WQ0041867_Owner (Name Change)_20220207

°°o
❑ MERRICK'
❑❑❑
TRANSMITTAL
To: NCDEQ— DWR Date: 2/4/2022
Water Quality Permitting Section PERCS Unit Document: Sewer System Permit Ownership
512 N. Salisbury Street Reference: Redwood Rookery at the Vineyards
Suite 925 Job#: WQ0041867
Raleigh, NC 27604 Sent Via: FedEx
[phone]
•
ATTACHMENTS
Quantity Description
2 Original signed application packages
RECEIVED
FEB 0 7 2022 .
NCDECYDWR NPDES
REMARKS
Attached is the package for sewer system permit ownership/name change for Redwood Rookery at the Vineyards,
W00041867. If you have any questions, please feel free to call me 704-612-0702 or send an email to
[e-mail]. Thank you.
Respectfully submitted,
Merrick & Company Received by
By: t C:20A die
Justin A cDonald, El — vil Engineer II
Date: Time:
Merrick & Company—Charlotte
301 S. McDowell Street, Suite 300
Charlotte, NC 28204
[phone]
J

SEWER SYSTEM PERMIT OWNERSHIP/
NAME CHANGE
REDWOOD ROOKERY AT THE VINEYARDS
RECEIVED
FEB 07 2022
NCDEQ/DWR/NPDES
SECTION A: FORM PNOCF 01 -16
PROCEEDS TO THE NEXT PAGE

State of North Carolina
Department of Environmental Quality
Division of Water Resources
SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
Division of Water Resources INSTRUCTIONS FOR FORM: PNOCF 01-16
This form is for ownership changes or name changes of a sewer system permit. Please note that"Permittee"references the
existing permit holder,and that"Applicant"references the entity applying for the ownership/name change.
Sewer permits start with a WQ or WQCS and contain the terms sewer extension or collection system in the subject field. This
form should not be used for permits with NC,NCG,SW or other types of non-sewer permits beginning with WQ.
For more information, visit the Division's Water Quality Permitting's website:
A. Sewer System Permit Ownership/Name Change(FORM:PNOCF 01-16)Application(All Applications):
® Submit an original completed and appropriately executed application(PNOCF 01-16).
® The Existing Permittee's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T
.0106(c), an alternate person may be designated as the signing official if a delegation letter is provided from a person who
meets the criteria in 15A NCAC 02T.0106(b).
® The Applicant's Certification shall be signed in accordance with 15A NCAC 02T.0106(b). Per 15A NCAC 02T.0106(c),an
alternate person may be designated as the signing official if a delegation letter is provided from a person who meets the criteria
in 15A NCAC 02T.0106(b).
B. Existing Permit(All Applications):
® Submit a copy of the most recently issued permit and certification.
C. Property Ownership Documentation(All Applications):
➢ The Applicant shall demonstrate they are the owner of all property containing the sewer system facilities:
® Legal documentation of ownership(i.e.,GIS,deed,article of incorporation,or contract),or
O Written notarized intent to purchase agreement signed by both parties with a plat or survey map,or
O Approved board minutes
D. Certificate of Public Convenience and Necessity(All Applications where the Applicant is a Privately-Owned Public Utility):
O Per 15A NCAC 02T .0115(a)(1), provide one copy of the Certificate of Public Convenience and Necessity from the North
Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise for the area to be served
by the non-discharge system.
E. Operational Agreements (Applications where the Applicant is a Home/Property Owners'Association or Developer of lots to be
sold):
➢ Home/Property Owners'Associations
® Per 15A NCAC 02T.0115(c),submit an original properly executed Operational Agreement(FORM:HOA).
® Per 15A NCAC 02T .0115(c), submit an original proposed or approved Articles of Incorporation,Declarations and By-
laws that contain the language required by the Operational Agreement.
➢ Developers of lots to be sold
❑ Per 15A NCAC 02T.0115(b),submit an original of the properly executed Operational Agreement(FORM:DEV).
F. Package Submitted in Duplicate
® Submit a copy of all required documents in Instructions A-E as required
THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED IN DUPLICATE
TO:
NCDEQ-DWR
Water Quality Permitting Section
PERCS Unit
By U.S.Postal Service: By Courier/Special Delivery:
1617 MAIL SERVICE CENTER 512 N.SALISBURY ST.
RALEIGH,NORTH CAROLINA 27699-1636 SUITE 925
RALEIGH,NORTH CAROLINA 27604
TELEPHONE NUMBER: [phone]
INSTRUCTIONS FOR APPLICATION PNOCF 01-16 Page 1 of 1

State of North Carolina
Department of Environmental Quality
DW R Division of Water Resources
SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
Division of Water Resources INSTRUCTIONS FOR FORM: PNOCF 01-16
I. EXISTING PERMITTEE INFORMATION:
1. Permittee's name:Brookline Homes,LLC
2. Signature authority's name:Andrea Dirkschneider per 15A NCAC 02T.0106(b)
3. Signature authority's title:Vice President
4. Permittee's mailing address:425 E.Catawba Street
City:Belmont State:NC Zip:28012-
5. Permittee's contact information: Phone number: [phone] Fax Number( )_-
Email Address: a.dirk@,mybrooklinehome.com
II. APPLICANT INFORMATION:
1. Applicant's name:Redwood Rookery Townhome Association,Inc.
2. Signature authority's name:Andrea Dirkschneider per 15A NCAC 02T.0106(b)
3. Signature authority's title: Declarant
4. Applicant's mailing address:425 E.Catawba Street
City:Belmont State:NC Zip:28012-
5. Applicant's contact information: Phone number:[phone] Fax Number( ) -
Email Address: a.dirk(a,mybrooklinehome.com
6. Representative's name: Andrea Dirkschneider
7. Representative's title: Declarant
8. Representative's contact information Phone number:[phone] Fax Number( ) -
Email Address: a.dirkamybrooklinehome.com
III. PERMIT INFORMATION:
1. Existing permit number:W00041867 and most recent issuance date:August 11,2020
2. Reason for the permit application:Change of Ownership If other, attach detailed explanation
3. Has the facility been constructed? ®Yes or❑No
4. Has the facility been certified per 15A NCAC 02T.0116? ®Yes or❑No
FORM:PNOCF 01-16 Page 1 of 2

IV. CERTIFICATIONS:
Existing Permittee's Certification per 15A NCAC 02T.0106(b :
I, a .CI--DYWZCii P attest that this application
(Signature Authority's name&title from Application Item I.2&3)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that prior to reissuance of the permit
into the Applicant's name,I will continue to be responsible for compliance with the current permit and any discharge of wastewater
from this system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I will also make no claim against the Division of Water Resources should a condition of the existing permit
be violated. I also understand that if all required parts of this application are note completed and that if all required supporting
information and attachments are not included,this application will be returned to me as incomplete.
NOTE—In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation,or certification in any application package shall be guilty of a Class 2 misdemeanor,which may include a fine not to
exceed$10,000 as well as ' ' enalties p to$25,000 per violation. 7�( l
Signature Date: Z1✓I2bLZ-'
Applicant's Certification per 15A NCAC 02T.0106(b):
I, F)i 1 Q( z( } ► 2_ t attest that this application
(Signature Authority's name&title from Application Item II.2&3.)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that after issuance of the permit into
the Applicant's name, I will be responsible for compliance with the issued permit and any discharge of wastewater from this non-
discharge system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I will make no claim against the Division of Water Resources should a condition of this permit be violated.
I also understand that if all required parts of this application package are not completed and that if all required supporting information
and attachments are not included,this application package will be returned to me as incomplete.
NOTE—In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or certification in any application package shall be guilty of a Class 2 misdemeanor,which may include a fine not to
exceed$10,000 s well as civ enalti up to$25,000 per violation.Signature: Date:2 43 2_C)??
FORM:PNOCF 01-16 Page 2 of 2

SEWER SYSTEM PERMIT OWNERSHIP/
NAME CHANGE
REDWOOD ROOKERY AT THE VINEYARDS
SECTION B : EXISTING PERMIT
PROCEEDS TO THE NEXT PAGE

FAST TRACK SEWER ENGINEERING CERTIFICATION FtECEIVEDINCDEQJDWR
8 2021
PERMITTEE: Brookline Homes, LLC
PERMIT#: WQ0041867 WQROS
PROJECT: Redwood Rookery at the Vineyards MOORESVILLE REGIONAL OFFICE
ISSUE DATE: August 11, 2020
This project shall not be considered complete nor allowed to operate in accordance with Condition 7 of
this permit until the Division has received this Certification and all required supporting documentation.
It should be submitted in a manner that documents the Division's receipt. Send the required
documentation the Regional Supervisor, Water Quality Regional Operations Section at the address at
the bottom.
Any wastewater flow made tributary to the wastewater collection system extension prior to completion
of this Certification shall be considered a violation of the permit and shall subject the Permittee to
appropriate enforcement actions. The Permittee is responsible for tracking all partial certifications up
until a final certification is received. A Final Certification shall be a complete set of record drawings and
design calculations regardless of whether partials have been submitted.
PERMITTEE'S CERTIFICATION
I, the undersigned agent for the Permittee, hereby state that this project has been constructed pursuant
to the applicable standards & requirements, the Professional Engineer below has provided applicable
design/construction information to the Permittee, and the Permittee is prepared to operate & maintain
the wastewater collection system permitted herein •r portions thereof.
-Andi Dirkschneider, Vice Presiders /i A.`� \ \ J23 Jzoa \
Printed Name,Title Signature Date
ENGINEER'S CERTIFICATION
I, Robert E. Tripp, IV, PE , as a duly registered Professional En ineer in the State of North Carolina,
having been authorized to observe (n periodically, [1 weekly, [1 full time) the construction of the
project name and location as referenced above for the above Permittee hereby state that,to the best of
my abilities, due care and diligence was used in the observation of the following construction:
285 linear feet of 6-inch gravity sewer and 1,692 linear feet of 8-inch gravity sewer; such that the
construction was observed to be built within substantial compliance of this permit; 15A NCAC 02T; the
Division of Water Resources' (Division) Gravity Sewer Minimum Design Criteria adopted February 12,
1996,as applicable;the Division's Minimum Design Criteria for the Fast-Track Permitting of Pump Stations
and Force Mains adopted June 1, 2000, as applicable; and other supporting materials.
0eo�o I��n..a
North Carolina Professional Engineer's Seal w/signature &date: �°�`
n Final Partial (include description)
23505
Certification Comments/Qualifiers (attach if necessary): • �? I
NC DWR-Water Quality Regional Operations Section 610 East Center Avenue, Suite 301, Mooresville, NC 28115
Mooresville Regional Office Phone: [phone] FAX: [phone]

CERTIFICATION CHECKLIST
To be completed by the certifying engineer prior to operation of the permitted sewers, per 15A NCAC 02T.0116.
RECEIVED/NCDEQ/DWR
Certifying Engineer: Robert E. Tripp, IV, PE
Certification Review Date: 11/21/2021 U` C 13 2021
Project Name: Redwood Rookery at the Vineyards WOROS
MOOr►tSv►LLE REGIONAL OFFICE
wQoo 41867 Project County: Mecklenburg
1) Has permittee information changed since the permit was issued (or last modified): change of mailing address,
change of ownership,transfer from developer to HOA/POA, etc. ❑ Yes (3(1 No
• If yes, please provide either a change of ownership form or new contact information. Note that transfer of
permits from the developer to the HOA/POA must occur with the first certification.
2) Have the as-built drawings have been signed,sealed, and dated by an N.C. PE? IXI Yes No
3) Final Engineering certification? [X} Yes n No
• If Partial Engineering certification, provide detailed narrative including what is being certified in the current
phase,what was previously certified (if applicable), and what is left to be certified.
4) Adequate information related to sewer lines: IXI Yes No N/A
• Three feet minimum cover has been provided for all sewers unless ferrous pipe was installed.
• Minimum diameters for gravity sewers are 8-inches for public lines and 6-inches for private lines.
• Manholes have been installed: At the end of each line, at all changes in grade, size, or alignment, at all
intersections, and at distances not greater than 425 feet; minimum diameter shall be 4 feet (48-inches).
5) Adequate information related to pump stations: I I Yes n No n N/A
• Ensure power reliability option was selected per 15A NCAC 02T.0305(h).
6) Was project construction completed in accordance with all of the following: Ni Yes (1 No N/A
• 15A NCAC 02T, Minimum Design Criteria (MDC) for the permitting of Gravity Sewers (latest version), and MDC
for the Permitting of Pump Stations and Force Mains (latest version)?
If not, a variance approval is required in accordance with 15A NCAC 02T.0105(b), prior to certification and operation.
• Contact the Central Office to discuss the variance to determine a course of action.
• Applicant must submit two copies of the variance request form, plans,specifications,calculations, and any other
pertinent information to the Central Office (one hard copy, one digital copy).
• The central office will review the variance request, and if approvable, specific language regarding the variance
will be incorporated into the permit, either via a special condition or a supplementary letter.A copy of the
reissued permit with variance language or the variance letter must be maintained with the original documents.
7) Does the project contain high priority lines (15A NCAC 02T.0402(2))? I I Yes n No
• If yes, ensure that the permit already contains the necessary condition related to high priority lines 15A NCAC
02T.0403 (a)(5). If the permit does not include this language,the Fast Track reviewer will reissue the permit with
the appropriate language.
8) Are Permit modifications required for any changes resulting in non-compliance with this permit(including but not
limited to pipe length changes of 10%or greater,change in flow,pump station design capacity design change of 5%or
greater, and/or change in the number/type of connections)? n Yes I X] No
• If yes, a permit modification request must be submitted to the appropriate Regional Office, and a modified
permit with revised certification must be issued prior to certification and operation.
NC DWR—Water Quality Regional Operations Section 610 East Center Avenue,Suite 301, Mooresville, NC 28115
Mooresville Regional Office Phone: [phone] FAX: [phone]

SEWER SYSTEM PERMIT OWNERSHIP/
NAME CHANGE
REDWOOD ROOKERY AT THE VINEYARDS
SECTION C : PROPERTY OWNERSHIP
DOCUMENTATION
COPY OF THE DECLARATION
PROCEEDS TO THE NEXT PAGE

vvvv .v - I yr
*'
For Registration
Fredrick Smith
Register of Deeds
Mecklenburg County, NC
Electronically Recorded
2021 May 03 12:02 PM RE Excise Tax: $ 0.00
Book: 36016 Page: 32 - 74 Fee: $ 138.00
Instrument Number: 2021087397
jaj:sk,
Prepared By and Return To: Michael R. Ganley,Attorney,Bagwell Holt Smith P.A.
111 Cloister Court,Ste.200,Chapel Hill,NC 27514
Declarant's Address: 425 E.Catawba Street,Belmont,NC 28012
DECLARATION OF CREATION OF
REDWOOD ROOKERY TOWNHOMES,
A NORTH CAROLINA PLANNED COMMUNITY
This Declaration of Creation of Redwood Rookery Townhomes (the "Declaration") is made
A-P{2.11. '5 , 2021, by BROOKLINE HOMES, LLC, a North Carolina limited liability
company,hereinafter referred to as "Declarant." Declarant states and declares as follows:
A. Declarant is the owner of that tract of land located in Mecklenburg County, North
Carolina, and described in Exhibit A attached hereto and incorporated herein ("the Townhome
Property"). The Townhome Property is a portion of that planned community known as "Vineyards on
Lake Wylie"("the Master Community").
B. D.R. Horton, Inc. ("Horton"), a Delaware corporation, previously caused to be recorded
at Book 23615 Page 516 of the Mecklenburg County Registry a Declaration of Creation of Vineyards on
Lake Wylie, a North Carolina Planned Community (as amended and supplemented, "the Master
Declaration"),the terms and provisions of which apply to the Townhome Property.
C. Section 11.9 of the Master Declaration provides that the Declarant of the Master
Declaration, acting in its sole and absolute discretion, shall have the right during the Declarant Control
Period to establish separately developed residential Neighborhoods within the Master Community,
designate Limited Common Area for the exclusive use of these Neighborhoods, and subject every lot
situated within a designated Neighborhood to additional covenants, conditions, restrictions and
assessments in a Supplemental Declaration.
D. Declarant intends to subdivide the Townhome Property into residential Townhome Lots,
Townhome Common Areas exclusively serving the Townhome Lots, and public rights-of-way, and to
establish the Townhome Property as a separately developed residential Neighborhood and planned
communitywithin the Master Communityto be known as Redwood RookeryTownhomes ("the
Townhome Community"), designate the Townhome Common Areas within the Townhome Property as
gpe y
Limited Common Areas for the exclusive use of the Townhome Lots, and impose on the Townhome
Property additional covenants, conditions and restrictions toprotect and to promote the beneficial
ownership, use and enjoyment of all Townhome Lots located within the Townhome Community, the
terms of which shall supplement the covenants,conditions and restrictions of the Master Declaration.
Submitted electronically by "Bagwell Holt Smith P.A."
in compliance with North Carolina statutes governing recordable documents
and the terms of the submitter agreement with the Mecklenburg County Register of Deeds.

