SW8060843_HISTORICAL FILE_20061019

STORMWATER DIVISION CODING SHEET
POST -CONSTRUCTION PERMITS
PERMIT NO.
SW ��`//;)
DOC TYPE
❑CURRENT PERMIT
❑ APPROVED PLANS
Ir HISTORICAL FILE
❑ COMPLIANCE EVALUATION INSPECTION
DOC DATE
YYYYMMDD

State Stormwater Management Systems
Permit No SW8 060843
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
STATE STORMWATER MANAGEMENT PERMIT
HIGH DENSITY DEVELOPMENT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of
North Carolina as amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Ms Sonya Culler and Bill Clark Homes of Wilmington, LLC
Osprey Landing Subdivision
Brunswick County
FOR THE
construction, operation and maintenance of four infiltration basins in compliance with
the provisions of 15A NCAC 2H 1000 (hereafter referred to as the "stormwater rules')
and the approved stormwater management plans and specifications and other
supporting data as attached and on file with and approved by the Division of Water
Quality and considered a part of this permit
This permit shall be effective from the date of issuance until October 19, 2016 and shall
be subject to the following specified conditions and limitations
I DESIGN STANDARDS
1 This permit is effective only with respect to the nature and volume of stormwater
described in the application and other supporting data
2 This stormwater system has been approved for the management of stormwater
runoff as described in Section 16 on page 3 of this permit The subdivision is
permitted for 121 lots, each allowed 5,400 square feet of built -upon area
3 Approved plans and specifications for this project are incorporated by reference
and are enforceable parts of the permit
4 Basin #1 must be operated with a bypass and 50' vegetated filter Basin #3 must
be operated with a bypass, but no vegetated filter is required No bypass is
required for Basins #2 and #4
5 All stormwater collection and treatment systems must be located in either
dedicated common areas or recorded easements The final plats for the project
will be recorded showing all such required easements, in accordance with the
approved plans
Page 2 of 8

State Stormwater Management Systems
Permit No SW8 060843
6 The following design elements have been permitted for the infiltration basin
stormwater facilities, and must be provided in the systems at all times
Basin 1
Basin 2
Basin 3
Basin 4
a Drainage Area, ac
(1) Onsite, ft2
2) Offsite, ft2
31 64
1,378,238
None
527
229,561
None
21 87
952,657
None
405
175,982
None
b Total Impervious Surfaces, ft2
(1) Lots at 5,400 ft2
2 Roads/Parking, ft2
701,568
361,800
339,768
76,651
54,000
22,651
309,834
194,400
115,434
41,714
27,000
14,714
c Bann Depth, feet
80
40
35
40
d Design Storm, in
1 5
4 5 (no bypass)
3 0 (no filter)
4 5 (no bypass)
e Bottom Elevation, FMSL
160
230
235
240
f Permitted Surface Area Bottom, ft2
10,231
7,909
22,817
6,928
Permitted Storage Volume, ft
169,125
55,466
108,193
43,364
h Storage/Bypass Elevation, FMSL
21 17
2556
2689
2596
i Type of Soil
Mandarin
Expected Infiltration Rate, in/hr
202
204
180
102
k Time to Draw Down, hours
99
41
32
74
1 Receiving Stream 1 River Basin
UT Dutchman Creek / Cape Fear
m Stream Index Number
18-88-9-3- 2 5
n Classification of Water Body
SA, HQW
11 SCHEDULE OF COMPLIANCE
1 No homeowner/lot owner/developer shall fill in, alter, or pipe any drainage feature
(such as swales) shown on the approved plans as part of the stormwater
management system without submitting a revision to the permit and receiving
approval from the Division
2 The permittee is responsible for verifying that the proposed built -upon area for
the entire lot, including driveways and sidewalks, does not exceed the allowable
built -upon area Once the lot transfer is complete, the built -upon area may not be
revised without approval from the Division of Water Quality, and responsibility for
meeting the built -upon area limit is transferred to the individual property owner
3 The Director may notify the permittee when the permitted site does not meet one
or more of the minimum requirements of the permit Within the time frame
specified in the notice, the permittee shall submit a written time schedule to the
Director for modifying the site to meet minimum requirements The permittee
shall provide copies of revised plans and certification in writing to the Director
that the changes have been made
4 The permittee shall submit to the Director and shall have received approval for
revised plans, specifications, and calculations prior to construction, for any
modification to the approved plans, including, but not limited to, those listed
below
a Any revision to the approved plans, regardless of size
b Project name change
c Transfer of ownership
d Redesign or addition to the approved amount of built -upon area
e Further subdivision, acquisition, or sale of all or part of the project area
The project area is defined as all property owned by the permittee, for
which Sedimentation and Erosion Control Plan approval or a CAMA Major
permit was sought
f Filling in, altering, or piping of any vegetative conveyance shown on the
approved plan
Page 3 of 8

State Stormwater Management Systems
Permit No SW8 060843
5 The Director may determine that other revisions to the project should require a
modification to the permit
6 The stormwater management system shall be constructed in its entirety,
vegetated and operational for its intended use prior to the construction of any
built -upon surface
i During construction, erosion shall be kept to a minimum and any eroded areas of
the system will be repaired immediately Infiltration systems should not be used
as erosion control devices, due to the potential clogging If the stormwater
system was used as an Erosion Control device, it must be restored to design
condition prior to operation as a stormwater treatment device, and prior to
occupancy of the facility
8 Upon completion of construction, prior to issuance of a Certificate of Occupancy,
and prior to operation of this permitted facility, a certification must be received
from an appropriate designer for the system installed certifying that the permitted
facility has been installed in accordance with this permit, the approved plans and
specifications, and other supporting documentation Any deviations from the
approved plans and specifications must be noted on the Certification
9 The permittee shall at all times provide the operation and maintenance
necessary to assure that all components of the permitted stormwater system
function at optimum efficiency The approved Operation and Maintenance Plan
must be followed in its entirety and maintenance must occur at the scheduled
intervals including, but not limited to
a Semiannual scheduled inspections (every 6 months)
b Sediment removal
c Mowing and revegetation of side slopes
d Immediate repair of eroded areas
e Maintenance of side slopes in accordance with approved plans and
specifications
f Debris removal and unclogging of structures, orifice, catch basins and
piping
g Access to all components of the system must be available at all times
10 Records of maintenance activities must be kept and made available upon
request to authorized personnel of DWQ The records will indicate the date,
activity, name of person performing the work and what actions were taken
11 Permanent seeding requirements for the stormwater control must follow the
guidelines established in the North Carolina Erosion and Sediment Control
Planning and Design Manual
12 Prior transfer of the permit, the stormwater facilities will be inspected by DWQ
personnel The facility must be in compliance with all permit conditions Any
items not in compliance must be repaired or replaced to design condition prior to
the transfer Records of maintenance activities performed to date will be
required
Page 4of8

State Stormwater Management Systems
Permit No SW8 060843
13 Prior to the sale of any lot, the following deed restrictions must be recorded
a The following covenants are intended to ensure ongoing compliance with
State Stormwater Management Permit Number SW8 060843, as issued
by the Division of Water Quality under NCAC 2H 1000
b The State of North Carolina is made a beneficiary of these covenants to
the extent necessary to maintain compliance with the Stormwater
Management Permit
c These covenants are to run with the land and be binding on all persons
and parties claiming under them
d The covenants pertaining to stormwater may not be altered or rescinded
without the express written consent of the State of North Carolina, Division
of Water Quality
e Alteration of the drainage as shown on the approved plans may not take
place without the concurrence of the Division of Water Quality
The maximum built -upon area per lot is 5,400 square feet This allotted
amount includes any built -upon area constructed within the lot property
boundaries, and that portion of the right-of-way between the front lot line
and the edge of the pavement Built upon area includes, but is not limited
to, structures, asphalt, concrete, gravel, back, stone, slate, coquina and
parking areas, but does not include raised, open wood decking, or the
water surface of swimming pools
g Lots within CAMA's Area of Environmental Concern may be subject to a
reduction in their allowable built -upon area due to CAMA regulations
h All runoff from built upon area on the lot must drain into the permitted
system This may be accomplished through providing roof drain gutters
which drain to the street, grading the lot to drain toward the street, or
grading perimeter swales and directing them into the pond or street Lots
that will naturally drain into the system are not required to provide these
measures
Built -upon area in excess of the permitted amount will require a permit
modification
14 A copy of the recorded deed restrictions must be submitted to the Division within
30 days of the date of recording the plat, and prior to selling lots The recorded
copy must contain all of the statements above, the signature of the Permittee, the
deed book number and page, and the stamp/signature of the Register of Deeds
15 This permit shall become voidable unless the facilities are constructed in
accordance with the conditions of this permit, the approved plans and
specifications, and other supporting data
16 Built upon area includes, but is not limited to, structures, asphalt, concrete,
gravel, brick, stone, slate, coquina and parking areas, but does not include
raised, open wood decking, or the water surface of swimming pools
Page 5 of 8

State Stormwater Management Systems
Permit No SW8 060843
III GENERAL CONDITIONS
This permit is not transferable to any person or entity except after notice to and
approval by the Director In the event there is either a desire for the facilities to
change ownership, or there is a name change of the Permittee, a
"Name/Ownership Change Form" must be submitted to the Division of Water
Quality accompanied by appropriate documentation from the parties involved
This may include, but is not limited to, a deed of trust, recorded deed restrictions,
Designer's Certification and a signed Operation and Maintenance plan The
project must be in good standing with DWQ The approval of this request will be
considered on its merits and may or may not be approved
2 The permittee is responsible for compliance with all of the terms and conditions
of this permit until such time as the Director approves the transfer request
3 Failure to abide by the conditions and limitations contained in this permit may
subject the Permittee to enforcement action by the Division of Water Quality, in
accordance with North Carolina General Statute 143-215 6A to 143-215 6C
4 The issuance of this permit does not preclude the Permittee from complying with
any and all statutes, rules, regulations, or ordinances which may be imposed by
other government agencies (local, state, and federal) which have jurisdiction
5 In the event that the facilities fail to perform satisfactorily, including the creation of
nuisance conditions, the Permittee shall take immediate corrective action,
including those as may be required by this Division, such as the construction of
additional or replacement stormwater management systems
6 The permit may be modified, revoked and reissued or terminated for cause The
filing of a request for a permit modification, revocation and reissuance or
termination does not stay any permit condition
7 Permittee grants permission to staff of the DWQ to access the property for the
purposes of inspecting the stormwater facilities during normal business hours
8 The permittee shall notify the Division of any name, ownership or mailing address
changes within 30 days
9 A copy of the approved plans and specifications shall be maintained on file by
the Permittee for a minimum of ten years from the date of the completion of
construction
Permit issued thi the 19th day of October 2006
NO:-
O CAROLINA-�NVIRONMENTAL MANAGEMENT COMMISSION
for Alan W Klimek, P E , Director
Division of Water Quality
By Authority of the Environmental Management Commission
Page 6 of 8

State Stormwater Management Systems
Permit No SW8 060843
Osprey Landing Subdivision
Stormwater Permit No SW8 060843
Brunswick County
Designer's Certification
Page 1 of 2
!, , as a duly registered in
the State of North Carolina, having been authorized to observe (period icallylweeklylfull
time) the construction of the project,
(Project)
for (Project Owner) hereby state that, to the
best of my abilities, due care and diligence was used in the observation of the project
construction such that the construction was observed to be built within substantial
compliance and intent of the approved plans and specifications
The checklist of items on page 2 of this form are a part of this Certification
Noted deviations from approved plans and specifications
Signature
Registration Number
Date
SEAL
Page 7 of 8

State Stormwater Management Systems
Permit No SW8 060843
Certification Requirements Page 2 of 2
1 The drainage area to the system contains approximately the permitted
acreage
2 The drainage area to the system contains no more than the permitted
amount of built -upon area
3 All the built -upon area associated with the project is graded such that the
runoff drains to the system
4 All roof drains are located such that the runoff is directed into the system
5 The outlet/bypass structure elevations are per the approved plan
6 The outlet structure is located per the approved plans
7 Trash rack is provided on the outlet/bypass structure
8 All slopes are grassed with permanent vegetation
9 Vegetated slopes are no steeper than 3 1
10 The inlets are located per the approved plans and do not cause short-
circuiting of the system
11 The permitted amounts of surface area and/or volume have been
provided
12 Required drawdown devices are correctly sized per the approved plans
13 All required design depths are provided
14 All required parts of the system are provided, such as a vegetated shelf, a
forebay, and the vegetated filter
15 The required dimensions of the system are provided, per the approved
plan
cc NCDENR-DWQ Regional Office
Delaney Aycock, Brunswick County Building Inspections
Jeff Phillips, Brunswick County Engineering
Page 8 of 8

M
A k
E N G I N E E R I N 0, I N C
September 19, 2006
Paul Bartlett, PE
NCDENR Division of Water Quality
127 Cardinal Drive Extension
Wilmington, NC 28405-3845
RE Stormwater Project No SW8 060843
Osprey Landing R
Brunswick County
Dear Mr Bartlett,
Thank you for your comment letter dated September 5, 2006 regarding the above -
mentioned project Your comments (in bold) are provided below followed by our
responses (in italic)
1 1`ease correct (a) latitude/longitude entries in Section 1.7 of the application, and
(b) river basin entry in Section 111.2 to the Cape Fear
• These have been updated on SWU-101
2 ease use the attached deed restrictions shell for a High Density Residential
Subdivision to replace the submitted Article XII of the proposed covenants and
deed restrictions.
• The updated deed restrictions have been added to resubmittal set
3 lease clarify the bypass for Basin #1 by providing. (a) a legible plan view with
piping layout, (b) spot blow-up on Sheet# C-4.3 giving details of structures 1A,
1B, 2, bypass piping and vegetated filter, (c) clanfy/label the unmarked CBs and
piping in DA-1 at the southern end of Road B
• Sheet C-7 4 has been added to the set to address all of these comments
4 Please clarify the braltom area for Basin #1. The suPPICIM,ent lists 33,800 sq ft,
and the calcuull °ns list 10,231 sq ft. Per the plans, ft appears correct
• F�Ihfs has been updated on SWU-103 for basin #1
5 Please clarify Section 11.4 of the application concerning a 404/401 permit An
application will have to be made to the Corps of Engineers and the State because
of the wetlands crossing caused by Road B at the southern end of DA-1
• The wetlands crossing will be built in Phase VI of the project Even when
developed, the impact will be less than the 0 ie threshold
6 Please clarify Infiltration Basin #2 a f ows appears that the Basin label
on Drawing #C-4 5 should be Basi Uld and (b) a drainage area map with CBs is
needed similar to Drawing #C-4 5
591 1 OLEANDER DRIVE SUITE 201 W I L M I N 13 T❑ N N C 2 5 40 3
F'� M (9 1 0) 7 9 1 6 7 0 7 r A H ( 9 1 13 1 7 91 6760

rA
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O�
t
NT
E I N [aI N E E 11 I N G, 1 N C �-
• The basin number has been updated to the correct numbering and the
catch basin system has been added to the set The drainage areas have
been delineated and the storm table has been updated and added to sheet
C-7 3
7 Please clarify the Narrative for Basin 43 and a 3" design storm A bypass is
required, but a vegetative filter is not required.
• This has been updated in the narrative for basin #3
8 Please clarify the drainage to and bypass for Basin #3 by providing (a) a legible
plan view with piping layout, (b) details on Sheet# C-4 2, and others as
necessary, for CBs and interconnecting piping and bypass piping, (c) clarify the
bypass structure with a detail including the weir elevation, and (d) clanfyllabel
the unmarked CBs and piping in DA-3 on Road B
Sheet C-7 5 has been added to the set to address all of these comments
;;'on
lease clarify the drainage to Basin #4 by providing- (a) an expanded plan view
Drawing #C-4 2 with piping layout, and (b) details on Sheet# C-4 2, and
others as necessary, for CBs and interconnecting piping.
• Sheet C-7 6 has been added to the set to address all of these comments
I trust that our responses have satisfactorily addressed your comments Please feel free
to contact me should you have further questions after reviewing our responses and the
enclosed materials Thank you for your assistance with this project
Tim Clinkscales,PE
5911 ❑LEANDER DRIVE SUITE 207 W t L M I N G T O N N C 2 IS 4 a 3
P M ( 9 1 13 1 7 9 1 6 7❑ 7 F A X ( 9 1 Q 1 7 91 6760

