Master Declaration - River Bend Lake Hickory

Drawn by and return to: Gunpowder, LLC, c/o Pitts & Cooke Realty Co., 825 3rd Avenue, N.W., Hickory, N.C. 28601

MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR RIVER BEND OF LAKE HICKORY LOVELADY TOWNSHIP, CALDWELL COUNTY

January 15, 1999

INDEX

Recitals

Article I—Definitions
Article II—Property
1. Property Made Subject to Declaration
2. Additional Property
3. Additional Declarations
4. Merger or Consolidation
5. Changes to this Declaration or Additional or Supplementary Declaration Requiring Declarant’s Consent
Article III—Membership and Voting Rights in the Master Association; Membership and Voting Rights in an Association
1. Membership in the Master Association
2. Classes of Voting Master Association Members
3. Voting, Quorum and Notice Requirements for the Master Association
4. Membership in an Association
5. Classes of Members; Voting, Quorum and Notice Requirements
Article IV—Master Association Assessments
1. Covenant for Assessments
2. Purpose of Master Association Assessments
3. Payment and Amount of Master Annual Assessments; Due Dates
4. Amount of Master Annual Assessments
5. Payments by Declarant in Lieu of Master Annual Assessments
6. Special Assessments
7. Special Individual Assessments
8. Omission of Master Association
9. Collection Agent
10. Owner’s Personal Obligation for Payment of Assessments
11. Assessment Lien and Foreclosure
12. Reserves
13. Certificate Regarding Assessments
Article V—The Master Board
1. Members of the Master Board
2. Duties of the Master Board
3. Powers of the Master Board
4. Liability Limitations
5. Reserve Funds
Article VI—Property Rights in the Common Area
1. Owner’s Easements of Enjoyment
2. Owner’s Easements for Ingress and Egress
3. Title to Common Areas
4. Control of Common Areas
5. Extent of Owner’s Easement
6. Roadways
Article VII—Insurance; Repair and Restoration; Condemnation
1. Board of Directors
2. Premium Expense
3. Special Endorsements
4. General Guidelines
5. Insurance Proceeds
6. Insufficient Proceeds
7. Owner’s Personal Property
8. No Obligation to Insure Owner’s Property
9. Security
10. Condemnation
Article VIII—Restrictions
1. Restricted Actions on Common Areas
2. Restricted Actions by Owner’s; Waste
3. Signs
4. Nuisances
5. Unsightly or Unkempt Conditions
6. Rules of the Master Board
7. New Construction
8. Diligent Construction
9. No Subdivision of Lots
10. Piers, Docks, Boatslips, Sea Walls and Inland Boathouses
11. Parking
12. Governmental Requirements
13. Occupants Bound
Article IX—Architectural and Landscaping Control
1. General
2. Composition of Architectural Control Committee
3. Architectural and Landscape Guidelines
4. Definition of “Improvements”
5. Enforcement
6. Failure of the Architectural Control Committee to Act
7. Variances
8. Fees Required by Architectural Control Committee
9. No Construction Without Payment of Fees
10. Sewer Pump System
11. Club Improvements
12. Notices and Submittals
13. Separate Committee for Changes to Existing Improvements
14. Limitation of Liability
15. Miscellaneous
Article X—Easements and Other Rights
1. Easements and Cross-Easements on Common Areas
2. Use of Common Areas
3. Right-of-Way over Roadways
4. Right of the Master Association and Declarant to Enter Upon the Common Areas and Maintenance Areas
5. Easement for Encroachments
6. Easement Regarding Tennis or Other Recreational Use
7. Maintenance Areas
8. Easements for Installation, Maintenance and Repair of Sewer Pump System
9. Easements for Common Driveways
10. Utility and Drainage Easements
11. Irrigation Easements
12. Declarant’s Right to Assign Easements; Maintenance of Easement Areas
13. Easement Reserved for the Master Association, the Associations and Declarant
14. Additional Easements
15. No Merger of Easements
Article XI—Maintenance by Owners
1. Duty of Maintenance
2. Enforcement
Article XII—Rights of Mortgagees
1. Rights of Mortgagees
2. Books and Records
3. Payment of Taxes and Insurance Premiums
4. Names and Addresses of Mortgagees
5. Failure of Mortgagee to Respond
6. Assessment Lien Priority
Article XIII—The Club and Ancillary Facilities
1. Owners Covenants
2. The Club
3. Pets
4. Enforceability
Miscellaneous Provisions
1. Duration
2. Amendment
3. Enforcement
4. Severability of Provisions
5. Notice
6. Titles
7. No Exemption
8. Changes to Plans for the Project

MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR RIVER BEND OF LAKE HICKORY

THIS MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR RIVER BEND OF LAKE HICKORY (the “Declaration”), is made and entered into this 15th day of January, 1999, by Gunpowder, LLC, a North Carolina Limited Liability Company, hereinafter referred to as “Declarant”.

WITNESSETH:

Declarant is the owner and developer of that certain real property located in Caldwell County, North Carolina and more particularly described on Exhibit “A” attached hereto and incorporated herein by reference (the “Property”), which Property is being developed by Declarant as an exclusive residential community and club facility to be known as River Bend of Lake Hickory (the “Project”).

Declarant desires to provide for the preservation and enhancement of the property values, amenities and opportunities in the Project and for maintenance of the Property and improvements thereon, and to this end desires to subject the Property to the easements, covenants, conditions, restrictions, charges and liens hereinafter set forth and/or described.

Although Declarant contemplates that separate easements, covenants, conditions and restrictions (which may include easements, covenants, conditions and restrictions similar to those herein contained) may be imposed with regard to the various phases or sections of the Project and that separate owners’ associations may be established for some or all of the various phases of the Project, Declarant desires to impose pursuant hereto easements, covenants, conditions and restrictions upon all of the Property, with the understanding that, at the option of Declarant, additional restrictions may be imposed with regard to the various phases or sections of the Project.

NOW, THEREFORE, Declarant hereby subjects the Property to the easements, covenants, conditions, restrictions, charges and liens hereinafter set forth and hereby declares that (subject to certain rights of amendment, as hereinafter described) all of the Property shall be held, sold and conveyed subject to such easements, covenants, conditions, restrictions, charges and liens, all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of the Project. Subject to the above-described rights of Declarant, such easements, covenants, conditions, restrictions, charges and liens shall run with the Property, and be binding on all parties having or acquiring any right, title or interest in the property, or any part thereof and shall inure to the benefit of each owner of the Property or any part thereof.

ARTICLE I

DEFINITIONS

Section 1.1
The following terms when used in this Declaration, or any amendment or supplement hereto (unless the context shall otherwise require or unless otherwise specified herein or therein) shall have the following meanings:

“Additional Declaration” shall mean and refer to any Declaration of Covenants, Conditions and Restrictions filed in the Office of the Register of Deeds of Caldwell County, North Carolina with regard to a certain Phase, section or portion of the Property, as more particularly described in Section 2.3 hereof.

“Architectural Changes Committee” shall have the meaning set forth in Section 9.13 hereof.

“Architectural Control Committee” shall have the meaning set forth in Section 9.1 hereof.

“Architectural and Landscape Guidelines” shall have the meaning set forth in Section 9.3 hereof.

“Association” shall mean and refer to any one of the Owners’ associations which may be formed in connection with an Additional Declaration with regard to the ownership and/or maintenance of property within the various Phases or sections to be developed in the Project.

“Association Member” shall mean and refer to an Association which is a Master Association Member.

“Certificate of Occupancy” shall mean and refer to any required certification issued by the appropriate governmental authorities as a prerequisite to occupancy of any structure on the Property.

“Club Facilities” shall mean and refer to the recreational club to be known as the River Bend Club to be located on the Club Property.

“Club Owner” shall mean and refer to the entity owning the Club Property, which, as of the date hereof is the Gunpowder LLC.

“Club Property” shall mean and refer to that certain 3.185 acre parcel of land fronting on Gunpowder View Circle, River Bend Club Pointe and Lake Hickory [on which the Club will be developed and located], the boundary lines of which are shown on Plat Book 98, 18, Page 8,9, Caldwell County Registry, and shall contain the Club House facility, swimming pool, tennis courts and ancillary amenities and parking lot.

“Common Area or “Common Areas” shall mean and refer, singularly or collectively, as applicable, to all land, improvements and other properties which from time to time hereafter shall be deeded to or acquired by the Master Association for the common use and enjoyment of the Owners and the Occupants, including without limitation the Roadways, until accepted for maintenance by the North Carolina Department of Transportation of the Town of Granite Falls, the Water Access Lot and that property identified and designated as “Common Area” on any recorded Plat or Plats of the Property or any part of it.

“Declarant” shall mean and refer to Gunpowder, LLC, its successors in title and assigns, provided that any such successor-in-title or assign shall acquire for the purpose of development and/or sale all or substantially all of the remaining undeveloped or unsold portions of the Property and, provided further, that in the instrument of conveyance to any such successor-in-title or assign, such successor-in-title or assign is designated as the “Declarant” hereunder by the grantor of such conveyance, which grantor shall be the “Declarant” hereunder at the time of such conveyance. Provided further, that upon such designation of such successor Declarant, all rights, duties and obligations of the former Declarant in and to such status as “Declarant” hereunder shall cease, it being understood that as to all of the Property, there shall be only one person or legal entity entitled to exercise the rights and powers of the “Declarant” hereunder at any time.

“Declaration” shall mean and refer to this master declaration of Covenants, Conditions and Restrictions for River Bend of Lake Hickory as it may be amended and/or supplemented from time to time as herein provided.

“DOT” shall mean and refer to the North Carolina Department of Transportation or any successor agency thereto.

“Dwelling Unit” shall mean and refer to a portion of the Project, whether developed or undeveloped, intended for development, use and occupancy as an attached or detached dwelling for a single family. By way of illustration, but not limitation, each single-family, detached house on a Lot, each patio home and each cluster home shall constitute a separate Dwelling Unit. Each Lot or Tract containing vacant land intended for development or land on which improvements are under construction shall be deemed to contain one (1) Dwelling Unit. Upon issuance of one or more Certificate(s) of Occupancy for a structure or structures constructed on a Lot or Tract, however, the Lot or Tract on which such structure(s) are constructed shall be deemed to have the number of Dwelling Unit as Certificates of Occupancy issued for such structure(s). The Club Property does and shall be deemed to contain no Dwelling Units.

“Entrance Monument Easements” shall mean and refer to the easements reserved by Declarant and granted to the Master Association in Section 10.7 hereof over, across and under certain areas of the Property, for the installation and maintenance of entrance monuments for the Project, all as more particularly described in Section 10.7.

“Extended Property Lines” shall mean and refer to the conceptual extension into Lake Hickory of actual property lines as contemplated by the applicable zoning regulations governing in-water improvements for waterfront lots.

“Improvement” shall have the meaning as set forth in Section 9.4 hereof.

“Lake” shall mean and refer to Lake Hickory.

“Landscape Easements” shall mean and refer to the easements reserved by Declarant and granted to the Master Association in Section 10.7 hereof over, across and under certain areas of the Property, for the installation, maintenance, repair and removal of landscaping and landscaping amenities, all as more particularly described in Section 10.7.

“Lot” shall mean and refer to any numbered or lettered tract of land shown on any Plat which is a part of the Property and which shall be restricted for such uses as are consistent with this Declarant and any other restrictions covering the area wherein the tract is located. No tract of land shall become a “Lot” as that work is used herein until a Plat of the area on which the same is located is recorded in the Office of the Register of Deeds of Caldwell County, North Carolina. In no event shall the Club Property or any portion thereof be considered a Lot.

“Maintenance Areas” shall have the meaning as set forth in Section 10.7 hereof.

“Master Annual Assessments” shall have the meaning as set forth in Section 4.3 hereof.

“Master Articles shall mean and refer to the Articles of Incorporation of the Master Association, a copy of which is attached hereto as Exhibit “B”, as the same may be amended from time to time.

“Master Association” shall mean and refer to the River Bend of Lake Hickory Owners Association, Inc., a North Carolina non-profit corporation, which Master Association has been established and exists to govern the ownership and maintenance of the Project and the enforcement of the provisions of the Master Declaration.

“Master Association Member” shall mean and refer to any Person who is a member of the Master Association as set forth in Section 3.1 hereof. Master Association Members shall include the Association Members, Declarant for so long as Declarant owns any part of the Property and all Owners of Lots or other portions of the Property not subject to the jurisdiction of an Association.

“Master Bylaws” shall mean and refer to the Bylaws of the Master Association, a copy of which is attached hereto as Exhibit “C”, as they may now or hereafter exist.

“Master Declaration” shall mean and refer to the Master Declaration of Covenants, Conditions and Restrictions for River Bend of Lake Hickory executed by Declarant and recorded in Book 1249, Page 752, Caldwell County Public Registry as the same may be amended from time to time. The Master Declaration imposes certain easements, conditions and restrictions on the Project, which includes the Property, and accordingly restricts the Property in addition to the covenants, conditions and restrictions contained in this Declarant. Any capitalized terms not otherwise defined in this Declarant shall have the meanings given to them in the Master Declaration.

