20072164 Ver 1_More Info Received_20080312

S~G~
Southern Environmental Group, Inc.
5315 South College Road, Suite E
Wilmington, North Carolina 28412
910.452.2711 (office) • 910.452.2899 (fax)
Transmittal Letter
Date: 10 March 2008
To: Mr. Ian McMillan
Of: DWQ
Attached you will find:*
SEGi Project #: 04-119.01
Client Name::. Deans Hackney
Holly Tree. Investments, LLC
USACOE Action ID# SAW2007-00944
DWQ Pro~ec.~. #~ : 200- - Z19~
Q~c~~oe~c~~
MAR 1 2 2008
DENR - WAIEkt c1JAU7r
WETLANDS AND STORMWAI'ER BRANCH
^ Proposal ^ Sketch(es) ^ Permit ^ Signed Wetland Map ^ Photo(s)
^ JD Package ^ Report(s) ^ Plans ^ Information Request ®Other
Copies Dated Description
1 Not Dated Draft Copy of Restrictions for Seabrooke Subdivision
1 06 February 2008 Wetland Preservation Map

These are being delivered:
*If noted items are NOT attached, please contact our office.
® For your Review/Comment ^ For your Records ^ Returned for Correction(s)
^ Corrected and Returned ^ For your Signature ^ As Requested
^ Other:
By: ^ Hand Delivery ^ Fed-Ex ^ UPS ®Regular Mail ^ Other
Notes:
Ian:
In an effort to provide the Corps and DWQ with the same information, attached is a copy of the draft restricitons for the Seabrooke
subdivision, off Buckeye Road, as well as a copy of the preservation map. Please review the documentation at your earliest convenience
and let me know ifyou need any further information. Thank you in advance for your time and consideration.
Signature and (Typed) Name: /~~C.4~~
Amanda L. Kolb
Date: 03/10/08

~~°-~_ ~~'~vi~~f
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I, MARL F. GLENN, CERTIFY Tt1AT Tt11S PLAT WAS DRAWN
NDER MY SUPERVISION FROM AN ACTUAL SURVEY MADE ~~E~iJ\i~GSaNp~1C~-atAitigr'ff,~- ~j 74 N
UNDER MY SUPERVISION (SEE SURVEYORS NOTE); TI1AT Tt1E
RATIO OF PRECISION AS CALCULATED IS I :10000: Tt1AT `,,Il~lllt,,~ 76 ws e
Tt11S PLAT WAS PREPARED IN ACCORDANCE WITh G.S. ~~` ~H CARO'~,, ~~'~"~ ,~
47-30 AS AMENDED. WITNESS MY ORIGINAL SIGNATURE, ~ ~ ' '•• ~/'~ ''~ Q ~ ~~'~
LICENSURE NUMBER AND SEAL TI11S h DAY ; ~;'QO 'vy .y - ~ » ~
FEBRUARY A.D., 2008. ~.'' ' Q ~ ' ~ •^ ~
= SEAL m '
= L-4308 SITE i W~
~: ` "
MARC F. GLENN : yti y0?; w
NCNgp83 N.C. PLS NO. L-4308 ~''L!•''••OSUR`~~ •'~~`
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W W ((''' '''-.111111,''' LOCATION MAP
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/V,~ W W
y W W ~~ J W W W W W `~' ~ •Y ~ •Y V A' I O
A /~ ,/
Y W .y .y 13/k„ O ~ ~~O ~
,~~~,~ ~, N20°05 '~ (~ PRESERVATION~F2g~i CENTERLINE INT-X
g\ •2a % AREA 'gi, OF OF STONEWOOD DR. ~
W y W
~, ~,~~, ~, ~ 787 SF ~ AVINGTON LANE
i W W y W /
W "" ~" ~' ,\ .` is gam, 9,2 I I SF TOTAL ``~
•Y J• W W ~ / \ VV
L5 ~
W W W
.~ .~ ,~ y ~ G~' ~ ~ N 168 127.4872 ~ / ~'"
.~ ~. ,~ ~, ~ E 2281395.4853 ~% i
' W y W
y ~, y G~ ~ ~ S68 ~ 3'97"E Tt11S MAP IS NOT A
y W ~ ~ \~ CERTIFIED SURVEY AND I1AS
W NOT BEEN REVIEWED BY A
~'~~ \ ~ ~ LOCAL GOVERNMENT
"~ ~ ~ ~L~O AGENCY FOR COMPLIANCE
~N PRESERVATION F 67 ~ °`L~ (o~ ~ WITH ANY APPLICABLE LAND
AREA ~ ~7r ~ ~~~i~~h ~ DEVELOPMENT
568 SF ~~ ~' ~~ 1,
F j S~ N 168096.621 5 ~~~ \`/ REGULATIONS
i9 ~. E 2281462.2824_ ~ \ SURVEYORS NOTE:
33 m 66 ~~6 ~P~ SUBDIVISION NOT PLATTED A
No O 10,905 SF TOTAL ~9,3~~'1 ~ 0~~~ ~OF FEBRUARY 6, 2008. NO
.~ ~ G,t, ~g•~2 .` ~P/ FIELD WORK DONE ON SITE.
m o~ ~~~ ~'1 ' \\ Q~ MIA~T BASED ON PROPOSED
a„~ ~ J\p ~
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PRESERVATION AREA TABLE ~ ~~p \
LOT k66 568 S. F. ~~
L07 +Y69 767 S. F.
TOTAL PRES. AREA I ,355 S.F.

40.2827 Q` ~~ LINE TA BLE
28.2582 LINE LENGTIi BEARING
/ L I 18.93 545°20'23"E
/ L2 16.33 S53°59'45"W
L3 32.53 N57°28'37"W
L4 35.71 N74°06'33"W
L5 4.20 N74°06'33"W
L6 14.36 S07°37'00"W
L7 41.76 N07°37'00"E
L8 38.78 S62°49'00"W
L9 7.02 S56° 19'52"W
L I I 34.23 S66° 13'47"E
L 12 43.76 N30°46'56"W
CURVE TABLE
CURVE DELTA TANGENT RADIUS Ch BEARING CI10RD
C I I °02' I I" 2 1. 1 4 2337.24 N56°07'46"W 42.27
C2 O°01'08" 0.39 2337.24 N56°39'26"W p.77
C4 O°59' 13" 20. 13 2337. 19 N60° I I '46"W 40.26
C5 O°24'04" 6.18 2337.19 N60°53'26"W 16.36
C6 I°46'04" 15.8 I 1025.00 S67°20'45"E 31 .63
EXHIBIT MAP OF WETLAND PRESERVATION AREAS PREPARED FOR
SIGNATURE 110ME5, LLC
LOT 66 ~ 69 SEABROOK SUBDIVISION
TOWNCREEK TOWNSHIP BRUNSWICK COUNTY, N.C.
K:UAND PROJECTS\SEABROOK-IIACKNEIIDWG\LOTS 66, 69 MITIGATION.DWG
DANFORD 2231 WRIOHT6VI~ AVENUE
&ASSOCIATES WILMINGTON, N.C. 2M03
PHONEIDtOla163711
Fwx latwsltueee
LAND SURVEYING, P.C.
FEBRUARY 6, 2008
50 O 25 50 100
I INCf1 = 50 FEET
© DANFORD 4 ASSOCIATES LAND SURVtYING, PG FEBRUARY 2008
O~ - a,1 V~

Declaration of Covenants, Conditions And
Restrictions For
SEABROOKE
Prepared by
Murchison, Taylor and Gibson, PLLC
16 North Fifth St.
Wilmington, NC 2840.1
80321v2

THIS DECLARATION OF COVENANTS, CONDITIONS AND
RESTRICTIONS FOR SEABROOKE (herein called the "Declaration") is made and entered
into this the day of 2008, by HOLLY TREE
INVESTMENTS, LLC, a limited liability company organized and existing under the laws of
the state of North Carolina (hereinafter referred to as the "Declarant").
WITNESSETH
WHEREAS, Declarant is the Owner of all of the interest and equity in that certain
tract of land described in Exhibit A attached hereto and incorporated herein by reference (as
further defined below, herein called the "Property"), to be known as "Seabrooke"; and
WHEREAS, it is the desire of the Declarant to insure the use of said Property for
residential purposes only, to maintain the attractiveness and value of the Property, to maintain the
standard of conduct and use of the Property as established by this Declaration or as commonly exists in
the Residential Community, or the minimum standards established pursuant to the Architectural Design
Standards, Restrictions and Rules, and Board resolutions, and thereby to secure to each Owner the full
benefit and enjoyment of his or her Lot with no greater restriction upon the free and undisturbed use
of his or her Lot than is necessary to insure the same advantages to all Owners; and
WHEREAS, Declarant, for the use and benefit of itself and its successors and
assigns, does desire to encumber, place and impose upon the Property, the following conditions,
covenants, reservations, easements and restrictions to ensure the proper use, development and
improvement of such Property; to enhance the value, desirability and attractiveness of the
Property; to protect against the construction of improvements and structures not in keeping with
the Community-Wide Standard; to ensure compliance with all applicable governmental rules,
regulations, ordinance and laws, including zoning ordinances, building codes and environmental
laws and regulations; to provide for a method for the maintenance and continued improvement of
certain common areas and facilities appurtenant to the Property; and to otherwise provide for the
construction and development of quality improvements on the Property.
NOW THEREFORE, in consideration of the premises and of the mutual benefits
and duties herein contained, Declarant hereby declares that the Property shall beheld, developed,
improved, leased, sold, transferred, conveyed and occupied subject to the following covenants,
reservations, easements, conditions and restrictions, all of which are for the purpose of protecting
the value and desirability of, and which shall run with title to, the Property and shall be binding
on all parties having a right, title or interest therein, along with their heirs, successors and
assigns, and which shall inure to the benefit of each owner thereof.
80321v2 2

Article I
DEFINITIONS
1. "Association" shall mean and refer to Seabrooke Property Owners'
Association, Inc., a North Carolina non-profit corporation, its successors and assigns.
2. "Board of Directors" or "Board" means those persons elected or appointed
and acting collectively as the Directors of the Association pursuant to' its By-Laws.
3. "Building" shall mean and refer to a home and associated garage constructed
or erected on a Lot.
4. "By-Laws" shall mean the by-caws of the Association as they now or may
hereafter exist and as they maybe amended from time to time.
5. "Common Area" shall mean and refer to "any of the Property designated as
Common Area by this Declaration, or conveyed to the Association by warranty deed recorded in the
Brunswick County Registry and which deed specifically designates said area as Common Area and
incorporates the provisions of these restrictions as to .the use of said property as Common Area,
along with any facilities and improvements erected or constructed thereon, for the exclusive use and
enjoyment of the Members of the Association. Additional Common Area may be annexed or
"phased" into the subdivision as hereinafter provided.
6. "Common expenses" shall mean and include:
a. All sums lawfully assessed by the Association against its Members;
b. Expenses of administration, maintenance, repair or replacement of
the Common Areas and the stormwater system;
c. Expenses declared to be common expenses by the provisions of this
Declaration or the By-Laws;
d. Liability for such other insurance premiums as the Declaration or By-
Laws may require the Association to purchase;
e. ` 'Expenses agreed by the Members to be common expenses of the
Association;
f. Any ad valorem taxes and public assessments levied against the
Common Area.
so32i~a 3