E. Horton, as Declarant under the Master Declaration, hereby consents to this Declaration
pursuant to Section 11.9 of the Master Declaration.
THEREFORE, pursuant to Chapter 47F of the North Carolina General Statutes ("the Planned Community
Act"), Declarant hereby executes this Declaration to create Redwood Rookery Townhomes, a North
Carolina planned Community, and declares that henceforth all of the Townhome Property shall be
designated as a separately developed residential Neighborhood within the Master Community, all of the
Townhome Common Areas located within the Townhome Property shall be designated as Limited
Common Areas for the exclusive use of the Townhome Lots, and all of the Townhome Property shall be
held and owned subject to the following terms, provisions, covenants, conditions and restrictions, which
shall run with the Townhome Property and which shall be binding upon all owners of any portion of the
Townhome Property and their lessees, guests, mortgagees, heirs, executors, administrators, successors
and assigns. This Declaration shall constitute a Supplemental Declaration to the Master Declaration
pursuant to the Section 11.9 of the Master Declaration.
Article I. Application of the North Carolina Planned Community Act.
The terms and provisions of Chapter 47F of the North Carolina General Statutes, as the same
shall be amended from time to time,shall apply to the Townhome Community.
Article II. Definitions.
The definitions set forth in N.C.G.S. § 47F-1-103 shall apply to this Declaration and are
incorporated herein, except that the terms listed below shall have the specific meanings stated:
"Articles of Incorporation" shall mean the Articles of Incorporation for Redwood Rookery
Townhome Association, Inc.,a North Carolina nonprofit corporation.
"Base Assessment" shall mean the assessment levied on all Townhome Lots subject to
assessment under Article IX below to fund common expenses, as determined in accordance with Article
IX below.
"Board of Directors" or "Board" shall mean the executive board of the Townhome Association,
as defined by the Planned Community Act and as created by the Bylaws.
"Bylaws"shall mean the bylaws of the Townhome Association as they now or hereafter exist and
as they may be amended from time to time.
"Declarant" shall mean Brookline Homes, LLC, a North Carolina limited liability company, or
any successor or assign designated as Declarant in a Recorded Document executed by the immediately
preceding Declarant.
"Declarant Control Period" shall mean the period of time during which Declarant holds a fee
interest or contractual right in any portion, however small, of the land described in Exhibit A attached
hereto and incorporated herein.

v
"Declaration" shall mean this Declaration of Creation of Redwood Rookery Townhomes, a North
Carolina planned Community, and any amendments hereto or restatements hereof.
"Governing Documents" shall mean, collectively, the Master Declaration, this Declaration, the
Articles of Incorporation, the Bylaws, and the Rules and Regulations, as the same may be amended from
time to time.
"Master Association" shall mean Vineyards on Lake Wylie Homeowners Association, a North
Carolina non-profit corporation, its successors and assigns.
"Master Declaration" shall mean the Declaration of Creation of Vineyards on Lake Wylie, a
North Carolina planned Community, recorded in Book 23615 at Page 516, Mecklenburg County Register
of Deeds, and all amendments and supplements thereto. In the event of any conflict between the Master
Declaration and this Declaration or other Governing Documents, the terms of the Master Declaration shall
control.
"Master Plan" shall mean the master land-use plan for the development of the Townhome
Community approved by Mecklenburg County.
"Member" shall mean and refer to every person or entity entitled to membership in the
Townhome Association as provided in Article III below.
"Mortgage"shall mean a deed of trust recorded at the Mecklenburg County Registry that is a lien
against any Lot. "Mortgagee" shall refer to a beneficiary or holder of a Mortgage. A "First Mortgage"
shall be a Mortgage having priority over all other Mortgages encumbering a Lot. "First Mortgagee"shall
refer to a beneficiary or holder of a First Mortgage.
"Owner" shall mean and refer to an owner of record of a fee simple interest in any Townhome
Lot, including contract sellers, but excluding those having an interest only as security for the performance
of an obligation. There may be more than one Owner of any single Townhome Lot.
"Recorded Document" shall mean any document, including any map or plat of survey, recorded
at the Office of the Register of Deeds of Mecklenburg County,North Carolina.
"Rules & Regulations" shall mean the initial rules and regulations for use and occupancy of the
Townhome Lots and the Townhome Common Area set forth in Exhibit B, as they may be supplemented,
modified,restated or superseded pursuant to Article IV below.
"Special Assessments"shall mean assessments levied in accordance with Section 9.2 below.
"Specific Assessments"shall mean assessments levied in accordance with Section 9.3 below.
"Townhome Association" shall mean Redwood Rookery Townhome Association, Inc., a North
Carolina non-profit corporation, its successors and assigns.
"Townhome Building"shall mean any building comprised of residences located upon Townhome
Lots.
"Townhome Common Area" shall mean all property, and any improvements thereon, wherever
located,owned or leased by the Townhome Association or subjected to an easement or license in favor of
the Townhome Association for the common use and enjoyment of Members. Townhome Common Area
3

vvvv I v - vv
shall include all water and sewer lines serving more than one Townhome Lot and located outside any
public rights-of-way or utility easements. Townhome Common Area shall include any drainage
easements, stormwater pipes, detention and retention facilities serving more than one Townhome Lot and
not accepted by any governmental authority for maintenance.
"Townhome Community-Wide Standard" shall mean the standard of conduct, maintenance, or
other activity generally prevailing in the Townhome Community or the minimum standards established
pursuant to the architectural guidelines under the Master Declaration, Rules and Regulations, and Board
resolutions,whichever is the higher standard. Declarant shall initially establish such standard, which may
involve both objective and subjective elements. The Townhome Community-Wide Standard shall evolve
as the Townhome Community evolves.
"Townhome Lot" shall mean any separate parcel of land within the Townhome Community
designated for construction and maintenance of a townhome residence and designated for separate
ownership or occupancy and residential use.
"Townhome Limited Common Area" shall mean a portion of the Townhome Common Area
reserved for the exclusive use of one or more,but less than all,of the Townhome Lots.
Article III. Redwood Rookery Townhome Association,Inc.
Every person or entity who is an owner of a fee or undivided fee simple interest in any of the
Townhome Lots shall be a Member of the Townhome Association. Ownership of such interest shall be
the sole qualification for membership, and membership shall be appurtenant to and shall not be separated
from such ownership. The Townhome Association shall be organized and governed as follows:
3.1. Purposes. The purposes of the Townhome Association shall be:
a. To maintain and preserve all Townhome Common Areas, and all roads, streets,
decorative and protective structures (including but not limited to entry monuments and buffer walls),
ponds,lakes,utilities,landscaped areas and other improvements located thereon, if any;
b. To enforce the provisions of the Governing Documents;
c. To perform all duties and functions allotted to owner's associations pursuant to Article 3
of the Planned Community Act;
d. To promote and to protect the enjoyment and beneficial use and ownership of the
Townhome Lots; and
e. To promulgate and enforce the Rules and Regulations and administrative rules and
regulations for use of the Townhome Common Area.
3.2. Powers and Responsibilities. The Townhome Association shall have all powers and
responsibilities and shall perform all duties and functions allotted to owner's associations by Article 3 of
the Planned Community Act, the terms and provisions of which are incorporated herein. The Townhome
Association shall also have all rights and powers and shall perform all duties and functions that may be
assigned to it by Declarant pursuant to this Declaration.

vv%I v - vv
3.3. Voting Rights and Meetings. On matters of Townhome Association business submitted to vote
of the membership, there shall be two classes of membership:
Class A. Every person who is an Owner, with the exception of Declarant, shall be a Class A
Member. Class A Members shall be entitled to one (1) vote per Townhome Lot. No more than one vote
per Townhome Lot may be cast by Class A Members, regardless of the number of Owners of a given
Townhome Lot.
Class B. Declarant shall be the sole Class B Member. Class B membership shall be a full
voting membership and, during its existence, the Class B Member shall be entitled to vote on all matters
or issues before or considered by the Townhome Association. The Class B Member shall be entitled to
one (1) vote for each Townhome Lot it owns, plus one (1) vote for each Townhome Lot owned by a
Person other than Declarant. The Class B membership shall cease and shall be converted to Class A
membership at such time as the first of the following events occur: (i) the date that all the Townhome
Lots in the Townhome Community have been conveyed by Declarant to other Owners; (ii) the surrender
by Declarant of the right to appoint or remove any officer of the Townhome Association or member of the
Board by a Recorded Document executed by Declarant; or (iii) the expiration of Declarant's rights to
appoint or remove any officer of the Townhome Association or member of the Board pursuant to Article
XI below.
Unless otherwise provided herein or in the Planned Community Act or the Bylaws, all voting
matters shall be decided by a simple majority vote. Requirements for a quorum shall be as provided by
the Bylaws. The Members shall meet as provided by the Bylaws.
3.4 Bylaws. The initial Board shall enact and adopt all and any Bylaws that they deem necessary for
the operation of the Townhome Association, which Bylaws shall be binding upon all Members, their
Mortgagees,lessees,agents and invitees.
Article IV. Use and Occupancy of Townhome Lots and Townhome Common Areas.
4.1. Fundamental Restriction on Use.
The Townhome Lots and Townhome Common Area shall be used for residential and related
purposes only, subject to and consistent with the Governing Documents, including the Rules and
Regulations; provided that Declarant and/or the Townhome Association may maintain a business or
management office within the Townhome Community,and provided that Declarant and/or any brokers or
builders approved by Declarant may maintain information centers, model homes and sales offices within
the Townhome Community. Notwithstanding the above, home business use ancillary to the primary
residential use of a Townhome Lot is permitted, subject to the Rules and Regulations and all applicable
laws and ordinances of governmental authorities.
11.2. Fundamental Restriction on Occupancy.
All occupants of a single Townhome Lot shall be members of a single housekeeping unit. For
purposes of this Declaration, a single housekeeping unit is defined as one person or two or more
individuals living together sharing household responsibilities and activities which may included, sharing
5

expenses, chores eating evening meals together and participating in recreational activities and having
close social, economic and psychological commitments to each other. The number of occupants on each
Townhome Lot shall also be reasonably limited by the Townhome Lot's size and facilities, by a policy
against disproportionate use of the Townhome Common Areas, and by local, state or federal restrictions
regarding the maximum number of occupants permitted to occupy a dwelling.
11.3. Additional Restrictions on Use and Occupancy of Townhome Lots.
Use and occupancy of all Townhome Lots shall be restricted as provided in the Master
Declaration and as follows:
4.3.1 Completion of Construction. Once construction of any structure located within the
Townhome Community is begun, it must be prosecuted diligently and must be completed within twelve
months of its commencement,unless otherwise approved in writing by Declarant.
4.3.2 Subdivision of Lots. No dwelling shall be erected on less than one Townhome Lot and
no Townhome Lot shall be subdivided; however, owners of adjoining Townhome Lots may adjust a
common boundary line, provided that the adjustment conforms in all respects with all applicable
governmental regulations and ordinances,and with this Declaration.
4.3.3 Signs. No commercial signs of any kind shall be displayed to public view on any
Townhome Lot. This provision shall not apply to marketing or informational signs placed on any
Townhome Lot by Declarant. This provision shall not apply to signs used to advertise a Townhome Lot
for sale or rent, provided that no such sign shall be larger than 18" x 24". Placement and display of
political signs on any Townhome Lot shall be subject to the Rules and Regulations.
4.3.4 Refuse Storage. All trash, garbage and refuse stored outside of a dwelling shall be
stored in a solidly screened, enclosed, covered receptacle out of view from any street or any other
Townhome Lot.
4.3.5 Storage of Building Materials. No lumber, brick, stone, cinder block, concrete block,
cement or other materials used for building purposes shall be stored upon any Townhome Lot longer than
a reasonable time for the completion of the construction in which they are to be used.
4.3.6 Temporary Structures. No temporary structures such as sheds shall be erected or placed
on a Townhome Lot without the written approval of Declarant or the Townhome Association. Such
structures, if permitted, may be used only during periods of construction,and never as a residence.
4.3.7 Parking_and Vehicle Storage. Only licensed and operative vehicles, classified as
passenger cars, station wagons, passenger pick-up trucks or passenger vans may be regularly parked in
driveways. No vehicle will be permitted to park regularly on any roadway within the Townhome
Community. Recreational vehicles must be screened from view. No vehicle located on a Townhome Lot
may be used as a dwelling,even temporarily.
4.3.8 Offensive Activities Prohibited. No noxious or offensive activity shall be conducted
upon any Townhome Lot or Townhome Common Area, nor shall anything be conducted thereon tending
to cause embarrassment, discomfort, annoyance or nuisance to the neighborhood or to the occupants of
any Lot.
4.3.9 Underground Utilities. All utility lines serving structures located on Townhome Lots
shall be placed underground.

4.3.10 Mobile Homes and Manufactured Housing. No mobile home, trailer or manufactured
housing shall be located on any Townhome Lot.
4.3.11 Screening. Boats, boat trailers, jet skis or other watercraft, campers, satellite dishes,
antennae, clotheslines, pet enclosures and the like shall not be located on a Townhome Lot so as to be
visible from any roadway or any other Townhome Lot. Unless approved in advance in writing by
Declarant or the Townhome Association, no satellite dishes shall be located on a Townhome Lot so as to
be visible from any roadway or any other Townhome Lot.
4.3.12 Window Treatments. Owners shall not cause or permit any curtains, shades or other
window coverings to be hung inside or outside any windows or transparent doors which show any color
other than white or off-white on the outside.
11.4. Rules and Regulations
In addition to the restrictions stated above, which may be modified or rescinded only by an
amendment to this Declaration, use and occupancy of the Townhome Lots and Townhome Common Area
shall be subject to the Rules and Regulations, which are intended to govern day-to-day use and occupancy
of the Townhome Lots and Townhome Common Areas. The initial Rules and Regulations for the
Townhome Community are set forth in Exhibit B attached hereto and incorporated herein. In order to
adapt and respond to changing or unforeseen circumstances affecting the Townhome Community,
Declarant, the Townhome Association and the Owners must have the ability to change the Rules and
Regulations in an expedited and inexpensive manner. Accordingly, the Rules and Regulations may be
amended,supplemented and/or rescinded and restated as set forth in this Section 4.4.
11.4.1. Declarants Authority. During the Declarant Control Period, Declarant shall have the
unilateral right to amend, supplement and/or rescind and restate the Rules and Regulations, without prior
notice to the Townhome Association or to other Owners; provided that no such action by Declarant may
have a materially adverse effect on title to or marketability of any Townhome Lot.
11.4.2. Board Authority. The Board may amend, supplement and/or rescind and restate the
Rules and Regulations. The Board shall send notice by mail to all Members concerning any such
proposed action at least five business days prior to the Board meeting at which such action is to be
considered. Members shall have a reasonable opportunity to be heard at a Board meeting prior to such
action being taken. The Board's decision on such action shall be final, subject only to subsection 4.4.1
above.
11.4.3. Members' Authority. Members representing more than Fifty (50%) percent of the total
votes in the Townhome Association, at a Townhome Association meeting duly called for such purpose,
may amend, supplement and/or rescind and restate the Rules and Regulations.
11.4.4. Conflicts. Nothing in this Article shall authorize the Board to modify, repeal or expand
any provision of this Declaration. In the event of a conflict between this Declaration and the Rules and
Regulations, this Declaration shall control. In the event of a conflict between the Master Declaration and
the Rules and Regulations,the Master Declaration shall control.
4.5. Limitations. The right and ability of Declarant and the Board to amend, supplement or restate
the Rules and Regulations shall be limited as follows:
4.5.1. Displays. The rights of Owners to display religious and holiday signs, symbols and
decorations inside structures on their Townhome Lots of the kinds normally displayed in residential
7