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9/21/06
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Osprey Landing
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Revised design and Stormwater Narrative
2
9/21/06 —
Page 1 SWU-101
2
9/21/06
Page 1 SWU-103
1
Deed Restrictions
ssue°Statu`s ® For Approval ❑ As Requested ❑ Construction ❑ Bid
❑ For Your Use ❑ For Review and Comment ❑ Approved as Noted ❑ See Remarks
c` i"'Takein ❑ No Exceptions Taken ❑ Make Corrections Noted ❑ Amend & Resubmit
❑ Rejected - See Remarks ❑ Approved as Submitted ❑ Other
emarks-
§igned Ei �jr'►.n
Tim Clmkscales,PE

P 1
1
COMMUNICATION RESULT REPORT ( SEP 5 2006 11 23AM ) * * *
TTI NCDENR WIRO
FILE MODE OPTION ADDRESS (GROUP) RESULT PAGE
---_------------------------------------------------ -----------------
903 MEMORY TX 9-7916760 OK P 414
REASON FOR ERROR
E-1) HANG UP OR LINE FAIL
E-3) NO ANSWER
E-2) BUSY
E-4) NO FACSIMILE CONNECTION
State of North Carolina
Department of Environment and Natural Resources
Wilmington Regional Office
Michael F. Easley, Governor
FAX COVER SHEET
William G. Ross, Jr, Secretary
Date:
9/5/06
No. of Pages: 4 (Incl. Cover)
To:
Tim Clinkscales
From: Paul Bartlett
Company:
Paramounte Eng
Water Quality Section -
Stormwater
FAX #:
[phone]
FAX #: [phone]
Phone #: [phone]
DWQ Stormwater Project: Number: SW8 060643
Project Name: Osprey Landing Subdivision
MESSAGE:
Tim,
A Request for Additional Information is attached for the subject project The original will
be mailed to Ms. Culler, and a copy will be mailed to you.

1
State of North Carolina
Department of Environment and Natural Resources
Wilmington Regional Office
Michael F Easley, Governor
FAX COVER SHEET
William G Ross, Jr, Secretary
Date:
915106
No. of Pages: 4 (Incl Cover)
To.
Tim Clinkscales
From: Paul Bartlett
Company:
Paramounte Eng
Water Quality Section -
Stormwater
FAX #:
(910) 791-67t0
FAX #: [phone]
Phone #: [phone]
DWQ Stormwater Project Number: SW8 060843
Project Name Osprey Landing Subdivision
MESSAGE
Tim,
A Request for Additional Information is attached for the subject protect The original will
be mailed to Ms Culler, and a copy will be mailed to you
ENBlptb SIWQSISTORMWATERIADDINF0120061060843FAX sept06
127 Cardinal Drive Extension Wilmington, NC 28405-3845 Telephone [phone] FAX [phone]
An Equal Opportunity Affirmative Action Employer

o�oF W A rE9QG
September 5, 2006
Ms Sonya Culler, Manager
Bill Clark Homes of Wilmington, LLC
430 Eastwood Road
Wilmington, NC 28403
Subject. Request for Additional Information
Stormwater Project No SW8 060843
Osprey Landing Subdivision
Brunswick County
Dear Ms Culler
Michael I- Easley, Governor
William G Ross Jr, Secretary
North Carolina Department of Environment and Natural Resources
Alan W Klimek, P E Director
Division of Water Quality
The Wilmington Regional Office received a Stormwater Management Permit Application for
Osprey Landing Subdivision on August 23, 2006 A preliminary review of that information has
determined te application is not complete The following information is needed to
continue t stormwater review
1 Please correct (a) latitude/longitude entries in Section 17 of the application, and
(b) river basin entry in Section 1112 to the Cape Fear
2 Please use the attached deed restrictions shell for a High Density Residential
Subdivision to replace the submitted Article XII of the proposed covenants and
deed restrictions
3 Please clarify the bypass for Basin #1 by providing (a) egible plan view with
LZpiping layout, (pot blow-up on Sheet# C-4 3 giving details of structures 1A,
1 B, 2, bypass piping and vegetated filter, (g)-clarify the bypass structure with a
detail including the weir elevation, and (d) clarify/label the unmarked CBs and
c.0iping in DA-1 at the southern end of Road B
4 ease clarify the bottom area for Basin #1 The supplement lists 33,800 sq ft,
and the calculations list 10,231 sq ft Per the plans, 10,231 sq ft appears correct
5 Ple clarify Section II 4 of the application concerning a 404/401 permit An
plication will have to be made to the Corps of Engineers and the State
because of the wetlands crossing caused by Road B at the southern end of DA-
1
6 Please clarify Infiltration Basin #P
ows (a) it appears that the Basin label
on Drawing #C-4 5 should be Band(b) a drainage area map with CBs is
ne ded similar to Drawing #C-4 5
7 Please clarify the Narrative for Basin #3 and a 3" design storm A bypass is
required, but a vegetative filter is not required
r hCaroltna
NNatura1111
North Carolina Doosion Of WaILu Qudlrly 127 Cardinal Drive Extension Wilmington NC 28405 Phone [phone] Customer Ser%ice
Wilmington Rcgional Oflice Internet www ncuaterrtuality org Fax [phone] 623-6748
An Equal Opportunity/Affirmative Action Employer — 50% Recycledl110% Post Consumer Paper

Ms Sonya Culler, Manager
September 5, 2006
Stormwater Application No SW8.060843
Ze clarify the drainage to and bypass for Basin #3 by providing �ae plan view with piping layout,5tails on Sheet# C-4 2, and
s as ne essary, for CBs and interconnecting piping and bypass
piping, arify the bypass structure with a detail including the weir
elevate , an t
arify/label the unmarked CBs and piping in DA-3 on
Road B /
9 XPlease clarify the drainage to Basin #4 by providing (a) an expanded plan
view on Drawing #C-4 2 with piping layout, and (b) details on Sheet# C-
4 2, and others as necessary, for CBs. and interconnecting piping
Please note that this request for additional information is in response to a preliminary
review The requested information should be received by this Office prior to September
13, 2006, or the application will be returned as incomplete The return of a project will
necessitate resubmittal of all required items, including the application fee
If you need additional time to submit the information, please mail or fax your request for
a time extension to the Division at the address and fax number at the bottom of this
letter The request must indicate the date by which you expect to submit the required
information
The construction of any impervious surfaces, other than a construction entrance under
an approved Sedimentation Erosion Control Plan, is a violation of NCGS 143-215 1 and
is subject to enforcement action pursuant to NCGS 143-215 6A
Please reference the State assigned project number on all correspondence Any
original documents that need to be revised have been sent to the engineer or agent All
original documents must be returned or new originals must be provided Copies are not
acceptable If you have any questions concerning this matter please feel free to call me
at [phone]
Sincer ly,
Paul T Bartlett, P E
Environmental Engineer
ENBlptb S1WQSISTORMWATERIADDINFO120061060843 sep06
cc Tim Clinkscales, P E , Paramounte Engineering
Paul Bartlett

•ccA�� INFORMATION PERTAINING TO DEED RESTRICTIONS
AND PROTECTIVE COVENANTS
In accordance with Title 15 NCAC 2H 1000, the Coastal Stormwater Management
Regulations, deed restrictions and protective covenants are required for High Density
Residential Subdivisions where lots will be subdivided and sold Deed restrictions and
protective covenants are necessary to ensure that the development maintains a "built -upon"
area consistent with the design criteria used to size the stormwater control facility The
following deed restrictions and covenants must be recorded prior to the sale of any lot
1 The following covenants are Intended to ensure ongoing compliance with State
Stormwater Management Permit Number , as issued by the Division
of Water Quality under NCAC 2H 1000
2 The State of North Carolina is made a beneficiary of these covenants to the extent
necessary to maintain compliance with the stormwater management permit
3 These covenants are to run with the land and be binding on all persons and parties
claiming under them
4 The covenants pertaining to stormwater may not be altered or rescinded without the
express written consent of the State of North Carolina, Division of Water Quality
5 Alteration of the drainage as shown on the approved plan may not take place without
the concurrence of the Division of Water Quality
6 The maximum allowable built -upon area per lot is square feet This
allotted amount includes any built -upon area constructed within the lot property
boundaries, and that portion of the right-of-way between the front lot line and the edge
of the pavement Built upon area includes, but is not limited to, structures, asphalt,
concrete, gravel, back, stone, slate, coquina and parking areas, but does not include
raised, open wood decking, or the water surface of swimming pools
Note If the BUA per lot varies, please substitute the following paragraph for the
one above and provide a complete listing of the proposed BUA for each lot.
The maximum allowable built -upon area per lot is as follows
Lot # BUA Lot # BUA Lot # BUA
These allotted amounts include any built -upon area constructed within the lot property
boundaries, and that portion of the right-of-way between the front lot line and the edge
of the pavement Built upon area includes, but is not limited to, structures, asphalt,
concrete, gravel, back, stone, slate, coquina and parking areas, but does not include
raised, open wood decking, or the water surface of swimming pools
7 All runoff from the built -upon areas on the lot must drain into the permitted system This
may be accomplished through a variety of means including roof drain gutters which
drain to the street, grading the lot to drain toward the street, or grading perimeter swales
to collect the lot runoff and directing them into a component of the stormwater system
Lots that will naturally drain into the system are not required to provide these additional
measures

10/04/2005 Of
0,200 00 62
;i29400 �,` 225U3age 687
r., aaniEsuse 10/03/2005 06:07:44 Rea,24q�gY
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CASH - REF �DLINA GENEPAL WARRANTY DEED
STATE OF NORTH CAROLINA
COUNTY OF BRUNSWICK 2
THIS DEED, made this the 3 day of October, 2005, by and
between ROY C DANIEL, JR and vife, CHERYL R. DANIEL, parties of
the first part, hereinafter referred to as Grantors, and BILL
CLARK HObMS 08 WILKINGTON, LLC, a North Carolina limited
liability company, of 430 Eastwood Road, Suite 100, Wilmington,
NC 28403, party of the second part, hereinafter referred to as
Grantee,
W I T N E S S E T H
`THAT the Grantors, for a valuable consideration paid by the
Grantee, the receipt of which is hereby acknowledged, have and by
these presents do grant, bargain, sell and convey unto the
Grantee, its successors and assigns, in fee simple, all that
certain tract or pa of larj�i as in Smithville Township,
Brunswick County, �1�� and being more particularly
twh
described as folio Qft�
FIRST TRACT A certain tractor parcel of land in Smithville Township, Brunswick County,
North Carolina, lying westerly from NC Highway No 211 and northerly from Robert Ruak
Dnve (S R No 1852) about IS miles northerly from the Town of Southport, adjoining the
lands of The Ridge at Forest Oaks as shown on a plat recorded in Map Cabinet 29 at page
254, Forest Oaks Subdivision as shown on a plat recorded in Map Cabinet T at page 25,
Bonnet Way Townhomes as shown on plats recorded in Map Cabinet 19 at page 539 and
Map Cabinet 20 at page 165, Smithville Woods as shown on plats recorded in Map Cabinet
P at page 242 and Map Cabinet 18 at page 8, Marsh Creek Subdivision as shown on a plat
recorded in Map Cabinet U at page 326, Progress Energy Carolinas recorded in Deed Book
515 at page 185, and Wal-Mart Real Estate recorded in Deed Book 1361 at page 614, being
described as follows 3 c^da10 6 opC---
.1Oq.1-11 ao - 5W4
Beginning at an iron rod located the following two (2) calls from NC Grid Monument `K-
216' having NC Grid Coordinates N . 21383 059 meters and E - 699625 625 meters
(NAD 83 coordinates),
thence N 28' 53' 11' W 858 60 feet to a concrete monument located at the
western boundary of NC 211 Highway,
thence N 74' 50' 18' W 1799 95 feet to the point of beginning,
Thence from the point of beginning with a line of The Ridge at Forest Oaks S 03" 12' 04' E
1044 48 feet to an iron pipe, thence with a line of Forest Oaks Subdivision S 03' 09' 18' E
330 00 feet to an iron pipe, thence with lines of Bonnet Way Townhomes 5 03° 12' 44' E
295 11 feet to an iron pipe, thence S 03' 09' 34' E 102 44 feet to an iron pipe, thence S
Prepared by Douglas W Baxley
WITHOUT OPINION ON TITLE
BUG 2 3 ZN5
_►� 0�0��3