7. "Common profits" shall mean and refer to the balance of all income, rents,
profits and revenues of the Association remaining after the deduction of the common expenses or
reserve therefore. Common profits shall not mean or include any sums lawfully assessed against
Members by the Association.
8. "Community-Wide Standard" shall mean the standard of conduct,
maintenance, or other activity generally prevailing throughout the Residential Community. Such
standard may be more specifically determined by the Board of Directors and the Architectural
Review Committee.
9. "Conservation Area" or "Wetlands Conservation Area" shall mean and refer
to any area of the Property designated as a "Preservation Area", "Conservation Area" or "Wetlands
Conservation Area" on any recorded plat of the Residential Community, specifically including but
not limited to the area designated as a "Preservation Area" on Lots 66 and 69 of Seabrooke as
shown and described in Exhibit A attached hereto and incorporated herein by reference. A
Conservation Area or Wetlands Conservation Area maybe located upon individual Lots or in any of
the Common Areas within the Residential Community.
10. "Declaration" shall refer to this Declaration of Covenants, Conditions, and
Declaration for Seabrooke, and any supplements or amendments thereto.
11. "Declarant" shall mean and refer to Holly Tree Investments, LLC, a North
Carolina limited liability company, or its successors and assigns, to whom the rights of Declarant are
expressly transferred by instrument duly recorded in the Brunswick County Registry, or who
acquires title to all the remaining Property owned by the Declarant under a deed in lieu of
foreclosure, judicial foreclosure, or foreclosure under power of sale contained in any deed of trust.
12. "Design Guidelines" shall mean the architectural design guidelines and
procedures set forth herein or adopted by the Architectural Review Committee pursuant to
Article VIII herein and applicable to all Lots.
13. "Home" shall mean and refer to a detached, free-standing dwelling or place
of residence and attached or detached garage constructed upon a Lot within the property.
14. "Lot" shall mean and refer to any plot of land, other than the Common Area,
which is subject to this Declaration and is shown on a recorded map of the Residential Community,
and upon which a home has been or may be constructed.
15. "Member" shall mean and refer to every person who is a member of the
Association. Each Owner as defined herein, shall be a Member.
16. "Owner" shall mean and refer to the record Owner, whether one or more
persons or entities, of a fee simple title to any Lot which is a part of the Property, including contract
sellers, but excluding those who have such interests merely as security for the performance of an
obligation.
go32i~z 4

17. "Person" shall mean and refer to an individual, corporation, partnership,
association, trustee or other legal entity.
18. "Planned Community Act" or "North Carolina Planned Community Act" shall
refer to the North Carolina Planned Community Act, (N.C.G.S. §47F-1-101 et. seq.), as the same may be
amended from time to time.
19. "Propert}~' shall mean and refer to that certain real property shown on that
plat referred to in Exhibit A attached hereto and any other real property which is made subject to
this Declaration in the future.
20. "Residential Community" means all of the Property which shall be known
collectively as "Seabrooke", and any other real property which is made subject to this Declaration in
the future.
Article II
ANNEXATION OF ADDITIONAL PROPERTIES
1. Annexation by Membership.. Except as provided in Section 2 below,
annexation of additional property shall require the assent of two-thirds (2/3) of the Class A
Members and all of the Class B Members, if any, 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.
2. Annexation by Declarant. If the Declarant, its successors or assigns, shall
develop all or any portion of any land contiguous to or within one mile from the Property which is
subject to the Declaration, such additional tract or tracts maybe annexed to said Properties without
the assent of the Class A Members,. by the execution and recording in the Brunswick County
Registry of Supplemental Declaration making said additional tract or tracts subject to these
restrictions, provided however, the development of the additional tract(s) described in this section
shall be in accordance with the same general scheme of development as Seabrooke.
Article III
PROPERTY RIGHTS AND RESTRICTIONS OF OWNERS
1. Use of the Common Area. Every Owner shall have a right and easement of
enjoyment in and to the Common Area which shall be appurtenant to and shall pass with the title to
every assessed Lot, subject to each of the following provisions;
a. The right of the Association to formulate, publish and enforce rules
and regulations as provided in ARTICLE V herein.
80321v2 5

b. The right of the Association, in accordance with its Article s and By-
Laws, to borrow money for the purpose of improving the Common Area and facilities and carrying
out its maintenance responsibilities and in aid thereof to mortgage said property, and the rights of
such mortgagee in said properties shall be subordinate to the rights of the Owners hereunder.
c. The right of the Association to suspend the voting rights and rights to
use of the Common Area and facilities by a Member, or any person to whom he has delegated his
voting right, for any period during which any assessment against his Lot remains unpaid, or for a
period not to exceed sixty (60) days for an infraction of its published rules and regulations.
d. Easements as provided in Article IX herein.
2. Delegation of Use of Common Area. Subject to the provisions of the By-
Laws and the rules and regulations of the Association, any Owner may delegate his right to the
enjoyment of the Common Area to the members of his family, his tenants, or contract purchasers,
provided, every such delegee must reside in the home of the Owner.
3. Conveyance of Common Area to Association. The Declarant hereby
covenants for itself, its successors and assigns, that it will convey fee simple title to any of the
Property which is to be designated as the Common Area, to the Association, and the Association
shall be obligated to accept said conveyance. Any such conveyance shall be free and clear of all
liens and encumbrances, except utility and drainage easements, easements to governmental
authorities and the provisions of this Declaration, upon condition that such area conveyed shall be
designated "Common Area" and shall be for the sole and exclusive use and benefit of Members, so
long as such area is maintained in conformity with the requirements of the Community Documents,
at the sole expense of the Association. The conveyance of the Common Area for the entire
Residential Community shall be completed at the time of or prior to, the conveyance of the last Lot
in the Community to an Owner.
4. Designation of Common Areas. The subdivision signage, stormwater
retention pond, landscaped area and fencing located at the entrance to the Residential Community is
hereby designated as Common Area for the exclusive use and enjoyment of the Members of the
Association.
5. Conservation Area. Notwithstanding any provision in this Declaration to the
contrary, that portion of the Property which is also designated as a Conservation Area as provided in
this Declaration shall be maintained in perpetuity in a natural condition, subject to the following
uses and restrictions:
a. No Owner or other person or entity shall perform any of the
following activities on or within any Conservation Area:
disturbing activities.
1. Fill, grade, excavate or perform any other land
80321v2 ()

2. Cut, mow, burn, remove, or harm any vegetation.
3. Construct or place any roads, trails, walkways,
buildings, mobile homes, signs, utility poles or towers, or any other permanent or
temporary structures.
4. Drain or otherwise disrupt or alter the hydrology or
drainage ways of the conservation area.
5. Dump or store soil, trash, or other waste.
6. Graze or water animals, or use for any agricultural or
horticultural purpose.
b. This Section 5_ of Article III is intended to ensure continued
compliance with the mitigation condition of a Clean Water Act authorization issued by the United
States of America, U.S. Army Corps of Engineers, Wilmington District, Action ID
SAW-2007-00944 and, therefore, maybe enforced by the United States of America.
c. This Section 5 of Article III is to run with the Property and shall be
binding on the Declarant, all Owners and all parties claiming under any of them.
d: This Section 5 of Article III may not be amended without the
express written consent of the U.S. Army Corps of Engineers; Wilmington District.
Article IV
PURPOSE, FUNCTION AND GOVERNANCE OF THE ASSOCIATION
L Function of Association. The Association shall be the entity responsible
for management, maintenance, repair, ownership, operation and control of the Common Area.
The Association shall be the primary entity responsible for enforcement of this Declaration and
such reasonable rules regulating use of the Common Areas owned or leased by the Association as
the Board may adopt. The Association shall also be responsible for administering and enforcing
the architectural design guidelines and controls set forth in this Declaration and in the Design
Guidelines. The Association shall perform its functions in accordance with this Declaration, the
By-Laws, the Article s and applicable North Carolina law.
2. Membership. Every person who is record Owner of a fee or undivided fee
interest in any Lot, including contract sellers, but excluding persons who hold an interest merely as
security for the performance of any obligation, shall be a Member of the Association. There shall be
only one vote per Lot in the Association except as otherwise provided in this Article IV.
Membership shall be appurtenant to and may not be separated from Ownership of any Lot. The
Board of Directors may make reasonable rules regarding proof of Ownership.
80321v2 7

3. Voting Ri ts.
a. Class "A". Class A Members shall be all Owners with the exception
of the Declarant. When more than one person holds an interest in any Lot, all such persons shall be
Members.
b. Class "B". The sole Class "B" Member shall be the Declarant.
The rights of the Class "B" Member, including the right to approve or withhold approval of
actions proposed under these Declaration and the By-Laws, are specified elsewhere in the
Declaration and the By-Laws. The Class "B" Member may appoint the members of the Board
during the Class "B" Control Period, as specified herein. After termination of the Class "B"
Control Period, the members of the Board shall be selected as provided in the By-Laws.
During the Class "B" Control Period, the Class "B" Member shall be entitled to
three (3) votes for each platted Lot and three (3) votes for each planned but currently-unplatted
Lot in the Residential Community. The Declarant makes no representation whatsoever regarding
the actual number of Lots to be included in the Residential Community. The Class "B"
membership shall cease and be converted to Class "A" membership on the happening of either of
the following events, whichever occurs earlier:
(i) when the Declarant owns twenty-five percent (25%) or less
of the total number of the planned Lots in the Residential Community, including any
property which maybe annexed thereto, as herein provided, or
(ii) on January 1, 2025.
c. In any situation in which a Member is entitled personally to
exercise the vote for his or her Lot and there is more than one Owner of a particular Lot, the vote
for such Lot shall be exercised as such Co-Owners determine among themselves and advise the
Secretary of the Association in writing prior to any meeting. Absent such advice, the Lot's vote
shall be suspended if more than one Person seeks to exercise it.
Article V
RIGHTS AND OBLIGATIONS OF THE ASSOCIATION
1. Common Area. The Association, subject to the rights of the Owners set
forth in this Declaration, shall manage and control the Common Area and all improvements
thereon (including, without. limitation, roads, road rights of way, furnishings, equipment, and
common landscaped areas), and shall keep it in good, clean, attractive, and sanitary condition,
order and repair, consistent with this Declaration and the Community-wide Standard. Subject to
the provisions of this Declaration, the Board of Directors shall have the power to formulate, amend,
publish and enforce reasonable rules and regulations concerning the use and enjoyment of any
Common Area.
80321v2 $

2. Personal Property and Real Property for Common Use. The Association
may acquire, hold, and dispose of tangible and intangible personal property and real property.
Declarant may convey to the Association at any time any Common Area and any other of the
Property, and any personal property and leasehold and other property interests. Any such
property conveyed to the Association by the Declarant shall be accepted by the Association and
thereafter shall be maintained as Common Area by the Association at its expense for the benefit
of its Members, subject to any restrictions set forth herein and in the deed.
3. Rules. The Association, through its Board, may make, revoke, amend and
enforce reasonable rules governing the use of the Properties, in addition to
further defining or limiting, and, where specifically authorized hereunder,
creating exceptions to, those covenants and restrictions set forth in this
Declaration (the "Rules and Regulations"). Such Rules and Regulations shall
be binding upon all Owners, occupants, invitees, lessees, guests and licensees.
4. Enforcement. The Association may impose sanctions for violations of this
Declaration, the By-Laws, or Rules and Regulations, including reasonable monetary .fines and
suspension of the right to vote and to use any recreational facilities within the Common Area. In
addition, the Association may exercise self--help to cure violations, and may suspend any services
it provides to the Lot of any Owner who is more than 30 days delinquent in paying any
assessment or other charge due to the Association. The Board may seek relief in any court for
violations or to abate nuisances. The Board may assess the reasonable monetary fines authorized
by this Section as a Specific Assessment under Article VI ofthis Declaration.
5. `Implied Rights; Board Authority. The Association may exercise any other
right or privilege given to it expressly by this Declaration or the By=Laws, or Chapter SSA of the
North Carolina General Statutes, - or reasonably implied from or reasonably necessary to
effectuate any such right or privilege. Except as 'otherwise specifically provided in this
Declaration, the By-Laws, Article s, all rights and powers of the Association maybe exercised by
the Board without a vote of the membership.
6. Indemnification. To the maximum extent allowed by North Carolina law,
the Association shall indemnify every officer, director, and Committee member against all
expenses, including counsel fees, reasonably incurred in connection with any action, suit, or
other proceeding (including settlement of any suit or proceeding, if approved by the then Board)
to which he or she may be party by reason of being or having been an officer, director or
Committee member. The Association shall, as a Common Expense, maintain adequate general
liability and officers' and directors' liability insurance to fund this obligation, if such insurance is
reasonably available.
7. Dedication of Common Areas. The Association at any time may dedicate
portions of the Common Areas to any local, state, or federal governmental entity, public agency,
authority, or utility for such purposes and subject to such conditions as may be agreed to by the
Association.
80321 v2 9