vvvv v - I vv
townhome neighborhoods shall not be abridged, but no such display may violate the Townhome
Community-Wide Standard or violate any other provision of this Declaration.
4.5.2. Activities Within Dwellings. No rule established pursuant to this Article shall interfere
with the activities carried on within the confines of dwellings, except that the Townhome Association
may restrict or prohibit any activities that create costs for the Townhome Association or other Owners,
that create a danger to the health or safety of others, that generate excessive noise, traffic or use of
parking facilities,that create unsightly conditions visible outside the dwelling or that otherwise violate the
provisions of this Declaration or any applicable governmental law,ordinance or regulation.
4.5.3 Alienation. No rule promulgated pursuant to this Section shall prohibit leasing or
transfer of any Townhome Lot or require consent of the Townhome Association or Board for leasing or
transfer of any Townhome Lot; however, the Townhome Association may require a minimum lease term
of six (6)months and otherwise regulate the leasing of Townhome Lots.
4.5.4 Abridging Existing Rights. No rule shall require an Owner to dispose of personal
property that was in or on a Townhome Lot prior to the adoption of such rule and which was in
compliance with all rules previously in force. This limitation shall apply only for the duration of such
Owner's ownership of the Townhome Lot personally, and this right shall not run with title to any
Townhome Lot.
The limitations stated in this subsection shall not apply to amendments to this Declaration.
4.6 Townhome Common Area Administrative Rules.
The Board may promulgate and enforce administrative rules and regulations governing use of
the Townhome Common Areas without notice to the Members or any hearing. Examples of such
administrative rules and regulations shall include, but not be limited to, setting hours of operation of a
facility within the Townhome Community, allocating or reserving use of a facility by particular groups or
individuals at particular times, establishing
and/or fees for such reserved or exclusive use.
4.7 Notice to Purchasers and Mortgagees.
All prospective purchasers and mortgagees are given notice that use of the Townhome Lots and
the Townhome Common Area is restricted and governed by the Rules and Regulations, as they may be
amended, expanded, and otherwise modified hereunder. Each Purchaser, by acceptance of a deed,
acknowledges and agrees that the use,enjoyment and marketability of his or her Townhome Lot shall be
affected by the Rules and Regulations which may change from time to time, and that the current Rules
and Regulations may not be set forth in a Recorded Document. Take notice that Declarant or the
Townhome Association may have changed the initial Rules and Regulations since the recording of
this Declaration.The Townhome Association shall provide a copy of the current Rules and Regulations
to any prospective purchaser Member or Mortgagee upon written request and payment of the reasonable
cost of such copy.
Article V. Architecture and Landscaping. No structure or thing, including but not limited to
fences,shall be placed,erected,or installed upon or adjacent to any Townhome Lot and no improvements
or other work(including staking,clearing,excavation, grading,and other site work,exterior alterations of

vvvv v - iv
l
existing improvements, or planting or removal of landscaping) shall take place on such Townhome Lot
except pursuant to approval and in compliance with the Master Declaration.
Article VI. Maintenance and Repair
6.1 General All areas within the Townhome Property and all areas covered by easements or
licenses owned or held by the Townhome Association shall be maintained to the Townhome Community-
Wide Standard, and to all other standards stated in this Declaration, the Master Declaration, the Bylaws,
and Rules and Regulations of the Townhome Association. The Townhome Association and the
individual Owners shall be responsible for such maintenance,as provided in this Article VI.
6.2 Townhome Association Responsibility. The Townhome Association shall maintain all
landscaped rights-of-way and all entry features; all streets and roadways within any easement or licenses
owned or held by the Townhome Association, unless such streets or roadways are maintained by some
governing authority; all Townhome Common Areas, and all landscaping, paving, streets, structures and
improvements of any nature located thereon; and all ponds, streams and culverts located on the
Townhome Property which serve as part of any drainage and storm-water retention system. In addition,
the Townhome Association shall provide exterior maintenance to each Townhome Building and
Townhome Lot which is subject to assessment hereunder, as follows: paint, repair, replace and care for
roofs, gutters, downspouts, exterior Townhome Building surfaces, trees, shrubs, grass, walks and other
exterior improvements and betterments; provided that the Association shall not be responsible for
providing exterior maintenance of any improvements and betterments made and installed by individual
Owners. Such exterior maintenance by the Association shall not include glass surfaces. In order to
enable the Townhome Association to accomplish the foregoing, a perpetual easement in gross over all the
Townhome Lots and Townhome Common Area is hereby granted to the Townhome Association for the
purpose of unobstructed access over and upon each Townhome Lot and Townhome Common Area at all
reasonable times to perform maintenance as provided in this Article. The Owner of any Townhome Lot
may, at his or her election, plant harmonious trees, shrubs, flowers and grass in his or her rear yard and
maintain portions or all of his or her rear yard, provided that such maintenance by the Owner does not
hinder the Townhome Association in performing its maintenance of the exterior of the building and the
remaining spaces. No such maintenance by an Owner shall reduce any assessments payable by him to the
Townhome Association. If, in the opinion of the Townhome Association, any such Owner fails to
maintain his or her rear yard in a neat and orderly manner, the Townhome Association may revoke the
Owner's maintenance rights for a period of not more than one year. In the event that the need for
maintenance or repair by the Townhome Association pursuant to this subsection is caused through the
willful or negligent act of any Owner, his or her family, guests, invitees or delegates, the cost of such
maintenance and repair shall be assessed against the Townhome Lot(s) of such Owner(s) as a Specific
Assessment pursuant to subsection 6.4 below, and may be collected by the Townhome Association as
provided in Article IX below.
6.3 Owner's Responsibility. Except as provided in subsection 6.2 above,each Owner shall be
responsible for the routine cleanliness and general upkeep of his or her Townhome Lot.
6.4 Townhome Association's Right to Perform Owner's Responsibility. If any Owner or occupant
of a Townhome Lot fails to perform any of the duties or responsibilities set forth in this Article, then the
Townhome Association or Declarant may give such person written notice of such failure and such person
must within ten(l4) days after receiving such notice(which notice shall be deemed to have been received
upon deposit in any official depository of the United States mail, addresses to the party to whom it is
intended to be delivered at that party's current address as shown by the records of the Townhome
9

Association, and sent by certified mail, return receipt requested), perform the care and maintenance
required or otherwise perform the duties and responsibilities of such Owner. Should any such person fail
to fulfill this duty and responsibility within such period, then Declarant or the Townhome Association,
acting through its authorized agent or agents, shall have the right and power to enter onto the Townhome
Lot in question and perform such care and maintenance without ant liability for damages for wrongful
entry, trespass or otherwise at any person. All Owner(s) of a Townhome Lot on which such work is
performed shall be liable for the cost of such work together with interest on the amounts expended by the
Townhome Association or Declarant in performing such work computed at the rate of twelve percent
(12.00%) per annum form the date(s) such amounts are expended until repaid to the Townhome
Association or Declarant, as the case may be, and for all costs and expenses incurred in seeking the
compliance of such Owner with his or her duties and responsibilities hereunder, and shall reimburse the
Townhome Association or Declarant, as the case may be, on demand for such costs and expense
(including interest as above provided). If such Owner shall fail to reimburse the Townhome Association
or Declarant, as the case may be, within thirty (30) days after mailing to such Owner of a statement for
such costs and expenses incurred by the Townhome Association or Declarant, the Townhome Association
may charge a Specific Assessment for such amounts against the Townhome Lot of such Owner(s), and
proceed to collect such Specific Assessment as provided in Article IX below.
6.5 Party Walls. Each wall which is built as a part of the original construction of a Townhome
Building upon the Townhome Property and placed on a boundary line between Townhome Lots, and all
reconstruction or extension of such walls,shall constitute party walls. Except as provided in this Article,
the general rules of law regarding party walls, lateral support in below-grade construction and liability
for property damage due to negligence or willful acts or omissions shall apply to party walls on the
Townhome Property. The following rules and principles shall also apply to the party walls:
6.5.1 Sharing of Repair and Maintenance. The cost of reasonable repair and maintenance of a
party wall shall be shared by the Owners who make use of the wall or benefit therefrom in proportion to
such use and benefit.
6.5.2 Construction and Reconstruction of Party Wall. The Owner of any Townhome Lot may
construct, reconstruct, or extend a party wall in any direction (subject to and within the limitation of
architectural control and other limitation of the Master Declaration or this Declaration) with the right to
go upon the adjoining Townhome Lot to the extent necessary to perform such construction. Such
construction shall be done expeditiously. Upon completion of such construction, such Owner shall
restore the adjoining Townhome Lot to as near the same condition as prevailed before the
commencement of such construction as is reasonably practicable.
6.5.3 Weatherproofing. Notwithstanding any other provision of this Section, an Owner who,
by his or her negligence or willful act,causes the party wall to be exposed to the elements shall bear the
whole cost of furnishing the necessary protection against such elements.
6.5.4 Right to Contribution Runs with Land. The right of any Owner to contribution from any
other Owner under this Article shall be appurtenant to the land and shall pass to such Owner's
successors in title.
6.5.5 Certification by Adjoining Townhome Lot Owner that No Contribution is Due. If any
Owner desires to sell his or her Townhome Lot, he may, in order to assure a prospective purchaser that
no adjoining Owner has a right of contribution as provided in this Article, request of the adjoining

Owner a certification that no right of contribution exists, whereupon it shall be the duty of each
adjoining Owner to make such certification immediately upon request and without charges; provided,
however, that where the adjoining Owner claims a right of contribution, the certification shall contain a
recital of the amount claimed.
6.5.6 Dispute Resolution. In the event of any dispute arising concerning a party wall,or under
the provisions of this Article,each Bound Party covenants and agrees to use good faith efforts to resolve
their Claims using the procedures set forth in Section 12.4 of the Declaration.
6.6 Cost of Maintenance. All costs of the Townhome Association in maintaining Townhome
Common Area and Townhome Buildings and in meeting its responsibilities pursuant to this Article shall
be Common Expenses.
Article VII. Insurance.
7.1. Townhome Association's Responsibility.
7.1.1 The Townhome Association shall obtain and continue in effect the following types of
insurance, if reasonably available, or if not reasonably available, the most nearly equivalent coverages as
are reasonably available.
a. Blanket property insurance for all insurable improvements on the Townhome Common
Area to the extent that the Townhome Association has assumed responsibility in the event of a casualty,
regardless of ownership. All property insurance policies the Townhome Association obtains shall have
policy limits sufficient to cover the full replacement cost of the insured improvements under current
building ordinances and codes. The Townhome Association shall be deemed trustee of all Members'
interests in all insurance proceeds paid to the Townhome Association under any such policies and shall
have full power to receive and to deal with such proceeds. The insurance proceeds shall be used by the
Townhome Association for the repair or replacement of the property for which the insurance was carried,
except as otherwise provided in this Section.
b. Commercial general liability insurance on the Townhome Common Area and on the
portions of the Townhome Buildings for which the Townhome Association is responsible for
maintaining. Coverage shall include, without limitation, liability for personal injuries and activities in
connection with the ownership, operation, maintenance, and other use of the Townhome Common Area.
The Board shall use its business judgment in deciding upon per occurrence limits for such coverage and
shall consider any applicable secondary mortgage guidelines relating to such coverage. The liability
insurance shall name, as separately protected insureds, Declarant, any property manager, the Townhome
Association, the Board, the officers of the Townhome Association, and their respective representatives,
members, agents,and employees with respect to any liability arising out of the maintenance or use of the
Townhome Common Area.
c. Workers' compensation insurance and employers' liability insurance, if and to the extent
required by law.
d. Directors'and officers'liability coverage.
e. Commercial crime insurance, including fidelity insurance covering all persons
responsible for handling Townhome Association funds in an amount determined in the Board's business
11

judgment but not less than an amount equal to one-quarter of the annual Base Assessments on all
Townhome Lots plus reserves on hand. Fidelity insurance policies shall contain a waiver of all defenses
based upon the exclusion of Persons serving without compensation.
f. Such additional insurance as the Board, in its business judgment determines advisable.
7.1.2 Premiums for all insurance shall be Townhome Common Expenses unless the Board
reasonably determines that other treatment of the premiums is more appropriate. The Townhome
Association shall include such premiums in the assessments it levies. The Board shall review the limits
of all Townhome Association insurance policies at least once a year and shall adjust the policy limits as
the Board deems necessary or appropriate.
7.1.3 The Townhome Association shall arrange for a periodic review of the sufficiency of its
insurance coverage by one or more qualified persons, at least one of whom must be familiar with
replacement costs in the Mecklenburg County area. All Townhome Association policies shall provide for
a certificate of insurance to be furnished to the Townhome Association and, upon request, to each
Member insured.
7.1.4 The policies may provide for a reasonable deductible. In the event of an insured loss,the
deductible shall be treated as a Common Expense in the same manner as the premiums for the applicable
insurance coverage. However, if the Board reasonably determines, after notice and an opportunity to be
heard in accordance with the Bylaws, that the loss is the result of the negligence or willful misconduct of
one or more Owners, their guests, invitees, or lessees, then the Board may assess the full amount of such
deductible against such Owner(s)and their Townhome Lots as a Specific Assessment pursuant to Article
IX below.
7.1.5 All insurance coverage obtained by the Board shall:
a. be written with a company authorized to do business in North Carolina which satisfies
the requirements of the Federal National Mortgage Association, or such other secondary mortgage
market agencies or federal agencies as the Board deems appropriate and carries a Best rating of AA or
better;
b. be written in the name of the Townhome Association as trustee for the benefited parties.
(policies on the Townhome Common Areas shall be for the benefit of the Townhome Association and its
Members);
c. not be brought into contribution with insurance purchased by Owners, occupants, or
their Mortgagees individually;
d. contain an inflation guard endorsement;
e. include an agreed amount endorsement, if the policy contains a coinsurance clause;
f. provide that each Owner is an insured person under the policy with respect to liability
arising out of such Owner's membership in the Townhome Association or interest in the Townhome
Common Area as a Member in the Townhome Association (provided, this provision shall not be

construed as giving any Owner any interest in the Townhome Common Area other than that of a
Member);
g. include an endorsement precluding cancellation, invalidation, suspension or
non-renewal bythe insurer conditioningrecoveryon account of an act or omission of anyone or more
Owners,or on account of any curable defect or violation without prior written demand to the Townhome
Association to cure the defect or violation and allowance of a reasonable time to cure;and
h. include an endorsement precluding the insurer from denying a claim by an Owner or
conditioning recovery under the policy based upon or due to the negligent acts or omissions of the
Townhome Association or any other Owner.
7.1.6 In addition, the Board shall use reasonable efforts to secure insurance policies which list
the Owners (as a class) as additional insureds for claims arising in connection with the ownership,
existence,use or management of the Townhome Common Area and provide:
a. a waiver of subrogation as to any claims against the Townhome Association's board of
directors, officers, employees and its manager, or the Owners and their tenants, servants, agents and
guests;
b. a waiver of the insurer's rights to repair and reconstruct instead of paying cash;and
c. an endorsement requiring at least 30 days' prior written notice to the Townhome
Association of any cancellation,substantial modification or non-renewal
7.2 Owner's Responsibility.
7.2.1 Each Owner of a Townhome Lot shall be responsible for obtaining and maintaining at
all times insurance at their own expense covering all portions of the Owner's Townhome Lot, including
structures and improvements on the Townhome Lot and Owner's personal property. In addition, to the
extent not insured by policies of the Townhome Association or the extent insurable losses result in the
payment of deductibles under the Townhome Association's policies, every Owner shall obtain and
maintain at all times insurance covering consequential damages to any other Townhome Lot or the
Townhome Common Area due to occurrences originating with the Owner's Townhome Lot and caused
by the Owner's negligence, the Owner's failure to maintain the Owner's Townhome Lot or any other
casualty within the Townhome Lot, which caused damage to any other Townhome Lot or Townhome
Common Area. Additionally,each Owner of a Townhome Lot may, at their option, obtain insurance at
their own expense to cover their personal liability,and to provide such other coverage as they may desire
7.2.2 At the Townhome Association's request, Owners shall file a copy of each individual
policy or policies covering their Townhome Lot and personal property with the Board within ten (10)
days after receiving such request. Such Owner shall promptly notify the Townhome Association in
writing in the event such policy is canceled.
7.2.3 Upon resolution of the Board and at least sixty (60) days' prior written notice to each
Owner, the Townhome Association may, but shall not be required to, obtain as a Common Expense, a
blanket insurance policy providing property insurance coverage for all structure on Townhome Lots
(exclusive of improvements made by Owners). In such event, the Owners shall be relieved of their
13

