SW8981211_Current Permit_19990304

State of North Carolina
Department of Environment
and Natural Resources
Wilmington Regional Office
James B. Hunt, Jr., Governor
Wayne McDevitt, Secretary
Division of Water Quality
Mr. Lawrence S. Spell
Daisywood Development, L.L.C.
8810 Emerald Drive
Emerald Isle, North Carolina 28594
Dear Mr. Spell:
NCDENR
NORTH CAROLINA DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES
March 4, 1999
Subject: Permit No. SW8 981211
Krystal Villas
Low Density Stormwater Project
Carteret County
The Wilmington Regional Office received the Stormwater Management Permit Application for Krystal Villas
on December 3, 1998, with final information on March 4, 1999. Staff review of the plans and specifications
has determined that the Droject, as proposed, will comply with the Stormwater Regulations set forth in Title
15A NCAC 2H.1000. We are forwarding Permit No. SW8 981211 dated March 4, 1999, for the construction
of Krystal Villas.
This permit shall be effective from the date of issuance until rescinded and shall be subject to the conditions
and limitations as specified therein, and does not supersede any other agency permit that may be required.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to
request an adjudicatory hearing upon written request within thirty (30) days following receipt of this permit.
This request must be in the form of a written petition, conforming to Chapter 150B of the North Carolina
General Statutes, and filed with the Office of Administrative Hearings, P.O. Drawer 27447, Raleigh, NC
27611-7447. Unless such demands are made this permit shall be final and binding.
If you have any questions, or need additional information concerning this matter, please contact either Greg
Stutts or me at [phone].
.Sincerely,
��,� Cry /�--� •.
Rick Shiver
Water Quality Regional Supervisor
RSS/ges: S:\WQS\STORMWAT\PERMIT\981211.MAR
cc: John P. McLean, P.E.
Katrina Marshall, Carteret County Inspections
Wilmington Regional Office
Central Files
Greg Stutts
127 Cardinal Dr. Ext., Wilmington, North Carolina 28405 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer 50% recycled/10% post -consumer paper

STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRON1vTENT -4.114n NATURAL u�SOI,roCES
DIVISION OF WATER QUALITY
STATE STORMWATER MANAGEMENT PERMIT
LOW DENSITY DEVELOPMENT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended,
and other applicable Laws, Rules and Regulations
PERMISSION IS HEREBY GRANTED TO
Daisywood Development, L.L.C.
Krystal Villas
Carteret County
FOR THE
construction, operation and maintenance of a 30 % low density development in compliance with the provisions
of 15A NCAC 2H .1000 (hereafter referred to as the "stormwater rules") and the approved stormwater
management plans and specifications, and other supporting data as attached and on file with and approved by
the Division of Water Quality and considered a part of this permit for Krystal Villas.
The Permit shall be effective from the date of issuance until rescinded and shall be subject to the foiiowing
specific conditions and limitations:
I. DESIGN STANDARDS
1. The total allowable built -upon area for the tract is 15,289 square feet. This permit covers the
construction of 13,440 square feet of built -upon area.
2. The overall tract built -upon area percentage for the project must be maintained at 30%, as required by
Section 1005 of the stormwater rules.
3. Approved plans and specifications for projects covered by this permit are incorporated by reference and
are enforceable parts of the permit.
4. The only runoff conveyance systems allowed will be vegetated conveyances such as' swales with
minimum side slopes of 3:1 (H: V) as defined in the stormwater rules and approved by the Division.

State Stormwater Management Systems
Permit No. SW8 981211
5. No piping is allowed except:
a. That minimum amount necessary to direct runoff beneath an impervious surface such as a road.
b. That minimum amount needed under driveways to provide access.
II. SCHEDULE OF COMPLIANCE
1. Projects covered by this permit will maintain a minimum 30 foot wide vegetative buffer between all
impervious areas and surface waters.
2. The permittee is responsible for verifying that the proposed built -upon area does not exceed the
allowable built -upon area.
3. The Engineer/Owner/Developer/Permittee must certify in writing that the project's stormwater controls,
and impervious surfaces have been constructed within substantial intent of the approved plans and
specifications. Any deviation from the approved plans must be noted on the Certification.
4. The Director may notify the permittee when the permitted site does not meet one or more of the
minimum requirements of the permit. Within the time frame specified in the notice, the permittee shall
submit a written time schedule to the Director for modifying the site to meet minimum requirements.
The permittee shall provide copies of revised plans and certification in writing to the Director that the
changes have been made.
5. Deed restrictions are incorporated into this permit by reference and must be recorded with the Office
of the Register of Deeds prior to the sale of this property. Recorded deed restrictions must include,
as a minimum, the following statements related to stormwater management:
"The maximum built -upon area is 15,289 square feet, inclusive of that portion of the
right-of-way between the front lot line and the edge of the pavement, structures, pavement,
walkways of brick; stone, slate, but not including wood decking. "
"This permit covers the construction of 13,440 square feet of impervious area. Construction of
additional impervious area will require a permit modification. "
"The covenants pertaining to stormwater regulations may not be changed or deleted without
concurrence of the State. "
"Filling in or piping of any vegetative conveyances (ditches, swales, etc.) associated with the
development except for average driveway crossings, is strictly prohibited by any persons. "
"Projects within CAMA's Area of Environmental Concern (AEC) are subject to a reduction of
the permitted amount of built -upon area due to CAM.A jurisdiction within the AEC. "
6. A copy of the recorded restrictions must be received by this Office within 30 days of the date of
recording.
Ke

State Stormwater Management Systems
Permit No. SW8 981211
7. The following items will require a modification to the permit. Revised plans, specifications and
calculations must be permitted prior to the permittee beginning construction on the modification:
a. Any revision to the approved plans, regardless of size.
b. Project name change.
C. Transfer of ownership.
d. Redesign or addition to the approved amount of built -upon area.
e. Further subdivision of the project area.
f. Filling in, altering or piping any vegetative conveyance shown on the approved plan.
8. The Director may determine that other revisions to the project should require a modification to the
permit.
9. Swales and other vegetated conveyances shall be constructed in their entirety, vegetated, and be
operational for their intended use prior to the construction of any built -upon surface except roads.
10 During construction, erosion shall be kept to a minimum and any eroded areas of the swales or other
vegetated conveyances will be repaired immediately.
11. The permittee shall at all times provide the operation and maintenance necessary to operate the
permitted stormwater management systems at optimum efficiency to include:
a. Inspections
b Sediment removal.
C. Mowing, and revegetating of the side slopes.
d. Immediate repair of eroded areas.
e. Maintenance of side slopes in accordance with approved plans and specifications.
12. The permittee shall submit the Engineer/Owner/Designer/Permittee Certification within 30 days of
completion of the project.
13. The permittee shall submit all information requested by the Director or his representative within the
time frame specified in the written information request.
III. GENERAL CONDITIONS
1. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to
an enforcement action by the Division of Water Quality, in accordance with North Carolina General
Statutes 143-215.6A to 143-215.6C.
2. The permit issued shall continue in force and effect until revoked or terminated.
3. The permit may be modified, revoked and reissued or terminated for cause. The filing of a request for
a permit modification, revocation and reissuance, or termination does not stay any permit condition.
4. The issuance of this permit does not prohibit the Director from reopening and modifying the permit,
revoking and reissuing the permit, or terminating the permit as allowed by the laws, rules, and
regulations contained in Title 15A of the North Carolina Administrative Code, Subchapter 2H.1000;
and North Carolina General Statute 143-215.1 et. al.
0

