WQ0040371_Master Declaration of Covenants_20210826

Book 8060 Page 550
BK: R 8060
PG:550-573
2018032246
RECORDED:
NC FEE $6200
06-21-2018
GUILFORD COUNTY, NC
12:42:19 PM
JEFF L. THIGPEN
BY DEBORAH CITTY
REGISTER OF DEEDS
DEPUTY -HP
Mail to: Keystone Group, Inc.
3708 Alliance Drive
Greensboro, NC 27407
MASTER DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS
�CJ FOR NORTHBOROUGH DEVELOPMENT
THIS DECLARATION is made on the date hereinafter set forth by KEYSTONE GROUP, INC. (hereinafter
referred to as "Declarant").
WHEREAS, Declarant is the owner of certain property (hereafter "Northborough Development") in the
Counties of Guilford, State of North Carolina, which is more particularly described as follows:
BEING ALL of the property surveyed and shown on that certain plat entitled "Final P1atNorthborough
Phase 1" as recorded in Plat Book i 4 7 , Page in the Office of the Register ofDeeds
of Guilford County, North Carolina.
WHEREAS, it is the intent of Declarant hereby to cause the above -described property to be subjected to this
Master Declaration of Covenants, Conditions, and Restrictions.
NOW, THEREFORE, Declarant hereby declares that all of the property described above shall be held, sold and
conveyed subject to the following easements, restrictions, covenants, and conditions which are for the purpose of
protecting the value and desirability of, and which shall run with, such real property and be binding on all parties having
any right, title or interest in the described properties or any part thereof, their heirs, successors and assigns, and shall
inure to the benefit of each owner thereof. It is the intent of Declarant that the provisions of this Master Declaration in all
respects conform to and comply with the requirements set forth in the North Carolina Planned Community Act. To the
extent any provision contained herein does not conform or comply with the North Carolina Planned Community Act, the
provisions of the North Carolina Planned Community Act shall control.
ARTICLE I
DEFINITIONS
SECTION 1. "Master Association" shall mean and refer to the Northborough Master Homeowners Association,
Inc., its successors and assigns.
SECTION 2. "Amenity Area" or "Common Area" shall mean and refer to all real property (including the
improvements thereto) owned or leased by the Master Association for the common use and enjoyment of the Owners.
"Lots" are not part of the Amenity Area.

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Declarant reserves the right, in its sole discretion, to convey from time to time and without the consent of the
Master Association, additional property to the Master Association which property may include all or any portion of the
Properties, including any additional land annexed by Declarant pursuant to Article X, Section 4 hereof and the Master
Association shall accept any such conveyance of additional property and thereafter such additional property shall be
treated as additional Common Elements for purposes of this Declaration.
SECTION 3. "Declarant" shall mean and refer to Keystone Group, Inc., as well as its successors and assigns,
pursuant to an express assignment or conveyance of any special Declarant rights hereunder to such successor or assigns,
all of which rights, including Declarants voting rights, are assignable and may be apportioned on a lot -by -lot basis.
SECTION 4. "Declarant's Development Period" shall mean and refer to the period oftime commencing on the
date this Declaration is recorded in the Office of the Register of Deeds, Guilford County, North Carolina, and continuing
for so long as Declarant shall have the right to annex any portion of the Additional Property pursuant to the provisions of
Article X, Section 4 hereof or Declarant or any affiliate of Declarant shall own any portion of the Properties.
SECTION 5. "FHA" shall mean and refer to the Federal Housing Administration ofthe Department of Housing
and Urban Development and "VA" shall mean and refer to the Department of Veteran Affairs.
SECTION 6. "Lot" shall mean and refer to any separately numbered plot of land shown upon any now or
subsequently recorded subdivision map of the Properties with the exception of Common Elements and dedicated streets
and shall include any dwelling and other improvements constructed thereon. Declarant hereby reserves the right to
reconfigure, from time to time and without the consent of the Owners or the Members of the Master Association, the
boundaries of any Lots owned by Declarant and to thereby create additional Lots, eliminate existing Lots or create
additional Common Elements to be conveyed to the Master Association by Declarant; provided, however, in no event
shall the Properties contain a greater number of Lots than the number from time to time permitted by, nor shall any Lot
within the Properties contain fewer square feet than the minimum number of square feet from time to time required by the
appropriate local governmental authority. If Declarant elects to exercise its right to revise the boundaries of one or more
Lots owned by Declarant, Declarant shall record a revised plat of the affected Lot or Lots. Upon the recording by
Declarant of such a revised plat, each lot shown on the previously recorded plat or plats, the boundaries of which are
revised by the revised plat, shall cease to be a "Lot" as defined in this Declaration and each newly configured lot shown
on the revised plat shall be a "Lot" as defined in this Declaration.
SECTION 7. "Master Plan" shall mean and refer to the plan(s) for the Properties and the Additional Property
now or hereafter approved by City of High Point, or other appropriate governmental authority, as such plan(s) may be
from time to time amended and approved.
SECTION 8. "Member" shall mean and refer to every person or entity who holds membership with voting
rights in the Master Association.
SECTION 9. "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 part of the Properties, as hereinafter defined, including contract sellers, but excluding
those having such interest merely as security for the performance of an obligation.
SECTION 10. "Period of Declarant Control" shall mean and refer to the period oftime commencing on the date
this Declaration is recorded in the Office of the Register of Deeds, Guilford County, North Carolina, and continuing until
the earlier of. (i) twenty (20) years from the date this Declaration is recorded in the Office of the Register of Deeds,
Guilford County, North Carolina; or (ii) such time as the last Lot on any lot shown on the Master Plan is sold by
Declarant; provided, however, if, after the last Lot on any lot shown on the Master Plan is sold, the Master Plan is
amended to add additional Lots, such period of time shall be reinstated and shall continue until such time as the last Lot
on any lot shown on the Master Plan is sold by Declarant.
SECTION 11. "Planned Community Act" shall mean and refer to the provisions of Chapter 47F of the North
Carolina General Statutes.

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SECTION 12. "Properties" shall mean and refer to that certain real property hereinabove described, and such
additions thereto as may hereafter be brought within the jurisdiction of the Master Association.
SECTION 13. "Townes Association" shall mean and refer to the Northborough Townes Homeowners
Association, Inc., its successors and assigns, which shall be a Second -Tier Association, as that term is defined herein.
SECTION 14. Intentionally omitted.
SECTION 15. Intentionally omitted.
SECTION 16. "Second -Tier Association" shall mean and refer to any property owners associations, including,
without limitation, any condominium association, formed pursuant to a Second Tier Declaration for the purpose of
providing for the administration of more than one, but less than all, the Lots and any related property conveyed to the
Second Tier Association to be used and maintained forthe benefit ofthe Owners ofthe Lots subject to the jurisdiction of
such Second Tier Association.
SECTION 17 "Second -Tier Declaration" shall mean and refer to any covenants of record in the
Guilford County Registry, other than this Declaration imposed upon and further restricting any portion of the
Properties and/or which provide for the formation of an owner's association imposed subsequent to the imposition of
this Declaration.
SECTION 18 "Second -Tier Properties," with respect to each Second -Tier Association, shall mean and
refer to all portions of the Properties subject to the Second -Tier Declaration pursuant to which such association was
formed.
SECTION 19 "Additional Property" shall mean and refer to the property described in Exhibit "A",
attached hereto and incorporated herein by this reference, together with any other property located adjacent to the
Properties. For the purpose of determining whether property is adjacent to the Properties, the rights of way of public
road and utilities, as well as rivers and streams, shall be deemed not to separate otherwise adjacent property.
SECTION 20 "Appropriate Local Governmental Authority" shall mean and refer to the City of High
Point or other appropriate local governmental authority having jurisdiction over the Properties.
ARTICLE II
PROPERTY RIGHTS AND SECOND -TIER DECLARATIONS
SECTION 1. MAINTENANCE OF WATERSHED IMPROVEMENTS. The Association shall
maintain any lake and any retention or detention ponds, rip rap and other drainage or erosion control devices located
on the Common Elements now or hereafter conveyed to the Association by Declarant that are required to be
maintained by the governmental office(s). In the event the Association is dissolved or otherwise defaults on its
obligation to maintain any such drainage or erosion control device, Declarant, for each Lot owned within the
Properties, hereby covenants, and each Owner for any Lot, by acceptance of a deed therefore, whether or not it shall
be so expressed in such deed, is deemed to covenant and agree to pay the pro rata share of the cost of the
maintenance of such pond, drainage device or erosion control device.
SECTION 2. RULES AND REGULATIONS. The Executive Board of the Association may establish
reasonable rules and regulations concerning the use of the Common Elements and improvements located thereon.
Possible improvements, if any, may include but not limited to parking areas, streets, roadways, walking trails,
recreational facilities, tennis courts, putting greens, pools, pool houses, club houses, and others. Such rules and
regulations may prohibit or restrict the use of the Common Elements, improvements, and any lake, pond, or stream
which is a part of or adjacent to the Common Elements for boating, fishing and swimming and/or may provide for
access to any such lake or pond only through designated portions of the Common Elements. The Association may
impose reasonable monetary fines and other sanctions for the violation of established rules and regulations and for
the violation of any of the covenants and conditions contained in this Declaration, which monetary fines, and
sanctions shall be assessed and collected pursuant to the provisions of Articles IV and X hereof. Copies of such