lir•010.1. I V - I -TV
•
insurance responsibility hereunder to the extent the Townhome Association assumes such responsibility.
Following such an assumption of insurance responsibility, the Townhome Association may at any time,
upon not less than thirty (30) days' written notice to each Owner, discontinue such blanket insurance
coverage, and in such event, each Owner shall immediately obtain in his or her own name and at his or
her own expense the insurance coverage for such Owner's Townhome Lot required hereunder.
7.2.4 In the event of damage or destruction to a Townhome Lot, the Owner shall have sixty
(60)days to complete any necessary repairs or reconstruction. The Owner shall pay any costs that are not
covered by insurance proceeds.
Article VIII. Repair and Reconstruction of Townhome Association Property.
The Townhome Association shall have the authority and the duty to repair or reconstruct
Townhome Common Area or other property which the Townhome Association is obligated to insure
("Insured Property") that is damaged or destroyed unless such repair or reconstruction would be illegal
under any state or local ordinance governing health or safety, or Members representing at least eighty
percent(80%)percent of the total vote of the Townhome Association vote not to repair or reconstruct.
Except as otherwise provided in this Section,the Board shall diligently pursue to completion the
repair or reconstruction of that part of the Insured Property damaged or destroyed. The Townhome
Association may take all necessary or appropriate action to affect such repair or reconstruction. Such
repair or reconstruction shall be in accordance with the original plans and specifications unless other
plans are approved by the Board.
The proceeds of any insurance collected shall be available to the Townhome Association for the
purpose of repair or reconstruction of Insured Property. If the proceeds of insurance are insufficient to
pay the estimated or actual cost of such repair or reconstruction, then the Board, pursuant to Article IX
may levy in advance a Special Assessment sufficient to provide funds to pay such estimated or actual
costs of repair or reconstruction. Such assessment shall be allocated and collected as provided in Article
IX. Further levies may be made in like manner if the amounts collected prove insufficient to complete the
repair or reconstruction. The insurance proceeds held by the Townhome Association and the amounts of
any such Special Assessments shall constitute a fund for the payment for costs of repair or reconstruction
after casualty. If a balance exists after payment of all costs of such repair or reconstruction, such balance
shall be distributed to the Owners of the Townhome Lots in proportion to the contributions made by each
Owner to the Townhome Association.
If a decision is made not to restore the damaged improvements and no alternative improvements
are authorized, the Townhome Association shall clear the affected property of all debris and ruins and
thereafter shall maintain such improvements in a neat and attractive, landscaped condition consistent
with the Townhome Community-Wide Standard. The cost of removal and landscaping shall be paid for
with insurance proceeds. The Townhome Association shall retain the remaining proceeds in its general
or other funds or shall allocate or distribute such funds as the Board determines appropriate, provided
any such distribution of insurance proceeds shall be proportionate to the Members'interests.
Article IX. Townhome Association Finances

vvvv v - iv
9.1 Budgeting and Allocating Townhome Common Expenses.
Until the Townhome Association first levies assessments, Declarant shall be responsible for all
Townhome Common Expenses. Thereafter, assessments for Townhome Common Expenses shall be
levied at least annually in accordance with this Article.
At least Sixty (60) days before the beginning of each fiscal year, the Board shall prepare and
approve a budget of the estimated Townhome Common Expenses for the coming year. The budget shall
include any contributions to be made to a reserve fund for repair and replacement of capital assets,based
on a separate reserve budget which takes into account the number and nature of replaceable assets, the
expected life of each asset and each asset's expected repair or replacement cost. The budget shall reflect
the sources and estimated amounts of funds to cover such expenses,which may include any surplus to be
applied from prior years, any income expected from sources other than assessments levied against the
Townhome Lots and the amount to be generated through the levy of Base Assessments and Special
Assessments against the Townhome Lots, as authorized in Article IX. After the Declarant Control
Period terminates, the annual Base Assessments shall not be increased by an amount greater than twenty
(20%)percent of the annual Base Assessment of the immediately preceding calendar year.
The Townhome Association is hereby authorized to levy Base Assessments equally against all
Townhome Lots subject to assessment to fund the Common Expenses. In determining the Base
Assessment rate per Townhome Lot, the Board may consider any assessment income expected to be
generated from any additional Townhome Lots reasonably anticipated to become subject to assessment
during the fiscal year.
Declarant may, but shall not be obligated to, reduce the Base Assessment for any fiscal year by
paying any deficit between the Townhome Common Expenses and Townhome Association funds
collected pursuant to the current year's budget, or any portion of any such deficit (in addition to any
amounts paid by Declarant under Section 9.7), which may be a contribution, an advance against future
assessments due from Declarant or a loan, in Declarant's discretion. Any such deficit payment shall be
disclosed as a line item in the
income portion of the budget. Payment of such deficit, or portion thereof,
in any year shall not obligate Declarant to continue payment of such deficit in future years, unless
otherwise provided in a written agreement between the Townhome Association and Declarant.
9.2 Special Assessments.
In addition to other authorized assessments, the Townhome Association may levy Special
Assessments to cover unbudgeted expenses or expenses in excess of those budgeted. Any such Special
Assessment may be levied against the entire membership. Except as otherwise specifically provided in
this Declaration, any Special Assessment shall require the affirmative vote or written consent of a
majority of the Board and the consent of Declarant during the Declarant Control Period. Special
Assessments shall be payable in such manner and at such times as determined by the Board and may be
payable in installments extending beyond the fiscal year in which the Special Assessment is approved.
9.3 Specific Assessments.
The Board shall have the power to levy Specific Assessments against a particular Townhome
Lot as follows:
15

•
a. to cover the costs, including overhead and administrative costs, of providing services to
Townhome Lots upon request of an Owner pursuant to any menu of special services which the
Townhome Association may offer(which might include the services listed in Section 6.3); and
b. to cover costs incurred in bringing the Townhome Lot into compliance with the
Governing Documents, or costs incurred as a consequence of the conduct of the Owner or occupants of
the Townhome Lot, their agents, contractors, employees, licensees, invitees, or guests; provided, the
Board shall give the Townhome Lot Owner prior written notice and, if required by this Declaration or
the Bylaws, an opportunity for a hearing before levying any Specific Assessment under this subsection
9.3(b).
9.4 Authority to Assess Owners;Time of Payment.
Declarant hereby establishes and the Townhome Association is hereby authorized to levy
assessments as provided for in this Article and elsewhere in the Governing Documents. The obligation to
pay assessments shall commence as to each Townhome Lot on the first day of the month following the
later of: (a) the closing on the sale of a Townhome Lot to a person or entity other than Declarant or(b)
the issuance of a certificate of occupancy for a residential dwelling on such Townhome Lot. The first
annual Base Assessment levied on each Townhome Lot shall be adjusted according to the number of
months remaining in the fiscal year at the time assessments commence on the Townhome Lot.
Assessments shall be paid in such manner and on such dates as the Board may establish. The
Board may require advance payment of assessments at closing of the transfer of title to a Townhome Lot
and impose special requirements for Owners with a history of delinquent payment. If the Board so
elects, assessments may be paid in two or more installments. Unless the Board provides otherwise, the
Base Assessment shall be due and payable in advance on the first day of each fiscal year. If any Owner
is delinquent in paying any assessments or other charges levied on his or her Townhome Lot, the Board
may require the outstanding balance on all assessments to be paid in full immediately.
9.5 Liability for Assessments.
Each assessment levied by the Townhome Association, together with interest, late charges and
the costs of collection thereof, including reasonable attorney's fees, shall be the personal obligation of all
the Owners of each Townhome Lot. The Townhome Association shall have the power to take whatever
action is necessary, at law or in equity, to enforce this Declaration and to collect the assessment, interest,
late charges and costs. If the assessment remains unpaid for a period of thirty (30)days after the date of
mailing of the notice that it is due, the Townhome Association may impose reasonable charges for late
payment of assessments, not to exceed the greater of Twenty Dollars($20.00)per month from the date of
mailing of the notice or ten percent (10%) of any assessment installment unpaid, and the assessment,
together with the late charges thereon and the costs of collection thereof(including reasonable attorney's
fees) shall constitute a lien on the delinquent Townhome Lot when a claim of lien is filed by the
Townhome Association against the Townhome Lot in the Office of the Clerk of Superior Court of
Mecklenburg County. The lien may be foreclosed by the Townhome Association as provided in
N.C.G.S. § 47F-3-116.
The Board's failure to fix assessment amounts or rates or to deliver or mail each Owner an
assessment notice shall not be deemed a waiver, modification or a release of any Owner from the

obligation to pay assessments. In such event,each Owner shall continue to pay Base Assessments on the
same basis as during the last year for which an assessment was made, if any, until a new assessment is
levied, at which time the Townhome Association may retroactively assess any shortfalls in collections.
No Owner may exempt himself or herself from liability for assessments by non-use of
Townhome Common Area, abandonment of his or her Townhome Lot or any other means. The
obligation to pay assessments is a separate and independent covenant on the part of each Owner. No
diminution or abatement of assessments or set-off shall be claimed or allowed for any alleged failure of
the Townhome Association or Board to take some action or perform some function required of it, or for
inconvenience or discomfort arising from the making of repairs or improvements, or from any other
action of the Board.
The sale or transfer of any Townhome Lot shall not affect the assessment lien, or relieve such
Townhome Lot from the lien for any subsequent assessments. However, the sale or transfer of any
Townhome Lot pursuant to foreclosure pursuant to First Mortgage shall extinguish the lien as to any
installments of such assessments due prior to the Mortgagee's foreclosure, except as otherwise provided
in this Section. The subsequent Owner of the foreclosed Townhome Lot shall not be personally liable
for assessments on such Townhome Lot due prior to such acquisition of title. Such unpaid assessments
shall be deemed to be Common Expenses collectible from Owners of all Townhome Lots subject to
assessment under Section 9.4, including the subsequent Owner of the foreclosed Townhome Lot.
9.6 Budget Deficits During Declarant Control.
During the Declarant Control Period, Declarant may (but shall not be required to):
a. Declarant may advance funds to the Townhome Association sufficient to satisfy the
deficit, if any, between the Townhome Association's actual operating expenses and the sum of the Base,
Special, and Specific Assessments collected by the Townhome Association in any fiscal year. Such
advances shall, upon request of Declarant, be evidenced by promissory notes from the Townhome
Association in favor of Declarant. Declarant's failure to obtain a promissory note shall not invalidate the
debt.
b. Declarant may cause the Townhome Association to borrow any amount from a third
party at the then prevailing rates for such a loan in the local area of the Townhome Community.
Declarant, in its sole discretion, may guarantee repayment of such loan, if required by the lending
institution, but no Mortgage secured by the Townhome Common Area or any of the improvements
maintained by the Townhome Association shall be given in connection with such loan.
c. Declarant may acquire property for, or provide services to, the Townhome Association
or the Townhome Common Area. Declarant shall designate the value of the property or the services
provided, and such amounts, at Declarant's request, shall be evidenced by a promissory note. Failure to
obtain a promissory note shall not invalidate the obligation referred to in this Section.
9.7 Statement of Account.
Upon written request of any Member, Mortgagee, prospective Mortgagee or prospective
purchaser of a Townhome Lot, the Townhome Association shall issue a written statement setting forth
17

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the amount of the unpaid assessments, if any, with respect to such Townhome Lot, the amount of the
current periodic assessment and the date on which such assessment becomes or became due, and any
credit for advanced payments or prepaid items. Such statement shall be delivered to the requesting
person personally or by certified mail, first-class postage prepaid, return receipt requested. The
Townhome Association may require the payment of a reasonable processing fee for issuance of such
statement.
Such statement shall bind the Townhome Association in favor of persons who rely upon it in
good faith. Provided such request is made in writing, if the request for a statement of account is not
processed within fourteen (14) days of receipt of the request, all unpaid assessments that became due
before the date of making such request shall be subordinate to the lien of a Mortgagee that acquires its
interest after requesting such statement.
9.8 Exempt Property.
The following property shall be exempt from payment of Base Assessments, Specific
Assessments,and Special Assessments:
a. all Townhome Common Area;
b. any property dedicated to and accepted by any governmental authority or public
utility; and
c. anyand all property owned byDeclarant.
P l� Y
9.10 Initiation Fee.
Upon acquisition of record title to a Townhome Lot by the first Owner thereof other than
Declarant, an initial fee shall be made by or on behalf of the purchaser to the working capital of the
Townhome Association in an amount as determined by the Board of Directors per Townhome Lot. These
amounts shall be in addition to, not in lieu of, the annual Base Assessment and shall not be considered an
advance payment of such assessment. These amounts shall be deposited into the operating account of the
Townhome Association for use in covering capital maintenance, operating expenses and other expenses
incurred by the Townhome Association pursuant to this Declaration and the Bylaws, including, without
limitation, expenses incurred by Declarant and/or Association in providing infrastructure or other
Townhome Common Area. These amounts may be increased or decreased in the sole and exclusive
discretion of the Board.
Article X. Declarant Rights.
10.1 Reasonable Rights To Develop.
Declarant and/or its contractors or transferees may construct improvements to or within the
Townhome Community including to the Townhome Lots. The completion of such construction and the
sale or other disposal of the Townhome Lots is essential to the establishment and welfare of the
Townhome Community. Therefore, during the Declarant Control Period, nothing in this Declaration or
the other Governing Documents,except the Master Declaration,shall be construed to:

vvvv v I vv
a. prevent Declarant, approved builders, or their contractors or subcontractors from doing
whatever is reasonably necessary or advisable in connection with the commencement or completion of
the above-described work throughout the Townhome Community;
b. prevent Declarant or its representatives from erecting, constructing, and maintaining
anywhere in the Townhome Community such structures as reasonably may be necessary for the conduct
of its business of completing the work, establishing Redwood Rookery Townhomes as a residential
Townhome Community and disposing of the Townhome Lots by sale, lease,or otherwise;
c. prevent Declarant from maintaining such signs and conducting such activities in any
part of the Townhome Community owned by Declarant or the Association as Declarant may deem to be
reasonably necessary for the sale, lease, or disposition of Townhome Lots;or
d. prevent Declarant from placing and utilizing on Townhome Lots or other property
which it owns one or more mobile trailers or temporary structures as sales offices or for construction
activities.
Nothing in this Section shall give Declarant the right to damage any Townhome Lot or other
property not owned by Declarant.
10.2 Marketing and Sales Activities.
During the Declarant Control Period, Declarant and builders authorized by Declarant may
construct, relocate, maintain and carry on upon any Townhome Lot Declarant owns or upon portions of
the Townhome Common Area, such facilities and activities as may be reasonably required, convenient
or incidental to the construction, marketing or sale of Townhome Lots, as determined in Declarant's sole
opinion. Such facilities and activities may include, without limitation, business offices, signs, model
homes, and sales offices. There shall be no limit on the number or size of such facilities. Declarant and
authorized builders shall have easements for access to and use of such facilities. Declarant reserves the
right to remove any personal property used in connection with its activities on the Townhome Common
Area upon termination of its rights under this Section.
10.3 Construction of Improvements.
During the Declarant Control Period, Declarant and its employees, agents and designees shall
have a right of access and use and an easement over and upon all of the Townhome Common Area for
the purpose of making, constructing and installing such improvements to the Townhome Common Area
as it deems appropriate in its sole discretion.
10.4 Right to Approve Additional Covenants.
During the Declarant Control Period, no person or entity shall record any declaration of
covenants, condition and restrictions, or declaration of condominium or similar instrument affecting
any portion of the Townhome Community without Declarant's prior written approval. Any instrument
recorded without such consent shall be void and of no force and effect unless Declarant subsequently
consents in a Recorded Document.
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10.5 Right to Transfer or Assign Declarant Rights.
Any or all of Declarant's rights or obligations set forth in this Declaration or the Bylaws may be
transferred in whole or in part to other persons; however, the transfer shall not reduce an obligation or
enlarge a right beyond that which Declarant has under this Declaration or the Bylaws. No such transfer
or assignment shall be effective unless evidenced by a Recorded Document. The foregoing sentence
shall not preclude Declarant from permitting other persons to exercise, on a one-time or limited basis,
any right reserved to Declarant in this Declaration where Declarant does not intend to transfer such right
in its entirety. In such case it shall not be necessary to record any written assignment unless necessary to
evidence Declarant's consent to such exercise.
10.6 Exclusive Rights to Use Name of Development.
During the Declarant Control Period,no person or entity shall use the name "Redwood Rookery
Townhomes" or any derivative of such name in any printed or promotional material without Declarant's
prior written consent. However, Owners may use the name "Redwood Rookery Townhomes" in printed
or promotional matter where such term is used solely to specify that particular property is located within
the community and the Townhome Association shall be entitled to use the words "Redwood Rookery
Townhomes" in its name.
10.7 Right to Approve Changes in Townhome Community Standards.
During the Declarant Control Period, no amendment to or modification of any Rules and
Regulations shall be effective without Declarant's prior written approval.

