WQ0023580_More Information Received_20230829

Initial Review
Reviewer
nathaniel.thorn burg
Is this submittal an application? (Excluding additional information.) *
Yes No
If not an application what is the submittal type?* Annual Report
Residual Annual Report
Additional Information
Other
Permit Number (IR) * W00023580
Applicant/Permittee Cove Key Association, Inc.
Email Notifications
Does this need review by the hydrogeologist? * O Yes OO No
Regional Office
CO Reviewer
Admin Reviewer

Submittal Form
Project Contact Information
Please provide information on the person to be contacted by NDB Staff regarding electronic submittal, confirmation of receipt, and other correspondence.
Name* Tim Bannister
Email Address*
[e-mail]
Project Information
.........................
Application/Document Type*
New (Fee Required)
Modification - Major (Fee Required)
Renewal with Major Modification (Fee
Required)
Annual Report
Additional Information
Other
Phone Number*
7042017514
Modification - Minor
Renewal
GW-59, NDMR, NDMLR, NDAR-1,
N DAR-2
Residual Annual Report
Change of Ownership
We no longer accept these monitoring reports through this portal. Please click on the link below and it will take you to the correct form.
https://edoes.deq.nc.gov/Forms/NonDischarge_Monitoring_Report
Permit Type:* Wastewater Irrigation High -Rate Infiltration
Other Wastewater Reclaimed Water
Closed -Loop Recycle Residuals
Single -Family Residence Wastewater Other
Irrigation
Permit Number:* WQ0023580
Has Current Existing permit number
Applicant/Permittee Address* P.O. Box 2307, Cornelius, NC 28031
Facility Name* Cove Key Townhomes on Lake Norman WWTP
Please provide comments/notes on your current submittal below.
Please see the attached documents that answer the questions sent to Cove Key Association, Inc. on August 25, 2023. The application number is
WQ0023580.
The single PDF has three sections. A letter answering all questions, next, the CCR's (with an "un-signed copy of the Articles of Incorporation," and, a
signed copy of the Articles of Incorporation.
At this time, paper copies are no longer required. If you have any questions about what is required, please contact Nathaniel Thornburg
at [e-mail].
Please attach all information required or requested for this submittal to be reviewed here.
(Application Form, Engineering Plans, Specifications, Calculations, Etc.)
Cove Key answers.pdf 52.99MB
Upload only 1 PDF document (less than 250 MB). Multiple documents must be combined into one PDF file unless file is larger
than upload limit.
* By checking this box, I acknowledge that I understand the application will not be accepted for pre -review until the fee (if required) has
been received by the Non -Discharge Branch. Application fees must be submitted by check or money order and made payable to the
North Carolina Department of Environmental Quality (NCDEQ). I also confirm that the uploaded document is a single PDF with all parts
of the application in correct order (as specified by the application).
Mail payment to:
NCDEQ — Division of Water Resources
Attn: Non -Discharge Branch
1617 Mail Service Center
Raleigh, NC 27699-1617
Signature

Submission Date 8/28/2023

August 27, 2023
Leah H. Parente, Geologist/Hydrogeologist
Division of Water Resources Non -Discharge Branch
North Carolina Department of Environmental Quality
RE: WQ0023580 - Cove Key Townhomes on Lake Norman WWTP - Additional Information Request
Dear Ms. Parente,
Please see the below answers to the requested questions pertaining to the renewal application for
Cove Key Townhomes on Lake Norman continued operation of the WWTP dated 08/25/23.
A. A r_t_i_c_1_e_s_ _o f _I_nc_o_r_p_o_r_a_t_i_o_n_,_ _D_e_c_I_a_r_a_t_i_o_n_s,_ a n_d_
The Articles of Incorporation, Declarations, and By-laws for the Cove Key
Association, Inc. were not included in the renewal application package submitted for Permit
WQ0023580. Please submit a copy of the Articles of Incorporation, Declarations, and By-laws pursuant
to 15A NCAC 02T .0115(c). See attached information.
B. f a c i_I i t_y_ _D_e_s_c_r_i_p_t_i_o_n_ _ _1. During the site visit conducted on July 17, 2023,
Mooresville Regional Office staff were unable to determine the type of liner in the wet weather storage
lagoon. Please provide comment on the type of liner in the wet weather storage lagoon. The renewal
application is accurate pertaining to the two storage ponds (Section Vl Open -Atmosphere Structures)
based on past information about the facility. However, a mistake was made originally pertaining to
both the 5-day upset pond and the wet weather pond's descriptions and has been caried forward and
needs correcting as indicated on the renewal application. The wording on the original permit has the
descriptions swapped. The correct wording for the 5-day upset pond is a "36,600-gallon synthetically
lined." The correct wording for the wet weather storage pond is a "109,000-gallon clay lined."
C. A t # a_c h_m e_n t_ A_ _ _S_i_t_e_ _M_a_p_:_ _1. During the site visit conducted on duly 17,
2023, Mooresville Regional Office staff noted that the system would not allow irrigation and instead
was rerouting flow to the head of the plant. To maintain plant volume, the reclaimed water was being
diverted to the wet weather lagoon. At the time of the inspection, parts to repair the system had been
ordered. Please provide an update regarding the repairs to the system and current irrigation abilities.
As of 8/21/23 the repair to the irrigation system has been made and the system is now irrigating as
designed.
Tim Bannister - The Bannister Group, LLC / TCW Wastewater Mgmt. LLC
on behalf of Cove Key Town homes on Lake Norman
704-201-7514

P
CH Ii 523sxv1
Doe r
Recorded: Tvve:li/10/20CAP
0d6at 12:53:15 PM
Fee Amt: $203.00 Page i of 64
Iredell Countv. NC
Brenda D. Bell. Aedlster of Deeds
Ex1698 411-374
AMENDED AND RESTATED DECLARATION OF
COVE KEY CQNDQMNIUM
Filed for Record November j 0, 200S
Recorded in Book j6� Pages 3)), through 3? it
In the Office of the Register of Deeds for
Iredell County, North Carolina
Consisfing of 21 Numbered Pages with
Attached Exhibits A„ B, C, D, E, F and G
Prepared by and after recording mail to:
Timothy W. Gilbert
MOORE & VAN ALLEN PLLC
100 North Tryon Street, Suite 4700
Charlotte, North Carolina 28202

To Amended and Restated Declaration of Cove Ivey Condominium
ARTICLE I - DEFI IITiOW
1.1 Act.
1.2 Articles of Incorporation.
1.3 Association.
1.4 Board.
1.5 Building.
1.6 Bylaws.
1.7 Common Elements.
1.8. Common Expenses.
1.9 Condominium.
1.I0. Declarant.
1.11. Declarant Control Period.
1.12. First M2qgUe and First MortMee.
1.13. Limited Common Elements.
1.14. 0ccu aat.
1.15. Person.
1.16. Plans.
1.17. Plats.
1.18. Pro AY.
L19. Rules Mg Regulations.
1.20. Srecial Declarant Ruts.
1.21. Unit.
1.22. Unit Boundaries.
1.23 Unit Owner.
ARTICLE II— SUBMISSION OF PROPERTY TO THE ACT
2.1. Submission.
2.2. Name.
2.3. Division of RKgR= into Sm=tely Owned Units.
2.4. Alterations of Units.
2.5. Limited Common Elements.
2.6. Unit Allocations.
2.7. Encumbrances.
2.8. Condominium Ordinances.
2.9. Reservation of S ial Declarant Ri ts.
ARTICLE III -- EASEMENTS
3.1. Encroachments.
PKe
1
3
l
1
1
1
2
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3.2. Easements Throu h Vilalls.
3.3. Easements of Owners and Association With Respect to Common Elements.
3.4. Easements to Repair Maintain. Restore and Reconstruct,
3.5. Easements for Utilities.
3.6. Declarant's Easement
3.7. ement for Entrance Monumentation.
3.9 Easement for Waterside Improvements and Utilities
3.9. tin of gWgMe_n_t_s_bX the Executive Board.
3.10. Easements to Run With Land,
ARTICLE IV — RESTRICTIONS, CONDITIONS AND COVENANTS
4.1. Compliance with Declaration, ftlaws and Rules and Regulations.
4.2. Adtniaistration_of Condomminiurn.
4.3. U e Restriciiom.
4.4. Prohibited Uses.
4.5. Prohibitions and Use of Comm n Elements.
4.6. Shnlbbea.
4.7. Parldna.
4.8. Ste.
4.9. Declarmnt's Offices and Models.
4.10. Haaardous i7sv,and Waste.
4.11. Alterations of Common Elements.
4.12. Leases.
4.13. Television, Aerials, Antennas and Satellite bishes.
4,14. Rules and Regplations.
4.15. Restrictions, Conditions and Covenants To Run With Land.
ARTICLE V — ASSESSEMENTS
5.1. Assessment Liens.
5.2. Personal Liability of Transferees: Statement: Liability of First MQrtg�.
5.3. Prohibition of Exemption from Liability for_ Contribution Toward Common
Expenses. - ry
ARTICLE VI — MANAGEMENT, MAINTENANCE, REPAIRS, REPLACEMENTS,
ALTERATIONS AND IMPROVEMENTS
6.1. Common Elements.
6.2. Common ENRMW Agggiated with Limited Common Elements or Senefltiin
Less Than All Units.
6.3. Units.
6.4. Ri t of Entry.
6.5. PIALtioning.
6.6. Conveyance of or Lien Against Common Elements.
6.7. Nature of Interest in Unit.
ARTICLE VII - INSURANCE
CtlAEti1852752vi it
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$
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lI
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7.1. CssualtInsuranae.
15
7,2. Public Liability Insurance.
15
7.3. Fidelity Coverage.
16
7.4. Insurance Unavailable.
16
7.5. Mier Insurance.
16
7.6. Insurance Trustee.
16
7.7. Individual Policy for Unit Owners,
16
ARTICLE VIII — CASUALTY DAMAGE 17
ARTICLE IX - CONDEMNATION 17
ARTICLE X- TERMINATION 17
ARTICLE XI - AMENDMENT 17
ARTICLE)CI — RIGHTS OF FIRST MORTGAGEES 17
12.1. Amendments Materially AM tin First Mort&Kees. 17
12.2. Availability_ of Condominium Documents Books, Records „and „Financial
Statements. -- lg
12.3. Successors' Personal Obli or Delin uent Assessments. is
12.4. Rift of Action. 18
12.5. Rights of Notice. 18
12.6. Assessments. 19
12.7. 'Rights of First Mort ee- Insurance Proceeds or Condemnation Awards. 19
ARTICLE XIII — GENERAL PROVISIONS
19
13.1. Conflict with the Act; Severability.
19
13.2. Interpretation of Declaration.
19
13.3. Captions,
19
13.4. Exhibits.
19
13.5. Invalidi .
19
13.6, Waiver.
20
13.7. Law Controlling.
20

AMENDED AND RESTATED DECLARATION OF
COVE KEY CONDOMINIUM
THIS AMENDED AND RESTATED DECLARATION (the"Declaration"), made this
day of November, 2005 by DAVIDSON DEVELOPMENT COMPANY, LLC
("Developer"), pursuant to the North Carolina Condominium Act, Chapter 47C, North Carolina
General Statutes ("Act')
KITNESSETH:
WIW-REAS, Developer is the owner in fee simple of certain real estate situated in the
County of Iredell, and State of North Carolina, more particularly described on Exhibit A attached
hereto and made a part hereof, together with all buildings and improvements now or hereafter
constructed or located thereon, and all rights, privileges, easements and appurtenances belonging
to or in any way pertaining to said real estate, and
WHEREAS, Developer submitted all of said property to the Act pursuant to Declaration
of Cove Key Condominium recorded April 12, 2005 in Book 1637 at Page 263 in the Iredeli
County Public Registry (the "Original Declaration!); and
WHEREAS, Developer desires to amend and restate the terms and provisions of the
Original Declaration in its entirety.
NOW, THEREFORE, Developer, as the owner of said property, hereby declares that the
Original Declaration is hereby amended and restated in its entirety as follows:
ARTICLE I
Dentitions
Definitions. As used herein, the following words and terms shall have the following
meanings:
I.I. Act. The North Carolina Condominium Act, Chapter 47C, North Carolina
General Statutes.
1.2. Articles of Incorporation. The articles of incorporation of the Association filed
with the Office of the Secretary of State of North Carolina which are incorporated herein and
made a part hereof by this reference, and attached as Exhibit G.
1.3. Assoc-. Cove Key Association, Inc., a nonprofit corporation organized under
Section 47C-3-10I of the Act.
1.4. Board. The Executive Board of the Association.
1.5. 13uildin . One or more improved structures containing the Units and which
comprises a portion of the Property and is more particularly described in the Plaits.

1.6. Bylaws. The Bylaws of the Association which are hereby incorporated herein and
made a part hereof by this reference, and attached as Exhibit, B.
1.7. Common Elements. Ali portions of the Condominium except the Units. Limited
Common Elements are Common Elements. The Common Elements include all portions of the
Condominium that are not part of the Units, including, without limitation, the land,
improvements that are not part of the Units including all foundations, columns, load bearing
walls, girders, beams, supports, walls, roofs, corridors, lobbies, stairs, elevators and elevator
shads, fire escapes, and entrances and exits of the Building, the yards, gardens, parking areas and
driveways and all installations of central services for the furnishing of utilities.
1.8. C mmon Ex es. Expenditures made or liabilities incurred by or on behalf of
the Association, together with any allocations to reserves.
1.9. Condominium. The condominium created by this Declaration.
1.10. Declarant Developer and (i) any other person who has executed this Declaration,
or who hereafter executes an amendment to this Declaration except First Mortgagees and except
persons whose interests in the Property will not be conveyed to Unit Owners, and (ii) any person
who succeeds to any Special Declarant Rights as defined in Section 47C-1-103(23) of the Act.
1.11. Declarant Control Period. The period commencing on the date hereof and
continuing until the earlier of (i) the date two (2) years after all Declarants have ceased to offer
Units for sale in the ordinary course of business, or (ii) the date upon which Declarant surrenders
control of the Condominium, or (iii) the date one hundred twenty (120) days after the Declarant
has conveyed seventy-five percent (75%) of the Units to Unit Owners other than a Declarant.
1.12. First Morta e and F' Mo . A First Mortgage is a Mortgage or deed of
trust which has been recorded so as to give constructive notice thereof, and which is a first lien
on the Units descn'bed therein. A First Mortgagee is the holder, from time to time, of a First
Mortgage as shown by the records of the Office of the Register of Deeds for the county in which
the First Mortgage is recorded, including a purchaser at foreclosure sale upon foreclosure of a
First Mortgage until expiration of the mortgagor's period of redemption. if there be more than
one holder of a First Mortgage, they shall be considered as, and act as, one First Mortgagee for
all purposes under this Declaration and the Bylaws.
1.11 Limited Common Elements. Those portions of the Common Elements allocated
by this Declaration, the Plans or by operation of Section 47C-2-102(2) or (4) of the Act for the
exclusive use of one or more but fewer than all of the Units, to the exclusion of all other Units.
The Limited Common Elements shall include, but shall not be limited to, the following:
(a) Those portions of any chute, flue, duct, wire, conduit, bearing wall,
bearing column, or any other fixture lying partially within and partially without the
designated boundaries of a Unit serving exclusively that Unit shall be Limited Common
Elements allocated exclusively to that Unit; and
ctrnRVss nVI 2

(b) Any shutters, awnings, doorsteps, stoops, porches, balconies, patios, decks
and all exterior doors, windows, and skylights designed to serve a single Unit, but located
outside the UnW s boundaries, shall be Limited Common Elements allocated exclusively
to that Unit; and
(c) Any portions of the heating, ventilating and air conditioning systems,
including fans, compressors, return air grills and thermostats, whether located inside or
located outside the designated boundaries of a Unit, including individual electricity and
gas meters, shall be Limited Common Elements allocated exclusively to the Unit or Units
that they serve.
1.14. Occupant. Any person or persons in possession of a Uuit, including Unit Owners,
lessees, guests and invitees of such person or persons, and guests and invitees of such lessees.
1.15. Person, A natural person, corporation, limited liability company, partnership,
trust or other legal or commercial entity, or any combination thereof.
1.16. Plans. The plans of the Condominium recorded with, and by the Act made a part
of, this Declaration, as the same may hereafter be amended, and described on Exhibit C.
1.17, Plat. The survey plat depicting the Condominium and the location of the Building
on the Property recorded with, and by the Act made a part of, this Declaration, as the same may
hereafter be amended, and described on Exhibit D.
1.19. Property. The real estate described on Exhibit A, together with the Buildings and
all other improvements now or hereafter constructed or located thereon, and all rights, privileges,
easements and appurtenances belonging to or in any way pertaining to said real estate.
1.19. Rubs and Regulations. The rules and regulations of the Condominium
promulgated by the Executive Board from time to time,
1,20. Special Declarant BjgjW. The rights as defined in Section 47C-1-103(23) of the
Act for the benefit of a Declarant, including as follows: to complete the improvements indicated
on the Plans; to maintain sales offices, models and signs advertising the Condominium on the
Property; to exercise any development right as defined in Section 47C-2-110 of the Act; to use
easements over the Common Elements; to elect, appoint or remove members of the Board during
the Declarant Control Period; to make the Condominium part of a larger condominium; and to
withdraw any portion of the Property from the Condominium. Declarant shall have the right to
subdivide or convert [hits owned by Declarant.
1.21, Unit. A portion of the Condominium, whether or not contained solely or partially
within the Building, together with its percentage of undivided interest in the Common Elements
as set forth on Exhibit E. Each Unit is designated and delineated on the PIans.
1.22. Unit Boundaries. The boundaries of each Unit, both as to vertical and horizontal
planes, as shown on the Plans, are the undecorated surfaces of the perimeter walls, exterior doors
and exterior windows facing the interior of the Unit, the undecorated surfaces of the ceiling
CHARI%52352v► 3

facing the interior of the Unit, and- the topmost surfaces of the subflooring, and include the
decoration on all such interior and topmost surfaces, including, without limitation, all paneling,
tiles, wallpaper, paint, finished flooring and any other materials constituting any part of the
decorated surfaces thereof, and also includes all spaces, interior partitions and other fixtures and
improvements within such boundaries. Also included as a part of the Unit shall be those portions
of the heating and air conditioning system for the Unit which are located within the perimeter
walls of the Unit.
1.23. Unit Owner. The person or persons, including the Declarant, owning a Unit in fee
simple.
ARTICLE H
Submission of ProveProverly to the Act
2.1. Submission. Developer hereby submits the Property to the Act.
2.2. Name. The Property shall hereafter be known as Cove Key Condominium.
2.3. Divisio of EMR= igtQ Bopgately Owned Units. Developer, pursuant to the
Act, and to establish a plan of condominium ownership for the Condominium, does hereby
divide the Property into nineteen. (19) Units and does hereby designate all such Units for separate
ownership, subject however, to the provisions of Section 2.4 hereof.
2.4. Alterations of Units. Subject to the provisions of the Declaration and the Bylaws,
a Unit may be altered pursuant to the provisions of Sections 47C-2-111, 47C-2-112 and 47C-2-
113 of the Act,
2.5. Limited Common Elements. The Limited Common Elements serving or designed
to serve each Unit are hereby allocated solely and exclusively to each such Unit.
2.5. Unit Allocations. The allocation to each Unit of a percentage of undivided
interest in the Common Elements is as stated on xhibit E. The allocation of undivided interests
in the Common Elements has been determined by a ratio formulated upon the relation that the
square foot floor area of each Unit bears to the then aggregate square foot floor area of all Units.
The allocation to each Unit of a percentage of undivided interest in the Common Expenses is as
stated on Exhibit E and is different than the allocation to each Unit of an undivided interest in the
Common Elements. In calculating the percentage share of the Common Expenses for each Unit,
similar type Units, though varying somewhat in total square footage, have been grouped together
to have the same percentage share of the Common Expenses as follows:
CHARIIA52352v1 4