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rules and regulations, if established, and the amendments thereto shall be available for review upon reasonable notice
to the Executive Board. All such rules and regulations shall be binding upon the owners, their families, tenants,
guests, invitees and agents until and unless such regulation, rule or requirement shall be specifically overruled,
cancelled, or modified by the Executive Board of the Association or by the Members of the Association entitled to
cast at least two-thirds (2/3) of the votes of the Association, who are voting, in person or by proxy, at a meeting duly
called for such purpose; provided, however, during any Period of Declarant Control, Declarant must also consent to
such action. The Executive Board may also establish reasonable rules and regulations regarding the use of Lots.
The Rules and Regulations implemented for the Lots and the Common Area within the Properties may further restrict
the use of the Lots and Common Area.
SECTION 3. OWNERS EASEMENTS OF ENJOYMENT. Every Owner shall have a right and easement
of enjoyment in and to the Common Elements which shall be appurtenant to and shall pass with the title to every Lot,
subject to the following provisions:
(a) the right of the Association to permit the use of and to charge reasonable admission and other fees
for the use of any recreational facility situated upon the Common Elements;
(b) the right of the Association to suspend the voting rights; and right and easement of enjoyment in
and to the Common Elements by an Owner(s) for any Lot for any period during which any assessment against such
Lot remains unpaid and for any period during which such Lot or any Owner or occupant thereof is in violation of the
terms of this Declaration or the published rules and regulations of the Association and for a period not to exceed
sixty (60) days after any such violation;
(c) the right of the Association to dedicate or transfer all or any part of the Common Elements (with
the exception of any water quality or erosion control device including, without limitation, any permanent wet
detention/retention pond) to any public agency, authority or utility for such purposes and subject to such conditions
as may be agreed to by the Members. No such dedication or transfer shall be effective unless an instrument signed
by the Members entitled to cast at least two-thirds (2/3) of all the votes of each class, agreeing to such dedication or
transfer, has been recorded; provided, however, during Declarant's Development Period, Declarant must also
consent to such action;
(d) the right of the Association to impose rules and regulations for the use and enjoyment of the
Common Elements and improvements thereon, which regulations may further restrict the use of the Common
Elements, and specifically including the right to make permanent and temporary assignments of parking spaces and
to establish rules and regulations concerning parking and vehicular traffic flow on and along the streets and
roadways, whether public or private, within or abutting the Properties which rules and regulations may restrict or
prohibit on -street parking and may be enforced by towing at the expense of the vehicle's owner, by reasonable fine
levied against the vehicle's owner and/or any Owner of a Lot to which such violation reasonably may be attributed,
or by any other reasonable method of enforcement established by the Association's Executive Board;
(e) the right of the Association, in accordance with its Articles and Bylaws, to borrow money for the
purpose of improving the Common Elements and facilities thereon;
M subject to the prior written consent of FHA or VA, in the event FHA or VA insured loans have
been obtained secured by Lots, the right of the Association to convey to Declarant portions of the Common Elements
for the purpose of correcting erroneous conveyances of Common Elements or eliminating unintentional
encroachments of dwellings or other improvements onto portions of the Common Elements or for the purpose of
enhancing the utility of the Common Elements to be retained by the Association; provided, however, no such
conveyance shall interfere with or obstruct utility service to, or ingress, egress and regress to or from, the Lots or any
remaining Common Elements or cause any Lot or any remaining Common Elements to fail to comply with
applicable laws, regulations or ordinances;
(g) the right of the Association to dedicate or transfer non-exclusive easements on, over and upon all
or any part of the Common Elements for such purposes and subject to such conditions as may be agreed to by the
Association's Executive Board; provided, however, no such dedication or transfer shall be effective unless an

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instrument executed on behalf of the Association by its duly authorized officers, agreeing to such dedication or
transfer, has been recorded; and
(h) the easements herein reserved by Declarant or created in favor of the Association, including,
without limitation the easements set forth in Article VIII hereof;
SECTION 4. DELEGATION OF USE. Any Owner may delegate, in accordance with the Bylaws, his or
her rights of enjoyment of the Common Elements and facilities to the Members of his or her family, his or her
tenants, or contract purchasers who reside on the Lot of such Owner.
SECTION 5. LEASES OF LOTS. Any Lease Agreement between an Owner and a lessee for the lease of
such Owner's Lot shall provide that the terms of the Lease shall be subject in all respects to the provisions of this
Declaration of Covenants, Conditions, and Restrictions, Rules and Regulations, the Articles of Incorporation and
Bylaws of the Association; and that any failure by the lessee to comply with the terms of such document shall be a
default under the terms of the lease. All leases of Lots shall be in writing and shall have a term of not less than six
(six) months. Notwithstanding the foregoing, Owners may lease their Lots for a term of less than six (6) months on
two occasions within any calendar year provided such Owner's Lot is owner -occupied for the remainder of the
calendar year. Other than the foregoing there is no restriction on the right of any Owner to lease his or her Lot.
SECTION 6. REVIEW AND APPROVAL OF SECOND -TIER DECLARATIONS. No Second -Tier
Declaration and no amendments or supplements thereto shall be recorded or otherwise imposed on any portion of the
Properties except with the prior written consent and approval of Declarant, during Declarant's Development Period,
in Declarant's sole discretion, and thereafter, the Master Association, which consent and approval, when given, shall
be affixed to, made a part of and recorded with the, Second -Tier Declaration, and which consent and approval shall
not be unreasonably withheld, conditioned or delayed.
SECTION 7. PURPOSES OF SECOND -TIER DECLARATIONS. Whenever Declarant, during
Declarant's Development Period, in Declarant's sole discretion, and, thereafter, the Master Association, acting
through its Board, determines that the purposes of this Master Declaration shall be more efficiently and effectively
served by the implementation of an additional declaration governing certain portions of the Properties, Declarant or
the Master Association, as the case may be, may prepare a Second -Tier Declaration for the review and consent
required by Section 1 of this Article, and, if approved, an additional Second -Tier Association, shall be created and
governed by the terms of such Second -Tier Declaration.
SECTION 8. SUPREMACY OF DECLARATION. Notwithstanding anything to the contrary contained
herein or in any Second -Tier Declaration, where the terms of any Second -Tier Declaration shall conflict with the
terms of this Declaration, the terms of this Declaration shall control; provided, however, this Declaration and any
Second -Tier Declaration shall be interpreted and construed to avoid any conflict where possible.
ARTICLE III
MEMBERSHIP AND VOTING RIGHTS
SECTION 1. MEMBERSHIP. Every person or entity who or which is a record owner of a fee or undivided fee
interest in any Lot which is subject by covenants of record to assessment by the Master Association, including Declarant
and any affiliated entity, shall be a voting Member of the Master Association. The foregoing is not intended to include
persons or entities who hold an interest in a Lot merely as security for the performance of an obligation. Such
Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment
by the Master Association. On all matters which the Membership shall be entitled to vote, the Member(s) owning each
Lot shall be entitled to one (1) vote, except as provided in Article III, Section 2. When more than one person holds an
interest in any Lot, all such persons shall be Members. The vote for such Lot shall be exercised as they among
themselves determine, but in no event shall more than one vote be cast with respect to any Lot.
SECTION 2. CLASSES OF MEMBERSHIP. The Master Association shall have two classes of voting
membership:

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Class A: The Class A Members shall be every person or entity who or which is a record owner of a fee or
undivided fee interest in any Lot which is subject by covenants of record to assessment by the Master Association, except
for Declarant or any affiliated entity, during any Period of Declarant Control. Class A Members shall be entitled to one
(1) vote for each Lot owned.
Class B: Declarant shall be the Class B Member and Declarant shall be entitled to five (5) votes for each Lot
shown on the Master Plan as developed or to be developed as a part of Northborough Development which has not been
conveyed by Declarant or any affiliated entity to a Class A Member. 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 total votes outstanding in the Class A membership equal or exceed the total votes outstanding
in the Class B membership; however, the Class B membership shall be reinstated ifthereafter, and before the time state in
subparagraph (ii) below, the Master Plan is amended to add additional Lots developed or to be developed as a part of
Northborough Development sufficient to give the Class B membership a total number of votes (with the Class B
membership entitled to five (5) votes for each Lot shown on the Master Plan as developed or to be developed as a part of
Northborough Development which has not been conveyed by Declarant or an affiliate of Declarant to a Class A Member)
greater than those of the Class A membership; or,
(ii) twenty (20) years from the date this Declaration is recorded in the Office of the Register of Deeds,
Guilford County, North Carolina.
SECTION 3. DECLARANT RIGHT TO REPRESENTATION ON THE EXECUTIVE BOARD OF THE
MASTER ASSOCIATION. During any Period of Declarant Control, Declarant shall have the right to designate and
select all of the Members of each Executive Board of the Master Association. Whenever Declarant shall be entitled to
designate and select any person or persons to serve on any Executive Board of the Master Association, the manner in
which such person or persons shall be designated shall be as provided in the Articles of Incorporation and/or Bylaws of
the Master Association, and Declarant shall have the right to remove any person or persons selected by it to act and serve
on said Executive Board and to replace such person or persons with another person or other persons to act and serve in
the place of any member or members of the Executive Board so removed for the remainder of the unexpired term of any
member or members of the Executive Board so removed. Any Executive Board member designated and selected by
Declarant need not be a member of the Master Association. However, upon expiration of Declarant's Development
Period, all Executive Board members must be Members ofthe Master Association. Except as otherwise provided in the
Bylaws with respect to the filling of vacancies, any members of the Executive Board which Declarant is not entitled to
designate or select shall be elected by the Members of the Master Association.
ARTICLE IV
COVENANT FOR MAINTENANCE AND ASSESSMENTS
SECTION 1. CREATION OF THE LIEN AND PERSONAL OBLIGATION OF ASSESSMENTS. The
Declarant, for each Lot owned within the Properties, hereby covenants, and each Owner for any Lot, by acceptance of a
deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay: (a) to the
Master Association: (i) annual and other assessments and charges provided for herein, together with interest and late fees,
costs and reasonable attorneys fees and (ii) special assessments for capital improvements, such assessments to be
established and collected as hereinafter provided; and (b) to the appropriate governmental taxing authority: (i) a pro rats
share of ad valorem taxes levied against the Common Elements and (ii) a pro rata share of assessments for public
improvements to or for the benefit of the Common Elements, if the Master Association shall default in the payment of
either or both for a period of six (6) months. All assessments and charges provided for herein, together with interest, any
late fees, costs and reasonable attorneys fees, shall be a charge on the land and shall constitute a continuing lien upon the
property against which each such assessment is made when a claim of lien is filed of record in the Office of the Clerk of
Superior Court, Guilford County and/or Guilford County, North Carolina. Each such assessment and charge, together
with interest, costs and reasonable attorneys' fees, shall also be the personal obligation of the Owner of such property at
the time when the assessment fell due. The personal obligation for the delinquent assessments shall not pass to his
successors in title unless expressly assumed by them.
SECTION 2. PURPOSE OF ASSESSMENTS.