vvvv ,v - , yr
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10.8 Easement to Inspect and Right to Correct.
10.8.1 Easement. Declarant reserves for itself and such other persons as it may designate
perpetual non-exclusive easements throughout the Townhome Community to the extent reasonably
necessary for the purposes of accessing, inspecting, testing, redesigning or correcting any portion of the
Townhome Community including Townhome Lots and Townhome Common Areas. Declarant shall
have the right to redesign or correct any part of the Townhome Community, including Townhome Lots
owned by Declarant and Townhome Common Areas.
10.8.2 Right of Entry. Entry onto a Townhome Lot shall be after reasonable notice, except
in an emergency. Entry into a structure on a Townhome Lot shall be only after Declarant notifies the
Townhome Lot's Owner and agrees with the Owner regarding a reasonable time to enter the structures
on such Townhome Lot to perform such activities.
10.8.3 Damage. Declarant shall promptly repair any damage to a Townhome Lot or the
Townhome Common Area resulting from the exercise of the easement or right of entry described in
subsections 10.8.1 and 10.8.2 of this Section at its own expense. The exercise of these easements shall
not unreasonably interfere with the use of any Townhome Lot, and entry onto any Townhome Lot shall
be made only after reasonable notice to the Owner or occupant.
10.9 Appointment or Removal of Members of the Board and officers. During the Declarant
Control Period, Declarant shall have the right to appoint or remove any member of the Board or officer
of the Townhome Association.
10.10 Amendment to Declaration. During the Declarant Control Period, Declarant shall have the
right to amend or rescind and restate this Declaration by a Recorded Document, without approval or
joinder of the Townhome Association or any other Party.
10.11 Review of Design and Construction. During the Declarant Control Period, Declarant shall
have the right to control the design, quality, installation and construction of improvements within the
Townhome Community as provided in Article V above.
Article XI. Easements
11.1
11.1.1 Owners' Easements of Enjoyment. Except as limited by this Declaration and the
Planned Community Act, every Owner shall have a right of use and enjoyment in and to the Townhome
Common Area which shall be appurtenant to and shall pass with the title to every Townhome Lot. Except
as limited by this Declaration and the Planned Community Act,any Owner may delegate his or her rights
of use and enjoyment of the Townhome Common Area to the members of his or her family, tenants,
contract purchasers who reside on the Townhome Property,or guests.
11.1.2 Walks, Drives, Parking Areas, and Utilities. All areas of the Townhome Community
shall be subject to such easements for driveways, walkways, parking areas, water lines, sanitary sewers,
storm drainage facilities and for the maintenance of and general access to all stormwater control
structures, gas lines, telephone and electric power lines, television antenna lines, other utilities, ingress,
21

✓VVV 1,1 I VV
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egress and regress and otherwise as shall be established by Declarant or by its predecessor in title,prior to
the conveyance of the Townhome Property designated to be the Townhome Common Area to the
Townhome Association; and the Townhome Association shall have the power and authority to grant and
establish further easements upon,over,under,and across the Townhome Common Area.
11.1.3 Encroachments and Declarant's Easement to Correct Drainage. All Townhome Lots and
the Townhome Common Area shall be subject to easements for the encroachment of initial improvements
constructed on any Townhome Lots or Townhome Common Area to the extent that such initial
improvements actually encroach, including, without limitation, such items as overhanging eaves, gutters,
downspouts,exterior storage rooms,bay windows, steps and walls. For a period of twenty-five(25)years
from the date of conveyance of the first Townhome Lot in a parcel or section, Declarant reserves a
blanket easement and right-of-way on, over, and under the ground within that parcel, phase or section to
maintain and to correct drainage or surface water in order to maintain reasonable standards of health,
safety and appearance. Such rights expressly include the right to cut any trees,bushes or shrubbery, make
any gradings of the soil or take any other similar action reasonably necessary. After such action has been
completed, Declarant shall restore the affected Townhome Property to its original condition to the extent
practicable. Declarant shall give reasonable notice of intent to take such action to all affected owners.
These rights and reservations are assignable by Declarant.
11.1.4 Easement for Entry Features. There is hereby reserved to Declarant and the Townhome
Association an easement for ingress, egress, installation, construction landscaping and maintenance of
entry features and similar streetscapes for the Townhome Community, over and upon each Townhome
Lot and all Townhome Common Area. The easement and right herein reserved shall include the right to
cut, remove and plant trees, shrubbery, flowers and other vegetation around such entry features and the
right to grade the land under and around such entry features.
11.1.5 Construction and Sale Period Easement. Notwithstanding any provisions contained in
the Declaration, the Bylaws, the Articles of Incorporation, use restrictions, rules and regulations, design
guidelines, and any amendments thereto, until Declarant's right unilaterally to subject property to this
Declaration terminates and thereafter so long as Declarant owns any property in the Townhome
Community for development or sale, Declarant reserves an easement across the Townhome Community
for Declarant and any builder or developer approved by Declarant to maintain and carry on development,
construction,and sales activities related to property within or near the Townhome Community,upon such
portion of the Townhome Community as Declarant may reasonably deem necessary. This reserved
easement shall include an easement for such facilities and activities which, in the sole opinion of
Declarant, may be required, convenient or incidental to the development,construction and sales activities
related to property within or near the Townhome Community. This easement shall include, without
limitation: (i) the right of access, ingress and egress for vehicular and pedestrian traffic and construction
activities over, under, on or in any portion of the Townhome Community as well as any Townhome Lot
in the Townhome Community; (ii) the right to tie into any portion of the Townhome Community with
driveways, parking areas and walkways; (iii) the right to tie into or otherwise connect and use(without a
tap-on or any other fee for doing so), replace, relocate, maintain and repair any device which provides
utility or similar services; (iv) the right (but not the obligation) to construct recreational facilities on the
Townhome Common Area; (v) the right to carry on sales and promotional activities in the Townhome
Community; (vi) the right to place direction and marketing signs on any portion of the Townhome
Community, including any Townhome Lot or Townhome Common Area; and (vii) the right to construct
and operate business offices, signs,construction trailers, model residences, and sales offices incidental to
the construction, development and sales activities. Further, Declarant and any builder or developer
authorized by Declarant, may use residences, offices or other buildings owned or leased by Declarant or
such builder or developer as model residences and sales offices, and may also use recreational facilities
available for use by the Townhome Community as a sales office or for marketing purposes without

vvvv I v - . vz
•
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charge. Rights exercised pursuant to such reserved easement shall be exercised with a minimum of
interference to the quiet enjoyment of affected property, and reasonable steps shall be taken to protect
such property from damage. Any damage shall be repaired by the person causing the damage at its sole
expense. This section shall not be amended without Declarant's express written consent until Declarant's
rights hereunder have terminated as provided in this Declaration.
11.1.6 Irrigation. There is hereby reserved to Declarant and the Townhome Association a
blanket easement to pump water from ponds, lakes and other bodies of water located within the
Townhome Community for irrigation purposes.
11.1.7 Fence Easement. Declarant hereby reserves an easement across any Townhome Lot
which borders upon or contains a portion of any water facility, detention pond, or retention pond for the
purpose of access to such facility or pond, and for the purpose of erecting any fence which is either
required by the subdivision development and construction plans or governmental regulation, rule,
ordinance, or plan approval requirement.
11.1.8 Easement to Government Entities. An easement is hereby established for municipal,
State or public utilities serving the area, their agents and employees, over all Townhome Common Area
hereby or hereafter established for setting, removing and reading utility meters, maintaining and replacing
utility connections, and acting with other purposes consistent with the public safety and welfare,
including, without limitation, garbage collection, mail delivery, police and fire protection.
11.1.9 Easement and Right of Entry for Repair. Maintenance and Reconstruction. If any
dwelling is located closer than four (4) feet from its lot line, the Owner thereof shall have a perpetual
access easement over the adjoining lot to the extent reasonably necessary to perform repair, maintenance
or reconstruction of his or her home. Such repair, maintenance or reconstruction shall be done
expeditiously and, upon completion of the work, the Owner shall restore the adjoining Townhome Lot to
as near the same condition as that which existed prior to the commencement of the work as is reasonably
practicable.
11.1.10 Pedestrian Easements. To the extent that they are not maintained by the Owners of
those portions of the Townhome Property on which they are located, the Townhome Association shall
maintain all Pedestrian Access Easements required to be located on any portion of the Townhome
Property pursuant to approved subdivision plan approvals and/or pursuant to plats of the Townhome
Property recorded in the register of deeds of the county in which the Townhome Property is located,
and/or pursuant to written maintenance agreements with the municipal or county authorities.
Article XII. Dispute Resolution and Limitation on Litigation.
12.1 Consensus for Townhome Association Litigation.
Except as provided in this Section, the Townhome Association shall not commence a judicial or
administrative proceeding without the approval of Members representing at least sixty-seven (67%)
percent of the total votes of the Townhome Association. This Section shall not apply, however, to (a)
actions by the Townhome Association to enforce the Governing Documents (including, without
limitation, the imposition of fines, the suspension of privileges or services or the foreclosure of liens); (b)
the collection of assessments; (c) proceedings involving challenges to ad valorem taxation; or (d)
counterclaims brought by the Townhome Association in proceedings instituted against it. This Section
shall not be amended unless such amendment is approved by the percentage of votes, and pursuant to the
same procedures, necessary to institute proceedings as provided above.
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Prior to the Townhome Association or any Member commencing any judicial or administrative
proceeding to which Declarant is a party and which arises out of an alleged defect in the Townhome
Community or any improvement constructed thereon, Declarant shall have the right to meet in good faith
and discuss the subject of the proceeding with the Members or the particular Member, and to access,
inspect, correct the condition of or redesign any portion of the Townhome Community, including any
improvement as to which a defect is alleged. In addition, the Townhome Association or the Member shall
notify the builder who constructed such improvements prior to retaining any other expert witness or for
other litigation purposes.
12.2 Alternative Method for Resolving Disputes.
Declarant, the Townhome Association, its officers,directors and committee members, the Master
Association, its officers, directors and committee members, all Persons subject to this Declaration, any
builder within the Townhome Community, and any Person not otherwise subject to the Declaration who
agrees to submit to this Article(collectively, "Bound Parties") agree to encourage the amicable resolution
of disputes involving the Townhome Community without the emotional and financial costs of litigation.
Accordingly, each Bound Party covenants and agrees to use good faith efforts to resolve those claims,
grievances,or disputes described in Section 12.3 ("Claims")using the procedures set forth in Section 12.4
hereof.
12.3 Claims.
Unless specifically exempted below, all Claims arising out of or relating to the interpretation,
application, or enforcement of the Governing Documents, or the rights, obligations, and duties of any
Bound Party under the Governing Documents or relating to the design or construction of improvements
in the Townhome Community (other than matters of aesthetic judgment under Article V, which shall not
be subject to review)shall be subject to the provisions of Section 12.4.
Notwithstanding the above, unless all parties thereto otherwise agree, the following shall not be
Claims and shall not be subject to the provisions of Section 12.4:
a. any suit by Declarant and/or Townhome Association against any Bound Party to
enforce the provisions of this Declaration;
b. any suit by Declarant, Townhome Association or any Owner to obtain a temporary
restraining order (or equivalent emergency equitable relief) and such other ancillary relief as the court
may deem necessary in order to maintain the status quo and preserve the party's ability to enforce the
provisions of this Declaration;
c. any suit between Owners, which does not include Declarant or the Townhome
Association as a party, if such suit asserts a Claim which would constitute a cause of action independent
of the Governing Documents;
d. any suit in which any indispensable party is not a Bound Party;and
e. any suit as to which any applicable statute of limitations would expire within 180
days of giving the Notice required by Section 12.4.1 unless the party or parties against whom the Claim
is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be
necessary to comply with this Article.

r
With the consent of all parties thereto, any of the above may be submitted to the alternative
dispute resolution procedures set forth in Section 12.4.
12.4 Mandatory Procedures.
12.4.1 Notice. Any Bound Party having a Claim("Claimant")against any other Bound Party
("Respondent") (collectively, the "Parties") shall notify each Respondent in writing (the "Notice"),
stating plainly and concisely:
a. the nature of the Claim, including the Persons involved and Respondent's role in
the Claim;
b. the legal basis of the Claim (i.e., the specific authority out of which the Claim
arises);
c. Claimant's proposed remedy;and
d. that Claimant will meet with Respondent to discuss in good faith ways to resolve
the Claim.
12.4.2 Negotiation and Mediation.
a. The Parties shall make everyreasonable effort to meet in person and confer for
the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a
copy of the Notice,the Board may appoint a representative to assist the Parties in negotiation.
b. If the Parties do not resolve the Claim within Thirty (30) days of the date of the
Notice (or within such other period as may be agreed upon by the Parties) ("Termination of
Negotiations"), Claimant shall have Thirty (30) additional days to submit the Claim to mediation under
an independent agency providing dispute resolution services in Mecklenburg County or surrounding
areas.
c. If Claimant does not submit the Claim to mediation within such time,or does not
appear for the mediation, Claimant shall be deemed to have waived the Claim, and Respondent shall be
released and discharged from any and all liability to Claimant on account of such Claim; however,
nothing herein shall release or discharge Respondent from any liability to any Person other than the
Claimant.
d. Any settlement of the Claim through mediation shall be documented in writing
by the mediator and signed by the Parties. If the Parties do not settle the Claim within Thirty (30) days
after submission of the matter to the mediation, or within such time as determined by the mediator, the
mediator shall issue a notice of termination of the mediation proceedings ("Termination of Mediation").
The Termination of Mediation notice shall set forth that the Parties are at an impasse and the date that
mediation was terminated.
e. Within five(5)days of the Termination of Mediation, the Claimant shall make a
final written demand ("Settlement Demand") to the Respondent, and the Respondent shall make a final
25

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written settlement offer ("Settlement Offer") to the Claimant. If the Claimant fails to make a Settlement
Demand, Claimants' original Notice shall constitute the Settlement Demand. If the Respondent fails to
make a Settlement Offer, Respondent shall be deemed to have made a "zero" or "take nothing"
Settlement Offer.
12.4.3 Final and Binding Arbitration.
a. If the Parties do not agree in writing to a settlement of the Claim within fifteen
(15)days of the Termination of Mediation, the Claimant shall have fifteen (15) additional days to submit
the Claim to arbitration in accordance with the rules of arbitration promulgated or observed by the
agency providing the arbitrator. If not timely submitted to arbitration or if the Claimant fails to appear for
the arbitration proceeding, the Claim shall be deemed abandoned, and Respondent shall be released and
discharged from any and all liability to Claimant arising out of such Claim; however,nothing herein shall
release or discharge Respondent from any liability to parties other than Claimant.
b. This subsection 13.4.3(b) is an agreement to arbitrate and is specifically
enforceable under any applicable arbitration laws of the State of North Carolina. The arbitration award
( Award ) shall be final and binding, and judgment may be entered upon it in any court of competent
jurisdiction to the fullest extent permitted under the laws of North Carolina.
12.5 Allocation of Costs of Resolving Claims.
12.5.1 Subject to Section 12.5.2, each Party shall bear its own costs, including attorneys'
fees, and each Party shall share equally all charges rendered by the mediator(s) and all filing fees and
costs of conducting the arbitration proceeding("Post Mediation Costs").
12.5.2 Any Award that is equal to or more favorable to Claimant than Claimant's
Settlement Demand shall add Claimant's Post Mediation Costs, including reasonable attorney's fees, to
the Award, such costs to be borne equally by all Respondents. Any Award that is equal to or less
favorable to Claimant than any Respondents' Settlement Offer shall award such Respondent its Post
Mediation Costs, including reasonable attorney's fees.
12.6 Enforcement of Resolution.
If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance
with Section 12.4 and any Party thereafter fails to abide by the terms of such agreement, or if any Party
fails to comply with an Award,then any other Party may file suit or initiate administrative proceedings to
enforce such agreement without the need to again comply with the procedures set forth in Section 12.4.
In such event, the Party taking action to enforce the agreement shall be entitled to recover from the
non-complying Party (or if more than one non-complying Party, from all such Parties pro rata) all costs
incurred in enforcing such agreement, including, without limitation, attorneys'fees and court costs.
Article XIII. Mortgagee Provisions.

