/12105
BOOK—lUi— PA'%"3E - - 1-46--,aw
NOTE: THIS �[u"ECLARATION CONTAINS BINDING, IRREVOCABLE

AGREEMENT TO ARBITRATE AND IS SUBJECT TO ARBITRATION
r'` e
PURSUANT TO THE STATE CODE STATUTE OR UNIFORM
ARBITRATION ACT THAT IS APPLICABLE REGARDING BINDING
ARBITRATION.
DECLARATION OF PROTECTIVE COVENANTS RESTRICTIONS,
EASEMENTS, CHARGES AND LIENS FOR CANNONSGATE AT ROGUE
SOUND
E3.00K-L.U-[----- P'ftn!

NOTE: THIS DECLARATION CONTAINS BINDING, IRREVOCABLE AGREEMENT TO ARBITRATE AND IS SUBJECT TO
ARBITRATION PURSUANT TO THE STATE CODE STATUTE OR UNIFORM ARBITRATION ACT THAT IS APPLICABLE
REGARDING BINDING ARBITRATION.
STATE OF NORTH CAROLINA ) DECLARATION OF PROTECTIVE
COVENANTS, RESTRICTIONS, EASEMENTS,
COUNTY OF CARTERET ) CHARGES AND LIENS FOR
CANNONSGATE AT
. BOGUE SOUND
THIS DECLARATION made by R.A. NORTH DEVELOPMENT, INC., a North
Carolina corporation, hereinafter referred to as the "Declarant":
WITNESSETH:
WHEREAS, the Declarant is the owner of the real property more particularly described
below, and desires to develop thereon a residential subdivision (hereinafter, together with any
property added thereto, called "the Subdivision"); and
WHEREAS, the Declarant, in its discretion, may incorporate any additional real
property as additional phases of the Subdivision and bring same under this Declaration but
shall be under no obligation to do so; and
WHEREAS, the Declarant desires to maintain design criteria, location and construction
specifications, and other controls to assure the integrity of the Subdivisions and
WHEREAS, each owner of a Lot in the Subdivision will be required to maintain and
construct homes in accordance with the design criteria herein contained; and,
WHEREAS, the Declarant desires to provide for the preservation of the values and
amenities in the Subdivision and for the maintenance of common areas and facilities, if any,
and to this end, desires to subject the real property described in-Ezhi it " " to the covenants,
restrictions, easements, charges and liens hereinafter set forth, each and all of which is and are
for the benefit of said property and each owner thereof, and,
WHEREAS, the Declarant has deemed it desirable, for the efficient preservation of the
values and amenities in the Subdivision, to create an association to which will be delegated and
assigned the powers of maintaining and administering the Subdivision (as defined hereinafter),
promulgating rules and regulations for the usage of common areas in accordance with this
Declaration, administering and enforcing the covenants and restrictions and levying, collecting
and disbursing the assessments and charges hereinafter crewed; and,
WHEREAS, the Declarant has caused to be incorporated under the laws of the State of
North Carolina, a not -for -profit corporation to be known as Cannonsgate at Bogue Sound
Homeowners Association, Inc. for the purpose of exercising the aforesaid functions,
NOW THEREFORE, the Declarant declares that the real property described in Exhibit

"A", annexed hereto and forming a part hereof, is and shall be held, transferred, sold,
conveyed and occupied subject to the North Carolina Planned Community Act codified n
i Chapter 47F of the North Carolina General Statues and subject to the covenants, restrictions,
easements, charges and liens hereinafter set forth.
Definitions
S-e-CMILL. The following words when used in this Declaration or any Supplemental
Declaration (unless the context shall prohibit) shall have the following meanings:
(a) "Additional Property" shall mean and refer to additional real estate that the
Declarant, in its discretion, may incorporate as additional phases of the Subdivision and
bring same under this Declaration but shall be under no obligation to do so.
(b) "Annual Assessments" or "Assessments" shall mean an equal assessment
established by the Board of Directors for common expenses as provided for herein or
by a subsequent amendment which shall be used for the purpose of promoting the
recreation, common benefit and enjoyment of the Owners and occupants of all Lots and
the operation, maintenance and repair of the Common Area.
(c) "Architectural Review Committee " or "ARC" shall mean and refer to the
Architectural Review Committee established under Article VIII hereof.
(d) "Association" shall mean and refer to Cannonsgate at Bogue Sound Homeowners
Association, Inc., its successors and -assigns, a not -for -profit North Carolina
Corporation.
(e)"Common Area and/or Private Open Space " shall mean and refer to all common
area and those areas of land, including the facilities to be constructed thereon, if any,
shown and specifically designated as such on any subdivision map of the Subdivision
(as hereafter defined) filed by Declarant or by any other means so designated by
Declarant. All areas not included in one of the 525 proposed lots and to be designated
as common area and or private open space will be under control of the Homeowners
Association. Such areas are intended to be devoted to the common use and enjoyment
of the members of the Association as herein defined, and are not dedicated for use by
the general public. However, no general plan or plat of the Subdivision showing
additional property or adjoining areas which may later be developed as additional
phases of the Subdivision shall cause such areas to be included as Common Area nor
shall the Association or any Owner be entitled to any right, title or interest therein
unless and until such adjoining areas shall have been formally included as a part of the
Subdivision by the Declarant pursuant to the terms hereinafter contained. Subject to
the provisions of Article VI hereof, existing and future roads and right-of-ways,
alleys, private open space, private lanes, greenways, median strips, cul-de-sac centers,
planting areas, clubhouse, community swimming pool, tennis courts, observation deck,
recreational areas, entrance walls and signage, electronic privacy gate, mail box
facility, gate house, ponds, recirculation water ponds, lakes, open space, waji ag trans,
boat storage, boat launch (subject to regulatory approval), and any other areas or
BOOK- L I a t

facilities, if any, designated as "
Common Area and/or Private Open Space" on the plat
` of the Subdivision referred to in Exhibit "A" hereto shall become Common Area upon
conveyance by Declarant to the Association.
Provided however, the recording and reference to said plat shall not in and of itself be
construed as creating any dedications, rights or easements (negative reciprocal or
otherwise), all such dedications, rights and/or easements being made only specifically
by this Declaration, any amendment or supplement hereto or any deed of conveyance
from Declarant, its successors or assigns.
(f)"Declarant" shall mean and refer to R.A. North Development, Inc., a North Carolina
corporation, its successors and/or assigns.
(g.1 "Declaration" shall mean and refer to this Declaration of Protective Covenants,
Restrictions, Easements, Charges and Liens for Cannonsgate at Bogue Sound, as it may
be amended from time to time.
(h) "Dwelling" shall mean and refer to the completed single family home located upon a
Lot.
(i)"Governing Documents" shall mean and refer to the Declaration, the Articles of
Incorporation of the Association, the By -Laws of the Association, the Architectural
Guidelines ("Guidelines") the Application for Preliminary Architectural Review, the
Application for Final Architectural Review, Cannonsgate at Bogue Sound Guidelines
Pattern Book, Cannonsgate at Bogue Sound Approved Plant List and the Rules and
Regulations of the Association.
0) "Lot" shall mean and refer to any lot of land intended for residential use, with
delineated boundary lines appearing *on any recorded subdivision map of the
Subdivision with the exception of any Common Area shown on any plat of the
Subdivision. In the event any Lot is increased in size by subdivision or combination,
the same shall nevertheless be and remain a Lot for the purposes of this Declaration.
This definition shall not imply, however, that a Lot may be subdivided if prohibited -
elsewhere in this Declaration.
(k) "Member" shall mean and refer to an Owner who is a member of the Association as
provided in Article V hereof.
(1)"Owner " shall mean and refer to the record owner, whether one or more persons or
entities, of the fee -simple title to any Lot(s) later developed, but shall not mean or refer
to any mortgagee or subsequent holder of a mortgage, unless and until such mortgagee
or holder has acquired title pursuant to foreclosure or any proceedings in lieu of
foreclosure. Said term "Owner" shall also refer to the heirs, successors and assigns of
any Owner. The Declarant shall not be deemed an Owner.
(m) "Setback " shall mean an area along the boundary of a Lot where no building or
Other structures including, without limitation, swimming pools, fences, patios or decks
shall be permitted, without the express written pel-Imssion of Declarant.

(n)"Single Family Area" shall mean and refer to any portion of the Subdivision
designated as such by the Declarant in which Lots are for single family residential use.
(o) "Subdivision " shall mean and refer to all property including Lots, Common Area
and/or Private Open Space as are subject to this Declaration, and which are described
in Exhibit "A" together with any additional phases that may be developed and
specifically submitted to the provisions of this Declaration pursuant hereto.
(p) "Subsequent Amendment" or "Supplemental Declaration " shall mean an amendment
to this Declaration which adds property to this Declaration and makes it subject to the
Declaration. Such Subsequent Amendment may, but is not required to, impose,
expressly or by reference, additional restrictions and obligations on the land submitted
by that Subsequent Amendment to the provisions of the Declaration.
(q)"Waterfront Lot" shall mean those Lots whose boundary lies on the Intracoastal
Waterway or any lot whose boundary lies on Common Area that contains a body of
water.
(r) "Turnover Date" shall have the meaning as set forth in Article V hereof.
Conformity andApproval of , t C- r-U. No structure, fence, sidewalk,
wall, swimming pool or other improvement shall be placed or altered on any Lot except in
accordance with the provisions of this Declaration.
ct' 2. Subdivisin of of . No Lot shall be subdivided except as hereinafter
provided and no building or residence, including porches, swimming pools or projections of
any kind, shall be erected so as to extend over or across any of the Setbacks as hereinafter
established except as herein provided. Provided, however, two or more Lots may be combined
to provide one building site in accordance with this Declaration.
Leef- Increased ize o Lott. A Lot or Lots may only be subdivided provided the
effect is to increase the size of both of the adjoining Lots. In such cases, the Declarant may
alter the building lines to conform. Should the Owner or Owners of any Lots and/or portions
of Lots which have been combined for a single building site subsequently wish to revert to the
original plan of subdivision, or make any other combination which would not be in violation of
this restriction, such may be done only if the written consent of the Declarant its successors or
assigns is first had and obtained. In such instances, the adjoining Lot Owners, or other
Owners in the subdivision do not have the right to review, pass on or interfere with such Lots
rearrangement, as such rights shall be exclusively that of the Declarant or any successors or
assigns to whom the Declarant may expressly have transferred such rights, but the Owner of
any other Lot in the subdivision does not, by virtue of such status as an Owner-, become any
such successor or assign. More than one Lot may be combined to form one Lot with the
written consent of Declarant, its successors and assigns. Upon combination of Lots, the
building line requirements prescribed herein shall apply 'and the easements reserved herein
shall be applicable to the rear, side and front Lot lines of such lot as combined. The resulting

' `building site and structures erected thereon must otherwise comply with these Restrictions and
the new property line of the resulting building site shall be used to compute the set -back lines
as set forth herein. Annual assessments are applicable on each individual Lot as originally
recorded by Declarant regardless of whether two or more Lots are combined by an owner to
form one. Where a Lot is subdivided to increase the size of two adjoining lots, annual
assessments are applicable to the owner of each subdivided portion. The assessment on the
subdivided portions for each Lot Owner is based on the percentage of acreage acquired from
the subdivided Lot.
ect' 4. Alteration of Setbac T inP in a est nterP�t of DeyeI p e Where
because of size, configuration, natural terrain, or any other reason in the sole opinion of the
Declarant, it would be in the best interest of the development of the Subdivision that the
setback lines of any Lot should be altered or changed, then the Declarant reserves unto itself,
its successors or assigns, and no other, the right to grant a variance to the Lot Owner or in the
case of a Lot owned by Declarant, the Declarant may change said setback lines to meet such
conditions. The Declarant specifically reserves the right to transfer and assign this right of
approval to the Architectural Control Committee hereinafter established.
ecti 5. Completion of Tmprove —to . With the exception of construction which is
interrupted or delayed due to strikes, national emergencies, or physical damage to the work in
progress (such as damage due to fire, lightning, windstorm, flood, hail, riot or civil
commotion, explosion, or theft), any Dwelling constructed upon a Lot must be completed
within one (1) year subsequent to commencement of construction, except with the written
consent of Declarant, its successors or assigns, or, if the Declarant so designates, by the ARC.
The Owner of the Lot on which the improvements are being constructed shall at all times keep
public and private streets contiguous to the Lot free from any dirt, mud, gravel, garbage, -trash
or other debris which might be occasioned by construction of the improvements. During
construction, the Owner shall require its contractors to maintain the Lot upon which such work
is being done in a reasonably clean.and uncluttered condition and, to the extent possible, all
construction trash and debris shall be kept within refuse containers. Upon completion of
construction, the Owner shall cause its contractors to immediately remove all equipment, tools,
and construction material, and debris from the Lot.
In the event that completion of the Dwelling, outbuildings, or other improvements on any Lot
is not completed within one year, and it is determined that construction progress has
diminished to such an extent that completion of the Dwelling, outbuildings, or other
improvements is unlikely within 120 days, notice will be given to the Owner that the Owner
has the obligation, within 30 days, to remove all construction work in progress, including
without limitation, the foundation and all building improvements and all stored building
materials, and fill and grade the lot so that it is restored to its natural grade level. The
Declarant_ or the Association (after termination of Class B membership) shall have the right to
undertake this work upon Owner's failure to do so and charge the cost to the Owner and place
a lien upon the Lot upon Owner's failure to pay these charges.
No building under initial construction shall be occupied until construction is completed
and all necessary approvals of the ARC and any governmental authorities have been
obtained.
Section 6. Residential Use of Lots . All Lots shall be used for residential purposes
Bob IK� PAGlLiCo ..N„