8. Security. The Association may, but shall not be obligated to, maintain or
support certain activities within the Properties designed to enhance the security and safety of the
Owners, occupants, invitees, lessees, guests and licensees. THE ASSOCIATION, THE
DECLARANT, AND ANY SUCCESSOR DECLARANT, SHALL NOT IN ANY WAY BE
CONSIDERED INSURERS OR GUARANTORS OF SECURITY OF ANY PERSON OR
ENTITY WITHIN THE SUBDIVISION, NOR SHALL ANY OF THEM BE HELD
LIABLE FOR ANY LOSS OR DAMAGE BY REASON OF FAILURE TO PROVIDE
ADEQUATE SECURITY OR OF INEFFCTIVENESS OF ANY SECURITY MEASURES
WHICH MAY BE UNDERTAKEN. EACH PERSON OR ENTITY USING THE
PROPERTIES ASSUMES ALL RISKS FOR DEATH OR PERSONAL INJURY, LOSS
OR DAMAGE TO REAL OR PERSONAL PROPERTY, LOTS, RESIDENCES OR
BUILDINGS ON THE LOTS, AND THE CONTENTS OF RESIDENCES OR
BUILDINGS ON THE LOTS, RESULTING FROM ACTS OF THIRD PARTIES.
9. Turnover Transfer by Declarant. Upon the expiration of the Class B
control period, as provided in Article IV herein, or any time prior to said expiration, in the sole
discretion of the Declarant, the Declarant may convey to the Association (i) all of the right, title
and interest of the Declarant in and to all Common Area which has not been previously
transferred to the Association, (ii) any and all right, title and interest of Declarant in and to any
roads within the Residential Community, (iii) any rights of way or easements in or across the
Property reserved to and exercisable by the Declarant, (iv) any and all stormwater permits, erosion
control permits, CAMA permits, water system permits, wastewater or septic system permits, and
any other governmental permits and licenses obtained by the Declarant in connection with the
development of the Residential Community by the Declarant (the "Development Permits"), and (v)
any and all rights and obligations as the Declarant under this Declaration, except for any rights and
authority of the Declarant which may survive such expiration of the Class B control period which
the Declarant may specifically except from said conveyance, and the rights and authority of the
Declarant as an owner of the any of the Lots described herein (said conveyance referred to herein as
the "Turnover Transfer").
10. Obligations of the. Declarant Prior to Turnover Transfer. Prior to the
Turnover Transfer as provided in Section 9 of this Article V, the Declarant shall provide to the
Association the following:
a. Certification from the North Carolina Department of Transportation
(with regard to any public roads within the Residential Community) or from a licensed professional
engineer chosen by the Declarant (with regard to any private roads within the Residential
Community), that all roads within the Residential Community are built to the specifications of the
North Carolina Department of Transportation (the "Road Certification").
b. Certification from a licensed professional engineer chosen by the
Declarant that the stormwater drainage system of the Residential Community is planned and
constructed in accordance with said stormwater plan and any applicable stormwater permits,
licenses or agreements between Declarant and any governmental agency or any public or private
80321v2 1 0

utility company and in accordance with any applicable laws and governmental rules and
regulations (the "Stormwater Certification").
c. Certification from a licensed professional engineer chosen by the
Declarant that any erosion control system, water system, wastewater or septic system, and any other
utility system of the Residential Community is planned and constructed in accordance with any
applicable erosion control plan and permit, water system permits, wastewater or septic system
permits, and any other governmental permits, licenses or agreements between Declarant and any
governmental agency or any public or private utility company, and in accordance with any
applicable laws and governmental rules and regulations (the "Utility Certification")
11. Obligations of the Association upon Turnover Transfer. Upon the receipt of
the Road Certification, the Stormwater Certification, the Utility Certification and the Turnover
Transfer as provided herein, the Association shall be obligated and required as follows:
a. To accept the Turnover Transfer.
b. To assume all the rights and responsibilities of the Declarant,
including with regard to the maintenance and repair of any roads, rights of way and easements,
Common Areas and any other property transferred to the Association, the maintenance of and
payment of premiums for any necessary property insurance, and the payment of any applicable
property taxes.
c. To assume the rights and responsibilities of the Declarant for all
erosion control plans -and permits, CAMA permits,-water system permits, wastewater or septic
system permits, and any. other governmental permits, licenses or agreements obtained by the
Declarant in connection with the development of the Residential Community. After such
assignment and assumption, the Association shall cooperate in good faith to obtain the transfer
of any such permits, agreements ,and licenses on the records of any governmental agency or
department or public or private utility company having. jurisdiction of said matters.
The Turnover Transfer shall be effective upon delivery of the Road Certification, the
Stormwater Certification, the Utility Certification and the Turnover Transfer by the Declarant, and
the Declarant shall have no further responsibility for and shall be released from any liability
with regard to any matters arising .after the effective date, from or relating to the Turnover
Transfer or with regard to any real property or rights therein, Development Permits, or any other
rights, duties or other matters transferred to the Association as a result of the Turnover Transfer.
12. Lot Maintenance by Association. If any Owner shall fail to maintain any Lot
owned by him in a manner which is reasonably neat and orderly, or shall fail to keep improvements
constructed thereon in a state of repair so as not to be unsightly, or shall fail to maintain the utility,
sewer and drainage easement in accordance with the requirements set out herein, or shall otherwise
fail to comply with this Declaration, the By-Laws or the Rules and Regulations, the Association, by
the affirmative vote of a majority of the Members of the Board, and following ten (10) days written
notice to the Owner, may enter upon and make or cause to be made repairs to such improvements
sos2i~2 11

and perform any maintenance on the Lot, such as the removal of trash, cutting of grass, pruning of
shrubbery, weeding, and items of drainage and erosion control, for the purpose of correcting the
identified deficiency. The Association shall have an easement in all Lots for the purpose of
accomplishing the foregoing. The reasonable cost incurred in rendering all such services, plus a
service charge of fifteen percent (15%) of such cost, maybe assessed against the Owner and the Lot
as a Specific Assessment.
80321v2 1 2

Article VI
COVENANT FOR ASSESSMENTS.
1. Creation of the Lien and Personal Obligation of Assessments. Every Owner
of any Lot, by acceptance of a deed therefore, whether or not it shall be so expressed in any such
deed or other conveyance, and every other Owner of any Lot which is made subject to the terms and
conditions of this Declaration, is deemed to covenant and agree to pay to the Association.
a. Annual Assessments.
b. Special Assessments.
c. Specific Assessments.
d. Initial Capital Assessment.
Such assessments shall be fixed, established and collected from time to time as
hereinafter provided. Said assessments, together with such interest thereon, costs of collection
thereof, and reasonable attorney's fees as may be established by the Association, shall be a charge
against and a continuing lien upon the Lot and the improvements thereon, against which each such
assessment is made. Each such assessment, together with such interest and costs and reasonable
attorney's fees, shall also be the personal obligation of the Person who was the Owner of the Lot at
the time the assessment became due. The personal obligations of an Owner for delinquent
assessments shall not pass to his successors in title unless expressly assumed by them and then only
with the consent of the Association.. The liability for all assessments by the record Owners of each
Lot shall be joint and several. No Owner may waive or otherwise escape liability for the assessment
provided for herein bynon-use of the Common Area or abandonment of his Lot.
2. Purpose of Assessments. The assessments levied by the Association shall be
used exclusively for promoting the health, safety and welfare of the Owners and the Residential
Community; enforcing these covenants and the Article s, By-Laws, and Rules and Regulations of
the Association; providing the services and facilities for the purposes of or related to the
maintenance, use and enjoyment of the Common Area and facilities; for the purposes of payment of
common expenses; and managing, repairing, maintaining and replacing the stormwater system,
subdivision signs, and landscaping and fencing located at the entrance to the property.
3. Annual Assessments.
a. The initial Annual Assessment for each Lot shall be established by
the Declarant, but shall not exceed Three Hundred Fifty & no100 Dollars ($350.00) per lot, and
shall be due and payable effective January 1, 2008.
so3z ~ ~2 13

b. From and after the date specified in Section 3(a) above, the
maximum Annual Assessment may be increased effective January 1 of each year by the Board of
Directors, without a vote of the Membership of the Association, by a percentage which may not
exceed twenty (20%) percent of the amount of the Assessment for the previous year.
c. From and after the date specified in Section 3(a) above, the Annual
Assessment may be increased in any amount by an affirmative vote of a majority of the Members
who aze, in person or by proxy, at a meeting duly called for such purpose, written notice of which,
setting forth the purpose of the meeting, shall be sent to all Members not less than thirty (30) days
nor more than sixty (60) days in advance of the meeting.
d. In proposing the Annual Assessment for any assessment yeaz, the
Board shall consider all current costs and expenses of the Association, any accrued debts, and
reserves for future needs. The Board shall annually prepare a separate reserve budget which takes
into account the number and nature of replaceable assets, the expected life of each asset, and the
expected repair or replacement cost. The Boazd may include in the Annual Assessment an amount
for a capital contribution sufficient to permit meeting the projected capitol needs of the Association.
e. Declarant shall be exempt from the payment of the Annual
Assessment for any unsold Lots for a period of two years after the date such Lots are platted of
record in the Office of the Register of Deeds- of Brunswick County as Lots in the Residential
Community. Upon the expiration of two years from the date of recordation of said plat or plats, the
obligations of the Declarant to pay the pro rata shaze of the Annual Assessment of the year
remaining shall commence, and accrual of the obligation to pay assessments to the Association shall
not begin until that date.
4. ~ecial Assessments. In addition to the Annual Assessments authorized
above, the Association may levy, in any assessment yeaz, a Special Assessment applicable to that
year only for the purpose of defraying, in whole or in part, the costs of construction or
reconstruction, unexpected repairs, or replacement of a 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 a majority of the votes of the Members who are voting in person
or by proxy at a meeting duly called for this purpose, written notice of which, setting forth the
purpose of the meeting, shall be sent to all Members not less than thirty (30) days nor more than
sixty (60) days in advance of the meeting.
5. Specific Assessments. The Board shall have the power to levy Specific
Assessments against a particular Lot, as follows:
a. to cover the costs, including overhead and administrative costs, of
providing benefits, items, or services to a particulaz Lot, upon request of the Owner pursuant to a
menu of special services which the Board may from time to time authorize to be offered to Owners
(which might include, without limitation, landscape maintenance, handyman service, pool cleaning,
pest control, etc.), which assessments may be levied in advance of the provision of the requested
benefit, item or service as a deposit against charges to be incurred by the Owner; and
sos2i~2 14