VVVV 1 V - 1 V V
The following provisions are for the benefit of holders, insurers, and guarantors of First
Mortgages on Townhome Lots in the Townhome Community. The provisions of this Article apply to
both this Declaration and to the Bylaws, notwithstanding any other provisions contained therein.
13.1 Notices of Action.
An institutional holder, insurer, or guarantor of a First Mortgage which provides a written request to the
Townhome Association, such request to state the name and address of such holder, insurer, or guarantor
and the street address of the Townhome Lot to which its Mortgage relates, thereby becoming an
("Eligible Holder"),shall be entitled to timely written notice of:
a. any condemnation loss or any casualty loss which affects a material portion of the
Townhome Community or which affects any Townhome Lot on which there is a First Mortgage held,
insured,or guaranteed by such Eligible Holder;
b. any delinquency in the payment of assessments or charges owed by a Townhome Lot
subject to the Mortgage or such Eligible Holder, where such delinquency has continued for a period of
sixty (60) days, or any other violation of the Governing Documents relating to such Townhome Lot or
the Owner or occupant which is not cured within sixty(60)days of receiving notice of such violation;
c. any lapse, cancellation or material modification of any insurance policy the
Townhome Association maintains; or
d. any proposed action which would require the consent of a specified percentage of
Eligible Holders.
13.2 No Priority.
No provision of this Declaration or the Bylaws gives or shall be construed as giving any Owner
or other party priority over any rights of the First Mortgagee of any Townhome Lot in the case of
distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the
Townhome Common Area.
13.3 Notice to Townhome Association.
Upon request, each Owner shall be obligated to furnish to the Townhome Association the name
and address of the holder of any Mortgage encumbering such Owner's Townhome Lot.
13.4 Failure of Mortgagee To Respond.
Any Mortgagee who receives a written request from the Board to respond to or consent to any
action shall be deemed to have approved such action if the Townhome Association does not receive a
written response from the Mortgagee within thirty (30) days of the date of the Townhome Association's
request,provided such request is delivered to the Mortgagee by certified or registered mail, return receipt
requested.
13.5 Construction of Article XIII.
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Nothing contained in this Article shall be construed to reduce the percentage vote that must
otherwise be obtained under this Declaration, the Bylaws,or the Planned Community Act for any of the
acts set out in this Article.
Article XIV. Changes in Townhome Common Area
14.1 Condemnation.
If a Townhome Lot or portion thereof shall be taken by eminent domain, compensation and the
Owner's interests in the Townhome Common Area shall be appropriately allocated among all other
Owners. If any part of the Townhome Common Area shall be taken (or conveyed in lieu of and under
threat of condemnation by the Board acting on the written direction of Members representing at least
Sixty-seven (67%) percent of the total votes in the Townhome Association) by any authority having the
power of condemnation or eminent domain, each Owner shall be entitled to written notice of such taking
or conveyance prior to disbursement of any condemnation award or proceeds from such conveyance.
Such award or proceeds shall be payable to the Townhome Association to be disbursed as follows:
a. If the taking or conveyance involves a portion of the Townhome Common Area on
which improvements have been constructed, the Townhome Association shall restore or replace such
improvements on the remaining Townhome Common Area to the extent available, unless within sixty
(60)days after such taking Declarant,during the Declarant Control Period, and Members representing at
least eighty (80%) percent of the total votes in the Townhome Association shall otherwise agree. Any
such construction shall be in accordance with plans approved by the Board. The provisions of Article IX
regarding funds for restoring improvements shall apply.
b. If the taking or conveyance does not involve any improvements on the Townhome
Common Area, if a decision is made not to repair or restore, or if net funds remain after any such
restoration or replacement is complete,then such award or net funds shall be disbursed to the Townhome
Association and used for such purposes as the Board shall determine.
14.2 Transfer.Partition, or Encumbrance of Townhome Common Area.
a. Except as this Declaration otherwise specifically provides, the Townhome Common
Area shall not be judicially partitioned or subdivided into Townhome Lots, nor shall the ownership of
the Townhome Common Area be otherwise divided or encumbered in any manner after conveyance to
the Townhome Association, except upon the approval of Members representing at least Eighty (80%)
percent of the total votes in the Townhome Association, including a majority of the votes held by
Members other than Declarant,and the consent of Declarant if during the Declarant Control Period.
b. The Townhome Association shall have the authority, subject to approval of Members
representing a majority of the total votes in the Townhome Association, including a majority of the votes
held by Members other than Declarant, and the consent of Declarant, if during the Declarant Control
Period, to transfer portions of the Townhome Common Area and improvements thereon to appropriate
governmental entities or tax-exempt organizations for the maintenance, operation, and preservation
thereof; provided, any such transfer shall not relieve such Townhome Common Area from the rights and
benefits of the Townhome Association and the Members as provided in this Declaration and shall
otherwise be subject to the provisions of this Declaration.

Article XV. Fines and Suspension of Privileges or Services.
Notwithstanding any other provision herein, the Board may impose fines on an Owner and/or
suspend an Owner's right and privilege to use certain Townhome Common Area for failure of that
Owner, his or her lessees, agents or invitees, to abide by this Declaration, the Rules and Regulations or
the administrative rules and regulations governing Townhome Common Area. The procedure for the
Board to do so shall be as set forth in the Bylaws. The Board shall not impose any such fine or
suspension unless and until the Owner charged has been given notice of the charge, opportunity to be
heard by and present evidence to the Board and notice of the Board's decision. Suspensions may be
imposed for a reasonable period of time and/or until a violation or delinquency is cured.
Article XVI. Miscellaneous
16.1 Parties Bound. All persons and entities acquiring any interest in any of the Townhome Lots,
including but not limited to lessees, shall be bound by the provisions of this Declaration. All guests and
invitees of such persons and entities, and any other occupants of any of the Townhome Lots, shall
likewise be bound.
16.2 Duration. The provisions of this Declaration shall run with and bind the Property perpetually,
unless and until the Townhome Community is terminated pursuant to N.C.G.S. Section 47F-2-I18.
16.3 Amendment. Except as provided in Section 10.10 above, this Declaration may be amended
only by a written instrument executed by the Townhome Association and authorized by the affirmative
vote of at least sixty-seven percent (67%) of all Townhome Lots, cast in person or by proxy at a meeting
held in accordance with the Bylaws of the Townhome Association. Any amendment must be recorded to
be effective.
16.4 Enforcement. Subject to the provisions of Article XII above, Declarant,any Owner and/or the
Townhome Association shall have the right to enforce, by any proceeding at law or in equity, all
restrictions, conditions, covenants and obligations imposed by this Declaration. Subject to the provisions
of Article XII above, Declarant, the Townhome Association or any Townhome Lot Owner may bring any
action necessary to enjoin any violation or breach of the provisions of this Declaration. Declarant, the
Townhome Association and/or any Owner shall be entitled to recover reasonable attorney's fees incurred
in bringing and prosecuting such action from the breaching or violating Owner(s).
16.5 Failure to Enforce Not a Waiver. The failure to enforce any right, reservation, covenant or
restriction contained in this Declaration, however long continued, shall not be deemed a waiver of the
right to do so thereafter.
16.6 Assignment by Declarant. Any or all of the rights, powers, easements, functions and
obligations reserved or given to Declarant in this Declaration may be assigned to the Townhome
Association, and the Townhome Association shall accept and assume responsibility for any or all such
rights, powers,easements, functions and obligations when requested by Declarant. Any such assignments
or transfer shall be made by a Recorded Document, executed by both Declarant and the Townhome
Association, and the Townhome Association shall thereupon have the same rights and powers and be
subject to the same obligations and duties as are herein given to and assumed by Declarant. Declarant,
but not the Townhome Association,shall thereupon be released from such obligations and duties.
16.7 Notice of Sale, Lease or Acquisition. In the event an Owner sells or leases such Owner's
Townhome Lot,the Owner shall give to the Townhome Association, in writing, prior to the effective date
29

•
of such sales or lease, the name of the purchaser or lessee of the Townhome Lot and such other
information as the Townhome Association may reasonably require. Upon acquisition of a Townhome
Lot, each new Owner shall give the Townhome Association, in writing, the name and mailing address of
the Owner and such other information as the board may reasonably require.
16.8 Variances. Notwithstanding anything to the contrary contained herein, Declarant and/or the
Townhome Association or its designee shall be authorized to grant individual variances from any of the
provisions of this Declaration, the Bylaws and any rule, regulation or use restriction promulgated
pursuant thereto if Declarant or the Townhome Association determine that waiver of application or
enforcement of the provision in a particular case would not be inconsistent with the overall scheme of
development for the Townhome Community.
16.9 Severability. Invalidation of any one of these covenants or restrictions by judgment or court
order shall not affect any of the other provisions of this Declaration, which shall remain in full force and
effect.
16.10 Captions. The captions herein are inserted only as a matter of convenience and for reference,
and shall not be construed to define, limit or describe the scope of any provision of this Declaration.
16.11 Law Controlling. This Declaration shall be construed and governed pursuant to the laws of
North Carolina.
16.12 References to Statutes. All references herein to any statutory provision shall be construed to
include and apply to any subsequent amendments to or replacements of such provision.
16.13 Conflicts. In the event of any conflict between the Master Declaration and this Declaration or
other Governing Documents, the terms of the Master Declaration shall control.
SIGNATURE FOLLOWS ON NEXT PAGE

IN WITNESS WHEREOF, Brookline Homes, LLC, as Declarant under this Declaration
Declaration, has caused this instrument to be executed by its duly authorized President, as of the day and
year first above written.
BROOKLINE HOMES,LLC
a North Carolina limited liability company, Declarant
B
'Andrea Dirkschneider,Vice President
STATE OF No r 44-► at.re (,' r, 4
COUNTY OF G na S ice,
I, J i i 2• 44,E S ,a Notary Public of the County and State aforesaid,certify
that Andrea Dirkschneider personally appeared before me this day and acknowledged that she is Vice
President of Brookline Homes, LLC,a North Carolina limited liability company,and that she, being duly
authorized to do so,executed the foregoing for and on behalf of said limited liability company.
Witness my hand and official stamp or seal,this 5 day of Ai,. I ,2021.
NOTARY SEAL t 02:r—A/11:='
Signatury of otary Public
JRI RAtkins My Corn • ion Expires: 2 II ' Rb 1tic
Notary Public
Gaston County,Nat Cei*s
Commission Expires February 11,2024
3l

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IN WITNESS WHEREOF, D.R. Horton, Inc., as Declarant under the Master Declaration, has
caused this instrument to be executed by its duly authorized Division President, all by order and authority
duly granted by its corporate board of directors,as of the day and year first above written.
D.R.HORTON,INC.
a Delaware corporation1
i
By:
Kristi Bic an, ivision President
STATE OF N ov4-h C-0-✓t>t i►n.&
COUNTY OF 6-,et S+D
I, Ra&ri tt IUAv-t'in Hates ,a Notary Public of the County and State aforesaid,certify
that Kristin Bickman personally appeared before me this day and acknowledged that she is Division
President of D.R. Horton, Inc.,a Delaware corporation,and that she, being duly authorized to do so,
executed the foregoing for and on behalf of said corporation.
Witness my hand and official stamp or seal,this 23 day of Apr; I ,20,21.
NOTARY SEAL GRCut-04-L-12 g pQ
Signature of Notary Public d'�
Rachel Martin Hayes My Commission Expires: f I 0_4 a 11 c C aJ
NOTARY PUBLIC
Gaston County
North Carolina
My Commission Expires May 27,2025