“Member” shall mean and refer to each Owner who is a member of an Association formed with regard to a Phase, section or portion of the Property in which such Owner’s property is located, all as more specifically provided in Section 3.4 hereof.

“Mortgage” shall mean and refer to any mortgage or deed of trust constituting a first lien on a Lot, Tract, or Dwelling Unit.

“Mortgagee” shall mean the owner and holder of a Mortgage at the time such term is being applied.

“Occupant” shall mean and refer to any person occupying all or any portion of a Lot, Tract of the Property for any period of time, regardless of whether such person is a tenant of the Owner of such Lot, Tract or portion of the Property.

“Owner” shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot, Tract or other portion of the Property, but excluding those having such interest merely as security for the performance of an obligation.

“Person” shall mean and refer to any natural person, corporation, joint venture, partnership (general or limited), association, trust or other legal entity.

“Phase” shall mean and refer to any phase, section or portion of the Property for which a separate Plat or Plats are recorded in the Office of the Register of Deeds of Caldwell County, North Carolina.

“Plat” shall mean and refer to any plat of the Property or any part of it which has been recorded in the Office of the Register of Deeds of Caldwell County, North Carolina.

“Project” shall mean and refer to the residential development to be known as River Bend, into which the Property is being developed.

“Property” shall mean and refer to that certain real property located in Caldwell County, North Carolina and more particularly described on Exhibit “A” attached hereto and incorporated herein by reference, as well as such additional property as may be made subject to the provisions of this Declarant pursuant to the provisions of Section 2.3 hereof.

“Roadways” shall mean and refer to the roads, streets, entrance ways, and cul-de-sacs in the Subdivision, as shown on the Plats, and any other roads, streets, entrance ways and cul-de-sacs on the Property, all to be privately maintained by the Master Association or an Association until accepted for maintenance by the DOT or the Town of Granite Falls, as set forth in Section 6.6 hereof.

“Sewer Pump System” shall mean the sewer pumps, sewer lines and other improvements on Lots or Tracts which are maintained by the Master Association for the purpose of pumping sewage into the Granite Falls Utility Department sewage system.

“Supplementary Declaration” shall mean and refer to any supplementary Declaration of Covenants, Conditions and Restrictions filed in the office of the Register of Deeds of Caldwell County, North Carolina to bring additional property within the coverage of this Declaration and the jurisdiction of the Master Association, as more particularly described in Section 2.3 hereof.

“Tract” shall mean and refer to any separate and identifiable tract of land which is a part of the Property, whether or not shown on a Plat, which is not a Lot or a part of the Club Property.

“Turnover Date” shall have the meaning set forth in Section 3.2 hereof.

“Water Access Lot” shall mean and refer to any tract or tracts of land which are part of the Property and shown on a Plat or Plat(s) as “Water Access Lot.”

ARTICLE II

PROPERTY

Section 2.1 Property Made Subject to this Declaration
The Property is hereby made subject to this Declaration and the Property shall be owned, held, leased, transferred, sold, mortgaged and/or conveyed by Declarant, the Master Association, any Association, each Owner and each party owning record title to any of the Property subject to this Declaration and the controls, covenants, conditions, restrictions, easements, development guidelines, charges and liens set forth in this Declaration.

Section 2.2 Additional Property
Declarant shall have the right, at its election without the consent of any Owner or Owners, to bring within the coverage of this Declaration and the jurisdiction of the Master Association any additional property. Such additions authorized hereby shall be made by filing of record in the Office of the Register of Deeds for Caldwell County, North Carolina, Supplementary Declarations of Covenants, Conditions and Restrictions with respect to such additional property. Each Such Supplementary Declaration shall extend the scheme of this Declaration and the jurisdiction of the Master Association to such additional property and thereby subject such additional property to assessment for their just share of the Master Association’s expenses. Such Supplementary Declarations may contain such complimentary additions and modifications of the covenants, conditions and restrictions contained in this Declaration as may be necessary to reflect the different character of the additional property and as are not inconsistent with the provisions of this Declaration. Nothing contained in this Section 2.2, however, shall be construed to obligate Declarant to bring any additional property within the coverage of this Declaration.

Section 2.3 Additional Declarations
In addition to the controls, covenants, conditions, restrictions, easements, development guidelines, charges and liens set forth in this Declaration, Declarant shall have the right, at its election without the consent of any Owner or Owners, to subject any Phase, section or portion of the Property owned by Declarant to additional controls, covenants, conditions, restrictions, easements, development guidelines, charges and liens, by filing an Additional Declaration in the Office of the Register of Deeds of Caldwell County covering only such Phase, section or portion of the Property. Such and Additional Declaration may or may not provide for the establishment of an Association to govern the ownership and/or maintenance of the Property affected by and the enforcement of the provisions of such Additional Declaration. Whether or not an Association is formed pursuant to such Additional Declaration, the Master Association shall have the right and authority to enforce all controls, covenants, conditions, restrictions, easements, development guidelines, charges and liens imposed by such Additional Declaration and any amendments thereto, whether or not such right and authority is expressly provided for in such Additional Declaration.

Section 2.4 Merger or Consolidation
Upon any merger or consolidation of an Association with another Association, the properties, rights and obligations of the Association may be transferred to another surviving or consolidated Association or, alternatively, the properties, rights and obligations of another Association may be added to the property, rights and obligations of such Association as the surviving corporation pursuant to a merger. The surviving or consolidated Association shall be considered an Association and shall administer the terms and provisions of this Declaration (to the extent they relate to the Phase(s) or section(s) of the Property over which such Association has jurisdiction) and the applicable Additional Declarations affecting the portions of the Property in the jurisdiction of such Association, together with the covenants and restrictions established upon any other properties, as one scheme. No such merger or consolidation, however, shall effectuate a revocation, change or addition to the terms and provisions of this Declaration or any Additional Declaration pertaining to the Property or any portion thereof except as specifically provided in this Declaration.

Section 2.5 Changes to this Declaration or Additional or Supplementary Declarations Requiring Declarant’s Consent
Notwithstanding anything contained herein to the contrary, it is expressly understood and agreed that, so long as Declarant owns any part of the property, the prior written consent of Declarant shall be required for any parties to modify, change and/or amend, in whole or in part, the terms and provisions of this Declaration, any Supplementary Declaration and/or any Additional Declaration or to impose new or additional covenants, conditions, restrictions or easements on any part of the Property.

ARTICLE III

MEMBERSHIP AND VOTING RIGHTS IN THE MASTER ASSOCIATION; MEMBERSHIP AND VOTING RIGHTS IN AN ASSOCIATION

Section 3.1 Membership in the Master Association
Each and every Association shall automatically become and be a Master Association Member upon the first conveyance by Declarant to an Owner of a Lot or Tract within the Phase or section of the Property over which such Association has jurisdiction. In addition, for so long as Declarant owns any part of the Property, Declarant shall be a Master Association Member. In addition, with respect to Lots or Tracts not subject to the jurisdiction of an Association, all Owners of such Lots or Tracts shall be Master Association Members; provided, however, that the Club Owner shall not be a Master Association Member. The Master Bylaws shall control with respect to the determination of the proper exercise of voting rights with respect to portions of the Property owned by two (2) or more undivided interests.

Section 3.2 Classes of Voting Master Association Members
The Master Association shall have two classes of voting membership:

Class I. Class I Master Association Members with the exceptions of Declarant. Class I Master Association Members shall be entitled to one (1) vote for each Dwelling Unit located on the Lot or Tract owned by such Master Association Member, or, in the case of an Association Member, one (1) vote for each Dwelling Unit located on the Phase, section or portion of the Property within the jurisdiction of such Association Member.

Class II. The Class II Master Association Member shall be Declarant. The Class II Master Association Member shall be entitled to ten (10) votes for each Dwelling Unit located on the property in the Project owned by Declarant.

Notwithstanding anything contained herein to the contrary, the Class II Master Association Membership shall cease and be converted to a Class I Master Association. Membership on the earlier to occur of (a) the date on which the Declarant no longer owns any part of the Property; (b) the date Declarant shall elect, in its sole discretion, that its Class II membership cease and be converted to Class I membership (which election may be made, if at all, upon Declarant giving written notice of the election to the Master Board); or (c) January 1, 2020. After the Turnover Date and for so long as Declarant owns any part of the Property, Declarant shall be a Class I Master Association Member.

Section 3.3 Voting, Quorum and Notice Requirements for the Master Association
Except as may be otherwise specifically set forth in this Declaration or in the Master Articles or Master Bylaws, the vote of a majority of all votes entitled to be cast by all classes of the Master Association Members, present or represented by legitimate proxy at a legally constituted meeting at which a quorum is present, shall be the act of the Master Association Members. The number of votes present at a meeting of the Master Association Members that is properly called and that will constitute a quorum shall be as set forth in the Master Bylaws.

Notice requirements for all actions to be taken by the Master Association Members shall be as set forth herein or in the Master Bylaws. Notwithstanding the above, the affirmative vote of no less than two-thirds (2/3) of all votes entitled to be cast by the Master Association Members shall be required in order for the Master Association to (1) file a complaint, on account of an act or omission of Declarant, with any governmental agency which has regulatory or judicial authority over the Project or any part thereof; or (2) assert a claim against or sue Declarant.

Section 3.4 Membership in an Association
Wherever an Association shall have been established with respect to any Phase or section of the Property in connection with an Additional Declaration, each and every Owner of a Lot, Tract or Dwelling Unit within such Phase or Section of the Property shall automatically become and be a Member of such Association.

Section 3.5 Classes of Members: Voting, Quorum and Notice Requirements
The designation of classes of members of an Association and provisions regarding voting, quorum and Notice requirements and other applicable terms relating to membership in an Association which shall be included in the Additional Declaration for the portion of the Property over which such Association has jurisdiction and/or in the Articles of Incorporation and/or Bylaws of such particular Association.

ARTICLE IV

MASTER ASSOCIATION ASSESSMENTS

Section 4.1 Covenant for Assessments
Declarant, for each Lot or Tract owned by it after the Turnover Date, and each Owner of any Lot or Tract other than Declarant, by acceptance of a deed or other conveyance doc creating in such Owner the interest required to be deemed an Owner, and shall be deemed to covenant and agree to pay the Master Association: (1) annual assessments or charges, such assessments to be fixed, established and collected from time to time as herein provided; (2) special assessments for capital improvements and other purposes, such assessments to be fixed, established and collected from time to time as herein provided; and (3) special individual assessments levied against individual Owners, as may be fixed, established and collected from time to time as herein provided. The assessments described in (1), (2) and (3) of this Section 4.1 (the “Assessments”), together with interest thereon, late charges, attorneys’ fees, court costs and other costs of collection thereof, as herein provided, shall be a charge on the land and shall be a continuing lien upon each Lot or Tract, as the case may be, against which each such Assessment is made and shall also be the personal obligation of the Owner, at the time when the Assessment fell due, of the Lot or Tract, as the case may be, against which such Assessment is made.

No Owner may exempt himself from liability from such Assessment or waive or otherwise escape liability for the Assessments by non-use of the Common Area or abandonment of his property. The personal obligation to pay any such Assessment, together with interest thereon, attorney’s fees, late charges, court costs and other costs of collection thereof, as herein provided, shall pass to the successors in title of such Owner whether or not expressly assumed in writing by such successors; provided, however that such personal obligation to pay Assessments and other costs and charges shall not pass to Mortgagees or trustees under Mortgages of such Owner who succeed to the title of such Owner.

Section 4.2 Purpose of Master Association Assessments
The assessments levied by the Master Association shall be used for the purposes of the carrying out the duties of and exercising the rights and powers of the Master Association pursuant to the terms and provision hereof and promoting the enjoyment and welfare of the Project, and, in particular, but without limitation, for the following:

Until accepted for maintenance by the DOT or the Town of Granite Falls, maintenance of the Roadways to the standard of maintenance specified in Section 6.6 below;
Maintenance of any other Common Areas and Maintenance Areas within the Project to the extent repair and maintenance thereof shall not have been delegated to or required of an Association having jurisdiction thereover;
Maintenance and repair of all sewer pumps, sewer lines and other improvements in connection with the Sewer Pump System; until accepted for maintenance by the Town of Granite Falls or another governmental agency.
Payment of all Additional Declaration valorem taxes levied against the Common Areas and any other property owned by the Master Association;
Payment of all premiums on all insurance carried by the Master Association pursuant hereto or pursuant to the Master Bylaws;
Payment of all legal, accounting and other professional fees incurred by the Master Association in carrying out its duties as set forth herein or in the Bylaws, including all costs and expenses of the Architectural Control Committee;
Carrying out the powers and duties of the Master Board, as more particularly described in Article V hereof;
Carrying out all other purposes and duties of the Master Association and the Architectural Control Committee as stated in the Master Articles, the Master Bylaws and in this Declaration;
Paying for the cost of rubbish removal services to be provided to the Lots and Tracts; and
Maintenance of any Maintenance Areas located outside the Project, as more specifically described in Section 10.7 hereof.