Unit Tunes No. of Units % Share Each Unit Total
A 4 6.00°l0 24.00%
B 3 5.50% 16.50%
C 4 5.00% 20.00%
D 2 3.75% 7,50%
E 4 4.75% 19.00%
I~ I 6.00°fo 6.00%
SF I 7.W10 7M
19 100,00%
The votes in the Association are allocated to all Units in accordance with the provisions
of the Bylaws,
2.7. Encumbrances. The liens, defects and encumbrances affecting the Property to
which the rights of Unit Owners and Occupants are hereby made subject are set out on Exhibit F.
2.8. Condominium Ordinances. The Condominium is not subject to any code, real
estate use law, ordinance, charter provision, or regulation (i) prohibiting the condominium form
of ownership, or (H) imposing conditions or requirements upon a condominium which are not
imposed upon physically similar developments under a different form of ownership. This
statement is made pursuant to Section 47C-1-106 of the Act for the purpose of providing
marketable title to the Units in the Condominium.
2.9. Reservation of Special_ Declarant Rights. Declarant hereby reserves all Special
Declarant Rights for a period not to exceed five (5) years from the date of this Declaratiom
ARTICLE III
Easements
3.1. Encroachments. In the evert that, by reason of the construction, reconstruction,
rehabilitation, alteration or improvement of the Building or other improvements comprising a
part of the Property, any part of the Common Elements now or hereafter encroaches upon any
part of any Unit, or any part of the Common Elements, or upon any part of another Unit, an
easement for the continued existence and maintemance of each such encroachment is hereby
declared and granted and shall continue for so long as each such encroachment exists; provided
that in no event shall an casement for such encroachment be created if such encroachment is
detrimental to or interferes with the reasonable use and enjoyment of the Common Elements or
Units so encroached upon.
CHAR}4852]52vl 5

3 2. Easements Throu�,Mh Walls. Easements are hereby declared and granted to the
Association and to such persons as are authorized by the Association, to install, lay, maintain,
repair and replace any chutes, flues, ducts, vents, pipes, wires, conduits and other utility
installations, and structural components running through the walls of the Units, whether or not
such walls lie in whole or in part within the boundaries of any Unit.
3 3, Easement1_of Owners and Association With Respect To Comanon_ Elements.
Each Unit Owner shall have a perpetual, non-exclusive easement in common with all other Unit
Owners to use all pipes, chutes, wires, ducts, cables, conduits, public utility lines, and other
Common Elements located in any of the other Units and serving his Unit. Each Unit shall be
subject to a perpetual non-exclusive easement in favor of all other Unit Owners to use the pipes,
chutes, wires, ducts, cables, conduits, public utility lines, and other Common Elements serving
such other Units and located in such Units. The Association, or any person authorized by it,
shall have the right of access to each Unit and to the Limited Common Elements upon reasonable
advanced notice to the Unit Owner (except in eases of emergencies, in which cases no advanced
notice shall be required) to the extent necessary for performance by the Association of its
obligations of maintenance, repair, or replacement of the Common Elements. Such person shall
use good faith efforts to conduct such maintenance, repair and replacement operations at such
tunes and in such a manner as to minimize to the extent reasonably possible any intrusion on or
interference with the activities of the Unit Owner.
3A. Easerfrents To Repair, Maintain. Ream —and Reconstruct Wherever in, and
whenever by, this Declaration, the Bylaws or the Act, a Unit Owner, the Association, the Board,
or any other person, is authorized to enter upon a Unit or the Common Elements to inspect,
repair, maintain, restore or reconstruct all or any part of a Unit or the Common Elements, such
easements as are necessary for such entry and such repair, maintenance, restoration or
reconstruction are hereby declared and granted.
3.5. Easements for Utilities. The Units and Common Elements shall be, sad are
hereby, made subject to easements in favor of the Declarant (until Declarant shall have satisfied
ail of its obligations under the Declaration and Bylaws and all commitments in favor of any Unit
Owner and the Association), the Association, appropriate utility and service companies and
governmental agencies or authorities for such utility and service tines and equipment as may be
necessary or desirable to serve any portion of the Property. The easements provided for by this
Section 3.5 shall include, without limitation, rights of Declarant, the Association, any providing
utility, any service company, and any governmental agency or authority and any of them to
install, lay, maintain, repair, relocate and replace gas lines, pipes and conduits, water mains and
pipes, sewer and drain lines, telephone wires and equipment, television equipment and facilities
(cable or otherwise), electrical wires, conduits and equipment and ducts and vents and any other
appropriate equipment and facilities over, under, through, along and on the Units and Common
Elements. Notwithstanding the foregoing provisions of this Section 3.5, unless approved in
writing by the Unit Owner or Unit Owners affected thereby, any such easement through a Unit
shall be located either in substantially the same location as such facilities or similar facilities
existed at the time of first conveyance of the Unit by the Declarant to a grantee other than the
Declarant, or so as not to materially interfere with the use or oecupaney of the Unit by its
Occupants.

3.6. Declarant's ement. Declarant hereby reserves such easements through the
Common Elements as may be reasonably necessary for the purposes of discharging its
Obligations, exercising Special Declarant Rights, and completing the development and
construction of the Condominium, which easements shall exist as long as reasonably necessary
for such purpose.
3.7. Easement for Entrance Monumentation. Declarant hereby reserves perpetual
easements for itself, its successors and assigns, and the Association, and their employees and
agents in and over the Common Elements for the construction, installation, maintenance and
replacement of signage and entrance rnon unentation for the Condominium along Mecklynn
Road (S.R. 1205), including lighting and landscaping for such monumentation. The foregoing
easements shall include a right of access for construction and maintenance vehicles and
personnel employed by the Declarant or the Association in exercising its easement rights
hereunder.
3.8 Easement for Waterside Im ov ents and Utilities. A permanent easement is
reserved by Declarant, its successors and assigns, over a twenty five (25) foot strip of land of the
Common Elements adjacent to and along the 760 foot mean sea level contour line of Lake
Norman for the construction, maintenance and stabilization of the shoreline with treated wood
bulkheads and rip rap and for the installation of other waterside improvements as Declarant, its
successors and assigns, may determine to be necessary or desirable to enhance the Condominium
and any boatslip facility which may be located adjacent thereto. All such improvements
constructed by Declarant on the property shall remain the property of Declarant, its successors
and assigns. Declarant further reserves, for itself, its successors and assigns, an easement over
the Common Elements within said twenty-five (25) foot easement for the installation,
maintenance and repair of utilities including water, sewer, electricity, gas, telephone and cable
television. A permanent easement is reserved by Declarant, its successors and assigns, for itself,
its successors and assigns, for pedestrian ingress, egress and regress over and upon any
pedestrian walkways that may be located within the twenty-five (25) foot easement. An
easement is also reserved to Declarant, its successors and assigns, for ingress, egress and regress
of vehicular and pedestrian traffic in, upon and across the streets, parking lots and other
Common Elements of the Condominium for access to and from said twenty-five (25) foot
easement for construction, maintenance and use of improvements and utilities located within said
twenty-five (25) foot easement.
3.9. tin ok Easements by the Executive Board. The Executive Board may
hereafter grant casements encumbering the Common Elements for utility purposes for the benefit
of the Property, inchuding the right to install, lay, maintain, repair and replace water lines, sewer
lines, pipes, ducts, gas mains, telephone, and television or cable television wires, cables, and
equipment, electrical conduits, and wires over, under and along and upon any portion of the
Common Elements, and may grant such other easements encumbering the Common Elements as
the Executive Board deems in its discretion necessary for the benefit of the Condominium; and
each Unit Owner hereby grants the Executive Board an irrevocable power of attorney to execute,
acknowledge, and record for and in the name of each Unit Owner such instruments as may be
necessary to effectuate the foregoing.
CRPal% M52v1 7

3.10. Easements To Run With Land. All easements and rights described in this Article
III are appurtenant easements running with the land, and except as otherwise expressly provided
in this Article III shall be non-exclusive and perpetually in lull force and effect, and shall inure to
the benefit of and be binding upon Declarant, the Association, Unit Owners, Occupants, First
Mortgagees and any other person having any interest in the Condominium or any part thereof
The Condominium and every part thereof shall be conveyed and encumbered subject to and
together with all easements and rights described in this Article III, whether or not specifically
mentioned in any such conveyance or encumbrance.
ARTICLE IV
Restrictions, Conditions and Covenants
4.1. Compliance with Declaration, _Bylaws and _Rules and Regulations. Each Unit
Owner and Occupant shall comply with all applicable provisions of the Act, this Declaration, the
Bylaws, the Articles of Incorporation of the Association, and Rules and Regulations promulgated
by the Board or the Association, as amended. Failure to comply shall be grounds for an action
by the Association, an aggrieved Unit Owner, or any person adversely affected, for recovery of
damages, injunction or other relief.
4.2. Administration of Condominium. The Condominium shall be administered in
accordance vAth the provisions of the Act, this Declaration, the Bylaws and the Rules and
Regulations.
4.3. Use Restrictions,
The Units shall be occupied and used. by Owners and Occupants for residential
purposes only and no trade or business may be conducted in or from any Unit, except that
an Owner or Occupant resitting in a Unit may conduct business activities Witt in the Unit
so long as: (a) the existence or operation of the business activity is not apparent or
detectable by sight, sound or smell from outside the Unit; (b) the business activity
conforms to all zoning requirements for the Property; (c) the business activity does not
involve persons coming onto the Property who do not reside in the Property or door-to-
door solicitation of residents of the Property; and (d) the business activity is consistent
with the residential character of the Property and does not constitute a nuisance, or a
hazardous or offensive use, or threaten the security or safety of other residents of the
Property, as may be determined in the sole discretion of the Board.
The term "business" and "trade", as used in Ws 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 providees. 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
CHARM57 SM 9

or does generate a profit; or (iii) a license is required therefor. Notwithstanding the
above, the leasing of a Unit shall not be, considered a trade or business within the
meaning of this section. This section shall not apply to any activity conducted by the
Declarant or a builder approved by the Declarant with respect to its development and sale
of the Property or its use of any Units which it owns within the Property.
4.4. Lrj*bijtd Uses. No obnoxious, offensive, or unlawful activity shall be
conducted within any Unit or on or about the Common Elements, nor shall anything be done
thereon or therein which may be or which may become an annoyance or a nuisance to the other
Unit Owners. Further, and without limiting the generality of the foregoing, each Unit Owner
shall use his Unit and the Common Elements in such a manner as to comply with all laws,
ordinances, orders, regulations and zoning classifications of any governmental authority, agency
or other public or private regulatory authority (including insurance underwriters and rating
bureaus) having jurisdiction over the Property. In addition, no Unit may be used for the
treatment, storage, use or disposal of toxic or hazardous waste or substances or any other
substance that is prohibited, limited, or regulated by any governmental or quasi -governmental
authority or that, even if not so regulated does pose a hazard to health and safety of the occupants
and patrons of the Units or of surrounding property. Each Unit Owner shall indemnify and save
every other Unit Owner and the Association harmless from and against any claims, liabilities,
penalties, fines, costs, expenses or damages resulting from any violations of the provisions of
this Section 4.4.
4.5. Prohibitions and VM of Common Elements. The Common Elements shall not be
used for storage of supplies, personal property or trash or refuse of any kind, except that common
trash receptacles may be placed at various locations on the Common Elements at the discretion
of the Board. Stairs, entrances, sidewalks, yards, driveways, and parking areas shall not be
obstructed in any way. In general, no activity shall be carried on or conditions makWned by
any Unit Owner either in his Unit or upon the Common Elements which despoils the appearance
of the Property.
4.6. Shrubbea. No Unit Owner shall plant or permit to remain on the Prop�Y any
'
type of hedge, shrubbery or other plantings, except in conformity with the Rules and Regulations
and any such hedge, shrubbery and plantings shall impair interfere with the view or sighdines of
any other Unit Owner as to Lake Norman or any part of the Common Elements or interfere with
the repair or maintenance of any portion of the Property or Condominium,
4.7. Parking. No Unit Owner and no employee, agent or invitee of any Unit Owner
shall park, store, or keep any vehicle on the Property, except wholly within those portions of the
Common Elements designated by the Association for such use. No commercial or recreational
automobile, van, truck, tractor, mobile home or trailer (either with or without wheels), camper,
camper trailer, boat or other watercraft, boat trailer or any other commercial or recreational
vehicle shall be parked on any portion of the Common Elements. For the purposes hereof, the
terra "recreational automobile" shall refer to an automobile, sport utility vehicle, minivan or
pick-up truck upon which is displayed permanent painted commercial or advertising displays,
lettering or logos. The foregoing restriction shall not apply to sales trailers, construction trailers
or other vehicles which may be used by Declarant and its agents and contractors in the conduct
CVARIIaMS2 I 9

of their business prior to completion of the Condominium, and shall not apply to service vehicles
which are temporarily parked while service contractors are providing temporary service work in
one or more Units in the Condominium or on the Common Elements.
4.$. Sims. Subject to the rights of Declarant under Section 4.9 hereof, no sign, flag,
banter or pennant of any kind shall be displayed to the public view from any Unit or from the
Common Elements without the prior written consent of the Executive Board.
No "For Sale" or "For Rent' signs or .other window displays or advertising shall be
maintained or permitted by any Unit .Owner or Occupant on any part of the Condominium
without the prior written consent of the Executive Board.
4.9. Declarsrtt's Offieeg and Models. The foregoing provisions of this Section or any
other provision of this Declaration or the Bylaws notwithstanding, Declarant shall have an
easement to maintain sales offices and models for sales of Units throughout the Condominium.
Declarant shall have the right to relocate, from time to time, and to discontinue and reestablish,
from time to time, within the Condominium, until all of the Units have been conveyed to a Unit
Owner other than a Declarant, any one or more of such offices or models. Declarant also shall
have the right to change the use or combination of uses of such offices or models, provided that
such offices or models shall be used only for sales offices or models. The total number of such
offices or models maintained at any time by a Declarant shall not exceed two (2), and the size of
any such relocated or reestablished office or model shall not exceed the size of the largest Unit in
the Condominium.
Declarant shall also have an easement to maintain signs, flags, banners and pennants on
the Common Elements advertising the Condominium until all of the Units have been conveyed
to Unit Owners other than a Declarant. Declarant shall remove all such signs, flags, banners and
pennants not later than thirty (34) days after all of the Units have been conveyed to Unit Owners
other than Declarant and shall repair or pay for the repair of all damage done by removal of such
signs, flags, banners and pennants.
The foregoing provisions of this Section or any other provision of this Declaration or the
Bylaws notwithstanding, the Association may maintain an office in the Condominium for
management of the Condominium.
4.10. Hazardous Use and Waste. Nothing shall be done to or kept in any Unit or the
Common Elements that will increase any rate of insurance maintained with respect to the
Condominium without the prior written consent of the Board. No Unit Owner or Occupant shall
permit anything to be done to or kept in his Unit or the Common Elements that will result in the
cancellation of insurance maintained with respect to the Condominium, or that would be in
violation of any law, or that will result in the commitment of waste (damage, abuse, or
destruction) to or in his Unit or the Common Elements.
4.11. Alterations of Q4pn Elements. No Unit Owner or Occupant, except Declarant
during the Declarant Control Period, shall alter, construct anything upon, or remove anything
CKA.RIA852352vi 10

from, the Common Elements, or paint, decorate, landscape or adorn any portion of the Common
Elements, without the prior written consent of the Board.
4.12. Leases. Any lease of a Unit or a portion of a Unit shall be in writing, and shall be
subject to this Declaration and the Bylaws, and any failure of the lessee to comply with the
terms of such documents shall be a default under the lease. Any lease of a Unit shall be for a
period of not less than six (6) months. Any Unit Owner who enters into a lease of his Unit shall
promptly notify the Association of the name and address of each lessee, the Unit rented, and the
term of the lease. Other than the foregoing restrictions, each Unit Owner shall have the full right
to lease his Unit. Declarant may lease any Unit owned by Declarant subject to the provisions of
this Declaration.
4.13. Television Aerials Antennas and Satellite Dishes. No radio, television or other
aerial, antenna, satellite dish, tower or other transmitting or receiving structure or support
thereof, of whatever size, shall be erected, installed, placed or maintained within the
Condominium unless so erected, installed, placed or maintained entirely out of sight within a
Unit; provided, however, television dishes 24 inches or less in diameter may be installed by a
Unit Owner on the rear balcony or patio comprising a Limited Common Element of his or her
Unit provided such dish is installed out of sight in a location approved by the Board. Prior to
installing a television dish, a Unit Owner must submit to the Board for its approval the proposed
location for the television dish within sixty (60) days prior to the proposed installation. The
Board, in its sole discretion, may approve or disapprove of the proposed location of the dish. if
the Board disapproves of the proposed location of the dish, the Board shall provide to the Unit
Owner a suggested alternate location for the dish that will be acceptable to the Board.
4.14. Rules and Regglations. In addition to the foregoing restrictions, conditions and
covenants concerning the use of the Condominium, reasonable Rules and Regulations not in
conflict therewith and supplementary thereto may be promulgated and amended from time to
time by the Board or the Associations as more fWiy provided in the Bylaws.
4.15. Restrictions nditions and Covenants To Run With Land. Each Unit Owner
and Occupant shall be subject to all restrictions, conditions and covenants of this Declaration,
and all such restrictions, conditions and covenants shall be deemed to be covenants rwining with
the land, and shall bind every person having any interest in the Property, and shall inure to the
benefit of every Unit Owner.
ARTICLE V
Assessments
5.1. Assessment Liens. The Board has the power to levy assessments against the
Units for Common Expenses. Such assessments shall be a lien on the Units against which they
are assessed, and if any payment thereof becomes delinquent, the lien may be foreclosed and the
Unit sold, or a money judgment obtained against the persons liable therefor, all as set forth in the
Bylaws.
CHARIWS2352v1 I 1