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•
EXHIBIT A
Legal Description
Lying and being situate in Mecklenburg County,North Carolina,and being more particularly described as follows:
TRACT ONE;
BEGINNING AT A POINT WITHIN A 200'RIGHT-OF-WAY FOR NORFOLK-SOUTHERN RAILROAD,
SAID POINT BEING THE POINT OF BEGINNING AND THENCE OF A CURVE TO THE LEFT,
HAVING A RADIUS OF 2,765.45'AND LENGTH OF 88.69'AND CHORD BEARING AND DISTANCE
OF NORTH 85°17'38" EAST 88.69' TO A POINT IN THE CENTERLINE OF SAID RAILROAD
RIGHT-OF-WAY; THENCE WITH CENTER OF SAID RIGHT-OF-WAY, SOUTH 77°52'09" EAST, A
DISTANCE OF 1,675.79' TO A POINT IN THE CENTERLINE OF SAID RIGHT-OF-WAY; THENCE
CONTINUE EASTERLY ALONG SAID CENTERLINE OF RAILROAD RIGHT-OF-WAY,A DISTANCE
OF 56.65' TO A POINT IN THE CENTERLINE OF RAILROAD RIGHT-OF-WAY AND ON THE
WESTERLY EASEMENT LINE OF A SANITARY SEWERLINE; THENCE WITH THE WESTERLY
EASEMENT LINE THE FOLLOWING 12 CALLS: 1) SOUTH 21°55'40" WEST, 78.14'TO A POINT; 2)
NORTH 77°52'09"WEST,6.87'TO A POINT;3)SOUTH 51 '18'09"EAST,7.07'TO A POINT; 4) SOUTH
21 '55'40" WEST, 37.25' TO A POINT; 5) SOUTH 37°00'33" WEST, 390.34' TO A POINT; 6)NORTH
51°48'44"WEST,250.06'TO A POINT;7)SOUTH 38°47'51"WEST,216.92'TO A POINT;8)A CURVE TO
THE RIGHT, HAVING A RADIUS OF 125.00' AND LENGTH OF 152.09' (CHORD BEARING AND
DISTANCE OF SOUTH 73°39'12"WEST, 142.88')TO A POINT;9)NORTH 71 °29'28"WEST, 123.23'TO
A POINT; 10) A CURVE TO THE RIGHT, HAVING A RADIUS OF 125.00' AND LENGTH OF 78.65'
(CHORD BEARING AND DISTANCE OF NORTH 53 28 00 WEST, 77.36') TO A POINT; 11)NORTH
35°26'31" WEST,80.51'TO A POINT;AND 12)SOUTH 46°53'01"WEST, 185.87 TO A POINT;THENCE
NORTH 52°32'39"WEST,A DISTANCE OF 113.57'TO A POINT;THENCE NORTH 41 '45'24"WEST,A
DISTANCE OF 149.06'TO A POINT;THENCE NORTH 39°23'57"WEST,A DISTANCE OF 102.81'TO A
POINT; THENCE NORTH 44°12'22" WEST, A DISTANCE OF 37.81' TO A POINT; THENCE NORTH
39°52'49"WEST,A DISTANCE OF 81.37'TO A POINT;THENCE NORTH 47°37'09"WEST,A DISTANCE
OF 32.68' TO A POINT; THENCE NORTH 35°58'00" WEST, A DISTANCE OF 103.75' TO A POINT;
THENCE CONTINUE NORTHWESTERLY ALONG SAID LINE,A DISTANCE OF 52.06'TO A POINT;
THENCE NORTH 36°18'41" WEST, A DISTANCE OF 25.47'TO A POINT;THENCE NORTH 48°08'13"
WEST,A DISTANCE OF 72.58'TO A POINT;THENCE NORTH 30°50'03"WEST,A DISTANCE OF 58.41'
TO A POINT; THENCE NORTH 40°53'04" WEST, A DISTANCE OF 164.67' TO A POINT; THENCE
NORTH 22°06'25" WEST, A DISTANCE OF 20.15' TO A POINT; THENCE NORTH 09°51'22"WEST,A
DISTANCE OF 50.54' TO THE POINT OF BEGINNING. CONTAINING 18.27 ACRES (796,052.06
SQUARE FEET).
BEING ALL OF PARCEL 9 DESCRIBED IN THE DEED TO REO FUNDING SOLUTIONS, III, LLC,
RECORDED OCTOBER 25,2012,IN BOOK 27768,PAGES 162-175,OF THE MECKLENBURG COUNTY
REGISTER OF DEEDS.
TRACT TWO:
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BEGINNING AT A POINT ON THE EASTERLY EASEMENT LINE OF A SANITARY SEWER LINE,
SAID POINT BEING THE POINT OF BEGINNING; THENCE WITH THE EASEMENT LINE THE
FOLLOWING 11 CALLS: 1)NORTH 46°53'01"EAST, 131.20'TO A POINT;2)SOUTH 35°26'31"EAST,
58.64' TO A POINT; 3) A CURVE TO THE LEFT HAVING A RADIUS OF 175.00' AND LENGTH OF
110.11' (CHORD BEARING AND DISTANCE OF SOUTH 53°28'00" EAST, 108.30') TO A POINT; 4)
SOUTH 71°29'28" EAST, 123.23' TO A POINT; 5) A CURVE TO THE LEFT, HAVING A RADIUS OF
175.00' AND LENGTH OF 212.92'(CHORD BEARING AND DISTANCE OF NORTH 73°39'12" EAST,
200.03') TO A POINT; 6)NORTH 38°47'51" EAST, 202.44' TO A POINT; 7) SOUTH 51°48'44" EAST,
215.53' TO A POINT;8)NORTH 37°00'33"EAST,407.64'TO A POINT;9)NORTH 21°55'40"EAST,34.73'
TO A POINT; 10) NORTH 21°55'40" EAST , 10.31' TO A POINT;.AND 11)NORTH 21 '55'40" EAST,
78.14' TO A POINT IN THE CENTERLINE OF A 200' RIGHT-OF-WAY FOR NORFOLK-SOUTHERN
RAILROAD;THENCE WITH THE CENTERLINE OF SAID RIGHT-OF-WAY,SOUTH 77°52'09"EAST,A
DISTANCE OF 46.15' TO A POINT; THENCE CONTINUE EASTERLY ALONG SAID LINE, A
DISTANCE OF 73.97' TO A POINT; THENCE CONTINUE EASTERLY ALONG SAID LINE, A
DISTANCE OF 70.59' TO A POINT; THENCE CONTINUE EASTERLY ALONG SAID LINE, A
DISTANCE OF 197.22' TO A POINT IN THE CENTERLINE OF SAID RIGHT-OF-WAY; THENCE
SOUTH 12°07'51" WEST,A DISTANCE OF 77.00'TO A POINT;THENCE NORTH 77°52'09" WEST, A
DISTANCE OF 218.65' TO A POINT; THENCE CONTINUE WESTERLY ALONG SAID LINE, A
DISTANCE OF 70.59' TO A POINT; THENCE CONTINUE WESTERLY ALONG SAID LINE, A
DISTANCE OF 51.27' TO A POINT; THENCE CONTINUE WESTERLY ALONG SAID LINE, A
DISTANCE OF 60.71'TO A POINT ON THE WESTERLY EASEMENT OF A SANITARY SEWER LINE;
THENCE WITH THE WESTERLY EASEMENT LINE,SOUTH 21 *55'40"WEST,A DISTANCE OF 10.31'
TO A POINT; THENCE LEAVING THE EASEMENT OF THE SANITARY SEWER LINE, SOUTH
51°18'09" EAST, A DISTANCE OF 70.61' TO A POINT; THENCE CONTINUE SOUTHEASTERLY
ALONG SAID LINE, A DISTANCE OF 18.46' TO A POINT; THENCE SOUTH 77°52'09" EAST, A
DISTANCE OF 20.15' TO A POINT; THENCE CONTINUE EASTERLY ALONG SAID LINE, A
DISTANCE OF 70.59' TO A POINT; THENCE CONTINUE EASTERLY ALONG SAID LINE, A
DISTANCE OF 175.11'TO A POINT ON THE EDGE OF LAKE WYLIE;THENCE WITH THE EDGE OF
LAKE WYLIE THE FOLLOWING 39 CALLS: 1)SOUTH 60°04'38"WEST,29.20'TO A POINT;2)SOUTH
48°35'58" WEST, 45.58' TO A POINT; 3) SOUTH 61 °25'42" WEST, 62.91' TO A POINT; 4) SOUTH
39°37'16" WEST, 126.72' TO A POINT; 5) SOUTH 44°25'50" WEST, 125.94' TO A POINT; 6) SOUTH
39°09'06" WEST, 87.69' TO A POINT; 7) SOUTH 29°36'40" WEST, 43.08' TO A POINT; 8) SOUTH
29°36'40" WEST, 55.14' TO A POINT; 9) SOUTH 20°11'33" WEST, 72.27' TO A POINT; 10) SOUTH
12°09'19" EAST, 72.53' TO A POINT; 11) SOUTH 12°09'19" EAST , 15.08' TO A POINT; 12) SOUTH
26°52'06" EAST, 45.55' TO A POINT; 13) SOUTH 04°00'11" EAST, 48.49' TO A POINT; 14) SOUTH
14°38'30" WEST, 31.58' TO A POINT; 15) SOUTH 26°06'58" WEST, 23.46' TO A POINT; 16) SOUTH
04°03'44" WEST, 14.21' TO A POINT; 17) SOUTH 27°55'56" WEST, 48.20' TO A POINT; 18) SOUTH
70°07'32" WEST, 88.75' TO A POINT; 19) SOUTH 84°24'56" WEST, 80.48' TO A POINT; 20) SOUTH
78°00'24" WEST, 64.31' TO A POINT; 21) SOUTH 88°03'02" WEST, 57.87' TO A POINT; 22) SOUTH
65°00'43" WEST, 104.61' TO A POINT; 23)NORTH 58°10'47" WEST, 18.93' TO A POINT;24) SOUTH
70°36'5711 WEST, 157.30'TO A POINT;25)SOUTH 35°05'361 I WEST,26.68'TO A POINT;26)SOUTH
60°29'051 I EAST, 61.50'TO A POINT; 27) SOUTH 43°55'2611 EAST, 47.79'TO A POINT; 28) SOUTH
01°26'5511 WEST,47.56' TO A POINT; 29) SOUTH 15°33'0811 EAST, 54.36'TO A POINT; 30) SOUTH
33°51'1211 WEST, 69.70'TO A POINT; 31) SOUTH 44°16'4811 WEST, 71.80'TO A POINT; 32) SOUTH
46°34'5811 WEST,30.26'TO A POINT; 33) SOUTH 81°26'4711 WEST,27.78'TO A POINT; 34) SOUTH
28°37'0111 WEST, 136.1T TO A POINT;35)SOUTH 52°24'1411 WEST,46.86'TO A POINT;36)NORTH
41°44'4711 WEST,31.52'TO A POINT; 37) SOUTH 02°01'3111 WEST, 31.76'TO A POINT; 38) SOUTH
63°35'2511 WEST,74.51'TO A POINT;AND 39)SOUTH 81 '47'4011 WEST,28.44'TO A POINT ON THE
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EDGE OF LAKE WYLIE;THENCE LEAVING LAKE WYLIE,NORTH 88°49'0511 WEST,A DISTANCE
OF 242.86' TO A POINT; THENCE SOUTH 82°37'1211 WEST, A DISTANCE OF 87.77' TO A POINT;
THENCE NORTH 07°10'5811 WEST, A DISTANCE OF 180.23' TO A POINT; THENCE SOUTH
82°49'0211 WEST, A DISTANCE OF 106.00' TO A POINT ON THE RIGHT-OF-WAY OF LA CREMA
DRIVE;THENCE WITH THE RIGHT-OF-WAY OF LA CREMA DRIVE THE FOLLOWING 3 CALLS: 1)
NORTH 07°10'5811 WEST,26.13'TO A POINT;2)NORTH 10°43'4711 WEST,21.65'TO A POINT;AND
3)NORTH 14°16'3611 WEST,234.74'TO A POINT; THENCE LEAVING THE RIGHT-OF-WAY OF LA
CREMA DRIVE,NORTH 74°09'4411 EAST,A DISTANCE OF 145.54'TO A POINT;THENCE NORTH 61
°32'5511 EAST,A DISTANCE OF 89.23'TO A POINT;THENCE NORTH 57°40'3811 EAST,A DISTANCE
OF 65.00' TO A POINT; THENCE NORTH 49°47'3711 EAST, A DISTANCE OF 101.94' TO A POINT;
THENCE NORTH 29°15'4911 EAST,A DISTANCE OF 109.57 TO A POINT;THENCE NORTH 07°51'2911
EAST, A DISTANCE OF 109.57' TO A POINT; THENCE SOUTH 80°24'4611 EAST, A DISTANCE OF
300.57'TO A POINT;THENCE NORTH 44°14'141 I WEST,A DISTANCE OF 536.58'TO THE POINT OF
BEGINNING. CONTAINING 24.18 ACRES (1,053,273.46 SQUARE FEET).
BEING ALL OF PARCEL 10 DESCRIBED IN THE DEED TO REO FUNDING SOLUTIONS,III,LLC,
RECORDED OCTOBER 25, 2012, IN BOOK 27768, PAGES 162-175, OF THE MECKLENBURG
COUNTY REGISTER OF DEEDS.
TRACT THREE:
BEING ALL OF THAT CERTAIN LOT,PIECE OR PARCEL OF LAND LYING,SITUATE AND BEING IN
MECKLENBURG COUNTY,NORTH CAROLINA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:
BEGINNING AT A POINT AT THE INTERSECTION OF THE WESTERLY MARGIN OF THE SEWER
EASEMENT AND THE D R HORTON(PID #11322179)AND REO FUNDING SOLUTIONS III LLC (PID
#I 1322180)LINE,POINT BEING LOCATED NORTH 09°21 '2611 EAST A DISTANCE OF 992.75'
FROM A#5 REBAR 311 BELOW GRADE AT THE NORTH EASTERLY CORNER OF LOT 400
RECORDED IN MAP BOOK 57 PAGE 238 OF THE MECKLENBURG COUNTY REGISTER OF DEEDS,
HAVING NC GRID COORDINATES NORTHING: 543,666.99'&EASTING: 1,405,732.54' ;THENCE
FROM THE POINT OF BEGINNING NORTH 46°53'5311 EAST A DISTANCE OF 185.87'TO A POINT;
THENCE SOUTH 35°25'3911 EAST A DISTANCE OF 80.51' TO A POINT;THENCE WITH A CURVE
TURNING TO THE LEFT WITH A RADIUS OF 125.00', WITH AN ARC LENGTH OF 78.65',WITH A
CHORD BEARING OF SOUTH 53°27'0711•EAST, WITH A CHORD LENGTH OF 77.36',TO A POINT;
THENCE SOUTH 71 °28'36" EAST A DISTANCE OF 123.23'TO A POINT; THENCE WITH A CURVE
TURNING TO THE LEFT WITH A RADIUS OF 125.00', WITH AN ARC LENGTH OF 152.09', WITH A
CHORD BEARING OF NORTH 73°40'0411 EAST,WITH A CHORD LENGTH OF 142.88',TO A POINT;
THENCE NORTH 38°48'4311 EAST A DISTANCE OF 216.92'TO A POINT; THENCE SOUTH 51
°47'5211 EAST A DISTANCE OF 250.06' TO A POINT; THENCE NORTH 37°01 '2511 EAST A
DISTANCE OF 390.34'TO A POINT;THENCE NORTH 21 "56'3211 EAST A DISTANCE OF 118.60'TO
A POINT; THENCE SOUTH 77°50'25" EAST A DISTANCE OF 15.22' TO A POINT; THENCE SOUTH 21
°56'32" WEST A DISTANCE OF 123.18'TO A POINT; THENCE SOUTH 37°01 '2511 WEST A
DISTANCE OF 407.64' TO A POINT;THENCE NORTH 51 °47'5211 WEST A DISTANCE OF 215.53'TO
A POINT; THENCE SOUTH 38°48'4311 WEST A DISTANCE OF 202.44'TO A POINT;THENCE WITH
A CURVE TURNING TO THE RIGHT WITH A RADIUS OF 175.00',WITH AN ARC LENGTH OF
212.92', WITH A CHORD BEARING OF SOUTH 73°40'0411 WEST,WITH A CHORD LENGTH OF
200.03',TO A POINT; THENCE NORTH 71 "28'3611 WEST A DISTANCE OF 123.23'TO A POINT;
THENCE WITH A CURVE TURNING TO THE RIGHT WITH A RADIUS OF 175.00', WITH AN ARC
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6

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•
LENGTH OF 110.11 ', WITH A CHORD BEARING OF NORTH 53°27'07" WEST, WITH A CHORD
LENGTH OF 108.30', TO A POINT; THENCE NORTH 35°25'3911 WEST A DISTANCE OF 58.64'TO A
POINT;THENCE SOUTH 46°53'5311 WEST A DISTANCE OF 131.16'TO A POINT;THENCE SOUTH
44°13'2211 EAST A DISTANCE OF 536.59'TO A POINT;THENCE NORTH 80°23'5411 WEST A
DISTANCE OF 300.57'TO A POINT; THENCE NORTH 13°31 '5911 WEST A DISTANCE OF 109.57'TO
A POINT; THENCE NORTH 32°27'2911 WEST A DISTANCE OF91.77' TO A POINT; THENCE NORTH
37°03'041 I WEST A DISTANCE OF 635.08'TO A POINT; THENCE SOUTH 52°56'5611 WEST A
DISTANCE OF 45.00'TO A POINT; THENCE NORTH 37°03'0411 WEST A DISTANCE OF 120.00'TO A
POINT; THENCE NORTH 52°56'5611 EAST A DISTANCE OF 51.42'TO A POINT; THENCE WITH A
CURVE TURNING TO THE RIGHT WITH A RADIUS OF 125.00', WITH AN ARC LENGTH OF 18.75',
WITH A CHORD BEARING OF NORTH 57°14'4811 EAST, WITH A CHORD LENGTH OF 18.73', TO A
POINT; THENCE SOUTH 35°57'0811 EAST A DISTANCE OF 105.49'TO A POINT;THENCE SOUTH
47°36'1711 EAST A DISTANCE OF 32.68'TO A POINT;THENCE SOUTH 39°51 '5711 EAST A
DISTANCE OF 81.3 7' TO A POINT; THENCE SOUTH 44 ° 11 '30" EAST A DISTANCE OF 37.81'
TO A POINT;THENCE SOUTH 39°23'0511 EAST A DISTANCE OF 102.81' TO A POINT; THENCE
SOUTH 41 '44'3211 EAST A DISTANCE OF 149.06'TO A POINT; THENCE SOUTH 52°31'4711 EAST A
DISTANCE OF 113.57'TO A POINT, WHICH IS THE POINT OF BEGINNING, HAVING AN AREA OF
137085 SQUARE FEET, 3.147 ACRES.
BEING THE PROPERTY DESCRIBED IN THAT DEED FROM D.R. HORTON, INC., TO REO
FUNDING SOLUTIONS III,LLC,RECORDED JULY 19,2019,IN BOOK 33683 AT PAGE 799,IN
THE MECKLENBURG COUNTY REGISTER OF DEEDS.
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EXHIBIT B
to Special Warranty Deed
Permitted Encumbrances
1. The lien of all taxes for the year 2020,which are due and payable but not yet delinquent,and subsequent years.
2. Declaration of covenants,conditions,restrictions,easements,chimes,assessments,liens,options,rights of or to
purchase,and rights of first refusal(but omitting any covenants or restrictions,if any,based upon race,color,religion,
sex,sexual orientation,familial status,marital status,disability,handicap,national origin,ancestry,or source of
income,as set forth in applicable state or federal laws,except to the extent that said covenant or restriction is permitted
by applicable law)recorded in Book 23615,Page 516;Book 23622,Page 1;Book 23621,Page 973;Book 23643,Page
588;Book 26612,Page 137;Book 5002,Page 81;Book 25709,Page 713;Book 26063,Page 771;Book 26303,Page
879;Book 26577,Page 677;Book 27106,Page 223 and any amendments and/or supplements thereto.
3. Building restriction lines,easements,and any other matters shown on map or plat recorded in Plat Book 44 at
Pages 351-357.
4. Easement(s)and right(s)-of-way for roads or public/private utilities.
5. Easement(s)or rights)-of--way in favor of Duke Power Company recorded in Book 5106,Page 24;Book 3262,Page
293;Book 1582 at Page 93;Book 1856,Page 167;Book 1582,Page 100;Book 3186,Page 521;and Book 1868,Page
123 .
6. Title to that portion of the Land within the bounds of Amos Smith Road,Midsomer Road,Bright Road,LaCrema
Drive and River Walk Way.
7. Utility building,frame building and concrete drive encroach across southwesterly property line.
8. Rights or claims of parties in possession as tenants under unrecorded leases.
9. Title to that portion of the Land within any railroad right(s)-of-way,spur(s),siding(s), or easement(s).
10. Solid Waste Disposal Records and Demolition Landfill Sites described in instrument recorded in Book 5558 at Page
397 and Book 6113,Page 409.
11. Solid Waste Permit recorded in Book 6150,Page 276.
12. Right-Of-Way Agreement and Permanent and Perpetual Deed of Easement recorded in Book 9487,Page 377.
13. Easement(s)or right(s)-of-way in favor of Duke Energy Corporation recorded in Book 21960,Page 349;and Book
22339 at Page 919.
14. Easement(s)or right(s)-of way in favor of City of Charlotte recorded in Book 23619,Page 286;and Book 23637,
Page 581.
15. Permanent Storm Water Drainage Easement between TDW Holdings,LLC and D.R.Horton,Inc.recorded in Book
24237 at Page 490 of the Registry.
16. Fence and Landscape Easement Agreement between TDW Holdings,LLC and D.R.Horton, Inc.recorded in Book
24237 at Page 505 of the Registry
17. Discrepancies,variances,shortages or overages in the acreage of the Land.
18. Permanent Sanitary Sewer Easement Agreement between Provident Development Group,Inc.,TDW Holdings,LLC,
and D.R.Horton, Inc.recorded February 29,2008 in Book 23442 at Page 554,as amended by Amendment to
Permanent Sanitary Sewer Easement Agreement recorded March 28,2008 in Book 23560 at Page 272 of the Registry.
00276-00'7/00260323
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19. Annexation Declaration for Vineyards on Lake Wylie recorded in Book 26303,page 879,Mecklenburg County
Registry.
20. Easement(s)or right(s)-of-way in favor of Colonial Pipeline Company recorded in Book 4058,Page 383.
21. Easement(s)or right(s)-of-way in favor of Department of Transportation recorded in Book 4149,Page 539.
22. Easement(s)or right(s)-of-way in favor of Piedmont Natural Gas,Inc.recorded in Book 4718,Page 299.
23. Right-Of-Way Agreement recorded in Book 3635 at Page 72.
24. Accretion,erosion,reliction,and avulsion associated with,and riparian rights of others incidental to,any creeks,
streams,branches,or rivers coursing or forming any boundary to the Land.
25. Access and right of way easement recorded in Book 3635,Page 75.
26. Easement(s)or right(s)-of-way in favor of State Highway Commission recorded in Book 2453,Page 384;Book
2453,Page 401.
27. Subject to exceptions,reservations,rights,privileges and easements set out in that Deed recorded in Book 3146,Page
165.
28. Rights of others in and to Lake Wylie,or any coursing water leading thereto or therefrom.This Policy does not
insure any rights in or to said body of water as being incident to the ownership of the Land,including any right to
have said body of water maintained at any specific level.
29. A perpetual easement in favor of Duke Power Company(and it successors and assigns)to flood the property up to the
580-foot contour line.
30. Any discrepancy,conflict,matter affecting access,shortage in area or boundary lines,encroachment,encumbrance,
violation,variation,overlap,setback,easement or claims of easement,riparian right,and title to land within roads,
ways,railroads,watercourses,burial grounds,marshes,dredged or filled areas or land below the mean high-water
mark or within the bounds of any adjoining body of water,or other adverse circumstance affecting the Title that
would be disclosed by a current inspection and accurate and complete land survey of the Land.
00276-007/00260323
9