State Stormwater Management Systems
Permit No. SW8 981211
5. The permit is not transferable to any person except after notice to and approval by the Director. The
Director may require modification or revocation and reissuance of the permit to change the name and
incorporate such other requirements as may be necessary. A formal permit request must be submitted
to the Division of Water Quality accompanied by the appropriate fee, documentation from both parties
involved, and other supporting materials as may be appropriate. The approval of this request will be
considered on its merits, and may or may not be approved.
6. The permittee grants permission to DENR Staff to enter the property for the purpose of inspecting all
components of the stormwater management facility.
7. The issuance of this permit does not preclude the Permittee from complying with any and all statutes,
rules, regulations, or ordinances which may be imposed by other government agencies (local, state and
federal) which have jurisdiction.
Permit issued this the 4th day of March, 1999.
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
---------------
A. Preston Howard, Jr., P.E. , Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number SW8 981211
61

State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
STURWiVA-1 ER MANAGEMENT PERMIT APPLICATION FORM
This form may be photocopied for use as an original
I. GENERAL INFORMATION
1. Applicants name (specify the name of the corporation, individual, etc. who owns the project):
Daisywood Development, LLC
2. Print Owner/Signing Official's name and title (the person who is legally responsible for the facility and
its compliance):
Lawrence S. Spell, Managing Partner
3. Mailing Address for person listed in item 2 above:
8810 Emerald Drive
City: Emerald Isle State: N.C. 28594
:
Telephone Number. ( 252 �� 3 5 4- 3 212
4. Project Name (subdivision, facility, or establishment name - should be consistent with project name on
plans, specifications, letters, operation and maintenance agreements, etc.):
Krystal Villas
5. Location of Facility (street address):
8827 - 8841 Janell Lane
Emerald Isle Carteret
6. Directions to facility (from nearest major intersection):
From the intersection of NC 58 and Mallard Drive, turn south and proceed
to Reed Drive (approximately 250 feet). Turn west (right) and go
approximately 200 feet to Janell Lane. Project is sou ).
2, Latitude 3 4- 3 0- 2 4 Lnngih ide 17 - 0 3- 2 0 of facility
8. Contact person who can answer questions about the facility:
Name Lawrence Si Spell Telephone Number. ( 252 354-3212
II. PERMIT INFORMATION:
1. Specify whether project is (check one): X New Renewal Modification
2. _ If this application is being submitted as the result of a renewal or modification to an exist�g permit, list
the omfing permit number N / A and its issue date (if known) N A
Form SWU-101 April 1998 Paoe 1 of 4

3. Specify the type of project (check one):
X Low Density High Density Redevelop General Permit Other
4. Additional Project Requirements (check applicable blanks):
CAMA Major X Sedimentation/Erosion Control X 404 Permit
III. PROJECT INFORMATION
1. in the as n �
space provided below, summarize how stormwater will be treated. Also attach a detailed narrative
(one to two pages) describing stormwater.management for the project.
Storm water runoff will be directed from the roof tops and parking areas
(without curbs and gutters) toward a 404 wetlands area actually located
under and to the rear of the proposed residences on grasse swa es(so ).
2. Stormwater runoff from this project drains to the White Oak (a l t ho ugh .not off site)
River basin.
3. Total Project Area: 1 : 17 acres 4. 26.4
. Project Built Upon Area
5. How many drainage basins does the project have? 1
6. Complete the following information for each drainage basin If there are more than two drainage basins in
the project, attach an additional sheet with the information for each basin provided in the same format as
below.
iving Stream Name
iving Stream Class
page Basin Area
ing Impervious* Area
osed Impervious*Area
% Impervious* Area (total
C (if it could reach
-'7 ;'3'F' s q ua r e t.
13,440 sq. ft
26.4
e un-named Cana
I -i®. i -
On -site Buildings
5,440 s, f t.
On -site Streets
600 s . f t .
On -site Parking
6,400 s q. f t.
On -site Sidewalks
800 s cjq . f t .
Other on -site
ZOO s q , It.
Off -site
Total:1394 v sq. Ir.
Impervious area is defined as the built upon area including, but not Iimited to, buildings, roads, parking
areas, sidewalks, gravel areas, etc.
7. How was the off -site impervious area listed above derived?
There is no off —site impervious area which drains onto this site.
IV. DEED RESTRICTIONS AND PROTECTIVE COVENANTS
Deed restrictions and protective covenants are required to be recorded for all low density projects and all
subdivisions prior to the sale of any lot. Please see Attachment A for the specific items that must be recorded.
Form SWU-101 April 1998 Page 2 of 4

By your signature below, you certify that the recorded deed restrictions and protective covenants for this project
shall include all the items required by the permit, that the covenants will be binding on all parties and persons
claiming under them, that they will run with the land, that the required covenants cannot be changed or
deleted without concurrence from the State, and that they will be recorded prior to the sale of any lot.
V. AGENT AUTHORIZATION
If you wish to designate submittal authority to another individual or firm so that they may provide
information on your behalf, please complete this section: . . .
Designated agent (individual or firm): John P . McLean
Ma7agAddmss 106 Manatee Street
Gly: Cape Carteret 5tat: N.C. TM_ 28584
Phone: ( 252 ) 393-2219
VI. SUBMITTAL REQUIREMENTS
Fax ( 252 1 393-2463
This application package will not be accepted by the Division of Water Quality unless all of the applicable
items are included with the submittal.
1. Please indicate that you have provided the following required information by signing your initials in the
space provided next to each item.
• Original and one copy of the Stormwater Management Permit Application Form
• One copy of the applicable Supplement Form(s) for each BMP (see Attachment A)
• Permit application processing fee (see Attachment A)
• Two copies of plans and specifications including:
Detailed narrative description of stormwater treatment/management
• Two copies of plans and specifications, including-
- Development/Project name
- Engineer and firm
-Legend `-
North arrow V/
Scale -Z
- Revision number & date
- Mean high water line I a 4
-Dimensioned property/project boundary
- Location map with named streets or NCSR numbers
- Original contours, proposed contours, spot elevations, finished floor elevations v+'
- Details of roads, parking, cul-de-sacs, sidewalks, and curb and gutter -Z
- Wetlands delineated, or a note on plans that none exist ✓
- Existing drainage (including off -site), drainage easements, pipe Sues, runoff calculations
Drainage basins delineated ✓
- Vegetated buffers (where required) v"'
VII. APPLICANTS CERTIFICATION
I, (print or type name of person listed in General Information, item 2) Lawrence S . Spell
certify that the information included on this permit application form is correct, that the project will be
constructed in conformance with the approved plans, that the deed restrictions in accordance with Attachment
A of this form will be recorded with all required permit conditions, and that to the best of my knowledge the
proposed project complies with the requirements of 15A NCAC 2H .1000.
awkU iP Date: 12-01-98
Title: Lawrence-S. Spell Managing Partner
Form SWU-101 April 1998 Page 3 of 4