}�$lpage: 688
�j� 0
42° 52' 49' W 374 78 feet to an iron pipe, theJ:Wines lW s S 88' 56'
20' W 763 92 feet to an iron pipe, thence N 01' 07' 18' W 799 96 ee iron pipe,
thence N 47' 15' 48' W 375 97 feet to an iron pipe, thence 5 81' 33' 57' W 468 65 feet
to an iron pipe, thence with a line of marsh Oak Subdivision N 00' 33' 52' W 637 25 feet
to an iron pipe, thence with lines of Progress Energy Carolinas N 30' 05' 39' E 901 41 feet
to an iron pipe, thence N 55' 13' 20' E 662 77 feet to an iron pipe, thence N 55' 14' 40' E
74 87 feet to an iron pipe, thence with a line of Wal-Mart Real Estate S 74' 49' 11' E
634 32 feet to the point of beginning, containing 67 75 acres, more or less, and being a
portion of the tract of Roy C Daniels, Jr recorded in Deed Book 240 at page 533 in the
Brunswick County Registry
SECOND TRACT BEING all of Lot 8 of Section 1 of Smithville Woods according to a map
recorded in Map Cabinet P at Page 242 of the Brunswick County Registry, said lot having
the metes, bounds and locations as shown on said map SUBJECT, HOWEVER, to that
certain 60-foot road dedicated by the recordation of that map in Map Cabinet 17 at Page
432 of the Brunswick County Registry 159,1t N JA ILA I,
THIRD TRACT Non-exclusive rights -of -way and easement for purposes of ingress, egress
and regress and the installation, operation, maintenance, replacement and repair of utilities
over, within, along and upon that certain tract or parcel of 60' in width by approximately
1800 feet in length acquired by Grantor from Anna T Brown et vir by instrument recorded
in Book 745 at Page 30, Brunswick County Registry, and being more fully described as
follows
BEGINNING at the northeast comer of that tract or parcel owned by Roy C
Daniel, Jr as more particularly described in a deed from Eunice F Huntley
et vir to Roy C Daniel, Jr et ux recorded in Book 240 at Page 533,
Brunswick County Registry Said point being in the northern line of Tract 7
of the Taylor Woodside Division as surveyed by Percy Canady on October
10, 1947, a map of which is recorded in Map Book 2 112 at Page 192,
Brunswick County Registry From said place and point of BEGINNING thus
located, runs thence with the northern line of Tract 7 of the Taylor
Woodside Division South 74' 50' 34' East 1700 20 feet to N C State
Highway #211, runs thence with the right-of-way line of N C State Highway
#211 a southerly course 60 feet to point, runs thence leaving the nght-of-
way line of said N C State Highwal North 74' So' parallel
to the first call to the eastern Iine of that So'
in
the said Book 240 at Page 533, B R fence with
the eastern line of said tract descn a runswick
County Registry, a northerly direction to the place an
BEGINNING
These rights -of -way and easement are conveyed subject to an existing
easement in favor of City of Southport recorded in Book 1927 at Page 410,
Brunswick County Registry faw
TO HAVE AND TO HOLD the aforesaid lot or parcel of land and all
privileges and appurtenances thereunto belonging to the Grantee in fee
simple
AND the Grantors do hereby covenant with Grantee that Grantors
are seized of the premises in fee simple, that they have the right to
convey the same in fee simple, that title is marketable and free and
clear of all encumbrances, and that Grantors will warrant and defend
the title against the lawful claims of all persons whomsoever, sub3ect
to the following exceptions utility easements of record, restrictive
covenants of record, street rights -of -way, and 2005 ad valorem
property taxes

T
g*'� 4008 Hook 2251Page: 689
jj � M 0 t ��
IN WITNESS WHEREOF, �t71d Gra ve ereunto set their hands
and seals, the day and year first above wr tten
Aw z. 0 e
(SEAL)
ROOYY% C DANIEL, JR
C Ael (SEAL)
CHERYL X DANIEL
STATE OF NORTH CAROLINA
COUNTY OF BRUNSWICK
I, a Notary Public of the County and State aforesaid, certify
that ROY C DANIEL, JR and wife, CMMYL R DANIEL, personally
appeared before me this day and acknowledged the execution of the
foregoing instrument
WITNESS my hand and official stamp or seal, this 3rd day of
4Ftober, 2005 ,l
�I11 S
a" % U NOTARY HLIC
%�i
w a
My Commiss b r� p9 efuly 11, 2008
a a

It
9
(Top portion for recording purposes)
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL
SIGNS
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF
THE UNITED SATES OF AMERICA OR STATE FLAG OF NORTH CAROLINA.
DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS
FOR THE % (gyp
OSPREY LANDING COMMUNITY
THIS DECLARATION is made on the date hereinafter set forth by Bill Clark Homes of
Wilmington, LLC, a North Carolina limited liability company (hereinafter referred to as
"Declarant")
WITNESS TO:
WHEREAS, Declarant is the owner of certain real property located in Brunswick
County, North Carolina, which is more particularly described on Exhibit "A" attached hereto and
made a part hereof by reference (hereinafter sometimes referred to as the "Property")
WHEREAS, Declarant desires to create on such property an exclusive residential
community of single-family homes and condominium homes to be known as Osprey Landing
(hereinafter sometimes referred to as "Subdivision"),
WHEREAS, Declarant desires to provide for the maintenance and upkeep of the common
area within the Subdivision and to provide for enforcement of covenants and restrictions
applicable to the Subdivision, and, to that end, desires to subject all of the property within the
Subdivision to the covenants, conditions, restrictions, easements, charges and liens hereinafter
set forth, each and all of which is and are for the benefit of said property and each owner thereof,
WHEREAS, Declarant has deemed it advisable to create an organization to own,
maintain and administer the Common Area (as hereinafter defined), to administer and enforce
covenants and restrictions applicable to the Subdivision, and to collect and disburse the
assessments and charges hereinafter created, and Declarant has therefore incorporated under

North Carolina law as a non-profit corporation, the OSPREY LANDING COMMUNITY
ASSOCIATION, INC , for the purpose of exercising the aforesaid functions,
NOW, THEREFORE, Declarant declares that the Properties and such additions thereto as
may hereafter be made pursuant to Article II hereof, is and shall be owned, held, transferred,
sold, conveyed, used and occupied subject to the covenants, conditions, restrictions, easements,
charges and liens set forth in this Declaration, all of which shall run with the real property and be
binding on all parties owning any right, title or interest in said real property or any part thereof,
their heirs, personal representatives, successors and assigns, and shall inure to the benefit of each
owner thereof
ARTICLE I
DEFINITIONS
Section 1 "Association" shall mean and refer to the OSPREY LANDING
COMMUNITY ASSOCIATION, INC, a North Carolina non-profit corporation, its successors
and assigns
Section 2 "Builder" shall mean and refer to any persons, firms or entities to whom or
which Declarant conveys one or more Lots within the Properties for the purpose of constructing
a Dwelling thereon
Section 3 "Common Area" shall mean and refer to any and all real property, together
with any improvements thereon, shown on any recorded subdivision plat of the Properties, with
the exception of any Lots, as said term is defined in this Declaration, and any public street rights -
of way as same are shown on any recorded subdivision plat of the Properties Except as
otherwise provided in this Declaration, the Common Area shall be maintained by the Association
or its successors in interest unless dedicated to public use as set forth herein
Section 4 "Declarant" shall mean and refer to Bill Clark Homes of Wilmington, L L C
It shall also mean and refer to any person, company or entity to whom or which Declarant shall
assign or delegate the rights and obligations of Declarant by an assignment of Declarant's rights
recorded in the applicable public registry for Brunswick County, North Carolina
Section 5 "Lot" shall mean and refer to any plot of land, with delineated boundary lines,
shown on any recorded subdivision plat of the Properties, with the exception of any Common
Area owned in fee by the Association and any public street rights -of -way shown on such
recorded plat In the event that any Lot is increased or decreased in size by recombination or
-2-

resubdivzsion through recordation of new subdivision plats, any newly -platted Lot shall
thereafter constitute a Lot
Section 6 "Member" shall mean and refer to every person or entity who or which holds
membership in the Association
Section 7 "Owner" shall mean and refer to the record owner, whether one or more
persons or entities, of fee simple title to any Lot which is a part of the Properties, including
contract sellers, but excluding those having an interest in a Lot solely as security for the
performance of an obligation
Section 8 "Properties" shall mean and refer to the property described in Exhibit A to this
Declaration and any additional property annexed pursuant to Article II of this Declaration
Section 9 "Subassociation" shall mean and refer to any homeowners association formed
for the purpose of owning and maintaining real property and improvements thereon reserved for
the exclusive use and benefit of Owners of Lots or Units within a specific phase or section of the
Properties
Section 10 "Unit" or "Dwelling" shall mean and refer to any building or portion thereof
within the Properties which is designated and intended for use an occupancy as a residence by a
single family, whether by the Owner of such Unit or by tenants or lessees of such Owner
ARTICLE II
PROPERTY SUBJECT TO THIS DECLARATION
AND WITHIN THE JURISDICTION OF THE
OSPREY LANDING COMMUNITY
Section 1 This section has been intentionally omitted
Section 2 Existing Property The real property which is and shall be held, transferred,
sold, conveyed, used and occupied subject to this Declaration as of the date of recording hereof,
which is within the jurisdiction of the Association, and which is described on Exhibit A attached
hereto
Section 3 Annexation of Additional Property At any time prior to December 31, 2026
additional land within the property described in Exhibit B attached hereto and made a part hereof
(the "Exhibit B Property") may be annexed by the Declarant without the consent of the Members
and therefore become subject to this Declaration by the recording by Declarant of a plat showing
such property to be annexed and of a supplementary declaration extending the operation and
effect of this Declaration to the property to be annexed Furthermore, at any time Declarant owns
any Lot within the Properties, additional land not within the Exhibit B Property may be annexed
by the Declarant without the consent of the Members and therefore become subject to this
Declaration by the recording by Declarant of a plat showing such property to be annexed and of
a supplementary declaration extending the operation and effect of this Declaration to the
property to be annexed Any property annexed must be contiguous to property already subject to
this Declaration Any property annexed pursuant to this subsection may be annexed and
subjected to this Declaration as one parcel or as several parcels at different times The addition of
such property pursuant to this Section may increase the cumulative number of Lots within the
-3-

` Properties and, therefore, may alter the relative maximum voting strength of the vanous types of
Members
A supplementary declaration may contain such complementary additions to and
modifications of the covenants and restrictions contained in this Declaration, including, without
limitation, different voting rights and different annual and special assessments for the Lots or
Units so annexed, as Declarant, in its sole discretion, may deem necessary or appropriate to
reflect the different character or use of the property added In no event, however, shall any
supplementary declaration revoke, modify or add to the covenants and restrictions established by
this Declaration so as to materially and adversely affect any portion of the Properties already
subject to this Declaration A supplementary declaration annexing additional property need only
be executed by the Declarant and, if applicable, by the owner of the property being annexed, and
shall not require the joinder or consent of the Association or any of its Members
Nothing contained in this Article shall be construed to obligate or require Declarant to
make any additions to the Properties
Section 4 Conveyance of Common Area in Annexed Property Promptly upon request of
Declarant, the owner of the annexed property shall convey any or all Common Area located
within the newly annexed property to the Association or, if requested by the Declarant, to the
Declarant Title to such Common Area shall be conveyed in the same manner as set forth in
Section 3 of Article IV of this Declaration
Section 5 Merger Additional property may also be made subject to this Declaration by
merger or consolidation of the Association with another non-profit corporation formed for the
same or similar purposes The surviving or consolidated association shall administer the
covenants and restrictions established by this Declaration within the Properties and the covenants
and restrictions established upon property owned by the other association as one scheme No
such merger or consolidation shall cause any revocation, change or addition to this Declaration
Section 6 Effect of Addition of Property Except by amendment of this Declaration as
provided in Section 3 of Article XII hereof, no addition of property, whether by annexation,
merger or consolidation, shall revoke or modify any provision of this Declaration as to the
Properties already subject hereto or diminish the rights of the Owners of Lots and Units within
the Properties, except for the dilution of voting strength that occurs as a result of inclusion of
additional Members of the Association
Section 7 Withdrawal of Property Declarant reserves the right to amend this
Declaration so long as it has a right to annex Additional Property pursuant to this Article for the
purpose of removing any portion of the Properties then owned by Declarant or the Association
from the coverage of this Declaration, to the extent originally included in error or as a result of
any changes whatsoever in the plans for the Subdivision, provided such withdrawal is not
unequivocally contrary to the overall, uniform scheme of development for the Subdivision
Section 8 Good Faith Lender's Clause Any violation of these covenants, conditions or
restrictions shall not affect any hen or deed of trust of record held in good faith, upon any Lot or
commercial Unit, which liens may be enforced in due course, subject to the terms of this
Declaration
-4-

ARTICLE III
MEMBERSHIP AND VOTING RIGHTS
Section 1 Membership Every Owner of a Lot which is subject to assessment by the
Association shall be a Member of the Association Membership shall be appurtenant to and may
not be separated from ownership of any Lot which is subject to assessment
Section 2 Voting_R_ights The voting rights of the membership shall be appurtenant to the
ownership of the Lots and may not be separated from ownership of any Lot
There shall be two classes of Lots with respect to voting rights
(a) Class A Lots Class A Lots shall be all Lots except Class B Lots as the same are
hereinafter defined Ownership of a Class A Lot shall entitle the Owner of such Lot to one (1)
vote When more than one person owns an interest (other than a leasehold or security interest) in
any Lot, all such persons shall be Members and the voting rights appurtenant to their Lot shall be
exercised as they, among themselves, determine, but fractional voting shall not be allowed, and
in no event shall more than one vote be cast with respect to any Class A Lot
(b) Class B Lots Class B Lots shall be all Lots owned by Declarant and which have not
been converted to Class A Lots as set forth below Declarant shall each be entitled to nine (9)
votes for each Class B Lot it owns The Class B Lots shall cease to exist and shall be converted
to Class A Lots upon the earlier of the following to occur (i) when Declarant no longer owns
any Lots or Units within the Properties, (n) upon written waiver of Class B membership by the
Declarant and/or, or (su) December 31, 2026 When the Class B Lots cease to exist and are
converted to Class A Lots, Declarant and Builder shall have the same voting rights as other
Owners of Class A Lots
(c) Declarant's Voting Rights Until the Class B Lots cease to exist, as provided above,
Declarant shall be vested with the sole voting rights of the Association on all matters (including
election and removal of directors and officers of the Association), except such matters as to
which the Declaration, the Articles of Incorporation, or the Bylaws of the Association
specifically require a vote of the Class A Members
Section 3 Leased Units Notwithstanding any other provision of this Declaration or the
Bylaws of the Association, the vote as expressed by the Owners of Lots or Units which are
leased (or rented to or otherwise occupied by persons) other than the Owner shall not be entitled
to any weight greater than forty-nine (49) percent on any matter pending before the Association
ARTICLE IV
PROPERTY RIGHTS
Section 1 Owners' Easements of Enjoyment and Access Except as limited by the
provisions of this Section 1 and by the rules and regulations adopted by the Board of Directors of
the Association, every Owner shall have a right and easement of enjoyment in, use of and access
to, from, and over the Common Area, which right and easement shall be appurtenant to and shall
pass with title to every Lot, subject to
(a) the right of the Association to charge reasonable admission and other fees for the use
of any recreational facilities situated or constructed on the Common Area and to limit the use of
-5-

such facilities to Owners who occupy a residence on the Properties and to their families, tenants
and guests, as provided in Section 2 of this Article IV
(b) the right of the Association to suspend the voting rights of an Owner for any period
during which any assessment against his Lot remains unpaid, or for a period not to exceed sixty
(60) days for any infraction of the published rules and regulations of the Association
(c) the right of the Association to dedicate, sell or transfer all or any part of the Common
Area to any public or quasi -public agency, authority or utility for such purposes and subject to
such conditions as may be agreed upon by the Members After Class B Lots cease to exist, no
such dedication or transfer shall be effective unless the Members entitled to at least 80% of the
votes of the entire membership of the Association and at least three -fourths (3/4) of the votes
appurtenant to each Class of Lots agree to such dedication, sale or transfer and signify their
agreement by a signed document recorded in the applicable public registry for Brunswick
County, North Carolina Nothing herein shall be deemed to prohibit the Board of Directors of the
Association, without consent of the Members, from granting easements over and across the
Common Area to any public agency, authority or utility for the installation and maintenance of
sewerage, utility (including cable television) or drainage facilities when, in the opinion of the
Board, such easements are necessary for the convenient use and enjoyment of properties within
the Subdivision Notwithstanding anything herein to the contrary, the Common Area shall be
preserved for the perpetual benefit of the owners of Lots within the Subdivision and shall not be
conveyed except to a governmental entity or another non-profit corporation organized for similar
purposes
(d) the right of the Association, to borrow money and, after Class B Lots cease to exist,
with the assent of Members' entitled to at least 80% of the votes of the entire membership of the
Association and at least two-thirds (2/3) of the votes appurtenant to each Class of Lots,
mortgage, pledge, deed in trust, or hypothecate any or all of its real or personal property as
security for money borrowed or debts incurred, provided that the rights of any such lender or
mortgagee shall be subordinate to the property rights of the Members and the Association as set
forth herein
(e) the right of the Association to exchange all or part of the Common Area for other
property and consideration of like value and utility, provided, however, that, after Class B Lots
cease to exist, any such dedication shall require the assent of the Members as set forth in
subparagraph (c) above, and further provided that, if the Board of Directors of the Association
determines, in its sole discretion, that such exchange is necessary to cure an encroachment or
setback violation on any Lot, the Board may effect such exchange without the consent of or
approval by the Members
(f) the right of the Association to open the Common Area and, in particular, the
recreational facilities constructed thereon, for use by non-members of the Association
(g) the right of the Association to expand or add to the Common Area and to improve,
maintain and operate the Common Area
(h) the right of the Association to adopt, promulgate and enforce rules and regulations
concerning the use of the Common Area
0