5.2. Personal Liability of Transferees: Statement: Liability of First Mortg, gee.
(a) The personal obligation for assessments which are delinquent at the time of
transfer of a Unit shall not pass to the transferee of said Unit unless said delinquent assessments
are expressly assumed by said transferee.
(b) Any transferee referred to in (a) above shall be entitled to a statement from the
Board, pursuant to Section 6.2 of the Bylaws, and such transferee's Unit shall not be subject to a
lien for any unpaid assessments against such Unit in excess of the amount therein set forth.
(c) Where a First Mortgagee, or other person claiming through such First Mortgagee,
pursuant to the remedies provided in a deed of trust, or by foreclosure or by deed, or assignment,
in lieu of foreclosure, obtains title to a Unit, the liability of such First Mortgagee or such other
person for assessments shall be only for the assessments, or installments thereof that would
become delinquent, if not paid, after acquisition of title. For purposes hereof, title to a Unit shall
be deemed acquired by foreclosure upon expiration of the applicable period of redemption.
(d) Without releasing the transferor from any liability therefor, any unpaid portion of
assessments which is not a lien under (b) above or, resulting, as provided in (c) above, from the
exercise of remedies in a deed of trust, or by foreclosure thereof or by deed, or assignment, in
Iieu of such foreclosure, shall be a Common Expense collectible from all Unit Owners, including
the transferee under (b) above and the First Mortgagee or such other person under (c) above who
acquires ownership by foreclosure or by deed, or assignment, in lieu of foreclosure.
5.3. Prohibition of Exem2tion from. Liability„ for Contribution Toward Common
Ex_senses. No Unit Owner may exempt himself from liability for his share of the Common
Expenses assessed by the Association by waiver of the use or enjoyment of any of the Common
Elements or by abandonment of his Unit or otherwise.
ARTICLE VI
Manaaement, Maintenance, Repairs
Replacements. Alterutions and, Improvements
6.L Common Elements.
(a) By the Association. The management, replacement, maintenance, repair,
alteration, and improvement of the Common Elements shall be the responsibility of the
Association, and, subject to the provisions of Section 6.2 hereof, the cost thereof stall be a
Common Expense to the extent not paid by Unit Owners pursuant to Section 6.1(b) hereof All
damage caused to a Unit by any work on or to the Common Elements done by or for the
Association shall be repaired by the Association, and the cost thereof shall be a Common
Expense.
(b) By Unit Owners. Each Unit Owner shall pay all costs to repair and replace all
portions of the Common Elements that may become damaged or destroyed by reason of his
cHnRriss 52A 12

intentional, acts or the intentional acts of any Occupant, guest or invitee of his Unit. Such
payment shall be made upon demand trade by the Association.
Common _ExMes_AssociMd with_Littttttt rnited common Elements or Benefittigg
n_.,..
Less Than All Units.
(a) Any Common Expense associated with the maintenance, repair, or replacement of
a Limited Con mon Element shall be assessed against the Unit, or m equal shares to the Units, to
which such Limited Common Element was allocated at the time the expense was incurred.
(b) In addition, the Association may assess any Common Expense benefiting less
than all of the Units against the Units benefited in proportion to their Common Expense liability.
(c) The cleanliness and orderliness of the Limited Common Elements shall be the
responsibility of the individual Unit Owner or Unit Owners having the right to the use and
enjoyment of such Limited Common Elements, but the responsibility for maintenance, painting,
repair and replacement, together with control over the exterior decoration of the Limited
Common Elements visible from any other Unit or from the Common Elements, shall remain with
the Association. Notwithstanhing any other provisions of this Declaration, or any provision of
the Bylaws or the Act, the obligation for maintenance, repair, or replacement of any portions of
the heating, ventilating, and air conditioning systems that are Limited Common Elements shall
be the sole responsibility of the Unit Owners to which such Limited Common Elements are
allocated. Electricity and gas service to each Unit shall be individually metered and each Unit
Owner shall pay all charges assessed against his Unit for the use of such services.
6.3. Units. Each Unit Owner shall maintain his Unit at all times in a good and clean
condition, and repair and replace, at his expense, all portions of his Unit. All windows and doors
within the wails enclosing a Unit shall be a part of that Unit, but the authority and responsibility
for maintenance and painting, together with control over the exterior decoration, of all portions
of doors and windows visible from the exterior of the Building or from any Common Element,
shall remain with the Association. Replacement of any broken glass in a window that is part of a
Unit shall be the sole responsibility and expense of the Unit Owner of that Unit. Routine
maintenance and repair of all lath, firming, wallboard, plasterboard, plaster, and subflooring
beneath, above, and/or beyond the finished surfaces of the perimeter walls, floor and ceiling of
each Unit shall be the sole responsibility of the Unit Owner. Each Unit Owner drill perform his
responsibilities in such manner as not to unreasonably disturb other Occupants; shall promptly
report to the Board, or its agents, any defect or need for repairs the responsibility for which is
that of the Association, and, to the extent that such expense is not covered by the proceeds of
insurance carried by the Association, shall pay all costs to repair and replace any portion of
=other Unit that has become damaged or des"yed by reason of his own acts or omissions, or
the acts or omissions of any Occupant of his Unit. Such payment shall be made upon demand
by the Unit Owners of such other Unit. Nothing herein contained shall modify any waiver.by
insurance companies of rights of subrogation.
CHARINM3520 13

6.4. Right of Entt .
(a) By the A_ ssociation. The Association, and any person authorized ' by the
Association, may enter any Unit or any of the Limited Common Elements in case of any
emergency or dangerous conditions or situation originating in or threatening that Unit or any of
the Limited Common Elements. The Association, and any person authorized by the Association,
after reasonable notice to a Unit Owner or Occupant, may enter that Unit or any of the Limited
Common Elements for the purposes of performing any of the Association's powers under the
Act, this Declaration or the Bylaws with respect to that or any other Unit, any Limited Common
Elements, or the Common Elements. The Association shall be responsible for the repair of any
damage caused by the Association or its authorized person to the entered Unit, and the cost
thereof shall be a Common Expense. All such entries shall be made and done so as to cause as
little inconvenience as possible to the Unit Owner and Occupant of the entered Unit or any
portion of the Limited Common Elements allocated to the Unit Owner.
(b) By Unit Owners. Each Unit Owner and Occupant shall allow other Unit Owners
and Occupants, and their representatives, to enter his Unit, or Limited Common Elements
allocated to his Unit, when reasonably necessary for the purpose of altering, maintaining,
repairing or replacing the Unit, or performing the duties and obligations under the Act, this
Declaration or the Bylaws, of the Unit Owner or Occupant malting such entry, provided that
requests for entry are wade in advance and that such entry is at a lime convenient to the Unit
Owner or Occupant whose Unit or Limited Common Element is to be entered. in case of an
emergency or dangerous condition or situation, such right of entry shall be immediate. The
person making such entry shall be responsible for repair of any damage caused by such person to
the entered Unit or Limited Common Element. -
6.5. Partitionint. The interest in the Common Elements allocated to each Unit shall
not be conveyed, devised, encumbered, partitioned, or otherwise dealt with separately from said
Unit, and the interest in the Common Elements allocated to each Unit shall be deemed conveyed,
devised, encumbered or otherwise included with the Unit even though such interests are not
expressly mentioned or described in the instrument conveying, devising, encumbering or
otherwise dealing with such Unit. Any conveyance, mortgage, or other instrument which
purports to grant any right, interest, or lien in, to or upon the Unit, shall be null, void, and of no
effect insofar as the same purports to affect any interest in a Unit's allocated interest in the
Common Elements unless the some purports to convey, devise, encumber or otherwise deal with
the entire Unit. Any instrument conveying, devising, encumbering or otherwise dealing with any
Unit, which describes said Unit by the identifying number assigned thereto in the Plans and
herein without limitation or exception shall be deemed and construed to affect the entire Unit and
its allocated interest in the Common Elements. Nothing herein, contained shall be construed as
limiting or preventing ownership of any Unit and its allocated interest in the Common Elements
by more than one person or entity as tenants in common, joint tenants, or as tenants by the
entirety or any other form by law permitted.
6.6. Conveyance of or Lien Against Common Elements. For such time as the Property
remains subject to this Declaration and to the provisions of the Act, no conveyances of or
security interests or liens of any nature shall arise or be created against the Common Elements
CHARIM2352A 14

unless the Unit Owners holding at lust eighty percent (80%) of the total allocated interests in the
Common Elements agree to that action; provided, however, all the owners of Units to which any
Limited Common Element is allocated must agree in order to convey that Limited Common
Element or subject it to a security interest or lien Every agreement for the performance of labor
or the furnishing of materials to the Common Elements, whether oral or in writing, must provide
that it is subject to the provisions of this Declaration and that the right to file a mechanics' lien or
other similar lien by reason of labor performed or material furnished is subordinated to this
Declaration and to the lien of assessments for Common Expenses provided for in Article V of
this Declaration. Provided, however, nothing in this Section shall be construed to limit the right
of any Unit Owner to convey or to encumber his allocated interest in the Common Elements as
an appurtenance to and in connection with the conveyance or mortgaging of his Unit.
6.7. Nature of interest in Unir Every Unit, together with its allocated interest in the
Common Elements, shall for all purposes be, and it is hereby declared to be, and to constitute a
separate parcel of real property, and the Unit Owner thereof shall be entitled to the exclusive fee
simple ownership and possession of his Unit, subject only to the covenants, conditions,
restrictions, easements, uses, limitations, obligations, rules, regulations, resolutions and decisions
adopted pursuant hereto and as may be contained herein and in the accompanying Bylaws and in
the minutes of the Executive Board of the Association.
ARTICLE YII
Insurance
7.1, Casualty Insurance. The Association shall maintain, to the extent available,
casualty insurance upon the Property in the name of, and the proceeds thereof shall be payable
to, the Association, as trustee for all Unit Owners and First Mortgagees as their interests may
appear, and be disbursed pursuant to the Act. Such insurance shall be to an amount equal to not
less than one -hundred percent (1041/6) foil insurable value of the Property on a replacement cost
basis exclusive of land, excavations, foundations and other items normally excluded from
property policies, and shall insure against such risks and contain such provisions as the Board
from time to time shall determine, but at a minimum shall conform in all respects to the
requirements of the Act, and shall provide that, notwithstanding any provision thereof that gives
the insurer an election to restore damage in lieu of making a cash settlement, such option shall
not be exercisable if such restoration is prohibited pursuant to Section 47C-3-113(h) of the Act.
In addition, if any fixtures, property or equipment used or kept in a Unit are financed by the
proceeds of any First Mortgage on such Unit, then the Association, at its option, may obtain
insurance coverage for such fixtures, property or equipment.
7.2. Public Liabilily Insurance. The Association shall maintain public liability
insurance for the benefit of the Unit Owners, Occupants, the Association, the Board, the
managing agent, if any, the Declarant, and their respective officers, directors, agents and
employees, in such amounts and with such coverage as shall be determined by the Board;
provided that the public liability insurance shall be for at least Five Hundred Thousand Dollars
($500,000.00) per person and One Million Dollars ($1,000,000) per occurrence for death, bodily
injury and property damage. Such insurance shah comply in all respects to the requirements of
CHAR 523520 15

the Act and shall contain a severability-of-interest endorsement precluding the insurer from
denying liability because of negligent acts of any insured, insure all of such benefited parties
against such liability arising out of or in connection with the use, ownership or maintenance of
the Common Elements, and the streets, sidewalks and public spaces adjoining the Condominium;
and insure the Association, the Board, the mamager, if any, and their respective officers,
directors, agents and employees against such liability arising out of or in connection with the use
or maintenance of the Units.
7.3. Fidelity Coverage. If available at reasonable cost, fidelity coverage shall be
maintained by the Association in commercial blanket form covering each director and officer of
the Associations, any employee or agent of the Association and any other person handling or
responsible for handling funds of the Association in the race amount of at least the greater of (i)
one and one-half (1-1/2) times the estimated annual operating expenses and reserves of the
Association, or (ii) the sure of three months' aggregate assessments on all Units plus the
Association's reserve funds. Such bonds shall contain an appropriate endorsement to cover
persons who serve without compensation. The premium on such bonds shall be a Common
Expense.
7.4. Insurance Unavailable. If the insurance described in Section 7.1, 7.2 or 7.3 is not
reasonably available, the Association shall promptly cause notice of such fact to be hand -
delivered or sent prepaid by United States mail to all Unit Owners and First Mortgagees.
7.5. Other Insurance. The Association may procure such other insurance, including
worker's compensation insurance, as it may from time to time deem appropriate to protect the
Association or the Unit Owners. If at least one Unit is subject to mortgage financing, -the
Association shall obtain and keep in force such insurance as such mortgagee shall reasonably
require from tLme to time.
T6. Insurance Trustee. The Board may engage, and pay as a Common Expense, any
appropriate person to act as an insurance trustee to receive and disburse insurance proceeds upon
such terms as the Board shall determine, consistent with the provisions of the Act and this
Declaration.
7.7. Individual Policy for Unit Owners. Each Unit Owner may obtain insurance, at his
own expense, affording personal property, condominium assessment, personal liability, and any
other coverage obtainable, to the extent and in the amounts such Unit Owner deems necessary to
protect his own interests; provided that any such insurance shall provide that it is without
contribution as against the insurance purchased by the Association. If a casualty Ioss is sustained
and there is a reduction in the amount of the proceeds that would otherwise be payable on the
insurance purchased by the Association due to the proration of insurance purchased by a Unit
Owner under this Section, such Unit Owner shall be liable to the Association to the extent of
such reduction and shall pay the amount of such reduction to the Association upon demand, and
assigns the proceeds of his insurance, to the extent of such reduction, to the Association.
CHAR14SM320 16

ARTICLE VI11
Casualty Damap�e
If all or any part of the Property shall be damaged or destroyed, the same shall be
repaired or replaced unless: (1) the Condominium is terminated, (2) repair or replacement would
be illegal under any State or local health or safety statute or ordinance, or (3) the Unit Owners
elect not to rebuild or replace by a ninety percent (90 4) note, including one hundred percent
(1009%) approval of owners of Units not to be rebuilt or owners assigned to Limited Common
Elements not to be rebuilt. All proceeds of insurance shall be used and applied in accordance
with the provisions of Section 47C-3-113(e) and (h) of the Act.
ARTICLE IX
Condemnati010
In the event of a taking by eminent domain, or by a conveyance in lieu thereof: of all or
any part of the Property, the awards paid on account thereof shall be applied in accordance with
Sections 47C-1-107 of the Act.
ARTICLE x
Termination
The Condominium. may be wrminated only in strict compliance with Section 47C-2-115
of the Act.
ARTICLE III
Amendment
This Declaration may be amended only in strict compliance with the Act, including,
without. limitation, Sections 47C 2-105 and 47C-2-117 of the Act, except that no amendment
altering or impairing Special Declarant Rights may be made without the written consent of
Declarant.
ARTICLE XII
Rights of First .Mo ees
The following provisions shall take precedence over all other provisions of this
Declaration and the Bylaws:
12.1. Amendments Mgerlmlly Affecting First Mortgagees. Any amendments to this
Declaration or to the Bylaws which materially affect the rights of First Mortgagees shall be
csaxIM2352A 17

subject to the prior approval of all First Mortgagees provided, however, that, if any First
Mortgagee fails to respond to a written request for approval within thirty (30) days of said
request made in accordance with the notice requirements of such First Mortgage, approval shall
be deemed to have been given by such First Mortgagee.
12.2. Availability of CondominiumDocumen Books Records and Financial
Statements. The Association shall, upon request and during normal business hours, make
available for inspection by Unit Owners and the First Mortgagees, current copies of the
Declaration, the Bylaws, other rules and regulations governing the Condominium and the books,
records and financial statements of the Association. The Association shall provide an unaudited
accountant prepared financial statement for the preceding fiscal year if requested in writing by a
First Mortgagee. The Association shall, upon request and during normal business hours, make
available for inspection by prospective purchasers of Units, current copies of the Declaration,
Bylaws, the Rules and Regulations governing the Condominium, and the most recent annual
financial statement.
12.3. Successors' Personal Obligation for , Delinguent Assessments. The personal
obligation for assessments which are deliuquent at the time of transfer of a Unit shall not pass to
the successors in title or interest to said Unit unless said delinquent assessments are expressly
assumed by them.
12.4. Rigbl§ of Action. The Association and any aggrieved Unit Owner shall have a
right of action against Unit Owners and any aggrieved Unit Owner shall have a right of action
against the Association for failure to comply with the provisions of this Declaration, the Bylaws
and the Rules and Regulations, and decisions of the Association made pursuant to authority
granted to the Association in this Declaration and the Bylaws.
12.5. Riig�its to Notice. if any First Mortgagee has served written notice upon the
Association of its desire to receive notices under this section by certified mail, return receipt
requested, addressed to the Association and sent to its current address, identafying the First
Mortgage that it holds, which notice designates the place to which notices are to be given by the
Association to such party, then such party shall have the right to receive from the Association
prompt written notice of the following:
(a) Default under any of the terms and provisions of the Declaration and the
Bylaws by any Unit Owner owning a Unit encumbered by a First Mortgage held by such
party-
(b) Any loss or damage to or condemnation or taking of the Common
Elements or any loss or damage to or condemnation or taking of a Unit encumbered by a
First Mortgage held by such First Mortgagee.
(c) Any lapse, cancellation, or material modification of any insurance policy
or fidelity bond maintained by the Association.
CHUM523S20 is