b. to cover costs, including overhead and administrative costs and
reserves incurred for maintenance, repair and replacement of any private roads, signs, mail
boxes, fences and berms which maybe constructed for the benefit of certain specified lots.
c. to cover costs incurred in bringing a Lot into compliance with the
terms of this Declaration, the By-Laws or the Rules and Regulations, or fines or costs imposed as a
consequence of the conduct of an Owner, provided the Board shall give the Owner prior written
notice and an opportunity for a hearing before levying a Specific Assessment under this Section 5.
6. Initial Capital Assessment. Each initial Owner of a Lot agrees to pay an
Initial Capital Assessment in the amount of & no/100 Dollars ($ .00),
for the purpose of establishing the capital improvements fund of the Association. Said amount will
be collected at closing of the initial sale of each 'Lot by the Declarant and shall be paid to the
Association, to be maintained in a separate interest bearing account from the operating account.
7. Uniform Rate of Assessment. Both Annual and Special Assessments must
be fixed at a uniform rate for all Lots, on a per Lot basis, and shall be due and payable on a monthly,
quarterly or annual basis as determined by the Board of Directors. This requirement shall not apply
to Specific Assessments as provided in Section 5 of this Article VI.
8. Due Dates for Assessments.
a. Annual Assessments shall commence as to each Lot on January 1,
2008. The Board of Directors shall fix the amount of the Annual Assessment against each Lot at
least two (2) months in advance of each Annual Assessment period. Written notice of the Annual
Assessment shall be sent to every Owner subject thereto: thirty (30) days in advance of each Annual
Assessment period. The due dates shall be established by the Board of Directors.
b. The Board of Directors- shall fix the commencement date and the due
dates for .any assessments other than the Annual Assessments.
c. The Association, upon demand at any time, shall furnish a certificate
in writing signed by an officer of the Association setting forth whether the assessments on a
specified Lot have been paid. A properly executed certificate of the Association as to the status of
assessments on a Lot is binding upon the Association as of the date of its issuance.
9. Lien .for Assessments.
a. All assessments authorized in this ARTICLE VI shall constitute a
lien against the Lot against which they are levied until paid. The lien shall also secure payment
of interest, late charges (subject to the limitations of North Carolina law), and costs of collection
(including reasonable attorneys fees). Such lien shall be superior to all other liens, except the
liens of all ad valorem taxes or assessments, and any other liens which bylaw would be superior.
80321v2 1 5

b. The Association may record notice of the claim of lien in the
Office of the Clerk of Superior Court of Brunswick County or file a suit to collect such
delinquent assessments and charges. The Association may file Notice of Lis Pendens, bring an
action of law against the Owner personally obligated to pay the same and/or bring an action to
foreclose the lien against the property, or utilize any other remedy provided under North Carolina
law. No Owner may waive or otherwise escape liability for the assessments provided for herein.
10. Effect of Nonpayment of Assessments: Remedies of the Association: Any
assessments or portion thereof which are not paid when due shall be delinquent. If the
assessment or any portion thereof is not paid within thirty (30) days after the due date, the same
shall bear interest from the date of delinquency at a rate not to exceed the maximum legal rate
allowed in the State of North Carolina per annum and in addition, a late fee shall be assessed in
such amount as may be determined by the Board of Directors. The Association may bring an
action against the Owner personally obligated to pay the same, or foreclose the lien against the
property in the same manner as provided in North Carolina for the foreclosure of deeds of trust,
or both, and, in either event, interest, costs and reasonable attorney's fees of any such action shall
be added to the amount of such assessment. The Association may bid for the Lot at the
foreclosure sale and acquire, hold, lease, mortgage, and convey the Lot. The sale or transfer of
any Lot shall not affect the assessment lien or relieve such Lot from the lien for any subsequent
assessments.
11. Failure to Assess. Failure of the Board to fix assessment amounts or rates
or to deliver or mail each Owner an assessment notice shall not be deemed a waiver,
modification, or a release or any Owner from the obligation to pay assessments. In such event,
each Owner shall continue to pay Master Association Assessments on the same basis as for the
last year for which an assessment was made, if any, until a new assessment is made, at which
time the Association may retroactively assess any shortfalls in collections.
12. Declarant's Obligation for Assessments. In addition to the rights of the
Declarant with regard to Annual Assessments as set out in Section 3.c. of this Article VI, during
the Class "B" Control Period, Declarant may annually elect the following options: (i) to pay the full
assessments due on its unsold Lots, or (ii) to pay the difference between the amount of assessments
collected on all Lots subject to assessment owned by Persons other than the Declarant and the
amount of actual expenditures by the Association during the fiscal year, or (iii) pay one-half (%) of
the assessments for Lots for all Lots but which have not yet been sold to a Person other than
Declarant or an authorized builder. Unless the Declarant otherwise notifies the Board in writing at
least 45 days before the beginning of each fiscal year, the Declarant shall be deemed to have elected
to continue paying on the same basis as during the immediately preceding fiscal year. The
Declarant's obligation hereunder maybe satisfied in the form of cash or by "in kind" contribution of
services or materials, or by a combination of these methods.
13. Subordination of the Lien to Mortgas;es and Ad Valorem Taxes. The lien of
the assessments provided for herein on any Lot shall be subordinate to the lien of any first mortgage
and ad valorem taxes on each Lot. The sale or transfer of any Lot shall not affect the assessment
lien; however, the sale or transfer of any Lot pursuant to such mortgage foreclosure or any
80321v2 1 6

proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which
became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for
any assessments thereafter becoming due or from the lien thereof.
14. Exempt Property. The following property shall be exempt from payment
of Assessments:
a. Common Area;
b. Any of the Property dedicated to and accepted by any
governmental authority or public utility;
c. Any of the Property held . by a conservation trust or similar
nonprofit entity as a conservation easement, except to the extent that any such easement lies
within the boundaries of a Lot which is subject to assessment under Section 1, Phase 10.9 (in
which case the Lot shall not be exempted from assessment); and
d. Any Lot which is not approved by any governmental agency for
residential use.
Article VII
USE RESTRICTIONS
1. Plan of Development.
a. Declarant has created the Residential Community as a residential
and recreational development and; in furtherance of its and every other Owner's interest, has
established a general plan of development and the Community-Wide Standard for the Residential
Community. Accordingly, the Properties are subject to guidelines and restrictions governing
land use, individual conduct, and uses: of or actions upon the Properties as provided herein. This
Declaration establishes affirmative and negative covenants, easements, and restrictions (the "Use
Guidelines and Restrictions").
b. All ..provisions of this Declaration and of any Rules and
Regulations shall also apply to all occupants, lessees, guests and invitees of any Lot. Any lease
on any Lot shall provide that the lessee and all occupants of the leased Lot shall be bound by the
terms of this Declaration, the By-Laws, and the rules of the Association.
2. Rules and Regulations. Subject to the terms of this Article VII, the Board
shall implement and manage the Use Guidelines and Restrictions through the Rules and
Regulations which adopt, modify, cancel, limit, create exceptions to, or expand the Use
Guidelines and Restrictions.
80321v2 1 7

3. Residential Purposes. The Properties shall be used only for residential
purposes, except as specifically provided in this Declaration.
4. Minimum Size of Residence. No residence smaller than 1,400 square feet of
heated floor space, exclusive of porches, steps, walks, garages, carports, storage areas, etc., shall be
constructed or located on any building Lot. Provided, that in cases where the area is not more than
ten percent (10%) below the minimum above set out, Declarant, or its designated agents, may, at
their option, approve the construction of the dwelling if it is in conformity with the general
development of the Residential Community. In computing the number of square feet allowed as
provided herein, no square footage in any part of the dwelling that is constructed over a garage will
be counted, unless it is on the same utility hookup as the main dwelling and is a finished part of the
constructed living space.
5. Construction Material. Except for the foundation of a residence, no concrete
block, concrete brick, asbestos siding, aluminum siding, cinder block, tar paper, nor stucco
composition shall be used for the exterior of any residence constructed on any building Lot herein
conveyed, it being intended that only conventional frame, wood, masonite-type hardboard, vinyl,
brick or clay brick exteriors utilized in buildings be constructed on the Lots.
6. Setback Lines. Since the establishment of standard inflexible building
setback lines for location of houses on Lots tends to force construction of houses directly to the side
of other homes with detrimental effects on privacy, view, preservation of important trees and other
vegetation, ecological and related considerations, no specific setback lines are established by this
Declaration. In order to assure, however, that the foregoing considerations are given maximum
effect, Declarant reserves the right to control and approve absolutely the site and location of any
house or dwelling or other structure upon any Lot and a plot plan shall be furnished for approval
before construction begins. In any event, no house shall be erected closer to the front Lot line than
20 feet or nearer to any side line than 5 feet or the minimum distances established by applicable
Brunswick County ordinances, whichever shall be greater, unless a variance is received in writing
prior to construction.
7. Roofs. The main roof structure on any residence must have a minimum
pitch of 5'/12' unless written permission to vary therefrom is first obtained from the Declarant. All
shingles shall be earth tones, such as browns, grays and blacks.
8. Accessory Buildings. Construction plans and site location for any storage
building or other building must be approved by Declarant in writing prior to construction and must
conform to the residence on the Lot in paint color, building style, appearance, size and other matters.
9 Mobile Homes or Vehicles. No house trailer, mobile home, travel trailer or
other recreational vehicle, tent, shack or temporary structure of any nature shall be located on any
Lot or used at any time as a residence, temporarily or permanently, nor may any modular and
prefabricated homes and previously constructed houses be erected or placed on any Lot, without the
express written consent of the Declarant.
80321v2 l 8

10. Fence. No fence shall be erected or hedge grown on any Lot unless written
approval thereof has first been obtained from Declarant. No fence and no hedge shall be permitted
nearer the front Lot line than the rear corners of the house constructed on said Lot unless approved
by Declarant. No garden shall be permitted nearer the front Lot line than fifteen (15) feet back of
the back corner of the house. On Lots having buffer fences installed by the Declarant, the Owner
shall be responsible to inspect and maintain the fence in its original condition unless the
responsibility of maintenance of the fence is given to another entity in writing by the Declarant. All
fences shall be constructed of wood or similar materials, with the finished side on the outside.
11. Tanks. No fuel tanks or similar storage receptacles maybe exposed to view.
Any such receptacles may be installed only within the main` dwelling house, within an accessory
building, within a screened area, or buried underground except that one natural gas or propane tank
of a maximum of 60 gallons may be installed above ground. Each Lot Owner shall provide
receptacles for garbage and all garbage cans, carts and bags must be kept in a screened area,
accessory building or other storage facility, and not visible from the street, except on, garbage pick-
up days.
12. Water. All water to be used in said subdivision for any purpose whatsoever
shall be obtained from (herein
" "), its successors or assigns, unless other sources are approved by
any governmental agency having jurisdiction over said matter, and the Declarant or their successors
or assigns. An area within an eight (8) foot radius from each water meter shall be subject to an
easement for maintenance and repair of such meter. Lot Owners may, however, with the
Declarant's consent, drill shallow wells for irrigation purposes and for non-domestic use provided
said wells and pumps are located so as not to be visible from the streets, are properly enclosed and
landscaped, and comply with any restrictions placed on the depth thereof as maybe approved by the
Declarant.
13. Sewage. Sewage disposal shall only be allowed by individual septic system
serving individual Lots, or a community septic system serving certain Lots as maybe provided in a
supplemental declaration to be recorded in the Brunswick County Registry.
14. Outdoor Structures and Objects. No outdoor statuary, flags or other
decorative objects maybe placed on any Lot without the written approval of the Committee. The
American Flag no larger than 3 feet x 5 feet may be flown on a pole no longer than 5 foot 6
inches from a pole holder attached to the home in an approved location which can be reached by
hand from the ground below so as to be easily installed and removed. Any flags will be displayed
in accordance with traditional rules and regulations governing the flying and display of the
American Flag. No clothes line or similar structure shall be permitted except portable clothes tree
stands which shall not be visible from the street.
15. Pets. No animals, livestock or poultry of any kind shall be raised, bred,
kept or maintained on any Lot or in any dwelling except a limited number of domestic household
pets, which limit maybe set by the Board. Domestic household pets may not be raised, bred, or
kept for any commercial purpose. Pets must be leashed at all times when off Owner's Lot and
80321v2 1 9