Section 4.3 Payment of Master Annual Assessments; Due Dates
Each Owner of a Lot or Tract shall pay to the Master Association the annual assessments levied by the Master Association (the “Master Annual Assessments”) as hereinafter set forth.

The Master Annual Assessment provided for herein as to any Lot or Tract shall commence as of the date of the conveyance by Declarant to an Owner other than Declarant of such Lot or Tract. The Master Annual Assessment for the first year in which a Lot or Tract is subject thereto shall be prorated based upon the number of days remaining in the calendar year from the date of such conveyance.

The Master Annual Assessment provided for herein as to the Club Property shall commence as of January 1, 2000.

Subject to the provisions of (a) and (b) above, the Master Annual Assessments as to each Lot or Tract shall be due and payable in equal installments on a monthly basis commencing on January 1 of each calendar year. Provided that the Master Board, without the approval of any Master Association Member or Owner, may provide that the Master Annual Assessments be paid in installments due less frequently than monthly, and thereafter the Master Annual Assessments shall be paid in such manner and on such dates as may be fixed by the Master Board, in its sole discretion.

Section 4.4 Amount of Master Annual Assessments
It shall be the duty of the Master Board annually to prepare a budget (the “Annual Budget”) covering the estimated costs of operating the Master Association during the coming year, taking into consideration, among other things, the then current development and/or maintenance costs to be borne by the Master Association, estimated increases in development and/or maintenance costs and the future needs of the Master Association (which may include a reasonable contingency fund).

The Annual Budget has been set by Declarant and, based upon such Annual Budget, the Master Annual Assessments until December 31, 1999, shall be Three Hundred Sixty and no/100 Dollars ($360.00) per year per Dwelling Unit for any Lot or Tract owned by any Owner other than Declarant (i.e. Thirty Dollars ($30.00) per month). The Master Annual Assessments for each and every calendar year thereafter shall be set by the Master Board in accordance with (c) and (d) below.

For calendar year 2000 and thereafter, the Master Board, by a vote in accordance with the Bylaws, without a vote of the Master Association Members, may increase the Master Annual Assessments to be levied against each Dwelling Unit by a maximum amount equal to the greater of (A) ten percent (10%) of the previous year’s Master Annual Assessment, or (B) the increase in the CPI for the previous calendar year.

If the Master Annual Assessment to be levied against each Dwelling Unit is not increased by the maximum amount permitted under the terms of this Section 4.4 (c), the difference between any actual increase which is made and the maximum increase permitted for that year shall be computed and the Master Annual Assessment to be levied against each Dwelling Unit may be increased by that amount in a future year, in addition to the maximum increase permitted under the terms of the preceding sentence for such future year, by a vote of the Master Board, without a vote of the Master Association Members. Provided, however, that after the Turnover Date the Master Annual Assessment to be levied against each Dwelling Unit may be increased without limitation if such increase is approved by a vote of no less than a majority of all votes entitled to be case by Master Association Members, taken at a duly held meeting of such Master Association Members in accordance with the Master Bylaws.

The Master Board shall fix the amount of the Master Annual Assessment as to each Dwelling Unit and the Club Property for any calendar year and shall send written notice of the amount of and due date of each installment of such Master Annual Assessment to each Owner, at least thirty (30) days prior to January 1 of such calendar year.

Should any Lot or Tract be conveyed by Declarant during a calendar year beginning prior to the Turnover Date, then the purchaser of such Lot or Tract shall pay to the Master Association at closing the amount of the Master Annual Assessment for the installment period in which the closing occurs on such Lot or Tract, prorated based upon the number of days remaining in such installment period. Should any Lot or Tract be conveyed by Declarant during a calendar year beginning after the Turnover Date, or be conveyed by any Owner other than Declarant during any calendar year, then the Master Annual Assessment applicable to such Lot or Tract shall be prorated between the buyer and seller thereof as of the date of closing of such conveyance.

Section 4.5 Payments by Declarant in Lieu of Master Annual Assessments
Notwithstanding the provisions of this Article IV, for calendar years beginning prior to the Turnover Date, in lieu of the payment of Master Annual Assessments, Declarant shall be responsible for paying for each such calendar year that portion of the annual expenses of the Master Association (including any reserves) which exceeds the total amount of the Master Annual Assessments paid by the Owners other than Declarant. For calendar years beginning after the Turnover Date, Declarant shall be responsible for paying Master Annual Assessments in the same manner as any other Owner of a Lot or Tract located in the Project, as more particularly described in this Article IV.

Section 4.6 Special Assessments
In addition to the Master Annual Assessments described in Sections 4.3 and 4.4 above, the Master Board, without a vote of the Master Association Members, may levy in any assessment year or years a special assessment or assessments (“Special Assessments”) for the purpose of defraying, in whole or in part, any costs incurred by the Master Association which are not paid for out of funds on hand in the Master Association or out of the Master Annual Assessments collected by the Master Association. Such costs may include, but shall not be limited to, the costs of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area or Maintenance Areas, including fixtures and personal property related thereto, and the Roadways serving the Project. Notwithstanding the above, all fees and costs incurred by the Master Association in exploring or waging a complaint or suit against Declarant must be paid for out of a Special Assessment must be approved by a vote of the Master Association Members entitled to cast no less than two-thirds (2/3) of all votes entitled to be cast by the Master Association Members. The amount of any Special Assessment levied against the Club Property shall not be greater than ten percent (10%) of the total Special Assessment to be levied against the Property. Special Assessments shall be assessed pursuant to this Section 4.6 against the Owners of Lot or Tract owned by each Owner. Provided, however, that Declarant shall not be obligated to pay any Special Assessments on Lots or Tracts owned by Declarant except with Declarant’s prior written approval. The due date of any Special Assessment levied pursuant to this Section 4.6 shall be fixed in the Master Board resolution authorizing such Special Assessment. Upon the establishment of a Special Assessment, the Master Board shall send written notice of the amount and due date of such Special Assessment to each Owner, at least thirty (30) days prior to the date such Special Assessment is due.

Section 4.7 Special Individual Assessments
The Master Board may levy special assessments against individual Owners (“Special Individual Assessments”), (1) for the purpose of paying for the costs of any construction, reconstruction, repair or replacement of any damaged component of the Common Areas and Maintenance Areas, including the Roadways, occasioned by the acts of Owner(s) and not the result of ordinary wear and tear of (2) for payment of fines, penalties or other charges imposed against an individual or separate Owner relative to such Owner’s failure to comply with the terms and provisions of this Master Declaration, the Master Bylaws or any rules or regulations promulgated hereunder, including without limitation, penalties assessed by the Architectural Control Committee pursuant to the Architectural and Landscape Guidelines, reimbursement to the Architectural Control Committee for any sums it expends on an Owner’s behalf pursuant to the Architectural and Landscape Guidelines, and reimbursement to the Master Association for all expenses incurred in connection with the enforcement of the provisions of Article XI. Provided, however, that Declarant shall not be obligated to pay any Special Individual Assessment except with Declarant’s prior written approval. The due date of any Special Individual Assessment levied pursuant to this Section 4.7 shall be fixed in the Master Board resolution authorizing such Special Individual Assessment. Upon the establishment of a Special Individual Assessment, the Master Board shall send written notice of the amount and due date of such Special Individual Assessment to the affected Owner(s) at least thirty (30) days prior to the date such Special Individual Assessment is due.

Section 4.8 Omission of Master Association
The omission of the Master Board, before the expiration of any year, to fix the Master Annual Assessments hereunder for that or the next year, shall not be deemed to waive or modify in any respect any of the provisions of this Declaration, or to release any Owner from the obligation to pay the assessment due from such Owner for that or any subsequent year, and the Master Annual Assessments fixed for the preceding year shall continue until the new Master Annual Assessments are fixed.

Section 4.9 Collection Agent
At the option of the Master Board, a representative of the Master Association designated by the Master Board may act as collection agent for any and all Assessments (whether Master Annual Assessments, Special Assessments or Special Individual Assessments) imposed by the Master Association against the Owners.

Section 4.10 Owner’s Personal Obligation for Payment of Assessments
The Master Annual Assessments, Special Assessments and Special Individual Assessments provided for herein shall be the personal and individual debt of the Owners (as of the due date of the applicable Assessment payment) to which such Assessments relate. No owner may exempt himself from liability for such Assessments by non-use of his property of the Common Area or otherwise. In the event of default in the payment of any such Assessment, the defaulting Owner shall be obligated to pay interest at the rate of either percent (18%) per annum of the highest rate permitted by law, whichever is less, on the amount of the Assessment from the due date thereof until the date such Assessment and interest is paid, together with all costs and expenses of collection, including reasonable attorneys’ fees. In addition, the delinquent Owner shall also pay such late charges as may have been theretofore established by the Master Board to defray the costs arising because of late payment.

Section 4.11 Assessment Lien and Foreclosure
All sums assessed in the manner provided in this Article IV by unpaid shall, with interest and late charges as provided in this Article IV and the cost of collection, including reasonable attorney’s fees, become a continuing lien and charge on the portion of the Property and improvements thereon owned by the defaulting Owners as of the Assessment due date and shall bind such property and improvements then in the hands of the Owner, and the defaulting Owner, his heirs, devisees, personal representatives, successors and assigns. The aforesaid lien shall be superior to all other liens and charges against such property and the improvements thereon, including the lien of any Mortgage. Provided, however, that the Master Board shall have the power to subordinate the aforesaid assessment lien to the lien of any Mortgage or to any other lien, and such power shall be entirely discretionary with the Master Board. To evidence the aforesaid assessment lien, the Master Board may prepare a written notice of assessment lien setting forth the amount of the unpaid indebtedness, the name of the Owner of the property and improvements thereon covered by such lien and a description of the property. Such notice shall be signed by one of the officers of the Master Association and shall be filed of record in the Office of the Clerk of Superior Court of Caldwell County, North Carolina. Such lien for payment of assessments shall attach with the priority above set forth from the date that such payment becomes delinquent and may be enforced by the foreclosure of the defaulting Owner’s property and improvements thereon by the Master Association in like manner as a deed of trust with power of sale on real property under Article 2A of Chapter 45 of the North Carolina General Statutes subsequent to the recording of a notice of assessment lien as provided above, of the Master Association may institute suit against the Owner personally obligated to pay the assessments and/or for foreclosure of the aforesaid lien judicially or may seek any other available remedy or relief. In any foreclosure proceeding, whether judicial or non-judicial, or in any lawsuit, the Owner shall be required to pay the costs, expenses, and reasonable attorney’s fees incurred by the Master Association. The Master Association shall have the power to bid on the Owner’s property and improvements at foreclosure or other legal sale and to acquire, hold, lease, mortgage, convey or otherwise deal with the same.

Section 4.12 Reserves
The Master Annual Assessments shall, as determined by the Master Board, include a reasonable amount as reserves for the future periodic maintenance, repair and/or replacement of all or a portion of the Common Areas or Maintenance Areas. All amounts collected as reserves, whether pursuant to this Section 4.12 or otherwise, shall be deposited by the Master Association in a separate bank account to be held in trust for the purposes for which they were collected and are to be segregated from and not commingled with any other funds of the Master Association. Assessments collected as reserves shall not be considered to be advance payments of Master Annual Assessments.

Section 4.13 Certificate Regarding Assessments
The Master Association shall, upon demand and for a reasonable charge, furnish a certificate signed by an officer of the Master Association setting forth whether the assessments on a specified Lot or Tract have been paid. A properly executed certificate of the Master Association as to the status of assessments on a Lot or Tract is binding upon the Master Association as of the date of its issuance.

ARTICLE V

THE MASTER BOARD

Section 5.1 Members of the Master Board
So long as Declarant owns any Lot, Tract or other portion of the Property, the members of the Master Board shall be appointed by Declarant. The number of members of the Master Board shall be as set forth in the Master Bylaws. At such time as Declarant owns no Lot, Tract or other portion of the Property, then the members of the Master Board shall thereafter be elected by a vote of the Master Association Members in accordance with the Master Bylaws. Provided, however, that Declarant may choose, in its sole discretion, to relinquish its right to appoint the members of the Master Board prior to the time that it owns no portion of the Property, whereupon the Master Association Members shall thereafter elect the members of the Master Board in accordance with the Master Bylaws.

Section 5.2 Duties of the Master Board
The Master Board, for the mutual benefit of the Master Association Members and the Owners, shall have the following specific duties:

To maintain or cause to be maintained the Common Areas and Maintenance Areas, including, but not limited to, planting, mowing, pruning, fertilizing, preserving and replacing the landscaping and the upkeep and maintenance of sidewalks and other improvements in the Common Areas and Maintenance Areas, and the upkeep and maintenance of associated improvements, including irrigation systems.