(d} Any proposed action by the Association, the Board or the Unit Owners,
which under the terms of the Declaration or Bylaws requires the consent of all or any
portion of the First Mortgagees.
12.6. _Assessments. Assessments shall be clue and payable in installments as determined
by the Board. As legally required by Section 47C-3-115 of the Act, Declarant shall pay all
accrued expenses of the Condominium until assessments are levied against the Units. An
assessment shall be deemed levied against a Unit upon the giving of notice by the Board to a
member of the Association who is a Unit Owner of that Unit. Unit Owners shall have no
obligation to pay assessments until an assessment is levied. Assessments will begin at such time
as the Board elects.
12.7. Rights. of First M99Mee; Insurance Proceeds or Condemnation Awards. With
respect to First Mortgages held by or for the benefit of First Mortgagees, no provision of this
Declaration or the Bylaws shall be deemed to give a Unit Owner, or any other party, priority
over any rights of a First Mortgagee pursuant to its First Mortgage on said Unit Owner's Unit, in
the case of a distribution to said Unit Owner of insurance proceeds or condemnation awards for
losses to or a taking of Units and/or Common Elements.
ARTICLE XTH
General Provisions
13.1. Conflict with_ the Act: Severability. Should any of the terms, conditions,
provisions, paragraphs, or clauses of this Declaration conflict with any provisions of the Act, the
provisions of the Act shall control unless the Act permits the Declaration to override the Act, in
which event the Declaration shall control. The invalidity of any covenant, restriction, condition,
limitation, provision, paragraph or clause of this Declaration, or of any part of the same, or the
application thereof to any person or circumstance, shall not impair or affect in any manner the
validity, enforceability or effect of the rest of this Declaration, or the application of any such,
covenant, restriction, condition, limitation, provision, paragraph or clause to any other person or
circumstances.
13.2. Irate lion oIDeclaration. Whenever appropriate singular may be read as
plural, plural may be read as singular, and the masculine gender may be read as the feminine or
neuter gender. Compound words beginning with the prefix "here" small refer to this entire
Declaration and not merely to the part in which they appear.
13.3. Cautions. The captions herein are only for convenience and reference and do not
define, limit or describe the scope of this Declaration, or the intent of any provision.
13.4. Exhibits. Exhibits A, B, C, D, Ej and G attached hereto are hereby made a part
hereof.
13.5. lnvalidi . The invalidity of any provision of this Declaration shall not be deemed
to impair or affect in any manner the validity or enforceability or erect of the remainder of this
CHARIMZ3 O 19

Declaration, and in such event, all of the other provisions of this Declaration shall continue in
full force and effect as if such invalid provision had never been included herein.
13.6. Waiver. No provision of this Declaration shall be deemed to have been abrogated
or waived by reason of any failure to enforce the same, irrespective of the number of violations
or breaches which may occur.
13.7. Law Contralliutr. This Declaration shall be construed and controlled by and
under the laws of the State of North Carolina.
IN WnMSS WHEREOF, the undersigned has executed this Declaration as of the day
and year first above written.
r
DAVIDSON DEVELOPMENT COMPANY, LLC,
a North Carolina limited liability company (SEAL)
J. Christopher
Manager
CHMne57352v] 20

STATE OF NORTH CAROLINA
I, 0 . PC _ n a Notary Public of the County and State
aforesaid, certify that J. Chrisb6pher Kenmrly, Manager of DAVIDSON DEVELOPMENT
COMPANY, LLC, a North Carolina limited liability company, personally appeared before me
iawledged the execution of the foregoing instrument.
ny kid and official Stamp or seal, this & W_ day of 1you.. , 2005.
Notary Public
Expires; 1
21

ATTACEalENT TO DECLARATION OF
COVE KEY CONDOMINIUM
CONSENT AND SUBORDINATION OF MORTGAGEE
FIRST COMMUNITY BANK, N.A., holder of that certain Note secured by that certain
Credit Line Deed of Trust dated August 11, 2003 and recorded in Book 1472 at Page 2294 in the
Iredell County Public Registry and J. PETER RICHARDSON, Trustee, do hereby consent to the
terms, conditions, and covenants in the foregoing Declaration of Cove Key Condominium and
the Bylaws described therein, and agree that the lien of said deed of trust, and the interest of the
beneficiary therein, are subject and subordinate, in all respects, to the terms, conditions, and
covenants contained in said Declaration, including all exhibits, supplemental declarations and
other amendments thereto.
IN WITNESS WHEREOF, the undersigned has caused this Consent to be duly executed
Us _? day of November- 2005.
FIRST COMMUNITY BANK, I.A.
By:
I President
<7A!!�' �-�4 �Aatl=
J.'Feier Richardson
Trustee
cxA.eMs 52A

STATE OF ka )� r 17I�J
COUNTY OF A lar
This day ofK , 2005, before me, the undersigned Notary
Public in and for the County and State aforesaid, personally came
who, being duly sworn, says that he is4020^ President of
FIRST COMMUNITY BANK, N.A., and that the seal affixed to the foregoing instrument in
writing is the corporate seal of said corporation, and that he signed and sealed said instrument on
behalf of said corporation by its authority duly given. And the said
e % . WAam _ _ acknowledged said instrument to be the act and deed of said
corporation.
WITNESS my hand and seal this /'
My Commission Expires:. Deeemher L ,Zap
STATE OF 1966� ' Krogin �G✓
COUNTY OF Mercer
day of 2wmio- 2005.
NotaryPublic
OFFICIALSEAL
NOTARY PUBLIC
e STATE OFVMSTVIRGk?NA
RITA LORRAINE PAULEY
* � POST OFFICE SM 1778
BLUEFIELD, VW 247M
My WIN W�a&DODWbw 1Z 2MI
This 014 day of �I9'oya7 et- , 2005, before me, the undersigned Notary
Public in and for the County and State aforesaid, personally came I. PETER RICHARDSON,
Trustee, who, being duly sworn, says that he signed and sealed said instrument as Trustee as his
act and deed.
WITNESS my hand and seal this day of 1401'� 0,"`
2005.
jze&-c �VV'Aa&.4'
' N tart' Public
My Commission Expires: / //
�, .
oFF�au sEu
NOTARY PUBLIC
,t
STATE OF WEST VIRGINIA
RITA LORRAINE PAU EY
.mow
POST OFFICE BOX 1779
BLUEFIELD, WV 247A1
�:YECRC*sbn wpk2s Dwag m t2, MI
CRARM2352v1

EXHIBIT A
To Declaration
Lying and being in Davidson Township, Iredell County, North Carolina and being more
particularly described as follows (the "Submitted Parcel"):
BEGINNING at an existing I/V pipe in the western margin of the right of way of Mecklyun
Road (State Road 1205), a common corner with the southeasternmost corner of the T. Frank
Gudger Property Subdivision, Section 3 as shown in Map Book 11, Page 13 of the Iredell County
Public Registry; thence with the western margin of the right of way of State Road 1205, S 11-22-
28 W 648.89 feet to a disturbed existing iron rod marking a northeasterly corner of Lot 1 of
Westview subdivision as shown in Map Book' 25, Pages 55-57 of the Iredell County Public
Registry; thence with the northerly lines of Lots 1, 2 and 3 of the aforesaid Westview subdivision
as shown on the aforesaid map N 89-26-05 W 860.07 feet (passing a '/: inch pipe on line at
843.36 feet) to a point; thence the following ten (10) courses and distances: (1) N 03-25-39 E
26.04 feet to a point; (2) N 29-31-49 E 36.11 feet to a point; (3) N 41-35-52 E 21.97 feet to a
point; (4) N 51- 23-23 E 51.57 feet to a point; (5) N 24-39-16 E 32.45 feet to a point; (6) S 89-
22-01 E 2.41 feet to a point; (7) N 08-05-01 E 119.36 feet to a point; (9) N 27-06-20 E 173.40
feet to a point; (9) N 42-19-54 W 164.90 feet to a point; and (10) N 03-15-20 E 102.94 feet to a
point in the southerly line of the T. Frank Gudger Property Subdivision, Section 1 as shown in
Map Book It, Page 13 of the Iredell County Public Registry; thence with the line of the
aforesaid T. Frank Gudger Property Subdivision, Sections I and 3, S 89-41-11 E 907.31 feet
(passing a existing % inch pipe on line at 4.15 feet) to the Point and Place of Beginning, all as
shown on that certain survey entitled "Condominium Plat for Cove Key Condominium" dated
October 18, 2005, prepared by Douglas E. Morrison, PLS of R. B. Pharr & Associates, P.A., to
which survey reference is hereby made to for a more particular description of the subject
property.
LESS AND EXCEPT the following parcel of land:
BEGINNING at a point located N 89-41-11 W 449.46 feet from the % inch pipe in the
margin of Mecklynn Road (State Road 1205) marking the Beginning Point of the above
described Submitted Parcel, and runs from said BEGINNING point along a line with the arc of a
curve to the southeast with a 100 foot radius, 628.32 feet to the BEGINNING point (the same
forming a full circle with a 100 foot radius), all as shown that certain survey entitled
"Condominium Plat for Cave Key Condominium" dated October 18, 2005, prepared by Douglas
E. Morrison, PLS of R. B. Pharr & Associates, P.A., to which survey reference is hereby made to
for a more particular description of the subject property..
CHP&1W7.3nV1

EXHWIT B
To Declaration
BYLAWS
OF
COVE KEY ASSOCIATION, INC.
ARTICLE I.
Plan of Condominiums
1.1 Unit {3wnershiv. The property located in Iredell County, State of North
Carolina, and more particularly described in the Declaration of Cove Key Condominium,
(the "Declaration') has been submitted to the provisions of the North Carolina
Condominium Act (the "Act" by instrument recorded in the Office of the Register of
Deeds for Iredell County, north Carolina, simultaneously herewith, and shall be known
as Cove Key Condominium (the "Condominium').
1.2 Application All present and future owners, mortgagees, lessees and
occupants of Units and their employees, and any other persons who may use the facilities
of the property in any manner are subject to the Declaration, these Bylaws and rules and
regulations made pursuant hereto, and any amendment to these Bylaws or the Declaration
upon the same being passed and recorded in the mariner set forth in the respective
Condominium Documents.
The acceptance of a deed of conveyance or the entering into of a lease or the act
of occupancy of a Unit shall constitute an agreement that these Bylaws (and any rules and
regulations made pursuant hereto) and the provisions of the Declaration, as they may be
amended from time to time, are accepted, ratified and will be complied with.
.ARTICLE II,
Unit.Owuers
2.1 Name and Nature of Association. COVE KEY ASSOCIATION, INC.
(the "Association's shall be a nonprofit corporation, organized under the laws of the State
of North Carolina, and the membership shall be comprised of all of the Unit Owners as
herein provided, which Association shall be governed by the Executive Board (the
"Board"} as herein provided.
2.2 Place of Meetiggs. All meetings of the Association shall be held at the
Property, or at such other place, within the State of North Carolina, as shall be designated
in a notice of the meeting.
2.3 Annual Meeting. There shall be a regular annual meeting of the Unit
Owners held each year during the same month of each succeeding year, for the purpose
cxwxt+352352,.t

of electing members of the Board and for the transaction of such other business as may be
properly brought before the meeting.
2.4 Substitute Annual Meetings, If the annual meeting shall not be held in the
month designated by the Bylaws, a substitute annual meeting . may be called in
accordance with the provisions of Section 2.5 of this Article. A meeting so called shall
be designated and treated for all purposes as the annual meeting.
2.5 Special -Meetings. Special meetings of the Unit Owners may be called at
any time by the Board, the Chairman or upon the written request of the Unit Owners
owning at least twenty percent (20%) in common interest in the Common Elements other
than those Units held by the Declarant.
2.6 Notice of Meetings. Written or printed notice stating the place, day and
hour of any meeting shall be delivered or mailed not less than ten (10) days nor more
than fifty (50) days prior to the date thereof, either personally or by postage prepaid mail,
at the direction of the Board, the Chairman or Unit Owners calling the meeting, to each
person entitled to vote at such meeting, and, to all First Mortgagees so requesting under
the provisions of Article XII of the Declaration, who may request a representative to
attend the meeting of Unit Owners.
Notice given to any one tenant -in -common, tenant by the entirety or other joint
owner of a Unit shall be deemed valid notice to all joint owners of such Unit.
The notice of any meeting must state the time and place of the meeting and the
items on the agenda, including the general nature of any proposed amendment to the
Declaration or these Bylaws, and budget changes, and any proposal to remove Board
members or officers.
When a meeting is adjourned for less than thirty (30) days in any one
adjournment, it is not necessary to give any notice of the adjourned meeting, other than
by announcement at the meeting at which the adjournment is effective.
2.7 Quorum. The presence in person or by proxy at any meeting of the Voting
Members (as defined in Section 2.9 of this Article) having at least twenty percent (20%)
of the total votes shall constitute a quorum. If there is no quorum at the opening of the
meeting of Unit Owners, such meeting may be adjourned from time to time by the vote of
a majority of the Voting Members present, either in person or by proxy; and at any
adjourned meeting at which a quorum is present, any business may be transacted which
might have been transacted at the original meeting.
The Voting Members at a meeting at which a quorum is present may continue to
do business until adjournment, notwithstanding the withdrawal of enough Voting
Members to leave less d= a quorum.
2.8 Voting Rights. There shall be one person with respect to each Unit
ownership who shall be entitled to vote at any meeting of the Unit Owners (the "Voting
Member"). The Voting Member may be the Owner, or one of a group composed of all of
CHARIMM352vt 2

the Owners of a Unit, or may be some other person designated by such Owner(s) to act as
proxy on his or their behalf, and who need not be an Owner. ,Each Unit Owner or group
of Owners (including the Board, if the Board or its designee shall then hold title to one or
more Units) shall be entitled to one (1) vote for each Unit owned by such Owner.
2.9 Majority Vote. The vote of a majority of the votes represented at a
meeting at which a quorum small be present, in person or by proxy, shall be binding upon
all Unit Owners for all purposes except where a higher percentage vote is required by the
Declaration, these Bylaws or by law.
2.10 Proxies. The Voting Members may vote either in person or by agents duly
authorized by written proxy executed by such Unit Owner or his duly authorized
attorney -in -fact. A proxy shall be valid only for the particular meeting designated
therein, unless the person executing it specifies therein, the length of time for which it is
to continue in force, which time shall not extend beyond eleven months from the date of
its execution. Unless a proxy otherwise provides, any proxy -holder may appoint in
writing a substitute to act in his place. In order to be effective, all proxies must be filed
with the secretary or duly acting secretary of the Association, either during or prior to the
meeting in question.
2.11 Waiver of Notice. Any Voting Member may, at any time, waive notice of
any meeting of the Association in writing, and such waiver shall be deemed to be
equivalent to the giving of such notice. Attendance by a Voting Member at any meeting
of the Association shall constitute a waiver of notice by him of the time and place
thcreof except where a Voting Member attends a meeting for the express purpose of
objecting to the transaction of any business because the meeting was not lawfully called.
If all of the Voting Members are present at any meeting of the Unit Owners, no notice
shall be required, and any business may be transacted at said meeting.
2.12 ia Unit Owners. Any action which may be taken at a
n_Action by
meeting of the. Association may be taken, without a meeting if a consent in writing, setting
forth the action so taken, shall be signed by all of the Voting Members and filed with the
secretary of the Association to be kept in the Association's minute book.
ARTICLE M.
Executive Board
3.1 Nu:mber. The business and property of the Condominium shall be
managed and directed by the Executive Board (the "Board`% composed of three (3)
persons, or by such executive committees as the Board may establish pursuant to the
Bylaws; provided, however, that the Board may not act on behalf of the Association to
amend the Declaration, to terminate the Condominium, to exercise the Association's right
of first refusal under the Declaration, to elect members of the Executive Board, or to
determine the qualifications, powers, duties or terms of office of Board members. The
Board may, � however, fill vacancies in its membership for the unexpired portion of any
term.
CHAR)48S23.52A 3