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(a) The assessments levied by the Master Association shall be used exclusively to promote the recreation,
health, safety and welfare of the residents of the Properties and in particular to defray the costs incurred by the Master
Association for the acquisition, improvement and maintenance of properties, services and facilities devoted to this
purpose and related to the use and enjoyment of the Common Elements pursuant to the Master Association's obligations
hereunder, including but not limited to, the payment of assessments for public and private improvements made to or for
the benefit of the Common Elements; the costs of repairs, replacements and additions, the cost of labor, equipment,
materials, management and supervision, the payment of taxes assessed against the Common Elements; the maintenance of
water and sewer mains in and upon the Common Elements; the maintenance of open spaces and streets which have not
been accepted for dedication by a public authority, roadway medians and islands (including medians and islands located
in dedicated rights -of -way within the Properties), drives and parking areas within the Common Elements; the
procurements and maintenance of liability insurance in accordance with the Bylaws; the maintenance of dams and ponds,
including retention or detention ponds, or other bodies of water, if any, located within the Common Elements; the
maintenance of entrance ways, landscaping and lighting of Common Elements, road medians and islands and entrance
ways; the cost of operating, maintaining and repairing any street lights erected by the Master Association or the Declarant
in the rights -of -way of streets (whether public or private) or in any other easement provided therefor within the
Properties; the payment of charges for garbage collection and municipal water and sewer services furnished to the
Common Elements; the employment of attorneys and other agents to represent the Master Association when necessary;
the provision of adequate reserves for the replacement of capital improvements including, without limiting the generality
of the foregoing, paving, and any other major expense for which the Master Association is responsible; and such other
needs as may arise.
(b) The Master Association shall establish and maintain an adequate reserve fund for the periodic
maintenance, repair and replacement of improvements to the Common Elements; the establishment and maintenance of
an escrow account for the maintenance and repair of stormwater management facilities, as required in Section 6.2.11 D. 5
of the Operation and Maintenance Agreement for such stormwater management facilities with the City of High Point; and
those other portions of the Properties which the Master Association may be obligated to maintain. Such reserve fund is to
be established out of regular assessments for common expense.
(c) All monies collected by the Master Association shall be treated as the separate property of the Master
Association, and such monies may be applied by the Master Association to the payment of any expense of operating and
managing the Properties, or to the proper undertaking of all acts and duties imposed upon it by virtue of this Declaration,
the Articles of Incorporation and the Bylaws of the Master Association. As monies for any assessment are paid to the
Master Association by any Second -Tier Association on behalf of an Owner, or by an individual Owner, the same may be
commingled with monies paid to the Master Association by the other Second -Tier Associations or Owners. Although all
funds and common surplus, including other assets of the Master Association, and any increments thereto or profits
derived therefrom shall be held for the benefit of the Members of the Master Association, no Member of the Master
Association shall have the right to assign, hypothecate, pledge or in any manner transfer his membership interest therein,
except as an appurtenance to his Lot. When any Owner shall cease to be a Member ofthe Master Association by reason
of his divestment of ownership of his Lot, by whatever means, the Master Association shall not be required to account to
such Owner for any share of the fund or assets of the Master Association, or which may have been paid to the Master
Association by such Owner, as all monies which any Owner has paid to the Master Association shall be and constitute an
asset of the Master Association which may be used in the operation and management of the Properties.
SECTION 3. ADOPTION OF BUDGET AND FIXING OF ANNUAL ASSESSMENTS; MAXIMUM
ANNUAL ASSESSMENT. Until December 31 of the year of the conveyance of the first Lot to an Owner, the maximum
annual assessment shall be SIX HUNDRED SIXTY AND NO/100 DOLLARS ($660.00) per Lot.
(a) The maximum annual assessment for the calendar year immediately following the year in which
conveyance of the first Lot to an Owner is made and for each calendar year thereafter shall be established by the
Executive Board and maybe increased by the Executive Board without approval by the Membership by an amount not to
exceed twenty-five percent (25%) of the maximum annual assessment of the previous year. The maximum annual
assessment for the calendar year immediately following the year in which conveyance of the first Lot to an Owner is
made and for each calendar year thereafter may be increased without limit by a vote of the Members entitled to be
increased without limit by a vote of the Members entitled to cast at least two-thirds (2/3) of the votes of each class of

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Members of the Master Association who are voting, in person or by proxy, at a meeting duly called for this purpose;
provided, however, during any Period of Declarant Control, Declarant must also consent to such action.
(b) The Executive Board may fix the annual assessment at an amount not in excess of the maximum,
subject to the provisions of Section 6 of this Article.
SECTION 4. SPECIAL ASSESSMENTS FOR CAPITAL IMPROVEMENTS. In addition to the
annual assessments authorized above, the Master Association may levy, in any calendar year, a special assessment
for the purpose of (i) defraying in whole or in part the costs of any construction, reconstruction, repair or
replacement of a capital improvement upon the Common Elements, including fixtures and personal property related
thereto, provided that any such assessment shall have the assent of the Members entitled to cast at least two-thirds
(2/3) of the votes of each class of Members of the Master Association who are voting, in person or by proxy, at a
meeting duly called for this purpose; provided, however, during any Period of Declarant Control, Declarant must
also consent to such action; and/or (ii) to establish sufficient reserves to meet anticipated capital improvements,
maintenance and repairs; provided, however, during any Period of Declarant Control, Declarant must also consent to
such action. All special assessments shall be fixed at a uniform rate for all Lots and may be collected on a monthly
basis.
SECTION 5. NOTICE AND QUORUM FOR ANY ACTION AUTHORIZED UNDER SECTIONS 3
AND 4. Written notice of any meeting requiring approval by the Membership called for the purpose of taking any
action authorized under Section 3 or 4 of this Article IV shall be sent to all Members not less than twenty (20) days
or more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of Members or
of proxies entitled to cast twenty percent (20%) of all the votes of each class of Membership shall constitute a
quorum. If the required quorum is not present, another meeting may be called subject to the same notice
requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the
preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding
meeting.
SECTION 6. RATE OF ANNUAL ASSESSMENT. Both annual and special assessments must be fixed at
a uniform rate for all Lots within the same class and lot type; and may be collected on a monthly basis; provided,
however, that a Lot that does not have a finished dwelling (finished dwelling shall mean a certificate of occupancy
issued for dwelling) is not subject to assessments; and that any Lot is owned by Declarant or affiliated entity,
including Model Homes, said Lot is not subject to assessments. The books and records of the Master Associations
shall be kept in such a manner that it is possible to determine and ascertain (i) such sums as are expended by the
Master Association for development, improvement, maintenance and upkeep of all facilities of the Master
Association.
SECTION 7. DATE AND COMMENCEMENT OF ANNUAL ASSESSMENTS: DUE DATES. The
annual assessments provided for herein may be collected on a monthly basis and shall commence as to a Lot on the
first day of the month following the transfer of the Lot by the Declarant subject to Declaration obligations set forth in
Section 6. The first annual assessment shall be adjusted according to the number of months remaining in the
calendar year. At least thirty (30) days in advance of each annual assessment period, the Executive Board shall
establish an annual budget and fix the amount of the annual assessments in advance for the following year. In the
event the Executive Board shall fail to fix the amount of annual assessments described above, the assessment fixed
for the immediately preceding year shall continue in effect until a new assessment amount is fixed. Upon adoption
by the Executive Board of the budget and annual assessments amount, the Executive Board shall deliver copies of
same to every Owner subject thereto; provided, however, that failure to deliver a copy of the budget and annual
assessments amount shall not affect the liability of Owners for assessments. The due dates shall be established by
the Executive Board. The Master Association shall, upon demand, and for a reasonable charge, furnish a certificate
signed by an officer of the Master Association setting forth whether the assessments on a specified Lot have been
paid.
SECTION 8. EFFECT OF NONPAYMENT OF ASSESSMENTS: REMEDIES OF THE MASTER
ASSOCIATION. Any assessment not paid within thirty (30) days after the due date shall result in imposition of a
reasonable late fee to be determined by the Executive Board. In addition to the imposition of the late fee, the

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Executive Board may also assess interest on the unpaid late balance at the rate of eighteen percent (18%) per annum.
After notice and an opportunity to be heard, the Master Association may suspend privileges or services provided by
the Master Association except rights of access to Lots during any period that assessments or other amounts due and
owing to the Master Association remain unpaid for a period of thirty (30) days or longer, which suspension may
continue without further hearing until the delinquency is cured. The Master Association may bring an action at law
against the Owner personally obligated to pay the same or foreclose the lien created herein against the property in the
same manner as prescribed by the laws of the State of North Carolina for the foreclosures of Deeds of Trust. All
interest, costs and reasonable attorney's fees for representation of the Master Association in such action or
foreclosure shall be added to the amount of such assessment and shall constitute a lien on the Property. No Owner
may waive or otherwise escape liability for the assessment provided for herein by non-use of the Common Elements
or abandonment of his or her Lot or shall damage to or destruction of any improvements on any Lot by fire or other
casualty result in any abatement or diminution of the assessments provided for herein. In addition to the foregoing,
the Master Association shall have and may utilize all remedies granted it under the provisions of North Carolina
General Statutes Chapter 47F, et al.
ALL PROPERTIES WITHIN THE JURISDICTION OF THIS MASTER ASSOCIATION ARE SUBJECT
TO THE PROVISIONS OF THE NORTH CAROLINA PLANNED COMMUNITY ACT, NORTH CAROLINA
GENERAL STATUTES CHAPTER 47F.
SECTION 9. EFFECT OF DEFAULT IN PAYMENT OF AD VALOREM TAXES OR ASSESSMENTS
FOR PUBLIC IMPROVEMENTS BY MASTER ASSOCIATION. Upon default by the Master Association in the
payment to the governmental authority entitled thereto of any ad valorem taxes levied against the Common Elements
or assessments for public improvements to the Common Elements, which default shall continue for a period of six
(6) months, each Owner of a Lot in the development shall become personally obligated to pay to the taxing or
assessing governmental authority their pro rata share of the outstanding amount. If such sum is not paid by the
Owner within thirty (30) days following receipt of notice of the amount due, then such sum shall become a
continuing lien on the Lot of the then Owner, his or her heirs, devisees, personal representatives and assigns, and the
taxing or assessing governmental authority may either bring an action at law or may elect to foreclose the lien against
the Lot of the Owner.
SECTION 10. SUBORDINATION OF THE LIEN TO MORTGAGES. The liens provided for herein
shall be subordinate to the lien of any first mortgage or deed of trust. Sale or transfer of any Lot shall not affect the
assessment lien or liens provided for in the preceding section. However, the sale or transfer of any Lot which is
subject to any such first mortgage or deed of trust, pursuant to a foreclosure thereof or any proceeding in lieu of
foreclosure thereof, shall extinguish the lien of such assessments as to the payment thereof which become due prior
to such sale or transfer. No such sale or transfer shall relieve such Lot from liability for any assessments thereafter
becoming due or from the lien thereof, but the lien provided for herein shall continue to be subordinate to the lien of
any first mortgage or deed of trust.
SECTION 11. EXEMPT PROPERTY. All property dedicated to, and accepted by, a local public authority
and all properties owned by a charitable or non-profit organization exempt from taxation by the laws of the State of
North Carolina shall be exempt from the assessments created herein. However, no land or improvements devoted to
dwelling use shall be exempt from said assessments.
SECTION 12. WORKING CAPITAL ASSESSMENTS. In addition to the annual assessments authorized
above, at the time of the closing of the first sale of each lot to a purchaser other than Declarant or its affiliate, the
Purchaser shall pay to the Master Association an amount equal to three twelfths (3/12) of the then current annual
assessments for such lot established by the Master Association. Such funds shall be used by the Master Association
to establish a Working Capital Fund, the purpose of which is to help insure that the Master Association will have
sufficient monies available to meet its initial operational needs, unforeseen expenditures or long-term capital
improvements and repairs to the common elements; and the establishment and maintenance of an escrow account for
the maintenance and repair of stormwater management facilities, as required in Section 6.2.11 D. 5 of the Operation
and Maintenance Agreement for such stormwater management facilities with the City of High Point. No such
payments made into the Working Capital Fund shall be considered advanced or current payments of regular
assessments. All monies paid into the Working Capital Fund shall be held and administered by the Master
Association in accordance with the terms of the Declaration and the Bylaws of the Master Association.