Until accepted for maintenance by the DOT or the Town of Granite Falls, to won and maintain or cause to be maintained the Roadways to the standard of maintenance (if one is ascertainable) which would be required by the DOT before it would accept such Roadways for maintenance; to the extent not maintained by the DOT or the Town of Granite Falls, to maintain or cause to be maintained swales and medians of the Roadways;

To the extent not maintained by a governmental authority, to maintain or cause to be maintained any sidewalks in the Project;

To make available to each Master Association Member within sixty (60) days after the end of each year an annual report of the Master Association and, upon resolution adopted by the Master Board or upon the written request of the Master Association Members holding at least three-fourths (3/4th) of the eligible votes of the Master Association at such time, to have such report audited (at the expense of the Master Association) by an independent certified public accountant, which audited report shall be made available to each Master Association Member within thirty (30) days after completion;

To the extent not provided by a governmental authority, to pay for the cost of electricity for the street lights to be located in the Project and the electricity serving any of the Common Areas and Maintenance Areas;

To cause to be kept a complete record of all its acts and corporate affairs;

To supervise all officers, agents and employees of the Association, and to see that their duties are properly performed;

As more fully provided in this Declaration:

To fix the amount of the Master Annual Assessments;

To send written notice of the Master Annual Assessments to each owner,

To issue, or to cause an appropriate officer to issue, upon demand by any person, a certificate setting forth whether or not any Assessment has been paid. (a reasonable charge may be made by the Master Board for the issuance of these certificates. If a certificate states an assessment has been paid, such certificate shall be conclusive evidence of such payment.);

To procure and maintain adequate liability insurance covering the Master Association and the directors and officers thereof and adequate hazard insurance on the property owned by the Master Association;

Subject to Declarant’s right to appoint the Architectural Control Committee, to appoint the Architectural Control Committee, all as more particularly provided in Article IX of this Declaration;

To enter into agreements or contracts with persons for rubbish removal services to be provided to all the Lots and Tracts in the Property, and to pay for such agreements or contracts; and

To enter into agreements or contracts with persons for the installation, maintenance and repair of sewer pumps and sewer lines located on Lots and Tracts in connection with the Sewer Pump System, and to pay for such agreements or contracts.

Section 5.3 Powers of the Master Board
The Master Board, for the mutual benefit of the Master Association Members and the Owners, shall have the following specific powers and rights (without limitation of other powers and rights such Master Board may have);

To enter into agreements with the appropriate governmental authorities to enable the Master Association to improve and maintain the Common Areas and Maintenance Areas, and to amend them from time to time;

To make reasonable rules and regulations for the use and operation of the Common Areas and Maintenance Areas or portions thereof;

To make reasonable rules and regulations for the use and operation of the Common Areas and Maintenance Areas, and to amend them from time to time;

To enter into agreements or contracts with insurance companies with respect to insurance coverage relating to the Common Areas and Maintenance Areas, and to amend them from time to time;

To enter into agreements or contracts with insurance companies with respect to insurance coverage relating to the Common Areas and Maintenance Areas and/or the Master Association;

Subject to the affirmative vote of no less than a majority of all votes present, in person or by proxy, at a duly held meeting of the Master Association Members at which a quorum is present, all in accordance with the Master Bylaws, to borrow funds to pay costs of operation of the Master Association, which borrowings may be secured by assignment or pledge of rights against delinquent Owners or by liens on other Master Association assets, if the Master Association Members see fit; provided, however, that until such time as Declarant no longer owns any portion of the Property, the Master Board may not mortgage any portion of the Common Area without the prior written approval of Declarant;

To enter into contracts, maintain one or more bank accounts, and, generally, to have all the powers necessary or incidental to the operation and management of the Master Association;

Subject to the provision of Section 3.3 hereof, to sue or defend in any court of law in behalf of the Master Association;

To levy assessments in accordance with the provisions of Article IV hereof;

To adjust the amount, collect, and use any insurance proceeds to repair damage or replace lost property of the Master Association and if proceeds are insufficient to repair damage or replace lost property, to assess the Owners in proportionate amounts to cover the deficiency;

To exercise for the Master Association all powers, duties and authority vested in or delegated by this Declaration, the Master Bylaws, or the Master Articles to the Master Association and not reserved to the Master Association Members or Declarant by other provisions of this Declaration, the Master Bylaws or the Master Articles;

To declare the office of a member of the Master Board to be vacant in the event such member be absent, without the consent of the Master Board, from three (3) consecutive regular meetings of the Master Board;

To employ a manager or firm to manage the affairs and property of the Master Association, to employ independent contractors or such other employees as the Master Board may deem necessary, and to prescribe their duties and to set their compensation;

To enter into agreements or contracts with builders regarding the construction of Improvements on Lots use only a builder approved by the Master Board or Declarant, as more specifically provided in the Architectural and Landscape Guidelines;

To retain the services of legal and accounting firms;

As more fully provided in this Declaration, to foreclose the lien against any property for which Assessments are not paid within thirty (30) days after due date or to bring an action at law against the Owner personally obligated to pay the same;

To cause all officers or employees having fiscal responsibilities to be bonded, as the Master Board may deem appropriate;

To the extent permitted hereby, to enforce the provisions of this Declaration and any Additional or Supplementary Declaration and any rules made hereunder or thereunder and to enjoin and/or, at its discretion, seek damages or other relief for violation of such provision or rules and/or by Special Individual Assessments against any Owner for violation of such provisions or rules pursuant to the provisions of Section 4.7 hereof;

To contract with any third party or any Master Association Members (including, without limitation, Declarant) for performance, on behalf of the Master Association, of services which the Master Association is otherwise required to perform pursuant to the terms hereof, upon such terms and conditions and for such consideration as the Master Board may deem proper, advisable and in the best interests of the Master Association;

To employ or retain the services of professional architects or other Persons to serve on or advise the Architectural Control Committee and/or the Architectural Changes Committee.

To grant all necessary easements and rights-of-way over and across the Common Areas when in its sole discretion it deems such an action to be necessary and appropriate, including but not limited to easements for the installation and maintenance of electrical, telephone, cablevision, water, sewerage and other utilities and drainage facilities where consistent to the general use and operation of the Common Area; provided, however, that until such time as Declarant no longer owns any portion of the Property, the Master Board may not grant such an easement or rights-of-way without the prior written approval of Declarant;

To convey fee simple title to all or any part of the Common Area when in its sole discretion it deems such an action to be necessary and appropriate; provided, however, that until such time as Declarant no longer owns any portion of the Property, the Master Board may not convey any portion of the Common Area without the prior written approval of Declarant;

To contract with any third party, including any other property owners association, for the sharing of costs of maintaining Maintenance Areas;

To take any and all other actions, and to enter into any and all other agreements as may be necessary or proper for the fulfillment of its obligations hereunder or for the operational protection of the Master Association; and

Notwithstanding anything contained herein to the contrary, none of the above-described rights and powers of the Master Board shall be obligatory on the part of the Master Board, and the failure or refusal by the Master Board to implement any such duties or obligations arising hereunder or otherwise owning to the Master Association Members.

Section 5.4 Liability Limitations
Neither Declarant, nor any Master Association Member, nor the Master Board, nor the Master Association, nor any officers, directors, agents or employees of any of them shall be personally liable for debts contracted for or otherwise incurred by the Master Association or for a tort of another Master Association Member, whether or not such other Master Association member was acting on behalf of the Master Association or otherwise. Neither Declarant, nor the Master Association, nor their directors, officers, agents or employees shall be liable for any incidental or consequential damages for failure to inspect any premises, improvements or portions thereof of for failure to repair or maintain the same. The Declarant, the Master Association or any other person, firm or association making such repairs or maintenance shall not be liable for any personal injury or other incidental or consequential damages occasioned by any act or omission in the repair or maintenance of any premises, improvements or portions thereof. The Master Association shall, to the extent permitted by applicable law, indemnify and defend all members of the Master Board from and against any and all loss, cost, expense, damage, liability, action or cause of action arising from or relating from the gross negligence or willful misconduct of the person(s) to be indemnified.

Section 5.5 Reserve Funds
The Master Board may establish reserve funds which may be maintained and accounted for separately from other funds maintained for annual operating expenses and may establish separate, irrevocable trust accounts in order to better demonstrate the amounts deposited therein are capital contributions and not net income to the Master Association. The aggregate deposits in such reserve funds shall not exceed an amount as may be reasonably determined by the Master Board to be necessary.

ARTICLE VI

PROPERTY RIGHTS IN THE COMMON AREA

Section 6.1 Owners’ Easements of Enjoyment
Subject to the provisions of Section 6.5, every Owner, and each individual who resides with such Owner and guests of such Owner, shall have a right and easement of use and enjoyment in and to the Common Areas and such easement shall be appurtenant to and shall pass with the title to such Owner’s Lot or other property; PROVIDED, HOWEVER, such easement(s) shall not give such person the right to make alterations, additions or improvements to any part of any Common Area.

Section 6.2 Owners’ Easements for Ingress and Egress
To the extent that the Roadways have not been dedicated to the use and enjoyment of the public sufficient to provide access to a Lot or portion of the Property, every Lot or portion of the Property shall be conveyed with (and each Owner is hereby conveyed) a perpetual, non-exclusive right to use any Roadway which may be constructed by the Declarant and conveyed to the Master Association as part of the Common Area for the purpose of providing access to and from each Lot or other portion of the Property.

Section 6.3 Title to the Common Area
Declarant shall dedicate and convey (by deed without warranty) the fee simple title to the Common Area to the Master Association, free and clear of all encumbrances and liens other than the lien of current taxes and assessments not in default, restrictive covenants and utility easements, and any other encumbrances and mineral interests outstanding and of record. The conveyance of any portion of the Common Area shall occur on the date that a Plat or Plats is recorded showing such portion of the Common Area. Common Area may be conveyed by Declarant to the Master Association in whole or in part from time to time.

Nothing contained herein shall prevent the Declarant, by Additional Declaration or otherwise, to dedicate and convey to any Association certain common areas to be owned by, operate, separately maintained and improved, by that Association, and to be subject to easements of use and enjoyment restricted solely to the Members of that Association.

Not withstanding the recordation of any Plat or any other action by Declarant or the Master Association, all Common Areas, excluding the Roadways, shall remain private property and shall not be considered as dedicated to the use and enjoyment of the public; provided, however, that the Roadways shall be dedicated to the use and enjoyment of the public and offered to the DOT or the Town of Granite Falls, as applicable, for maintenance by the DID or the Town of Granite Falls.

Section 6.4 Control of Common Areas
The Master Board shall have sole and exclusive control and authority over the usage of, and guidelines with respect to the Common Areas. Provided, however, that the Master Board, in its sole discretion, may by resolution or guideline permit an Association, the property under the jurisdiction of which shall include or be adjacent to a Common Area, to either (a) maintain or improve, in whole or in part, the Common Area or (b) promulgate regulations with respect to its Member’s usage of the Common Area. Provided, however, that any such authority delegated by the Master Association may be revoked, rescinded, or otherwise terminated at any time by the Master Association.

Section 6.5 Extent of Owners’ Easements
The rights and easements of enjoyment of the Common Areas created hereby shall be subject to the following:

The right of the Master Association or an Association to prescribe regulations governing the use, operation and maintenance of the Common Area (including limiting the number of guests of Owners who may use such Common Area) subject to limitations established by Declarant or the Master Association, as applicable, on such right to impose regulations;

Subject to the affirmative vote of no less than a majority of all votes present, in person or by proxy, at a duly held meeting of the Master Association Members at which a quorum is present, all in accordance with the Master Bylaws, the right of the Master Association, in accordance with the Master Association and Master Bylaws, to borrow money for the purpose of improving the Common Area and facilities thereon and in aid thereof to mortgage the Common Area, provided the rights of such mortgagee in the Common Area shall be subordinate to the rights of such mortgagee in the Common Area shall be subordinate to the rights of the Owners’ hereunder with regard to the Common Area, and further provided that until such time as Declarant no longer owns any portion or the Property, the Master Association may not mortgage any portion of the Common Area without the prior written approval of Declarant;

The right of the Master Association to take such steps as are reasonably necessary to protect the Common Area against foreclosure; and

The right of the Master Board to grant easements upon, over, under and across, or convey fee simple title to, all or any part of the Common Area when in its sole discretion it deems such an action to be necessary and appropriate; provided, however, that until such time as Declarant no longer owns any portion of the Property, the Master Board may not grant easements upon, over, under and across, or convey fee simple title to, any part of the Common Area without the prior written approval of Declarant.

The primary purpose of the Water Access Lot is to provide Owners of Lots which do not border on the Lake with a perpetual right and location to access the Lake. The Master Board shall have the authority to establish rules and regulations governing use of the Water Access Lot so as to carry out this primary purpose.