lexclusively except for limited home office uses permitted under Section 11 of this Article II.
No structures, except as hereinafter provided, shall be erected, altered, placed or permitted to
remain on any Lot other than one (1) detached single family Dwelling constructed in
accordance with the Plans and Specifications herein defined in Article III. No timesharing,
interval ownership or other related ownership scheme where the right to exclusive use rotates
among multiple owners or members of the program shall be permitted. Ancillary buildings or
other out b�:ildings shall conform to the architectural scheme and appearance of the Dwelling.
In addition, no leasing or rental of any Dwelling shall be permitted having a duration of less
than 6 months nor shall less than the entirety of any Dwelling be leased. Declarant or its
assignee may, however, maintain a sales office, models and construction office upon one or
more Lots until all Lots to be located within the Subdivision have been sold.
Section 7 Maintenanc aria T ards oUL. It shall be the responsibility of each
Owner to prevent the development of any unclean, unsightly, or unkept condition of buildings
or grounds on such Lot which shall tend to substantially decrease the beauty of the
neighborhood as a whole or the specific area. Each Owner shall maintain such Owner's Lot
and shall keep underbrush and weeds mowed. Such maintenance obligation shall also extend
to the portion of any Common Area and/or public street right-of-way located between the
boundary lines of each Lot and any pavement within such street right-of-way, and to the
portion of any Common Area located between the boundary line of each Lot and the shore of
any lake, pond, recirculation water pond, stream or other body, of water located within such
Common Area.
Landscaped and grassed areas on each Lot as designated by the ARC in its sole discretion shah be watered by means of an automatic underground sprinkler system which shall be employed
so as to keep all vegetation in excellent condition. Landscaping as approved by the ARC shall
be installed prior to occupancy of the building improvements on each Lot. Occupancy prior to
completion of landscaping shall require the written approval of the ARC, shall be for good
cause only, and shall be no earlier than ninety days prior to completion of landscaping. To
ensure that all landscaping will be completed in accordance with the approved landscape plan,
Owner shall post a performance bond with the ARC in the manner set forth in the Architectural
Review Guidelines in the amount of $1,000.00 or such other sum as is established by the ARC
from time to time.
Section g u' c . No noxious; unlawful or offensive activity shall be carried on
upon any Lot, nor shall anything be done thereon tending to cause embarrassment, discomfort,
annoyance or a nuisance to the neighborhood. No plants, poultry, animals, junk, junk
automobiles, or devices or things of any sort, the normal activities or existence of which are in
any way noxious, dangerous, unsightly, unpleasant or of a nature as may diminish or destroy
the enjoyment of other property in the neighborhood shall be placed, kept or maintained.on any
'Lot. Without limiting the foregoing, exterior lighting may not be so installed on any Lot so as
to illuminate any portion of a neighboring Lot or to shine into any window or otherwise enter a
Dwelling located on an adjoining Lot. Bottled gas containers and oil tanks shall be screened
from public view. No lot shall be used for storage of building materials prior to the issuance
of the building permit for the primary residence.
SfIct-iml-9—Exclusion of Above-Sa U tilitiPc . All electrical service and telephone
lines shall be placed underground and no outside electrical. lines shall be placed over lead. No
exposed or exterior radio or television transmission or receiving antenna shall be erected,

`placed or maintained on any part of a Lot. Provided, however, that the normal service
pedestals, etc., used in conjunction with such underground utilities shall be permitted within
the Subdivision. Overhead utilities shall be permitted during the construction period and until
utility companies can place them underground. "Satellite dish" antennas and similar equipment
in excess of 18 inches in diameter shallnot be allowed except in the rear yard (to the rear of
the Dwelling) and must to the fullest reasonable extent, be screened froLn view from adjoining
Lots. See Architectural Guidelines Article 4.20.
ct' Signs. No sign of any nature shall be placed on any lot without prior
written approval of the ARC.. No billboards or advertising signs of any charac
erected, placed, permitted or maintained on any Lot or improvemter. shall be
ent thereon except as herein
expressly permitted. "For Sale", or similar signs may be permitted on a Lot, provided the
sign complies with material, size, and color guidelines promulgated by the ARC. In addition,
it shall be permissible for the Association to have a sign located on the Common Area, if the
design, size and location of such sign is approved by Declarant, prior to its erection. No other
sign of any kind or design shall be allowed. Declarant as developer reserves the right at his
sole discretion to erect temporary or permanent signs on Lots and Common Area identifying
owner's names, street names, common area, traffic signs including stop signs and speed limit
signs, and any other signs that will aid in the development of the subdivision including signs
advertising the Subdivision and/or model homes. No sign shall be permitted within the road
right-of-way. Should it be determined that a sign erected on a Lot or in the Common Area
does not conform to ARC guidelines, the Association, the Declarant, its agents or assigns shall
have the right from time to time to enter said Lot without any liability for damage, wrongful
entry, trespass or otherwise for the purpose of removing
the rming sign.
Declarant or the Association has the right from time to time oorevise othe rules and rel ulat'
regarding signs in order to meet the needs of the community or satin ang loans
regulations. For additional regulations see Architectural Guidelines Article 4.31�ental
ct' Prohibition Again,t iness Arm. No business activity, not limited to, a rooming house, boarding house, gift shop, antique shop, landscape bu doesg but
clients or members of the pubic regularly come to any Lot or any siprofessional office or beauty shop or the like or any trade of any kind whatsoevgnificant business traffic is
er (in which
generated in the Subdivision) shall be carried on upon any Lot or Lots. Provided, however,
that nothing contained herein shall be construed so as to prohibit use of any portion of a
residence as a home office, so long as no clients or members of the public regularly come to
any Lot and no significant business traffic is generated in the Subdivision on account of such
use. Provided further, however, that nothing contained herein shall be construed so as to
prohibit the construction of houses to be sold on said Lots or the showing of said houses for
the purpose of selling houses in the Subdivision. Nothing herein shall be construed to s for
vent
the Declarant or its permitees from erecting, placing or maintaining signs, structures and
offices as it may deem necessary for its- operation and sales in the subdivision.
ct' y i i g nd rilling . No derrick or other structure designed for use in
boring for oil or natural gas shall be erected, placed or permitted upon an
ar
Subdivision, nor shall any oil, natural gas, petroleum, asphalt or hydroca bon products or
materials of any kind be produced or extracted from the premises.
' a e i . Each Lot Owner shall provide garbage receptacles or
similar facilities in accordance with reasonable standards established by the Declarant, or a

'roll -out garbage rack of the type approved by the Declarant, which shall be visible from the
streets on garbage.. pickup days only. No garbage or trash incinerator shall be permitted upon
the premises. No burning, burying or other disposal of garbage on any Lot or within the
Subdivision shall be permitted (except licensed contractors may burn construction debris
during the period of construction of improvements on any Lot if they have been properly
permitted). Provided, however, that the Declarant or the Association. shall be permitted to
modify the requirements of this Section 13 where necessary to comply with orders of governmental bodies.
ct' . Temporary 4tn1c t . No structure of a nonpermanent character shall be
placed upon any Lot at any time, provided, however, that this prohibition shall not apply to
shelters used by the contractors during construction of the main Dwelling house, it being
clearly understood that the latter temporary shelters may not, at any time, be used for a
residence or permitted to remain on the Lot after completion of construct
ARC. ion. Prior to
placement on any lot, all temporary construction shelters must be approved in writing by the
e-c ' Other S rnctU_m No home, tent (other than small overnight tents used by
children which remain in place for less then 24 hours), barn, shed, shack, trailer, mobile
home, modular home, tree house or other similar out -building or structure shall be placed on
any Lot at any time either temporarily or permanently, except as provided in Section 14 above,
nor shall above ground swimming pools be permitted.
ctim-LL Qotheslinems. No clotheslines or drying yards shall be located upon the
premises so as to be visible from any Common Area or from any adjoining property or Lot.
ct' n 17. Vehicles and Of -Street Parkin
. There are areas where permanent on
street parking is designated. In non -designated areas, temporary on street parking may be
allowed for 24 hours maximum. Each Owner shall provide for parking of vehicles off alleys,
private lanes, streets and roads within the Properties. Except as otherwise specifically
provided for in this Declaration, no parking shall be permitted in or along any of the alleys,
private lanes or streets in the Properties. There shall be no outside storage or parking upon
any portion of the Properties of any mobile home, modular home, trailer (either with or
without wheels), motor home, tractor, truck (other than personal -use pick-up trucks and sport
utility vehicles), commercial vehicles of any type (including, without limitation, cars or trucks
with advertising signs or lettering), camper, motorized camper or trailer, boat or other water
craft, boat trailer, motorcycle, motorized go-cart, golf carts or other related forms of
transportation devices, except if adequately screened from view or otherwise permitted in
writing by the Declarant or the Association. No Owners or other occupants of any portion of
the Properties shall repair or restore any vehicle of any kind upon or within a property subject
to this Declaration except (i) within enclosed garages, or (ii) for emergency repairs, and then
only to the extent necessary to enable the movement thereof
Violators of the prohibitions contained in this Section 17 shall besubject to havingdtheir
vehicles towed, at the Owner's expense, by or at the direction of the Association, and to the
levy of fines by the Association in such amount as may be determined from time to time by the
Board of Directors. Additional. rules and regulations regarding use, repair and storage of
vehicles in the Properties may be promulgated from time to time by the board.

Section 1 R Sewer ,tea , I ili k . No septic tanks or surface toilets are permitted in
grantee of any Lot assumes all responsibility for obtaining all
the Subdivision. Portable toilets will be allowed only during construction. If applicable, the
recessary at Bogue Sound Subdivision is to be served by West Carteret Water Corporationand�nonsgate
centralized private waste water system. Buyer understands and agrees that they will be
responsible for the then applicable water meter, tap, and impact fees; sewer tap fee and electric
deposit fee.
Section 19 Firearms and Fireworks No firearms or fireworks of any variety shall be
discharged upon the Lots or Common Area. The term "firearms" shall include, without
limitation, guns, "B-B" guns and pellet guns.
Section 0 Animal and Pecs No animals, wildlife, livestock, reptiles, or poultry of
any kind shall be raised, bred, or kept on any portion of the Subdivision, except that dogs,
cats, or other usual and common household pets not to exceed a total of three (3) may be
permitted in a Dwelling. Dogs shall be leashed when on the Common Area. No dogs shall be
permitted to roam the property and the Association may have strays and dogs that are not
leashed and are found off their owner's lot picked up by governmental authorities. Those pets
which, in the sole discretion of the Association, endanger health, make objectionable noise, or
constitute a nuisance or inconvenience to the Owners of other Lots or the owner of any portion
of the Subdivision shall be removed upon request of the Association. No pets shall be kept,
bred, or maintained for any commercial purpose. Pets shall only be permitted on the Common
Area if such portions thereof are so designated by the Association. All persons bringing a pet
onto the Common Area shall be responsible for immediately removing any solid waste of said
pet.
e t' 21. D-LbLemwayL. All private driveways, right-of-ways, and culverts, if
required, installed therein, shall be of a type and quality approved by Declarant or the ARC
and the grade of same shall be set by Declarant or the ARC.
Section 22, -a xe Declarant shall provide locations for cluster mailboxes for the
community. No other mailboxes and no paper boxes are allowed.
e t' Garages . All dwellings built on Lots shall be required to have at least a
two car. garage. No garage shall be converted to living area without prior ARC approval. If
approved, lots may have a detached garage as long as the garage is constructed of materials
similar to the dwelling and is compatible in design. Garage doors must be closed except when
entering or exiting said garage.
S&--ctim 24. Wells and Irrigation stems . No sprinkler or irrigation systems of any
type that draw upon water from creeks, streams, rivers, lakes, ponds, wetlands, canals, or
other ground or surface waters within the Subdivision shall be installed, constructed, or
operated within the Subdivision by any person, unless prior written approval has been received
from the Declarant, This Section shall not apply to the Declarant, and it may not be amended
without Declarant's written consent so long as Declarant has the right to add property to the
Subdivision in accordance with Article X Section 2 of this Declaration. No private water wells
or individual drinking water supply system shall be permitted upon any Lot.
Section 25- Pond akP� anri RP�,,C atiOi� W Pr p,,1.a5*T
recirculation water ponds shown on any map of the Subdivision shall be used,forr swimming,