3.2 initial Members. The initial members of the Board (referred to as
"directors" herein) shall be selected by the Declarant, and need not be Unit Owners.
Such initial directors shall serve at the election of the Declarant from the date upon which
the Declaration is recorded in the Iredell County Public Registry, until such time as their
successors are duly elected and qualified.
3.3 Election. Except as provided herein, the directors shall be elected at the
annual meeting of the Association, and those persons who receive the highest number of
votes shall be deemed to have been elected. Notwithstanding anything herein to the
contrary, the Board shall consist of three (3) directors during the period that Declarant is
entitled to appoint a majority of the directors. The Declarant shall have the right to
appoint all of the directors until the earlier of the following three dates: (a) within 120
days after the date by which 75% of the Units have been conveyed to Unit purchasers, or
(b) the date upon which Declarant surrenders control of the Condominium to the Unit
Owners, or (c) two (2) years after all Declarants have ceased to offer Units for sale in the
ordinary course of business.
The Declarant can turn over control of the Association to such Unit Owners other
than the Declarant prior to such dates in its sale discretion by causing all or part of its
appointed directors to resign, whereupon it shall be the affirmative obligation of Unit
Owners other than the Declarant to elect directors and assume control of the Association.
Provided at least thirty (30) days' notice ofDeclarant's decision to cause its appointees to
resign is given to Unit Owners, neither the Declarant, nor such appointees, shall be liable
in any manner in connection with such resignations even if the Unit Owners other than
the Declarant refuse or fail to assume control.
Within sixty (60) days after conveyance of twenty-five percent (250/0) of the Units
(including Units which may be created pursuant to special rights as provided in Section
1.20 of the Declaration) to Unit Owners other than the Declarant, at least one director and
not less than twenty-five percent (259%) of the directors of the Board shall be elected by
Unit Owners other than the Declarant Within sixty (60) days after conveyance of fifty
percent (50%) of the Units (including Units which may be created pursuant to special
rights as provided in Section. 1.20 of the Declaration) to Unit Owners other than the
Declarant, not less than thirty-three percent (33%) of the directors of the Board shall be
elected by Unit Owners other than the Declarant.
Within sixty (60) days after the Unit Owners other than the Declarant are entitled
to elect such director or directors, or sooner if the Declarant has elected to accelerate such,
event as aforesaid the Association shall call, and give not less than ten (10) days' nor
more than fifty (50) days' notice of a meeting of the Unit Owners to elect such director or
directors of the Board. The meeting may be called and the notice given by any Unit
Owner if the Association fails to do so.
The size of the Board may be increased or decreased from time to time upon the
affirmative vote of three -fourths (3l4) of all Unit Owners, provided that said Board shall
not be less than three (3) in number.
CRARMS523sm 4

3.4 Tenn and Qualification. Each director shall hold office for the term for
which he was elected, or until his death, resignation, retirement, removal, disqualification
or until his successor is elected and qualified. At the meeting of the Association in which
the Unit Owners other than the Declarant are entitled to elect a malonty of the directors,
the directors of the Board shall remain at three (3) and divided into three (3) classes, the
first class to consist of one (1) director, the second class to consist of one (1) director, and
the third class to consist of one (1) director. The director of the first class shall initially
hold office for a term of three years; the director of the second class shall initially hold
office for a term of two years; and the director of the third class shall initially hold office
for a term of one year. At all annual elections thereafter, a number of directors shall be
elected by the Voting Members to succeed the director whose term then expires. Each
such director shall serve for a three-year term. So long as Declarant shall own one or
more Units,. the director of the Board which Declarant has the right to designate shall be a
member(s) of the third class. Nothing herein contained shall be construed to prevent the
election of a director to succeed himself. Fach director, except those selected by the
Declarant pursuant to the Bylaws, shall be one of the Unit Owners or co -owners, or a
spouse of a Unit Owner or co-owner, provided, however, that in the event a Unit Owner
is a corporation, partnership, trust or other legal entity other than a natural person or
persons, then an officer or director of such corporation, partner of such partnership,
beneficiary of such trust or manager of such other legal entity, shall be eligible to serve as
a director. At least one (1) director at all times shall be an Office Unit Owner.
3.5 Removal. Directors may be removed from office with or without cause by
the of iirniative vote of at least sixty-seven percent (67%) of the votes entitled to be cast
by all Voting Members present and entitled to vote at any meeting of the Voting
Members at which a quorum is present. If any directors are so removed, new Board
members may be elected at the same meeting; provided, however, that the person(s)
selected by Declarant cannot be removed without the prior written consent of Declarant.
3.6 Vacancies. A vacancy occurring. in the Board may be filled by a majority
of the remaining directors, though less than a quorum, or by the sole remaining director;
but a vacancy created by an increase in the authorized number of directors shall be filled
only by election at an annual meeting or a special meeting of Unit Owners called for that
purpose. The 'Voting Members may elect a director at any time to fill any vacancy not
filled by the Board.
In the event that Declarant, in accordance with the rights herein established,
selects any person to serve on any Executive Board of the Association, Declarant shall
have the absolute right at any time, in its sole discretion, to replace such person with
another person to serve on any Board, Replacement of any person designated by
Declarant to serve on the Board shall be made by written instrument delivered to any
officer of the Association, which instrument shall specify the name of the person to be
replaced and the name of the person designated as successor to the person so removed
from the Board. The removal of any such Board member and the designation of his
successor shall be effective immediately upon delivery of such written instrument by
Declarant to any officer of the ,Association.
CHARM52"M 5

3.7 Compensation. The Board shall receive no compensation for their
services unless expressly allowed by the Board at the direction of the Unit Owners other
than the Declarant having two-thirds (2/3) of the total votes.
3.8 Executive Committees. The Board may, by resolution adopted by a
majority of the number of directors fixed by these Bylaws, designate two or more of its
members to constitute an executive committee, which committee, to the extent provided
in such resolution, shall have and may exercise all of the authority of the Board in the
management of the Condominium.
The Board may, in like manner, create such other committees as it deems
necessary and appropriate in aiding the Board to carry out its duties and responsibilities
with respect to the management of the Condominium.
3.9 Powers and Duties. The Board shall have the powers and duties necessary
for the administration of the affairs of the Condominium, and may do all such acts and
things, except such acts as by law or the Declaration or by these Bylaws may not be
delegated to the Board. Such powers and duties of the Board shall include, but shall not
be limited to, the following,
(a) Determining the Common Expenses required for the affairs of the
Condominium, including, without limitation, the operation and maintenance of
the Property.
(b) Collecting the Common Expenses from the Unit Owners.
(c) Supervising the operation, care, upkeep and maintenance of the
Common Elements.
(d) Employing and dismissing the personnel necessary for the
maintenance and operation of the Common Elements.
(e) Adopting and amending: such reasonable Rules and Regulations as
it may deem advisable for the maintenance, conservation and beautification of the
Property, and for the health, comfort, safety and general welfare of the owners
and occupants of the Property. Written notice of such Rules and Regulations shall
be given, to all Unit Owners and occupants, and the entire Property shall at all
times be maintained subject to such Rules and Regulations.
(0 Opening bank accounts on behalf of the Condominium and
designating the signatories required therefor.
(g) Selling, mortgaging, voting the votes appurtenant to or otherwise
dealing with Units acquired by the Association, or its designee, corporate or
otherwise, on behalf of all Unit Owners, subject to the Declaration and other
applicable restrictions, and organizing corporations to act as designees of the
Board in acquiring title to Units on behalf of all Unit Owners.

(h) Maintaining and repairing any Unit, if such maintenance or repair
is necessary in the discretion of the Board or by operation of applicable
restrictions to protect the Common Elements, or any other portion of the Property,
and a Unit Owner has failed or refused to perform such maintenance or repair
within a reasonable time after written notice of the necessity of said maintenance
or repair has been delivered or mailed by the Board to said Unit Owner; provided,
that the Board shall levy a specific assessment against such Unit Owner for the
costs of said maintenance or repair, including a reasonable amount of supervision.
(i) Entering any Unit when necessary in connection with any
maintenance or construction for which the Board is responsible; provided that,
except in the, event of emergencies, such entry shall be made during reasonable
hours with as little inconvenience to the Unit Owner as practical, and any damage
caused thereby shall be repaired by the Board, with such expenses being treated as
a Common Expense.
0) Signing all agreements, contracts, deeds, easement agreements,
and vouchers for the payment of expenditures and other instruments in such
manner as from time to froze shall be determined by written resolution of the
Board. However, any contracts or teases executed on behalf of the Association
prior to the passage of control of the Board to the Association must be terminable
by the Association without penalty on not more than ninety (90) days written
notice. In the absence of such determination by the Board, such document shall
be signed by the treasurer and countersigned by the Chairman.
(k) Obtaining insurance for the Property, including the Units, pursuant
to the applicable provisions of the Declaration.
0) Making or contracting for repairs, additions and improvements to
or alterations or restorations of the property in accordance with the other
provisions of these Bylaws and the Declaration, after damage or destruction by
fire or other casualty, or as a result of condemnation or eminent domain
proceeding.
(m) Contracting for all goods, services and insurance, payment for
which is to be made from the Common Expense fund.
(n) Instituting, defending, or intervening in litigation or administrative
proceedings in the name of or on behalf of the Association or two or more Unit
Owners on matters affecting the Condominium.
(o) Borrowing money on behalf cif the Condominium when required in
connection with the operation, care, upkeep and maintenance of the Common
Elements or the acquisition of property, and granting mortgages on and/or
security interests in Association owned property; provided, however, that the
consent of the Unit Owners of at least two-thirds (2f3rds) the votes represented at
a meeting at which a quorum has been attained in accordance with the provisions
CM4RIWM52vt 7

of these Bylaws shall be required for the borrowing of any sum in excess of
$5,000.
(p) Imposing charges for late payment of assessments and, after notice
and an opportunity to be heard, levy reasonable fines for violations of the
Declaration, the Bylaws, or rules and regulations established by the Association,
including the right to file a lien on a Unit, all in accordance with Sections 47C-3-
107 and 47C-3-107A of the Act.
(q) At its discretion, authorizing Unit Owners or other persons to use
portions of the Common Elements for private functions and gatherings and
imposing reasonable charges for such private use.
(r) Exercising (i) all powers specifically set forth in the Declaration,
the Articles of Incorporation, these Bylaws and in the Act, (ii) all powers
incidental thereto, and (iii) all other powers of a non-profit North Carolina
corporation-
(s) Suspending the right of any Unit Owner to vote or use the
Common Elements of the Condominium as long as said Unit Owner is delinquent
in the payment of Common Expenses or is otherwise in violation of the
Declaration or any exhibits thereto or applicable rules and regulations.
(t) Grant easements for the installation and maintenance of electrical,
natural gas, telephone, cable television, water and sewerage utilities and drainage
facilities upon, over, under and across the Common. Elements without the assent
of the Unit Owners if such easements are requisite for the convenient use and
enjoyment of the Condominium as determined in the sole discretion of the Board.
3.10 Managing A ent The Board may engage the services of any person, fun),
or corporation to act as managing agent at a compensation established by the Board, to
Perform such duties and services as the Board shall authorize, other than the powers set
forth in subdivisions (a), (e), (g), (h), (i), (p), (q) and (t) of Section 9 of this Article M.
Any management agreement for the Condominium shall be terminable by either party
without cause and without payment of a termination fee or penalty upon 90 days or less
written notice thereof and the terms of such agreement may not exceed one year,
renewable by agreement of the parties for successive one year periods. Any management
agreement shall be terminable by either party for cause upon the giving of not more than
thirty (30) days written notice. When professional management has been previously
required, any decision to establish self -management by the Association shall require the
prior consent of 67 percent of the Unit Owners.
3.11 Duties of Declarant Within a reasonable time after Unit Owners other
than the Declarant elect a majority of the members of the Board (but not more than sixty
(60) clays after such event), the Declarant shall deliver control of the Association and
shall deliver to the Association all property [noted in Subsections (a) through (o)] of the

Unit Owners and of the Association held or controlled by the Declarant, including, if
applicable:
(a) The original or a photocopy of the recorded Declaration of
Condominium, and all amendments thereto. If a photocopy is provided, the
Declarant must certify by affidavit that it is a complete copy of the actual
recorded Declaration.
(b) A copy of the Articles of Incorporation of the Association.
(c) A copy of the Bylaws of the Association.
(d) The minute books, including all minutes, and other books and
records of the Association.
(e) Any rules and regulations which have been adopted.
(f) Resignations of resigning officers and Board members.
(g) Association funds or the control thereof
(h) A copy of the plans and specifications utilized in the construction or
remodeling of improvements on the Property and the supplying of equipment, and
for the construction and installation of all mechanical components servicing the
improvements and the Condominium, with a certificate, in affidavit form, of the
Declarant or an architect or engineer authorized to practice in North Carolina, that
such plans and specifications represent, to the best of their knowledge and belief,
the actual plans and specifications utilized in the construction and improvement of
the Condominium and the constriction and installation of the mechanical
components serving the Improvements and the Condominium,
(i) Insurance policies.
Q) Copies of any Certificates of Occupancy which may have been
issued for the Condominium.
(k) Any other permits issued by governmental bodies applicable to the
Condominium in force or issued within one (1) year prior to the date the Unit
Owners take control of the Association.
(1) All written warranties of contractors, subcontractors, suppliers and
manufacturers, if any, that are still effective.
(m) A roster of Unit Owners and their addresses and telephone
numbers, if known, as shown on the Declarant's records.
(n) Employment contracts or service contracts in which the
Association is one of the contracting parties, or service contracts in which the
GHARM2352A 9

Association or Unit Owners have an obligation or responsibility, directly or
indirectly, to pay some or all of the fee or charge of the person or persons
performing the service.
(o) All other contracts to which the Association is a party.
ARTICLE IV.
Meetings of Directors
4.1 Organizational Meeting, The first sheeting of the initial Board shall be
held at such time as the Declarant shall determine, but in no event later than one year
from the date of incorporation of the Association. The first meeting of a newly elected
Board shall be held within fifteen (15) days following the meeting of the Unit Owners at
which the Board was elected. No notice shall be necessary to the newly elected members
of the Board in order to legally constitute such meeting, providing that a quorum is
present.
4.2 Re Meetin . A regular meeting of the Board shall be held
immediately after, and at the sa m place as, the annual meeting or substitute annual
meeting of the Unit Owners. In addition, the Board may provide by resolution the time
and place, either within or without the State of North Carolina, for the holding of a
regular meeting of the Board.
4.3 SSReai� Meetings. Special meetings of the Board may be called by or with
the request of the chairman, or by any two (2) directors. Such meetings may be held
either within or without the State of North Carolina.
4.4 Notice of Meetings. Regular meetings of the Executive Board may be
held without notice. The person(s) who called a special meeting of directors shall, at
least two (2) days prior to said meeting, give notice thereof by any usual means of
communication. Such notice need not specify the purpose for which the meeting is
called.
Attendance by a director at a meeting shall constitute a waiver of notice of such
meeting except where a member.' attends the meeting for the express purpose of objecting
to the transaction of any business because the meeting was not lawfully called. Meetings
of the Board shall be open to all Unit Owners and notices of meetings shall be posted
conspicuously for the attention of Unit Owners in advance of the meeting, except for
regular meetings of the Board, which may be held without notice.
4.5 Waiver of Notice. Any member of the Board may at any time waive
notice of any meeting of the Board in writing, and such waiver shall be deemed
equivalent to the giving of such notice. Attendance by a director at any meeting of the
Board shall constitute a waiver of notice by him of the time and place thereof. If all of
CHARP25n5tvi 10

the directors are present at any meeting of the Board, no notice shall be required, and any
business may be transacted at such meeting.
4.6 Quorum. A majority of the number of directors fixed by these Bylaws
shall be required for and constitute a quorum for the transaction of business at any
meeting of the Board.
4.7 Manner of Acting. Except as otherwise provided in this section, the act of
the majority of the directors present at a meeting at which a quorum is present shall be
the act of the Board. A vote of a majority of the number of directors fixed by these
Bylaws shall be required to adopt a resolution constituting an executive committee.
Vacancies in the Board may be filled as provided in Section 3.6 of these Bylaws.
4.8 OrggW2adojg Each meeting of the Board shall be presided over by the
chairman, and in the absence of the chairman, by any person selected to preside by vote
of the majority of the Board members present. The secretary, or in his absence, an
assistant secretary, or in the absence of both the secretary and the assistant secretary, any
person designated by the chairman of the meeting shall act as secretary ofthe muting.
4.9 Informal Action of Board. Action taken by a majority of the directors
without a meeting is nevertheless Board action if written consent to the action in question
is signed by all of the directors and Bled with the minutes of the proceedings of the
Board, whether done'before or after the action so taken.
4.10 Minutes. The Board shall keep minutes of its proceedings, which shall be
available for inspection by the Unit Owners during reasonable business hours.
4.11 Liability of the Board and 0f&crs. The directors and the officers
provided for in Article V hereof shall not be liable to the Unit Owners for any mistake of
judgment, negligence or otherwise, except for their own individual willful misconduct or
bad faith. The Unit Owners shall indemnify and hold harmless each of the directors and
the officers against all contractual liability to others arising out of contracts made by the
Board or the officers on behalf of the Condominium, unless any such contract shall have
been made in bad faith or contrary to the provisions of the Declaration or these Bylaws.
It is intended that the directors or any officer shall have no personal liability with respect
to any contract made by them on behalf of the Condominium, except to the extent that
they are Unit Owners and have liability as such. It is also intended that the liability of
any Unit Omer arising out of any contract made by the Board or the officers, or out of
the aforesaid indemnity in favor of the directors or the officers, shall be limited to such
proportion of the total liability thereunder as his interest in the Common Elements bears
to the interests of all the Unit Owners in the Common Elements. Every agreement made
by the Board, by the managing agent or by the officers on behalf of the Condominium
shall provide that the members of the Board, the managing agent or the officers, as the
case may be, are acting only as agents for the Unit Owners, and shall have no personal
liability thereunder.
CHARM523s20 11