Section 6.6 Roadways
Pursuant to the provisions of this Declarant, the Roadways will be maintained by the Master Association until that time that the Roadways are accepted for maintenance by the Master Association until that time that the Roadways are accepted for maintenance by the DOT of the Town of Granite Falls. Provided, however, that the Master Association may delegate to an Association the obligation to maintain any Roadway which is entirely located over property within the jurisdiction of such Association. Until accepted for maintenance by the DOT or the Town of Granite Falls, maintenance of the Roadways shall be to the standard of maintenance (if one is ascertainable) which would be required by the DOT before it would accept such Roadways for maintenance. Such maintenance shall include, but shall not be limited to, repair of damage caused by movement of construction equipment or materials and paying the costs of all bonds, bond premiums, service agreements in connection therewith and performance of all governmental requirements in connection with acceptance of the Roadways for maintenance by the DOT or the Town of Granite Falls, including without limitation sedimentation, storm drainage and erosion requirements.

ARTICLE VII

INSURANCE; REPAIR AND RESTORATION; CONDEMNATION

Section 7.1 Board of Directors
The Master Board shall obtain and maintain at all times insurance of the type and kind and in no less than the amounts set forth below:

Fire — All improvements and all fixtures and personal property included in the Common Areas and Maintenance Areas and all personal property and supplies belonging to the Master Association shall be insured in an amount equal to the current replacement cost (exclusive of land, foundation, excavation and other normally excluded items) as determined annually by the Master Board with the assistance of the insurance company providing coverage. The Master Board shall, at least annually, review the insurance coverage required herein and determine the current replacement cost of such improvements and fixtures and personal property and supplies. Such coverage shall provide protection against loss or damage by fire or other hazards covered by a standard extended coverage endorsement, windstorm and water damage, vandalism and malicious damage and all perils covered by a standard “all risk” endorsement. In addition to the provisions and endorsements set forth in Sections 7.3 and 7.4, the fire and casualty insurance described herein shall contain the following provisions:

Standard “Agreed Amount” and “Inflation Guard” endorsements;
1. construction code endorsement if the Common Area becomes subject to a construction code provision which would require changes to undamaged portions of any building thereby imposing significant costs in the event of partial destruction of such building by an insured peril;
2. a waiver of subrogation by the insurer as to any claims against the Master Association, any officer, director, agent or employee of the Master Association, the Owners and their employees, agents, tenants and invitees; and
3. a provision that the coverage will not be prejudiced by act or neglect of one or more Owners when said act or neglect is not within the control of the Master Association or by any failure of the Master Association to comply with any warranty or condition regarding any portion of the Property over which the Master Association has no control.

The fire and casualty insurance policy shall not contain (and the insurance shall not be placed with companies whose charters or bylaws contain) provisions whereby: (1) contributions or assessments may be made against the Master Association, the Owners or Mortgagees; (2) loss payments are contingent upon action by the carriers, directors, policy holders or members; and (3) there are limiting clauses (other than insurance conditions) which could prevent Owners or Mortgagees from collecting the proceeds.

Public Liability — The Master Board shall also be required to obtain and maintain to the extent obtainable, public liability insurance and officer’s and director’s liability insurance in such limits as the Master Board may, from time to time, determine to be customary for projects similar in construction, location and use as the Project, covering each member of the Master Board, the managing agent, if any, and each Owner with respect to his liability arising out of the ownership, maintenance, or repair of the Common Areas and Maintenance Areas, or from service on the Master Board, provided, however, that in no event shall the amounts of such public liability insurance ever be less than $2,000,000 per occurrence against liability for bodily injury, including death resulting therefrom, and damage to property, including loss of use thereof, occurring upon, in or about, or arising from or relating to, the Property or any portion thereof, nor shall the amount of such officer’s and director’s insurance be less than $2,000,000 unless such coverage is determined by the Master Board to be unreasonably expensive.

Fidelity Coverage — The Master Board shall also be required to obtain fidelity coverage against dishonest acts on the part of all persons, whether officers, directors, trustees, employees, agents or independent contractors, responsible for handling funds belonging to or administered by the Master Association. The fidelity insurance policy shall be written in an amount sufficient to provide protection which is in no event less than one and one-half times the Master Association’s estimated annual operating expenses and reserves. An appropriate endorsement to the policy to cover any persons who serve without compensation shall be added if the policy would not otherwise cover volunteers.

Other — Such other insurance coverage’s [sic], including flood insurance and worker’s compensation, as the Master Board shall determine from time to time desirable.

Section 7.2 Premium Expense
Premiums upon insurance policies purchased by the Master Board shall be paid by the Master Board and charged as a common expense to be collected from the Members pursuant to Article IV hereof.

Section 7.3 Special Endorsements
The Master Board shall make diligent efforts to secure insurance policies that will provide for the following:

recognition of any insurance trust agreement entered into by the Master Association;
coverage that may not be cancelled or substantially modified (including cancellation for nonpayment of premium) without at least thirty (30) days’ prior written notice to the named insured, any insurance trustee and all Mortgagees; and
coverage that cannot be cancelled, invalidated or suspended on account of the conduct of any officer or employee of the Master Board without prior demand in writing that the Master Board cure the defect and the allowance of a reasonable time thereafter within which the defect may be cured by the Master Association, any Owner or any Mortgagee.

Section 7.4 General Guidelines
All insurance policies purchased by the Master Board shall be with a company or companies licensed to do business in the State of North Carolina and holding a rating a “A VIII” or better by the current issue of Best’s Insurance Reports. All insurance policies shall be written for the benefit of the Master Association and shall be issued in the name of and provide that all proceeds thereof shall be payable to the Master Association. Notwithstanding any of the foregoing provisions and requirements relating to insurance, there may be named as an insured, on behalf of the Master Association, the Master Association’s authorized representative, who shall have exclusive authority to negotiate losses under any policy providing such insurance.

Section 7.5 Insurance Proceeds
Subject to any limitations imposed by any applicable financing documents, the Master Association shall use the net proceeds of casualty insurance covered by it to repair and/or replace any damage or destruction of property, real or personal, covered by such insurance. Any balance from the proceeds of casualty insurance paid to the Master Association remaining after satisfactory completion of repair and replacement shall be retained by the Master Association as part of the general reserve fund for repair and replacement of the Common Area and/or Maintenance Areas.

Section 7.6 Insufficient Proceeds
If the insurance proceeds received by the Master Association are insufficient to reimburse, to repair and/or replace any damage or destruction to person or property, the Master Board may levy a Special Assessment the Owners to cover the deficiency.

Section 7.7 Owner’s Personal Property
The Master Association, the Associations or the Declarant shall not be liable in any manner for the safekeeping or condition of any boat, other watercraft or other personal property belonging to or used by any Owner or his family, guest or invitees, located on or used at the Common Areas. Further, the Master Association, the Associations or the Declarant shall not be responsible or liable for any damage or loss to or of any boat, other watercraft, or any tackle, gear, equipment or other property located thereon, or any other personal property of any Owner, his family, guests or invitees located on or used at the Common Areas. Each Owner shall be solely responsible for all boats, other watercraft and other personal property and for any damage thereto or loss thereof, and shall be responsible for the purchase of, at such Owner’s sole cost and expense, any liability or other insurance for damage to or loss of such property.

Section 7.8 No Obligation to Insure Owner’s Property
By virtue of taking title to a Lot or Tract within the Project, each Owner acknowledges that neither the Master Association nor Declarant has any obligation to provide any insurance for any portion of such Lot or Tract or any Dwelling Unit or other property located thereon.

Section 7.9 Security
The Master Association may, in its sole discretion, but shall not be obligated to, provide certain security and fire protection measures, and maintain or support certain other activities within the Project designed to make the Project safer than it might otherwise be. Provided, however, that should the Master Association provide, maintain or support any such measures or activities, then neither the Master Association, Master Board, Declarant, nor any successor of Declarant shall in any way be considered insurers or guarantors of security or fire protection within the Project, and neither the Master Association, Declarant nor any successor of Declarant shall be held liable for any loss or damage by reason or failure to provide or take any security or fire protection measures or for the ineffectiveness of any such measures undertaken. Each Owner and Occupant of any Lot, Tract or Dwelling Unit and each tenant, guest and invitee thereof acknowledges and understands that neither the Master Association, Master Board, Declarant nor any successor of Declarant are insurers, and each such Owner, and Occupant of a Lot, Tract or Dwelling Unit and their tenants, guests and invitees hereby assume all risks for loss or damage to persons, property or contents belonging to any such persons.

Section 7.10 Condemnation
Whenever all or part of the Common Area shall be taken or condemned by any authority having the power of eminent domain, all compensation and damages for and on account of such taking shall be paid to the Master Association. The Master Association, acting through the Master Board, shall have the right to negotiate and litigate the issues with respect to the taking and compensation affecting the Common Area, without limitation on the right of the Owners to represent their own interests. Each Owner, by his acceptance of a deed to a Lot, Tract, or other portion of the Property, hereby appoints the Master Association as his attorney-in-fact to negotiate, litigate or settle on his behalf all claims arising from the condemnation of the Common Area. All compensation and damages paid to the Master Association on account of such a taking shall be sued to restore the Common Area, provided such restoration is possible, with the excess, if any, to be retained by the Master Association and applied to future operating expenses by the Master Board, in its sole discretion. Nothing herein is to prevent Owners whose Lots or other property are specifically affected by the taking or condemnation from joining in the condemnation proceedings and petitioning on their own behalf for consequential damages relating to loss of value of the affected Lots, Tracts or other property, or improvements, fixtures or personal property thereon, exclusive of damages relating to the Common Area. In the event that the condemnation award does not allocate consequential damages to specific owners, but by its terms include an award for reduction in value of Common Area, Lots, Tracts or other property without such allocation, the award shall be divided between affected Owners and the Master Board, as their interests may appear, by the Master Board in its sole discretion.

ARTICLE VIII

RESTRICTIONS

By Additional Declarations, Declarant may impose upon and file in regard to various Phases and/or Sections of the Project controls, covenants, conditions, restrictions, easements, development guidelines, charges and liens relating to, without limitation, types of permissible uses, types of improvements, general development and improvement standards and other matters. Without limiting the provisions that may be included in such Additional Declarations, the Property, each Lot or Tract situated thereon and the Common Area shall be occupied and/or used subject to the following:

Section 8.1 Restricted Actions on Common Areas
No cutting of vegetation, dumping, digging, filling, destruction or other waste shall be committed on the Common Areas or Maintenance Areas. There shall be no obstruction of the Common Area or Maintenance Areas, nor shall anything be kept or stored in the Common Areas or Maintenance Areas, nor shall anything be altered, or constructed or planted in, or removed from, the Common Areas or Maintenance Areas, without the prior written consent of the Master Association.

Each Owner or Occupant shall be liable to the Master Association and/or Declarant for any damage to any Common Area and/or Maintenance Area caused by the negligence or willful misconduct of the Owner or Occupant of his family, tenants, guests, agents, employees, or invitees. Provided, however, that the provisions of this Section 8.1 shall not apply to Declarant in connection with Declarants’ construction activities on the Property.

Section 8.2 Restricted Actions by Owners; Waste
Each Owner shall comply with all laws, regulations, ordinances (including, without limitation, applicable zoning ordinances) and other governmental rules and restrictions in regard to the Lot(s). Tracts or other portions of the Property owned by such. No Lot or Tract shall be used or maintained as a dumping ground for rubbish, trash or garbage and no rubbish, trash or garbage of any nature shall be kept on any part of a Lot or Tract except on a temporary basis in sanitary containers.

Section 8.3 Signs
No sign of any kind shall be displayed on any Lot or Tract except for sigh(s) provided by the Declarant, or approved in writing by the Architectural Control Committee. The Architectural Control Committee shall have the power but not the obligation to adopt and issue from time to time sign guidelines, as part of the Architectural and Landscape Guidelines, to assist the Architectural Control Committee in reviewing and approving proposed signs to be erected on the Property. Provided, however, that the foregoing shall not act to restrict or prohibit Declarant from erecting and maintaining signs and billboards advertising the Property, the Project or portions of either thereof, or for any other purpose, on any portion of the property owned by Declarant or in the Common Areas and Maintenance Areas, or to restrict or prohibit the Master Association or an Association from posting (a) temporary signs in the Maintenance Areas and Common Areas which reference Club House related activities or (b) permanent signs designed to aid in vehicular access and related information or to restrict or prohibit the Club from erecting and maintaining temporary signs and billboards on the Property owned by Declarant or in the Common Areas and Maintenance Areas, advertising or providing directions to or information about any event on the Club Property. Further provided, that the foregoing shall not act to restrict the Club Owner from erecting and maintaining signs on the Club Property in connections with the Club and the activities related thereto.