droppings must be immediately removed. Pets shall be subject to any applicable laws or
ordinances, including Leash laws. In the event any dog kept or maintained on a Lot or in any
dwelling on the Properties barks excessively, continuously or in a manner that constitutes a
nuisance, the Board may require such dog to wear a collar designed to reduce or control such
excessive barking (provided that such action shall in no event limit any other rights or remedies
for such situation that maybe available to the Board or to any other parties at law or in equity).
16. Interference with Use of Lot. There shall not be maintained any plants or
animals, nor device or thing of any sort whose normal activities or existence are in any way noxious,
dangerous, unsightly, unpleasant or of like nature as may diminish or destroy the enjoyment of other
property in the development by the Owners.
17. Appearance of Property. No Lot or any residence or other structure on any
Lot shall be allowed to be in an unclean, unsightly, or unmaintained condition, which would tend to
decrease the aesthetic beauty of the Residential Community. All lawn mowers, bicycles, toys, grills
and other similar objects must be stored when not in use so as not to be visible by the Owners of
other Lots or the users of any street or recreation area or Common Area. All exterior storage
areas, laundry facilities, utility areas, service yards or areas, carports, electrical meters, water
meters, and gas meters are to be screened from view from streets and adjacent properties by an
enclosure, fence, wall or natural landscape materials.
18. Li ts. All light bulbs or other lights installed in any fixture located on the
exterior of any building on any Lot shall be clear, white or non-frost light or bulbs, except that the
Board may allow traditional and customary exterior lighting and decorative displays during the
Christmas holiday season, subject to reasonable restrictions adopted by the Board in its sole and
absolute discretion.
19. Subdivision of Lot. No Lot shall be subdivided, or its boundary line
changed without the written consent of the Declarant. However, the Declarant hereby expressly
reserves to itself the right to replat any Lot or Lots or change the alignment or placement of any road
as may be necessary to carry out the scheme of development of the Residential Community, in
Declarant's sole discretion including the right to extend streets and roadways for the purpose of
providing access to adjacent properties and to take such other steps as are reasonably necessary to
make such replatted Lot or Lots suitable and fit as a building site.
20. Landscape Maintenance. All Lots shall be mowed regularly, including that
area from the Lot line to the edge of the paved street and kept clear of any unsightly objects or
conditions, and in the event of a breach of this restriction, the Declarant reserves the right to enter
upon the said Lot and mow the grass, clean up the Lot and remove unsightly trash, structures and
objects at Owner's expense. The cost of the work necessary to correct any such condition may be
assessed against the Lot as a Specific Assessment as provided herein.
21. Street Li ting. The Declarant reserves the right to subject the Residential
Community to a contract with Brunswick Electric Membership Cooperative (herein, "BEMC"), or
its successors and assigns, for the installation of underground electric cables and/or the installation
80321v2 20

of street lighting, either or both of which may require an initial payment and/or a continuing monthly
payment by each Owner.
22. Construction. Construction activity on a Lot shall be confined within the
boundaries of said Lot. All rubbish and trash resulting from construction on a Lot shall be collected
and disposed of by the Owner or the Owner's representatives. Upon Owner's failure to collect and
dispose of such trash within fifteen (15) days after receipt of a written notice from Declarant,
Declarant may collect and dispose of such rubbish and trash at the Owner's expense.
23. Mailbox. Each Lot in the Residential Community shall have only one (1)
mailbox and one (1) paper box to be mounted on a single post, and all such boxes shall be as
approved by Declarant. Such mailboxes or paper boxes may be provided by the Declarant or the
builder. Any boxes provided by the builder shall be considered an improvement and must remain
with the Lot. Owners shall maintain all such boxes so as to be neat and attractive in appearance.
24. Antennas. No outside radio or elevision antennas or receivers of any type
shall be erected on any Lot or dwelling unit within the Residential Community, unless and until
written permission for the same has been obtained from the Declarant. Declarant retains the. right if
it approves the erection of any antenna to specify the color, size and. location of the antenna.
25. Future Development. Declarant is not liable and makes no representation as
to the development of any other phase or section except the phase br section covered by the
Declarations. Declarant may make changes in future sections of the Residential Community not
subject to the Declarations, including, but not limited to, changes in design, type of structures,
restrictions or character of section:' All maps, brochures and plans are purely for planning and
illustration purposes and are not to be relied upon as any promise or covenant of whatsoever kind or
nature.
26. Driveway. Each Lot must have a paved driveway at a location approved by
Declarant. Off-street parking for not,less than two passenger automobiles must be provided on
each Lot prior to the occupancy of any,residence constructed on said Lot, which parking areas and
the driveways thereto shall be constructed`of concrete, asphalt, brick or landscape paving blocks.
Only temporary parking shall be allowed on the streets of the Residential Community and only in
designated areas and subject to the rules adopted by the Board.
27. Vehicles. No inoperable vehicle or vehicle without current registration and
insurance, and no large vehicles or tractor-trailers will be permitted on any Lot or in the Residential
Community. The Declarant shall have the right to have all such vehicles towed at the vehicle
Owner's expense. No bus, van, school bus, boat, boat trailers, recreational vehicle, or vehicle larger
than 3/4 ton shall be parked, stored or kept in the Residential Community. Boats shall be kept
inside a storage building or in the back yard not visible from the street or unsightly to the adjacent
Lots.
28. Si is. No signs (including "For Rent", "For Sale", and other similar signs)
or property identification signs shall be erected or maintained on any Lot except with the express
80321 v2 2 1

written permission of the Declarant, its successor or assigns, except as may be required by legal
proceedings; provided, however, that the Declarant or its agents may place "For Sale" or "For Rent"
signs on any Lots for sale or rent, and in suitable places on the Common Area approved by the
Association; and provided, however, that during the development of the Property and the initial
marketing of Lots, the Declarant may maintain a sales office and may erect and display such signs as
the Declarant deems appropriate as aids to such development and marketing, provided that such
signs do not violate any applicable governmental laws or regulations. Such permitted signs shall be
placed in the approximate center of a lot and six feet from the road curb. No sign shall be nailed to
trees.
29. Alterations. No person shall undertake, cause or allow any alteration of
construction in or upon any portion of the Common Area except at the direction or with the express
written consent of the Association.
30. Offensive and Illegal Activities. No immoral, illegal, noxious or offensive
activity or situation shall be carved on or maintained on any Lot or within any residence or structure
located on a Lot, nor shall any use be made of any Lot which may cause embarrassment,
discomfort, annoyance or nuisance to the Association, the Declarant or any Owners. There shall
not be maintained any activity, device or anything of any sort whose normal activities or
existence 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 by the Owners thereof.
All laws, orders, rules, regulations, ordinances or requirements of any government agency having
jurisdiction over the Residential Community or any Owner shall be obeyed.
31. Commercial Activities. No business, trade, profession, commercial activity,
yard sale, garage sale, moving sale, rummage sale, or similar activity for profit or financial gain
(herein, "Business"), maybe conducted on an undeveloped Lot or on the exterior of any residence or
structure located on a Lot. An Owner or occupant may conduct a Business within any residence or
structure located on a Lot, only so long as: (i) the existence or operation of the activity is not
apparent or detectable by sight, sound, or smell from outside the residence or structure in which it is
conducted; (ii) the activity does not involve regular visitation of the Lot by clients, employees,
agents, customers, suppliers, or other business invitees; (iii) the activity does not involve door-to-
door solicitation of residents of the Residential Community; and (iv) the activity is consistent with
the residential character of the Residential Community and does not constitute a nuisance, or a
hazardous or offensive use, or threaten the security or safety of other residents of the Residential
Community, as may be determined in the sole discretion of the Board.
32. Lot Clearing. No lot may be clear cut or substantially cleared without the
written consent of the Committee, as defined in Article VIII herein. In no event may any tree with a
diameter in excess of eight (8) inches measured at the base of the trunk at ground level be cut
without the written consent of the Committee. The Committee may impose a fine in the amount of
$200.00 for each tree cut in violation of this provision.
33. Stormwater Management: All Lots shall be subject to the State of North
Carolina rules and regulations concerning stormwater runoff as these rules are amended from
80321v2 22

time to time (the `Stormwater Regulations"). The covenants in this Section 33 of Article VII are
intended to ensure compliance with State Stormwater Management Permit Number
applicable to the Property (the "Stormwater
Management Permit"), issued by the State of North Carolina, Division of Water Quality, or its
successor agency, under NCAC 2H.1000, as in force now or in the future. The Stormwater
Management Permit and the Stormwater Regulations currently provide:
a. Each Lot shall be subject to the requirement that the allowable built-
upon area per Lot shall be limited to 8725 square feet of impervious surface, inclusive of right-of-
way structures, pavement, walkways or patios of brick, stone, br slate, but not including wood
decking. The covenants in this Section 33 of Article VII cannot be changed or deleted without
consent of the State of North Carolina.
b. The covenants in this'Section 33 of Article VII will be binding on all
Owners, and all persons claiming under them, shall be appurtenant to and run with the land, and
may be enforced by the State of North Carolina. The State of North Carolina is made a beneficiary
of the covenants in this Section 33 of Article VII to the extent necessary to maintain compliance
with the Stormwater Management Permit.
c. Notwithstanding any other provisions in this Declaration, the
covenants in this Section 33 of Article VII_ may not be altered or amended without the express
written consent of the State of North Carolina, Division of Water Quality, or its successor agency.
Without limiting the .foregoing; Declarant hereby reserves the right to impose additional
restrictions upon the Properties as and to the extent required by the terms of the stormwater
permit for the Residential Community as issued by the State of North Carolina. Such additional
restrictions maybe imposed by Declarant by the recording of a Supplemental Declaration, and no
joinder or consent of the Association or any other Owner or Person shall be required for such
Supplemental Declaration.
d. Alteration of the drainage as shown on the approved Stormwater
Management Permit may not take place without the concurrence of the State of North Carolina,
Division of Water Quality, or its successor agency.
e. All runoff from the built-upon areas on each Lot must drain into the
permitted system. This may be accomplished through providing roof drain gutters which drain to
the street, grading the Lot to drain toward the street, or grading perimeter swales to collect Lot
runoff and directing them into the stormwater system or into the street. Lots that will naturally drain
into the system are not required to provide these additional measures.
34. Property Damage. Owners shall be responsible for any damage done to
any streets, roadways, accessways, curbing, street gutters, sidewalks, Common Areas or property
of other Owners within the Properties which maybe caused by any Owner, his agents, contractor
or its subcontractor lessees, employees, guests, licensees or invitees. The Association shall have
the authority to assess any Owner for such damage and such charge shall be a Special
Assessment against the Owner and his Lot(s) in accordance with Article VI herein.
gos2i~2 23