(i) the right of the Association to otherwise deal with the Common Area as provided in
the Articles of Incorporation and Bylaws of the Association
Section 2 Delegation of Use
(a) Family The right and easement of enjoyment and access granted to every Owner by
Section 1 of this Article may be exercised by members of the Owner's family who occupy the
residence of the Owner within the Properties as their principal residence in Brunswick County,
North Carolina
(b) Tenants Contract Purchasers The right and easement of enjoyment and access
granted to every Owner by Section 1 of this Article may be delegated by such Owner to his
tenants or contract purchasers who occupy a residence within the Properties, or a portion of said
residence, as their principal residence in Brunswick County, North Carolina
(c) Guests The right and easement of enjoyment and access granted to every Owner
by Section 1 of this Article may be delegated to guests of such Owners, tenants or contract
purchasers, subject to such rules and regulations as may be established by the Board of Directors
(d) Suspension of Rights The rights of any delegate of an Owner shall be suspended by,
upon and during suspension of such Owner's rights as provided in Section 7 of Article XII of this
Declaration
Section 3 Conveyance of Common Area To The Association No later than the time
Declarant no longer exercises voting control over the Association as provided in Article III
hereof, Declarant shall convey, and the Association shall accept, fee simple title to all Common
Area (except Common Area easements) within the Properties, and shall reserve for or grant to
the Association all Common Area easements, all subject to such easements, reservations,
conditions and restrictions as then may be of record, and the Association shall accept all such
conveyances, grants and reservations, provided, however, that so long as Declarant owns any
Lots within the Properties, Declarant reserves an easement over and across any Common Area
deeded to the Association for the purpose of constructing and maintaining any improvements on
the Common Area as it deems necessary or advisable, provided that any such improvements
must comply with the requirements of the appropriate governmental authority Any
improvements placed on the Common Area by Declarant shall become the property of the
Association upon completion of such improvements
Section 4 Regulation and Maintenance of Common Area and Common Area Easements
It is the intent of the Declarant that the Common Area be preserved for the perpetual benefit of
the Owners
(a) Regulationof Common Area The Association may adopt and promulgate rules and
regulations governing the use of the Common Area by Owners and their family, guests and
invitees No Owner or other permitted user shall use the Common Area or any portion thereof in
violation of the rules and regulations contained in this Declaration or subsequently adopted by
the Association
Without limiting the generality of the foregoing, no Owner or tenant, guest or invitee of
an Owner shall, without the specific prior written consent of the Association (1) damage or waste
the Common Area or improvements thereon or remove any trees or vegetation therefrom (u)
-7-

erect any gate, fence, structure or other improvement or thing on the Common Area, (iii) place
any garbage receptacle, trash or debris on Common Area, (iv) fill or excavate any part of the
Common Area, (v) landscape or plant vegetation on Common Area, or (vi) use the Common
Area or any part thereof in a manner inconsistent with or in any way interfering with the rights of
other Owners
(b) Rights and Responsibilities of the Lot Owners as to Common Area Easements Each
Owner of a Lot upon which a Common Area easement lies shall pay all property taxes and other
assessments levied against his Lot, including that portion of such tax or assessment as is
attributable to such Common Area easement
(c) Rigbts and Responsibilities of the Association as to Common Area The Association
shall have the right and obligation to ensure that the Common Area is preserved for the perpetual
benefit of the Owners, and, to that end, shall (i) maintain the Common Area in its natural or
improved state, as appropriate, and keep it free of impediments to its use by the Owners, subject
to the provisions of this Declaration, (n) procure and maintain adequate liability insurance
covering the Association and its Members, Directors and officers, against any loss or damage
suffered by any person, including the Owner of the Lot upon which Common Area lies, resulting
from use of the Common Area, and adequate hazard insurance covering the real and personal
property owned in fee by the Association, and (iv) pay all property taxes and other assessments
levied against all Common Area owned in fee by the Association
(d) Declarant's and Association's Right of Entry The Declarant and the Association and
the employees, agents, contractors and subcontractors of each, shall have a non-exclusive right
and easement at all times to enter upon any portion of a Lot reserved or designated as a Common
Area easement for the purposes of (i) installing and maintaining subdivision entrance signs,
features, fencing and landscaping, and (n) making such improvements to the Common Area, and
(iii) maintaining the Common Area easement in its natural or improved state
ARTICLE V
Section 1 Creation of the Lien and Personal Obligation of Assessments Each Owner of a
Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is
deemed to covenant and agree to pay to the Association annual assessments and special
assessments, such assessments to be established and collected as hereinafter provided All
assessments which are unpaid when due, together with interest and late charges set forth in
Section 9 of this Article V and all costs of collection, including reasonable attorney's fees, shall
be a charge against and, a continuing lien upon the Lot against which such assessment is made
Each such assessment or charge, together with interest and costs of collection, including
reasonable attorneys' fees, shall also be the personal or corporate obligation of the person(s),
firms) or corporation(s) owning such Lot at the time when the assessment fell due, but such
personal obligation shall not be imposed upon such Owner's successors in title unless expressly
assumed by them Although unpaid assessments and charges are not the personal obligation of
such Owner's successors in title unless expressly assumed by them, the unpaid assessments and
charges shall continue to be a lien upon the Lot against which the assessment or charge was
made
in

It is the intent of the Declarant that any monetary fines imposed against an Owner
pursuant to the Bylaws of the Association or Section 7 of Article XII of this Declaration shall
constitute a lien against the Lot of such Owner to the same extent as if such fine were an
assessment against such Lot
Section 2 Purposes of Assessments The assessments levied by the Association shall be
used exclusively to promote the recreation, health, safety and welfare of the residents of the
Subdivision and, in particular, for (i) acquisition, improvement and maintenance of properties,
services and facilities related to the use and enjoyment of the Common Area, (n) repair and
reconstruction of improvements on, the Common Area, including, without limitation, the cost of
repair, replacement and additions thereto and the cost of labor, equipment, materials,
management and supervision thereof, (iu) payment of taxes and public assessments levied
against the Common Area owned by the Association in fee, (iv) procurement and maintenance of
insurance in accordance with the Section 4(c) of Article IV of this Declaration, (v) employment
of attorneys, accountants and other persons or firms to represent the Association when necessary,
(vi) payment of principal and interest on funds borrowed for Association purposes, (vin) such
other needs as may arise, and (ix) payment for the maintenance and operation of street lights
Section 3 Annual Assessments
(a) Maximum Annual Assessment As provided in Section 2(a) of Article III hereof,
Declarant shall establish the Maximum Annual Assessment and initial annual assessment for
Class A Lots, thereafter, the terms "Maximum Annual Assessment", annual assessment, and
special assessment shall mean the Maximum, annual and special assessments applicable to Class
A Lots Until January 1, 2008 the Maximum Annual Assessment shall be $ for each
Class A Lot
From and after Class B Lots cease to exist the Maximum Annual Assessment may be
increased by the Board of Directors effective January 1 of each year without a vote of the
Members, Once Class B Lots cease to exist, the Maximum Annual Assessment may be increased
by the Board of Directors effective January 1 of each year without a vote of the Members, but
subject to the limitation that the percentage of any such increase shall not exceed 10% of the
Maximum Annual Assessment for the previous year unless such increase is approved as set forth
in Section 3(b), below
From and after Class B Lots cease to exist, the Maximum Annual Assessment for Class A
Lots may be increased without limitation if such increase is approved by a majority of the votes
cast, in person or by proxy, at a meeting duly called for that purpose
(b) Annual Assessments Ratification of Budgets For so long as a Class B Lot(s) exists,
the Board of Directors, in its sole discretion, shall have the authority to adopt an annual budget
After Class B Lots cease to exist, the Board of Directors shall adopt a proposed budget
(including the proposed annual assessment for each Class of Lots) at least annually Within 30
days after adoption of the proposed budget, the Board of Directors shall send a copy of the
proposed budget and shall give written notice to the Members of a meeting of the Members to
consider ratification of the budget, such meeting to be held not sooner than 10 days nor more
than 60 days after the mailing of such notice Such meeting may, but need not be, combined with
the annual meeting of the Members Except as required by Section 7 below, there shall be no
requirement that a quorum be present in order to vote on ratification of the budget (although a