GWVPAL r-
1. Deed Restriction Language
The following statements must be recorded for all low density projects and for all projects that involve the
subdivision and selling of lots or outparcels:
1. No more than square feet of any lot, including that portion of the right-of-way between the
edge of pavement and the front lot line, shall be covered by impervious structures including
asphalt, gravel, concrete, brick, stone, slate or similar material but not including wood decking or
the surface of swimming pools. finis covenant is intended to insure continued compliance with the
stormwater permit issued by the State of North Carolina. The covenant may not be changed or
deleted without the consent of the State.
2. No one may fill in, pipe, or alter any roadside swale except as necessary to provide a minimum
driveway crossing.
NOTE: If lot sizes vary significantly, the owner/developer must provide an attachment listing each lot
number, size and the allowable built -upon area for each lot.
For commercial projects that have outparcels or future development the following statements must also be
recorded:
3. The connection from the outparcel or future area into the stormwater system must be made into the
forebay such that short-circuiting of the system does not occur.
4. All built -upon area from the outparcel or future development must be directed into the permitted
stormwater control system.
5. Built -upon area in excess of the permitted amount will require a permit modification prior to
construction.
For curb outlet systems, the following statement in addition to items 1 and 2 above must be recorded:
6. No one may pipe, fill in or alter any designated I00 foot long grassed swale used to meet the
requirements of NCAC 2H .1008(g).
2. Supplement Forms
The applicable supplement form(s) listed below must be submitted for each BMP specified for this project.
Form SWU-102
Wet Detention Basin Supplement
Form SWU-103
Infiltration Basin Supplement
Form SWU-104
Low Density Supplement
Form SWU-105
Curb Outlet System Supplement
Fors, SWU-106
Off -Site System Supplement
Form SWU 107
Underground infiltration Trench Supplement
Form SWU-108
Neuse River Basin Nutrient Management Strategy Supplement
3. Permit Application Fees (check made payable to NCDENR and submitted to the appropriate Regional
Office)
Type of Permit
Low Density
High Density
Other
Director's Certification
General Permit
New, Modification, or
Late Renewal
$225
$385
$225
$350
$50
Timely Renewal Without
Modification
n/a
$225
n/a
n/a
n/a
Form SWU-101 April 1998 Page 4 of 4

Permit No.
(to be provided by DW'O�
State of Forth Carolina
Department of Environment and Natural Resources
Division of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
LOW DENSITY SUPPLEMENT
This form may he photocopied; or r ;se = an crigina:
A low density project is one that meets the appropriate criteria for built upon area and transports stormwater
runoff primarily through vegetated conveyances. Low density projects should not have a discrete stormwater
collection system as defined by 15A NCAC 2H .1002(18). Low density requirements and density factors can be
found in 15A NCAC 2H .1005 through .1007.
I. PROJECT INFORMATION (please complete the following information):
Project Name : Krystal Villas
Contact Person: John P. McLean Phone Number: ( 252) .393-2219
Number of Lots: $ Square Feet Per Lot*:�
*If lot sizes are not uniform, attach a table indicating the number of lots, lot sizes and allowable built upon area
for each lot.
II. BUILT UPON AREA
See the Stormwater Management Permit Application Attachment A for specific language that must be recorded
in the deed restrictions for all low density projects.
For uniform lot sizes, complete the following calculation in the space provided below where:
• SA Site Area - the total project area abovc Mean High Water. Wetlands may be excluded when the
development results in high density pockets.
• DF Density Factor - the appropriate percent built upon area divided by 100.
• RA Road Area - the total impervious surface occupied by roadways.
• OA Other Area - the total area of impervious surfaces such as clubhouses, tennis courts, sidewalks, etc.
• No. Lots is the total number of lots in the subdivision.
• BUA/Lot is the computed allowable built upori area for each lot including driveways and impervious
surfaces located between the front lot line and the edge of pavement.
(SA x DF) - RA - OA = BUA
No. Lots Lot
Calculation:
See. ney.+ FIT -
Form SWU-104 Rev 1/August 1998 Page 1 of

III. REQUIRED ITEMS CHECKLIST
Initial in the space provided to indicate that the following requirements have been met and supporting
documentation is provided as necessary. If the applicant has designated an agent in the Stormwater
Management Permit Application Form, the agent may initial below.
' kpplicants Initials
a. A 30 foot vegetative buffer. is provided adjacei}t to surface waters. Projects in the Neuse
lover basin may require additional buffers.
b. Deed restriction language shall be recorded as a restrictive covenant. A copy of the recorded
document shall be provided to DWQ within 30 days of platting and prior to sale of any lots.
C. Built upon area calculations are provided for the overall project and all lots.
d. Project conforms to low density requirements within the ORW AEC (if applicable). [15A
NCAC 2H .1007(2)(b)]
SAMPLE CA LCO L ATICKr-�4o' i (od
Z. '!�MEer TO PARKI ny". =
3 . ?AD FOR DJHFM
A . AKEA fbK hoof
5. S I MWA AIL
70, Y. 30,
6a�'Z®
' Z
2o'� 34 x
1(0 GCS
42400 5F
660 SF
2®o sF
5, 44- o s F
S 00 SF
B 1p 4 to Sf
� 3. A4-D
1.12a�s�lmrrviods->2�.37 6,�
S Z6.4 ea
Form SWU-104 Rev 1/August 1998 Page 2 of 2