35. Road Use. The roads are to be used by vehicles or pedestrians for the
purposes of transportation. At no time shall any vehicle exceed the speed limit as determined by
the Association or the applicable governmental authority. No permanent, frequent, or long-term
parking is permitted along or on major roads and promenades except in specifically designated
areas. No permanent or temporary structures, including, but not limited to portable basketball and
soccer goals, which impede in any way the use of the roads by vehicular or pedestrian traffic, shall
be maintained on, in or adjacent to the roads. The Association is entitled to adopt reasonable rules
and regulations regarding the supervision, maintenance, control, regulation and use of the roads
and promenades, and to enforce the same in any lawful manner which may include, but not be
limited to, the imposition of fines for violations thereof, which fines shall be Specific
Assessments. Any roads within the Subdivision which are not dedicated for use by the public and
accepted by the North Carolina Department of Transportation, shall be private streets and shall be
designated as Common Area as provided herein and maintained by the Association.
36. Recreational Pathways. Recreational pathways within the Residential
Community may be used only by bicycles, pedestrians, and pedestrian moving devices which are
quiet and otherwise satisfy the requirements of this section. "Pedestrian moving devices" used
within the Residential Community shall not exceed the size of a standard golf cart. Persons using
pedestrian moving devices upon wooden structures within the Residential Community do so at
their own risk; Declarant makes no representation of the weight limitations of any such wooden
structure and assumes no liability for the operation of any vehicle or device upon such structures.
Article VIII
ARCHITECTURAL CONTROL
1. General.
a. No structures, buildings, improvements or construction, which shall
include within its definition, clearing, grading, excavation and other sitework, shall be
commenced, erected, or maintained upon any Lot or the Properties, nor shall any exterior
addition to or change or alteration therein (including, without limitation, any change of color) be
made, except in compliance with this Article VIII and the Design Guidelines, nor shall any such
work commence until the plans and specifications showing the nature, kind, shape, heights,
materials, and location of the same shall have been submitted to and approved in writing as to
harmony of external design and location in relation to surrounding structures and topography by
the Committee according to the provisions of Section 10.2 of Article VIII herein. Structures,
buildings and improvements shall include, but not be limited to any dwelling, garage, fence,
wall, sidewalk, hedge, mass planting, change in grade or slope, drainage pipe, drainage canal,
ditch, swale, catch basin, swimming pool, tree house, playhouse, sign, flag pole, exterior
illumination, monument or marker, outdoor statuary, exterior lights, security lights, storm door,
well utility facility, mailbox, patio, deck, screening for outdoor trash cans or other purposes,
sprinkler system, driveway, outdoor decorative objects, shrubbery or landscaping.
soszi~2 24

b. Any Owner may remodel, paint or redecorate the interior of
structures on his Lot without approval. No approval shall be required to repaint the exterior of a
structure in accordance with the originally approved color scheme or to rebuild in accordance
with originally approved plans and specifications.
c. This Article VIII shall not apply to the activities of the Declarant,
or to improvements to the Common Area by or on behalf of the Association.
d. This Article VIII 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.
2. Architectural Review.
a. Responsibility for administration of the Design Guidelines, as
defined below, and review of all applications for construction and modifications under this
Article VIII shall be managed by the Architectural Review Committee (the "Committee") as
described herein. The members of the. Committee need not be Members of the Association and
may, but need not, include architects, engineers or similar professionals, whose compensation, if
any, shall be established from time to time by the Board. The Board may establish and charge
reasonable fees for review of applications hereunder and may require such fees to be paid in full
or prior to review.
b. The Committee shall consist of at least three, but not more than five,
persons and shall have exclusive jurisdiction over all construction on any portion of the
Properties. During the Class "B" Control Period, the Declarant retains the right to appoint all
members of the Committee who shall serve at the Declarant's discretion. Upon the expiration
of such period, the Board shall appoint the members of the Committee, who shall serve and may
be removed in the Board's discretion.
3. Desi~ Guidelines. The Declarant shall prepare the initial Design
Guidelines and application and review procedures which shall apply to all construction activities
within the Properties. The Design Guidelines may contain general provisions applicable to all of
the Properties, as well as specific provisions which vary from one portion of the Properties to
another depending upon the location, unique characteristics, and intended use. The Committee
shall adopt such Design Guidelines at its initial organizational meeting and thereafter shall have
sole and full authority to amend them subject to the approval of the Board of Directors. The
Committee shall make the Design Guidelines available to Owners who seek to engage in
development or construction within the Properties and all such Persons shall conduct their
activities in accordance with such Design Guidelines.
4. Submission of Plans and Specifications.
a. No construction or improvements, as defined herein, shall be
commenced, erected, placed or maintained on any Lot, nor shall any exterior addition, change or
80321v2 25

alteration be made thereto, until the plans and specifications ("Plans") showing site layout,
structural design, exterior elevations, exterior materials and colors, signs, landscaping, drainage,
lighting, irrigation, utility facilities layout and screening shall have been submitted to and
approved in writing by the Committee. The Design Guidelines shall set forth the procedure for
submission of the Plans. A reasonable fee for the review of said plans shall be required and
submitted, along with said Plans and any other supporting documents required by Committee and
the Board may require a deposit to be posted prior to the commencement of any construction or
work, which sum shall be used to collect any fees, fines or penalties incurred during construction
or work. Any sums remaining at the completion of construction shall be returned to the Owner.
b. In reviewing each submission, the Committee may consider visual
aesthetics, natural platforms and finish grade elevations, harmony of external design with
surrounding structures and environment, and location in the relation to surrounding structures
and plant life. The Committee may require relocation of native plants within the construction
site as a condition of approval of any submission. Location of any driveways shall be subject to
the approval of the Committee.
c. The Association shall have the right to refuse to approve any plans
and specifications or grading plans which are not suitable or desirable, in its sole discretion, for
aesthetic or any other reasons. In so approving such plans, specifications and grading plans, the
Association shall consider the suitability of the proposed building, improvements, structure, or
landscaping and the materials of which it is to be built, the site upon which it is proposed to erect
the same, the harmony thereof with the surroundings, and the effect thereof on the adjacent or
neighboring property.
d. No bulldozing or clearing of trees or excavation of lakes or ponds
shall be commenced until.. the plans, specifications and grading plans showing the nature, kind,
shape and location of work to be done shall have been submitted to and approved in writing by
the Association and a copy thereof, as finally approved, filed permanently with the Association.
e. The Committee shall, within 30 days after receipt of each
submission of the Plans, advise the party submitting the same in writing, at an address specified
by such party at the time of submission, of (i) the approval of Plans, or (ii) the segments or
features of the Plans which are deemed by such committee to be inconsistent or not in conformity
with these Declaration and/or the Design Guidelines, the reasons for such finding, and
suggestions for the curing of such objections. In the event the Committee fails to advise the
submitting party by written notice within the time set forth above of either the approval or
disapproval of the Plans, approval shall be deemed to have been given. Notice shall be deemed
to have been given at the time the envelope containing such notice, properly addressed, and
postage prepaid, is deposited with the U.S. Postal Service, registered or certified mail, return
receipt requested. Personal delivery of such written notice shall, however, be sufficient and shall
be deemed to have given at the time of delivery.
80321v2 26

f. If construction does not commence on a project for which Plans
have been approved within nine (9) months of such approval, such approval shall be deemed
withdrawn, and it shall be necessary for the Owner to resubmit the Plans for reconsideration.
g. Once construction has been initiated on a Lot, the Owner thereof
must complete such construction within ten (10) months. If an Owner does not comply with
such schedule, then Declarant, the Board and the Association shall each have the right (but not
the obligation) to complete such construction on Owner's behalf and at such Owner's expense.
In the event the Declarant, the Board or the Association exercises the right provided in the
immediately preceding sentence, then Declarant, the Board and/or the Association (as the case
maybe) shall be entitled to collect from such Owner, in addition to a reimbursement of all costs
expended in the completion of construction of the Lot, an administrative fee for such work,
which fee shall be equal to twenty percent (20%) of the costs incurred by such party in
completing the work. Any and all of the foregoing costs and fees that may be incurred by or
payable to Declarant, the Board and/or the Association shall be a charge and continuing lien upon
such Lot until paid, and Declarant, the Board and/or the Association may bring an'action against
such Owner, or foreclose the lien against the property in the same manner as provided in North
Carolina for the foreclosure of deeds of trust, or both, and, in either event, interest, costs and
reasonable attorney's fees of any such action shall be added to the amount payable to Declarant,
the Board and/or the Association.
5. No Waiver of Future Ap rp ovals. Each Owner acknowledges that the
members of the Committee will change from time to time and that interpretation, application and
enforcement of the Design Guidelines may vary accordingly. Approval of proposals, plans and
specifications, or drawings for any work done or proposed, or in connection with any other
matter requiring approval, shall not be deemed to constitute a waiver of the right to withhold
approval as to any similar proposals, plans and specifications, drawings, or other matters
subsequently or additionally``submitted for approval.
6. Variance. The Committee may authorize in its discretion reasonable
variances or adjustments from compliance with any of its guidelines and procedures in order to
alleviate practical difficulties and hardship in their enforcement and operation. Such variances
may only be granted, however,. when unique circumstances dictate and no variance shall (a) be
effective unless in writing; or (b) stop the Committee from denying a variance in other
circumstances. Any such variances shall not violate the spirit or the intent of this document to
create a subdivision of Lots owned in fee by various persons with each such Owner having an
easement upon areas owned by the Association.
7. Limitation of Liability. Review and approval of any application pursuant
to this Article VIII is made on the basis of aesthetic considerations only and the Committee shall
not bear any responsibility for ensuring the structural integrity or soundness of approved
construction or modifications, nor for ensuring compliance with building codes and other
governmental requirements. Neither the Declarant, the Association, the Board, nor the
Committee, shall be held liable for any injury, damages, or loss arising out of the review and
approval of any application, including, but not limited to, the granting of a variance, the manner
80321v2 27

or quality of construction, defects in any plans or specifications, or deficiencies in kind or quality
of materials used, or for ensuring compliance with building codes and other governmental
requirements.
8. Enforcement. This Article VIII shall be enforced as provided herein.
a. Any structure or improvement placed or made in violation of this
Declaration shall be deemed to be nonconforming. Upon written request from the Board or the
Declarant, Owners shall, at their own cost and expense, remove such structure or improvement
and restore the land to substantially the same condition as existed prior to the nonconforming
work. Should an Owner fail to remove and restore as required, then Declarant, the Board and the
Association shall each have the right to enter the property, remove the violation, and restore the
property to substantially the same condition as previously existed. All costs, together with the
interest at the maximum rate then allowed by law, may be assessed against the Lot's Owner and
the benefited Lot and collected as an Individual Assessment. In the event the Declarant, the Board
and/or the Association exercises any right provided above in this Section 10.8.a., then Declarant,
the Board and/or the Association (as the case maybe) shall be entitled to collect from the relevant
Owner, in addition to a reimbursement of all costs expended in the removal of the violation and/or
the restoration of the property, an administrative fee for such work, which fee shall be equal to
twenty percent (20%) of the costs incurred by such party in performing the work.
b. Any contractor, subcontractor, agent, employee, or other invitee of
an Owner who fails to comply with the terms and provisions of this Article VIII and the Design
Guidelines may be excluded by the Board from the Properties. In such event, none of the
Association, its officers, or its directors shall be held liable to any Person for exercising the rights
granted by this paragraph.
c. The Association shall have the authority to establish fines for
violations of this Article VIII and the Design Guidelines, including fines for continuing
violations. The fine amounts maybe deducted from any bond posted. If the fines are not paid,
the Association may establish a Specific Assessment against the defaulting Owner and his or her
Lot, in accordance with the provisions of Article VI.
d. In addition to the foregoing, the Association shall have the
authority and standing to pursue all legal and equitable remedies available to enforce the
provisions of this Article VIII and the decisions of the Committee.
Article IX
EASEMENTS
1. Easements for Utilities. There are hereby reserved unto Declarant, so long
as the Declarant owns any of the Property, the Association, and the designees of each, access and
maintenance easements upon, across, over, and under all of the Properties to the extent
reasonably necessary for the purpose of replacing, repairing, and maintaining any cable television
80321v2 28