boating, diving or fishing, nor shall the use of an.y personal floatation devices, jet skis or other
such items be permitted on any pond or lake except as permitted by the rules and regulations
of the Association. No piers, docks or barriers shall be constructed on any portion of the
ponds or lakes nor attached to the shoreline or banks thereof, .except those that may be
constructed by the Declarant or as approved by the ARC. No Lot Owner may use or permit to
be used any water from any ponds, lakes or other bodies of water for irrigation of such
Owner's Lot unless expressly approved in writing by the Declarant, its successors or assigns
or ARC. Permission may be granted in writing at the sole discretion of the Declarant, its
agents or assigns or ARC to allow lot owners to use water from the recirculation water ponds
or lakes for irrigation purposes. The amount of water and/or when water may be removed will
be designated. Neither the Declarant nor Association shall be responsible for any loss, damage,
or injury to any person or property arising out of the authorized or unauthorized use of ponds,
lakes, or recirculation water ponds within the Subdivision. No dredging or filling shall be
undertaker, on any property adjacent to any water body. The Declarant makes no warranties
whatsoever as to the water level in the recirculation water ponds, lakes, and ponds nor to their
continued existence beyond the time that the construction of them has been completed and they
are filled with water and turned over to the Association. There is to be no interference with
pumps, fountains or waterfalls. See Article IV for additional provisions regarding ponds and
lakes. Declarant reserves a temporary construction easement of forty (40) feet in width outside
of all Common Areas and Common Areas around all ponds and lakes along with the right to
clear and grade the land and enter thereon, without the risk of trespass for the purpose of
constructing, clearing or grading the Common Area and ponds and lakes. The temporary
construction easement will expire September 1, 2007.
ect' n 2 Artificial Ve PtatinnExterior Scul =e and Similar Items
. No artificial
vegetation with the exception of specialty use areas such as common area putting greens shall
be permitted. Exterior sculpture, fountains, gazebos, arboretums, flags, and similar items are
subject to Declarant's or ARC's prior approval; provided, however, that nothing contained
herein shall prohibit the appropriate display of the American flag.
Section-2-7 PIav Structures and Yard Acressn•�. All yard accessories and play
structures, including basketball backboards and any other fixed game, shall be subject to ARC
review and prior approval.
Section 28_ energy Conservation Ed ipme t . No solar energy collector panels or
attendant hardware or other energy conservation equipment shall be constructed or installed on
any Lot unless it is an integral and harmonious part of the architectural design on a structure,
as determined in the sole discretion of Declarant. Under no circumstances shall solar panels be
installed that will be visible from any street in the Subdivision.
section 2 e Trees may be reproved without prior written approval within the
building foundation area of the main Dwelling and within twenty (20) feet of the main
Dwelling provided that the location of the house has been approved in writing by the ARC or
the Declarant. Except as provided for in this Section and in Article VIII of this Declaration,
no tree six (6") inches in diameter or greater at ground level shall be cut, removed or
intentionally damaged on any Lot without the prior written approval of the Architectural
�� - ,�-�

`Review Committee.
Section all. Elevation nd D dnE, a hand No changes in the elevation,
topography or drainage characteristics of any Lot within the Subdivision shall be made without
the prior written approval of the Declarant or the Association Board of Directors.
Section ' . Fib No individual piers will be allowed on any lot located within the
Cannonsgate at Bogue Sound Subdivision.
e t' 2, &at Slips. There are to be no more than seventy five (75) boat slips
in the marina which is located within the Cannonsgate at Bogue Sound Subdivision. The
marina is not a community common area. Slips will be sold individually, subject to
availability, only to lot owners. Boat Slip owners will have the express right to sell their
exclusive right to use a particular Boat Slip to another Cannonsgate lot owner. When a lot
owner, who has an exclusive right to use a particular Boat Slip, sells their lot, the exclusive
right to use the Boat Slip shall run with the title to the land and shall be an the
iv
such lot. In its sole discretion, the Declarant/Developer will set up a Boat Slip Association and
select the to
manner in which slips will be sold and the manner in which the Marina will be
operated in order to administer and maintain the facility. The use of the Boat Slip will be
subject to the terms and conditions of the Permit issued by the Division of Coastal
Management and the Declaration, Rules, Regulations, Covenants and Restrictions as set forth
by the Declarant.
CmtructiM W an 3pe";fLcaC=6
ect' n e 1 . All structures of every type and description shall be constructed,
placed or erected within the Subdivision in accordance with the provisions of this Article III
together with other applicable provisions of this Declaration. Only new construction of
residential buildings shall be permitted, it being the intent of this covenant to prohibit the
moving of an existing building or portion thereof on a lot and remodeling or converting same
into a Dwelling. All notes indicated on record plats must be adhered to.
&Q—tion 2. Size of Residences and T nt rover e . All residences to be constructed
upon any Lot shall have a minimum of 2500 square feet of enclosed heated living area
(exclusive of porches, decks and garages and other unheated spaces). No residence shall
exceed three and one half stories above ground level. For additional building height
regulations see Architectural Guidelines Article 5.3.
ec 'Setbacks . No building or structure, including porches, decks, swimming
pools or projections of any kind (including eaves), shall be erected so as to extend over or
across any of the Setback lines shown on the recorded plat of the Subdivision or as described
in the Declaration or any amendment thereto so as to be nearer to the Lot boundary line than
such Setback line. See Article 4-Site Requirements of Architectural Guidelines. In order to
preserve particular view corridors, or to account for unusual topography, natural site features,
streetscape or other extenuating circumstances, in its sole discretion, the Declarant and/or
ARC reserves the right to require alternate setbacks and to determine house and structure
locations at the time of the ARC review.

Y S io 4• Fences_ Walls and nimal pM . Any fences, walls or animal pens sought
to be constructed on any. Lot shall require the specific written approval of the Declarant or the
ARC as to location, size, .composition, configuration, exterior materials, color and other
similar matters, which approval may be withheld for purely aesthetic considerations. No
hedge, shrubbery or vegetation of any kind shall be grown or placed in the form of a fence on
any Lot or Lots across the front street line of the said Lot or Lots or on either of the side lines
of the said Lot or Lots until such time as the Declarant approves same as to location.
cti Prohibited ui ding_Materials . Exposed exterior walls composed of
concrete block, imitation asphalt brick siding, tar paper, and imitation asphalt stone siding
shall be .prohibited.
AdditionalprQvisions as to ■
u r Areas and ponds
5—eLtion 1. Buffer Areas . There shall be a Buffer Area twenty-five (25') feet in width
along the external boundary of Cannonsgate at Bogue Sound along the Lot line of any Lots that
adjoins property located outside of Cannonsgate at Bogue Sound. No cutting or removal of
trees, shrubbery, or landscaping of any kind shall be made within any Buffer area shown on
any recorded plat of the Subdivision, except with the. prior written consent of Declarant or the
ARC. As the provisions contained herein are for the preservation of the aesthetics and privacy
of the Subdivision, in the event of the destruction or removal of any tree or landscaping within
the aforesaid Buffer (except destruction caused by act of God), t�'re Ownei of the Lot upon
which such tree, shrub, or landscaping was located will cause same to be replaced or restored
with a comparable size and .type of tree or landscaping, at the Lot Owner's sole expense.
e f . D-c—clarant's Rights and Easements . Declarant, as developer, hereby
reserves and is granted a maintenance easement in favor of itself, its successor and assigns
over, under, onto and across all Buffer .Areas for the purpose of maintaining, restoring, and
replacing trees, shrubs, and landscaping. The reservation of these easements shall not place
upon Declarant any obligation to perform such activities and such performance shall lie solely
within the discretion of Declarant. The within rights of Declarant are iri addition to the rights
and obligations of Association set out in Article VI, Section 4 of this Declaration. The
easements herein reserved and granted are perpetual, non-exclusive and shall run with title to
the Lots.
Section 3. Rights of F.nfor .emen,L. In the event an Owner does not replace trees and/or
restore landscaping as and when required under Section 1 above, Declarant and Association
may each enforce such Owner's obligations either by an action in specific performance or may
perform such work themselves and the cost and expense of such work and materials, shall be
due and payable by such Owner within seven (7) days of demand by Declarant or Association,
as the case may be. In the event such Owner refuses to make such payment as aforesaid, the
Declarant and Association shall have the right to bring an action for the collection of same plus
attorney's fees related thereto; and Association shall have the additional right to enforce
collection thereof in the manner provided under Article VII, Section 6 of this Declaration.
e 4. Ownership and GQr�trQl of Pnnris T ak�c and Rec wat Yo
s,i Culafinn 'T' r �� No right title or interest, including, without limitation, riparian rights, in any pond or lake

shall attach to or become an appurtenant to the title to any Lot by reason of or upon
conveyance of such Lot by Declarant unless such conveyance specifically includes such rights.
The Declarant reserves unto itself, its successors and assigns an easement upon and across
every Lot to maintain said ponds, lakes; and recirculation water ponds as more fully provided
in Article VI, Section 8 of this Declaration, and the Association shall be responsible for all
maintenance of said ponds and lakes, including but not limited to monitoring water 'Levels,
maintaining any fountains or aeration devices, and providing lake mitigation services (i.e.
algae control and aeration). Nothing in this section shall relieve Lot Owners of their
responsibility to maintain the area of their Lot bordering the Common Area around the ponds
and lakes. The Declarant, its successors or assigns hereby grants to the operator of the waste
water treatment facility the perpetual right to discharge recirculated water into the recirculation
water ponds and lakes located within the subdivision.
Section l e ' Every person or entity who is an Owner of any Lot which
is subjected by'this Declaration to assessment by the Association shall be a Member of the
Association. Membership shall be appurtenant to and may not be separated from ownership of
any Lot which is subject to Assessment.
SheQtkul. Board of Direc nrg . Initially, there shall be three (3) members of the Board
of Directors of the Association who shall serve un
til such time as their successors are duly
elected and agree to serve. The directors shall have annual meetings and other such meetings
as may be called for at -the request of the president of the Association, by a majority of the
directors, or as called for in the Bylaws. The foregoing notwithstanding, so long as the
Declarant, or its successors and assigns as Declarant, is the Class B Member, Declarant shall
select the Board of Directors and Declarant may select board members who are not Owners.
Aiticle of Tnrn,Toration and yL ws , The Articles of Incorporation of the
Association and Bylaws of the Association shall be adhered to in the administration and
operation of the Association.
S ction 4 Votin Right . The Association shall have two (2) classes of voting
membership:
-Clam-A. Class A Members shall be all Owners excepting the Declarant. Class A
Members shall be entitled to one (1) vote for each Lot in which they hold the interest
required for membership by Section 1 above. When more than one person holds such
interest or interests in any Lot, the vote attributable to such Lot shall be exercised as
such persons mutually determine, but in no event shall more than one (1) vote be cast
with respect to any such Lot. When a purchaser of an individual Lot or Lots takes title
thereto from the Declarant, such purchaser automatically becomes a Class A Member.
M= . The sole Class B Member shall be the Declarant. The Class B Member shall
be entitled to ten (1.0) votes for each Lot owned. Class B membership shall cease and
become converted to Class A membership „pon :he hap
following: pening of the earlier of the
1B.O.OKLLZI. PAGE lQC� --

(a) The date on which the Declarant no longer owns any part of the entire
Subdivision. or
(b) Ten (10) years from date of recordation of this Declaration; or
(c) At such time as Declarant, in -its sole discretion, voluntarily relinquishes
Class B Member status in writing.
From and after the happening of whichever of said events which occurs earlier, the
Class "B" Member shall be deemed to be a Class "A" Member and entitled to one vote for
each Lot owned in the manner provided above. The earliest to occur of (a) (b) or (c) shall be
referred to as the "Turnover Date".
e t' Member' Fas mPnt¢ o=..i. 1 t . Subject to the provisions of Section 3.
of this Article, every Member shall have a right and easement of enjoyment in and to the
Common Area, and such easement shall be appurtenant to and shall pass with the title to every
Lot. This right and easement shall be for use in common with all other such members, their
tenants, guests and invitees. In the event that Declarant incorporates additional land under the
provisions of this Declaration pursuant to Article X, Section 2 of dais Declaration, all Owners
of Lots within such additional phases shall have the same rights and privileges with regard to
use.of the Common Area as the Owners of Lots originally made subject to this Declaration.
SL-cti 2 Title to Commnn Ara nd/or Private O rr
covenants for itself, its successors and assigns, that within ten (10 years from -the date of . The Declarant hereby
recording of this Declaration, it will convey to the Association, by Quit -Claim Deed, fee.
simple title to the Common Area and/or Private Open Space upon the conditions set forth
herein, subject to those rights reserved unto to Declarant pursuant to this Declaration and to
the provisions of this Declaration.
In lieu of the conveyance provided for herein with regard to the alleys, private lanes,
streets and roads, Declarant may cause such alleys, private lanes, streets and roads to be
dedicated to any governmental entity, as provided for in Section 3 (a) hereof. In the event the
alleys, private lanes, streets and roads are dedicated to a governmental entity, acceptance of
such dedication may be conditioned upon the agreement of the Association that the Association
shall maintain, (at Association's sole cost and expense) any and all landscaping, shrubbery and
the entrance sign to the Subdivision which may be located within the dedicated areas.
Foment of following:
I'S � �=01tL t
shall be subhe rights and easements created hereby
subject to the following:
(a) The right of Declarant, and/or of the Association, to dedicate, transfer or
convey all or any part of the Common Area, with or without consideration (and subject
to the condition set out in Section 2 immediately above), to any governmental body,
district, agency or authority, or to any „ til, .- company; provided that no such
dedication, transfer or conveyance shall adversely limit the use of the Common Area by

the Members of the Association;
(b) The right of the Declarant, and/or of the Association
enance and inspection of lines and
, to grant and reserve
easements and rights -of -way for maintenance appurtenances
for public or private water, sewer, drainage and other utilities and servicincluding,
without limitation, a cable (CATV) or community antenna televes,
ision systesand
irrigation or lawn sprinkler systems, and the right of the Declarant to grant and reserve
easements and rights -of -way through, over and upon and across the Common Area for
the completion of the Subdivision, for the operation and maintenance of the Common
Area and perpetual non-exclusive easements for ingress and egress and utility
installation and maintenance to any other property of Declarant regardless of whether or
not made. subject to this Declaration;
(c) The right of the Association, as provided in its By -Laws to suspend -the
enjoyment rights of any Member in the Common Area (but not access to a Member's
Lot) for any period during which any assessment remains unpaid, and for a period not
to exceed thirty (30) days from any infraction of its published rules and regulations.
(d) The rights of the Association, in accordance with law, its Articles of
Incorporation and By -Laws, to borrow money for the purpose of improving the
Common Area and in pursuance thereof, to mortgage the same.
-SQction 4 Mainten nce .The Association shall at all times maintain all Common Area
in good repair, and shall repair or replace as often as necessary, any leased property, the
paving, drainage structures, street lighting fixtures, (if not maintained by utility company)
landscaping, entrance signage, community boat launch(subject to regulatory approval), and
other amenities situated on the Common Area and maintain and keep in a clean condition any
ponds which are Common Area. The Board of Directors acting by a majority vote shall order
all work to be done and shall pay for all expenses .including all electricity consumed by the
lighting located in the Common Area and all other common expenses. All work pursuant to
this Section and all expenses hereunder shall be paid for by such Association through
assessments imposed in accordance with Article VII. Excluded here from shall be paving and
maintenance of individual Lot driveways which shall be maintained by each Owner. Nothing
herein shall be construed as preventing the Association from delegating or transferring its
maintenance obligations to a governmental authority under such terms and conditions as the
Board of Directors may deem in the best interest of the Association.
ect' n Additional Structures . Neither the Association nor any Owner or any
group of Owners shall, without the prior written approval of Declarant, erect, construct or
otherwise locate any structure or other improvement in the Common Area.
Sect' Delegation
(a) F mitv . The right and easement of enjoyment granted to every Owner in Section 1
of this Article may be exercised by members of the Owners' family who occupy the residence
of the Owner within the Subdivision.
(b) Te—L. The right and easement of enjoyment granted to every Owner in Section 1
of this Article maybe delegated by the Owner to the Owner's tenants who occupy a residence