/Prepared by and return to:
V Kirkman & Whitford, P.A.
STATE OF NORTH CAROLINA
COUNTY OF CARTERET
DECLARATION OF COVENANTS, RESTRICTIONS AND EASEMENTS
DAISYWOOD TOWNHOMES
THIS DECLARATION, dated for purposes of reference only this 4th day of
December, 1996, is made by DAISYWOOD DEVELOPMENT, LLC, North Carolina
limited liability company, hereinafter called 'Developer."
WITNESSETH:
WHEREAS, Developer is the owner of the real prop�cribed in Article II of
this Declaration and desires to create therein a residential c ity with townhome units
for individual ownership and common facilities for the bakief the said community; and
WHEREAS, Developer desires to provide �-preservation of the values and
amenities in said community and for the rnE --n c Zommon facilities; and, to this end,
desires to subject the real property described i e II, together with such additions as
may hereafter be made thereto, to the cove nts strictions, easements, charges and liens
hereinafter set forth, each and all of whic 1 are for the benefit of said property and
each owner thereof; and i) _
WHEREAS, Developer ha eit desirable for the efficient preservation of the
values and amenities in said commy, tocd ffi
create an agency to which should be delegated
and assigned the powers of maintaining and administering the community properties and
facilities and administering and enforcing the covenants and restrictions and collecting and
disbursing the assessments and charges hereinafter created; and
WHEREAS, Developer has incorporated or will incorporate within one month
hereafter under the laws of the State of North Carolina, as a nonprofit corporation,
Daisywood Townhomes Association, Inc. (the "Association"), for the purpose of exercising
the functions aforesaid;
NOW, THEREFORE, Developer declares that the real property described in Article
II hereof, is and shall be held, transferred, sold, conveyed and occupied subject to the
covenants, restrictions, easements, charges and liens (sometimes referred to as "covenants
and restrictions") hereinafter set forth.
8W ?Cl 2, - PAGE
a �.

2
ARTICLE I
Definitions
The following words when used in this Declaration or any Supplemental Declaration
(unless the context shall prohibit) shall have the following meanings:
1.1 "Association" shall mean and refer to Daisywood Townhomes Association, Inc.
1.2 'Properties" shall mean and refer to the real property described in Article II made
subject to this Declaration.
1.3 "Common Properties" shall mean and refer to those areas of land now or hereafter
shown on any recorded subdivision plat of the Properties or hereafter deeded to the
Association and intended to be devoted to the common use and enjoyment of the Owners
of the Properties, but shall exclude each individual Lot and the Living Unit constructed
thereon.
1.4 "Lot" shall mean and refer to any plot of land shown upon any recorded subdivision
map of the Properties with the exception of Common Properties as heretofore defined.
1.5 "Living Unit" shall mean and refer to any portion of a building situated upon a Lot
designed and intended for use and occupancy as a residence by a single family, whether as
Owners or tenants.
1.6 "Multifamily Structure" shall mean and refer to any building containing two or more
Living Units under one roof except when each such Living Unit is situated upon its own
individual Lot.
1.7 "Owner" shall mean and refer to the record owner, whether one or more persons or
entities, of the fee simple title to any Lot or Living Unit situated upon the Properties but,
notwithstanding any applicable theory of the deed of trust, shall not mean or refer to the
Trustee or cestui que trust unless and until there has been a transfer of title pursuant to
foreclosure or any proceeding in lieu of foreclosure.
1.8 "Member" shall mean and refer to all those Owners who are members of the
Association as provided in Article III, Section 3.1, hereof.
1.9 "Mortgage" shall include the noteholder or cestui que trust secured by a deed of trust.
PAG

3
ARTICLE II
Property Subject To This Declaration;
Additions Thereto
2.1 Properties '. The real property which is, and shall be held, transferred, sold,
conveyed, and occupied subject to this Declaration, which property is described as follows:
In the town of Emerald Isle, Carteret County, North Carolina, and beginning
at an iron pipe at the intersection of the southern right of way line of Reed
Drive with the western right of way line of Janell Lane and from said point
or place of beginning run thence with the western right of way line of Janell
Lane S 05-30-00 E 238.50.feet to an iron pipe; thence S 84-30-00 W 214.73
feet to a point marked by an iron pipe; thence N 05-30-00 W 225.77 feet to
a point in the southern right of way line of Reed Drive marked by an iron
pipe; thence with the southern right of way line of Reed Drive N 81-06-23 E
215.11 feet to the point or place of beginning.
The above described property is also shown on that certain unrecorded plat of the
Daisywood Townhomes, prepared by Pate Phillips and Associates, P.A., dated August
6, 1996. -
2.2 Additions to Existing Property.
a. No Expansion. Developer reserves no right to subject additional
properties to the terms and provisions of this Declaration of Covenants and Restrictions.
b. Me_ er ers. Upon a merger or consolidation of the Association with another
association, its properties, rights and obligations may, by operation of law, be transferred to
another surviving or consolidated association or, alternatively, the properties, rights and
obligations of another association may, by operation of law, be added to the properties,
rights .and obligations of the Association as a surviving corporation pursuant to a merger.
The surviving or consolidated association may administer the covenants and restrictions
established by this Declaration within the Property together with the covenants and
restrictions established upon any other properties as one scheme. No such merger or
consolidation, however, shall effect any revocation, change or addition to the covenants
established by this Declaration within the Property except as hereinafter provided.
ARTICLE III
Membership and Voting Rights in the Association
3.1 Membership. Every person or entity who is a record owner of a fee or undivided fee
interest in any Lot or Living Unit which is subject by covenants of record to assessment by
O
Book
LOPAGmar
-
8 - -