system, any master television antenna system, irrigation systems, any security and similar
systems, roads, walkways, bicycle pathways, recreation pathways, trails, ponds, lakes, wetlands,
drainage systems, street lights, signage, and all utilities, including, but not limited to, water,
sewer, meter boxes, telephone, garbage pickup, and electricity, irrigation and for the purpose of
installing any of the foregoing on property which it owns or within easements designated for such
purposes in these Declaration or on recorded plats of the Properties. Any damage to a Lot
resulting from the exercise of this easement shall promptly be repaired by, and at the expense of,
the Person exercising the easement rights. Utilities may not be installed or relocated on the
Properties, except as approved by the Board or Declarant.
2. Easement for Utility Installation.
a. All of the Property, including Lots and Common Area, shall be
subject to a perpetual non-exclusive easement for water lines, sanitary sewers, storm drainage
facilities, telephone and electric power lines, television antenna lines, and other public utilities as
shall be established by the Declarant as may hereinafter be designated on any plat. or replat of
parcels within the Residential Community whether the same be within the boundaries of any
Lot(s).
b. Easements and rights of way over and upon the rear, front and side
ten (10) feet of each Lot for drainage and the installation and maintenance of utilities and
services, including, without limitation, water, sewer, drainage and stormwater runoff facilities,
are reserved to Declarantand..its successors and assigns forsuch purposes as Declarant may deem
incident and appropriate to its overall development plan. If the side set back is less than 10 feet
then the reserved easement sha1L be the width of the setback. The easements and right of way
areas reserved by Declarant on each .Lot pursuant hereto shall be maintained continuously by the
Owner, but no structures or plantings or other material shall be placed or permitted or remain
upon such areas or other activities undertaken thereon which may damage or interfere with the
installation or maintenance of utilities or other services, or which may retard, obstruct or reverse
the flow of water or which may damage or interfere with established slope ratios or create
erosion problems. Improvements within such areas also shall be maintained by the respective
Owner except those for which a public authority or utility company is responsible. These
easements and rights expressly include the right to cut any trees, bushes or shrubbery, make any
grading of the soil, or to take any other similar action reasonably necessary in the opinion of the
Declarant to provide an economical and safe installation. The Declarant shall have no
maintenance responsibilities for such easement areas.
c. The Declarant reserves a perpetual, non-exclusive easement for the
installation, operation, maintenance and repair of water, sewer, drainage and all other utilities
within the right of way of all roads and streets and other areas designated for utility easements as
shown on the recorded plats of the Property, which easement may be exercised by Declarant or
any public or private entity charged with the responsibility of installation, operation, maintenance
and repair of said utility systems.
80321v2 29

d. The Association hereinafter may grant easements for utility
purposes for the benefit of the Properties and the Lots now or hereafter located thereon, over,
under, along and through the Common Areas. Provided, however that no such grant of easement
shall have a material adverse effect on the use, enjoyment or value of any Lot.
3. Easements to Serve Additional Property. The Declarant hereby reserves
for itself and its duly authorized agents, representatives, employees, successors, assigns,
licensees, and mortgagees, an easement over the Common Area for the purposes of enjoyment,
use, access, and development of any property which may be annexed to this Declaration. This
easement includes, but is not limited to, a right of ingress and egress over the Common Area for
construction of roads and for connecting and installing utilities on such property.
4. Easements for Cross-Drainage.
a. Every Lot and the Common Area shall be burdened with easements
for drainage of water runoff from other portions of the Properties; provided, no Lot Owner shall
alter the drainage on any Lot so as to materially increase the drainage of water onto adjacent
portions of the Properties without the consent of the Owner of the affected property.
b. The Properties are burdened with a permanent and right to use
easement for the benefit of the Declarant and its successors and assigns, for the stormwater
runoff and drainage facilities located on the Properties, including, without limitation, any
stormwater retention ponds or ditches. This easement includes the right to drill, install, locate,
maintain and use pipes, conduits and pumps running to the stormwater retention ponds and other
related facilities located on the Properties.
5. Power to Grant Easements. Subject to the requirements of the Planned
Community Act, the Association shall have the power and authority to. grant and to establish in,
over, upon and across the Common Area conveyed to it such further easements as are requisite
for the convenient use and enjoyment of the property.
6. Easement for Entry. The Association have the right, but not the
obligation, to enter upon any Lot for emergency, security, and safety reasons, to perform
maintenance pursuant to this Declaration, and to inspect for the purpose of ensuring compliance
with this Declaration, any Supplemental Declaration, the Article s, By-Laws, and the Rules and
Regulations, which right may be exercised by any member of the Board, the Association,
officers, agents, employees, and managers, and all policemen, firemen, ambulance personnel, and
similar emergency personnel in the performance of their duties. Except in an emergency
situation, entry shall only be during reasonable hours and after notice to the Owner. This right of
entry shall include the right of the Association to enter upon any Lot to cure any fire or other
hazard in the event an Owner fails or refuses to cure the condition within a reasonable time after
request by the Board, but shall not authorize entry into any single family detached dwelling
without permission of the Owner, except by emergency personnel acting in their official
capacities.
so321~2 30

7. Easement for Maintenance. All maintenance of any water, sewer or
drainage easement shall be the responsibility of the Owner of the Lot on which said easement is
located. No structure, planting or other material shall be placed or permitted to remain which
may damage or interfere with the installation and maintenance of utilities, sewer or drainage
facilities, or which may change the direction of flow of drainage channels in the easements. The
easement area of each Lot and all improvements in it shall be maintained continuously by the
owner of the Lot, except for those improvements for which a public authority or utility company
is responsible.
8. Easement for Irri ation.
a. There is hereby reserved for the benefit of the Declarant, the Association,
and their successors and assigns, a permanent exclusive easement and right (1) to pump water
from the lakes, ponds, waterways, basins, water table, wells, water dependant structures and
other bodies of water located in, on or under the Properties for the purpose of irrigating any
portion of the Properties, and (2) to drill, install, locate, maintain and use wells, pumping
stations, water towers, filtration basins and tanks and related water. facilities and systems. within
the Common Areas and/or lands within the Properties owned by the Declarant. The pumping or
other removal of any water from any lake, pond, or body of water wholly or partly within the
Properties, for any purpose other than fire fighting and as provided herein is prohibited without
express written permission of the Declarant and/or the Association.
b. The Property is ..hereby burdened with a permanent, exclusive
easement in favor of the Declarant and its successors and assigns, for overspray and/or surface or
sub-surface flow of water from any irrigation system serving the Properties. Under no
circumstances shall the Declarant or the Association be held liable for any damage or injury
resulting from said water, or the exercise of this easement.
9. Easements for Owner's Ingress and Egress. Every Owner, and his or her
heirs, successors, assigns, guests and licensees, shall have a perpetual easement and right of
ingress and egress over and across any of the roads and sidewalks located or to be located within
the Properties, as shown on .any recorded plats of the Property, for the purpose of providing
vehicular and. pedestrian access to and from the Properties. Notwithstanding the foregoing,
Declarant shall be entitled to restrict access on certain roads and sidewalks in Declarant's
discretion. Accordingly, the use of such roads and sidewalks shall be subject to applicable Rules
and Regulations.
10. Easement for Pathways. Each Owner, and their authorized guests or
invitees, shall have a perpetual, non-exclusive easement for the use and enjoyment of bicycle
paths, pedestrian paths, or nature preserve trails, if any, which may be established by the
Declarant. Notwithstanding the foregoing, Declarant shall be entitled to restrict access to the
aforementioned improvements and amenities in Declarant's discretion. Accordingly, the use of
such improvements and amenities shall be subject to applicable Rules and Regulations.
11. Common Area Easement.
ao3z ~ ~2 31

a. Every Owner of a Lot within the Properties, as an appurtenance to
such Lot, shall have a perpetual easement over and upon the Common Areas within the
Properties for each and every purpose or use to which such Common Areas were intended as
determined by their type, or for which such Common Areas generally are used, including, but not
limited to, easement of access, maintenance, repair or replacement of the Common Areas. Such
easements shall be appurtenant to and shall pass with the title to every Lot located within the
Properties, whether or not specifically included in a deed thereto.
b. An exclusive easement is hereby established in favor of Declarant
over all Common Areas for access to adjacent properties for the purposes of future development
and the installation of streets and public utilities.
12. Easements Run with the Land. All easements and rights described herein
are easements appurtenant, running with the land, and shall inure to the benefit of and be binding
on all undersigned, its successors and assigns, and any Owner, purchaser, Mortgagee and other
person having an interest in said land, or any part or portion thereof, regardless of conveyance, or
in any mortgage or trust deed or other evidence of obligation, to the benefit of and be binding on
the undersigned, its successors and assigns, and any Owner, purchaser, Mortgagee and other
person having an interest in said land, or any part or portion thereof, regardless of whether or not
reference to said easement is made in the respective deeds of conveyance, or in any Mortgage or
trust deed or other evidence of obligation, to the easements and rights described in these
Declaration.
Article X
COMPLIANCE AND ENFORCEMENT
1. Enforcement. In the case of failure of an Owner or any Person to comply
with any of the terms and provisions contained in this Declaration, the Article s, the By-Laws,
the Design Standards, and/or Rules and Regulations of the Association, the Association, the
Declarant, any Owner, or an aggrieved Owner within Seabrooke on behalf of the Association, or
any Owner on behalf of all the Owners within Seabrooke, shall have the right to enforce by any
proceeding at law or in equity, all of the conditions, covenants and restrictions of this
Declaration, the Article s, By-Laws, the Design Standards and/or the Rules and Regulations of
the Association, as amended, revised or supplemented form time to time. Any Owner shall have
the right to enforce any covenant, condition and restriction of this Declaration, the Article s, the
By-Laws, the Design Standards, and/or Rules and Regulations of the Association, which confers
any right or privilege on the Owner. The prevailing party in any legal action brought pursuant to
this Article X shall be entitled to collect all costs thereof, including reasonable attorney's fees.
2. Remedies. The Association shall have the right to remedy the violation
and assess the costs of remedying same against the offending Owner as a Specific Assessment as
provided herein.
so3zi~z 32

3. Suspension of Ri ts. For any violation by an Owner, including, but not
limited to, the nonpayment of any Initial Capital Contribution, Annual, Special or Specific
Assessment, the Association shall have the right to suspend the offending Owner's voting rights
and the use by such Owner, his agents, lessees, employees, licensees and invitees of the Common
Areas and recreational facilities in Seabrooke for any period during which a violation continues
except that such penalties may not be for more than sixty (60) days for violation of any of the
Association's published Rules and Regulations.
4. Fines. The Association may establish a schedule of fines for the violation
of this Declaration, the Article s, By-Laws and Rules and Regulations. If an Owner does not pay
the fine within 15 days the fine may be assessed by the Association as a Specific Assessment
against the property and maybe enforced by the Association in accordance with this Declaration.
5. Remedies Cumulative. The remedies provided by this Article X are
cumulative, and are in addition to any other remedies provided bylaw.
6. Waiver. The failure of the Association or any person or Owner to enforce
any restriction contained in this Declaration, the Article s, the By-Laws. or the
Rules and Regulations shall not be deemed a waiver of the right to do so
thereafter.
7. Cost Assessment. The Association shall have the right to remedy any
violation of this Declaration or to place any Lot in compliance with this Declaration and assess the
costs of such action against the offending Owner as a Specific Assessment. The cost of the work
necessary to correct any such condition or to place any Lot in compliance with this Declaration may
be assessed against the Lot as a Specific Assessment as provided herein.
Article XI
CONDEMNATION
1. If any part. of the Common Area shall be taken (or conveyed in lieu of
condemnation by the Board acting. on a vote of at least 67% of the total Class "A" votes in the
Association and subject to the approval of the Declarant, as long as the Declarant owns any of the
Property) by any authority having the power of condemnation or eminent domain.
2. If the taking involves a portion of the Common Area on which
improvements have been constructed, the Association shall restore or replace such improvements
on the remaining land included in the Common Area to the extent available and practicable,
unless within 60 days after such taking, upon a vote at least 67% of the total Class "A" Members
of the Association and subject to the approval of the Declarant, so long as the Declarant owns
any of the Property, the Association shall otherwise agree. Any such construction shall be in
accordance with plans approved by the Board. The provisions of the By-Laws regarding funds
for the repair of damage or destruction shall apply.
sosz~~2 33