1.
' within the Subdivision.
(c) GULSIs -- Any recreational facilities and other Common Area, may be utilized by
guests of Owners or tenants subject to this Declaration, the By -Laws of the Association and to
the Rules and Regulations of the Association governing said use and as established by its Board
of Directors.
S—eQtion 7. Rules and &4ULatjML. The use of the Common Area by an Owner or
Owners, and all other parties authorized to use same, shall be at all times subject to such
reasonable rules and regulations as may be prescribed and established by the Association
governing such use, or which may hereafter by prescribed and established by the Association.
ec ' Easement for Utilities nd MaintenanrP . The Declarant reserves unto itself,
its successors and assigns, a perpetual, alienable and reasonable easement and right of ingress
and egress, over, upon, across and under the Setback areas, and easement areas on each Lot as
shown on the recorded map of the Subdivision and/or as set forth herein and over, upon,
across and under the Common Area for maintenance and/or the erection, maintenance,
installation and use of electrical and telephone wires, cables, conduits, sewers, water mains
and other suitable equipment for the conveyance and use of electricity, telephone equipment,
gas, sewer, water or other public convenience or utilities, including an easement for privately
owned television and other communications cable and equipment, and for maintenance of
ponds and the installation and maintenance of pumps, fountains or other equipment related to
said maintenance. Declarant may further cut draieways for surface water when such action
may appear to the Declarant to be necessary in order to maintain reasonable standards of
health, safety and appearance. These easements and rights expressly include the right to cut
any trees, bushes or shrubbery, make any grading of soil, or to take any other similar action
reasonably necessary to provide economical and safe utility or other installations and to maintain reasonable standards of health, safety and appearance. Declarant further reserves the
right to locate wells, pumping stations, and tanks on Common Area. It shall not be necessary
to obtain the consent of Owners of Lots adjoining any" existing utilities or pump stations. Such
rights may be exercised by the licensee of the Declarant but this reservation shall not be
considered an obligation of the Declarant to provide or maintain any such utility service. No
structures or other items, including walls, fences, paving or planting shall be erected upon any
part of the Subdivision which will -interfere with the rights of ingress and egress provided eluding, without
for
in this paragraph. Specifically, no Owner shall erect any structure, in
limitation, walls, fences or paving within any areas designated on the Plat of the Subdivision
and/or as set forth herein as a "Road Right of Way", "Utility Easement", "Common Area
and/or Private Open Space", "Drainage Ditch", or "Swale", nor shall any Owner change the
grade of any such easement area, provided however, that driveways may cross utility and
drainage easements at the front the Lots subject to prior approval of Declarant and that any
planting in easement areas shall not interfere with the applicable easement and shall be limited
to grassing and small shrubbery. Each Owner shall keep drainage ditches and swales located
on such Owner's Lot free and unobstructed and in good repair and shall provide for the
installation of such culverts upon such Lot as may be reasonably required for proper drainage.
Declarant may, at its sole option, convey any such drainage easements to an appropriate
governmental entity. The easements referred to in.this paragraph are, without limitation, those
shown upon.the recorded plai(s) of the Subdivision; as set out in easements of record; upon the
plans of the Subdivision; as set forth herein or which are located on, over or ender the ground.

In addition to the foregoing rights reserved -to Declarant, and not in limitation thereof,
Declarant further reserves unto itself, its successors and assigns, a perpetual, alienable
commercial easement and right of ingress and egress over, upon, across and under the
Common Area and all streets and roads within the Subdivision for the purpose of providing
drainage and utility installation, construction, reconstruction, and maintenance to adjacent
property now or hereafter owned by Declarant and for the installation and maintenance of any
pipes, drainways or other installations necessary for the foregoing and further for the
installation, maintenance, repair, replacement and operation of water lines and other utilities
which serve or shall serve property presently owned by Declarant. Declarant, its agents,
contractors, servants, employees and assignees may enter upon the easement areas for the
purposes of maintaining, repairing, replacing and operating such water lines and other utilities
and drainage facilities and for the purpose of installing additional utilities and drainage
facilities. Declarant further reserves unto itself, its successors and assigns, a perpetual,
alienable easement and right-of-way over, under and across those areas designated as "Road
Right of Way", "Common Area and/or Private Open Space", "Utility Easement", "Drainage
Ditches" or "Swales" on the plat of the Subdivision referred to in Exhibit "A" hereto for the
purpose of providing drainage of the Subdivision and lands now or hereafter adjacent to the
Subdivision or in the vicinity thereof (whether or not a part of the Subdivision) and for the
installation, repair and maintenance of pipes and other facilities necessary for such drainage.
Declarant, its agents, contractors, servants, employees and assignees may enter upon any of
the easement areas so designated on the recorded plat of the Subdivision for the purpose of
maintaining, repairing, replacing and operating any of the drainage facilities, pipes, ditches,
and drainage areas located thereon. The Owners of Lots on which such easements are located
shall not interfere in any manner with such easements or any of the facilities located therein or
the access. thereto. No Owner shall erect any structure or fence within such easement areas
without the prior written consent of Declarant. Declarant, its agents, employees and assignees
shall have no liability for damage which may occur to any structures, plants, trees, or other s
items which may be located in such utility and drainage easements and Declarant hall have no
obligation to replace any such structures which may be removed damaged due
maintenance, reto
pair or other work performed in such easement areas. Declarant further
specifically reserves unto itself, its successors and assigns, perpetual, alienable, commercial
easements over and under all Lots along an area 5 feet in width inside each side boundary line
of each Lot and 15 feet along the front and rear of each Lot for the purpose of installation,
construction, maintenance, repair, replacement, use and operation of utilities and utility
systems of all kinds (including but not limited to water, sewer, electric, and natural gas),
drainage (including but not limited to storm water and surface drainage) , and access. These
easements shall be in addition to, and not in limitation of, any and all other easements reserved
unto the Declarant herein. Declarant further reserves an easement of ingress and egress over
and across all streets and roads of the Subdivision which such easements are and shall be for
the purpose of ingress and egress to any property now owned or hereafter acquired by
Declarant, its successors and assigns whether or not such property is made a part of the
Subdivision and whether or not such property adjoins the Subdivision.
ion F__,asement.c frtr A °Po�'ation There is hereby reserved a general right
and easement for the benefit- of the Association, its Directors, officers, agents and employees,
including but not limited to, any property manager employed by the Association and any
employees of such manager, to enter upon any Lot or any portion thereof in the performance
of their respective duties. Except in the event of P ge
only during normal business hours, whenever practicable. Cief this easement is to be exercised

ec ' Sales_nffir_.es_ Rents Q is s PIanaPmPnt Offices and
COnstruction Office . Notwithstanding any provisions or restrictions herein to the contrary,
there ig hereby reserved for the benefit of Declarant, its successors and assigns, the perpetual,
alienable and transferable right and easement in and to the Subdivision for the maintenance of
signs, sales offices, rental offices, property management offices and construction offices,
together with such other facilities as in the sole opinion of Declarant reasonably may be
required, convenient or incidental to the completion, management, rental, improvement and/or
sale of Lots or Common Area. The Declarant also reserves the right to grant to any builder or
builders the right to operate and maintain builder sales offices at any location within the
subdivision upon such terms and conditions as the Declarant in they location sole discretion
may determine.
ect' MaintenanceEas=ent . Subject to the other terms of this Declaration,
there is hereby reserved for the benefit of the Declarant, the Association and their respective
agents, employees, successors and assigns an alienable, transferable and perpetual right and
easement to enter upon any unimproved portions of any Lot for the purpose of landscaping,
mowing, removing, clearing, cutting or pruning underbrush, weeds, stumps or other unsightly
growth and removing rubbish and trash, so as to maintain reasonable standards of health, fire
safety and appearance within the Subdivision; provided that such easements shall not impose
any duty or obligation upon the Declarant or the Association to perform any such actions.
Furthermore, there is hereby reserved for the benefit of the Declarant, the Association and
their respective agents, employees, successors and assigns, an alienable, transferable and
perpetual right and easement, but not the obligation, to Maintain and/or repair the outer
portions of any building, if the Owner shall fail to maintain such building in keeping with the
standards of the Subdivision. The cost of such maintenance and/or repair shall constitute a
special assessment against the Lot on which the building is located and the Owner of said Lot
as provided in Article VII herein.
Section 12. Road Constr, ction Raagm .nt . Declarant reserves a temporary
construction easement of twenty-five (25) feet in width along both sides and running parallel to
streets and roads, alleys and private lanes which easements shall expire eighteen months after
the particular road construction commences. Should it be necessary due to terrain and site
conditions, Declarant has at its sole discretion the right to extend the width of the temporary
construction easement.
(a) Each and every Owner of any Lot(s) or within the properties, by acceptance of a
deed therefore, whether or not it shall be so expressed in any such deed or other conveyance,
shall be deemed to covenant and agree, to pay to the Association: (i) annual assessments or
charges; and, (2) special assessments for capital improvements, and (3) individual assessments.
Said assessments to be fixed, established and collected from time to time as hereinafter
provided. The annual and special assessments, together with such interest thereon and costs of
collection thereof as are hereinafter provided shall be a charge on the land and shall be a

continuing lien upon the Lot(s) against which each such assessment is made. Each such
assessment, together with such interest thereon and costs of collection thereof as are hereinafter
provided, shall also be the personal obligation of the Owner of such Lot(s) at the time when the
assessment fell due.
(b) The Assessment levied by the Association shall be used exclusively for the
purpose of promoting the health, safety and welfare of Owners of Lots in the Subdivision, and
in particular for the improvement and maintenance of the Common Area and, upon
determination by the Board of Directors, improvements located outside of the Subdivision
(including, without limitation, identification and/or directional signage [including landscaping]
either exclusively or in cooperation with other association or parties) now or hereafter
designated or existing, including, but not limited to, the payment of taxes and insurance
thereon, and repair, replacement and additions thereof, the cost of labor, equipment,
materials, management and supervision thereof, the employment of attorneys, accountants,
property managers and other professionals to represent the Association when necessary and
such other needs as may arise. In the event that ]Declarant performs any of the foregoing
services for Association, including, but not limited to, accounting and bookkeeping services, it
shall have the right to receive a reasonable fee therefore and such shall not be deemed to be a
conflict of interest.
-&Ction 2. Amount and Pavment of Ann„al A4SPccmPrir The initial annual assessment
payable by each Owner shall be. $1,195.00 per Lot per calendar year. Upon the closing of the
initial sale of each Lot by Declarant, the purchaser of each Lot shall pay to the Association the
annual assessment prorated for the current year, The annual assessment may be increased or
decreased by the Board of Directors of the Association without a vote of the membership to an
amount not more than a twenty (20 %) percent difference in the annual assessment for the
previous year. A majority vote of each class of voting members of the Association must
approve an increase or decrease in the yearly assessment if the increase or decrease differs
from the assessment for the previous year by more than twenty (20 %) percent. In determining
the annual assessment, the Board of Directors of the Association shall appropriate an amount
sufficient to pay the costs of insuring, maintaining, replacing, protecting and operating the
Common Area and performing the other exterior maintenance required to be performed by the
Association under this Declaration including establishing and maintaining adequate reserves.
n
The Board shall fix the date of commencement and the amount of the Assessmet against each
Lot for each Assessment period (which shall be based on a calendar year), and shall, at that
time, prepare a roster of the Lots and Assessments applicable thereto, which shall be kept in
the office of the Association and shall be open to inspection by any Owner. Written notice of
the Assessment shall thereupon be sent to every Owner subject thereto. In the event that any
Lot is subject to an assessment for only part of a calendar year, then the amount of such
assessment shall be prorated based on the portion of the
is subject to an assessment. assessment period for which such Lot
In the event that two Lots are combined for the purpose of providing one building site,
such Owner shall pay an assessment for each of the original lots as if they had not been
combined.
Each annual Assessment shall be fully payable in advance on the 1st day of January
each year, but the Board of Directors of the Association shall have the option to permit
Payments in such installments and at' such times as it shall determine. The exact amount of each