quorum must be present to vote on other matters) The budget shall be deemed ratified unless at
that meeting Members having a majority of the votes of the entire membership vote to reject the
budget Notwithstanding the foregoing, if the budget provides for annual assessments not greater
than 10% larger than the assessment in effect for the immediately preceding year, such budget
shall be deemed ratified unless Members having at least 80% of the votes of the entire
membership vote to reject the budget If the proposed budget is rejected, the budget last ratified
by the Members shall be continued until such time as the Members ratify a subsequent budget
proposed by the Board
Any annual assessment ratified by the Members shall continue thereafter from year to
year as the annual assessment until changed by the Board and ratified by the Members as set
forth herein
Section 4 Special Assessments In addition to the annual assessments authorized above,
the Association may levy, in any assessment year, special assessments for the purpose of
defraying, in whole or in part, the cost of any construction, repair or replacement of a capital
improvement on the Common Area, including fixtures and personal property related thereto, for
repayment of indebtedness and interest thereon, or for any other purpose, provided that any such
assessment shall have the same assent of the Members as provided in Section 3(b) of this Article
Section 5 Assessment Rate Collection Period Except as provided in Section 6 of this
Article V, the annual and special assessments shall be fixed at a uniform rate for all Lots within
each subclass of Lots and may be collected on a yearly, semi-annually, quarterly or monthly
basis, as determined by the Board of Directors
Section 6 Declarant's Assessments - Notwithstanding any other provision of this
Declaration or the Bylaws of the Association, the Declarant shall not be obligated for, nor
subject to, any annual or special assessment for any Lot or other property that it owns within the
Properties, provided, however, that the Declarant shall be responsible for paying the difference
between (i) the operating expenses of the Association, and (n) the total operating revenues of
the Association from all sources including, without limitation, annual and special assessments,
revenues generated from fees charged by the Association for use of the Common Area, and
investment income (said difference being hereinafter referred to as the "Operating Deficit") For
purposes of this Section, the term "operating expenses" shall not include contributions to any
reserves for replacement, operating reserves, depreciation reserves, capital expenditures, or
special assessments
Declarant may, by written notice given by the Declarant to the Association on or before
November 30 of any year, to be effective as of January 1, terminate its obligation to pay the
Operating Deficit and waive its right to exclusion from assessments In such event, each Lot
owned by the Declarant which contains a Dwelling for which a certificate of occupancy has been
issued shall be assessed at the rate of twenty-five percent (25%) of the annual assessment in
effect for Class A Lots, as the same may change from time to time Upon sale of such Lot by
Declarant to any other person or entity, such Lot shall be assessed at Class A rate, commencing
on the first day of the month after title to such Lot is transferred to such third party
Notwithstanding any other provision of this Declaration, a Lot owned by the Declarant which
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contains a Dwelling occupied as a residence (but not as a model or sales center) shall be assessed
at the rate applicable to Class A Lots
Section 7 Notice and Quorum for any Action Authorized Under Sections 3 a and 4
After Class B lots cease to exist, written notice of any meeting called for the purpose of taking
any action authorized under Section 3(a) or 4 shall be sent to all Members not less than fifteen
(15) days nor more than thirty (30) days prior to the meeting At such meeting, the presence of
Members, in person or by proxy, entitled to cast sixty (60%) percent of the votes of the entire
membership shall constitute a quorum If the required quorum is not present, another meeting
may be called subject to the same notice requirements, and if called for a date not later than sixty
(60) days after the date of the first meeting, the required quorum at the subsequent meeting shall
be one-half (%z) of the required quorum at the preceding meeting
Section 8 Date of Commencement of Annual Assessments Amount of Initial and
Subsequent Annual Assessments Certificate of Payment Unless a different commencement date
is set by the Board of Directors, the annual assessments provided for herein shall commence as
to all Lots in any phase on the first day of the month following the conveyance of a Lot or Unit
within that phase to an Owner other than the Declarant or a Builder Unless a lower amount is set
by the Board of Directors and ratified by the Members, the first annual assessment shall be the
"Maximum Annual Assessment" set forth in Section 3 of this Article and shall be prorated
according to the number of days remaining in the calendar year
At least thirty (30) days before January 1 of each year, the Board of Directors shall fix the
amount of the annual assessment against each Lot At least fifteen (15) days before January I of
each year, the Board of Directors shall send written notice of such assessment to every Owner
subject thereto The due dates for the payment of annual and special assessments shall be
established by the Board of Directors
The Association shall, upon demand, and for such reasonable charge as the Board of
Directors may determine, furnish a certificate signed by an officer of the Association setting
forth whether the assessments on a specified Lot have been paid If such certificate states that an
assessment has been paid, such certificate shall be conclusive evidence of payment
Section 9 Effect of Nonpayment of Assessments Remedies An assessment not paid
within ten (10) days after the due date shall incur such late charge as the Board of Directors may
from time to time establish, and, if not paid within thirty (30) days after the due date, shall also
bear interest from the due date at the rate of eighteen percent (18%) per annum or the highest rate
allowed by law, whichever is less The Association may bring an action at law or in equity
against the Owner personally obligated to pay the same and/or foreclose the lien against the Lot
for which such assessment is due Interest, late payment charges, reasonable attorneys' fees, and
the costs of such action or foreclosure shall be added to the amount of such assessment No
Owner may waive or otherwise escape liability for the assessments provided for herein by non-
use of the Common Area or by abandonment of his Lot
Section 10 Subordination_ of the _Lien_ to Mortgams The liens provided for herein shall
be subordinate to the lien of any first mortgage or first mortgage on a Lot Sale or transfer of a
Lot shall not affect any assessment lien, however, the sale or transfer of a Lot pursuant to
foreclosure of a first mortgage, or any proceeding in lieu of foreclosure thereof, shall extinguish
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the lien of any assessment which became due prior to the date of such conveyance No such sale
or transfer shall relieve such Lot from liability for any assessment thereafter becoming due or
from the lien thereof, but the liens provided for herein shall continue to be subordinate to the lien
of any first mortgage
Section 11 Initial Capital Contribution At the time of closing of each sale of a
Dwelling, including the initial sale of same, a sum equal to twice (2) the monthly assessment for
Class A Lots in effect at the time of such sale shall be collected from the purchaser of such
Dwelling and transferred to the Association as part of its working capital The purpose of such
working capital contributions is to ensure that the Association will have adequate cash available
to meet unforeseen expenditures or to acquire additional equipment or services deemed by the
Board of Directors to be necessary or desirable Amounts paid to pursuant to this Section shall
not be considered as an advance payment of any regular or special assessment
Section 11 Exempt Property All property dedicated to and accepted by a public
authority and all property owned by a charitable or non-profit organization exempt from taxation
by the laws of the State of North Carolina shall be exempt from the assessments created herein
Notwithstanding the foregoing, no land or improvements devoted to dwelling use shall be
exempt from said assessments
ARTICLE VI
RIGHTS OF LENDERS
Section 1 Books and Records Any owner or holder of a first mortgage on any Lot, or its
agent, shall have the right, during normal business hours, to examine copies of this Declaration,
the Articles of Incorporation, Bylaws, and the books and records of the Association and, upon
written request to the Association, to receive a copy of the financial statement for the
immediately preceding fiscal year
Section 2 Notice to Lenders After Class B Lots cease to exist and upon written request
to the Association, the owner or holder of a first mortgage on any Lot shall be entitled to timely
written notice of
(a) Any 60-day delinquency in the payment of assessments or charges owed by the
Owner of the Lot securing its loan
(b) A lapse, cancellation, or material modification of any insurance policy or fidelity
bond maintained by the Association
(c) Any proposed action that requires the consent of a specified percentage of owners or
holders of first mortgages on the Lots
Section 3 Approval of Owners and Holders of First Mortg4ge After Class B Lots cease
to exist, unless at least seventy-five percent (75%) of the owners and holders of the first
mortgages on Lots located within the Properties have given their prior written approval, the
Association shall not
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(a) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer
any real estate or improvements thereon which are owned, directly or indirectly, by the
Association The granting of easements for utilities or other purposes shall not be deemed a
transfer within the meaning of this subsection Nothing herein shall be deemed to prohibit the
Association from exchanging Common Area for other real property of like utility and value as
provided in Section 1(c) of Article IV of this Declaration, or to require the approval of such
exchange by the holders of first mortgages on the Lots,
(b) Change the method of determining the obligations, assessments, dues or other
charges which may be levied against a Lot,
(c) Fail to maintain hazard insurance on insurable improvements on the Common Area
on a current replacement cost basis in an amount not less than one hundred percent (100%) of the
insurable value, or
(d) Use the proceeds of any hazard insurance policy covering losses to any part of the
Common Area for other than the repair, replacement or reconstruction of the damaged
improvements
Section 4 Payment of Taxes and Insurance Premiums The owners or holders of first
mortgages on Lots, jointly or singly, may pay taxes or other charges which are in default and
which have or may become a charge or lien against any of the Common Area and may pay
overdue premiums on hazard insurance policies or secure new hazard insurance coverage upon
the lapse of a policy covering property owned by the Association The persons, firms or
corporations making such payments shall be owed immediate reimbursement therefor by the
Association
ARTICLE VII
EASEMENTS
Section 1 Access and Utility Easements Easements for the installation and maintenance
of driveways, walkways, water, gas, telephone, cable television and electric power transmission
lines, sanitary sewer and storm water drainage facilities, and for other public utility installations
are reserved as shown on the recorded plats of the Properties The Association may reserve or
grant easements over the Common Area as provided in Article W, Section 1(c), of this
Declaration Within any such easement herein provided, no structure, planting or other material
shall be placed or permitted to remain which may interfere with the installation or maintenance
of the utilities installed thereon, or which may change the direction of flow or drainage of water
through drainage pipes or channels constructed in such easements
For a period of thirty (30) years from the date hereof, Declarant reserves, for itself and its
employees, agents, successors and assigns, an easement upon and a right of ingress, egress and
regress on, over and under the Properties for the purposes of constructing and maintaining water,
sewer, gas, storm water drainage and retention, telephone, cable television, and electric, and
other utility facilities to the extent required by any applicable governmental entity or deemed by
the Declarant to be necessary or convenient for the development, use and enjoyment of the
Properties and the Common Area and for the conduct of construction, sales and marketing
activities Such right expressly includes the right to cut any trees, bushes or shrubbery, make any
gradings of the soil or take any other similar action that it deems reasonably necessary or
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appropriate After such action has been completed, Declarant shall grade and seed the affected
property and otherwise restore the affected property to its original condition to the extent
practicable, but shall not be required to replace any trees, bushes or shrubbery necessarily
removed Declarant shall give reasonable notice of its intent to take such action to each Owner
whose Lot is affected
Section 2 Easements for Governmental Access An easement is hereby established over
the Common Area and every Lot within the Properties for the benefit of applicable governmental
agencies for installing, removing, and reading water meters, maintaining and replacing water and
sewer facilities, and acting for other purposes consistent with public safety and welfare,
including, without limitation, law enforcement, fire protection, garbage collection and the
delivery of mail
Section 3 Owner's Easement and Right of Entry for Repair, Maintenance and
Reconstruction If any Dwelling is located closer than five (5) feet from its Lot line, the Owner
thereof shall have a perpetual access easement over the adjoining Lot to the extent reasonably
necessary to perform repair, maintenance or reconstruction of such Dwelling Such work shall be
done expeditiously and, upon completion of the work, the Owner shall restore the adjoining Lot
to as nearly the same condition as that which existed prior to the commencement of the work as
is reasonably practicable No fence shall be erected within such area adjoining a Dwelling
Section 4 Association's Easement and Right of Entry The Association, for itself and its
employees, agents, contractors, subcontractors and invitees, shall have a perpetual access
easement over the each Lot to the extent reasonably necessary to perform the maintenance to be
performed by the Association
Section 5 Easement Over Common Area An perpetual, non-exclusive easement over the
Common Area is hereby granted to each Lot and its Owners, family members and tenants of
such Owners, the occupants of such Lot, and guests and invitees of such Owners, tenants or
occupants, for the purpose of providing access, ingress and egress to and from streets, parking
areas and walkways serving the Properties
ARTICLE VIII
ARCHITECTURAL CONTROL
Section 1 Architectural Approval The Declarant shall have the sole and absolute right
to determine the style and appearance of the Dwellings, including, but not limited to, flags, flag
poles, flag staffs, fences, walls, buildings, outbuildings, garages, storage sheds, mailboxes, lawn
decorations, structures of any type or color thereof, grading, landscaping, patio covers and
trellises, plans for off-street parking of vehicles and utility layout, and any other improvements to
be built or constructed on any Lot (hereinafter individually and collectively referred to as
"Improvements")
After occupancy of a Dwelling as a residence pursuant to a certificate of occupancy or
other similar certificate issued by the appropriate governmental authority, no Improvements
(including, without limitation, replacement of any previously existing Improvements) shall be
commenced, erected or maintained upon the Properties, nor shall any exterior addition to or
change or alteration thereof be made (including, without limitation, changing materials or color
of any exterior portion of any such Improvements), nor shall a building permit for such
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Improvements or change be applied for or obtained, until plans and specifications showing the
nature, kind, shape, heights, materials, color and location of same shall have been submitted to
and approved in writing by the Association or by an Architectural Review Committee ("ARC")
composed of three or more persons appointed by the Board of Directors of the Association If the
Association or its designee fails to approve or disapprove such proposed Improvements within
60 days after complete plans and specifications have been received by it, approval will not be
required, and this Article shall be deemed to have been complied with The Association shall
have the right to charge a reasonable fee for receiving and processing each application
The Declarant and, after the Declarant no longer owns any Lot or Unit within the
Properties, the Association, shall have the right to promulgate and from time to time amend
written architectural standards and construction specifications (hereinafter the "Architectural
Guidelines") which may establish, define and expressly limit the standards and specifications
which will be approved, including, but not limited to, architectural style, exterior color or finish,
roofing material, siding material, driveway material, landscape design and construction
technique Neither the Association nor the ARC shall approve any Improvements which it
determines, in its sole discretion, not to be in harmony of external design, construction and/or
location in relation to the surrounding structures, topography or the general plan of development
of the Subdivision
Neither the Declarant, the Association, the Board of Directors, the ARC, nor any member
or employee of any of them, shall have any liability to any person or entity by reason of any acts
taken or omitted by them, or any of them, in good faith pursuant to this Article
Section 2 Rules and Regulations The ARC may from time to time recommend to the
Board, and the Board may, in its sole discretion, adopt, promulgate, amend and repeal rules and
regulations interpreting and implementing the provisions of this Article VIII, including adoption
of detailed architectural guidelines and the imposition of a fee or charge for review of proposed
improvements or modifications
Section 3 Variances The ARC may recommend to the Board, and the Board may, by
the vote or written consent of a majority of the members thereof, allow reasonable variances as
to the covenants, conditions or restrictions contained in this Declaration, on such terms and
conditions as it shall require, provided, however, that all such variances shall be in keeping with
the general plan for the improvement and development of the Property Variances contained in
plans that are inadvertently approved by the ARC as part of the proposed improvements shall not
be considered as having been approved unless specifically approved by the Board in accordance
with the provisions of this Section
ARTICLE IX
PARTY WALLS
Section 1 General Rules of Law to Apply The general rules of law regarding party
walls, lateral support in below ground construction and of liability for property damage due to
negligence or willful acts or omissions shall apply to each wall which is built as part of the
original construction of the Dwellings within the Properties and placed on the dividing line
between the Lots, and all reconstruction or extensions of such walls, to the extent not
inconsistent with the provisions of this Article
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Section 2 Sharingpair and Maintenance The cost of reasonable repair and
maintenance of a party wall shall be shared by the Owners who make use of the wall in
proportion to such use
Section 3 Destruction by Fire or Other Casualty If a party wall is destroyed or damaged
by fire or other casualty, any Owner who or which uses the wall may restore it, and if the other
Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in
proportion to such use without prejudice, however, to the right of any such Owners to call for a
larger contribution from the others under any rule of law regarding liability for negligent or
willful acts or omissions
Section 4 Easement and Right of Ent1y for Re air Maintenance and Reconstruction
Every Owner shall have an easement and right of entry upon the Lot of any other Owner and the
Common Area to the extent reasonably necessary to perform repair, maintenance or
reconstruction of a party wall and those improvements belonging to his Lot which encroach on
an adjoining Lot or Common Area Such repair, maintenance, or reconstruction shall be done
expeditiously, and upon completion of the work, the Owner shall restore the adjoining Lot(s) and
Common Area to as nearly the same condition as that which prevailed prior to commencement of
the work as is reasonably practicable
Section 5 Weather -proofing Notwithstanding any other provision of this Article, an
Owner who, by his negligence or willful act, causes the party wall to be exposed to the elements,
shall bear the entire cost of furnishing the necessary protection against such elements
Section 6 Right to Contribution Runs With Land The right of any Owner to contribution
from any other Owner under this Article shall be appurtenant to the land and shall pass to such
Owner's successors in title
Section 7 Certification by Adjoining Property Owner That No Contribution Is Due If
any Owner desires to sell his Lot, such Owner, in order to assure a prospective purchaser that no
Owner of an adjoining Lot has a right of contribution as provided in this Article, may request the
adjoining property Owner to make a certification that no right of contribution exists, whereupon
it shall be the duty of each adjoining property Owner to make such certification immediately
upon request, and without charge, provided, however that where the adjoining property Owner
claims a right of contribution, the certification shall contain a recital of the amount claimed
Section 8 Arbitration In the event of a dispute concerning a party wall or the provisions
of this Article, such dispute shall be resolved pursuant to the provisions of Section 8 of Article
XII hereof
ARTICLE X
RIGHTS AND RESPONSIBILITIES OF THE ASSOCIATION
Section 1 Responsibilities The Association, subject to the rights of the Owner set forth
in this Declaration, shall be responsible for the exclusive management and control of the
Common Area and shall keep the Common Area in good, clean and proper condition, order and
repair The Association shall be responsible for the payment of all costs, charges and expenses
incurred in connection with the operation, administration and management of the Common Area
and the performance of its other obligations hereunder The Association shall operate and
M42