ARTICLE V.
Officers
5.1 NILm_ber. The principal officers of the Condominium shall consist of a
chairman of the Board, a secretary, a treasurer, and such vice chairmen, assistant
secretaries, assistant treasurers and other officers as the Board may from time to time
elect. Any two or more offices may be held by the same person, except the offices of
chairman and secretary.
5.2 Election and Term. The officers of the Condominium shall be elected by
the Board. The chairman, vice chairman, secretary and treasurer shall be elected from
among the Board, and all other officers, if any, need only be a Unit Owner. The officers
elected by the initial Board are not required to be Unit Owners. The election of officers
may be held at the regular annual meeting of the Board.
Each officer shall hold office for a period of one year, or until his death,
resignation, retirement, removal, disqualification, or until his successor is elected and
qualifies.
5.3 Removal. Any officer or agent elected or appointed by the Board may be
removed by the Board, with or without cause; but such removal shall be without
prejudice to the contract rights, if any, of the person so removed.
5A Compensation. No officer shall receive any compensation from the
Condominium for acting as such.
5.5 Chairman of the Board. The chairman of the Board shall be the principal
executive officer of the Condominium; and, subject to the control of the Board, shall
supervise and control the management of the Condominium. The chairman shall, when
present, preside at all meetings of the Board and of the Unit Owners and, in general, shall
perform all duties incident to the office of chairman of the Board, end such other duties
as may be prescribed from time to time by the Board.
5.6 Vice Chairmam The vice chairman, and if there be more than one, the
vice chairmen, designated by the Board, shall, in the absence or disability of the
chairman, have the powers and perform the duties of said office. In addition, each vice
chairman shall perform such other duties and have such other powers as shell be
prescribed by the chairman of the Board.
5.7 Ste. The secretary shall keep accurate records of the acts and
proceedings of all meetings of Unit Owners and directors. He shall give, or cause to be
given, all notices required by law and by these Bylaws. He shall have general charge of
the minute books and records of both the Association and the Board. He shall sign such
instruments as may require his signature, and, in general, shall perform all duties incident
to the office of secretary, and such other duties as may be assigned him from time to time
by the chatuian of the Board or by the Board.
CKARIW2s 52VJ 12

5.8 Treasurer. The treasurer shall have custody of all Condominium fluids
and securities, and shall receive, deposit or disburse the same under the direction of the
Board. He shall keep full and accurate accounts of the finances of the Condominium in
books especially provided for that purpose. He shall cause a true statement of its assets
and liabilities as of the close of each fiscal year, and of the results of its operations and
changes in surplus for each fiscal year, all in reasonable detail, to be prepared and
distributed to all Unit Owners and members of the Board on or before the 15th day of the
third month following the close of each fiscal year. The statement so filed shall be kept
available for inspection by any Unit Owner for a period of three (3) years. The treasurer
shall also prepare and file all reports and returns required by federal, state or local law,
and shall generally perform all other duties as may be assigned to him from time to time
by the chairman of the Board
5.9 Assistant S%retades_and Treasurers. The assistant secretaries and
assistant treasurers, if any, shall, in the absence of the secretary and treasurer,
respectively, have all the powers and perform all of the duties of those officers, and they
shall in general perform such other duties as shall be assigned to them, by the secretary or
the treasurer, respectively, or by the chairman of the Board or the Board.
ARTICLE V1.
Operation of the Pro e
6,1 Assessment and Determination of mmon ENMnses. The Board shall
from time to time, and at least annually, prepare a budget for the Condominium, for the
purpose of determining the amount of the Assessments to be collected from the Unit
Owners in order to provide for the Common Expenses of the Condominium, and allocate
and assess such. Common Expenses among the Unit Owners, according to their
percentage of interest in the Common Elements as set forth in the Declaration, taking into
consideration any expected income and any surplus from the prior year's operation. The
Common Expenses shall include, without limitation, the expenses, costs and charges
incurred w connection with the administration, operation and management of the
Condominium Property; the cost of maintenance, repair, replacement and restoration of
the Common Elements, or any part thereof; the cost of all insurance premiums on all
policies of insurance required to be or which have been obtained by the Board pursuant to
the provisions of the Declaration; such amounts as the Board may deem proper for the
convenience, comfort and wail -being of the Unit Owners, and for the operation,
management and maintenance of the Property, including, without limitation, an amount
for working capital of the Condominium, for a general operating reserve, for a reserve
fund for replacements, and to make up any deficit in the Common Expenses for any prior
year, in proper eases, the cost of administration and of maintenance and repair of the
Limited Common Elements; and any oilier expenses lawfully agreed upon.
In establishing a reserve fund for replacements, the Board shall take into account
the number and nature of replaceable assets, the expected life of each asset, and the
expected repair or replacement cost. The Board shall then set the required capital
contribution in an amount sufficient to permit meeting the projected capital needs of the
OM«asaMV1 13

Association with respect to both amount and timing by equal annual installments over the
applicable period.
Upon acquisition of record title to a Unit, each Unit Owner shall contribute to the
working capital reserve fimd of the Association an amount equal to one-fourth (1/4) of
the amount of the General Assessment for that Unit as determined by the Board. Such
contributions are to be used by the Association solely for the maintenance, repair and
replacement of the Coramon Elements and Declarant is prohibited from using the
contributions to defray any of its expenses, reserve contributions or construction costs or
to make up any budget deficit during the Declarant Control Period Such contribution
shall not be considered as advanced payment of the General Assessment applicable to the
Unit. Declarant shall transfer control of the working capital reserve fund to a segregated
fund of the Association upon expiration of the Declarant Control Period.
Within thirty (30) days after adoption by the Board of any proposed budget for the
Condominium, the Board shall provide a summary of the budget to all Unit Owners and
shall give notice of a date for a meeting of the Unit Owners to consider ratification of the
budget not less than fourteen (14) nor more than thirty (30) days after mailing of the
summary and notice. A quorum need not be present at the meeting_ The budget is
ratified unless at the meeting a majority of all the Unit Owners present and entity to cast
a vote reject the budget, in the event the proposed budget is rejected, the periodic budget
last ratified shall be continued until such time as the Unit Owners ratify a subsequent
budget proposed by the Board.
6.2 Payment of Assessments. All Unit Owners shall be obligated to pay (1)
General Assessments for Common Expenses assessed by the Board from time to time,
and at least quarterly in accordance with the percentage interest allocations set forth in
the Declaration; (2) Special Assessments to be established and collected. as provided
herein, and (3) specific assessments against any Unit which are established pursuant to
the terms of these Bylaws (together, the immediate foregoing (1), (2) and ((3) above are
referred to as the "Assessments" and each as an "Assessment"). A late payment charge
in an amount to be determined by the Board shall be assessed for any assessment
installment not paid within fifteen (15) days bf its due date. Any installment not paid
within fifteens (15) days of its due date shall be subject to the late payment charge and
shall accrue interest as provided in Section 6.5, and shall constitute a lien on the Unit as
provided in Section 6.6 of this Article V1.
No Unit Owner shall be liable for the payment of any part of the Common
Expenses assessed against his Unit subsequent to a sale, transfer or other conveyance by
him (made in accordance with the provisions of the Declaration and applicable
restrictions of record) of such Unit, together with his interest in the Common Elements
(and. Limited Common Elements, if any). A purchaser of a Unit shall be jointly and
severally liable with the seller for the payment of Assessments assessed against such Unit
prior to the acquisition by the purchaser of such Unit only if the purchaser expressly
assumes such obligation in writing; provided, however the lien assessed against such Unit
shall remain in full force and effect. Any such purchaser shall be entitled to a statement
from the Board setting forth the amount of the unpaid Assessments against the seller, and
CHMM52352A 14

the Unit conveyed shall not be subject to alien for any unpaid assessments in excess of
the amount shown on the statement. Provided, however, that a First Mortgagee or other
purchaser of a Unit at a foreclosure sale of such Unit or a First Mortgagee who takes a
deed in lieu of foreclosure shalt not be liable for, and such Unit shall not be subject to, a
lien for the payment of Common Expenses assessed prior to the foreclosure sale or deed
in lieu of foreclosure. Such unpaid Common Expenses shall be deemed to be Common
Expenses collectible from all of the Unit Owners, including such purchaser, his
successors and assigns.
6.3 Special_ Assessments. The Association may levy Special Assessments for
Common Expenses not covered by the General Assessment, applicable to that year only
for the purpose of defraying, in whole or in part, the cost of any construction,
reconstruction, repair or replacement of a capital improvement upon the Common
Elements, including fixtures and personal property related thereto, provided that any such
Assessment must be approved by the vote of Owners of Units to which at least two-thirds
(2/3) of the votes in the Association are allocated cast in person or proxy at a meeting
duly called for this purpose. Such Special Assessments shall be charged to the Units
according to their percentage interests in the Common Elements. In addition, the Board
may levy Special Assessments against one or more, but less than all, of the Units to cover
repairs or maintenance for which such Unit Owner or Owners are responsible and which
they have failed to make, or for repairs or maintenance required of a Unit Owner or Unit
Owners which impair the value of the Common' Elements or the Unit or Units, or
expenses which are incurred in the abatement of or as a result of a violation by a Unit
Owner or Owners of the provisions of the Declaration, the Bylaw or the rules,
regulations, or for fines levied for said violations, or where the Board has purchased a
Unit on behalf of one or more Unit Owners. The period of assessment and manner of
payment of such assessment shall be determined by the Board.
6.4 Collection of Assessments. The Board shall determine Common Expenses
against the Unit Owners from time to time, at least quarterly, and may, as the Board shall
determine, take prompt action to collect any Assessments due from any Unit Owner
which remain unpaid for more than fifteen (15) days from their due date.
The Board shall notify First Mortgagees pursuant to the provisions of the
Declaration for which any amount assessed pursuant to these Bylaws remains unpaid for
more than sixty (60) days from their due date, and in any other case where the Unit
Owner of such Unit is in default with respect to the performance of any obligation
hereunder for a period in excess of sixty (60) days.
6.5 Default in Payment_ of Assessment. in the event of default by any Unit
Owner in paying to the Board any amounts assessed by the Board, such Unit Owner shall
be obligated to pay a late payment charge as established by the Baird from time to time,
and interest at the rate of twelve percent .(1254) on such amounts which remain unpaid
thirty (30) days from their due date; together with all expenses, including attorneys' fees
(if permitted by law), incurred by the Board in collecting such unpaid sums. If a Unit
Owner shall be in default in payment of an installment of an Assessment, the Board may
accelerate the remaining installments upon ten (Ill) days' written notice to such Unit
CHARM"nA 15

Owner, whereupon the entire unpaid balance of such Assessment shall become due upon
the date stated in such notice.
6.6 Lien and Personal Obligation, Each Assessment provided for in this
Article, together with late payment charges, interest and expenses, including attorneys'
fees (as permitted by law), shall be a charge on and a continuing lien upon the Unit
against which the Assessment is made when a notice of such lien has been filed of record
in the office of the Clerk of Superior Court ,of Iredell County, North Carolina, in the
manner provided by Article 8, Chapter 44, of the North Carolina General Statutes,
provided such notice of lien shall not be recorded until such sums assessed remain unpaid
for a period of fifteen (IS) days after the same shall become due. Said notice of lien shall
also secure all Assessments against the Unit becoming due thereafter until the lien has
been satisfied. Said lien may be foreclosed in the manner as a deed of trust on real
property. In addition, each Unit Owner shall be personally liable for any Assessment
against his Unit becoming due and payable while he is the Owner of such Unit.
6.7 Prigft of Assessment Lien. The lien of the Assessments provided for in
this Article shall be prior and superior to all other liens except (a) ad valorem taxes, and
(b) all sums unpaid on deeds of trust, mortgages or other encumbrances against the Unit
prior to the docketing of the Assessment lien. The sale or transfer of any Unit shall not
affect the Assessment lien against such Unit. Provided, however, the sale of a Unit
pursuant to the foreclosure sale or execution sale instituted by a superior lien holder or
conveyance to a First Mortgagee by deed in lieu of foreclosure shall extinguish the
inferior Assessment lien against the subject Unit but no such sale or transfer shall relieve
each Unit from liability for any Assessments thereafter becoming due or for any fixture
lien in connection therewith. The Association shall share in the excess, if any, realized
by the sale of any Unit pursuant to a foreclosure or action instituted by a superior lien
holder, to the extent of its lien
6.8 Owner's Non -Use, No Unit Owner may exempt himself from liability for
Assessments and his other obligations to the Association by waiver of the use or
enjoyment of any portion of the Common Elements or by the abandonment or sale of his
Unit.
6.9 Foreclosure of Liens for Unpaid Assessments. Following the institution of
any action by the Board to foreclose on a Unit because of unpaid Assessments, the Unit
Owner shall pay a reasonable rental for the use of his Unit, and the plaintiff in such
foreclosure action shall be entitled to the appointment of a receiver to collect the rental.
The Board, acting on behalf of the Association, or on behalf of any one or more
individual Unit Owners, if so instructed, shall have the power to purchase such Unit at
the foreclosure sale and to acquire, hold, lease, mortgage, vote the votes appurtenant to,
convey or otherwise deal with the same, subject, however, to applicable restrictions of
record. A suit to recover a money judgment for unpaid Assessments shall be
maintainable without foreclosing or waiver of the Assessment lien. Where a First
Mortgagee or the purchaser of a Unit obtains title to the Unit as a result of foreclosure of
the First Mortgage, such purchaser, its successors and assigns, shall not be liable for the
share of the Common Expenses or Assessments by the Board chargeable to such Unit
CH mMsmzo 16

which became due prior to the acquisition of title to such Unit by such purchaser. Such
unpaid share of Common Expenses or Assessments shall be deemed to be a Common
Expense collectible from all Unit Owners, including such purchaser, its successors and
assigns.
6.10 Statement of,Qa=Qn Fxnenses. The Board shall promptly provide any
Unit Owner so requesting the same in writing with a written statement of all unpaid
charges due from such Unit Owner, for which it may institute a reasonable charge at its
discretion.
6.11 Abatement and En
joirurent of Violations by Unit Owners. The violation
of any rule or regulation adopted by the Board or the breach of any bylaw contained
herein, or the breach of any provision of the Declaration, shall give the Board the right, in
addition to any other rights set forth in these Bylaws: (a) to enter the Unit in which, or as
to which, such violation or breach exists, and to make any repairs, and to summarily
abate and remove, at the expense of the defaulting Unit Owner, any structure, thing or
condition which may exist therein contrary to the intent and meaning of the provisions
hereof, and the Board shall not thereby be deemed guilty in any manner of trespass; or,
(b) to enjoin, abate, or remedy by appropriate legal pror.eedings, either at law or in
equity, the continuance of any such breach at the expense of the defaulting Unit Owner;
(c) in any case of flagrant or repeated violation by a Unit Owner, to require such Unit
Owner to give sufficient sureties for his future compliance with such Condominium
documents; or (d) after notice and an opportunity to be heard, to levy reasonable
assessments and fines in accordance with Sections 47C-3-107 and 47C-3-107A of the Act
for such violations. The failure of the Board to so act with respect to any such violation
or breach shall not be deemed a waiver of the Board's right to act with respect to the
same or any other breach or violation.
6.12 lVlaix wance and Roam
(a) Each Unit Owner shall maintain, repair and replace, at his sole cost
and expense, all portions of his Unit which may become in need thereof,
including the components of the heating and air conditioning system within and
appurtenant to each Unit, if any, ail bathmorn and kitchen fixtures and appliances,
light fixtures, interior, non-loadbearing walls, doors, floors, ceilings, carpeting,
drapes and other items within the Unit, whether structural or non-structural,
ordinary or extraordinary (other than maintenance of and repairs to any Common
Elements not specifically set forth herein contained therein and not necessitated
by the negligence, misuse or neglect of the Unit Owner, his invitees, guests,
agents, servants, lessees, employees or contractors). Each Unit Owner shall clean
the Limited Common Elements appurtenant to his Unit and replace all light bulbs
in fixtures (if any) located in such Limited Common Elements. Each Unit Owner
shall be responsible for replacing all heating and air conditioning filters, if any,
required in his Unit. Each Unit Owner shall further be responsible for all
damages to any and all other Units and/or to the Common Elements which his
failure to undertake his maintenance responsibility may engender. All damages to
the Common Elements or other Units intentionally or negligently caused by the
CHARMS2332v] 17