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EXHIBIT B
Initial Rules and Regulations
The following restrictions shall apply to all of the Townhome Community until such time as they
are amended, modified, repealed,or limited pursuant to Article IV of the Declaration:
1. General. The Townhome Community shall be used only for residential, recreational, and
related purposes (which may include, without limitation, an information center and/or a sales office for
Declarant to assist in the sale of any property or portion thereof as described in Exhibit A,offices for any
property manager retained by the Townhome Association, and business offices for Declarant or the
Townhome Association)consistent with this Declaration and any amendments hereto.
2. Restricted Activities. The following activities are prohibited within the Townhome
Community unless expressly authorized by,and then subject to such conditions as the Board may impose:
(a) Parking any vehicles on streets or thoroughfares within the Townhome Community or
parking of commercial vehicles or equipment, mobile homes, recreational vehicles, golf carts, boats and
other watercraft, trailers, stored vehicles, or inoperable vehicles in places other than enclosed garages;
however, construction, service, and delivery vehicles shall be exempt from this provision during daylight
hours for such period of time as is reasonably necessary to provide service or to make a delivery to a
Townhome Lot or the Townhome Common Area;
(b) Raising, breeding or keeping animals, livestock or poultry of any kind, except that a
reasonable number of dogs, cats (the combined number of dogs and cats not to exceed three) or other
usual and common household pets may be permitted on a Townhome Lot. Any animal which, makes
objectionable noise or, in the Board's judgment,constitutes a nuisance or inconvenience to the occupants
of other Townhome Lots, shall be removed by the owner upon the Board's request. If the pet owner fails
to honor such request, the Board may remove the pet. Rottweilers, pit bulls, chows and other aggressive
breeds of dogs shall not be allowed within the Townhome Community. Dogs shall be kept on a leash or
otherwise confined in a manner acceptable to the Board whenever outside the dwelling. Owners shall
clean up behind any Pet while walking such Pet on any Townhome Common Area. Pets shall be
registered, licensed,and inoculated as required by law;
(c) Any activity that emits foul or obnoxious odors outside the Townhome Lot or creates
noise or other conditions, which tend to disturb the peace or threaten the safety of the occupants of other
Townhome Lots;
(d) Any activity that violates local, state, or federal laws or regulations; provided, the
Board shall have no obligation to take enforcement action in the event of a violation;
(e) Pursuit of hobbies or other activities, which tend to cause an unclean, unhealthy, or
untidy condition to exist outside of enclosed structures on the Townhome Lot;

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(f) Any noxious or offensive activity (including, without limitation, barking dogs) which
in the reasonable determination of the Board tends to cause embarrassment, discomfort, annoyance, or
nuisance to persons using the Townhome Common Area or to the occupants of other Townhome Lots;
(g) Outside burning of trash, leaves, debris, or other materials, except during the normal
course of constructing a dwelling on a Townhome Lot;
(h) Use or discharge of any radio, loudspeaker, horn, whistle, bell,or other sound device so
as to be audible to occupants of other Townhome Lots,except alarm devices used exclusively for security
purposes;
(i) Use and discharge of firecrackers and other fireworks;
(j) Dumping grass clippings, leaves, or other debris, petroleum products, fertilizers, or
other potentially hazardous or toxic substances in any drainage ditch, stream, pond, or lake, or elsewhere
within the Townhome Community, except that fertilizers may be applied to landscaping on Townhome
Lots provided care is taken to minimize runoff, and Declarant and builders may dump and bury rocks and
trees removed from a building site on such building site;
(k) Accumulation of rubbish, trash, or garbage except between regular garbage pick ups,
and then only in approved containers. Such containers shall be either screened from view or kept inside,
except as reasonably necessary for garbage pick ups;
(1) Obstruction or rechanneling drainage flows after location and installation of drainage
swales, storm sewers, or storm drains, except that Declarant and the Townhome Association shall have
such right; provided, the exercise of such right shall not materially diminish the value of or unreasonably
interfere with the use of any Townhome Lot without the Owner's consent;
(m) Subdivision of a Townhome Lot into two or more Townhome Lots, or changing the
boundary lines of any Townhome Lot after a subdivision plat including such Townhome Lot has been
approved and recorded, except that Declarant shall be permitted to subdivide or replat Townhome Lots it
owns;
(n) Swimming, boating, use of personal flotation devices, or other active use of lakes,
ponds, streams, or other bodies of water within the Townhome Community,except as otherwise permitted
in the Declaration and except that fishing from the shore shall be permitted with appropriate licenses. The
Townhome Association shall not be responsible for anyloss, damage, or injuryto anyperson or property
Po g > P P Y
arising out of the authorized or unauthorized use of rivers, lakes, ponds, streams, or other bodies of water
within or adjacent to the Townhome Community;
(o) Use of any Townhome Lot for operation of a timesharing, fraction-sharing, or similar
program whereby the right to exclusive use of the Townhome Lot rotates among participants in the
program on a fixed or floating time schedule over a period of years, except that Declarant and its assigns
may operate such a program;
(p) Discharge of firearms; provided, the Board shall have no obligation to take action to
prevent or stop such discharge;
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(q) On-site storage of gasoline, heating, or other fuels, except that a reasonable amount of
fuel may be stored on each Townhome Lot for emergency purposes and operation of lawn mowers and
similar tools or equipment, and the Townhome Association shall be permitted to store fuel for operation
of maintenance vehicles,generators, and similar equipment;
•
(r) Any business, trade, or similar activity, except that an Owner or occupant residing in a
Townhome Lot may conduct business activities within the Townhome Lot so long as: (i) the existence or
operation of the business activity is not apparent or detectable by sight, sound, or smell from outside the
Townhome Lot; (ii) the business activity conforms to all zoning requirements for the Townhome
Community; (iii) the business activity does not involve door-to-door solicitation of residents of the
Townhome Community; (iv) the business activity does not, in the Board's judgment, generate a level of
vehicular or pedestrian traffic or a number of vehicles being parked within the Townhome Community
which is noticeably greater than that which is typical of Townhome Lots in which no business activity is
being conducted; and (v) the business activity is consistent with the residential character of the
Townhome Community and does not constitute a nuisance, or a hazardous or offensive use, or threaten
the security or safety of other residents within the Townhome Community, as may be determined in the
Board's sole discretion.
The terms "business" and "trade," as used in this provision, shall be construed to have their
ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or
activity undertaken on an ongoing basis which involves the provision of goods or services to persons
other than the provider's family and for which the provider receives a fee,compensation, or other form of
consideration, regardless of whether: (i) such activity is engaged in full or part-time, (ii) such activity is
intended to or does generate a profit, or(iii) a license is required.
Leasing of a Townhome Lot shall not be considered a business or trade within the meaning of
this subsection. This subsection shall not apply to any activity conducted by Declarant or a builder
approved by Declarant with respect to its development and sale of the Townhome Community or its use
of any Townhome Lots which it owns within the Townhome Community;
(s) Capturing, trapping, or killing of wildlife within the Townhome Community, except in
circumstances posing an imminent threat to the safety of persons using the Townhome Community;
(t) Any activities which materially disturb or destroy the vegetation, wildlife, wetlands, or
air quality within the Townhome Community;
(u) Conversion of any carport or garage to finished space for use as an apartment or other
integral part of the living area on any Townhome Lot without prior approval pursuant to Article V;
(v) Operation of motorized vehicles on pathways or trails maintained by the Townhome
Association;
(w) Any construction, erection, placement, or modification of any thing, permanently or
temporarily, on the outside portions of the Townhome Lot, whether such portion is improved or
unimproved, except in strict compliance with the provisions of Article V of the Declaration. This shall
include, without limitation, landscaped or grassed areas; signs; basketball hoops, swing sets, and similar
sports and play equipment; clotheslines; garbage cans; woodpiles; and hedges, walls, dog runs, animal
pens,or fences of any kind;

•
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(x) Use of exterior decorative lights, including holiday displays, with a light bulb color
other than white; furthermore, if a holiday display creates a significantly increased traffic flow within the
Townhome Community, the Townhome Lots Owner or occupant responsible for such display shall
remove it upon request of the Board and if the Owner or occupant does not remove such display within a
reasonable time, the Board may remove the display;and
(y) Hanging of sheets, towels,clothes or laundry in windows or anywhere on a Townhome
Lot so as to be visible from any roadway or any other Townhome Lot.
3. Prohibited Conditions. The following shall be prohibited within the Townhome Community:
(a) Plants, animals, devices, or other things of any sort whose activities or existence in any
way is noxious, dangerous,unsightly,unpleasant,or of a nature as may diminish or destroy the enjoyment
of the Townhome Community;
(b) Structures, equipment, or other items on the exterior portions of a Townhome Lot which
have become rusty,dilapidated,or otherwise fallen into disrepair;
(c) Installation of any sprinkler or irrigation systems or wells of any type, other than those
initially installed by Declarant or a Declarant approved builder, which draw upon water from lakes,
creeks, streams, rivers, ponds, wetlands, canals, or other ground or surface waters within the Townhome
Community,except that Declarant and the Townhome Association shall have the right to draw water from
such sources;
(d) Satellite dishes, antennas, and similar devices for the transmission of television, radio,
satellite, or other signals of any kind,except that Declarant and the Townhome Association shall have the
right, without obligation, to erect or install and maintain any such apparatus for the benefit of all or a
portion of the Townhome Community;and (i)satellite dishes designed to receive direct broadcast satellite
service which are one meter or less in diameter; (ii) satellite dishes designed to receive video
programming services via multi point distribution services which are one meter or less in diameter or
diagonal measurement; or(iii)antennas designed to receive television broadcast signals((i), (ii),and (iii),
collectively, "Permitted Devices") shall be permitted; however, the placement of any such Permitted
Device must be approved in advance in writing by Declarant or the Townhome Association;and
(e) Installation of exterior decorative items, including but not limited to statuary, fountains or
wishing balls, but not including flags which are displayed on a flagpole and permitted exterior decorative
lights.
4. Leasing of Townhome Lots. "Leasing," for purposes of this Paragraph, is defined as regular,
exclusive occupancy of a Townhome Lot by any person, other than the Owner for which the Owner
receives any consideration or benefit, including, but not limited to, a fee, service,gratuity,or emolument.
All leases shall be in writing. The Board may require a minimum lease term; however, in no case shall
such term be shorter than six (6) months. No Owner shall lease any Townhome Lot without first
contracting a professional, licensed property management company to manage the Townhome Lot and the
lease, and without first providing the Townhome Association with a copy of that contract. No owner
shall lease any Townhome Lot without first providing all lessees with copies of the Governing
Documents. Each lease shall require all lessees to acknowledge receipt of copies of all of the Governing
Documents and to comply with and adhere to all of the Governing Documents. A true copy of each
37

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executed lease, together with such additional information as may be required by the Board,shall be given
to the Board by the Townhome Lot Owner within ten(10)days of execution of the lease.

SEWER SYSTEM PERMIT OWNERSHIP/
NAME CHANGE
REDWOOD ROOKERY AT THE VINEYARDS
SECTION E : OPERATIONAL AGREEMENTS
COMPLETED HOA 01-15
PROCEEDS TO THE NEXT PAGE
REFER TO `SECTION C' FOR DECLARATIONS

STATE OF NORTH CAROLINA
COUNTY OF MECKLENBURG Permit No. WQ0041867
OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (di) and entered into this -J�� day of
, by and between the North Carolina Environmental Management
Commission, an agency of the State of North Carolina, hereinafter known as the COMMISSION; and
REDWOOD ROOKERY TOWNHOME ASSOCIATION, INC. , a non-profit corporation organized
and existing under and by virtue of the laws of the State of North Carolina, hereinafter known as the
ASSOCIATION.
WITNESSETH:
1. The ASSOCIATION was formed for the purpose, among others, of handling the property, affairs and
business of the development known as REDWOOD ROOKERY TOWNHOMES
(hereinafter the Development); of operating, maintaining, re-constructing and repairing the common
elements of the lands and improvements subject to unit ownership, including the wastewater collection
system with pumps, wastewater treatment works, and/or disposal facilities (hereinafter Disposal System);
and of collecting dues and assessment to provide funds for such operation, maintenance, re-construction
and repair.
2. The ASSOCIATION desires, to construct and/or operate a Disposal System to provide sanitary sewage
disposal to serve the Development on said lands.
3. The ASSOCIATION has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct,maintain, and/or operate the Disposal System.
4. The Development was created subject to unit ownership in the dwellings units, other improvements and
lands through filing of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter
47C of the North Carolina General Statutes.
5. The COMMISSION desires to assure that the Disposal System of the Development is properly
constructed, maintained and operated in accordance with law and permit provisions in order to protect the
quality of the waters of the State and the public interest therein.
NOW, THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto,the COMMISSION and ASSOCIATION do hereby mutually agree as follows:
1. The ASSOCIATION shall construct the Disposal System and/or make any additions or modifications to
the Disposal System in accordance with the permit and plans and specifications hereafter issued and
approved by the COMMISSION, and shall thereafter properly operate and maintain such systems and
facilities in accordance with applicable permit provisions and law.
2. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System
and appurtenances thereto are part of the common elements and shall thereafter be properly maintained
and operated in conformity with law and the provisions of the permit for construction, operation, repair,
and maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire
wastewater treatment, collection and disposal system as a common element, which will receive the highest
priority for expenditures by the Association except for Federal, State, and local taxes and insurance.
FORM:HOA 01-15 Page 1 of 2

3. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System
will be maintained out of the common expenses. In order to assure that there shall be funds readily
available to repair, maintain, or construct the Disposal System beyond the routine operation and
maintenance expenses, the Declaration and Association Bylaws shall provide that a fund be created out of
the common expenses. Such fund shall be separate from the routine maintenance fund allocated for the
facility and shall be part of the yearly budget.
4. In the event the common expense allocation and separate fund(s) are not adequate for the construction,
repair, and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for
special assessments to cover such necessary costs. There shall be no limit on the amount of such
assessments, and the Declaration and Bylaws shall be provided such that special assessments can be made
as necessary at any time.
5. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development,the ASSOCIATION shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary easements as the
governmental unit may require as condition of accepting the Development's wastewater.
6. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the ASSOCIATION to enter into voluntary dissolution without having made adequate provision for the
continued proper maintenance, repair and operation of its Disposal System, the ASSOCIATION shall
provide in the ASSOCIATION Bylaws that the ASSOCIATION shall not enter into voluntary dissolution
without first having transferred its said system and facilities to some person, corporation or other entity
acceptable to and approved by the COMMISSION by the issuance of a permit.
7. The ASSOCIATION shall not transfer, convey, assign or otherwise relinquish or release its responsibility
for the operation and maintenance of its Disposal System until a permit has been reissued to the
ASSOCIATION's successor.
8. The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, and 7 above shall be conditions of any
permit issued by the COMMISSION to the ASSOCIATION for the construction, maintenance, repair and
operation of the Disposal System.
9. A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration
is filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of
the Association.
IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized
representative of the parties hereto on the day and year written as indicated by each of the parties named below:
FOR THE ENVIRONMENTAL REDWOOD ROOKERY TOWNHOME ASSOCIATION, INC.
MANAGEMENT COMMISSION Name of ASSOCIATION
By: 44D--")
S. Jay Zimmerman, Director (S..nature)
Division of Water Resources
Pik. EAThNe34-ZCikl - 1-DEgCS T
Print Name and Title
21512c
(Date) (Date)
FORM:HOA 01-15 Page 2 of 2