maintain areas designated by the Declarant as Common Areas, whether or not title to such areas
has been formally conveyed to the Association The Association shall also be responsible for
enforcement of the covenants and restrictions contained in this Declaration
Section 2 _Manager The Association may employ and pay for the services of a person or
entity, including the Declarant (the "Manager"), to assist the Association in managing its affairs
and carrying out its responsibilities hereunder and such other persons or entities, including
attorneys and accountants, as the Association deems necessary or advisable, whether such
persons or entities are engaged, furnished of employed by the Manager or directly by the
Association The Association may enter into a Management Agreement for such management
services upon such terms as the Board of Directors may deem appropriate The payment of
management fees due to the Declarant may, at Declarant's option, be deferred until such later
date as Declarant, in its sole discretion, deem appropriate Furthermore, any management fees
due to Declarant may, at Declarant's option, be credited against any assessments due or to be
coming due from the Declarant
Section 3 Personal Property for Common Use The Association may acquire and hold
tangible and intangible personal property and may dispose of the same by sale or otherwise,
subject to such restrictions, if any, as may from time to time by provided in the Articles of
Incorporation or Bylaws of the Association
Section 4 Insurance Bonds The Association shall procure and maintain adequate
liability insurance covering the Association The Association shall also procure and maintain full
replacement value hazard insurance on real and personal property owned by the Association, and
shall procure and maintain officers', directors' and employees' liability insurance, and such other
insurance as it deems necessary or advisable The premiums for such insurance shall be a
common expense paid from the annual assessments provided in Article V of this Declaration
The Association may cause any or all persons responsible for collecting and disbursing monies
of the Association to be bonded
Section 5 Implied Rights The Association may exercise any other right or privilege and
take any action authorized by this Declaration, the Association's Articles or Bylaws, or the North
Carolina Planned Community Act (Chapter 47F of the North Carolina General Statutes), or the
North Carolina Nonprofit Corporation Act (Chapter 55A), as from time to time amended, and
every other right or privilege reasonably necessary to effectuate the exercise of any right or
privilege or the taking of any action authorized herein or therein
Section 6 Declarant's Reserved Rights,_ Association's Obligation of Cooperation The
Association shall accept conveyance of any Common Area conveyed to it, in fee or by easement,
by Declarant or, at the request of Declarant, by an owner of any property within or to be annexed
into the Properties and, upon request of Declarant and without further consideration, shall
execute any document necessary to evidence such acceptance
Until such time as Declarant and Builders have completed all of the contemplated
improvements and have sold all of the Lots within the Subdivision
(a) Declarant shall have the right to alter the boundaries of the Common Area, whether or
not it has been previously deeded to the Association, provided that such alteration does not
substantially, materially and adversely affect the function and use of the Common Area The
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Association and each Owner hereby irrevocably appoints the Declarant as his attorney-m-fact to
execute and/or deliver any documents, plats, deeds, or other written matters necessary or
convenient to accomplish the addition of Common Area or Properties, or both, to create
easements as deemed necessary by Declarant, and to adjure the boundary or boundaries of the
Common Area
(b) Neither the Association nor its Members, nor the use of the Common Area by the
Association and its Members, shall interfere with or impede the completion of the improvements
or the marketing and sale by the Declarant and the Builder of Lots and homes
(c) Declarant and each Builder shall have the right to make such use of Lots and the
Common Area as may facilitate completion of development and sale of Lots and Units by the
Declarant and the Builder Without limiting the foregoing, Declarant shall have the right to
maintain or permit the Builder or others to maintain sales offices, model Dwellings and Units,
administrative offices, and construction offices (which may be trailers or temporary or
permanent buildings), or any or all of same, on Lots or the Common Area Declarant and the
Builder shall also have the right to erect and maintain signs on Lots and/or the Common Area, to
bring prospective purchasers upon the Common Area, to -use the Common Area for sales and
marketing activities for the Subdivision, to grant the right to use the Common Area to a
prospective purchasers or any other individual or group, in Declarant's sole discretion, and to
conduct any and all other marketing activities deemed appropriate by the Declarant, and to
permit the Builder and others to exercise such rights in conjunction with or separate from the
Declarant
(d) Subject to the provisions of Section l (d) of Article IV of this Declaration, Declarant
shall have the right, but not the obligation, to loan money to the Association in such amounts and
upon such terms and conditions as to which the Declarant may agree Payments due to the
Declarant under any such loans may, at Declarant's option, be credited against any assessments
coming due at any time from the Declarant
(e) In addition to all other rights of the Declarant, no amendment shall be made to this
Declaration, and no rule or regulation shall be adopted, interpreted or enforced by the
Association, so as to modify the assessments or other charges applicable to the Declarant or a
Builder or assessed against the Lots owned by either, or which shall restrict, impair, or, in
Declarant's sole judgment, materially adversely affect the activities of the Declarant or the
Builder with regard to construction, use of Common Area and delegation of the right to use the
Common Area, or the marketing and sale of Lots by the Declarant and Builder, whether or not
such activities are enumerated in the preceding paragraphs, without the express prior written
consent of Declarant
In exercising any of the rights provided or granted under this Article X, neither Declarant,
nor the Association shall revoke, modify or amend this Declaration in a manner that reduces the
size of the Common Area to less than, the area required by the appropriate governmental
authority as of the date of this Declaration
ARTICLE XI
USE RESTRICTIONS

Section 1 Business Use Prohibited No trade, business, profession or other type of
commercial activity shall be carried on upon any Lot, except that the Declarant, the Builder, real
estate brokers, Owners and their agents may show Lots for sale or lease Notwithstanding the
foregoing, the Declarant and each Builder and the agents and employees of each, shall have the
right to (i) use Lots and improvements erected thereon for sales offices, field construction
offices, storage facilities, and its own general business offices, (u) maintain fluorescent -lighted
or spot -lighted model homes which may be open to the public for inspection 7 days per week for
such hours as the Declarant or Builder deems appropriate or necessary, (m) conduct any other
activities on Lots to benefit sales efforts, and (iv) use the parking facilities on the Common Area
for parking for its employees and invitees
Section 2 Use of AccessoLy Structures No tent, shack, barn, car port, metal awnings,
metal utility sheds or other building, other than a Dwelling and its garage, shall be erected on a
Lot, and used temporarily or permanently as a residence, nor shall any such structure be used for
any other purpose Notwithstanding the foregoing, the Declarant and, with the approval of the
Declarant, a Builder, may use temporary buildings, offices or facilities in connection with the
marketing, sale and construction of Units
Section 3 Maintenance of Improvements Each Owner shall maintain in good condition
and repair all improvements constructed upon such Owner's Lot, including, without limitation,
the Dwelling No Owner shall change the exterior design or color of the Dwelling on such
Owner's Lot, including the roof thereof, except in compliance with Article VIII hereof
Section 4 Storage Clothes Hanging No Lot or Common Area shall be used for the
storage of rubbish Outside clothes hanging devices shall not be permitted
Section 5 Nuisances No noxious or offensive trade or activity shall be carried on upon
any Lot or the Common Area, nor shall anything be done thereon which may be or become an
annoyance or nuisance to the neighborhood No automobile or other vehicle mechanical repairs
or like activity shall be conducted within the Properties other than in a garage and concealed
from public view
Section 6 Lawns Each Lot on which there is a completed Dwelling shall be maintained
in a neat condition by the Owner thereof or, as appropriate, the Association or a Subassociation
In this context, the word "Lot" shall include that portion of the property from the outside of the
structure on the applicable Lot to the adjacent paved road surface "Neat" shall require, at a
minimum, that the lawn be regularly cut and fertilized and that mulched areas be regularly re -
mulched and kept weeded so that its appearance is in harmony with the neighborhood No Owner
shall allow the grass on a Lot to grow to a height in excess of six (6) inches, measured from the
surface of the ground All improved Lots must have grass lawns, no gravel or similar type lawns
are permitted
Section 7 Failure to Maintain If an Owner fails to maintain the Lot or the improvements
thereon, the Association or the appropriate Subassociation, after giving such Owner at least ten
(10) days' written notice, shall be authorized to undertake such maintenance at the Owner's
expense By accepting title to his Lot, each Owner shall be deemed to grant access upon the
Owner's Lot and Dwelling for such purpose and such entry shall not constitute a trespass If such
maintenance is undertaken by the Association, Subassociation or Declarant, the charge therefor
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and all costs of enforcement and collection shall be secured by a lien against the Lot as provided
in Article V hereof
Section S Animals No animals, livestock or poultry of any kind shall be raised, bred, or
kept on any Lot, except that a reasonable number of cats, dogs, and other household pets may be
kept provided they are kept within the residence and are not kept, bred, or maintained for any
commercial purposes or become a nuisance to the neighborhood No person owning or having
custody of an animal shall allow the animal to stray or go upon another Owner's Lot without the
consent of such other Owner No animals shall be permitted on or in the Common Area at any
time except as permitted by the rules and regulations of the Association or by applicable law All
animals shall be on a leash when outside the Owner's Dwelling The Owner shall be responsible
for cleaning all droppings from their animals The association shall have the right to expel
animals from the community for the Owners continuing violation(s) of the governing documents
Section 9 &ps No signs shall be displayed on any Lot with the exception of one "For
Sale" or "For Rent" sign not exceeding 36" x 24" in size and signs with the maximum
dimensions of 24 inches by 24 inches expressing support of or opposition to political candidates
or other issues which will appear on the ballot of a primary, general or special election, provided
that such political signs shall not be placed on a Lot earlier than forty-five (45) days before such
election and shall be removed within seven (7) days after such election The Association may
develop uniform sign standards and specifications to which all Owners must adhere No sign of
any kind shall be displayed in or on the Common Area without the prior written consent of the
Association Notwithstanding the foregoing, Declarant and, with the consent of and upon such
conditions as Declarant, in its sole discretion, might impose, a Builder shall have the right to
erect and maintain signs of any type and size on any Lot which it owns and on the Common
Area, in connection with the development and sale of the Properties
Section 10 Water Retention Areas The Association shall be responsible for maintaining
the portions of the storm water drainage system which are within the Common Area, including
the water quality and quantity standards of the approved plans, to the extent required by law A
drainage easement is hereby dedicated to the Association for the purpose of maintaining the
storm water system to meet water quality and quantity design standards of the approved plans
and any future governmental laws, rules or regulations
Each Owner of a Lot which borders a water retention area shall maintain any portion of
that Owner's Lot lying within a retention area free of debris but shall not remove any wetlands
species or do anything that would affect adversely water quality within the water retention area
Swimming and bathing in water retention areas are prohibited Docks or other structures
shall not be erected in water retention areas without the prior written consent of the Association
All other uses of water retention areas shall be subject to the prior written approval of the
Association and such rules and regulations as the Association may adopt from time to time
Section 11 Vehicles, Boats and Trailers No vehicle of any kind shall be parked on any
Lot except on a paved parking surface or driveway or within a garage No truck or vehicle used
primarily for commercial purposes (other than those temporarily present on business) and no
recreational vehicles or campers, and no trader may be parked within the Properties Any
vehicle not in operable condition and validly licensed, may be kept on a Lot if kept inside a
garage and concealed from public view No boat may be kept on any lot For the purpose of the
Will

preceding sentence, the term "kept" shall mean present for either a period of more than ten (10)
hours or overnight, whichever is less The Association shall have the right to tow or remove any
boat, trailer, or vehicle of any type which is parked within the Premises or kept on any Lot in
violation of this section, at the owner's expense, and the owner of each Lot, by acceptance of
their deed, does grant to the Association such an easement on, across, and upon their Lot as may
be necessary to enforce the provisions set out in this section
Section 12 Walls, Fences, and Hedges All walls, fences, planters and hedges shall be
controlled strictly for compliance with this Declaration and architectural standards established by
the Declarant or the ARC
No wall, fence, planter or hedge shall be erected or maintained on a side lot line forward
of the rear exterior corners of the main residential structure located on a lot For the purpose of
this provision the rear exterior corner of the main residential structure excludes bay or box
windows, chimney structures or any other similar appendage
No perimeter wall, fence, or hedge in excess of sax (6) feet in height shall be erected and
maintained on a side lot line from a point located at the rear of exterior of the main residential
structure, backward to the rear property lane on a Lot and along the rear property line of the Lot
On corner lots, side yard fences must be set back from the side property line a minimum
of one-half (1/2) of the side building line setback shown on the plat In no event shall the fence
be located forward of the rear exterior corner of the main residential structure
The design and materials of all fences shall be approved by the ARC prior to construction
pursuant to the approval requirements of Article VIII, Section 1, of this Declaration
Section 13 Antennae and Roof Structures No radio or other electrical towers, aerials,
antennae, , or other devices of any type for the reception or transmission of radio broadcasts or
other means of communication shall be erected, constructed, placed or permitted to remain on
any Lot or upon any improvements thereon, except that this prohibition shall not apply to those
antennae specifically covered by 37 C F R Part 1, Subpart S, Section 14000 (or any successor
provision) promulgated under the Telecommunications Act of 1996, as amended from time to
time The Association shall be empowered to adopt rules governing the types of antennae that are
permissible hereunder and establishing reasonable, non-discriminatory restrictions relating to
safety, location and maintenance of antennae
An antenna permissible pursuant to rules adopted by the Association may be installed
only of it is approved by the Association pursuant to Article VIII hereof
Section 14 Visual Obstructions at the Intersections of Public Streets No object or thing
which obstructs sight lines at elevations between two (2) and six (6) feet above the roadways
within the triangular area formed by the junction of street curb lines and a lane connecting them
at points twenty-five (25) feet from the junction of the street curb lines (or extensions thereof)
shall be placed, planted or permitted to remain on any corner lots
Section 15 Leased Units An Owner may lease or sublet his Unit, provided, however,
that any lease or sublease must be for at least six (6) months, in writing and contain the following
provision
-21-

"Tenant shall obey, adhere to and be bound by all provisions of the Declaration Of
Covenants, Conditions And Restrictions For the Sunset Ridge Community, recorded in the
applicable public registry for Brunswick County, North Carolina Tenant acknowledges that he
has received of a copy such Declaration -and the rules and regulations of the Association and is
familiar with the provisions of same "
If an Owner fails to include said provision in any lease or sublease, it shall be
conclusively deemed to be included and part of said lease or sublease Owner shall furnish the
Association a copy of any leases or subleases of his Unit
Section 16 Minimum Size of Dwellings All Dwellings constructed on any Lot shall
have a minimum of 1100 square feet of enclosed dwelling area The term "enclosed dwelling
area" as used in the minimum requirements shall be the total enclosed area within a dwelling,
provided, however, that such term does not include garages, terraces, decks, open porches, and
like areas, provided, further, that shed type porches, even though attached to the house are
specifically excluded from the definition of the aforesaid term "enclosed dwelling area"
Section 17 Attached Garages All Units constructed within the Properties shall contain
an enclosed garage that is permanently attached to and part of the Unit and such garage shall be
large enough to accommodate at least one automobile
Section 18 Seasonal or Holiday Decorations (e g , Christmas trees and lights,
pumpkins, Easter decorations) shall be removed from each Lot or residential dwelling within a
reasonable period of time after such holiday passes The ARC has the sole discretion to
determine what is a reasonable period of time for seasonal or holiday decorations to exist after
the holiday passes and its determination shall be final
Section 19 Deviations Declarant at its sole discretion, is hereby permitted to approve
deviations to restrictions in Article XI in instances where in its judgment, such deviation will not
adversely affect the development of the Property as a whole Such approvals must be granted in
writing and when given will automatically amend these restrictions for that certain Lot only
Section 20 Window Coverings All drapes, curtains or other similar materials hung at
windows so as to be visible from outside the home shall be of a white or neutral background
material
Section 21 Exterior _Lights All light bulbs or other lights installed in any fixture located
on the exterior of any building or any Sites shall be clear, white or non -frosted lights or bulbs
Light wattage and placement shall be approved by the Architectural Control Board
Section 22 Service Utilities, Fuel Tanks, Wood Piles, Trash All service utilities, fuel
tanks, wood piles and trash and garbage containers are to be enclosed within a fence, wall or
plant screen of a type and size approved by the Declarant or the Architectural Control
Committee, so as to preclude the same from causing an unsightly view from any highway, street
or way within the subdivision, or from any other residence within the subdivision
Section 23 Curbside Maintenance Each lot owner shall have a duty and obligation to
maintain the roadside curbing along the front of their lot, and in the case of corner lots, along the
side abutting roadways, in the same condition as originally installed by the Declarant In the
event any lot owner shall fail to do so, then the provisions set out in Article XI, Section 7 dealing
-22-

with failure to maintain shall apply Provided, however, that if the Declarant still owns property
in the Sunset Ridge development, whether a developed lot or lots, or a tract or tracts of land for
future development, the Declarant shall have the option of repairing or replacing damaged
curbing to its original condition, and the cost of such repairs or replacement shall constitute a
lien in favor of the Declarant against the lot adjacent to where the repairs or replacements were
effected
Section 24 Flags The design, materials and location of all flags, flag poles, flag staffs,
shall be approved by the ARC prior to installation or display pursuant to the approval
requirements of Article VI1I, Section 1, of this Declaration
ARTICLE XIl
STORMWATER MANAGEMENT
Section I The following covenants are intended to ensure ongoing compliance with State
Stormwater Management Permit Number , as issued by the Division of Water
Quality under NCAC 2H 1000 The State of North Carolina is made a beneficiary of these
2
covenants to the extent necessary to maintain compliance with the Stormwater Management
Permit These covenants are to run with the land and be binding on all persons and parties
claiming under them The covenants pertaining to stormwater regulations may not be changed or
deleted without concurrence of the State of North Carolina, Division of Water Quality
�U
Section 2 The maximum allowable built -upon area per lot is 5,400 square feet This
allotted amount includes any built -upon area constructed within the lot property boundaries, and
that portion of the right-of-way between the front lot line and the edge of the pavement Built -
upon area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate,
and coquina, but does not include raised, open wood decking, or the water surface of swimming
pools
Section 3 Filling in, piping or altering any 3 1 vegetative conveyances (ditches, swales,
etc ) associated with the development except for average driveway crossings, is strictly
prohibited by any persons
Section 4 Lots within CAMA's Area of Environmental Concern may have the permitted
built -upon area reduced due to CAMA jurisdiction within the AEC
Section 5 Filling in, piping or altering any designated 5 1 curb outlet Swale associated
with the development is prohibited by any persons
Section b A 30-foot vegetated buffer must be maintained between all built -upon area and
the Mean High Water line of surface waters
Section 7 Each Owner of a Lot which borders a water retention area, drainage easement
or drainage swale area shall be responsible to maintain any portion of that Owner's lot lying
within a retention area, drainage easement, or drainage swale area free of debris but shall not
-23-