annual Assessment shall be fixed by the Board of Directors of the Association.
The Association shall, upon demand at any time, furnish to any Owner liable for any
assessment, a certificate in writing, signed by an officer of the Association or by the
Association Manager, setting forth whether said assessment has been paid. Such certificate
shall be in recordable form and shall be conclusive evidence of payment status of any
assessment therein stated to have been paid.
This Section shall not be amended as provided in Article XIV, Section 11 of this
Declaration, to eliminate or substantially impair the obligation to fix the assessment at an
amount sufficient to properly maintain and operate the Common Area and perform the exterior
maintenance required to be performed by the Association under this Declaration.
S—ec—CLULL Special Assusments for In urance nd a ital I n�,
p rovemPn s . In addition
to the annual assessments, the Association may levy, in any assessment year, a special
assessment applicable to that year only, for the purpose of defraying unanticipated increases in
insurance costs and for unexpected costs associated with the repair or replacement of a
described capital improvement upon the Common Area, including the necessary fixtures and
personal property related thereto. Provided that any such assessment shall have the assent of at
least fifty-one (51 %) percent of the votes of each class of Members who are voting in person
or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to
all Members not less than thirty (30) days nor more than sixty (60) days in advance of the
meeting. The due date of any specified assessment shall be fixed in the Resolution authorizing
such assessment.
Sec ion 4. Individual Assessment , The Association may levy an individual assessment
upon any Owner to cover the costs incurred by the Association due to that Owner's failure to
maintain their Lot and improvements pursuant to the standards set forth in this Declaration, or
to reimburse the Association for any damage to any Common Area property caused by any
Owner or their tenant or invitee, or for any other purpose permitted by this Declaration or any
Supplemental Declaration (the "Individual Assessments"). fIndividual Assessments shall be
due and payable within thirty (30) days after written notice from the Association.
Section 5. Paid ProfesaWnal M&ua,9tL. The Board of Directors of the Association
may employ a professional manager or managerial firm to supervise all the work, labor,
services and material required in the operation and maintenance of the Common Area and in
the discharge of the Association's duties.
Section ect of Non -Payment of Assessment The personal Obligation of the
Owner: The Lien. Remedies of Association If any assessment (or reimbursement under
Article IV Section 2 of this Declaration) is not paid on the date when due, then such
assessment shall be deemed delinquent and shall, together with such interest thereon and cost
of collection thereof as are hereinafter provided, continue as a lien on the Lot(s) which shall
bind such Lot(s) in the hands of the then Owncr, his heirs, devisees, personal representatives,
successors and assigns. The personal obligation of the then Owner to pay such assessment or
reimbursement, however, shall remain his personal obligation and will also pass on to his
successor in title.
Any assessment not paid within thirty (30) clays after he due date shall be subject to
such late charges and shall bear interest at a rate per annum as shall be determined by the
,13.001 P A OLIL1

Board of Directors of the Association, with interest rate shall not exceed the highest rate of
interest allowed by law. The initial late charge imposed for late payment of any assessment is
$25.00 and shall be charged as to any assessment that is not paid within 30 days of its due
date. The initial interest rate for late payment is 18 % per year (1.5 % per month) which shall
commence to accrue on any assessment or other account balance that is not paid within thirty
(30) days of the date due. The initial date upon which liens may be filed, for failure to make
payment of assessments and other charges is thirty (30) days after the due date. The Board of
Directors may change the initial late charge, interest rate, due dates and lien assessment date
by majority vote of the directors.
In the event the Owner of any lot fails and refuses, after demand by the Association, to
pay any annual or special assessment, then the Association may bring legal action against the
then. Owner personally obligated to pay the same or may enforce or foreclose the lien against
the Lot(s) in the same manner as a mortgage is foreclosed; and in the event a judgment is
obtained, such judgment shall include interest on the assessment or reimbursement as above
provided and reasonable attorney's fees and late charges together with the costs of the action.
The Association may further file a notice of lien in the public records of Carteret County,
North Carolina and enforce assessment obligations as permitted by law, including without
limitation, by filing and foreclosing a claim of lien in accordance with the procedures set forth
in N.C.G.S. `47F-3-116, and/or by bringing an action at law against the Owner personally
obligated to pay the assessment. Each Owner, by his acceptance of a deed to a Lot, expressly
grants to and vests in the Association or its agents the right and power to bring such action or
foreclosure. Foreclosure may be accomplished in an action brought in the name of the
Association in the manner that a foreclosure of a mortgage or deed of trust would be brought
under Chapter 45 of the North Carolina General Statues, or as otherwise expressly provided by
law, and each Owner grants to the Association a power of sale in connection with any such
charge or lien. The Association, acting on behalf of the Owners, shall have the power to bid
on any Lot and to acquire and hold, lease, mortgage and convey the same. NO OWNER
MAY WAIVE OR OTHERWISE ESCAPE LIABILITY FOR THE ASSESSMENTS
PROVIDED FOR HEREIN BY NON-USE OF THE COMMON AREA OR ABANDMENT
OF HIS LOT. In accordance with the Association, by and through its Board of Directors,
shall have the authority to compromise and settle claims for assessments upon a majority vote
upon good cause shown.
ect' 7. Subordination of the Lien Mortgage. The lien of the assessments (and
reimbursement) provided for herein shall be subordinate to the lien of any mortgage or
mortgages now or hereafter placed upon any Lot held by a commercial or savings bank, trust
company, credit union, industrial loan association, insurance company, pension fund, or
business trust, including but not limited to a real estate investment trust, any other lender
regularly engaged in financing the purchase, construction, or improvement of real estate, or
any assignee of loans made by such lender, or any private or governmental institution or
agency which has insured the loan of any such lender, or any combination of any of the
foregoing entities; provided, however, that a sale or transfer of any Lot pursuant to a decree of
foreclosure or pursuant to any proceeding in lieu of foreclosure, shall not relieve such Lot
from liability for any assessments which thereafter become due, nor form the Iieii of any
subsequent assessment. Said assessment liens, however, shall be subordinate to the lien of any
such mortgage or mortgages hereafter placed upon the Properties subject to assessment.
ct' ExernPt Empat , All Common Area subject to this Declaration shall be

exempted from the assessments, charges and liens created herein.
Architectural ifia dards and Introl
The Board of Directors shall have the authority and standing, on behalf of the
Association, to enforce in courts of competent jurisdiction decisions of the Committee
established in Section 1 of this Article VHI. This Article may not be amended without the
Declarant's written consent, so long as the Declarant owns any land subject to this
Declaration or subject to annexation to this Declaration.
No construction, which term shall include, without limitation, staking, clearing,
excavation, grading, and other site work, and no plantings or removal of plants, trees, or
shrubs shall take place except in strict compliance with this Article, until the requirements
hereof have been fully met and until the written approval of the Architectural Review
Committee has been obtained.
ect' 1. Architectural Review Committee The Architectural Review Committee
(ARC) shall have exclusive jurisdiction over all construction on any portion of the Properties,
including but not limited to the authority to review and approve all proposed Site plans
showing where improvements are to be erected. The ARC shall prepare and, on behalf of the
Board of Directors, shall promulgate Architectural Review Guidelines ("Guidelines") which
include the Application for Preliminary Architectural Review, the Application for Final
Architectural Review, Cannonsgate at'
Sound Guidelines Pattern Book, Cannonsgate at
Bogue Sound Approved Plant List and such other Rules and Regulations as the ARC deems
necessary. The Guidelines, Pattern Book, Plant List, Review Process and Rules and
Regulations shall be those of the Association, and the ARC shall have sole and full authority to
prepare and to amend in its sole discretion these documents. It shall make them available to
Owners, builders, and developers who seek to engage in development of or construction upon
all or any portion of the Subdivision and who shall conduct their operations strictly in
accordance therewith. As long as Declarant owns any Lots which are subject to this
Declaration or retains the right to add additional phases, the Declarant retains the right to
appoint all members of the ARC, which shall consist of at least three (3), but no more than five
(5) persons. The members of the ARC do not have to be Owners. There shall be no surrender
of this right prior to that time except in a written instrument in recordable form executed by
Declarant. Upon the expiration of such right, the Board of Directors shall appoint the
members of the ARC. The ARC shall also have exclusive jurisdiction over modifications,
additions, or alterations made on or to existing Lots, Buffer Areas, Private Open Spaces and
Common Areas. The right of approval herein reserved and granted shall include, without
limitation, the right to designate or re -designate which Lot line shall be the "front" in the case
where a Lot is bordered by more than one street.
The ARC shall promulgate detailed standards and procedures governing its area of
responsibility and practice. In addition thereto, the following shall apply: Plans and
specifications showing the nature, kind, shape, color, size, materials and location of such
modifications, additions, or alterations shall be submitted in advance a the ARC for approval
as to quality of workmanship and design and harmony of external desig
n with existing
structures, and as to location in relation to surrounding structures, topogra y d finish

• grade elevation. No permission or approval shall be required to repaint in accordance with an
originally approved color scheme, or to rebuild in accordance with originally approved plans
and specifications. Nothing contained herein shall be construed to limit the right of an Owner
to remodel the interior of his/her Dwelling or to paint the interior any color desired. In the
event the ARC fails to approve or to disapprove such plans or to request additional information
reasonably required within forty-five (45) calendar days after submission, the plans shall be
deemed approved, provided, however, that no such failure to act shall be deemed an approval
of any matters specifically prohibited by any other provision of this Declaration. Refusal or
approval of plans, specifications, and plot plans or any of them may be based on any grounds,
including purely aesthetic grounds, which, in the sole and uncontrolled discretion of the ARC,
may deem sufficient. The approvals required pursuant to this Article shall be in writing and
are in addition to any approvals required by other applicable governmental authority.
Nothing in this Declaration shall be construed to prohibit the ARC from -promulgating different
Guidelines and/or Procedures for each Phase or portion thereof of the Properties and the ARC
is specifically authorized to do so. Additionally, all reasonable costs incurred by the ARC in
reviewing and approving applications to the ARC shall be the responsibility of the applicant.
Unless specifically waived by the ARC, all applications and submissions of plans for approval
by the 'ARC must be accompanied by an architectural review fee of $500.00 or such other sum
as is established by the ARC from time to time. Optional, preliminary plan approval may be
obtained by submitting plans accompanied by a preliminary review fee of $100.00 or such
other sum as is established by the ARC from time to time. See Architectural Guidelines
Article 3.4 and 3'.5.
Actual construction of Dwellings and other improvements shall be the responsibility of the
Owner of the Lot and the Owner's builder. Any permission granted for construction under
this covenant and any designation of approved licensed contractors shall not constitute or be
construed as an approval, warranty or guaranty, expressed or implied, by the Declarant or the
ARC or its designated agent of the structural stability, design or quality of any building or
other improvement or of the contractor who constructs such buildings or other improvements.
e t 2. l3u . dingy, Fences, Wall, Ft� No building, fence, wall, deck, trellis,
gazebo, boat house, or other structure, and no change in topography, landscaping, or any other
item originally approved by the ARC, shall be commenced, erected, or maintained upon the
Properties, nor shall any exterior addition to or change be made until the plans and
specifications showing the nature, kind, shape, height, materials, color, and locations of the
same shall have been submitted to and approved in writing as to the harmony of the external
design and location in relation to the surrounding structures and topography by the ARC. Any
change in exterior appearance of any building, wall, fence, or other structural improvements
and any change in the appearance of the landscaping shall be deemed an alteration requiring
approval.
Section . Docks piers landings, wharfs , nd seawall ulkheads . No dock, pier,
landing, wharf, seawall/bulkhead or other structure shall be
�� constructed, placed or allowed to
remain on any body of water, water course or the Intracoastal Waterway, unless approved in
writing by the Declarant.
Section 4. Compliance with to m-yL ter garaePmPnt Acts . All construction
within Cannonsgate at i3ogue Sound shall comply with Title 15 NCAC 2H.1000, the Coastal

' Stormwater Management Regulation:
(a) Which is intended to ensure ongoing compliance with State Stormwater
Management Permit Number SW8050516, 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 plan may not take place
without the concurrence of the Division of Water Quality.
(f) The maximum allowable built -upon area per lot is as follows:
Lots 1-304, 347-368, 376-426: 3200 square feet
Lots 305-346, 483-514: 2600 square feet
Lots 369-375, 427-482, 515-525: 3000 square feet
These allotted amounts include any built -upon area constructed within the lot property
boundaries, and that portion of the fight -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 and parking areas, but does not include
raised, open wood decking, or the water surface of swimming pools.
(g) This project proposes a curb outlet system. Each designated curb outlet swale
shown on the approved plan must be maintained at a minimum of 1003 long with 5:1
.(H:V) 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, and maintain a dense vegetated
cover.
(h) Filling in or piping of any vegetative conveyances (ditches, swales, etc.) associated
with the development except for average driveway crossings, is strictly prohibited by
any persons.
W Each lot will maintain a 30' wide vegetated buffer between impervious areas and
surface waters.
0) All roof drains shall terminate at least 30' from the mean high water mark of
surface waters.
(k) Filling in, piping or altering any designated 5:1 curb outlet swale associated with
the development is prohibited by any person.
4. r--.�..,.4 _� ... '•:lam, .._ .ter _..