Unit Owner, his invitees, guests, agents, servants, lessees, employees or
contractors shall be promptly repaired by the Unit Owner at his sole cost and
expense; provided that there is excluded from the provisions contained in this
section such repairs necessitated by casualties insured against by the Association
to the extent the Association receives insswance proceeds for such repairs, the
Unit Owner shall be in said instance, required to pay such portion of the costs of
such maintenance, repair and replacement as shall exceed the amount of the
applicable insurance proceeds. If the Unit Owner does not make those repairs to
be made by him within thirty (30) days from written demand by the Board, the
same may be repaired by the Board, and the cost thereof shall be assessed against
the Unit owned by the subject Unit Owner,
(b) The Association, through its Board, shall maintain, repair and
replace all portions of the Common Elements and Limited Common Elements
(except as provided in Section 6.12(a) above) which shall require same, whether
located inside or outside of the Units (unless necessitated by the negligence,
misuse or neglect of a Unit Owner, his invitees, guests, agents, servants, lessees,
employees or contractors, in which rase such expense shall be charged to such
Unit Owner, or unless herein provided to the contrary), and the cost thereof shall
be charged to all the Unit Owners as a Common Expense.
6.13 Restrictions on Unit Owners. No Unit Owner shall perform or cause to be
performed any maintenance, repair or replacement work which disturbs the rights of the
other Unit Owners, jeopardizes the soundness or the safety of the Condominium property,
or reduces the value thereof. Each Unit Owner shall cause any work so performed or
being performed on the Unit, which, in the sole opinion of the Board, violates the terms
of this section, to be immediately corrected, and he shall refrain from recommencing or
continuing any such work without written consent of the Board.
6.14 Duty►, to__Report. Each Unit Owner shall promptly report to the Board or its
agent any deflect or need for repairs or replacement the responsibility for which is that of
the Association.
6.15 Additions. Alterations or Improvements by the s§ciabon. Whenever in
the judgment of the Board the Common Elements shall require additions, alterations or
improvements, the Board shall proceed with such additions, alterations or improvements,
and shall assess all Unit Owners for the costs thereof, as a Common Expense, subject,
however, to the provisions of Sections 6.1 and 6.3 of this Article VI.
6.16 Additions, Alterations or Improvements by Unit Owners. No Unit Owner
shall make any addition, alteration or improvement in or to his Unit, which impairs the
structural integrity or mechanical systems or lessens the support of any part of the
Condominium. No Unit Owner shall matte any addition, alteration or improvement
winch affects the exterior portion or outward appearance of such Unit, without the prior
written consent thereto of the Board. The Board shall have the obligation to answer any
written request by a Unit Owner for approval of a proposed addition, alteration or
improvement in or to such Unit Owner's Unit within thirty (30) days after such request,

and failure to do so within the stipulated time shall constitute a consent by the Board to
the proposed addition, alteration or improvement.
6.17 Use of Common Elements. A Unit Owner shall not interfere with the use
of the Conunon Elements by the remaining Unit Owners and their guests and invitees.
6.18 Right of Access. A Unit Owner shall grant a right of access to his Unit to
the managing agent and/or any other person authorized by the Board or the managing
agent, for the purpose of malting inspections or for the purpose of correcting any
condition originating in his Unit and threatening another Unit or a Common Element, or
for the purpose of performing installations, alterations or repairs to the mechanical or
electrical services or other Common Elements in his Unit or elsewhere in the Building, or
to correct any condition which violates the provisions of any First Mortgage covering
another Unit, provided that requests for entry are made in advance, and that any such
entry is at a time reasonably convenient to the Unit Owner. In the case of an emergency,
such right of entry shall be immediate, whether or not the Unit Owner is present at the
time such request for entry is made, or such entry is at a time reasonably convenient to
the Unit Owner.
6.19 Common E eases for Utilities. Any utilities which may be provided to
the Units tirmugh a single or common meter or facility, and utilities furnished to any
portion of the Common Elements, shall be paid by each Unit Owner as and when billed
according to the extent of such Unit Owner's use or, at the option of the Board, such may
be paid by the Association and assessed against the Units as a Common Expense.
6.20 Rules of Conduct. Rules and regulations concerning the use of the Units
and the Common Elements may be promulgated and amended by the Board Such Rules
and Regulations shall be equally applicable to all Unit Owners similarly situated and
shall be uniform in their application and effect. Copies of such Rules and Regulations
shall be furnished by the Board to each Unit Owner prior to their effective date.
6.21 Remedies G;Mulative, All rights, remedies and privileges granted to the
Association or the Owner or Owners of a Unit pursuant to any terms, provisions,
covenants or condition of the Declaration or other above -mentioned documents, shall be
cumulative, and the exercise of any one or more shall not constitute an election of
remedies, nor shall it preclude the party thus exercising the same from exercising such
other and additional rights, remedies or .privileges as may be available to such party at
law or in equity.
6.22 Nonwaiver of Remedies.
(a) The failure of the Association or any Unit Owner to enforce any
right, provision, covenant or condition which may be granted by the Declaration
or the other above -mentioned documents shall not constitute a waiver of the right
of the Association or the Unit Owner to enforce such right, provision, covenant or
condition in the future.
CHARN2523Rvs 19

(b) The failure of Declarant to enforce any right, privilege, covenant or
condition which may be granted to it by the Declaration or other above -mentioned
documents shall not constitute a waiver of the right of Declarant to thereafter
enforce such right, provision, covenant or condition in the future.
(c) The failure of a First Mortgagee to enforce any right, provision,
privilege, covenant or condition which may be granted to it or them by the
Deciaratlon or other above -mentioned documents, shall not constitute a waiver of
the right of said party or parties to thereafter enforce such right, privilege,
covenant or condition in the future.
ARTICLE VIL
Financial Records and Statements
7.1 Re., Worts. The Board shall keep detailed records of the actions of the Board
and the managing agent, minutes of the meetings of the Board, minutes of the meetings
of the Association, and financing records and books of account of the Condominium,
including a chronological listing of receipts and expenditures, as well as a separate
account for each Unit, which, among other things, shall contain the amount of each
Assessment against each Unit, the date when due, the amounts paid and the. balance
remaining unpaid. The financial records and books of account shall be available for
examination by all Unit Owners, their duly authorized agents or attorneys, and all lien
holders, their attorneys and authorized agents, at convenient hours that shall be set and
announced for general knowledge. A written annual nary of all receipts and
expenditures of the Condominium shall be rendered by the Board to all Unit Owners on
or before the 1 Sth day of the third month following the close of each fiscal year. In
addition, an annual report of the receipts and expenditures of the Condominium shall be
rendered by the Board to all Unit Owners and to all First Mortgagees who have requested
the same, promptly a$er the end of each fiscal year.
7.2 Common Expense Funds. All sums collected by the Association, either as
Assessments for the Common Expenses or Special Assessments may be commingled in a
single fund, but they shall be held for the Owners for the purposes for which they are
paid, and shall, subject to the right of withdrawal or refund provided herein, be credited
to accounts from which shall be paid the charges for which the Assessments are made.
Such accounts shall include the following, or such other and further accounts as the
Board from time to time shall determine:
(a) General Common Expense Account —to which shall be credited
collection of that portion of the Common Expense Assessments received for
defraying the costs of operating the Condominium on a day -today basis,
including normal maintenance and repairs, insurance and related charges;
(b) Capital Reserve Account —to which shall be credited, all sums
collected which are to be allocated for capital expenditures for the reconstruction,
repair and replacement of Common Elements at a future date.
iilP.l M523S2Y1 20

All sums collected by the Association as Assessments daring any fiscal year and
allocated to the General Common Expense Account or to any other account from which
non -capital expenditures may be made, in excess of expenditures during such fiscal year
made from or chargeable to said account or accounts shall be deemed contributions to
capital at the end of said fiscal year, and shall be transferred to the Capital Reserve
Account. All amounts credited to said Capital Reserve Account shall, be contributions to
capital, and shall be held in trust by the Association for future expenditures of a capital
nature, and shall serve to reduce the Assessments required for said capital expenditures.
7.3 Records. All books of account and financial records shall be kept in
accordance with good and acceptable accounting practices. The Board may, in its
discretion, have a certified public accountant prepared annual financial statement made
available for inspection by sit Unit Owners and all First Mortgagees on or before the 15th
day of the second month following the close of each fiscal year.
ARTICLE VIU.
Amendments to ftLlaws
8.1 Notice. Notice of the subject matter of a proposed amendment shall be
included in the notice of a meeting at which.a proposed amendment is to be considered
8.2 Adoption. A resolution for the adoption of a proposed amendment may be
proposed either by a majority of the Board or by not less than one-third (1/3) of the
Voting Members of the Association. Directors and members of the Association not
present in person or by proxy at the meeting considering the amendment may express
their approval in writing, provided that such approval is delivered to the Secretary at or
prior to the meeting. The approval must be by not less than a majority of the votes of all
Voting Members of the Association represented at a meeting at which a quorum has been
attained
8.3 Limitation. No amendment may be adopted which would eliminate,
modify, prejudice, abridge or otherwise adversely affect any rights, benefits, privileges or
priorities granted or reserved to the Declarant or First Mortgagees without the consent of
said Declarant and First Mortgagees in each instance. No amendment shall be made that
is in conflict with the Articles of Incorporation of the Association. or Declaration without
satisfaction of the requirements therein contained. No amendment to this Section shall be
valid.
8.4 Execution and Recording. A copy of each amendment shall be attached to
a certificate certifying that the amendment was duly adopted as an amendment to the
Declaration and Bylaws, which certificate shall be executed by the Chairman or Vice
Chairman and attested by the Secretary or Assistant Secretary of the Association with the
formalities of a deed, or by the Declarant alone if the amendment has been adopted
consistent with the provisions of the Declaration allowing such action by the Declarant.
CHAR 8W52v) 21

The amendment shall be effective when the certificate and a copy of the amendment is
recorded in the Register of Deeds for Iredell County, North Carolina.
ARTICLE IX.
Condemnation
9.1 General. Whenever all or any part of the Condominium Property shall be
taken over by any authority having the power of condemnation or eminent domain, each
Unit Owner and all First Mortgagees shall be entitled to notice thereof and to participate
in the proceedings incident thereto unless otherwise prohibited by law. The award made
for such taking shall be payable to the Association. Unless Otherwise provided by law at
the time of such taking, any award made therefor shall be disbursed by the Association as
provided in this Article IX.
9.2 Common_Elements. If the taking is confined to the Common Elements
(general or limited) on which improvements shall have been constructed, and at least
ninety (9©0%) per cent of the total vote of the members of the Association entitled to vote
shall vote within sixty (60) days after such taking to replace the improvements, or any
part thereof, on the remaining land included in the Common Elements (general or
limited) and according to the plans therefor first approved by the Association, then the
Board shall arrange for such replacement and the Association shall disburse the proceeds
of such award in the same manner as they are required to disburse insurance proceeds
where damage or destruction to the Common Elements (general or limited) is to be
repaired or reconstructed as provided for in the Declaration or herein; subject, however,
to the right hereby reserved to the Association by a majority vote of the Voting Members,
to provide for the disbursement by the Association of the remaining proceeds held by it
(after the payment of all costs incident to such replacement) to the Unit Owners or any
one or more of them or to their First Mortgagees as their interests may appear in amounts
disproportionate to their percentages of undivided interest in the Common Elements
(general or limited) established herein, which disproportionate amounts shall correspond
with the disproportionate damage sustained by the Unit Owners or any one or more of
them as the Association may determine. If at least ninety (90%) per cent of the Voting
Members shall not decide within sixty (60) days after such taking to replace said
improvements or if the taking is confined to the Common Elements (general or limited)
on which no improvements shall have been constructed, then the Association shall
disburse the proceeds of the award in the manner hiereinabove provided for the
disbursement of the remaining proceeds of an award after payment of all costs incident to
replacement of improvements taken has been made„ including the right reserved to the
Association to provide for the disbursement of the remaining proceeds held by it to the
Unit Owners in disproportionate amounts. All disbursements made under this Section 9.2
shall be in strict compliance with Section 47C-1-107 of the Act.
9.3 Units. If the taking includes one or more Units, or any part or parts
thereof, whether or not there is included in the taking any part of the Common Elements
(limited or general), then the award shall be disbursed and all related matters shall be
handled pursuant to and in accordance with the consent of all Unit Owners and First
C:HARIM2352VI 22

Mortgagees affected and the Executive Board of the Association thereafter, expressed in
a duly recorded amendment to the Declaration of Condominium, all in accordance with
Section 47C-1-I07 of the Act.
9.4 Termination. The Executive Board shall call a meeting of all Unit Owners
at least forty -fine (45) days prior to any final taking by the condemning authority to
determine the action to be taken pursuant to Sections 9.2 and 9.3 above. Except in the
event of a taking of all the Units by eminent domain, in the event the condemnation
involves more than ten per cent (10%) of the value of the Common Elements (limited or
general) andlor more than fifteen per cent (15%) of the total value of all Units, the
Condominium may be, terminated at such meeting by written approval of not less than
ninety per cent (90%) of the Voting Members. Any termination agreement shall be in
strict compliance with 47C-2-118 of the Act.
ARTICLE IL.
Miscellaneous
10.1 Ad Valorem Taxes. Each Unit shall be deemed to be a separate parcel and
shall be separately assessed and taxed. Each Unit Owner shall be liable solely for the
amount of tax assessed against his Unit and- shall not be affected by the consequences
resulting from the tax delinquency of other Unit Owners. All tangible personal property
owned by the Association in connection with the maintenance, upkeep and repair of the
Common Elements shall be listed for said tastes in the name of and paid by the
Association. Each Unit Owner is also responsible for his pro rats, share of taxes assessed
on his portion of the Common Elements, if any.
10.2 Notification to Morogees, Any Owner who mortgages his Unit shall
notify the Association of the name and address of the Mortgagee, and the Association
shall maintain such information in a book entitled "Mortgagees of Condominium&" In
addition to any other notification provided for in the Declaration or these Bylaws, the
Association may, at the written request of a Mortgagee of any such Unit, report any
unpaid assessments due from the Owner of such Unit. The Association shall notify each
Mortgagee appearing in said book the name of each company insuring the Condominium
Property under the roaster policy and the amounts of the coverages thereunder.
10.3 SeyqMhility. Invalidation of any covenant, condition, restriction or other
provision of the Declaration or these Bylaws shall not affect the validity of the remaining
portions thereof which shall remain in foil force and effect.
10A Successors lurid. The rights, privileges, duties and responsibilities set
forth in the Declaration or these Bylaws, as amended from time to time, shall run with the
ownership of the Condominium Property and shall be binding upon all persons who own
or hereafter acquire any interest in the Condominium Property.
10.5 Gex►deL SJngWqr. Plural. Whenever the context so permits, the use of the
singular or plural shall be interchangeable in meaning and the use of any gender shall be
deemed to include all genders.
cxnx11252352ri 23

10.6 Principal Office —Registered Office. The initial principal office and
registered office of the Association shall be located at 18147 Nest Catawba Avenue,
Cornelius, North Carolina 28031.
10.7 Other Offices. The Association may have other offices at such other
places within North. Carolina as the Beard may from time to time determine or as the
affairs of the Association may require.
10.8 Seal. The seal of the Association shall contain the name of the
Association, the word "Seal,,, the year of incorporation and such other words and figures
as is desired by the Board of Directors. When obtained, the seal shall be impressed in the
margin of this Section of the Bylaws.
10.9 Fiscal Year. The fiscal year of the Association shall be the calendar year.
10.10 Definitions. The Definitions contained in Article I of the Declaration are
incorporated herein by this reference, unless the context clearly indicates a different
meaning therefor.

CERTIFICATION
I, the undersigned, do hereby certify:
THAT I am the duly elected and acting secretary of Cove Key Association. Inc., a
North Carolina non-profit corporation, and
THAT the foregoing Bylaws constitute the original Bylaws of said Ass9ciatijon, as
duty adopted at a meeting of the initial Executive Board thereof held on the h2nday
Of h)QU�Q.!' gL6-r , 2005.
IN WITNESS WHEREQ , I have hereunto subscribed my name and affixed the
seal of said Association, this P day of �i� 4 — 2005.
Secretary
CJiAR1%=52V1

EXHIBIT C
To Declaration
Plans
The Plans for COVE KEY CONDOMINIUM prepared by Forrest R. Narmour,
Registered Architect, are duly filed in the Office of the Register of Deeds for iredell
County, North Carolina in Condominium Unit Ownership File No. Z , reference
to which is hereby made, and said Plans are incorporated herein by reference as though
fully set out herein.
CHAR I%952352v 1

EXHIBIT D
To Declaration
Plat
The plat of survey for COVE KEY CONDOMINIUM dated October 18, 2005,
prepared by Douglas E. Morrison, PLS of R. B. Pharr & Associates, P.A., entitled
"CONDOMINIUM PLAT FOR COVE KEY CONDOMINIUM" and consisting of one
(1) sheet, is duly filed in the Office of the Register of Deeds for Iredell County, North
Carolina in Condominium Unit Ownership File No. �2, Said survey is
incorporated herein by reference as though fully set out herein.
CHARB2523520

EXHIBIT EE
To Declaration
Unit
Unit Tvne
Unit Area
Percentage of
Number
((Samm- ED
Undivided interest
in gp_M M Elements
5F-1
SF
3558
5.95
S-2
A
3404
5.69
S-3
B
3000
5.01
S-4
A
3686
6.16
S-5
C
3049
5.10
S-6
D
1940
3.24
S-7
E
3440
5.75
S-8
D
1940
3.24
S-9
E
3440
5.75
S-10
C
3049
5.10
N-1
C
3049
5.10
N-V4
F
3571
5.97
N-3
E
3473
5.81
N-5
E
3443
5.76
N-6
C
3049
5.10
N-7
A
3373
5.64
N-8
B
2973
4.97
N-9
B
2984
4.99
N-10
A
2M
5.67
59,812
100°/Q
r HARlrsMszvl
Percentage of Undivided
Interest in Common
Expenses
7.00
6.00
5.50
6.00
5.00
3.75
4.75
3.75
4.75
5.00
5.00
6.00
4.75
4.75
5.00
6.00
5.50
5.50
6.00
100%

SIT F
To Declaration
Liens. Defects and Encumbrances
1. Terms, conditions and restrictions of this Declaration, the Bylaws, the
Plans and the Rules and Regulations, as each may be amended from time to time.
2. Restrictions, conditions and easements of public record.
3. Unrecorded easements, discrepancies or conflicts in boundary lines,
shortages in area and encroachments which an accurate and complete survey would
disclose, including easements and encroachments, if any, shown on the Plat and Plans.
4. Easements and restrictions described in Articles III and IV of this
Declaration including, but not limited to,
(i) easements in favor of the appropriate utility companies to serve the
Property and all appurtenances thereto;
(ii) easements in favor of the Association and to such persons as
authorized by the Association for utility installations within the walls of the Units;
(iii) an easement in favor of the Declarant, the ,Association, appmpriate
utility, sewage disposal and service companies and governmental agencies and
authorities for such service lines and equipment as may be necessary or desirable
over the Units and Common Elements to serve any portion of the Property;
(iv) easements reserved by the Declarant through the Common
Elements as reasonably necessary for discharging its obligations under this
Declaration and completion of construction of the improvements in the
Condominium;
(v) easements reserved by the Declarant to maintain sales offices or
:models in the Condominium and to place advertising signs for the Condominium
on the Property;
(vi) an easement in favor of the Association, a Unit Owner, the
Executive Board or any other person as pmmitted under the Declaration and
Bylaws to inspect, maintain, repair and replace the Common Elements;
(vii) an easement for the encroachment of improvements upon any Unit
or the Common Elements; and