Book 8060 Page 559
ARTICLE V
ARCHITECTURAL CONTROL
Section 1. Architectural Review Committee.
The Architectural Review Committee shall be composed of at least three (3) members, all of whom shall be
appointed by the Master Association's Board of Directors, except as provided in Section 5 of this Article. The
members of the Architectural Review Committee need not be Members of the Master Association, nor Owners nor
Occupants of the Properties. Notwithstanding anything to the contrary contained herein or in any Second -Tier
Declaration now or hereafter affecting all or a portion of the Properties, the Architectural Review Committee of the
Master Association shall be the final arbiter of the matters set forth in this Article and otherwise regulating
improvements to all or a portion of the Properties. Notwithstanding anything to the contrary contained in this or any
subsequent declaration affecting all or a portion of the Properties, so long as any Lot is owned by Declarant or an
assignee of Declarant's development rights, any improvements on such Lot shall not be subject to any review or
approval from the Architectural Review Committee or the Master Association.
Section 2. Purpose.
An important purpose of these covenants and restrictions, and a significant consideration in the origin of
same, has been the creation of a community which is aesthetically pleasing and functionally convenient. The
establishment of strict objective requirements relating to design, appearance, size and location of buildings and other
structures would make it difficult to take full advantage of the individual characteristics of each Lot and of
technological advances and environmental values. In order to implement the purposes of these covenants, however,
the Architectural Review Committee shall establish and amend from time to time objective standards and guidelines
for the Properties or specified areas within the Properties (the "Architectural Guidelines"), which Architectural
Guidelines shall be binding on the Owners and Occupants of the Properties or the effected portions thereof and may
include, without limitation, the following:
(a) "Architectural Standards and Construction Specifications," which may establish, define, and
expressly limit those standards and specifications which will be approved for the construction or alterations of
Improvements within the Properties or a specified area thereof, including, but not limited to, exterior color or finish,
roofing material, restrictions and regulations on exterior mechanical equipment and roof -mounted equipment, siding
material, driveway material, landscape design, construction techniques, size of improvements and dimensional
requirements, to include street and yard setbacks.
(b) "Parking Guidelines," which may establish standards and specifications for adequate vehicular
circulation areas, including areas for the parking of automobiles and trucks off public or private streets, and may
regulate the design and paving of parking areas and minimum numbers of parking spaces to be provided within the
Properties.
(c) "Uniform Sign Standards," which may establish standard design, distribution and location criteria
for all signs, as well as the maximum number, maximum area and maximum height of signs and signs which shall be
prohibited within the Properties.
(d) "Lighting Guidelines," which may regulate the erection, maintenance and operation of lighting
fixtures within the Properties, including but not limited to the location, size, color, design and hours of operations of
such fixtures.
(e) "Landscape Guidelines," which may establish approved standards, methods, and procedure for
landscape management within the Properties.
Section 3. Controls.
Except as otherwise provided herein to the contrary, no Improvement, as that term is hereinafter defined,
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Book 8060 Page 560
shall be erected, constructed, placed or altered (by addition or deletion) in such a way as to change the exterior
appearance of such Improvement, on any portion of the Properties, including any Common Elements, until the
preliminary and final plans and specifications therefor, in such form and detail as the Architectural Review
Committee may require pursuant to policies and procedures from time to time adopted and promulgated by it, shall
have been submitted to and approved in writing by the Architectural Review Committee in accordance with the
procedures set forth below. As used herein, "Improvements" shall mean and refer to any building, or other
improvement which may affect the appearance of the Properties, including but not limited to, any building, garage,
driveway, wall fence, parking area, walkway, antenna, curbing, paving, landscaping, irrigation system, tree
(including trees indigenous to the site), hedge, signage, or any temporary trailer. "Improvements" also means (i) any
excavation, fill, ditch, diversion, lake, pond, dam, or berm or anything or device that alters or crosses the natural
flow of water in any natural or artificial drainage channel from, or upon, any portion of the Properties by more than
six (6) inches from that existing at the time of purchase by an Owner, and (ii) any slope or embankment adjacent to
or bordering on any public or private roadway.
(a) Preliminary Review - No application for a building permit or for any other approval from the
Town of Walkertown for the construction or alteration of Improvements on the Properties, including without
limitation, a special use permit, and/or commencing the construction or alterations of any Improvement on any
portion of the Properties, shall be submitted with respect to any portion of the Properties until the Architectural
Review Committee shall have approved in writing the preliminary plans and specifications therefor submitted by the
Owner contemplating such construction or alteration showing or setting forth at least the following:
(i) Location of all structures, easements, streets and set -back lines;
GO Location of all walks, flagpoles, parking areas, off-street loading areas, driveway and outside
storage areas;
(iii) Location of all landscaping features;
(iv) Architectural building elevation drawings of each building face including without limitation
materials to be used in their proper locations;
(v) Building, materials and color information and samples to be submitted if available;
(vi) Site coverage data and calculations;
(vii) Parking, data and calculation, including base data for projected needs;
(viii) Site drainage plans, data and calculations;
(ix) Description of proposed use.
The Architectural Review Committee shall review such preliminary plans and specifications and shall in writing
approve, suggest modifications to, or reject such preliminary plans. Approval of the preliminary plans and
specifications shall not constitute final approval of the plans but only a guide to the Owner before detailed
construction drawings are prepared.
(b) Final Plan Review - No Improvement shall be erected, placed, or altered on any portion of the
Properties until the Architectural Review Committee shall have approved in the writing the final plans and
specification therefor submitted to the Architectural Review Committee by the Owner contemplating such
construction or alteration showing or setting, forth at least the following:
(i) Location of all structures, easements, streets and set -back lines;
(ii) Location of all walks, driveways and curbs lines;
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Book 8060 Page 561
(iii) Layout and location of all parking areas, including location and dimensions of all spaces,
circulation aisles, curbs and bumpers;
(iv) Layout and location of all off-street loading, service, delivery and trash collection areas;
(v) Layout and location of all outside storage areas, including identification and size of the material to
be stored and location and dimension of all fencing and screening;
(vi) All landscaping, including location, height, spread, type and number of trees and shrubs and
location and type of all ground cover and lawn material;
(vii) Location, height, intensity and fixture type of all exterior lighting;
(viii) Location, size and type of all pipes, lines, conduits and appurtenant equipment and facilities for the
transmission of sanitary sewage, storm water, water, electricity, gas, telephone, steam and other utility
services;
(ix) Location, size and type of all fencing and flagpoles;
(x) Architectural floor plans, building elevation, wall sections and details of each building;
(xi) Building material and color information, including samples;
(xii) Temporary construction sign design;
(xiii) Permanent sign design;
(xiv) Site coverage data and calculations;
(xv) Parking data and calculations, including base data for projected needs;
(xvi) Site drainage data and calculations, including finished contour lines and spot elevations and
drainage and sediment retention plans, both during and after construction, including temporary sediment
pits, check dams and silt fencing plans; and
(xvii) Detailed information regarding the proposed use of the site; and
(xviii) Copies of all permits and any accompanying correspondence, erosion and sedimentation control
plans and other plans submitted for governmental approval.
The Architectural Review Committee shall review such final plans and specifications and shall in writing, approve,
suggest modifications to, or reject such plans.
(c) Submission of Plans and Specifications - Any Owner desiring to obtain preliminary or final
approval for the construction of Improvements to be located on, or alteration of Improvements located within, the
Properties shall submit to the Architectural Review Committee three (3) copies of the preliminary or final, as the
case may be, plans and specifications therefor.
(d) Failure of the Architectural Review Committee to Act - If the Architectural Review Committee
fails to approve or to disapprove any plans and specifications submitted to it or to reject them as being inadequate
within thirty (30) days after submittal thereof, and provided no Improvement or alteration of an Improvement
described in such plans and specifications violates the covenants and restrictions contained in this Declaration
applicable thereto, it shall be conclusively presumed that the Architectural Review Committee has approved such
plans and specifications. The Architectural Review Committee, by its failure to act, shall be deemed to have waived,
or granted any variances from, any guideline, standard or specification established by the Architectural Review
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Book 8060 Page 562
Committee pursuant to this Declaration. If any plans and specifications are not sufficiently complete or are
otherwise inadequate, the Architectural Review Committee may reject them as being inadequate or may approve or
disapprove part, conditionally or unconditionally, and reject the balance. If the Architectural Review Committee
rejects any submission, it shall provide, on the request of the Owner making, such submission, a specific written
statement of the reasons for rejection detailing the manner in which the submission fails to conform to the applicable
architectural guidelines, shall suggest revisions that meet the Architectural Review Committee's requirements, and
shall otherwise make reasonable efforts (at no cost to the Master Association) to aid the submitting Owner in
preparing a proposal that would be acceptable to such Architectural Review Committee. Any subsequent
resubmission by the Owner shall be reviewed and acted upon by the Architectural Review Committee as outlined
herein, within thirty (30) business days after such resubmission.
(e) Completion of Construction - When the construction of any building has once begun, work thereon
must be prosecuted diligently and must be completed within a reasonable time not exceeding twelve (12) months
from the date of commencement of construction; provided, however, the Declarant may modify such requirement in
cases of hardship.
(1) Architectural Review Subcommittees - The Architectural Review Committee, with the consent of
the Declarant during the Declarant's Development Period, may establish subcommittees of the Architectural Review
Committee for the review of additions or modifications to Lots that have been placed In Use for a particular use, e.g.,
Towne Home Units and Single -Family Lots, respectively, as those terms are defined in certain Second -Tier
Declarations.
Section 4. Exemption for Education Board Property.
Any portion of the Properties conveyed to the Guilford County Board of Education or its successor (the
"Education Board") for the purpose of constructing thereon a public school shall not require the approval of the
Architectural Review Committee (i) if such approval is waived in writing by the Architectural Review Committee
upon written request for such waiver by the Education Board and (ii) so long as the Guilford County Board of
Education or its successor continues to own the property and such property is used for public school purposes.
Section 5. Architectural Rights of Declarant During Declarant's Development Period.
Notwithstanding anything herein provided to the contrary, Declarant, during Declarant's Development
Period, shall have the power and authority to appoint the members of the Architectural Review Committee.
Section 6. No Liability.
Neither Declarant, the Master Association, nor any member of the Master Association's Board of Directors
or Architectural Control Committee, shall be responsible or liable in any way for any defects in any plans or
specification approved by them, nor for any structural defects in any work done according to such plans and
specifications. Further, neither Declarant, the Master Association, nor any member of the Master Association's
Board of Directors or Architectural Control Committee, shall be liable in damages to anyone by reason of mistake in
judgment, negligence, misfeasance, malfeasance or nonfeasance arising out of or in connection with the approval or
disapproval or failure to approve or disapprove any such plans or specifications or the exercise of any other power or
right provided for in this Declaration. Every person who submits plans or specifications for approval agrees, by
submission of such plans and specifications, and every owner of any Lot agrees, that he or she will not bring any
action or suit against Declarant, the Master Association, or any member of the Master Association's Board of
Directors or Architectural Control Committee, to recover any such damage.
Section 7. Architectural Review Fee.
A reasonable architectural review fee, to be paid in advance, may be charged by the Architectural Review
Committee each time preliminary plans and specifications are submitted for approval in accordance herewith.
Preliminary and final plans shall count as one (1) submittal for the purposes of this Section. In the event that
submitted plans are disapproved as not conforming with the provisions of this Article or with other criteria imposed
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Book 8060 Page 563
by the Architectural Review Committee, when new or revised plans are submitted, if the revisions are reasonably
deemed by the Architectural Review Committee to be substantial and pervasive, the resubmission may be deemed to
be an entirely new submittal, subject to the foregoing fee schedule. Notwithstanding anything in this Section to the
contrary, the amount of the architectural review fee provided for herein may be modified from time to time by the
Architectural Review Committee to reflect changed circumstances such as inflation. The Architectural Review
Committee also shall have the power to waive any established architectural review fee.
Section 8. Estoppel Certificate.
Upon demand and the payment of a reasonable charge therefor, the Master Association shall provide an
estoppel certificate in form and substance satisfactory to the Master Association certifying that, as of the date
thereof, either (a) all Improvements made or other work done on a Lot are in compliance with this Declaration and
any architectural standards or guidelines applicable thereto, or (b) such Improvements or work do not so comply, in
which event the certificate shall identify the non -complying Improvements or work and set forth with particularity
the cause or causes of such non-compliance. Any lessee, purchaser or Mortgagee acquiring an interest in good faith
for value shall be entitled to rely on said certificate with respect to the matters set forth therein, such matters being
conclusive as between the Master Association and any such subsequent parties in interest relying on said certificate.
ARTICLE VI
EXTERIOR MAINTENANCE
(a) Subject to further regulation contained in any Second -Tier Declaration, if any, all portions of the
Properties and the exterior and interior of all buildings, paved areas, landscaping, grounds and other improvements
located thereon shall be maintained by the Owner(s) thereof at all times in a safe, clean and wholesome manner and
in first class condition and repair, replacements being made as necessary. If the Owner(s) of any Lot fails to so
maintain any building, structure, paved area, landscaping, driveway or sidewalk, and such failure continues for a
period of twenty (20) business days after written notice from the Master Association to such Owner(s) (or within a
longer period of time if the required work cannot reasonably be completed within twenty (20) business days;
provided that the required work is commenced within such twenty (20) business day period and thereafter diligently
pursued), the Master Association, its designees or employees, shall have the right to enter such portion of the
Properties and perform the required maintenance, repairs or replacements, including, but not limited to, painting,
guttering, repairs and replacements, the removal, hauling away and disposing of abandoned vehicle, and landscaping.
The Owner of such property shall reimburse the Master Association for the cost of any work above required plus a
service charge of twenty percent (20%). Any such costs or charges not reimbursed to the Master Association shall
be added to and become a part of the Assessments levied against any such property and shall become a lien thereon
to, the same extent as provided in this Declaration. To accomplish the foregoing maintenance, the Master
Association and its agents shall have an access easement over and upon all Lots.
(b) Notwithstanding the foregoing, in the event that any such property is not in first class condition
and repair due to the occurrence of a casualty which is covered under the Owner's casualty insurance policy, the time
periods set forth in the foregoing provision shall apply only with regard to such work as is necessary to prevent any
health or safety hazards. The restoration of the property and improvements to first class condition and repair shall
not be required to commence until such time as the proceeds of the insurance policy have been paid or made
available to the Owner or the Owner's Mortgagee, but in no event more than thirty (30) days after the occurrence of
the damage or destruction, and after commencement, such restoration shall be diligently pursued to completion.
(c) Costs subject to Assessment. In the event that the need for any maintenance, repair or replacement
required hereunder to be performed by the Association is caused through the willful or negligent act of the Owner,
his or her family, guests or invitees, or is caused by fire, lightning, windstorm, hail, explosion, riot, riot attending
strike, civil commotion, aircraft, vehicles, smoke, or inclement weather storms such as ice storms, freezing rain
storms, and snow storms, as the foregoing are defined and explained in North Carolina Standard Fire and Extended
Coverage Insurance policies, the cost of such maintenance, replacement or repairs shall be added to and become a
part of the assessment to which such Lot is subject.
(d) Easement to perform Exterior Maintenance and Repairs. In order to enable the Association to
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accomplish the foregoing, there is hereby reserved to the Association and Declarant the right to unobstructed access
over and upon each Lot at all reasonable times to perform maintenance and/or repairs as provided in this Article.
ARTICLE VII
SECTION 1. LAND USE AND BUILDING TYPE. No Lot shall be used except for single-family
residential purposes; provided, however, Declarant, or any affiliated entity may use any Lot owned or leased by
Declarant or any affiliated entity as a sales office, construction office, model, or any other Declarant type of use. No
building shall be erected, placed or permitted to remain on any Lot other than one detached or attached single-family
dwelling not to exceed three (3) stories in height excluding basement, an optional attached private garage for not
more than three (3) cars and one (1) accessory building incidental to the residential use of the Lot. By way of
illustration and not of limitation, any such accessory building must be (i) approved pursuant to Article V and (ii)
constructed of wood, and (iii) match the primary exterior color of the residence and (iv) shall not have exterior
surface of plastic or metal.
SECTION 2. DWELLING SPECIFICATIONS. No dwelling shall be erected or allowed to remain on a
Lot if the total heated floor area shall be less than Twelve Hundred (1200) square feet in the case of a single story
dwelling, or Fourteen Hundred (1400) square feet in the case of a one and one-half, two, or three story dwelling.
SECTION 3. NUISANCE. No noxious or offensive activity shall be conducted upon any Lot or the
common elements nor shall anything be done thereon which may be or may become an annoyance or nuisance to the
neighborhood. All Lot Owners expressly waive any claims against the Declarant or any affiliated entity related to
any obnoxious or offensive activity conducted upon any Lot or relating to anything done upon any Lot which may be
or may become an annoyance or nuisance to the neighborhood, except to the extent that the alleged obnoxious or
offensive activity is conducted by the Declarant or the Declarant's agent. No Lot or other area within the Properties
shall be used as a dumping ground for rubbish or as a site for the accumulation of unsightly materials of any kind,
including, without limitation, broken or rusty equipment and discarded appliances and furniture. No garbage cans or
trash receptacles of any kind or nature shall be kept on any lot unless inside a structure or enclosure, such as a
latticed area and screened from the view of persons using the street and from adjacent lots. All garbage cans or trash
receptacles shall only be placed outside at the earliest the evening before garbage pickup day and shall be
immediately returned inside an enclosed area after garbage has been picked up. No outdoor clotheslines or above
ground pools shall be permitted to be erected or remain on any lot. Towels, sheets, and/or other unsightly materials
shall not be utilized for interior and/or exterior window coverings.
SECTION 4. MOTOR VEHICLES. No motor vehicles, including boats, marine crafts, hovercrafts,
aircraft, trailers, campers, mopeds, motorcycles, or passenger or commercial automobiles or trucks shall be parked
within the right of way of any public or private street adjacent to any Lot, except that any of the above may be parked
within such right of way for not more than four (4) consecutive hours. This restriction shall not apply to any vehicle,
machinery or equipment temporarily parked and in use for the construction, maintenance or repair of a residence in
the immediate vicinity of the parking area. No vehicles, boats, jet skis, motorcycles, trailers, campers, recreational
vehicles, or similar equipment shall be parked or stored in any area (Common Elements or on any Lot) visible from
any street except passenger automobiles, passenger vans, and pick-up trucks (equal to or less than one ton in size)
that are in operable condition and have current license plates, registration, and inspection certificate stickers. No
unsightly discolored or rusty motor vehicle; or inoperative motor vehicle may be parked or stored on any Lot or any
public or private street or other area within the Properties, except within a completely enclosed garage, for a period
in excess of forty-eight (48) hours. No maintenance and/or repair of vehicles shall be performed on any Lot or any
public or private street or other area within the Properties except within completely enclosed garages constructed in
conformity with these covenants and applicable laws and ordinances. All parking for the aforesaid acceptable
vehicles within the Lots shall be in garages, driveways, or Master Association designated parking areas and shall not
be in any lawns.
SECTION 5. ANIMALS. No animals, livestock or poultry of any kind shall be kept or maintained on the
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Common Elements or on any Lot or in any dwelling except that dogs, (except for those breeds, either full blood or
mixed, known as Chows, Rottweilers, and Pit Bull Terriers, all of which are specifically excluded) cats or other
household pets, not to exceed three (3) pets per household, may be kept or maintained provided that they are not kept
or maintained for commercial purposes and further provided that they are kept and maintained in compliance with (i)
all laws and ordinances of the Appropriate Local Governmental Authority; (ii) such rules and regulations pertaining
thereto as the Executive Board may adopt from time to time; and (iii) are controlled when outside the dwelling so as
not to annoy or offend other residents due to barking or other conduct. The foregoing limitation on the number of
pets shall not apply to hamsters, small birds, fish or other constantly caged indoor animals, nor shall it apply to
require the removal of any litter bom to a permitted pet to prior to the time that the animals in such litter are three (3)
months old. If any animal may, in the sole discretion of the Executive Board or its designated committee, make an
objectionable amount of noise, or endanger the health, safety, comfort or wellbeing of the occupants of other Lots,
such animal shall be removed upon the request of the Executive Board or its designated committee. If the Owner of
such animal fails or refuses to honor such request, the animal may be removed at the direction of the Executive
Board. Pet fecal matter must be collected from the Common Elements and any Lot by the pet owner and/or other
person responsible for the pet at the time. An Owner's failure to remove fecal matter or other said waste shall be
conclusively deemed to be a nuisance, and shall subject such Owner to such reasonable penalties as may be
determined by the Association, including without limitation, the removal of such animal as described above. The
cost and expense of any removal of an animal under this Section 5 shall be the sole responsibility of the Owner of the
Lot where the animal was kept (or brought by a guest or invitee). In the event that such Owner fails to reimburse the
Association for such cost and expense within twenty-one (21) days after the Association's demand for
reimbursement, such cost and expense shall become part of the annual assessment against such Lot, and the amount
of such cost or expense assessed against such Lot shall not be counted or considered in determining whether a
maximum assessment has been made against such assessed Lot under Article IV of this declaration.
SECTION 6. OUTSIDE ANTENNAS. No outside radio or television antennas or discs shall be erected on
the Common Elements or on any Lot or dwelling within the Properties unless and until permission for the same has
been granted by the Executive Board of the Master Association or the Architectural Control Committee pursuant to
Article V of this Declaration. In no event shall any satellite dish in excess of thirty-six (36) inches in diameter be
permitted on any lot. Prior to installing an approved satellite dish, the Owner must make a good faith effort to locate
the dish in an approved area and screen the dish such that the dish is not visible from any Lot, the street or any
Common Elements. The screening for the dish must be approved by the Executive Board of the Association or the
Architectural Control Committee.
SECTION 7. RESUBDIVISION OF LOTS AND STREETS. No lot shall be re -subdivided into a lot
smaller than or different from the Lot shown on the recorded plat and no street shall be laid out across or through any
Lot, except with the written consent of Declarant.
SECTION 8. FLAGS AND SIGNS. A Flag of the United States of America and/or of the State of North
Carolina, of a size that is no greater than four feet by six feet are allowed on any Lot. All other flags must be
approved by the Executive Board or Architectural Control Committee. One For Sale Sign may be displayed on any
Lot while the Owner is selling the said Lot. One Commercial Security System Sign may be displayed on any Lot. Up
to two political signs of a size that is no greater to two feet by two feet may be displayed within any Lot provided
they are located within six feet of the front of the Owner's home; and are not displayed earlier than 45 days before
such election and must be removed with 7 days after such election. Otherwise, no sign, banner, billboard, or similar
type of display device of any kind whatsoever shall be erected upon or displayed or otherwise exposed to view on
any Common Elements, Lot, or any improvement thereon; or on or within any vehicle within Common Elements,
Public Roads, or any Lots. No sign deemed by the Association, the Architectural Control Committee or Declarant to
be a nuisance or a detriment to the Properties or the Additional Property shall be permitted, erected or allowed to
remain on any Lot. Notwithstanding the foregoing, Declarant and any affiliate shall have the right to erect and
maintain signs, of any shape and size, within the Common Elements, within vehicles, equipment, or on any Lot for
the purpose of informing, advertising and marketing. All Flags and signs must be moved by Owners from time to
time to permit yard maintenance.
SECTION 9. MOBILE HOMES, MANUFACTURED HOMES, ETC. No mobile home, manufactured
home, modular home, trailer, or other like structure shall be located or installed on any Lot. As used in this Section
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9, mobile home, manufactured home or modular home shall mean a structure, assembled in whole or in part in a
location other than on the Lot itself, transportable in one or more sections, any section of which, during transport, is
four (4) feet or more in width and ten (10) feet or more in length on a two dimensional plane, (other than roof and
floor trusses) , which may or may not be built on a permanent chassis and which is designed to be used as a dwelling
with or without a permanent foundation when connected to the required utilities. Notwithstanding the foregoing,
Declarant, builders or contractors may maintain temporary improvements (such as a sales office and/or construction
trailer) on any Lot or Common Elements during the construction and development period.
SECTION 10. FENCES OR RETAINING WALLS. Except any fence constructed by Declarant, or any
affiliated entity, no fence, retaining wall, or other enclosure shall be constructed on any lot except with the written
consent of Declarant or Architectural Control Committee as provided in Article V of the declaration. Chain Link
fences are not permitted. Not withstanding the foregoing, Declarant, its successors and assigns, and the Master
Association shall have the right to erect chain link fences and any other type of fences and enclosures within the
Common Elements to enclose retention ponds and for other purposes without the approval of the Architectural
Control Committee, such fences and enclosures to become a part of the Common Elements to be maintained by the
Master Association.
SECTION 11. STORAGE. No household furnishings, equipment, lawn furniture or related personal
property, including but not limited to: toys, children's play objects, grills, bicycles, and lawn ornaments shall remain
outside the residential unit, approved accessory building, or garage overnight; or during the period of time that lawn
maintenance is being performed. Approved lawn furniture, grills, and other approved items may be allowed to
remain on patios, decks, and/or covered porches. By way of illustration and not limitation, all objects must be
removed from the front yards, front porches and placed out of view of the public and other Owners within a
reasonable amount of time after the last use. Reasonable arrangements of seasonal flower pots and hanging baskets
are permitted. All outside garbage storage receptacles, containers, and enclosures shall be located at the rear of the
homes. No basketball hoop, goal, backboard, or pole shall be affixed in any manner to any of the Properties or to
any structure erected upon any of the Properties. Moveable basketball goals shall be allowed provided that, when
not in use, they are immediately stored in a garage, or other approved storage facility, so as not to be visible from
any street.
SECTION 12. SINGLE FAMILY USE RESTRICTION. No Lot within the Properties shall be used as a
half -way house, juvenile home, detention center, temporary/long term shelter of any kind, or rehabilitation center of
any kind. This provision is intended to prevent the use of the Properties for housing, protection, detention, or
rehabilitation of criminals, homeless persons, or other similarly situated persons. It is not the intent of the provision
to prevent the Owners of the Lots from undergoing medical or therapeutic rehabilitation or treatment at home. No
industry, business, trade, occupation, or profession of any kind, whether commercial or otherwise, shall be
conducted, maintained, or permitted on any part of the property, except an Owner may use one room of his or her
Home as a home office, provided however, (i) there is nothing visible from outside the Home to indicate a room is
being used as an office; (ii) there are no business clients or members of the general public coming to the Home
because of the business being conducted in the Home; and (iii) there is nothing being done in the Home which may
be or may become an annoyance or nuisance to the Properties. Notwithstanding the Declarant or its agents may use
any unsold Lots for staging construction materials and any unsold Homes for sales or display purposes.
SECTION 13. RULES AND REGULATIONS FOR USE OF LOTS. The Executive Board may
implement reasonable rules and regulations that govern use and conduct on Lots owned by Owners. These rules and
regulations may be more restrictive than those restrictions set forth in this Declaration, the Bylaws, and the Articles
of Incorporation. Said rules and regulations may be enforced pursuant to Article X below.
ARTICLE VIII
EASEMENTS
SECTION 1. UTILITIES. Easements for installation and maintenance of utilities and drainage facilities
are reserved as indicated on recorded plats. In addition, Declarant reserves, for itself and the Master Association,
additional easements and rights -of -way for the installation and maintenance of utilities (including cable television
service) and drainage facilities over the rear ten (10) feet of any Lot and over each side five (5) feet of all Lots,
17