In accordance with Title 15A NCAC 2H .500, it has been determined that "A portion of lot
numbers 10-11-23-24-25-26-30-31-32-33-35-36-37-38-39-40-41-42-43-47-60-61-91-92-93-108-
109-110-111-112-113-114-115-116-118-122-123-125-126-127-128-129-130-135-136-137-138-
139-140-141-142-143-144-145-282-283-284-285-286-287-288-393-394-395-396-397-398-399-
400-401-402-403-404-405-406-407-408-409-410-411-412-413-414-415-416-417-418-419-420-
421-422-423-424-425-426-427-428-429-430-431-432-433-434-435-436-437-438-439-440-441-
442-443-444-445-446-447-448-449-450-451-452-453-454-455-456-457-458-459-460-461-462-
463-464-465-466-467-468-469-470-471-472-473-474-475-476-477-478-479-480-481-482-483-
484-485-486-487-488-489-490-491-492-493-494-495-496-497-498-499-500-501-502-503-504-
505-506-507-508-509-510-511-512-513-514-515-516-517-518-519-520-521-522-523-524-525,
located in the Cannonsgate at Bogue Sound Subdivision, Carteret County, North Carolina as
shown on plans prepared by J. Davis Architects dated May 28, 2005; meet the requirements
for designation as a wetland, stream or protected stream buffer. Any subsequent fill or
alteration of this area shall conform to the requirements of the state rules adopted by the State
of North Carolina in force at the time of the proposed alteration. The intent of this provision
is to prevent additional wetland, stream or buffer filling or draining, so the property owner
should not assume that a future application for filling or draining would be approved. The
property owner shall report the name of the subdivision in any application pertaining to said
rules. This covenant is intended to'ensure continued compliance with all rules adopted by the
State of North Carolina and.. therefore the State of North Carolina may enforce benefits. Thi
under them".s
covenant is run with the land and shall be binding on all Parties and all persons claiming
Section 6. Decl irant'3 right to exercise Architectlj 1 Rav;Pw A ,thority
Notwithstanding the above sections, Declarant, in Declarant's sole judgment and discretion,
reserves the right and option to exercise Architectural Review Authority without establishing
an ARC until such time as Declarant relinquishes Class B membership status.
(a) Contractor Perfo manre Bond , prior to commencement of work, builders
will be required to post a Contractor Performance Bond with the ARC in the amount of
$1000.00 or such other sum as is established by the ARC from time to time, to ensure that the
contractor, during construction, keeps the property in a neat, clean, workmanlike manner and
to ensure that the contractor completes improvements in accordance with the approved plans
and specifications. Should the same not be done at the end of any business day or the end of
construction, as appropriate, some or all of the bond may be used to bring the contractor into
compliance with approved plans, and for any necessary site maintenance. Any portion of the
Contractor Performance Bond remaining at the end of construction and issuance of the
certificate of occupancy will be refunded to builder/contractor. See Architectural Guidelines
Article 3.10.
(b) Road Bond . Prior to commencement of construction a
the contractor shall submit a
$1,500.00 road bond, or. such other sum as is established by the ARC from thme to tune. to
ensure that streets and curbs in front of subject lot are maintained, throughout the construction
process, in the same good quality condition as they were in when construction began and to
ensure the proper reseeding, and clean-up of right-of-ways and drainage swales for any damage
by contractor and its agents. Any portion of the road bond not applied to necessary repairs

will be refunded at the end of construction. See Architectural Guidelines Article 3.10.
(c) Section R. Variances . The ARC may authorize variances from compliance with
any of the architectural provisions of this Declaration or the Architectural Review Guidelines,
including without limitation restrictions upon height, size or placement of structures, or similar
restrictions, when circumstances such as topography, natural obstructions; hardship, aesthetic
or environmental considerations may require. Such variances must be evidenced in writing
and must be signed by at least two (2) members of the ARC and shall be effective upon
delivery to the Owner. If such variances are granted, no violation of this Declaration shall be
deemed to have occurred with respect to the matter for which the variance was granted. The
granting of such a variance shall not operate to waive any of the terms and provisions of this
Declaration or the Architectural Review Guidelines for any purpose except as to the particular
Lot and improvements and the particular. provision covered by the variance, nor shall it affect
in any way the Owner's obligation to comply with all governmental laws and regulations
affecting the use of the Owner's Lot, including but not limited to zoning ordinances and
setback requirements imposed by Carteret County.
es ' Diligent Construction�All construction, landscaping or other work which
has been commenced on any Lot must be continued with reasonable diligence to completion
and no partially completed House or other Improvement shall be permitted to exist on any Lot
except during such reasonable time period as is necessary for completion. All construction
must be completed within one (1) year after the date upon which it commenced, unless a longer
time is approved by the Architectural Review Committee. Any damage to the Roadways,
curbs or sidewalks or any part of the Common Area or any utility system caused by an Owner
or Owner's builder or his subcontractors shall be repaired by such responsible Owner. Any
builder of Improvements and his subcontractors on any portion of the Property shall keep such
portion of the Property free of construction debris, in accordance with the construction rules
established by the Architectural Review Committee or, in the absence of such rules, in
accordance with standard construction practices, and shall similarly keep the Lake and
contiguous public and private areas free from any dirt, mud, garbage, trash, or other debris
which is occasioned by construction of Improvements. The Board may levy a Special
Individual Assessment against an Owner's property in the Subdivision to pay for the cost of
repairing any damage to Roadways, curbs or sidewalks or any part of any Roadway, Common
Area, or utility system, -to pay for the cost of cleaning public and private areas, including the
Roadways in the Subdivision and to pay for the cost of the removal of garbage, trash or other
debris, which are occasioned by the activities of an Owner or Owner's builder or his
subcontractors during the construction of Improvements.
Section 10 COmMencement of Dw lling and Other CQ_ S=cjf n Construction of a
dwelling must begin on all lots within 5 years from the date of closing or within 5 years from
the time the roads are paved, whichever is the later. If a lot is sold by initial owner,
subsequent owner has the balance of the 5 years plus one additional year to begin construction.
If construction. has not been started by the expiration of the 5 year period, or in the case of a
subsequent buyer, the remainder of the 5 year period plus one year, the Declarant in its sole
discretion has the option to purchase the lot (but is not obligated) at the initial purchase price.
Exterior Maintenance Reasonable Access a d aim a ance of rommrsn Area
162 PAG-aq���

Section 1. Exterior Maintenance The Owner shall maintain the structures and
grounds on each Lot at all times in a neat and attractive manner. Upon the Owner's failure to
do so, the Declarant, or the Association (after the termination of Class B membership status of
Declarant) may, at its option, after giving the Owner ten (10). days written notice sent to his
last known address, or to the address of the subject premises, have the grass, weeds, shrubs
and vegetation cut when and as often as the same is necessary in its judgment, and have dead
or diseased trees, shrubs, vegetation or dangerously leaning trees or limbs removed from such
Lot, and replaced, and may have any portion of the Lot resodded or landscaped, all of which
shall not be deemed a trespass, and all expenses of the Association under this provision shall
be a lien and charge against the Lot on which the work is done and the personal obligation of
the then Owner of such Lot. The Declarant or the Association, and its assigns, may likewise,
after giving the owner 10 days written notice sent as aforesaid, enter upon such Lot(s) to
remove any trash, debris or garbage which has collected on said Lot(s) without such entrance
and removal being deemed a trespass, all at the expense of the owner of said Lot. Upon the
Owner's failure to maintain the exterior of any structure in good repair and appearance, the
Association may, at its option, after giving the Owner thirty (30) days written notice sent to the
Owner's last known address, make repairs and improve the appearance in a reasonable and
workmanlike manner. The cost of any of the work performed by the Association upon the
Owner's failure to do so shall be immediately due and owing from the Owner of the Lot and
shall constitute an assessment against the Lot on which the work was performed, collectible in
a lump sum secured by alien against the Lot as herein provided.
Section 2. Access at Reasonable Hours . For the purpose of performing its function
under this or any other Article of the Declaration, and to make necessary surveys in connection
therewith, the Association, by its duly authorized agent and employees, or the Declarant
during the period of development, shall have the right to enter upon any Lot at reasonable
hours, on any day except Sundays and holidays, on reasonable prior notice.
Section . Maintenance of Common Area . It shall be the responsibility of the
Association to maintain the Common Area. However, should the Declarant (prior to
conveyance to the Association) or the Association (after the termination of the Class B status of
Declarant), decide to transfer any portion or all of the areas designated or to become, by
conveyance, Common Area to governmental authority, as they have the right to do, such duty
to maintain same shall cease as to that portion so transferred.
Sectim 4. Removal of Obstructions.. D.Qbris, and Materials . The Association may
remove any obstructions of any nature located within road right-of-ways or other Common
Area including trees and shrubs which, in the opinion of the Association, either might produce
a hazard or might interfere with the maintenance of the roads.
Phased Devcl pment
Section . Initial Phase . The real property which is, and shall be held, transferred,
sold, conveyed and occupied subject to this Declaration is located in Carteret County, North
Carolina, and is more particularly described on Exhibit "A" attached hereto and made a part
and parcel hereof.

Section 2 Additional Phases . The Declarant may, at its option, from time to time
bring other land under the provisions hereof by recording a Supplemental Declaration(s) stating
its intention to so incorporate additional real estate. Declarant may incorporate such additional
land under the provisions hereof in any number of additional phases as it may so desire and
may, in its discretion, change the character or nature of such future phases, including but not
Ihniied to changing the architectural theme, building materials, elevations, and minimum
square footage requirements for buildings. Such Supplemental Declaration(s) shall not require
the vote or consent of the Association or any Owner. Any such Supplemental Declaration(s)
shall be effective upon the filing thereof in the public records of Carteret County, North
Carolina. Such Supplemental Declaration shall describe the real property to be brought under
the provisions hereof. Declarant may bring such additional real estate under the terms hereof
either in whole or in part and may do so in multiple phases. Upon the Declarant's election to
incorporate additional real estate hereunder, all of such real estate so incorporated shall be as
fully covered hereby as if a part of the original Subdivision. All property so incorporated shall
be subject to all the declarations, covenants, easements, liens, restrictions and duties as herein
contained, together with such additional restrictions and obligations as Declarant may
impose on the land being submitted to the provisions of this Declaration by such
Supplemental Declaration(s). Declarant shall have the unilateral right to transfer to any other
person or entity the said right to submit additional property to the provisions of this
Declaration. Declarant shall have no obligation to develop any land adjoining the Subdivision
in accordance with this Declaration and may develop same in any manner it may desire and
further, Declarant, in the event that it should decide to develop any additional land located
adjacent to the Subdivision; in its sole, discretion, shall have no obligation to make same a part
of the Subdivision or subject to this Declaration. THE DECLARANT SHALL BE UNDER
NO OBLIGATION TO -DEVELOP ADDITIONAL PHASES AND NONE OF THE
REMAINING PORTION OF THE PROPERTY DESCRIBED HEREIN SHALL BE
DEEMED A PART OF ANY SCHEME OF DEVELOPMENT UNTIL ACTUALLY
BROUGHT UNDER THESE RESTRICTIONS AS HEREIN PROVIDED. THE RIGHT TO
ADD FUTURE PHASES SHALL TERMINATE 10 YEARS FOLLOWING THE DATE OF
THIS DECLARATION. .
ecti Resery tion of Additional Fa ement and i bg is - Declarant reserves for
itself and its successors and assigns as developer (and all conveyances by Declarant to
Association of Common Area shall be deemed to automatically reserve) easements over, under
and across all Common Area for ingress and egress and for construction and completion of
construction and development of future phases including, without limitation, easements for the
installation, construction, reconstruction, repair, maintenance and operation of all utility
services; said easements to be in addition to and not in lieu of any other rights or easements
reserved by Declarant herein or in any supplement hereto or any other conveyance by or to
Declarant or its predecessors in title.
ecti 4 Extension of Roads.. Declarant shall have the right, but shall have no
obligation, to extend any street or road now or hereafter within the Subdivision, without
seeking the approval of Association or any other party, for the p'arpose of serving additional
phases of the Subdivision and/or for serving other parcels of property not included within the
Subdivision.
Voting Righter As each phase, if any, is added to the Sub i 'ion, the Lots

•comprising such additional phase shall be counted for the purpose of voting rights.
on 6 Identification of Ad itimal Phases . Nothing in this Declaration shall
prohibit Declarant from naming or identifying any Phase or portions thereof by a name other
than "Cannonsgate at Bogue Sound" and any such other designation shall in no way prejudice
the rights or obligations under this Declaration of any Owner of any Lot in any such section or
Phase.
ARTICLE X_J
Rights of Mortgagees or hird artier. Should a mortgagee or third party acquire the
rights of Declarant, by way of foreclosure or otherwise in adjoining or neighboring property
contained within the property contiguous to the property subject to this declaration, as same
may exist from time to time, it shall be allowed fall use of all rights, easements, rights -of -way
and utilities contained within the Subdivision for the purpose of serving such adjoining or
neighboring areas. These rights shall also inure to the benefit of Declarant should it retain or
be the Owner of any portion of said property. Any of such parties may elect to. bring
additional phases under this Declaration.
Insurance and Casu&y_LQB3e.L
Section ura . Association's Board .of Directors, or its duly authorized
agent, shall have the. authority to and shall obtain blanket all-risk insurance, if reasonably
available, for all insurable improvements on the Common Areas. If blanket all-risk coverage
is not reasonably available, then, at a minimum, an insurance policy providing fire and
extended coverage shall be obtained. This insurance shall be in an amount (as determined by
the insurance underwriter) sufficient to cover one hundred (100%) percent of the replacement
cost of any repair or reconstruction in the event of damage or destruction from any insured
hazard.
The Board shall also obtain a public liability policy covering the Common Areas,
Association, and its Members for all damage or injury caused by the negligence of Association
or any of its Members or agents. The public liability policy shall have at least a One Million
and No/100 ($1,000,000.00) Dollar single person limit as respects bodily injury and property
damage, a Three Million and No/100 ($3,000,000.00) Dollar limit per occurrence, and a Five
Hundred Thousand and No/100 ($500,000.00) Dollar minimum property damage limit.
Premiums for all insurance required under this Section shall be common expenses of
the Association. This policy may contain a reasonable deductible and the amount thereof shall
be added to the face amount ofe policy in determining whether the insurance at least equals
the full replacement cost. The deductible shall be a common expense of Association.
Cost of insurance coverage obtained by Association for the Common Area shall be
included in the assessment.