remove any wetlands species or do anything that would affect adversely water quality within the
water retention area No structure of any type shall be permitted within the water retention areas,
drainage easements or drainage swale areas
Swimming and bathing in water retention areas are prohibited Docks or other structures shall
not be erected in water retention areas without the prior written consent of the Association All
other uses of water retention areas shall be subject to the prior written approval of the
Association and such rules and regulations as the Association may adopt from time to time
ARTICLE XIII
GENERAL PROVISIONS
Section 1 Enforcement The Association or any Owner shall have the right to enforce, by
proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and
charges now or hereafter imposed by the provisions of this Declaration Failure by the
Association or an Owner to enforce any covenant or restriction herein contained shall in no event
be deemed a waiver of the right to do so thereafter Further, the Board of Directors shall have the
right to record in the appropriate land records a notice of violation of this Declaration or the
Bylaws of the Association, or any rules, regulations, use restrictions, or design guidelines
promulgated by the Association and to assess the cost of recording and removing such notice
against the Owner in violation of the Declaration
Section 2 Severability Invalidation of anyone of these covenants or restrictions by
judgment or court order shall in no way affect any other provision, which shall remain in full
force and effect
Section 3 Amendment For so long as Declarant owns any Lot or Unit within the
Properties, this Declaration may be amended by the Declarant, without the consent or joinder of
any other Owner or the Association Any such amendment shall be effective upon recording of
same in the applicable public registry for Brunswick County, North Carolina No amendment
shall be binding upon any Lot or Owner until fifteen (15) days after a copy of such amendment
has provided to such Owner
The covenants and restrictions of this Declaration, and any amendments thereto, are
appurtenant to and shall run with and be binding upon the Properties and the Owners thereof for
a term of twenty-five (25) years from the date this Declaration is recorded, after which time they
shall be automatically extended for successive periods of ten (10) years unless terminated or
amended by a vote of the Owners as set forth below
Subject to the provisions of Section 8(e) hereof and after Class B Lots cease to exist, this
Declaration may be amended during the first twenty-five year period by an instrument signed by
the Owners of not less than seventy-five percent (75%) of the Lots and terminated during the
first twenty-five year period by an instrument signed by the Owners of not less than eighty
percent (80%) of the Lots, and thereafter amended by an instrument signed by the Owners of not
less than sixty-seven percent (67%) of the Lots or terminated by an instrument signed by the
Owners of not less than eighty percent (80%) of the Lots, provided, however, that so long as
there is Class B membership, no amendment adopted by the Owners shall be effective unless and
until such amendment is approved in writing by the Declarant Amendment or termination shall
be by written instrument signed by the appropriate persons or entities and recorded in the
-24-

applicable public registry for Brunswick County, North Carolina, and upon recordation, shall be
binding on all Lots and Units within the Properties and the Owners thereof, without regard to
whether the Owner of such Lot voted for or against or signed or did not sign the amendment
Section 4 Interpretation Headings used herein are for indexing purposes only and shall
not be used as a means of interpreting or construing any provision hereof Unless the context
otherwise requires, the use herein of the singular shall include the plural and vice versa the use
of one gender shall include all genders, and the use of the word "including" shall mean
"including, without limitation" This Declaration and the provisions thereof shall be construed
and enforced in accordance with the laws of the State of North Carolina
Section 5 Subdivision of Lots No Lot within the Subdivision may be subdivided by sale
or otherwise so as to reduce the total Lot area shown on the recorded plat, except by or with the
consent of the Declarant and, if required, by the appropriate governmental authority
Section 6 Declarant's _Right To Change Development With the approval of the
appropriate governmental authority, and subject only to such terms and conditions as said
authority may impose, Declarant shall have the right, without consent or approval of the Owners,
to create Lots and Units, add Common Area, and reallocate Lots or Units within the Properties
Declarant may convert any lot or lots or any other property subject to these restrictions to use as
a roadway and road right-of-way
Section 7 Rules and Regulations Enforcement The Board of Directors shall have the
authority to adopt additional rules and regulations governing the use of the Common Area and
the Lots within the Subdivision and shall furnish a written copy of said rules and regulations to
the Owners) of each Lot at least fifteen (15) days before such rules and regulations become
effective
In addition to any other rights and remedies that the Association may have under the
Bylaws and this Declaration, the Association may impose sanctions for a violation of this
Declaration, the Bylaws of the Association, the rules and regulations adopted Association, and
any restrictive covenants applicable to the Properties, in accordance with procedures set forth in
the Bylaws, which sanctions may include, without limitation, reasonable monetary fines, which
shall constitute a lien upon the Lot of the violator, and suspension of the right to vote and the
right to use the Common Area any facilities thereon
In addition, as provided in the Bylaws, the Association may exercise self-help to cure
violations (specifically including, but not limited to, the towing of Owner and tenant vehicles
that are in violation of parking rules) and may suspend the right of an Owner to use any Common
Area and recreational facility within the Properties if the Owner is more than 30 days delinquent
in paying any assessment or other charge due to the Association
The Association shall at all times have the right and easement to go upon any Lot for the
purposes of exercising its rights hereunder, including, but not limited to, enforcement of the
architectural guidelines applicable to the Properties Any entry onto any Lot for purposes of
exercising this power of self-help shall not be deemed as trespass All remedies set forth in this
Declaration and the Bylaws shall be cumulative of any remedies available at law or in equity In
any action to enforce its rights and remedies, if the Association prevails, it shall be entitled to
-25-

recover all costs, including, without limitation, attorneys' fees and court costs, incurred in such
action
The Association shall not be obligated to take action to enforce any covenant, restriction
or rule which the Board reasonably determines is, or is likely to be construed as, inconsistent
with applicable law, or in any case in which the Board reasonably determines that the
Association's position is not strong enough to justify taking enforcement actions Any such
determination shall not be construed as a waiver of the right to enforce such provisions under
other circumstances or to estop the Association from enforcing any other covenant, restriction or
rule
Section 8 Dispute Resolution
(a) Consensus for Association Action
(1) Except as provided in this Section, the Association may not commence a legal
proceeding or an action under this Article without the approval of at least two-thirds of the
Members The foregoing shall not apply to (1) actions brought by the Association to enforce the
provisions of this Declaration, the Bylaws, or rules and regulations adopted by the Association
(hereinafter collectively referred to as the ("Governing Documents"), (i)) the imposition and
collection of assessments, (ill) proceedings involving challenges to ad valorem taxation or (iv)
counterclaims brought by the Association in proceedings against it
(2) Prior to the Association or any Member commencing any proceeding to which
Declarant is a party, including, without limitation, a proceeding based on an alleged defect in any
improvement, Declarant shall have the right to be heard by the Members, or the particular
Member, and to have access to inspect and correct the condition of or redesign any portion of
any improvement as to which a defect is alleged or to otherwise correct or resolve the dispute
(b) Alternative Method for Resolving Disputes Declarant, its officers, directors,
employees and agents, the Association, its officers, directors and committee members, all
Owners, Members, any Builder, its officers, directors, employees and agents, and any other
person or entity not otherwise subject to this Declaration who agrees to submit to this Section 8
(each such person or entity being herein referred to as a "Bound Party" or, in groups, as the
"Bound Parties") each agrees to encourage the amicable resolution of disputes, without the
emotional and financial costs of litigation Accordingly, each Bound Party covenants and agrees
to submit those claims, grievances and disputes described in Subsection (c) hereof (herein
referred to as the "Claims") to the procedures set forth in Subsection (d) hereof
(c) Claims Unless specifically exempted below, all Claims between any of the Bound
Parties, regardless of how such Claims might have arisen or on what they might be based,
including, but not limited to, Claims (i) ansing out of or relating to the interpretation,
application or enforcement of the Governing Documents or the rights, obligations and duties of
any Bound Party under the Governing Documents, (ii) relating to the design and construction of
improvements, or (ill) based on any statements, representation, promises, warranties, or other
communications alleged to have been made by or on behalf of any Bound Party, shall be subject
to the provisions of Subsection (d) hereof
Koil

Notwithstanding the foregoing, unless all parties to any such dispute otherwise agree in
writing, the following shall not be deemed to be Claims covered by this Subsection (c) and shall
not be subject to the provisions of Subsection (d)
(1) any proceeding by the Association against any Bound Party to enforce the provisions
of Article V of this Declaration
(2) any proceeding by the Association or the Declarant to obtain a temporary restraining
order or injunction (or equivalent equitable relief) and such other ancillary relief as the court may
deem necessary in order to maintain the status quo and preserve the Association's or the
Declarant's ability to act under and enforce the provisions of Articles VIII and Xl of this
Declaration,
(3) any proceeding between or among Owners, which does not include the Declarant, a
Builder, or the Association as a party, if such proceeding asserts a Claim which would constitute
a cause of action independent of the Governing Documents, or
(4) any proceeding in which no Bound Party is an indispensable party
With the consent of all parties thereto, any dispute involving any of the foregoing
excepted actions may be submitted to the alternative dispute resolution procedures set forth in
Subsection (d)
(d) Mandatory Procedures
(1) Notice Any Bound Party having a Claim (the "Claimant") against any other Bound
Party (the "Respondent") (the Claimant and the Respondent being herein individually referred to
as a "Party" and collectively as the "Parties") shall notify each Respondent in writing (the
"Notice"), stating plainly and concisely
(1) the nature of the Claim, including the persons or entities involved and the
Respondent's role in the Claim
(11) the legal basis of the Claim (i e , the specific provisions of the Governing
Documents or other authority out of which the Claim arises),
(m) the proposed remedy, and
(iv) the fact that Claimant will meet with Respondent to discuss in good faith
ways to resolve the Claim
(2) Negotiation and Mediation
(i) The Parties shall make every reasonable effort to meet in person and confer
for the purpose of resolving the Claim by good faith negotiation If requested in uniting,
accompanied by a copy of the Notice, the Board of Directors of the Association may appoint a
representative to assist the Parties in their negotiations
( ii) If the Parties do not resolve the Claim within 30 days after the date of the
Notice (or within such other time period as may be agreed upon by the Parties), Claimant shall
-27-

have an additional 30 days in which to submit the Claim to mediation under the auspices of the
American Arbitration Association ("AAA") in accordance with the AAA's Commercial or
Construction Industry Mediation Rules, as appropriate
(m) If Claimant does not submit the Claim to mediation within such time, or does
not appear for the mediation Claimant shall be deemed to have waived the Claim, and
Respondent shall be released and discharged from any and all liability to Claimant on account of
such Claim, provided, nothing herein shall release or discharge the Respondent from any liability
to any person or entity other than the Claimant
(iv) Any settlement of the Claim through negotiation or mediation shall be
documented in writing and signed by the Parties If the Parties do not settle the Claim within 30
days after submission of the matter to AAA mediation, or within such other time as may be
determined by the mediator or agreed to by the Parties, the mediator shall issue a written notice
of termination of the mediation process, which notice shall state that the Parties are at an impasse
and set forth the date that mediation was terminated (hereinafter "Termination of Mediation")
(v) Each Party shall bear its own costs of the mediation, including attorneys' fees,
and each Party shall share equally all fees and expenses of the mediator and the administrative
fees of mediation If the Parties agree to a resolution of a Claim through negotiation or mediation
as set forth in this Subsection (d), and any Party thereafter fails to abide by the terms of the
settlement agreement, any other Party may file suit or initiate arbitration proceedings to enforce
the agreement without the need to again comply with the procedures set forth in this Subsection
(d) In such event, the Party taking action to enforce the agreement shall be entitled to recover
from the non -complying Party (or, if more than one Party is in noncompliance, from all non-
complying Parties pro rata) all costs incurred by such Party in enforcing the agreement,
including, without limitation, attorneys' fees and court costs
(3) Binding Arbitration
(i) After Termination of Mediation, Claimant shall be entitled to submit the
Claim to final, binding arbitration under the auspices of the AAA in accordance with the AAA's
Commercial or Construction Industry Arbitration Rules, as appropriate No Claim subject to this
Subsection (d), whether by the provisions thereof or by agreement of the Parties, shall be
submitted to or decided by or in a court of law Any judgment upon the award entered by the
arbitrator may be entered in and enforced by a court of competent jurisdiction If the amount
claimed by the Complainant or, by the Respondent in a counterclaim, exceeds $250,000, the
Claim shall be heard and determined by three arbitrators Otherwise, unless the Parties otherwise
agree, the Claim shall be heard and determined by an arbitrator An arbitrator shall have
expertise in the areas) of the Claim, which may include legal expertise if legal issues are
involved
(ll) Each Party shall bear its own costs of the arbitration, including attorneys'
fees, and each Party shall share equally all fees and expenses of the arbitrator and the
administrative fees of arbitration
Notwithstanding the foregoing, if a Party unsuccessfully contests the validity or scope of
arbitration in a court of law, the non -contesting Party shall be awarded reasonable attorneys' fees
M.

and expenses incurred in defending such contest All decisions regarding the arbitrability of any
Claim shall be decided by the arbitrator(s)
(iii) The award of the arbitrators shall be accompanied by detailed written
findings of fact and conclusions of law Except as required by law or for confirmation of an
award, neither a Parry nor an arbitrator may disclose the existence, content, or results of any
arbitration hereunder without the prior written consent of all Parties involved in the arbitration
(e) Amendment of Subsection Notwithstanding any other provision of this Declaration,
this Subsection 8 may not be amended prior to the expiration of 20 years from the date of
recording of this Declaration without the prior written consent of the Declarant
[SIGNATURES ON FOLLOWING PAGE]
[Remainder of page intentionally left blank]
-29-

Signed, Sealed and Delivered in the presence of
Witness Number I
Witness Number 2
Signed, Sealed and Delivered in the presence of
Witness Number 1
Witness Number 2
STATE OF )
COUNTY OF }
DECLARANT
By
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Date Executed
DECLARANT
By
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Title
Date Executed
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I, , a Notary Public for , do hereby certify that
the of , a
, personally appeared before me this day and acknowledged
the due execution of the foregoing instrument
Witness my hand and seal this day of ,
(SEAL)
Notary Public for
My commission expires
-30-