Book 8060 Page 567
provided, however, that Declarant may, in its sole discretion, waive its right to such additional easement along rear
and side Lot lines, in connection with any planned and approved "zero lot line" residence to be constructed on any
Lot. Any such waiver shall be by written instrument executed and recorded by Declarant. Within these easements
no structures, planting or other material shall be placed or permitted to remain which may interfere with the
installation and maintenance of utilities, or which may change the direction of flow of drainage channels in the
drainage easements, or which may obstruct or retard the flow of water through drainage channels in the easements.
An easement is hereby established for the benefit of the appropriate governmental entity (and any other person or
firm providing services to the Properties under agreement with or at the direction of the Master Association) over all
Common Elements as may be reasonably necessary for the setting, removal and reading of utility meters, and for
maintenance and replacement of water, sewer, and drainage facilities and for the fighting of fires and collection of
garbage. The Declarant and the Master Association Executive Board shall have the power and authority to grant and
establish upon, over and across the Common Elements such additional easements as are necessary or desirable for
the providing of service or utilities to the Common Elements or Lots.
SECTION 2. SIGNS. Declarant hereby grants, gives and conveys to the Master Association a perpetual,
non-exclusive easement over any portions of the Lots designated as "sign easements" on plats of the Properties, now
and hereafter recorded, to erect, maintain, replace and repair subdivision signs and landscaping and/or lighting
surrounding the same and add such easements shall be part of the Common Elements. The Master Association shall
maintain all subdivision signs, landscaping, lighting, irrigation systems, and etc. surrounding the same now or
hereafter erected within the Common Elements. The costs of all such maintenance, repair and replacement of such
signs, landscaping, lighting, irrigation systems, etc. shall be part of the common expenses of the Master Association,
payable by the Owners as set out in Article IV hereof. Further, Declarant and any affiliated entity shall have (i) the
right to erect within the Common Elements additional subdivision signs, landscaping, lighting, irrigation systems,
etc. surrounding the same to be maintained by the Master Association as herein provided and (ii) the right to erect
within the Common Elements signs for advertising and marketing.
SECTION 3. EASEMENT RESERVED BY DECLARANT. Declarant hereby reserves such easements
on, across and over the Common Elements and Lots as shall be reasonably necessary for (i) the exercise by Declarant
or any affiliated entity of any right herein reserved, including , without limitation, Declarant's right, should Declarant
elect, to annex the Additional Property, as hereinafter defined and (ii) the development by Declarant or any affiliate,
their respective successors and assigns, of the Additional Property, should Declarant elect to annex or not to annex
the Additional Property, including without limitation easements for ingress, egress and regress over private roads and
streets now or hereafter erected on the Properties and easements for the use of all utility lines, fixtures and/or their
connections located within the Common Elements for the purpose of providing water, light, power, telephone, water
and sanitary and other utility services to the Properties and Additional Property.
SECTION 4. ENCROACHMENTS. In the event that any improvements including but not limited to
structures, fences, retaining walls, driveways and etc. on a Lot shall encroach upon any Common Elements or upon
any other Lot as a result of the improvements constructed by Declarant or for any reason not caused by the
purposeful or negligent act of the Owner or agents of such Owner, then an easement appurtenant to such Lot shall
exist for the continuance of such encroachment upon the Common Elements or other Lot for so long as such
encroachment shall naturally exist; and, in the event that any portion of the Common Elements shall encroach upon
any Lot, then an easement shall exist for the continuance of such encroachment of the Common Elements into any
such Lot for so long as such encroachment shall naturally exist.
ARTICLE IX
RIGHTS RESERVED UNTO INSTITUTIONAL LENDERS
SECTION 1. ENTITIES CONSTITUTING INSTITUTIONAL LENDERS. "Institutional Lender" as the
term used herein shall mean and refer to banks, savings and loan associations, insurance companies or other firms or
entities customarily affording loans secured by first liens on residences, and eligible insurers and governmental
guarantors.
SECTION 2. OBLIGATION OF MASTER ASSOCIATION TO INSTITUTIONAL LENDERS. So long
as any Institutional Lender shall hold any first lien upon any Lot and shall given notice to the Master Association as
18