Section 8.4 Nuisances
It shall be the responsibility of each Owner and Occupant of a Lot or Tract to prevent the development of any unclean, unhealthy, unsightly, or unkempt condition on his or her property. No Lot or Tract within the Project shall be used, in whole or in part, for the deposit, storage or burial of any property or thing that will cause such property to appear to be in an unclean or untidy condition that will or might disturb the peach, quiet, safety, comfort, or serenity of the occupants of surrounding property. No noxious or offensive activity shall be carried on any Lot or Tract, nor shall anything be done tending to cause embarrassment, discomfort, annoyance, or nuisance to any Person using any property within the Project. There shall not be maintained on any Lot or Tract any plants or animals or device or thing of any sort whose activity or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the Project. Without limiting the generality of the foregoing, no speaker, horn, whistle, siren, bell, amplifier or other sound device, except such devices as may be used exclusively for security purposes, shall be located, installed or maintained upon the exterior of any Lot or Tract unless required by law.

Section 8.5 Unsightly or Unkempt Conditions
The pursuit of hobbies or other activities, including specifically, without limiting the generality of the foregoing, the assembly and disassembly of motor vehicles and other mechanical devices, which might tend to cause disorderly, unsightly, or unkempt conditions, shall not be pursued or undertaken on any Lot or Tract other than in enclosed garages.

Section 8.6 Rules of the Master Board
All Owners and Occupants of any Lot, Tract or other portion of the Property shall abide by all rules and regulations adopted by the Master Board from time to time. The Master Board shall have the power to enforce compliance with said rules and regulations adopted by all appropriate legal and equitable remedies, and an Owner or Occupant determined by judicial action to have violated said rules and regulations shall be liable to the Master Association and/or the Declarant for all damages and costs, including attorneys’ fees. Provided, however, the Master Board shall not have the power to impose restrictions, rules or limitations on Declarant or on the Club Property or the use thereof by the Club Owners, the members of the Club or any other person.

Section 8.7 New Construction
Construction of new buildings only shall be permitted on Lot or Tract, it being the intent of this covenant to prohibit the moving of any existing new or used building onto a Lot or Tract. Provided, however, that nothing herein shall prohibit Declarant rom moving an existing new or used building onto a Lot or Tract to be used for storage or for use as construction or sales offices and nothing herein shall prohibit Declarant or the Club from moving an existing new or used building onto the Club Property for use as a temporary pool/tennis building, club storage facility, locker room or food facility.

Section 8.8 Diligent Construction
All construction, landscaping or other work which has been commenced on any Lot or Tract must be continued with reasonable diligence to completion and no partially completed houses or other improvements shall be permitted to exist on any Lot or Tract, except during such reasonable time period as is necessary for completion. All construction must be completed within one (1) year after the date upon which it commenced, unless a longer time is approved by the Architectural Control Committee. Any damage to the streets, curbs or sidewalks or any part of any Common Area, Maintenance Area or any utility system cause by an Owner or Owner’s builder or his subcontractors shall be repaired by such responsible Owner. Any builder of Improvements and his subcontractors on any portion of the Property shall keep such portion of the Property free of unsightly construction debris, in accordance with the construction rules established by the Architectural Control Committee (or, in the absence of such rules, in accordance with standard construction practices), and shall similarly keep contiguous public and private areas free from any dirt, mud, garbage, trash, or other debris which is occasioned by construction of Improvements. The Master Board may levy a Special Individual Assessment against an Owner’s property in the Project to pay for the cost of repairing any damage to streets, curbs or sidewalks or any part of any Roadway, Common Area, Maintenance Area or utility system, to pay for the cost of cleaning public and private areas, including the Roadways in the Project, and to pay for the cost of the removal of garbage, trash or other debris, which are occasioned by the activities of an Owner or Owner’s builder or his subcontractors during the construction of Improvements.

Section 8.9 No Subdivision of Lots
No Lot shall be subdivided by sale, lease or otherwise without the prior written consent of Declarant. The foregoing shall not apply to Declarant and Declarant reserves the right to change the boundaries or dimensions of any Lot or Tract still owned by Declarant as may be needed for any reason.

Section 8.10 Piers, Docks, Boatslips, Sea Walls and Inland Boathouses
All piers, docks, boatslips, sea walls and inland boathouses constructed on or adjacent to any Lot or Tract shall be subject to, and in accordance with, all rules and regulations of Duke Energy Corp. / Shoreline Management and/or any governmental entity having jurisdiction at the time such improvements are made, in addition to being subject to approval by the Architectural Control Committee in accordance with Article IX hereof.

Section 8.11 Parking
No vehicles, trucks, vans, cars, trailers, construction equipment, etc. may be parked overnight on any street within the Property and with carrying capacity and/or size designation greater than or equal to three-fourths (3/4th) ton, shall not be permitted to park overnight on the streets, driveways or otherwise within the Property, unless stored in an enclosed garage. No vehicle of any size which transports inflammable or explosive cargo may be kept in the Property at any time. No vehicles that are not in a condition to be normally operated or that do not have a current registration tag may be stored or situated on any Lot for more than (30) days unless stored in an enclosed garage.

The Owner of each Lot will be responsible for providing on each Lot sufficient paved parking area for all vehicles normally parked and/or situated on or in regard to such Lot.

No recreational vehicles or related equipment, including any boat, houseboat, trailer, motor home or “camper” vehicle may be maintained, stored or kept on any portion of the Property, except in enclosed garages or in an enclosure specifically approved for such maintenance or storage by the Architectural Control Committee.

All vehicles must be parked so as not to impede traffic or damage vegetation.

No construction office trailers may be placed, erected or allowed to remain on any Lots during construction, except as approved in writing by the Architectural Control Committee. Provided, however, that nothing herein shall prohibit Declarant from erecting or moving temporary buildings onto Lots owned by Declarant to be used as construction or sales offices. Other construction vehicles (trucks, vans, cars, construction equipment, equipment trailers, etc.) may be left overnight on the Property (including any Lot or street) only in accordance with such rules as may be established by the Architectural Control Committee.

Section 8.12 Governmental Requirements
Nothing contained herein shall be deemed to constitute a waiver of any governmental requirements applicable to any Lot, Tract, or other part of the Property and all applicable governmental requirements or restrictions relative to the construction of improvements on and/or use and utilization of any Lot, Tract or portion of the Property shall continue to be applicable and shall be complied with in regard to each Lot, Tract or portion of the Property.

Section 8.13 Occupants Bound
All provisions of this Declaration, any Additional Declaration, the Master Bylaws, and of any rules and regulations, use restrictions or Architectural and Landscape Guidelines promulgated pursuant hereto or thereto which govern the conduct of Owners and which provide for sanctions against Owners shall also apply to all Occupants even though Occupants are not specifically mentioned.

ARTICLE IX

ARCHITECTURAL AND LANDSCAPING CONTROL

Section 9.1 General
Notwithstanding anything contained in this Declaration to the contrary, no Improvements (as defined in Section 9.4) including without limitation site preparation on any Lot or Tract, change in grade or slope of any Lot or Tract, or erection of buildings or exterior additions or alterations to any building situated upon the Property, erection of or changes or additions in fences, hedges, walls and other structures, any landscaping, or any cutting of trees on any Lot or Tract, shall be commenced, erected or maintained on any portion of the Property, subject to the provisions of Section 9.6 hereof, until, (a) the Architectural Control Committee (herein called the “Architectural Control Committee”), appointed as hereinafter provided, has approved the plans and specifications therefore and the location of such Improvements and has given its written approval for commencement of construction; (b) the fees set forth in this Article IX have been paid; and (c) the agreements set forth in this Article IX have been executed. In addition to any standards established pursuant to this Declaration, Declarant may establish, by Additional Declarations, architectural and landscaping control standards, guidelines and restrictions in regard to various Phases or sections of the Property. The provisions of this Article IX shall not apply to the construction of any Improvements commenced, erected or maintained by Declarant on any Lot or Tract or upon any of the Common Areas or Maintenance Areas.

The Master Board may delegate to the Architectural Control Committee any powers or authority reserved or granted to the Master Board under this Article IX.

Section 9.2 Composition of Architectural Control Committee
So long as Declarant owns any Lot, Tract or other portion of the Property, the members of the Architectural Control Committee shall be appointed by Declarant. At such time as Declarant no longer owns any Lot, Tract or other portion of the Property or at such earlier date as Declarant releases its right to appoint the members of the Architectural Control Committee, the members of the Architectural Control Committee shall thereafter be appointed by the Master Board. The members of the Architectural Control Committee shall be appointed annually and will be composed of at least three (3) and not more than seven (7) individuals, the exact number of members of the Architectural Control Committee to be designated from time to time by the body then having the authority to appoint such members (Declarant or the Master Board, as the case may be). The members of the Architectural Control Committee need not be Owners of property in the Project. In the event of the death or resignation of any member of the Architectural Control Committee, the body then having the authority to appoint members to the Architectural Control Committee shall have full authority to designate and appoint a successor. Members of the Architectural Control Committee may be removed and replaced at any time, with or without cause, and without prior notice, by the body then having the authority to appoint such members. Notwithstanding anything contained herein to the contrary, the Architectural Control Committee shall have the right, power and authority to employ and/or sue the services of any architects, engineers or other professionals as it deems necessary or advisable, in its sole discretion, to carry out the duties and obligations of the Architectural Control Committee as described in this Article IX.

Section 9.3 Architectural and Landscape Guidelines

The Architectural Control Committee shall, from time to time, publish and promulgate architectural and design guidelines. Such architectural and design guidelines shall be explanatory and illustrative of the general intent of the development of the Property and are intended as a guide to assist the Architectural Control Committee in reviewing plans and specifications for Improvements. Such architectural and design guidelines shall also set out, among other things, the procedures for submission, review and approval of plans and specifications to the Architectural Control Committee and the fees to be imposed by the Architectural Control Committee, as more specifically described in Section 9.8 hereof. In any event, such architectural and design guidelines shall not be binding upon the Architectural Control Committee, may be revised and amended at any time by the Architectural Control Committee, in its sole discretion, shall not constitute, in every event, the basis for approval or disapproval of plans, specifications and other materials submitted to the Architectural Control Committee for approval.
The Architectural Control Committee shall promulgate and amend from time to time landscape guidelines which shall establish approved standards, methods and procedures for landscaping, landscape management and landscape maintenance in the Property, including the removal of trees. Such authorized standards, methods and procedures shall be utilized by Owners, and their contractors and sub-contractors and the approval by the Architectural Control Committee of any landscaping plan or other Improvement in connection with landscaping on a Lot, Tract or other portion of the Property shall be based upon the conformity of such plan or Improvement with such landscape guidelines. In any event, such landscape guidelines shall not be binding upon the Architectural Control Committee, may be revised and amended at any time by the Architectural Control Committee, in its sole discretion, and shall not constitute, in every event, the basis for approval or disapproval of landscaping plans, specifications and other materials submitted to the Architectural Control Committee for approval.
The Architectural Control Committee is also hereby authorized to publish and promulgate from time to time, and revise and amend at any time in its sole discretion, construction rules to be followed by all owners and builders performing work or constructing improvements on the Property.
The architectural and design guidelines described in (a) above, the landscape guidelines described in (b) above and the construction rules described in (c) above shall herein collectively be referred to as the “Architectural and Landscape Guidelines”. The Architectural Control Committee may publish and promulgate different Architectural and Landscape Guidelines for different Phases, sections or portions of the Property.

Section 9.4 Definition of “Improvements”
The term “Improvement” or “Improvements” shall mean and include any and all man-made changes or additions to a Lot or Tract, including but not limited to the location, materials, size and design of all buildings (including any exterior devices attached to or separate from buildings, such as heating and air conditioning equipment, solar heating devices, antennae, satellite dishes, clothes lines, etc.) storage sheds or areas, piers, docs, boathouses, roofed structures, parking areas, fences, “invisible” pet fencing, pet “runs”, lines and similar tethers or enclosures, walls, landscaping (including cutting of trees), hedges, mass plantings, poles, driveways, ponds, lakes, changes in grade or slope, site preparation, swimming pools, hot tubs, Jacuzzis, tennis courts, treehouses, basketball goals, skateboard ramps, and other shape. The definition of Improvements includes both original Improvements and all later changes to Improvements. The definition of Improvements, however, does not include the replacement or repair of Improvements previously approved by the Architectural Control Committee, provided that such replacement or repair does not change exterior colors, materials, designs or appearances from that which were previously approved by the Architectural Control Committee.

Section 9.5 Enforcement
It is Declarant’s intent that the architectural control provisions of this Declaration and any Additional Declarations are to permit control of the architectural design and landscaping and to establish quality standards for construction and construction activity in the Project and to help preserve values of properties in the Project. All Owners by purchasing property subject to this Declaration acknowledge that a violation of any such provisions could result in irreparable harm and damage to Owners of property in the Project and Declarant, and to the values of their properties, a monetary measure of which harm and damage would be difficult to establish.