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Page 1 of 1
North Carolina
Elaine F. Marshall D EPARTM E NT of THE
Secretary SECRETARY OF STATE
Corporations
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PO Box 29622 Raleigh, NC 27626-0622 [phone]
Date 8/31 /2006
Click here to
View Document Filings I
ill Print apre-populated Annual Report Form I Annual Report Count I Fil
an Annual Report I
Corporation Names
Name Name Type
NC BILL CLARK HOMES OF Legal
WILMINGTON, LLC
NC BILL CLARK
CONSTRUCTION COMPANY, Prev Legal
LLC WILMINGTON, NC
Limited Liability Company Information
SOSID
0364516
Status
Current -Active
Date Formed
3/10/1995
Citizenship
Domestic
State of Inc
NC
Duration
1/1/2025
Registered Agent
Agent Name
Registered Office Address
Registered Mailing
Address
Principal Office Address
Principal Mailing Address
Clark, William H
200 Arlington Blvd Ste R
Greenville NC 27834
200 Arlington Blvd Ste R
Greenville NC 27834
430 Eastwood Rd, Ste 100
Wilmington NC 28403
430 Eastwood Rd, Ste 100
Wilmington NC 28403
For questions or comments about the North Carolina Secretary of State's web site, please send e-mail to Webmaster
http //www secretary state nc us/Corporations/Corp aspx?P1temId=4827491
8/31 /2006

i C2006IN00505
�tiM O
LIMITED LIABILITY COMPANY `
ANNUAL REPORT
e
NAME OF LIMITED LIABILITY COMPANY BILL CLARKHOMES OFWILMINGTON, LLC
SOSID 0364516
Date Filed. 7/17/2006 4.11.00 PM
Elaine F Marshall
North Carolina Secretary of State
C200619800505
STATE OF INCORPORATION NC
SECRETARY OF STATE R L L P ID NUMBER 0364516 FEDERAL EMPLOYER ID NUMBER 561913557
NA PURE OF BUSINESS Construction
REGISTERED AGENT CLARK, WILLIAMH
REGISTERED OFFICE MAILING ADDRESS 200Arlington Blvd ISte R
Greenville, NC 27834
REGISTERED OFFICE STREET ADDRESS 200 Arlington Blvd ISte R
Greenville, NC 27834 P17T County
SIGNATURE. OF 1 HE NEW REGISTERED AGENT
SIGNATURE CONSTITUTES CONSENT TO THE APPOINTMENT
PRINCIPAL OFFICE TELEPHONE NUMBER [phone]
PRINCIPAL OFFICE MAILING ADDRESS 430 Eastwood Rd , Ste 100
WtLntnglon, NC 28403
PRINCIPAL OFFICE STREET ADDRESS 430 Eastwood Rd, Ste 100
Wiimingion, NC 28403
MANAG$RSMIEMBERVORGANIZERS
(.5ee
"ack ed)
Name Name
Name
Tale Title
Title
Address Address
Address
City City
City
State Zip State
Zip
State Zip
CE IFICATIO ANNUAL PORT MUST BE COMPLETED BY ALL LIMITED LIABILITY COMPANIES
T-
RM M B S[(VD BY ANAGER/MEMBER DATE
I mmy t. lnreuex
TYPE OR PRINT NAME _ TYPE OR RINT TITLE
ANNUAL RrPORT FEE S200 MAIL TO Secretary of State • Corporations Division • Post Office Box 29523 • Raleigh, NC 276264)325

C200619800505
Please add the following Manager/Members to our Annual Report;
Edward Heath Clark Jimmy Humphrey Jim Mighore
Member/Manager Manager Manager
430 Eastwood Road 200 E Arlington Blvd Ste A 200 E Arlington Blvd Ste A
Wilmington, NC 28403 Greenville, NC 27858 Greenville, NC 27858
Sonya Culler Jason Prescott
Manager Manager
430 Eastwood Road 200 E Arlington Blvd Ste A
Wilmington, NC 28403 Greenville, NC 27858

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L E T T E R O F T R A N S M I T T A L
i o „
NCDENR
Date=,
8/21/06
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,Re ;
Osprey Landis
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Atm.e4
Paul Bartlett, PE
,Project No' !
106110 PEI
Peiare,`scndtno ❑ Originals 0 Print, ❑ Shop Drawings ® Calculations
he followin `;items JE1 Correspondence ® Plans ❑ Specifications ❑ Other as listed below
A
`11 1teY,
IpDv'g:iNo:F
3
i P ^'DesQanti
cIni pon
2
8/21/06
Stormwater Plans
2
8/21/06
Design and Stormwater Narrative
1
8/21/06
Original and Copy of SWU101
1
8/21/06
Original and Copy SWU 103 (4)
1
Deed Restrictions iq
1
SHWr Bonngs and Soils Report
$5000 check (#8285)
�J
RssuelStaWal ® For Approval ❑ As Requested ❑ Construction ❑ Bid ! I
❑ For Your Use ❑ For Review and Comment ❑ Approved as Noted ❑ See Remar CRWED
'ction',Taken ❑ No Exceptions Taken ❑ Make Corrections Noted ❑ Amend & Resubmit AUG 2 3 2006
❑ Rejected -See Remarks ❑ Approved as Submitted E]Other Oroq3
e'niarks
Signed' � �r
Tim Chnkscales,PE

I ern 3/�7 4z� /rt-,Z�
ACDENR
North Carolina Department of Environment and Natural Resources�_-
127 Cardinal Dnve, Wilmington NC 28405 [phone] FAX [phone]
Request for Express Permit Review 2 w, v, � ►°,.Ik we'
FILL-IN all Information below and CHECK required Permits) si Dsli e7
FAX or email to Cameron. eave mcmaiLnet along with a narrafto and ylcrnity map of the project location'.
Projects must be submitted by 9:00 A.M. of the review date, unless prior arrangements are made,
APPLICANT Name Mr Edward H Clark, Manager
Company Bill Clark Homes of Wilmington L C
Address 430 Eastwood Rd _ City/State Wilmington, NC Zip 28403 County Brunswick
Phone [phone] Fax [phone] Email
PROJECT NAME OSDrev Landi
PROJECT SYSTEMS) TRIBUTARY TO DUTCHMAN CREEK (STREAM NAME) Cane Fear _River BASIN
ENGINEERICONSU TANT Tim Clinkscales, PE
Company Paramoute Engineering, Inc
Address 127 Racine Drive Suite 202 City/State Wilmington Zip NC County 28403
Phone 9�L791-6707 Fax [phone] Email telinkscaleseparamoute-en, cocomm
State or National Environmental Policy Act (SEPA, NEPA) — EA or EIS Required ❑ Yes ❑ No
® STREAM ORIGIN Determination; 1# of stream calls, Stream Name Dutchman Creek
❑ STORMWATER ❑ Low Density ❑ High Density -Detention Pond ❑ High Density -Other
Wetlands MUST be addressed below ❑ Low Density -Curb & Gutter ® High Density -Infiltration ❑ Off Site
❑ COASTAL ❑ Excavation & Fill ❑ Bridges & Culverts ❑ Structures Information
MANAGEMENT ❑ Upland Development ❑ Manna Development ❑ Urban Waterfront
❑ LAND QUALITY Z Erosion and Sedimentation Control Plan with acres to be disturbed
WETLANDS (401) Wetlands on Property 0 Yes ❑ No Isolated Wetlands on Propertyye ❑ No
Check all that apply Wetlands Will Be Impacted ® Yes ❑ No Wetland Impacts 06 Ac sj
Wetlands Delineation has been completed 0 Yes ❑ No ❑ Buf v4fncted Acre(s)
USACOE Approval of Delineation completed ® Yes [] No
404 Application in process wAJSACOE ❑Yes []No I Permit received from USACE ❑Yes ❑No
401 Application required ❑Yes ❑ No If Yes, ❑ Regular ❑ Express
Additional fees, not to exceed 50% of the onginal Express Review permit application fee, may be charged for
subsequent reviews due to the Insufficiency of the permit applications.
For DENR use only
SUBMITTAL DATES Fee Split for multiple permits
SW $
CAMA $ _
LQS $
401 $ Total Fee Amount $
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Osprey Landing
Express Stormwater Narrative
June 20, 2006
Project Narrative:
Bill Clark Homes of Wilmington is proposing to develop a 67 80 acre residential development
(125 lots) in Brunswick County The site is located between Ro eb Ruark and NC Hwy 211
e-a e Town of Southport The site is currently wooded The seasonal high water level for
the basins was determined by Vincent Lewis on a field visit on June 6 2006 A copy of the
results have been sent to your officer`
The project is within a drainage basin that drains Dutchcreek (SA, HQW) All stg er will
be captured by a storm sewer system which will serve to convey the runoff into an infiltration
basin for treatment and storage The wet detentia �New
mover County Storm Water
and NCDENR`s design requirements
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06/20/2006 19 44 9107634517 LISLE ARCHITECTURE PAGE 04
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PRELIMINARY DFrSICTN - NOT FOR CONSTRUCTION

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INFILTRATION SITE VISIT REQUES
Name of the Project Osarey Landint
Location (attach a clear vicinity map) Right of Robert Ruark Drive in Southport at the
intersection -of Hwy 211 and Hwy a7
Street address, SR number, community, eic
Directions from the nearest major Intersection At the intersection of Hwy 87 and Hwy 211,
take a rights travel +1- 0,25miles on Robert Ruark Drive, Proiect on the right
Owner/Applicant Name Bill Clark Hoiles of Wilmington, LLC
Consultant Name. Tim Clinkscales, PE clo Paramounte Engineering, Inc
Consultant Contact Information Ph [phone], Fx [phone], Email
tclinMeales aramounte-eng com
Phone, fax email, etc
#1 #2__43 # #5 #6 #7 #8
Existing ground elev @basinitrench=
SHWT elev =
SHWT plus 2' (max bottom elev)_
Date/Time of Soils Investigation
Summary/Comments
(mau)
All proposed infiltration areas and existing, active utility lines located within the proposed basinitrench
must be marked and flagged If these areas are not flagged, the Soils Scientist reserves the right to
decline to do the investigation If the proposed infiltration system will be located to an area of existing
pavement and there is no open area nearby, equipment capable of breaking through the impervious
layer must be provided The soils investigation does not take the place of a soils report prepared by
an appropriate professional The Soils Scientist will only verify the soil conditions that are reported in
the Soils Report, and make a determination as to the suitability of the site to meet the infiltration
design requirements under NCAC 2H 1000, and assumes no liability should the system fail
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'-105/25/2006 16 5B
QcF c�FF
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9107634517
--
'3 _
LISLE ARCHITECTURE
L�
��D RI�RRD
PAGE 03
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HWY 87

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P-ARAMOUNT-
.
E N 0 1 N E 8 R I N 13,1 N C
FAX COVER SHEET
To Cameron Weaver
Affiliation NCDENR Infiltration Site Visit
Fax # [phone]
Number of pages (Including Coves) 2
Date May 25, 2006
From Tins Clinkscales
RE Infiltration Site Visit Request, Vicinity Map
Project No 06110 PEI
Comments
Cameron,
Enclose -do the request for setting a mfiltration test site visit for Vincent. Please let me
know the first avokble time for his time The project is located in Brunsvinck County near
the intersection of Hwy 211 and Hwy 87 If you have any questions, please feel free to call
me at 791-6707 11anks for your time and have a great days
Tun Cmkbcales
1 27 RACINE D R I V¢, a U I T E l O 2, w I L M I N G T G N, N C 9 s 0 9
1.1 H (9 1 O 1 7 9 1 0 7 a 7 F A X 1 9 1 P I 7 6 3 a 9 1 7
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1 ;
Ao-gwA1�Y7 f
NCDENR /
North Carolina Department of Environment and Natural Resources
127 Cardinal Drive, Wilmington NC 28405 [phone] FAX [phone]
Request for Express Permit Review
FILL-IN all information below and CHECK required Permit(s)
FAX or email to Cameron Weaver(&ncmail net along with a narrative and vicinity map of the project location.
Projects must be submitted by 9 00 A M of the review date, unless pnor arrangements are made
APPLICANT Name Mr Edward H Clark Manager
Company Bill Clark Homes of Wilmington, LLC
Address 430 Eastwood Rd City/State Wilmington, NC Zip 28403 County Brunswick
Phone [phone] Fax [phone] Email
PROJECT NAME Osorev Landin
PROJECT SYSTEM(S) TRIBUTARY TO DUTCHMAN CREEK (STREAM NAME) Cape Fear River BASIN
ENGINEER/CONSULTANT Tim_Clinkscales, PE
Company Paramoute Engineering, Inc
Address 127 Racine Drive Suite 202 City/State Wilmington -- Zip NC County 28403
Phone [phone] Fax [phone] Email tclinkscalesaparamoute-eng corn
State or National Environmental Policy Act (SEPA, NEPA) — EA or EIS Required ❑ Yes ❑ No
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
® STREAM ORIGIN Determination; 1# of stream calls, Stream Name Dutchman Creek
----------------------------------------------------------------------------___--------------------------------------------------------------------------------------
❑ STORMWATER ❑ Low Density ❑ High Density -Detention Pond ❑ High Density -Other
Wetlands MUST be addressed below ❑ Low Density -Curb & Gutter ® High Density -Infiltration ❑ Off Site
❑ COASTAL ❑ Excavation & Fill ❑ Bridges & Culverts ❑ Structures Information
MANAGEMENT ❑ Upland Development ❑ Marina Development ❑ Urban Waterfront
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
❑ LAND QUALITY ® Erosion and Sedimentation Control Plan with acres to be disturbed
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
WETLANDS (401) Wetlands on Property ® Yes ❑ No Isolated Wetlands on Property ❑ yes ❑ No
Check all that apply Wetlands Will Be Impacted ® Yes ❑ No Wetland Impacts 06 Acre(s)
Wetlands Delineation has been completed ® Yes ❑ No ❑ Buffers Impacted Acre(s)
USACOE Approval of Delineation completed ® Yes ❑ No
404 Application in process w/USACOE ❑Yes ❑No I Permit received from USACE ❑Yes ❑No
401 Application required ❑Yes ❑ No If Yes, ❑ Regular ❑ Express
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Additional fees, not to exceed 50% of the original Express Review permit application fee, may be charged for
subsequent reviews due to the insufficiency of the permit applications.
SUBMITTAL DATES
SW
CAMA
LOS
401
Fee Split for multiple permits
For DENR use only
Total Fee Amount $

�.
Osprey Landing
Express Stormwater Narrative
June 20, 2006
Project Narrative:
Bill Clark Homes of Wilmington is proposing to develop a 67 80 acre residential development
(125 lots) in Brunswick County The site is located between Robert Ruark and NC Hwy 211
near the Town of Southport The site is currently wooded The seasonal high water level for
the basins was determined by Vincent Lewis on a field visit on June 6, 2006 A copy of the
results have been sent to your office
The project is within a drainage basin that drains Dutchcreek (SA, HQW) All stormwater will
be captured by a storm sewer system which will serve to convey the runoff into an infiltration
basin for treatment and storage The wet detention pond has been designed to meet the New
Hanover County Storm Water Management Ordinance and NCDENR's design requirements

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