Book 8060 Page 568
set forth in Section 3 of this Article, or shall be the Owner of any Lot, such Institutional Lender shall have the
following rights:
(a) To inspect the books and records of the Master Association during normal business hours and to
be furnished with at least one (1) copy of the annual financial statement and report of the Master Association
prepared by a certified public accountant designated by the Executive Board of the Master Association, such
financial statement or report to be famished by April 15 of each calendar year.
(b) To be given notice by the Master Association of the call of any meeting of the Membership to be
held for the purpose of considering any proposed amendment to this Master Declaration or the Articles of
Incorporation or Bylaws of the Master Association or of any proposed abandonment or termination of the Master
Association or the effectuation of any decision to terminate professional management of the Master Association and
assume self -management by the Master Association.
(c) To receive notice of any condemnation or casualty loss affecting the Common Elements or any
portion thereof.
(d) To be notified of any lapse, cancellation or material modification of any insurance policy or
fidelity bond maintained by the Master Association.
(e) To be given notice by the Master Association of any proposed alienation, release, transfer,
hypothecation or other encumbrance of the Common Elements, other than those specific rights vested in the Master
Association under Article II hereof.
(f) To be given notice of any delinquency in the payment of any assessment or charge (which
delinquency remains uncured for a period of sixty (60) days by any Owner owning a Lot encumbered by a mortgage
held by the Institutional Lender, such notice to be given in writing and to be sent to the principal office of such
Institutional Lender, or to the place which it may designate in writing.
SECTION 3. REQUIREMENTS OF INSTITUTIONAL LENDER. Whenever any Institutional Lender
desires to avail itself of the provisions of this Declaration, it shall famish written notice thereof to the Master
Association by CERTIFIED MAIL at the address shown in the Articles of Incorporation identifying the Lot or Lots
upon which any such Institutional Lender holds any first lien or identifying any Lot or Lots owned by such
Institutional Lender and such notice shall designate the place to which notices, reports or information are to be given
by the Master Association to such Institutional Lender.
ARTICLE X
GENERAL PROVISIONS
SECTION 1. ENFORCEMENT. The Owner(s) of each Lot shall be governed by and shall comply with the
provisions of this Master Declaration, the Bylaws of the Master Association and all rules and regulations of the Master
Association adopted pursuant thereto, as any of the same are now constituted or as they may be amended from time to
time. A default by any Owner shall entitle the Master Association or the Owner(s) of any of the other Lots to the
following relief:
(a) The Master Association, or any Owner, shall have the right to enforce, by any proceeding at law or in
equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions
of this Declaration, the Bylaws of the Master Association and all rules and regulations ofthe Master Association adopted
pursuant thereto. Failure to comply with any of the terms of this Declaration or other restrictions and regulations
contained in the Bylaws of the Master Association or which may be adopted pursuant thereto, shall be grounds for relief,
including without limitation, an action to recover sums due for damages, injunctive relief, foreclosure of lien, or any
combination thereof. The Master Association shall have the right to request that law enforcement, public safety and
animal control officers come on the Properties to facilitate the enforcement of the laws, codes and ordinances of any
governmental authority.
19