Accordingly, the Master Association shall have the specific right (but no obligation) to enforce and/or to prevent any violation of the provisions contained in this Article IX by a proceeding at law or in equity against the person or persons violating or attempting to violate any such provisions. Declarant hereby specifically reserves and grants unto the Architectural Control Committee, the Master Board and any agent or member thereof, the right of entry and inspection upon any portion of the Property f or the purpose of determination by the Architectural Control Committee or the Master Board whether there exists any construction of any Improvement which violates the terms of any approval by the Architectural Control Committee, the terms of the Architectural and Landscape Guidelines, the terms of this Declaration or any Additional Declaration, or any amendments hereto or thereto.

As to nonconforming or unapproved Improvements, the Master Association may require any Owner to restore such Owner’s Improvements to the condition existing prior to the construction thereof (including, without limitation, the demolition and removal of any unapproved Improvement). If such Improvements were commenced or constructed in violation of this Article IX. In addition, the Master Association may, but has no obligation to cause such restoration, demolition and removal and levy the amount of the cost thereof as a Special Individual Assessment against the Lot, Tract or portion of the Property upon which such Improvements were commenced or constructed. In the event that it becomes necessary to resort to litigation to determine the propriety of any constructed Improvement, to remove any unapproved Improvement or to otherwise remedy a violation of the Architectural and Landscape Guidelines, the Master Association shall be entitled to the recovery of court costs, attorneys’ fees and expenses incurred by the Master Association and/or the Architectural Control Committee in connection therewith, which costs, fees and expenses may be levied as a Special Individual Assessment against the Lot, Tract or other portion of the Property upon which such Improvement was commenced or constructed.

Section 9.6 Failure of the Architectural Control Committee to Act
If the Architectural Control Committee fails to approve or disapprove any plans and specifications and other submittals which conform (and which relate to Improvements which will conform) with the requirements hereof or to reject them as being inadequate or unacceptable within thirty (30) days after receipt thereof, and provided such submittal was a full and complete submittal, in accordance with the Architectural and Landscape Guidelines, of all items that were to have been submitted to the Architectural Control Committee, and provided the Architectural Control Committee shall again fail to approve or disapprove of such plans, specifications and other submittals within (1) days after additional written request to act on such items is delivered to the Architectural Control Committee following the passage of such first above-described thirty (30) business day period, it shall be conclusively presumed that the Architectural Control Committee has approved such conforming plans and specifications and other submittals, EXCEPT that the Architectural Control Committee has no right or power, either by actions or failure to act, to waive or grant any variances relating to any mandatory requirements specified in this Declaration or any Additional Declaration, and EXCEPT FURTHER, that the Architectural Control Committee shall not be deemed to have waived any of the requirements set forth in Sections 9.8, 9.9 and 9.10 below. If plans and specifications or other submittals are not sufficiently complete or are otherwise inadequate, the Architectural Control Committee may reject them as being inadequate or may approve or disapprove part, conditionally or unconditionally, and reject the balance. The Architectural Control Committee is authorized to request the submission of samples of proposed construction materials.

Section 9.7 Variances
Upon submission of a written request for same, the Architectural Control Committee may, from time to time, in its sole discretion, permit Owners to construct, erect or install Improvements which are at variance with restrictions, requirements or provisions of this Declaration or any Additional Declaration from which a variance is permitted, pursuant to the terms hereof and thereof. In any case, however, such variances shall be in basic conformity with and shall blend effectively with the general architectural style and design of the community and shall not materially change the scheme of restrictions herein set forth. Written requests for variances shall be deemed to be disapproved in the event the Architectural Control Committee has not expressly and in writing, approved such request within thirty (30) business days of the submission of such request. No member of the Architectural Control Committee shall be liable to any Owner for any claims, causes of action, or damages arising out of the grant or denial of any variance to any o. each requests for a variance submitted hereunder shall be reviewed separately and apart from other such requests and the grant of a variance to any Owner shall not constitute a waiver of the Architectural Control Committee’s right to strictly enforce the covenants, restrictions and architectural standards provided hereunder or under any Additional Declaration, against any other Owner.

Section 9.8 Fees Required by Architectural Control Committee
The Architectural Control Committee, in its sole discretion, may require that each Person submitting plans and specifications for Improvements to the Architectural Control Committee pay one or more fees to the Architectural Control Committee or to Declarant as a condition to commencement or construction of such Improvements. Such fee(s), including the amount(s), payee and purpose(s) thereof, shall be established and set forth in the Architectural and Landscape Guidelines.

Section 9.9 No Construction Without Payment of Fees
Notwithstanding anything contained in this Article IX to the contrary, plans and specifications for Improvements to be constructed on a Lot, Tract or other portion of the Property shall not be deemed to have been properly submitted unless and until any and all fees required by the Architectural Control Committee to be paid in connection with such Improvements, as provided in Section 9.8 above, shall have been paid to the Architectural Control Committee or Declarant as required.

Section 9.10 Sewer Pump System
Declarant or the Architectural Control Committee may determine, in its sole discretion, that a Lot requires a Sewer Pump System for the purpose of pumping sewage into the Granite Falls Utility Department sewage system. The Owner of any such Lot shall be responsible for incorporating the plans for the Sewer Pump System to service such Lot into the plans and specifications for Improvements on such Lot submitted to the Architectural Control Committee, for contacting and scheduling the Installation work of the Sewer Pump System by an installation company approved by the Architectural Control Committee and for the cost of installing and supplying electrical service to the Sewer Pump System and paying any “turn on” charges required by the Granite Falls Utility Department.

Section 9.11 Club Improvements
Notwithstanding the provisions of this Article IX, construction of any Improvements in connection with the development of the Club and the Club Facilities, including the construction and development of a club house, swimming pools, tennis courts and other Improvements on the Club Property, commenced prior to the Turnover Date, shall not be subject to the provisions of this Article IX, and such Improvements on the Club Property may be constructed and the Club Property may be developed prior to the Turnover Date without any submission, review and approval of plans and specifications or the approval of any other matters in connection therewith by the Architectural Control Committee. Provided, however, that Improvements on the Club Property, including any renovations, changes and additions to existing Improvements on the Club Property, commenced, erected or maintained after the Turnover Date shall be subject to the provisions of this Article IX, and plans and specifications for any such Improvements shall be submitted, reviewed and approved by the Architectural Control Committee in the same manner and in accordance with the same terms and conditions as any other improvements on the Property.

Section 9.12 Notices and Submittals
Notices and submittals to the Architectural Control Committee shall be in accordance with the notice provisions set forth from time to time in the Architectural and Landscape Guidelines.

Section 9.13 Separate Committee for Changes to Existing Improvements
The Master Board shall have the right, power and authority, in its sole discretion, to appoint a committee separate and apart from the Architectural Control Committee to review plans and specifications for any and all renovations, changes and additions to existing Improvements located on a Lot, Tract or other portion of the Property (hereinafter, the “Architectural Changes Committee”). Should the Master Board appoint such an Architectural Changes Committee, then the Architectural Control Committee shall relinquish to the Architectural Control Committee its authority to review plans and specifications for any such changes to existing Improvements, and the Architectural Control Committee shall be solely responsible for review and approval of the same. The composition of the Architectural Changes Committee shall be determined by the Master Board in its sole discretion and the procedure for submission, review and approval of plans and specifications to and by the Architectural Control Committee shall be set forth in the Architectural and Landscape Guidelines. Notwithstanding the above, nothing herein shall be deemed to obligate the Master Board to appoint an Architectural Changes Committee, and until such a Committee is appointed, the Architectural Control Committee shall be responsible for reviewing and approving or disapproving all plans and specifications for renovations, changes and additions to existing Improvements in accordance with the provisions of this Article IX.

Section 9.14 Limitation of Liability
No member of the Architectural Control Committee or. The Architectural Changes Committee shall be liable for claims, causes of action or damages (except where occasioned by willful misconduct of such member) arising out of services performed pursuant to this Article IX. Neither the Architectural Control Committee, nor the Architectural Changes Committee, nor the members thereof, nor the Master Association, nor any Association, nor Declarant, nor any officers, directors, members, employees, agents or affiliates of any of them, shall be liable in damages or otherwise to anyone submitting plans and specifications and others submittals for approval or to any Owner by reason of mistake of judgment, negligence or nonfeasance arising out of or in connection with the approval or disapproval or failure to approve or disapprove any plans or specification. Every person who submits plans or specifications, and every Owner, agrees that he will not bring any action or suit against Declarant, the Master Association, any Association, the Architectural Control Committee, the Architectural Changes Committee, the Master Board, or the officers, directors, embers, employees, agents or affiliates of any of them, , to recover any such damages and hereby releases, demises, and quitclaims, all claims, demands and causes of actions arising out of or in connection with any judgment, negligence or nonfeasance and hereby waives the provisions of any law which provides that a general release does not extend to claims, demands and causes of action not known at the time the release is given. Declarant shall be the sole party responsible for the performance of Declarant’s obligations under this Declaration, and no other person, firm or entity, including without limitation, any entity affiliated with Declarant, shall have any obligation or liability for Declarant’s obligations under this Declaration.

Section 9.15 Miscellaneous
Members of the Architectural Control Committee or the Architectural Changes Committee, in the sole discretion of the body appointing such Members (Declarant or the Master Board, as the case may be) may be compensated for their services. The Master Association shall reimburse members of the Architectural Control Committee and the Architectural Changes Committee for reasonable out-of-pocket expenses associated with their activities hereunder. All costs, expenses and attorneys’ fees of the Architectural Control Committee and the Architectural Changes Committee, including those incurred in connection with their enforcement or other powers as provided herein, shall be borne by the Master Association; provided, however, that nothing herein shall be deemed to negate the Master Association’s right to an award of court costs, attorneys’ fees and expenses in accordance with Section 9.5 hereof.

ARTICLE X

EASEMENTS AND OTHER RIGHTS

Declarant, in addition to any other easements granted or reserved herein, hereby reserves unto itself, its successors and assigns, and grants to the Master Association and any other persons or entities hereinafter set forth, the following non-exclusive easements on, upon, over, across, through and under the Property. In addition, Declarant hereby reserves unto itself, its successors and assigns, the right, on behalf of itself and the Master Association, to grant additional easements on, upon, over, across, through and under the Common Areas and any portion of the Property owned by Declarant as deemed to be in the best interest of and proper for the Property, including, but not limited to, easements in favor of Declarant, the Master Association, the Associations, the Club, any designees of the foregoing, the Owners, and all their family members, guests, invitees and lessees and to various governmental and quasi-governmental authorities and agencies and private concerns for the purposes and uses hereinafter specified.

Section 10.1 Easements and Cross-Easements on Common Areas
Declarant, for itself, its designees, and the Master Association, reserves the right to impose upon the Common Area henceforth and from time to time such easements and cross-easements for ingress and egress, installation, maintenance, construction and repair of utilities and facilities including, but not limited to, electric power, telephone, cable television, master antenna transmission, surveillance services, governmental and quasi-governmental purposes, sewer, water, gas, drainage, irrigation, lake maintenance, storm water management, lighting, television transmission, garbage and waste removal, emergency services and the like as it deems to be in the best interest of, and necessary and proper for the Property or any portion thereof.

Section 10.2 Use of Common Areas
Declarant declares that the Common Areas are subject to a perpetual nonexclusive easement in favor of Declarant, the Master Association and their designees, the Associations, the Owners and all their family members, guests, invitees and lessees, and appropriate governmental and quasi-governmental agencies to use the Common Areas for all proper and normal purposes including, but not limited to, ingress, egress, and access for the furnishing of services and utilities and for such use of the facilities as the same are reasonably intended in accordance with the terms of this Declaration and any Additional Declaration. If ingress or egress to any Lot or other portion of the Property is through any Common Area, any conveyance or encumbrance of such area is subject to this easement.

Section 10.3 Right-of-Way Over Roadways
Declarant hereby reserves, for the benefit of itself, its agents, employees, lessees, invitees, designees, successors and assigns, and grants to the Master Association, the Associations, their agents, employees, lessees, invitees, designees, successors and assigns, and to each Owner of a Lot or Tract, their family members, guests, invitees, successors and assigns, and to each Occupant of a Lot or Tract, and to all governmental and quasi-governmental agencies and service entities having jurisdiction over the Property while engaged in their future functions, a perpetual non-exclusive easement, license, right and privilege of passage and use, both pedestrian and vehicular, over and across the Roadways for the purpose of providing access, ingress and egress to and from, through and between the Property.

Section 10.4 Right of the Master Association and Declarant to Enter Upon the Common Areas and Maintenance Areas
Declarant hereby reserves for the benefit of itself, its successors in interest and assigns, and grants to the Master Association and all agents, employees or other designees of Declarant or the Master Association an easement for ingress, egress and access to enter upon of over the Common Areas and Maintenance Areas for the purposes of inspecting any construction, proposed construction, or improvements or fulfilling the rights, duties and responsibilities of ownership, administration, maintenance and repair of Declarant or the Master Association, as appropriate. Such easement includes an easement in favor of the Master Association and Declarant to enter upon the Common Areas and Maintenance Areas now or hereafter created to use, repair, maintain and replace the same for the purposes for which they are initially designated or for such purposes as they are hereafter redesignated or as Declarant otherwise determines them to be reasonably suited. Notwithstanding the foregoing, nothing contained herein shall be interpreted as imposing any obligation upon the Master Association or Declarant to maintain, repair, or construct Improvements which an Owner or Association is required to maintain, construct or repair.