4
the Association shall be a Member of the Association, provided that any such person or
entity who holds such interest merely as a security for the performance of an obligation shall
not be a Member.
3.2 Voting Rights. The Association shall have two classes of voting membership
Class A. Class A Members shall be all those Owners as defined in Section
3.1 with the exception of the Developer. Class A Members shall be entitled to one vote for
each Lot or Living Unit in which they hold the interests required for membership by Section
3.1. When more than one person holds such interest or interests in any Lot or Living Unit
all such persons shall be members, and the vote for such Lot or Living Unit shall be
exercised as they among themselves determine, but in no event shall more than one vote be
cast with respect to any such Lot or Living Unit.
Class B. The Class B Member shall be the Developer. The Class B Member
shall be entitled to three (3) votes for each Lot or Living Unit in which it holds interests
required for membership. The Class B membership shall cease and become converted to
Class A membership at the earlier occurrence of the following events:
(a) when the total votes outstanding in the Class A membership equal the
total votes outstanding in the Class B membership, or
(b) January 1, 2000.
From and after the happening of the earlier to occur of these events, the Class B
Member shall be deemed to be a Class A Member entitled to one vote for each Lot or
Living Unit in which it holds the interests required for membership under Section 3.1.
3.3 Bylaws. The bylaws of the Association are attached as Exhibit A and are
incorporated herein by reference.
ARTICLE IV
Property Rights in the Common Properties
4.1 Members' Easements of Enjoyment. Subject to the provisions of Section 4.3 of
this Article IV, every Member shall have a right and easement of enjoyment in and to the
Common Properties, including rights of access, ingress and egress to and from public streets
and walkways and the right to park a motor vehicle in areas specifically designated for such
purposes; such easement shall be appurtenant to and shall pass with the title to every Lot
or Living Unit. In addition, every Class A Member shall have the right and privilege of
using the parking spaces assigned by the Developer for the benefit of his or her Living Unit,
subject to the right of the Association to re -assign specific parking spaces to a Living Unit
and to limit the number of vehicles a Member may park on Common Properties.
BOOK PAGE
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5
4.2 Title to Common Properties. The Developer must relinquish the legal title to
the Common Properties to the Association prior to the transfer of any Lot or Living Unit
included within the Properties.
4.3 Extent of Members' Easements. The rights and easements of enjoyment created
hereby shall be subject to the following:
(a) the right of the Association, in accordance with its Articles of Incorporation and
By -Laws, to borrow money for the purpose of improving the Common Properties and in aid
thereof to mortgage said properties. In the event of a default upon any such mortgage the
lender's rights thereunder shall be limited to a right, after taking possession of such
properties, to charge admission and. other fees as a condition to continued enjoyment by the
members and, if necessary, to open the enjoyment of such properties to a wider public until
the mortgage debt is satisfied, whereupon the possession of such properties shall be returned
to the Association and all rights of the Members hereunder shall be fully restored;
(b) the right of the Association to take such steps as are reasonably necessary to
protect the above -described properties against foreclosure;
(c) the right of the Association, as provided in its Articles of Incorporation and
By -Laws, to suspend the voting rights of any Member for any period during which any
assessment remains unpaid, and for any period not to exceed thirty (30) days for any
infraction of its published rules and regulations;
(d) the right of the Association to charge reasonable admission and other fees for
the use of the Common Properties;
(e) the legal right of an Owner of property shown on the same plat to include
portions of the Common Properties as may be necessary for said Owner to qualify under
governmental requirements such as setback lines, open space, parking or other aspects which
may be needed for issuance of a building permit to be secured to rebuild a damaged Living
Unit; and
(f) the right of the Association to dedicate or transfer all or any part of the Common
Properties to any public agency, authority, or entity for such purposes and subject to such
conditions as may be agreed to by the Members, provided that no such dedication or
transfer, determination as to the purposes or as to the conditions thereof, shall be effective
unless an instrument signed by Members entitled to cast not less than two-thirds (2/3) of
the votes of each class of membership has been recorded, agreeing to such dedication,
transfer, purposes or condition, and unless written notice of the proposed agreement and
action thereunder is sent to every Member at least thirty (30) days in advance of any action
taken.
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6
ARTICLE V
Covenant for Assessments
5.1 Creation of the Lien and Personal Obligations of Assessments. Except as
hereinafter specifically provided, each Owner of any Lot or Living Unit, by the acceptance
of title thereto, shall be deemed to covenant and agree to pay to the Association
assessments as outlined in this Declaration of Covenants and Restrictions. The assessments
may be classified as:
(a) Regular for (1) operation, maintenance, repair, replacement and improvement
of Common Properties, (2) maintenance and repair of the premises of an
Owner and (3) other purposes, and
(b) Special for (1) capital improvements to Common Properties and (2)
maintenance, repair or improvements of the premises of an Owner.
These assessments are to be fixed, established and collected from time to time as
hereinafter provided.
The Regular and Special assessments, together with such interest thereon and cost
of collection thereof as hereinafter provided, shall be a charge on the land and shall be a
continuing lien upon the property against which each such assessment is made.
Each such assessment, together with such interest thereon and cost of collection
thereof as hereinafter provided, shall also be the personal obligation of the person who was
the Owner of such property at the time when the assessment fell due.
5.2 Purpose of Assessment. The assessments levied by the Association shall be used
exclusively for the purpose of promoting the health, safety and welfare of the residents in
the Properties and in particular for the improvement and maintenance (1) of properties,
services and facilities devoted to this purpose and related to the use and enjoyment of the
Common Properties and (2) of the Lots and Living Units situated upon the Properties.
Without limitation, such uses shall include satisfaction of the Association's obligations
regarding the Common Properties to pay hazard and liability insurance, ad valorem taxes,
the payment to governmental assessments for public and private capital improvements made
to or for the benefit thereof, the repair, replacements and additions thereto, and for the cost
of labor, equipment, materials, management and supervision thereof.
5.3 Basis for Computing Assessments. The Board of Directors shall categorize the
purposes for which it makes assessments so that each purpose will be one which is charged
in the same amount to each Owner of a Lot or Living Unit.
B00
PAGE-E-fLU-

5.4 Septic Facilities. Developer has constructed septic tank systems for disposal of
sewage, which system includes septic tanks, sewage disposal areas (including replacement
areas) and lines and pumps as required to deliver effluent to the septic tanks and then to
disposal areas. The Association shall have the responsibility, and is obligated, to maintain
such septic systems in good and operable condition, and the Association shall give a first
priority to expenditure of its funds for such purposes. Furthermore, the Association agrees
to assess the owners of lots within Daisywood Townhomes as may be necessary from time
to time to maintain such septic collection and disposal systems in good and operable
condition, and, notwithstanding any other provision contained herein or in the By -Laws of
the Association, such special assessment shall be enacted by the Board of Directors of the
Association, and no vote of the Members shall be required.
Developer shall transfer to the Association any and all permits issued by the Carteret
County Health Department, or other regulatory agencies, authorizing the construction and
operation of such systems, and the Association shall abide fully by all terms and conditions
of such permits, and any agreements entered into between Developer and the Carteret
County Health Department relating to such systems. The Association shall further cause
such permits to be renewed as and when required, and shall comply with all requirements
of the Carteret County Health Department, or other regulatory agencies, as may be imposed
from time to time in accordance with the permits, or as required to renew the permits.
The Carteret County Health Department is hereby granted the right of ingress and
egress over and across all Common Properties and all Lots as may be necessary to allow the
inspection of any and all component parts of the sewage collection system, including septic
tanks, distribution systems, pumps and sewage disposal and replacement areas.
Furthermore, the Carteret County Health Department is granted the right to go upon the
Common Properties and the Lots, as required, to take any action it deems necessary relating
to the operation and maintenance of such systems, should the Association fail to do so, and
the Association shall be responsible for all costs incurred by the Carteret County Health
Department because of the failure of the Association to take action as requested or directed
by the Carteret County Health Department.
The Association shall allow no construction or landscaping on any Common
Properties that is inconsistent with the rules and regulations imposed by the Carteret County
Health Department from time to time relating to the use, operation and maintenance of any
component part of the sewage disposal system located on Common Properties.
All costs associated with the permitting, operation, maintenance or repair of the
sewage disposal system and its component parts shall be a part of the dues and assessments
paid by the owners of each and every Lot and Living Unit to the Association. All such
charges shall be collected by the Association as authorized by these Covenants and
Restrictions.
BOOK_J=1�- PAGE--B�

The limitations on increase of assessments as set out in this Article V shall not be
applicable to any increase required to maintain and operate properly the sewage disposal
system, and its appurtenant parts, as may be required by the Carteret County Health
Department from time to time. The expenditure of funds by the Association for the benefit
of the operation and maintenance of the sewage disposal system shall be given first priority
among expenditures of the Association.
5.5 Special Assessments for Capital Improvements. In addition to the annual assessments
authorized by this document, the Association may levy, in an assessment year, a special
assessment applicable to that year only for the purpose of defraying in whole or in part, the
cost of any construction, reconstruction, repair or replacement of a capital improvement
upon the . Common Properties including fixtures and personal property related thereto,
provided that any such assessment shall have the assent not less than seventy five percent
(75%) of the votes of each class of members who are voting in person or proxy at a meeting
duly called for this purpose.
5.6 Change in Basis of Assessments. The Association may change the basis of the
assessments fixed by Section 5.3 hereof prospectively for any such period, provided that any
such change shall have the assent of not less than seventy five percent (75%) of the votes
of each class of Members who are voting in person or by proxy, at a meeting duly called for
this purpose, written notice of which shall be sent to all Members at least thirty (30) days
in advance and shall set forth the purpose of the meeting, provided further that the
limitations of Section 5.3 hereof shall not apply to any change in the basis of the assessments
undertaken as an incident to a merger or consolidation in which the Association is
authorized to participate under its Articles of Incorporation and under Article II, Section
2.2, hereof.
5.7 Quorum for any Action Authorized Under Sections 5.4 5.5 and 5.6. The quorum
required for any action authorized by Sections 5.4, 5.5 and 5.6 of this Article V shall be as
follows:
At the first meeting called, as provided in Sections 5.4, 5.5 and 5.6 of this Article V,
the presence at the meeting of Members, or of proxies, entitled to cast sixty percent (60%)
of all the votes of each class of membership shall constitute a quorum. If the required
quorum is not forthcoming at any meeting, another meeting may be called, subject to the
notice requirements set forth in Sections 5.4, 5.5 and 5.6, and the required quorum at any
such subsequent meeting shall be two-thirds of the required quorum at the preceding
meeting, provided that no such subsequent meeting shall be held more than sixty (60) days
following the preceding meeting.
5.8 Date of Commencement of Assessments: Due Dates. The Regular assessments
provided for herein shall commence as to all Lots on the first day of the month following
the conveyance of the first Lot to an Owner. The first Regular assessment shall be adjusted
according to the number of months remaining in the calendar year. The Board of Directors
800k_�A__)_-- PAGE-.d'-.""_

9
shall fix the amount of the Regular assessment against each Lot at least thirty (30) days in
advance of each Regular assessment period. Written notice of the Regular assessment shall
be sent to every Owner subject thereto. The due dates shall be established by the Board
of Directors. The Association shall, upon demand and for a
reasonable charge, furnish a certificate 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.
5.9 Duties of the Board of Directors. The Board of Directors of the Association shall
fix the date of commencement and the amount of the assessment against each Lot or Living
Unit for each assessment period at least thirty (30) days in advance of such date or period
and shall, at that time, prepare a roster of the properties and assessments applicable thereto
which shall be kept in the office of the Association and shall be open to inspection by any
Owner.
Written notice of the assessment shall thereupon be sent to every Owner subject
thereto; failure to provide a written notice shall indicate that the assessment is unchanged
from the previous assessment.
The Association shall upon demand at any time furnish to any Owner liable for said
assessment a certificate in writing signed by an officer of the Association, setting forth
whether said assessment has been paid. Such certificate shall be conclusive evidence of
payment of any assessment therein stated to have been paid.
5.10 Effect of Nonpayment of Assessment: Personal Obligation of the Owner- Liens:
Remedies of Association. If the assessments are not paid on the date when due- (being the
dates specified in Section 5.8 of this Article V), then such assessment shall become
delinquent and shall, together with interest thereon and at the rate of twelve percent (12%)
per annum, and all costs of collection thereof including the Association's actual reasonable
attorneys fees, thereupon become a continuing lien on the property which shall bind such
property in the hands of the then Owner, his heirs, devisees, personal representatives and
assigns. The personal obligations of the then Owner to pay such assessment, however, shall
remain his personal obligation for the statutory period and shall not pass to his successors
in title unless expressly assumed by them.
If any assessment, or installment thereof, levied against a Lot or Living Unit remains
unpaid for a period of thirty (30) days or longer, it shall constitute a lien against that Lot
or Living Unit when filed of record in the office of the Clerk of Superior Court of Carteret
County in the manner provided therefor by Article 8 of Chapter 44 of the General Statutes
of North Carolina. The Association's lien may be foreclosed in like manner as a mortgage
on real estate under power of sale under Article 2A of Chapter 45 of the General Statutes
BOOK 'I 11

10
of North Carolina with the President of the Association deemed to hold the power of sale.
Fees, charges, late charges, fines, interest and collection costs including attorneys fees
charged pursuant to this Declaration are enforceable as assessments.
If any action is taken by the Association to foreclose a lien on a Lot or Living Unit
because of unpaid assessments, the owner of Lot or Living Unit shall be required to pay a
reasonable rent for the use of the same during the period of redemption from such
foreclosure, and the Association shall be entitled to the appointment of a receiver to collect
the same.
In addition to the foregoing, and without waiving its lien, the Association may sue to
obtain a money judgment for the amount of any delinquent assessment or installment
thereof, together with interest, and the member so sued and liable for such assessment shall
pay all costs of collection, including the Association's actual reasonable attorneys fees.
5.11 Subordination of the Lien to Mortgages. The lien of the assessments provided for
herein shall be subordinate to the lien of any first deed of trust now or hereafter placed
upon the properties subject to assessment; provided, however, that such subordination shall
apply only to the assessments which have become due and payable prior to a sale or transfer
of such property pursuant to a decree of foreclosure, a deed of foreclosure under power of
sale or any other transfer in lieu of foreclosure. Such sale or transfer shall not relieve such
property from liability for any assessments which thereafter become due, nor from the lien
of any such subsequent assessment.
5.12 Exempt Property. The following property subject to this Declaration shall be
exempted from the assessments, charges and liens created herein: (a) all properties to the
extent of any easement or other interest therein dedicated and accepted by the local public
authority and devoted to public use; (b) all Common Properties as defined in Article I,
hereof.
ARTICLE VI
Rights of First Mortgagees
6.1 Inspection of Books and Records. First mortgagees shall have the right, upon request
and during normal business hours, to examine the books and records of the Association.
6.2 Notice of Default. Upon its written request, the holder of a first mortgage upon a
Lot or Living Unit shall be entitled to written notification of any default by the Owner of
said Lot or Living Unit in the performance of his obligations pursuant to these Covenants
or the By -Laws of the Association, if such default is not cured within thirty (30) days.