Book 8060 Page 569
(b) The Master Association, after notice to the Owner and a reasonable opportunity to be heard, shall have
the right to assess reasonable fines against an Owner for violations of this Declaration, the Bylaws of the Master
Association or the Master Associations' published rules and regulations by such Owner, or such Owners family, guests,
invitees and lessees in an amount not to exceed $150.00 for each violation, and without further hearing, for each day after
the decision that the violation occurs. Such fines shall be deemed to be assessments as set forth in Article IV of the
Declaration and if not paid within thirty (30) days after notice and demand therefore, the Master Association shall be
entitled to the remedies set forth in the Declaration for the enforcement and collection of delinquent assessments.
(c) The Master Association, after notice to the Owner and a reasonable opportunity to be heard, shall have
the right to suspend privileges or services provided by the Master Association (except rights of access to Lots) for
reasonable periods of violations of this Declaration or the Bylaws, Articles or rules and regulations of the Master
Association. If it is decided that a suspension of privileges or services provided by the Master Association should be
imposed, the suspension may be continued without further hearing until the violation is cured.
(d) If an Owner is legally responsible for damage inflicted on any Common Elements, the Master
Association may direct such Owner to repair such damage, or the Master Association may itself cause the repairs to be
made and recover damages from the responsible Owner. If damage is inflicted on any Lot by an agent of the Master
Association in the scope of the agents activities as such agent, the Master Association is liable to repair such damage or
to reimburse the Owner for the cost of repairing such damages. The Master Association shall also be liable for any losses
to the Owner. When any such claim for damages against an Owner or the Master Association is less than or equal to the
jurisdictional amount established for small claims by North Carolina General Statutes Section 7A-210, any aggrieved
party may request that a hearing be held before an adjudicatory panel appointed by the Executive Board of the Master
Association to determine if an Owner is responsible for damages to any Common Elements or the Master Association is
responsible for damages to any Lot. If the Executive Board fails to appoint an adjudicatory panel to hear such matters,
such hearings shall be held before the Executive Board. Such panel shall accord to the party charged with causing
damages notice of the charge, opportunity to be heard and to present evidence, and notice of the decision. This panel
may assess liability for each damage incident against each Owner charged or against the Master Association not in excess
of thejurisdictional amount established for small claims by North Carolina General Statutes Section 7A-210. When such
claim exceeds the jurisdictional amount established for small claims by North Carolina General Statutes Section 7A-210,
liability of any Owner charged or the Master Association shall be determined as otherwise provided by law and shall be
assessments secured by lien under Section 4717-3-116 of the Planned Community Act. Liabilities of the Master
Association determined by adjudicatory hearing or as otherwise provided by law may be offset by the Owner against
sums owing to the Master Association and if so offset, shall reduce the amount of any lien of the Master Association
against the Lot at issue.
(e) In any proceeding arising because of an alleged default by an Owner, the Master Association, if
successful, shall be entitled to recover the costs of the proceedings and such reasonable attorneys' fees as may be
determined by the Court.
(t) The failure of the Master Association or any Owner to enforce any right, provision, covenant or
condition which may be granted by this Declaration or the other above mentioned documents shall not constitute a waiver
of the right of the Master Association or of the Owner to enforce such right, provision, covenant or condition in the
future.
(g) All rights, remedies and privileges granted to the Master Association or the Owners, pursuant to any
terms, provisions, covenants or conditions of the Declaration or other above mentioned documents, shall be deemed to be
cumulative, and the exercise of any one or more shall not be deemed to constitute an election of remedies, nor shall it
preclude the party thus exercising the same from exercising such other and additional rights, remedies or privileges as
may be available to such party at law or in equity.
(h) The failure of Declarant to enforce any right, privilege, covenant or condition which may be granted to
it by this Declaration or other above mentioned document shall not constitute a waiver of the right of Declarant to
thereafter enforce such right, provision, covenant or condition in the future.
20

Book 8060 Page 570
SECTION 2. SEVERABILITY. Invalidation of any one of the covenants or restrictions by judgment or court
order shall in no way affect any other provision which shall remain in full force and effect.
SECTION 3. AMENDMENT. The covenants and restrictions of this Declaration shall run and bind the land
for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically
extended for successive periods often (10) years unless terminated or amended as hereinafter provided. This Declaration
may be amended with the consent of the Owners entitled to cast at least eighty percent (80%) of the votes of the Master
Association and may be terminated with the consent of the Owners entitled to cast at least eighty percent (80%) of the
votes of the Master Association; provided, however, this Declaration may not be amended or terminated without
Declarant's consent during Declarant's Development Period, no amendment purporting to revoke or curtail any right
herein conferred to Declarant shall be effective unless executed by Declarant, and no amendment relating to the
maintenance or ownership of any permanent detention or retention pond shall be effective unless reviewed and approved
by the governmental office having jurisdiction for watershed protection. Any amendment must: (1) be executed on
behalf of the Master Association by its duly authorized officers; (2) contain an attestation by the officers executing the
amendment on behalf of the Master Association that the requisite Owner approval has been obtained and is evidenced by
written acknowledgment(s) signed by the Owners approving the amendment and made a part of the Minute Book of the
Master Association; and (3) be properly recorded in the Office of the Register of Deeds, Guilford County, North
Carolina. For the purpose of this section, additions to existing property by Declarant pursuant to Section 4 of this Article
shall not constitute an "amendment" In the event this Declaration is terminated in accordance with the provisions
hereinabove provided, Declarant, for each Lot owned within the Properties, hereby covenants, and each Owner for any
Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and
agree to pay a pro rata share of the cost of the maintenance of all permanent retention or detention ponds.
Notwithstanding any provision to the contrary, Declarant reserves the right and power, and each Owner by acceptance of
a deed to a Lot is deemed to and does give and grant to Declarant a power of attorney, which right and power is coupled
with an interest and runs with the title to a Lot and is irrevocable (except by Declarant) , without consent, approval or
signature of each Owner, to (i) amend the Declaration and all attachments, to the extent necessary to conform to the
requirements then governing the purchases or insurance of mortgages by The Mortgage Corporation, Federal National
Mortgages Association, Governmental National Mortgages Association, Federal Home Lone Mortgage Corporation,
Mortgage Guaranty Insurance Corporation, Department of Housing and Urban Development, the Federal Housing
Administration, the Veterans Administration, or any other similar agency or organization, (ii) induce any such agencies or
entities to make, purchase, sell, insure or guarantee first mortgages covering Master Association ownership, (iii) to
correct typographical errors, surveyor errors in descriptions or otherwise, or obvious factual errors or omissions, the
correction of which would not impair the interest of any Owner or Mortgagee, (iv) bring this Declaration into compliance
with the North Carolina Planned Community Act, (v) to amend any Exhibits, (vi) to exercise any development rights or
(vii) to amend this Declaration in any other manner that does not materially affect the use and enjoyment of an Owner's
Lot; and further provided that if there is an Owner other than Declarant, the Declaration shall not be amended to increase
the scope or the period of control of the Declarant. Each deed, mortgage, other evidence of obligation, or other
instrument affecting a Lot and the acceptance thereof shall be deemed to be a grant and acknowledgment of, and consent
to the reservation of, the power of Declarant to vote in favor of, make, execute and record any of the foregoing
amendments. The rights of Declarant under this Section shall terminate at such time as Declarant no longer holds or
controls title to a Lot and the right of Declarant to add the Additional Property has expired.
SECTION 4. ANNEXATION.
(a) Except as provided in Subsection (b) of this Section 4, additional Lots and Common Elements may be
annexed to the Properties only with the consent of the Members entitled to cast two-thirds (2/3) of the votes of the Master
Association who are voting in person or by proxy at a meeting duly called for such purpose; provided, however, during
the Period of Declarant Control, Declarant must also consent to such action.
(b) All or any portion of the Additional Property may be annexed by the Declarant without the consent of
Members within twenty five (25) years of the date of this instrument, provided that, in the event FHA or VA insured
loans have been obtained to purchase Lots, FHA and VA determine that the annexation is in accord with the general plan
from time to time approved by them. For the purpose of determining whether property is adjacent to the Properties, the
rights -of -way public roads and utilities, as well as rivers and streams, shall be deemed not to separate otherwise adjacent
property. Declarant shall have no obligation of any kind to annex any or all of the Additional Property and, should
21