All such insurance coverage obtained by the Board of Directors shall be written in the
name of Association as Trustee for the respective benefited parties, as further identified in (b)
below. Such insurance shall be governed by the provisions hereinafter set forth:
(a) All policies shall be written with a company licensed to do business in North
Carolina which holds a Best's rating of A or better as is assigned a financial size category of
Xi or larger as established by A. M. Best Company, Inc., if reasonably available, or, if not
available, the most nearly equivalent rating;
(b) All policies on the Common Area shall be for the benefit of Association and
Declarant shall be named as additional insured;
(c) Exclusive authority to adjust losses under policies in force on the Common
Areas obtained by Association shall be vested in Association's Board of Directors;
(d) In no event shall the insurance coverage obtained and maintained by
Association's Board of Directors hereunder be brought into contribution with insurance
purchased by individual Owners; and
(e) Association's Board of Directors shall be required to make every reasonable
effort to secure insurance policies that will provide for the following:
(i) a waiver of subrogation by the insurer as to any claims against
Association's Board of Directors, its manager; and Owners and their respective tenants,
servants, agents, and guests;
(ii) that no policy may be canceled, invalidated, or suspended on account of
the conduct of any director, officer, or employee of Association or its duly authorized manager
without prior demand in writing delivered to Association to cure the defect and the allowance
of a reasonable time thereafter within which the defect may be cured by Association, its
manager, its Owner, or mortgage;
(iii) that any "other insurance" clause in any policy exclude individual
Owner's policies from consideration; and
(iv) that no policy may be canceled or substantially modified without at least
ten (10) days' prior written notice to Association.
. In addition to the other insurance required by this Section, the Board shall obtain, as a
common expense, worker's compensation insurance, if and to the extent necessary, and a
fidelity bond or bonds on directors, officers, employees, and other persons handling or
responsible for the Association's funds. However, no fidelity bond shall be required as long as
the Class B Member exists. The amount of fidelity coverage shall be determined in the
Directors' best business jhrdgment but may not be less then three (3) months` assessments, plus
reserves on hand. Bonds shall contain a waiver of all defenses based upon the exclusion of
persons serving without compensation and may not be cancelled or substantially modified
without at least ten (10) days' prior written notice to the Association.
The Association may purchase officers' and directors' liability insurance, if reasonably

available, and the Board of Directors of Association approves the purchase of same. However,
every director and every officer of the Property Owners Association shall be indemnified by
Association against all expenses and liabilities, including attorney's fees, reasonably incurred
by or imposed upon him/her in connection with any proceeding to which he/she may be a
party, or in which he/she may be become involved by reason of his/her being or having been a
director or officer of Association, whether or not he/she 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 interest of Association. 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.
Section 2. Disbursement of Proceeds . Proceeds of insurance policies shall be
disbursed as follows:
(a) If the damage or destruction for which the proceeds are paid is to be repaired or
reconstructed, the proceeds, or such portion thereof as may be required for such purpose, shall
be disbursed in payment of such repairs or reconstruction as hereinafter provided. Any
proceeds remairung after defraying such costs of repairs or reconstruction to the Common Area
or, in the event no repair or reconstruction is made, shall be retained by and for the benefit of
Association and placed in a capital improvements account.
(b) If it is determined, as provided in Section 4 of this Article, that the damage or
destruction to the Common Area for which the proceeds are paid shall not be repaired or
reconstructed, such proceeds shall be disbursed in the manner provided for excess proceeds in
Subsection. (a) above. However, repair or replacement of the affected Common Afea must be
made unless prevented by law or governmental rule or regulation.
Section 3. Damage and Destruction .
(a) Immediately after the damage or destruction by fire or other casualty to all or
any part of the Properties covered by insurance written in the name of Association, the Board
of Directors, or its duly authorized agent, shall proceed with the filing and adjustment of all
claims arising under such insurance and obtain reliable and detailed estimates of the cost of
repair or reconstruction of the damaged or destroyed Common Areas. Repair or
reconstruction, as used in this paragraph, means repairing or restoring the Common Areas to
substantially the same condition in which they existed prior to the fire or other casualty.
(b) Any damage or destruction to the Common Area shall be repaired or
reconstructed unless the Voting Members representing at least seventy-five (75 %) percent of
the total, vote of the Association, shall decide within sixty (60) days after the casualty not to
repair or reconstruct. If for any reason either the amount of the insurance proceeds to be paid
as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair
or reconstruction, or both, are not made available to the Association within said period, then
the period shall be extended until such information shall be made available; provided,
however, such extension shall not exceed sixty (60) additional days. No mortgagee shall have
the right to participate in the determination of whether the Common Area damaged or
destroyed shall be repaired or reconstructed.
(c) In the event that it should be determined in the manner described above that the
damage and destruction shall not be repaired or reconstructed and no alternative improvements
are authorized, then, and in that event, the affected portion of the Commo ,V
shall be
80% FAGELL'�

restored to their natural state and maintained by Association in a neat and attractive condition.
S=tion4. Rye air and Reconstruction. If the damage or destruction for which the
insurance proceeds are'paid is to be repaired or reconstructed, and such proceeds are not
sufficient to defray the cost thereof, the Board of Directors shall, without the necessity of a
vote of the Members, levy a special assessment against all Owners in proportion to the number.
of Lots owned; provided, if the damage or destruction involves a Lot(s), only Owners of the
affected Lot(s) shall be subject to such assessment. Additional assessments may be made in
like manner at any time during or following the completion of any repair or reconstruction.
Dispute Resolution and Limitation on T it' ation
cti Agreement to Avoid Litig tine. The Declarant, the Association, its
officers, directors, and committee members, all Persons subject to this Declaration, any
Builder, and any Person not otherwise subject to this Declaration who agrees to submit to this
Article (collectively, "Bound Parties") agree to encourage the amicable resolution of disputes
involving the Subdivision, without the emotional and financial costs of litigation. Accordingly,
each Bound Party covenants and agrees that those claims, grievances or disputes described in
Section 2 below ("Claims") shall be resolved using the procedures set forth in Section 3 below
in lieu of filing suit in any court.
��• Cl m Unless specifically exempted below, all c! 4 �,
- grievances or
disputes arising out of or relating. to the interpretation, application or enforcement of the
Governing Documents, or the rights, obligations and duties of any Bound Party under the
Governing Documents or relating to the design or construction of improvements on the
Properties shall be subject to the provisions of Section 3 below.
Notwithstanding the above, unless all parties thereto otherwise agree, the following
shall not be Claims and shall not be subject to the provisions of Section 3 below:
a. any suit by the Association against any Bound Party to enforce the provisions of
Article VII (Assessments for the Maintenance and Operation of Common Area and Facilities);
b. any suit by the Association to obtain a temporary restraining order, or other
mandatory or prohibitive equitable relief, and such other ancillary relief as permitted to
enforce the provisions of Article II (Uses of Property) or VIII (Architectural Standards and
Control);
C. any suit by an Owner to challenge the actions of the Declarant, the Association,
the ARC, or any other committee with respect to the approval or disapproval of plans and
specifications in accordance with Article VIII;
d. any suit by an Owner to challenge the enforcement or application of specific use
restrictions promulgated in accordance with the procedures set forth in Article II;
e. any'suit in which any indispensable party is not a Bound Party; and
r:..

f. any suit which otherwise would be barred by any applicable statute of
limitations.
With the consent of all parties thereto, any of the above may be submitted to the
alternative dispute resolution procedures set forth in Section 3 below.
Section 3. Matey Procedures .
a. Notice . Any Bound Party having a Claim ("Claimant") against any other
Bound Party ("Respondent") (collectively the "Parties") shall notify each Respondent in
writing (the "Notice"), stating plainly and concisely:
the nature of the Claim, including the Persons involved and
Respondent's role in the Claim;
2. the legal basis of the Claim (i.e., the specific authority out of which the
Claim arises);
3. claimant's proposed remedy; and
4. that Claimant will meet with Respondent to discuss in good faith ways to
resolve the Claim.
b. Negotiation and Mediation .
1. The Parties shall make every reasonable effort to meet in person and
confer for the purpose of resolving the Claim by good faith negotiation. If requested in
writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist
the Parties in resolving the dispute by negotiation.
2. If the Parties do not resolve the Claim within 30 days of the date of the
Notice (or within such other period as may be agreed upon by the Parties) ("Termination of
Negotiations"), Claimant shall have 30 additional days to submit the Claim to mediation under
the auspices of any North Carolina dispute resolution center or such other independent agency
providing similar services upon which the Parties mutually agree.
3. . If Claimant does not submit the Claim to mediation within 30 days after
Termination of Negotiations, or does not appear for the mediation, Claimant shall be deemed
to have waived the Claim, and Respondent shall be released and discharged from any and all
liability to Claimant on account of such Claim; provided however, nothing herein shall release
or discharge Respondent from any liability to any Person other than the Claimant.
4. Any settlement of the Claim through mediation shall be documented in
writing by the uediator. If the Parties do not settle the Claun within 30 days after submission
of the matter to the mediation process, or within such time as determined by the mediator, the
mediator shall issue a notice of termination of the mediation proceedings ("Termination of
Mediation"). The Termination of Mediation notice shall set forth that the Parties are at an
impasse and the date that mediation was terminated.

5. Within five days after the Termination of Mediation, the Claimant shall
make a final written settlement demand ("Settlement Demand") to the Respondent and the
Respondent shall make a final written settlement offer ("Settlement Offer") to the Claimant.
If the Claimant fails to make a Settlement Demand, Claimant's original Notice shall constitute
the Settlement Demand. If the Respondent fails to make a Settlement Offer, Respondent shall
be deemed to have made a "zero" or "take nothing" Settlement Offer.
Final and Binding Arbitration .
1. If the Parties do not agree in writing to a settlement of the Claim within 15
days of the Termination of Mediation, the Claimant shall have 15 additional days to submit the
Claim to arbitration in accordance with the Rules of Arbitration of the American Arbitration
Association or such rules as may be required by the agency providing the arbitrator. If not
timely submitted to arbitration or if the Claimant fails to appear for the arbitration proceeding,
the Claim shall be deemed abandoned, and Respondent shall be released -and discharged from
any and all liability to Claimant arising out of such Claim; provided however, nothing herein
shall release or discharge Respondent from any liability to Persons other than the Claimant.
2. This subsection (c) is an agreement to arbitrate and is specifically enforceable
under the applicable arbitration laws of the State of North Carolina. The arbitration award (the
"Award") shall be final and binding, and judgment may be entered upon it in any court of
competent jurisdiction to the fullest extent permitted under the laws of the State of North
Carolina.
•� �_ ! ng m
a. Subject to Section 4(b), each Party shall bear its own costs, including any
attorney's fees incurred, and each Party shall secure equally all charges rendered by the
mediator(s) and all filing fees and costs of conducting the arbitration proceeding ("Post
Mediation Costs").
b. Any Award which is equal to or more favorable to Claimant than Claimant's
Settlement Demand shall add Claimant's Post Mediation Costs to the Award, such costs to be
borne equally by all Respondents. Any Award which is equal to or less favorable to Claimant
than any Respondent's Settlement Offer shall award to such Respondent its Post Mediation
Costs.
ecti 5. Dnforcement of Resn ution , -If the Parties agree to resolve any Claim
through negotiation in accordance with Section 3(b) and any Party thereafter fails to abide by
the terms of the agreement reached through negotiation, or if, following arbitration, any Party,
thereafter fails to comply with the Award, then the other Party may file suit or initiate
administrative proceedings to enforce the agreement or Award without the need to again
comply with the procedures set forth in Section 3. In such event, the Party taking action to
enforce the agreement or Award is entitled to recover from the noncomplying Party (or if more
than one noncomplying Party, from all the Parties pro rata) all costs incurred in enforcing the
agreement or Award, including, without limitation, attorney's fees and court costs.
Section 6. I.,ifi ation . No judicial or administrative proceeding with an amount in
controversy exceeding $25,000.00, will be commenced or prosecuted by the Association unless