(viii) the right of the Executive Board of the Association to grant
easements encumbering the Common Elements for utility purposes and other
purposes the Board deems for the benefit of the Condominium.
(ix) easements reserved to the Declarant and the Association over the
Common Elements for the construction, installation, maintenance and
replacement of signage and entrance monumentation, including lighting and
landscaping, along North Carolina Highway 73.
(x) easements reserved to Declarant, its successors and assigns, (1)
over a twenty-five (25) foot strip of land of the Common Elements adjacent to and
along the 760 foot mean sea level contour line of Lake Norman for the
construction, maintenance and stabilization of the shoreline with treated wood
bulkheads and rip rap and for the installation of other waterside improvements as
Declarant, its successors and assigns, may determine to be necessary or desirable
to enhance the Condominium and any boatslip facility which may be located
adjacent thereto; (2) an easement over the Common Elements within said twenty-
five (25) foot easement for the installation, maintenance and repair of utilities
including water, sewer, electricity, gas, telephone and cable television; (3) a
permanent easement for pedestrian ingress, egress and regress over and upon any
pedestrian walkways that may be located within the twenty-five (25) foot
easement; and (4) an easement for ingress, egress and regress of vehicular and
pedestrian traffic in, upon and across the streets, parking lots and other Common
Elements of the Condominium for access to and from said twenty-five (25) foot
easement for constriction, maintenance and use of improvements and utilities
located within said twenty --five (25) foot easement.
(xi) easements to the State Highway Commission recorded in Book
256 at page 15, Book 423 at Page 543 and Book 424, Page 394, to
Transcontinental Gas Pipe Line. Corporation recorded in Book 162, Pages 42 and
43; to Piedmont Natural Gas Company, Inc. recorded in Book 320, Page 300 and
Book 448, Page 533 ; to Duke Power Company recorded in Book 339 at Page 333
and Book 350 at Page 480; all recorded in the Iredell County Public Registry.
(xii) access and utility easements to Heater Utilities, Inc. recorded in
Book 1147, Page 610 in the Iredell County Public Registry.
(xiv) Easements and restrictions recorded in Book 1018, Page 576 in the
Iredell County Public Registry.
CHAR 14523520

EXHIBIT G
To Declaration
ARTICLES OF INCORPORATION
OF
COVE KEY ASSOCIATION. INC.
I, the undersigned, being a natural person of full age, make these Articles of
Incorporation for the purpose of farming a nonprofit corporation pursuant to the
provisions of Chapter 55A of the North Carolina General Statutes.
ARTICLE I
The name of the corporation is Cove Key Association, Inc.
ARTICLE IT
DURATION
The period of duration of the corporation shall be perpetual.
ARTICLE III
PURPOSES
The purpose for which the corporation is organized are:
(a) To provide for the management, maintenance, preservation, administration
and operation of Cove Key Condominium, a condominium organized pursuant to Chapter
47C of the North Carolina General Statutes, the North Carolina Condominium Act, as set
forth in that certain Declaration of Condominium to be recorded in the Office of the
Register of Deeds for Iredell County, North Carolina (the "Declaration" }.
(b) To promote the health, safety and welfare of the "Unit Owners" (as
defined in the Declaration) and residents within the jurisdiction of this corporation.
(c) To engage in any and all lawful activities incidental to the foregoing
purposes, except as restricted herein.
CFLARIW2332.]

ARTICLE IV
POWERS
In order to carry out the purposes for which this corporation has been formed, the
corporation shall have all of the powers set forth in Chapter SSA of the North Carolina
General Statutes, including, but not by way of limitation, the power:
(a) To exercise all of the privileges and powers and to perform all of the
duties and obligations of the corporation as set forth in the Declaration and the Bylaws
attached thereto;
(b) To fix, levy, collect and enforce payment of (by any lawful means) all
charges or assessments pursuant to the terms of the Declaration and Chapter 47C of the
North Carolina General Statutes, the North Carolina Condominium Act; to pay all
expenses in connection therewith and all office and other expenses incident to the
conduct of the business of the corporation, including all licenses, taxes or governmental
charges levied or imposed against the property of the corporation;
(c) To acquire (by gift, purchase or otherwise), own, hold, improve, build
upon, operate, maintain, convey, sell, lease, transfer, dedicate for public use or otherwise
dispose of real or personal property in connection with the affairs of the corporation;
(d) To borrow money, and, in accordance with the terms of the Declaration
and the North Carolina Condominium Act, to mortgage, pledge, grant a deed of trust or
hypothecate any or all of the Common Elements (as defined in the Declaration) as
security for money borrowed or debts incurred, subject to the property rights of the
members of the corporation as provided in the Declaration and the Bylaws attached
thereto;
(e) To dedicate, sell or transfer all of any part of the Common Elements to
any public agency, authority or utility or other entity for such purposes and subject to
such conditions as may be agreed upon by the members of the corporation as provided in
the Declaration and the Bylaws attached thereto.
In addition, the corporation shall have all of the powers set forth in North
Carolina General Statutes Section 47C-3-102.
ARTICLE V
NO PECUNIARY GAIN
This corporation is a nonprofit corporation, and no part of the net earnings (if any)
of the corporation shall inure to the pecuniary benefit of its Members (as defined
hereinbelow), officers, or directors.
C1L4R11 MM2v1 2

ARTICLE VI
MEMBERSHIP AND VOTING RIGHTS
Membership in the corporation {"Membership") shall be limited to the Owners of
Units (as defined in the Declaration) in Cove Key Condominium, and every Owner of a
Unit shall automatically be a member (a "Mecxiber") of the corporation. Members shall
not include persons or entities which hold an interest in a Unit merely as security for the
payment or performance of an obligation. Membership in the corporation shall be
appurtenant to and array not be separated from Unit ownership.
Each Member shad be entitled to cast one (l) vote for each Unit owned by such
Member. In the event fee simple title to a Unit is owned of record by more than one
person or entity, all such persons or entities shall be Members, but the votes with respect
to any such jointly owned Unit shall be cast as hereinafter provided.
If the fee simple title to any Unit is owned of record by two or more persons or
entities (whether individually or in a fiduciary capacity), the votes with respect to any
such jointly owned Unit may be cast by any one of the joint Owners in person or by
proxy, except that the holder or holders of a life estate in a Unit shall have the sole right
to cast the votes allocated to the Unit. N more than one of the joint Owners vote or more
than one life estate holder in a Unit vote, the unanimous action of all joint Owners or
joint life estate holders voting shall be necessary to effectively cast the votes allocated to
the particular Unit. Such unanimous action shall be conclusively presumed if any one of
such multiple Owners casts the votes allocated to that Unit without protest being made
promptly to the person presiding over the meeting by any of the other of such joint
Owners.
In no event may the votes which may be cast with respect to any Unit be divided
among joint Owners of the Unit or cast in any maser other than as a whole, it being the
intention that there be no "splitting" of votes that may be cast by any Member or
Members.
ARTICLE VIF
DISSOLUTION
The Association may be dissolved with the assent given in writing and signed by
not less than two-thirds (213) of each class of voting members. Upon dissolution of the
Association, other than incident to a merger or consolidation, the assets of the
Association shall be dedicated to an appropriate public agency to be used for purposes
similar to those for which this Association was created. In the event that such dedication
is refused acceptance, such assets shall be granted, conveyed and assigned to any non-
profit corporation, association trust or other organization to be devoted to such similar
purposes.
CXARJ%8M52v: 3

ARTICLE VIII
REGISTERED AGENT AND OFFICE
The address of the initial registered office and principal glace of business of the
corporation in the State of North Carolina is located in Mecklenburg County at 18147
West Catawba Avenue, Cornelius, Mecklenburg County, North Carolina, 28031, and the
name of the initial registered agent at such address is J. Christopher Kennerly.
ARTICLE IX
EXECUTIVE BOARD OF DIRECTORS
The affairs of the corporation shall be managed by an Executive Board of no less
than three (3) members who need not be Members of the corporation. The number of
members of the Executive Board may be changed from time to time in accordance with
the Bylaws of the corporation. The number of persons constituting the initial Executive
Board is three (3), and the names and addresses of the persons who are to act as initial
directors of the Executive Board until the first annual meeting of the Members or until
their successors are elected and qualified are:
Name
Brad Pejsa
J. Christopher Kennerly
Chrissy Pejsa
Address
18147 West Catawba Avenue
Cornelius, N.C. 28031
19147 West Catawba Avenue
Cornelius, N.G. 28031
18147 West Catawba Avenue
Cornelius, N.G. 28031
The Members of the corporation shall elect members to serve on the Executive
Board at each annual meeting, such members of the Executive Board to serve for a term
or the terms as set forth in the Bylaws. Members of the Executive Board may succeed
themselves in office.
ARTICLE X
AMENDMENTS
Amendments of these Articles of incorporation shall require the assent of the
Members entitled to exercise at least three -fourths (3/4ths) of the entire vote of the
Membership. Provided, however, no amendment to these Articles of Incorporation shall
be adopted or gassed which shall impair or prejudice the rights of Declarant provided for
in these Articles of Incorporation, in the Declaration, or in the Bylaws, without the
consent of Declarant.
{CIA BOM3S2A 4

Cam— -M Fs YIFY�+iI

ARTICLE M
INCORPORATOR
The name and address of the incorporator is: Timothy W. Gilbert, I00 North
Tryon Street, Suite 4700, Charlotte, North Carolina 28202.
IN WITNESS WHEREOF, I, the undersigned incorporator, have hereunto set my
hand and seal, this day of , 20Q5.
Timothy W. Gilbert
STATE OF NORTH CAROLII+IA
COUNTY OF MECKL,ENBURG
This is to certify that on this day of , 200E before me,
-- _A a Notary Public of Mecklenburg County, North Carolina,
personally appeared Timothy W. Gilbert, who executed the foregoing Articles of
Incorporation of Cove Key Association, Inc., and, after having first made known, to him
the contents thereof, he did acknowledge that he signed, sealed and delivered the same as
his voluntary act and deed for the uses and purposes therein expressed.
1N WITNESS WHEREOF, I have hereunto set my hand and seal, this day
Of 2005.
Notary Public
My commission expires:
(Notarial Seal)
CHAR1185235M 6

C200534300496
ARTICLES OF INCORPORATION
OF
COVE KEY ASSOCIATION, INC.
SOSID: 817356
Date Filed: 12/13/200511.32.00 AM
Elaine F. Marshall
North Carolina Secretary of State
C200534300496
1, the undersigned, being a natural person of full age, make these Articles of
Incorporation for the purpose of forming a nonprofit corporation pursuant to the
provisions of Chapter 55A of the North Carolina General Statutes.
ARTICLE I
NAME
The name of the corporation is Cove Key Association, Inc.
ARTICLE 11
DURATION
The period of duration of the corporation shall be perpetual.
ARTICLE III
PURPOSES
The purposes for which the corporation is organized are:
(a) To provide for the management, maintenance, preservation, administration
and operation of Cove Key Condominium; a condominium organized pursuant to Chapter
47C of the North Carolina General Statutes, the North Carolina Condominium Act, as set
forth in that certain Declaration of Condominiwn recorded in the Office of the Register of
Deeds for Iredell County, North Carolina (the "Declaration").
(b) To promote the health, safety and welfare of the "Unit Owners" (as
defined in the Declaration) and residents within the jurisdiction of this corporation.
(c) To engage in any and all lawful activities incidental to the foregoing
purposes, except as restricted herein.
ARTICLE IV
POWERS
In order to carry out the purposes for which this corporation has been formed, the
corporation shall have all of the powers set forth in Chapter 55A of the North Carolina
General Statutes, inching, but not by way of limitation, the power:
(a) To exercise all of the privileges and powers and to perform all of the
duties and obligations of the corporation as set forth in the Declaration and the Bylaws
attached thereto;
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(b) To fix, levy, collect and enforce payment of (by any lawful means) all
charges or assessments pursuant to the terms of the Declaration and Chapter 47C of the
North Carolina General Statutes, the North Carolina Condominium Act; to pay all
expenses in connection therewith and all office and other expenses incident to the
conduct of the business of the corporation, including all licenses, taxes or governmental
charges levied or imposed against the property of the corporation;
(c) To acquire (by gift, purchase or otherwise), own, hold, improve, build
upon, operate, maintain, convey, sell, lease, transfer, dedicate for public use or otherwise
dispose of real or personal property in connection with the affairs of the corporation;
(d) To borrow money, and, in accordance with the terms of the Declaration
and the North Carolina Condominium Act, to mortgage, pledge, 'grant a deed of trust or
hypothecate any or all of the Common Elements (as defined in the Declaration) as
security for money borrowed or debts incurred, subject to the property rights of the
members of the corporation as provided in the Declaration and the Bylaws attached
thereto;
(e) To dedicate, sell or transfer all of any part of the Common Elements to
any public agency, authority or utility or other entity for such purposes and subject to
such conditions as may be agreed upon by the members of the corporation as provided in
the Declaration and the Bylaws attached thereto.
In addition, the corporation shall have all of the powers set forth in North
Carolina General Statutes Section 47C-3-102,
ARTICLE V
NO PECUNIARY GAIN
This corporation is a nonprofit corporation, and no part of the net earnings (if any)
of the corporation shall inure to the pecuniary benefit of its Members (as defined
hereinbelow), officers, or directors.
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ARTICLE VI
MEMBERSHIP AND VOTING RIGHTS
Membership in the corporation ("Membership") shall be limited to the Owners of
Units (as defined in the Declaration) in Cove Key Condominium, and every Owner of a
Unit shall automatically be a member (a "Member") of the corporation. Members shall
not include persons or entities who hold an interest in a Unit merely as security for the
payment or performance of an obligation. Membership in the corporation shall be
appurtenant to and may not be separated from Unit ownership.
Each Member shall be entitled to cast one (1) vote for each Unit owned by such
Member. in the event fee simple title to a Unit is owned of record by more than one
person or entity, all such persons or entities shall be Members, but the votes with respect
to any such jointly owned Unit shall be cast as hereinafter provided.
If the fee simple title to any Unit is owned of record by two or more persons or
entities (whether individually or in a fiduciary capacity), the votes with respect to any
such jointly owned Unit may be cast by any one of the joint Owners in person or by
proxy, except that the holder or holders of a life estate in a Unit shall have the sole right
to cast the votes allocated to the Unit. If more than one of the joint Owners vote or more
than one life estate holder in a Unit vote, the unanimous action of all joint Owners or
joint life estate holders voting shall be necessary to effectively cast the votes allocated to
the particular Unit. Such unanimous action shall be conclusively presumed if any one of
such multiple Owners casts the votes allocated to that Unit without protest being made
promptly to the person presiding over the meeting by any of the other of such joint
Owners.
In no event may the votes which may be cast with respect to any Unit be divided
among joint Owners of the Unit or cast in any manner other than as a whole, it being the
intention that there be no "splitting" of votes that may be cast by any Member or
Members.
ARTICLE VII
DISSOLUTION
The Association may be dissolved with the assent given in writing and signed by
not less than two-thirds (2/3) of each class of voting members. Upon dissolution of the
Association, other than incident to a merger or consolidation, the assets of the
Association shall be dedicated to an appropriate. public agency to be used for purposes
similar to those for which this Association was created. In the event that such dedication
is refused acceptance, such assets shall be granted, conveyed and assigned to any non-
profit corporation, association, trust or other, organization to be devoted to such similar
purposes.
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ARTICLE VIII
REGISTERED AGENT AND OFFICE
The address of the initial registered office, the mailing address and principal place
of business of the corporation in the State of North Carolina is located in Mecklenburg
County at 18147 West Catawba Avenue, Cornelius, Mecklenburg County, North
Carolina, 28031, and the name of the initial registered agent at such address is J.
Christopher Kennerly.
ARTICLE IX
EXECUTIVE BOARD OF DIRECTORS
The affairs of the corporation shall be managed by an Executive Board of no less
than three (3) members who need not be Members of the corporation. The number of
members of the Executive Board may be changed from time to time in accordance with
the Bylaws of the corporation. The number of persons constituting the initial Executive
Board is three (3), and the names and addresses of the persons who are to act as initial
directors of the Executive Board until the first annual meeting of the Members or until
their successors are elected and qualified are:
Name
Brad Pejsa
J. Christopher Kennerly
Chrissy Pejsa
Address
18147 West Catawba Avenue
Cornelius, N.C. 28031
18147 West Catawba Avenue
Cornelius, N.C. 28031
18147 West Catawba Avenue
Cornelius, N.C. 28031
The Members of the corporation shall elect members to serve on the Executive
Board at each annual meeting, such members of the Executive Board to serve for a term
or the terms as set forth in the Bylaws. Members of the Executive Board may succeed
themselves in office.
ARTICLE X
AMENDMENTS
Amendments of these Articles of Incorporation shall require the assent of the
Members entitled to exercise at least three -fourths (3/4ths) of the entire vote of the
Membership. Provided, however, no amendment to these Articles of Incorporation shall
be adopted or passed which shall impair or prejudice the rights of Declarant provided for
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in these Articles of Incorporation, in the .Declaration, or in the Bylaws, without the
consent of Declarant.
ARTICLE XI
INCORPORATOR
The name and address of the incorporator is: Timothy W. Gilbert, 100 North
Tryon Street, Suite 4700, Charlotte, North Carolina 28202.
IN WITNESS WHEREOF, I, the undersigned incorporator, have hereunto set my
hand and seal, this _tLl� day of November, 2005.
Timothy W. Wbert
WAR* M11MIRIUM
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