Article XII
MORTGAGEE PROVISIONS
1. Notice to Association. Upon request, each Owner shall be obligated to
furnish to the Association the name and address of the holder of any Mortgage encumbering such
Owner's Lot.
2. Failure of Mort~,a~ee to Respond. Any Mortgagee who receives a written
request from the Board to respond to or consent to any action shall be deemed to have approved
such action if the Association does not receive a written response within 30 days of the mailing
of such request, provided such request is delivered to the Mortgagee by certified or registered
mail, return receipt requested.
A rti rl P XTTT
DECLARANT' S RIGHTS
1. Transfer of Declarant's Rights. Any or all of the special rights and
obligations of the Declarant set forth in this Declaration or the By-Laws may be transferred to
other Persons, provided that the transfer shall not reduce an obligation nor enlarge a right beyond
that contained in this Declaration or the By-Laws. No such transfer shall be effective unless it is
in a written instrument signed by the Declarant and duly recorded in the land records of
Brunswick County, North Carolina.
2. Rights of Builders and Declarant. So long as sales of Lots by the
Declarant shall continue, the Declarant, and Builders authorized by Declarant, may maintain and
carry on such facilities and activities as, in the sole opinion of the Declarant, may be reasonably
required, convenient, or incidental to the construction or sale of such Lots, including, but not
limited to sales and business offices, signs, model .units, and sales offices notwithstanding
anything in this Declaration to the contrary. The Declarant and authorized Builders shall have
easements for access to and use of such facilities.
3. Rights to Alter. The rights reserved by Declarant herein include the right
to change, alter or designate Lot(s), roads, utility and drainage facilities and easements, and to
change, alter or redesignate such other present and proposed amenities or facilities as may in the
sole judgment of the Declarant, be necessary or desirable. The rights reserved in this Section
specifically include the right of Declarant to redesignate, change, or alter any platted Lot(s) into
road(s).
Article XIV
DURATION, AMENDMENT AND TERMINATION
so3z~~z 34

1. Lots, Persons and Entities Subject to the Declaration, Duration and
Termination. All present and future Owners, tenants, and occupants of Lots and their guests or
invitees, licensees, employees or agents, shall be subject to, and shall comply with the covenants,
conditions, restrictions and affirmative obligations set forth in this Declaration, and as the
Declaration maybe amended from time to time. The Acceptance of a deed of conveyance or the
entering into of a lease or the entering into occupancy of any Lot shall constitute an agreement
that the provisions of the Declaration are accepted and ratified by such Owner, tenant or occupant
and that they will fully comply with the terms and conditions of said Declaration. The
covenants, conditions, restrictions, and affirmative obligations of the Declaration shall inure to
the benefit of and be enforceable by the Association, or the Owner of any Lot, their respective
legal representatives, heirs, successors and assigns, for a term of forty (40) years from the date
the Declaration is recorded in the Brunswick County Registry, after which date the Declaration
shall be extended for successive periods of forty (40) years, unless the Declaration is terminated
as provided in the Planned Community Act (provided that, during the Class "B" Control Period,
any termination shall also require the consent of Declarant). The covenants, restrictions,
conditions and affirmative obligations of these Declaration shall run with and bind the land and
shall bind any person having at any time any interest or estate in any of the Properties. as though
such provision were made a part of each and every deed of conveyance or lease.
2. Amendment. In addition to any other rights of amendment reserved or
allowed by any other provision of this Declarafion'or by the Planned Community Act, as long as
Declarant owns any of the Property, this Declaration .may be amended by Declarant in its
discretion, except as .otherwise specifically ...provided in Section 5 of Article III of this
Declaration. Retention and exercise of this right by the Declarant is not intended to affect the
general or common scheme of development for the property herein described but to correct
and/or modify situations or circumstances which may arise during the course of development and
to bring the Property into compliance with said common scheme of development and/or the
Community Wide Standard. Thereafter, the Declaration maybe amended by vote of not less than
sixty-seven percent (67%) of the Class "A" Members, and an instrument must be recorded at the
Brunswick County Registry for such an amendment to be effective. In addition, the Declarant
may amend the Declaration to annex. additional property and make it subject to the terms,
conditions, .'restrictions, obligations and covenants of this Declaration as provided herein. No
amendments-may remove, revoke, or modify any benefit, right or privilege of the Declarant
hereunder without the written consent of the Declarant or the assignee of such right or privilege.
3. Stormwater Restrictions. Notwithstanding any provision in this Article
XIV to the contrary, any amendment to the Declaration for the purpose of bringing the
Residential Community into compliance with the Stormwater Regulations shall be subject to the
provisions of Section 33 of Article VII, herein.
Article XV
GENERAL PROVISIONS
so3zi~z 35

1. Common Area and Amenities. All of the Common Area and any other
park, recreation area, recreation facility, dedicated access or other amenity appurtenant to the
Properties, whether or not shown and delineated on any recorded plat of the Properties, shall be
considered private and for the sole and exclusive use of the Owners of Lots within the Properties.
Neither Declarant's execution nor the recording of any plat nor any other act of Declarant with
respect to such area is, or is intended to be, or shall be construed as a dedication to the public of
any such areas, facilities, or amenities.
2. Conflict. In the event of any irreconcilable conflict between these
Declaration and the By-Laws or Article s of the Association, the provisions of this Declaration
shall control.
3. Severability. Invalidation of any one of these covenants or restrictions by
judgment or any court, agency or legislative order shall in no way affect any other provision,
covenants, conditions or restrictions contained in this Declaration.
4. Captions. The captions preceding the various Article s of this Declaration
are for the convenience of reference only, and shall not be used as an aid in interpretation or
construction of this Declaration. As used herein, the singular includes the plural and where there
is more than one Owner of a Lot, said Owners are jointly and severally liable for the obligations
herein imposed. Throughout this Declaration, references to the masculine shall be deemed to
include the feminine, the feminine to include the masculine and the neuter to include the
masculine and feminine.
5. Delegation of Ri ts. The Declarant may from time to time delegate any or all
of its rights, powers, discretion and duties hereunder to such agent or agents as it may nominate. It
may also permanently assign any or all of its powers and duties (including discretionary powers and
duties) obligations, rights, title, easements and estates reserved to it by this Declaration, to any one
or more corporations, associations, or persons that will accept the same. Any such agreement shall
be in writing recorded among the land records of Brunswick County, and the assignee shall join
therein for the purpose of evidencing its acceptance of the same, and such assignee shall thereupon
have the same rights, title, powers, obligations, discretion and duties as are herein reserved to the
Declarant, and the Declarant shall thereupon be released therefrom.
6. Notice by Electronic Means. Any written notice required to be provided
pursuant to the Declaration, the Article s, the Bylaws, the Design Guidelines, and/or the Rules
and Regulations of the Association (each a "Governing Document") may be provided in
accordance with the provisions of the applicable Governing Document. Alternatively, and to the
extent permitted by North Carolina law, written notice may be provided by electronic means,
including by electronic mail over the Internet, to an electronic mailing address designated in
writing by the Member or other Person designated as a recipient of said notice. Permitted notice
given electronically shall be deemed to be delivered when dispatched, unless an error message is
reported back to the sending system.
ao3z~~2 36

7. Conflicts with the Planned Community Act
To the extent any provision of this Declaration is directly inconsistent with the terms of the
Planned Community Act and such provision of this Declaration cannot reasonably be reconciled
with said Planned Community Act, the provisions of the Planned Community Act shall be
controlling with regard to such term.
NEXT PAGE IS SIGNATURE PAGE
soszi~2 37

IN TESTIMONY WHEREOF, the Declarant has caused this instrument to be signed
in its name by its duly authorized officers, the day and year first set out above.
By:
HOLLY TREE INVESTMENTS, LLC
Executive Manager
80321 v2 3 g

STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, a Notary Public of the State and
County aforesaid, certify that Ernest D. Hackney, Jr. personally came before me this day and
acknowledged that they are Executive Manager of Holly Tree Investments, LLC, a North Carolina
limited liability company with its principal office in Brunswick County, and that by authority duly
given, the foregoing instrument was signed in its name by its Executive Managers on behalf of the
limited liability company.
WITNESS my hand and official seal this day of , 2008.
Notary Public
My Commission Expires:
so3z~~z 39

EXHIBIT A
Legal Description
BEING ALL the property described as "Seabrooke " as shown on map thereof as recorded in Map
Cabinet ,Page of the Brunswick County Registry. Reference to said map is hereby
made for a more particular description.
ao32i~2 40

CONSENT OF MORTGAGEE
BRANCH BANHING AND TRUST COMPANY, a North Carolina banking
corporation, is the holder of that certain Deed of Trust on the property as described in the foregoing
Declaration of Covenants, Conditions and Descriptions for Seabrooke (herein called,
"Declaration"), said Deed of Trust having been filed in Book 2398 at Page 548, in the Office of the
Register of Deeds of Brunswick County, and as holder of said Deed of Trust does hereby consent to
the terms, conditions and covenants in the Declaration and agrees that the lien of said Deed of Trust
is subject to the terms, conditions and covenants contained in said Declaration.
In witness whereof, BRANCH BANHING AND TRUST COMPANY has caused
this Consent of Mortgagee to be signed in its corporate name by its duly authorized officers and its
seal to be hereunto affixed by authority of its Board of Directors, this the day of
2008, and BB&T COLLATERAL SERVICE CORPORATION, as
Trustee, has caused this Consent of Mortgagee 'to be signed in its corporate name by its duly
authorized officers and its seal to be hereunto affixed by authority of its Board of Directors, this the
day of , 2008.
BRANCH BANHING AND TRUST COMPANY.
By:
President
BB&T COLLATERAL SERVICE CORPORATION
By:
President
ao3z~~2 41

STATE OF NORTH CAROLINA
COUNTY OF
I, a Notary Public of the State and County
aforesaid, certify that personally came before me this
day and acknowledged that he is of BRANCH BANHING AND TRUST COMPANY,
a banking corporation, and that by authority duly given and as the act
of the corporation, the foregoing instrument was signed in its name by its President.
WITNESS my hand and official seal this day of , 2008.
Notary Public
My Commission Expires:
STATE OF NORTH CAROLINA
COUNTY OF
I, a Notary Public of the State and County
aforesaid, certify that personally came before me this
day and acknowledged that he is President of BB&T COLLATERAL SERVICE
CORPORATION, a North Carolina corporation, and that by authority duly given and as the act of
the corporation, the foregoing instrument was signed in its name by its President.
WITNESS my hand and official seal this day of , 2008.
Notary Public
My Commission Expires:
sos2i~2 42