11
6.3 Payments by First Mortgagees. One or more first mortgagees of Lots or Living
Units may, jointly or singly, in respect to the Common Properties, pay taxes or other charges
which are in default and have or may become a charge against same, pay overdue hazard
insurance premiums or secure new hazard insurance coverage after policy lapse. The
parties making such expenditures shall be entitled to immediate reimbursement from the
Association.
6.4 Prohibitions. Without having first received written approval from at least seventy-five
percent (75%) of the first mortgagees (based upon one vote for each mortgagee) of the Lots
or Living Units, the Association may not:
(a) by act or omission seek to abandon, partition, subdivide, encumber, sell or
transfer the real property which is owned, directly or indirectly, by the Association; provided,
however, that the granting of easements for public utilities or for other public purposes
consistent with the intended use of such property by the Association shall not be deemed
a transfer within the meaning of this clause;
(b) change the method of determining obligations, assessments, dues or other
charges which may be levied against the Owner of a Lot or Living Unit;
(c) by act or omission change, waive or abandon any scheme of regulations, or
enforcement thereof, pertaining to the architectural design or the exterior appearance of
Living Units, the exterior maintenance of Living Units, the maintenance of party walls or
common fences and driveways, or the upkeep of lawns and plantings in the Properties;
(d) fail to maintain hazard insurance on insurable improvements upon the. Common
Property in an amount equal to one hundred percent (100%) of the current insurable
replacement cost; or
(e) use hazard insurance proceeds from losses to any Common Properties for other
than the repair, replacement or reconstruction of such improvements.
ARTICLE VI
Party Walls
7.1 General Rules of Law to Apply. Each wall which is built as a part of the original
construction of the Living Units upon the Properties and placed on -the dividing line
between the Lots shall constitute a party wall, and to the extent not inconsistent with the
provisions of this Article, the general rules of law regarding party walls and of liability for
property damage due to negligent or willful acts or omissions shall apply thereto.
600K - q qel EL qNSD

12
7.2 Sharingof Repair and Maintenance. The cost of reasonable repair and
maintenance of a party wall shall be shared by the Owners who make use of the wall in
proportion to such use.
7.3 Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged by
fire or other casualty, any Owner who has used the wall must restore it as a party wall
unless the other Owner agrees to the contrary in advance, and the other Owners thereafter
making use of the wall shall contribute to the cost of restoration thereof in proportion to
such use without prejudice, however, to the right of any such Owners to call for a larger
contribution from the others under any rule of law regarding liability for negligent or willful
acts or omissions.
7.4 Weatherproofing. Notwithstanding any other provision of this -Article, an Owner
who by his negligent or willful act causes the party wall to be exposed to the elements shall
bear the whole cost of furnishing the necessary protection against such elements.
7.5 Right to Contribution Runs With Land. The right of any Owner to contribution from
any other Owner under this Article shall be appurtenant to the land and shall pass to such
Owner's successors in title.
7.6 Arbitration. In the event of any dispute arising concerning a party wall, or under the
provisions of this Article, each party shall choose one arbitrator, and such arbitrators shall
choose one additional arbitrator, and the decision of a majority of all the arbitrators shall
be final and conclusive of the question involved. Such arbitration shall be conducted
pursuant to the North Carolina Uniform Arbitration Act.
ARTICLE VIII
Aesthetics Committee
8.1 Review by Committee. No building, fence, wall or other structure nor any
planting or landscaping change (including removal of any tree) shall be commenced, erected
or maintained upon the Properties by other than the Developer, and the Association after
the Developer has conveyed all Lots to third parties, nor shall any exterior addition (or
interior decoration visible in the Common Properties) to or change or alteration therein be
made until the plans and specifications showing the nature, kind, shape, height, 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 Board of Directors of the Association, or by an aesthetics committee
compose of three (3) or more representatives appointed by the Board. In the event said
Board, or its designated committee, fails to approve or disapprove such design and location
within thirty (30) days after said plans and specifications have been submitted to it, approval
BOO PAGE-�� i

13
will not be required and this Article will be deemed to have been complied with fully. The
Association shall have the right to bring an action to enjoin any activity taken in violation
of this Article.
ARTICLE IX
Exterior Maintenance
9.1 Exterior Maintenance. In addition to maintenance upon the Common Properties,
the Association shall provide exterior maintenance upon each Lot and Living Unit which
is subject to assessment under Article V hereof as follows: paint, repair, replace and care
for roofs, gutters, down -spouts, exterior building surfaces (other than windows, screens and
glass doors), trees, shrubs, grass, walks and other exterior improvements.
9.2 Special Assessments for Capital Improvements. In addition to the annual assessments
authorized by this document, the Association may levy, in an assessment year, a special
assessment applicable to that year only for the purpose of defraying, in whole or in part, the
cost of any construction, reconstruction, repair or replacement for exterior maintenance of
any Lot or Living Unit, provided that any such assessment shall have the assent of seventy
five percent (75%) of the votes of each class of Members who are voting .in person or by
proxy at a meeting duly called for this purpose.
9.3 Access at Reasonable Hours. For the purpose solely of performing the exterior
maintenance required by this Article, the Association, through its duly authorized agents or
employees, shall have the right, after reasonable notice to the Owner, to enter upon any Lot
or exterior of any Living Unit at reasonable hours on any day.
ARTICLE X
Insurance
10.1 CasualZ, Insurance.
The Association shall maintain casualty insurance upon the Properties, including the
Living Units, Multifamily Structures, and the Common Properties, in the name of, and the
proceeds thereof shall be payable to, the Association, as Trustee for all Unit Owners and
Security Holders as their interest may appear. Such insurance shall be in an amount equal
to not less than the full insurable value of the Properties as originally constructed or
uniformly modified by act of the Association, in their original condition on a replacement
cost basis and shall insure against such risks and contain such provisions as the Board from
time to time shall determine. Betterments and improvements by an Owner within his Living
Unit are not considered insured under the Association's insurance. Deductibles shall be as
determined by the Board of Directors of the Association, and shall be an individual expense
of the Owner of a damaged or destroyed Living Unit.
BOOK...__ PAGE��

14
10.2 Public Liability Insurance.
The Association shall maintain public liability insurance for the benefit of the
Owners, Occupants and holders of a vendor's interest in a contract for deed on a Unit, the
Association, the Board, the manager, if any, the Declarant, and their respective officers,
directors, agents and employees, in such amounts and with such coverage as shall be
determined by the Board; provided that the public liability insurance shall be for at least
$500,000.00 per occurrence for death, bodily injury and property damage. Limits on liability
may be altered from time to time by the Board. To the extent practical said insurance shall
contain a severability-of-interest endorsement precluding the insurer from denying liability
because of negligent acts of any insured; insure all of such benefited parties against such
liability arising out of or in connection with the use, ownership, or maintenance of the
Common Properties, and the streets, sidewalks and public spaces adjoining the project; and
insure the Association, the Board, the manager, if any, and their respective officers,
directors, agents and employees against such liability arising out of or in connection with the
use or maintenance of the Living Units.
10.3 Other Insurance.
The Association may procure such other insurance as it may from time to time deem
appropriate to protect the Association or the Owners.
10.4 Insurance Trustee.
The Board may engage, and pay as a Common Expense, any appropriate person to
act as an insurance trustee to receive and disburse insurance proceeds upon such terms as
the Board shall determine, consistent with the provisions of this Declaration. Otherwise,
the Board shall be deemed the insurance trustee.
10.5 Individual Policy For Unit Owners.
Each Unit Owner may obtain insurance, at his own expense, affording personal
property, betterments and improvements, additional living expense, townhouse assessment,
personal liability, and any other coverage obtainable, to the extent and in the amount such
Unit Owner deems necessary to protect his own interest; provided that any such insurance
shall provide that it is without contribution as against the insurance purchased by the
Association. If a casualty loss is sustained and there is a reduction in the amount of the
proceeds that would otherwise be payable on the insurance purchased by the Association
due to the proration of the insurance purchased by an Owner under this Section 10.5, such
Owner shall be liable to the Association to the extent of such reduction and shall pay the
amount of such reduction to the Association upon demand, and assigns the proceeds of his
insurance, to the extent of such reduction, to the Association.

15
ARTICLE XI
Refuse Collection
11.1 Refuse Collection. Individual pickup refuse collection is not provided for each Lot
and Living Unit which is subject to assessment under Article V hereof by either the Town
of Emerald Isle or the Association. The Association shall provide refuse collection for the
Properties by furnishing bulk refuse collection points at the appropriate places located in
the common areas to be serviced by the Town of Emerald Isle or by an independent
contractor.
11.2 Assessment of Costs. . The cost of such refuse collection may be assessed against
the Lot or Living Unit for which such collection is provided and shall be added to and
become part of the annual assessment or charge to which such Lot or Living Unit is subject
under Article V hereof and, as part of such annual assessment or charge, it shall be a lien
and obligation of the Owner and shall become due and payable in all respects as provided
in Article V hereof.
ARTICLE XII
General Provisions
12.1 Zoning. No Lot or Living Unit shall be used for any purpose which is not
permissible under applicable governmental residential zoning regulations.
12.2 Prohibited Activities. No noxious or offensive trade or activity shall be carried
on upon or in any Lot or Living Unit, nor shall anything be done thereon which may be or
become an annoyance or nuisance to the neighborhood.
12.3 Mobile Homes. etc. No trailer, mobile home, basement, tent, shack or garage shall
at any time be used for human habitation temporarily or permanently, nor shall any
structure of a temporary character be used for human habitation.
12.4 Rules. The Board of Directors shall have the authority to adopt rules for the
use of the Common Properties and shall furnish a written copy of said rules to the Owners.
Any violation of such rules shall be punishable by fine and/or suspension of the voting rights
of the violating Owners. The Board of Directors shall also have the power to adopt rules
and regulations which prohibit or limit the types of animals or household pets which may
be kept in or about the Lots or Living Units and which govern their allowance upon the
Common Properties.
12.5 Duration. The covenants, restrictions, an easements of this Declaration shall run
with and bind the land, and shall inure to the benefit of and be enforceable by the
Association, or the Owner of any land subject to this Declaration, their respective legal
B00 `7 PAS

16
representatives, heirs, successors and assigns, for a term of twenty (20) years from the date
this Declaration is recorded, after which time said covenants shall be automatically extended
for successive periods of ten (10) years. Provided, however, that at all times during the
existence of these covenants and restrictions those areas set forth and set aside as Common
Properties shall be retained for those purposes.
12.6 Amendment. These covenants and restrictions may be amended during the first
twenty (20) year period by the vote of not less than ninety percent (90%) of each class of
Members cast in person or by proxy at a meeting duly called for this purpose, written notice
of which including the subject matter of the proposed amendment, shall be sent to all
Members at least thirty (30) days in advance. Thereafter, these covenants and restrictions
may be amended by the vote of at least seventy-five percent (75%) of each class of members
cast in person or by proxy at a meeting duly called for this purpose, written notice of which
including the subject matter of the proposed amendment, shall be sent to all Members at
least thirty (30) days in advance. Matters mentioned elsewhere in these covenants requiring
the approval of first mortgages or requiring a greater percentage of Members for approval
shall be so governed. Any such amendment shall become operative and binding upon all
Members and their properties when set forth in an amended declaration of Covenants and
restrictions and recorded in the office of the Register of Deeds of Carteret County, North
Carolina.
12.7 Notices. Any notice required to be sent to any Member or Owner under the
provisions of this Declaration shall be deemed to have been properly sent when mailed, or
otherwise delivered, to the last known address of the person who appears as a Member or
Owner on the records of the Association at the time of such mailing.
12.8 Enforcement. Enforcement of these covenants and restrictions shall be by any
proceeding at law or in equity against any person or persons violating or attempting to
violate any covenant or restriction, either to restrain violation or to recover damages, and
against the land to enforce any lien created by these covenants; and failure by the
Association or any Owner to enforce any covenant or restriction herein contained shall in
no event be deemed a waiver of the right to do so thereafter.
12.9 Severability. Invalidation of any one of these covenants or restrictions by judgment
or court order shall in no way affect any other provisions, which provisions shall remain in
full force and effect.
12.10 Tri-Party Agreement. A Tri-Party Agreement among Daisywood Development,
LLC, the Association and the Carteret County Health Department has been entered into,
and placed of record in Carteret County, North Carolina. Such Tri-Party Agreement is
recorded in Book 1J*Z , Page $51 , Carteret County Registry. The terms, conditions and
obligations contained therein are hereby incorporated in this Declaration for all purposes.
Specifically, and not by way of limitation, the Association agrees to require hook-up by all
of its members to a public sewage facility should such be offered to Daisywood Townhomes.
sooxPacF �>

17
Furthermore, the easements, and restrictions thereon, included within the Tri-Party
Agreement are herein incorporated by reference. Notwithstanding any other provision of
this Declaration, no provision of this Declaration having a material impact upon the sewage
collection and disposal system for Daisywood Townhomes, or the ability to collect and
expend funds in relation thereto, shall be changed or amended without the consent of the
Carteret County Health Department.
IN WITNESS WHEREOF, the Developer has caused this instrument to be duly
executed as of the day and year first above written.
DAISYWOOD DEVELOPMENT, LLC
By (SEAL)
Lawrence S. el , anager/Member
By: (SEAL)
L.B. Page, General Partner of Shelly Point
Associates, a North Carolina limited
partnership
BOOK_J�- PAG