approved by Members of the Association entitles to vote at a regular or special meeting at
which a quorum is present, duly called, in whole or in part, for the purpose of approving the
proceeding. This Section will not apply, however, to actions brought by the Association to
enforce the provisions of this Declaration (including, without limitations, the foreclosure of
liens); the imposition and collection of Assessments; proceedings involving challenges to ad
valorem taxation; counterclaims brought by the Association in proceedings instituted against it;
or actions brought by the Association to enforce written contracts with its suppliers and service
providers. This Section will not be amended unless the amendment is approved by the
requisite percentage of votes of Members of the Association, and pursuant to the same
procedures, necessary to institute proceedings as provided above. This provision will apply in
addition to the negotiation and arbitration provisions of 'this Article XIII, if applicable.
Section 7. Miscellaneous Alternative Dispute RPseluticn Pr -
a. Conflicting Praikon . Any conflict or discrepancy between the terms and
conditions set forth in this Article XIII and any term, condition or procedure of the American
Arbitration Association, or any remedy allowed at law or in equity, the terms, conditions,
procedures and remedies .set forth herein will control.
b. TIME IS -OE ESSEN E. All periods of time set forth herein or calculated
pursuant to provisions of this Article XIII will be strictly adhered to, TIME BEING OF THE
ESSENCE hereof.
ARTTCLE Xgl
ect' n . Time of Essence . It is agreed that time is of the essence with regard to
these restrictions, protective covenants, limitations, and conditions.
SectionSt,ction 2. Enforcement . Subject to the provisions of Article XIII hereof, in the
event of a violation or breach of any of these restrictions by any Owner or agent, or agent of
such Owner, Owners of Lots in the subdivision, or any of them, jointly or severally,
Declarant, and/or Association shall have the right to proceed at law or in equity to compel a
compliance to the terms hereof or to prevent the violation or breach in any such event or to
recover damages. In addition to the foregoing, Declarant, its successors and assigns, shall
have the right, but shall be under no obligation, whenever there shall have been built on any
Lot in the subdivision any structure which is in violation of these restrictions, to enter upon the
property where such violation exits and summarily abate or remove the same at the expense of
Owner if, after thirty (30) days written notice of such violation, it shall not have been
corrected by Owner. Any such entry and abatement or removal shall not be deemed a
trespass. The failure to enforce any rights, reservation, restriction, or condition contained in
this Declaration, however, long continued, shall not be deemed a waiver of the rights 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. Sbould Declarant or Association employ counsel to
enforce any of the foregoing covenants, condition, reservations, or restrictions because of a
breach of the same, all costs incurred in such enforcement, including a reasonable fee for
Declarant/Association's counsel, shall be paid by Owner of such Lot or Lots in breach thereof.
Any amount assessed hereunder shall constitute a lien! on such Lot and shall be enforceable as
3_ ..

' herein provided. Failure of Declarant, Association, or any Owner to enforce any covenant or
restriction contained herein shall not be deemed a waiver of the right to do so thereafter. In
addition, the Board of Directors shall have the authority to enforce the Covenants and
Restrictions, including reasonable rules and regulations as outlined in the By -Laws.
ct' n I Fines. Assoc' in„ AdminictrativP nrQc
..,.,eedin���ncluding_uPa,— 1�=_
Reg rdir g Fines and Su pension of Servi .e. under N.C. `47F-3-102(l 1) or 112 and
N. C `47 - - 07 1 . In addition to all other remedies, in the sole discretion of the Board
of Directors of the Association, a reasonable fine or fines may be imposed upon an Owner for
failure of an Owner, his family, guests, invitees, Lessees or employees to comply with any
covenant, restriction, rule or regulation, provided notice and hearing procedures set out in
N.C.G.S. are followed. Once imposed, fines shall be treated as an assessment subject to the
provisions for the collection of assessments. The Association may conduct any administrative
proceedings permitted or provided for under the Declaration, the Act or as otherwise provided
by law, including without limitation, the right of the Association, after notice and an
opportunity to be heard, to (1) impose reasonable fines for violations of the Declarations,
Bylaws, rules and regulations of the Association, or (2) to suspend privileges or services
provided by the Association (except rights of access to lots) for reasonable periods for
violations of the Declaration, Bylaws, and rules and regulations of the Association or during
any period that assessments or other amounts due and owing to the Association remain unpaid
for a period of thirty (30) days or longer. Prior to pursuing the imposition of a fine or the
suspension of privileges or services as allowed by the Act and as provided herein, the
Offending Owner will be notified and given ten (10). days in which to cure his violation or
nonpayment. In the event the violation or nonpayment is not cured within this ten (10) day
period, a hearing shall be held before an adjudicatory panel appointed by the Board to
determine if the offending Owner should be fined or if privileges or services should be
suspended. If the Board fails to appoint an adjudicatory panel to hear such matters, hearings
shall be held before the Board. The offending Owner charged shall be given notice of the
charge, an opportunity to be heard and to present evidence and notice of the decision. If it is
decided that a fine should be imposed, a fine not to exceed one hundred fifty dollars ($150.00)
may be imposed for the violation and without further hearing, for each day after the decision
that the violation occurs; provided, however, that fines imposed shall be subject to the
following minimums;
(i) The fine for the first violation or the first day of any continuing or repetitive
violation shall not be less that $25.00.
(h) The fine for the second violation or the second day of any continuing or
repetitive violation shall not be less than $50.00,
(iii) The fine for the third violation or the third day and subsequent days of any
continuing or repetitive violation shall not be less than $100.00.
Fines imposed shall be assessments secured by liens under N.C.G.S. '47-3-116. If it
is decided that a suspension of privileges or services should be imposed, the suspension may be
continued without further hearing until the delinquency is paid if imposed pursuant to '47F-3-
102(11) or until one violation is cured or sixty (60) days, whichever is longer, if imposed
pursuant to `47F-3-102(12).
The Association may institute actions or proceedings permitted by law or the Act tn
collect any sums due and owing to it.

.. 1
c i Responsibility of Declarant. Declarant herein shall not in any way or
manner be liable or responsible for any violation of these restrictions by any person other than
itself. In addition, nothing contained in this Declaration shall be deemed to be a representation
by Declarant with regard to the requirements of any governmental authority and it shall be the
duty of each Owner to comply with any such requirements in addition to the provisions of this
Declaration.
Section 5. Rule Against Perp iiti s . In the event that any of the provisions
hereunder are declared void by a court of competent jurisdiction by reason of the period of
time herein stated for which the same shall be effective, then, in the event, such term shall be
reduced to a period of time which shall not violate the rule against perpetuities or any other
law of the State of North Carolina, and such provision shall be fully effective for said reduced
period of time.
Section Binding Effect . All covenants, conditions, limitations, restrictions,
easements, and affirmative obligations set forth in this Declaration shall be binding on the
Owners of the Lot(s) or Multi -Family Unit(s) and their respective heirs, successors, and
assigns, and run with the land. All rights, easements and agreements reserved by or granted to
Declarant herein shall inure to the benefit of Declarant, its successors and assigns including,
without limitation, the right to develop and submit additional phases. Declarant reserves the
right in addition to all other rights of Declarant, to assign its rights of consent and approval as
set out in this Declaration and any amendment hereto or supplement thereof, to the
Association, or any assignee of Declarant's development rights. At such time as Declarant,
its successors. and assigns no longer owns any Lots or property in the Subdivision, any right of
approval reserved to Declarant by this Declaration shall be exercised by the Association.
ect' 7. The Proiect . The term " Cannonsgate at Bogue Sound", "Project",
"Properties" or any synonymous term shall be deemed to mean the Lots designated as Lots 1
through 525 :on the recorded plats of the Project, together with any common areas designated
as such. No areas lying outside of these Lots, designated areas and streets shall be considered
a part of the Project unless and until such area has been submitted to the terms and provisions
of this Declaration in accordance with the terms hereof.
S—eLtIOL3. Duration. The covenants and restrictions of this Declaration shall run
with and bind the land and shall inure to the benefit of and be enforceable by Declarant,
Association, or Owner of any land subject to this Declaration, and their respective legal
representatives, heirs, successors, and assigns. The covenants and restrictions of this
Declaration may be terminated only by agreement of Owners to which at least ninety percent
(90%) of the votes in the Association are allocated.
Section 9. Notice . Any notice required to be sent to any Member or Owner under
the provisions. of this Declaration shall be deemed to have been properly sent when personally
delivered or mailed , pos—A to the last known address of the person who appears as Member
or Owner of the records of Association at the time of such mailing.
ecti Severabilky . Invalidation of any one of these covenants or restrictions
by judgment or court order shall in no way affect any other provisions which shall remain in
full force and effect.
I [-I PAGE /Q��

t
Section l . Ame drn n . This Declaration may be amended as provided in
N.C.G.S.§ 47F-2-117. These covenants, restrictionhis
s, easements, charges, and liens of t
Declaration may be amended, changed, added to, derogated, or deleted at any time and from
time to time upon sixty seven percent (67%) vote of the membership in the Association,
provided, that so long as the Declarant is the Owner of any Lot affected by this Declaration,
the D eciarant's consent must be obtained. Provided further, that the provisions for voting of
Class A and Class B Members as hereinabove contained in this Declaration shall also be
effective in voting for changes in this Declaration. No amendment to the Declaration shall be
effective until executed on behalf of the Association by any officer designated for that purpose
and recorded in the Office of the Register of Deeds.
Section 12. Amendment PriQj to First Cony an -e by Declarant . At any time prior
to the closing of the first conveyance of a Lot by Declarant, the Declarant, and any mortgage
holder, if any,. may amend this Declaration by mutual consent. The closing of the first sale
shall mean transfer of title and delivery of a deed and not execution of a contract of sale or a
like document.
e 'o A end ent of Declaration wi hout pproval of Owners. So Iong as it
owns any portion of the Subdivision, the Declarant, without the consent or approval of any
other Owner, shall have the right to amend this Declaration:
(a) to conform to the _requirements of any law or governmental agency having legal
jurisdiction over the Subdivision;
(b) to qualify the Subdivision or any Lots and improvements thereon for mortgage
or improvement loans; or
(c) to make amendments which are correctional in nature only and do not involve a
change which materially and adversely affects the rights, duties or obligations herein.
A letter from an official of any such governmental Agency, including without
limitation, the Veterans Administration, the Department of Housing and Urban Development,
the Federal Home Loan Mortgage Corporation, the Governmental National Mortgage
Association of the Federal National Mortgage Association, requesting or suggesting an
amendment necessary to comply with the requirements of such agency shall be sufficient
conform to such request or suggestion. Such amendment shall become effective upon the date
of its recordation in the Office of the Register of Deeds.
e t' 1 . Amendment to Achieve Tax-ExemplStatLis. The Declarant, for so long
as it is a Class B Member of the Association, and, thereafter, the Board, may amend this
Declaration as shall be necessary, in its opinion, and without the consent of any Owner, to
qualify the Association or the Property, or any portion thereof, for tax-exempt status. Such
amendment shall become effective upon the date of its recordation in the Office of the Register
e t' Changes to puns for the Subdivision. Nothing contained herein shall be
deemed to incorporate, by reference or otherwise, any plans or proposals promulgated by

., 1
Declarant with respect to the development of the Subdivision, and Declarant, subject to the
covenants, conditions and restrictions contained in this Declaration and any Supplemental
Declaration and any Supplemental Declaration, reserves the right to change any plans for the
Project at any time and form time to time as Declarant may determine to be necessary based
upon Declarant's continuing research and design program and/or market conditions. Any
plans for the Project shall not bind Declarant or its successors and assigns to adhere to such
plans in the development of the Property or any pat thereof. In addition, Declarant reserves
the right to change, from time to time, the uses and densities that exist on any portion(s) of the
Property owned by Declarant, subject to the covenants, conditions and restrictions contained in
this Declaration and any Supplemental Declaration.
Section 16. Assignment of Declarant Rights . Declarant reserves the right to assign
its rights to a successor or assign who also assumes Declarant's responsibilities.
Section 17. Effective Date . This Declaration shall become effective upon its
recordation in the Office of the Register of Deeds for Carteret County, North Carolina.
Section 18. Plat . Reference to Exhibit A, "plat", "map" or other term synonymous
therewith shall mean and include Exhibit A as recorded herewith and all subsequent revisions
thereof as and when recorded in the Office of the Register of Deeds for Carteret County, North
Carolina.
[Signatures on Following Page

IN WITNESS WHEREOF, The Declarant, R.A. North Development,
Inc., has caused this instrument o be executed by its proper officers
'-**_ Gaon (a ,2005.
In the Presence of: R.A. North Development, Inc. (SEAL)
a
Randolph. M. Allen, President
STATE OF NORTH CAROLINA
COUNTY OF . �(
I, a)aI9rv'01-,A _� a Notary Public of the county and
state aforesaid, certify that Randolph M. Alen personally appeared before me this day
and acknowledged that he is President of R. A. North Development, Inc., a North
Carolina corporation, and by authority duly given and as an act of the corporation, the
foregoing instrument was signed in its name by him as President. Witness my hand and
official stamp or seal, this the 12th day of July, 2005.
AUB LAG I o'i
ussio, Tres:
NTy WIRM\

EXHIBIT "A"
Lying and being in White Oak Township, Carteret County North Carolina, and being all of the
numbered lots within Phase I of Cann' n ate at Bogue Sound Subdivision as shown on plats recorded in
Map Book 3 0 , Pages is - a Carteret County Registry, reference to said plats being made
for greater certainty of description.