Book 8060 Page 571
Declarant elect to annex all or any portion of the Additional Property, Declarant shall have no obligation of any kind to
annex the Additional Property in any particular sequential order. Should Declarant elect to annex all or any portion of
the Additional Property and accordingly to subject such property to the terms and conditions of this Declaration,
Declarant reserves the right, with regard to all or any part of the Additional Property annexed by Declarant, to make such
complementary additions and/or modification of the covenants and restrictions contained in this Declaration (including,
without limitation, those contained in Section 2 of Article VII hereof) as Declarant may deem necessary or convenient;
provided, however, such additions and/or modifications shall not modify this Declaration with respect to the Properties
previously subjected thereto, and, in the event FHA or VA insured loans have been obtained to purchase Lots, FHA and
VA determine that any such complimentary additions and/or modifications are in accord with the general plan from time
to time approved by them. With regard to any portion of the Additional Property not annexed by Declarant, Declarant
makes no representations with regard to the use of such property or the exterior appearance, design, size or intended
purpose of any improvements now or hereafter erected on such property.
SECTION 5. FHANA APPROVAL. During the Period of Declarant Control, the following actions will
require the prior approval of the Federal Housing Administration or the Department of Veterans Affairs provided that
FHA or VA loans have been obtained to purchase Lots: annexation of additional properties, dedication of Common
Elements and amendment ofthis Declaration of Covenants, Conditions, and Restrictions or the Articles of Incorporation
or the Bylaws of the Master Association.
SECTION 6. AMPLIFICATION. The Provisions of this Declaration are amplified by the Articles of
Incorporation and Bylaws of the Master Association; but no such amplification shall alter or amend any of the rights or
obligations of the Owners set forth in this Declaration. Declarant intends that the provisions of this Declaration on the
one hand, and the Articles of Incorporation and Bylaws of the Master Association on the other be interpreted, construed,
and applied to avoid inconsistencies or conflicting results. If such conflict necessarily results, however, Declarant intends
that the provisions of this Declaration control anything contained in the Articles of Incorporation or Bylaws of the Master
Association.
SECTION 7. CONSISTENCY WITH SECOND -TIER DECLARATIONS. Wherever the terms of this
Declaration and the terms of any Second -Tier Declaration shall apply regarding all or a portion of the Properties,
including, without limitation, the enforcement of restrictions contained in this Declaration or a Second -Tier Declaration
which have a similar purpose, the Executive Board of the Master Association shall reasonably cooperate with the
Executive Board of any such Second -Tier Association to ensure the purposes of this Declaration and any such Second -
Tier Declaration are served effectively and efficiently; provided, however, consistent with the terms of this Declaration,
the terms of the Master Declaration shall ultimately control.
SECTION 8. DECLARANT'S DISCRETION. Wherever the terms of this Declaration provide for the granting
or withholding of Declarant's consent to any action contemplated herein, or provide otherwise for the discretionary action
of Declarant, Declarant's discretion to grant or withhold consent or take or not take such action shall be sole and
absolute, subject to applicable law. The Master Association shall hold Declarant harmless from any claims or liabilities
arising against Declarant in its capacity as the declarant under this Declaration.
[Signature Page Follows]
22

Book 8060 Page 572
IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has caused this instrument to be
executed under seal in its name by its duly authorized office as of the 15 day of —rvn1E 20113.
KEYSTONE GROUP, INC.,
a North Carolina co r oration
By: (SEAL)
President
STATE OF NORTH CAROLINA
COUNTY OF GUILFORD
I, the undersigned, a Notary Public for said County and State, do hereby certify that W. SCOTT WALLACE
appeared before me this day and acknowledged that he President KEYSTONE GROUP, INC, 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 him/her as its President.
WITNESS my hand and notarial seal, this the IS day of -TvrJC 2010.
My Commission Expires:
Notan/Public
L TEMPLE WALLACE
NOTARY PUBLIC
GUILFORD COUNTY, NC
Commission Expires 1 2
23

Book 8060 Page 573
18►\ 111:3 Y:I_\
BEING ALL of Property as recorded in Deed Book 7778, Pages 981-983 and Deed Book 7895, Pages 252-260 in
the Office of the Register of Deeds of Guilford County, North Carolina.
24

Book 8136 Page 601
Zl:
BK: R 8136
PG:601-602 2019013884 _..._._..
RECORDED'. NC FEE $26 00
03-19-2019 GUILFORD COUNTY, NC
01:34:03 PM JEFF L. THIGPEN
BY: ERIC P GERRINGER REGISTEROFDEEOS
DEPUTY GB
Mail to: Keystone Group, Inc., 3708 Alliance Dave, Greensboro, NC 27407
NORTH CAROLINA FIRST AMENDMENT TO DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS
GUILFORD COUNTY FOR NORTHBOROUGH DEVELOPMENT
This Amendment to Declaration is made this 9 day of M4reli , 20 9 by NORTHBOROUGH
MASTER HOMEOWNERS ASSOCIATION, INC., a Not -For -Profit North Carolina Corporation having an
office in Guilford County, North Carolina, hereafter referred to as "Association", and KEYSTONE GROUP,
INC., allorth Carolina Corporation having an Office in Guilford County, North Carolina, hereinafter referred
to as both "Declarant' and "Lot Owners"
WITNESSETH:
WHEREAS, Declarant has caused to be filed a Declaration of Covenants, Condition and Restrictions
for NORTHBOROUGH DEVELOPMENT, in Book 8060, Page 550, Guilford County Registry (The
'Declaration"), which Declaration encompasses Northborough Phase 1 as shown on Plat recorded in Plat Book
197, Page 092; and
WHEREAS, the Declaration provides in Article X, Section 3, that the Declaration can be amended: (i)
by an instrument signed by the owners of lots entitled to cast at least 800/o of the Votes of the Association, (ii)
by the Declarant during the Declarant's Development Period, and (iii) executed by the Association; and
WHEREAS, the Declarant Development Period is currently ongoing; and
NOW, THEREFORE, Association, Lot Owners, and Declarant hereby amend the Declaration as
follows:
1. ARTICLE IV — COVENANT FOR MAINTENANCE AND ASSESSMENTS, is hereby
amended by removing the paragraph SECTION 12. WORKING CAPITAL ASSESSMENTS, and inserting in
lieu thereof the following:
"SECTION 12. WORKING CAPITAL ASSESSMENTS. In addition to the annual
assessments authorized above, at the time of the closing of the ]first sale of each lot to a purchaser
other than Declarant or its affiliate, the Purchaser shall pay to the Master Association an amount
equal to six -twelfths (6/12) of the then current annual assessments for such lot established by the
Master Association. Such funds shall be used by the Master Association to establish a Working
Capital Fund, the purpose of which is to help insure that the Master Association will have
sufficient monies available to meet its initial operational needs, unforeseen expenditures or long-
term capital improvements and repairs to the common elements; and the establishment and
maintenance of an escrow account for the maintenance and repair of stormwater management
facilities, as required in Section 6.2.11 D. 5 of the Operation and Maintenance Agreement for such
stormwater management facilities with the City of High Point. No such payments made into the
Working Capital Fund shall be considered advanced or current payments of regular assessments.

Book 8136 Page 602
All monies paid into the Working Capital Fund shall be held and administered by the Master
Association in accordance with the terms of the Declaration and the Bylaws of the Master
Association."
This Amendment shall be treated as an expansion of the land originally subjected to the Declaration.
Except as specifically modified and amended herein, the Declaration of Covenants, Conditions and
Restrictions for Northborough Development will remain in full force and effect.
The Association executes this Amendment pursuant to the requirement of Article X, Section 3 of the
Declaration, and attests, through the execution hereof by its authorized officer, that
(1) Owner and Declarant approval has been obtained as evidenced by their execution of this
Amendment; and
(2) That approval of this Amendment has been authorized by the Board of Directors of the
Association, and such authorization properly appears in the minute book of the Association.
IN WITNESS WHEREOF, the undersigned Association, Lots Owner, and Declarant has caused this
instrument to be executed as of the day and year first above -written.
KEYST�C UP, INC, a North Carolina Corporation, as Lot Owners and Declarant
By:
President
NORTHBOROUGH MASTER HOMEOWNERS ASSOCIATION, a North Carolina Corporation
By:
President
STATE OF NORTH CAROLINA - COUNTY OF GUILFORD
I, the undersigned, a Notary Public of said County and State, do hereby certify that W. Scott
Wallace, personally appeared before me this day and acknowledged that he is President of
KEYSTONE GROUP, INC., a North Carolina Corporation, and that by authority duly given and as an act of
the corporation, the foregoing instrument was signed in its name by him as its President.
Witness my hand and official seal, this the 11 day of M4 rc h 201 .
My Commission Expires: L TEMPLE WALLACE
NOTARY PUBLIC
GUILFORD COUNTY, NC Nota ubhc:
Commisslonbplres
STATE OF NORTH CAROLINA - COUNTY OF GUILFORD
I, the undersigned, a Notary Public of said County and State, do hereby certify that W. Scott
Wallace, personally appeared before me this day and acknowledged that he is President of
NORTHBOROUGH MASTER HOMEOWNERS ASSOCIATION, a North Carolina Corporation, and that by
authority duly given and as an act of the corporation, the foregoing instrument was signed in its name by him
as its President.
Witness my hand and official seal, this the 1_ day of (Mara(
My Commission Expires: L TEMPLE WALLACE
Z Z NOTARY PUBLIC
GUILFORD COUNTY, NC vot;Ji
Commisslon E)pires