Section 10.5 Easement for Encroachments
Declarant hereby reserves, for the benefit of itself, its successors in interest and assigns, and grants to the Master Association, the Associations, the Owners, their successors and assigns, and to the Occupants of Lots or Tracts, easements for encroachments, to the extent necessary, in the event any portion of the Improvements located on any portion of the Property now or hereafter encroaches upon any of the remaining portions of the Property as a result of minor inaccuracies in survey, construction or reconstruction, or due to settlement or movement. Any easement(s) for encroachment shall include an easement 9s) for the maintenance and use of the encroaching improvements in favor of Declarant, the Master Association, the Associations, the Owners and all their designees.

Section 10.6 Easement Regarding Tennis or Other Recreational Use
Declarant, the Club’s members, and visitors to the Club shall have a perpetual, non-exclusive easement in their favor to use the Roadways and entranceways and other Common Areas as necessary during any use of the Club tennis or other facilities or as a spectator, worker or purveyor at or for any tournament or activity in connection therewith for the purposes of ingress, egress and access to such facilities, in addition, Declarant hereby dedicates and reserves for the benefit of the Club, its members, visitors, agents and employees, nonexclusive perpetual easements over, across and under certain portions of the Property, indicated and shown on the Plats as being reserved as easements for the benefit of the River Bend Club.

Any disputes as to the extent of any of the above-described easements during the term of this Declaration shall be determined by Declarant in its sole and absolute discretion. Declarant reserves the right to impose upon the Property such other easements as are required for the enjoyment of the Club tennis or other facilities.

Section 10.7 Maintenance Areas
Declarant hereby reserves, for the benefit of itself, its successors in interest and assigns, and grants to the Master Association, its successors and assigns, the following nonexclusive perpetual easements over certain areas of the Property as hereinafter described for the purposes hereinafter described:

Easements for the purposes of landscaping and maintaining entryways and erecting and maintaining entrance monument(s) for the Property, over, across and under those portions of the Property shown and designated as “Entry Easement” on the Plats (herein referred to as the “Entrance Monument Easements”) Declarant and/or the Master Association shall have the right to landscape and maintain the areas of the Property so designated as entryways to the Property, to erect and maintain entrance monument(s) thereon bearing the name of the Property, and to erect and maintain lighting for such monument(s), plantings, landscaping and other improvements typically sued for entryways.
Easements for the installation, maintenance, repair and removal of landscaping and landscaping amenities, including signage, monuments and irrigation systems, over, across and under those portions of the Property shown and designated as “Landscape Easements” on the Plats (herein referred to as “Landscape Easements”).
Easements for the installation, maintenance, repair and removal of sidewalks, over, across and under those portions of the Property shown and designated as “Sidewalk Easements” on the Plat (herein referred to as the “Sidewalk Easements”)/

The Property is part Owner of the residential and recreational development being developed by Declarant and known as River Bend of Lake Hickory (herein referred to as the “Development”). as part of the Development, in addition to developing the Property, Declarant desires to provide for the consistent and high-quality improvement and maintenance of all areas to be maintained at the common expense of owners of property in the Development, which areas include areas inside and outside the Property. Accordingly, Declarant hereby provides that, in addition to the Common Areas and Roadways (prior to being accepted for maintenance by the DOT or the Town of Granite Falls) the Master Association will be responsible for maintaining the following areas and items inside and outside the Property:

The Entrance Monument Easements;
The Landscape Easements;
The Sidewalk Easements;
Those certain landscape easements shown and designated on the Plat as “Landscape Easements”, which easements shall be reserved by Declarant and granted to the Master Association;
Any street medians, shoulders and other unpaved areas within the rights-of-way of Roadways which are not otherwise maintained by the DOT or the Town of Granite Falls;
Any sidewalks, pathways, walkways or boardwalks located on the Property or within the rights-of-way of Roadways which are not otherwise maintained by the DOT or the Town of Granite Falls;
Any enriched paving within the rights-of-way of the Roadways which are not otherwise maintained by the DOT or the Town of Granite Falls;
Any signage and street lighting located on the pro which are not otherwise maintained by any governmental or quasi-governmental authority or public or private utility or by the Club Owner. Maintenance of street lighting shall include paying for the cost of electricity for operating such lighting and paying for the cost of any required reimbursement to any governmental or quasi-governmental authority or public or private utility for the cost of installation and maintenance of street lights.
Any and all irrigation systems located in the Irrigation Easements, as defined in Section 10.11 hereof, which are not otherwise maintained by the Club.
All of the above-described areas and items shall herein be referred to as the “Maintenance Areas”. The Master Association shall maintain any and all of the Maintenance Areas to a consistent standard of maintenance typical of a first-class development.

Sec 10.8 Easements for Installation, Maintenance and Repair of Sewer Pump System
As more specifically set forth in the Architectural and Landscape Guidelines, Owners of certain Lots in the Property will be required to have installed, in connection with the construction of Improvements on such Lots, a Sewer Pump System. Declarant hereby reserves unto itself and grants to the Master Association and all agents, employees or designees of either, including any person designated by either to install, maintain and/or repair any portion of the Sewer Pump System, an easement upon and over each Lot or Tract requiring such a Sewer Pump System for ingress, egress and access for the installation, maintenance and repair of the Sewer Pump System.

Section 10.9 Easements for Common Driveways
Certain groups of Lots in the Property will be served by Common Driveways, as hereinafter defined, which will run over and across certain areas of the Property, as hereinafter described. The Lots which area a part of a group which will be served by a Common Driveway and are therefore subject to the provisions of this Section 10.9 will be specified in the Additional Declarations for the Phases in which such Lots are located. Provided, however, that the Owners of certain Lots shall have the right but not the obligation to have such Lots be served by a Common Driveway and therefore included within the designated group of Lots using such Common Driveway, which Lots will also be specified in the Additional Declarations for the Phases in which such Lots are located and which Lots shall herein be referred to as “Optional Lots”. All Lots served by a Common Driveway, including those Optional Lots whose Owners have chosen to be served by such Common Driveway, shall herein be referred to as a “Group”.

Declarant hereby reserves, for the benefit of itself, its agents, employees, designees, successors and assigns, and grants to the Master Association, its agents, employees, designees, successors and assigns, and to each Owner of a Lot in a particular Group, their successors and assigns, a perpetual non-exclusive easement over, across and under the area of the Property shown and designated as “Common Driveway and Utility Easement” (herein referred to as such) on the Plat of such Group and running to such particular Group. The above-described easement is hereby reserved and granted for the purposes of (a) paving, maintaining and repairing a Common Driveway to be erected on such easement area (the “Common Driveway”), and (b) laying, maintaining, repairing and replacing utility lines over, under and across such easement area, which non-exclusive easement shall include the right to go upon such easement area and any portion of the Property in the area of or adjacent to such easement area necessary to perform such work. In addition, Declarant hereby grants to each Owner of a Lot in a Group, their successors and assigns, a perpetual non-exclusive easement over and across any areas of the Property necessary for such Owner to tie his Lot into the Common Driveway and Utility Easement serving his Lot (the “Tie-In Easement”), which Tie-In Easement may also be used for the above-described purposes.

Any Owner or Occupant of a Lot within a Group may and must use only the Common Driveway and Utility Easement serving such Group as its means of access to a public street. Within the Common Driveway and Utility Easement and the Tie-In Easement, no structure, planting or other material shall be placed or permitted to remain which could interfere with the use of the Common Driveway and Utility Easement and the Tie-In Easement for the above-stated purposes.

The Owner of each Lot within a Group shall pay for its attributable share of the construction of that Group’s Common Driveway in accordance with the provisions of the Architectural and Landscape Guidelines.

The cost of maintaining, in good order and repair, the Common Driveway for a particular Group shall be shared equally among the Owners of the Lots within that Group. The Master Board shall have the power and authority to expend funds for maintenance and repair of the Common Driveways, and to assess the Owners within each Group for the attributable share of such maintenance and repair costs. For example, if a Group consists of five (5) Lots, each Lot’s attributable share of maintenance and repair costs would be one-fifth (1/5th).

The Owner of each Lot in a Group shall have the right to lay, maintain, and repair and replace within the Common Driveway and Utility Easement, and within any Tie-In Easement as necessary, utility lines servicing its Lot, provided, that any such work shall be carried out in such a way so as not to interfere with the other Owners’ reasonable use of the Common Driveway, and provided further that any Owner performing such work and causing disturbance to the pavement, concrete, landscaping or other features of the Common Driveway and Utility Easement, or to other property in the Project, shall repair the same to its condition prior to such work.

Section 10.10 Utility and Drainage Easements
The Property shall be subject to all easements and rights-of-way for utilities and drainage shown on the Plats including but not limited to those certain easements shown and designated on the Plats as

“Utility Easement”;
“Public Storm Drainage Easement”;
“Sanitary Sewer Easement”; and
“Sanitary Sewer Right-of-Way”.
“Walkways and Pathways”

Such easements are hereby reserved for the use of Declarant, its successors and assigns, and are hereby established for the use of the Master Association, its successors and assigns.

Additionally, Declarant hereby reserves, for the benefit of itself, its successors and assigns, and grants to the Master Association, its successors and assigns, a non-exclusive easement and right-of-way over, under and along (a) a 10-foot strip of land adjacent to the front, side and rear boundary lines of all Lots within the Property and (b) all Landscape Easements, for the installation and maintenance of lines, conduits, pipes and other equipment necessary for furnishing electric power, gas, telephone services, cable service, water, sanitary sewer and drainage facilities, storm drainage and/or other utilities. Within the above-described easements no structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation of utilities or which may change the direction or flow of drainage channels in the easements. This reservation of easements shall not prohibit the construction of driveways, at locations approved by the Architectural Control Committee, over such easements.

Section 10.11 Irrigation Easements
Declarant hereby reserves, for the benefit of itself, its successors and assigns, and grants to the Master Association and the Club Owner, their successors and assigns, non-exclusive perpetual easements over, across and under those portions of the property shown and designated as “Irrigation Easement” on the Plats for the installation, maintenance, repair and removal of irrigation systems to service the landscaping to be installed and maintained in the Landscape Easements areas (herein referred Owner as the “Irrigation Easements”). Within the Irrigation Easements no structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of irrigation systems. This reservation of easements shall not prohibit the construction of driveways, at locations approved by the Architectural Control Committee, over such easements.

Section 10.12 Declarant’s Right to Assign Easements; Maintenance of Easement Areas
Declarant shall have the right to assign and convey, in whole of in part, the easements reserved by it hereunder. The areas burdened by the easements and rights-of-way reserved by Declarant on each Lot or other portion of the Property pursuant hereto, including any improvements in such areas, which are not to be maintained by the Master Association, an Association or a public authority or utility, shall be maintained continuously by each Owner of such Lot or other portion of the Property, but not structures, plantings or other material shall be placed or permitted to remain upon such areas or other activities undertaken thereon which may damage or interfere with the installation or maintenance of utilities or other services, or which may retard, obstruct or reverse the flow of water or which may damage or interfere with established slope ratios or create erosion problems. Declarant and the Master Association may exercise the rights reserved in Section 11.2 hereof for the purpose of enforcing the provisions of this Section 10.12. Notwithstanding the above, the Master Association, an Association and/or Declarant shall have the right but not the obligation to maintain the landscaping in the easement areas on any Lot or Tract.

Section 10.13 Easement Reserved for the Master Association, the Associations and Declarant
Full rights of access, ingress and egress are hereby reserved by Declarant for itself and the Master Association at all times over and upon any Lot or other portion of the Property for the exercise of the easement rights described in this Article X as well as the maintenance and repair rights described in Article XI below and for the carrying out by Declarant or the Master Association of the rights, functions, duties and obligations of each hereunder; provided, that any such entry by Declarant or the Master Association upon any Lot or portion of the Property shall be made within the minimum inconvenience to the Owner of such property as is reasonably practical, and any damage caused as a result of the gross negligence of Declarant, the Master Association or their employees or agents shall be repaired by Declarant or the Master Association, as the case may be, at the expense of Declarant or the Master Association, as the case may be.

Section 10.14 Additional Easements
Declarant shall have the right to grant over, under, across and upon any portion of the Property owned by Declarant, and the Master Board shall have the authority, in its sole discretion, to grant over, under, across and upon the Common Areas, such easements, rights-of-way, licenses and other rights in accordance with or to supplement the provisions of this Declaration or as may otherwise be desirable for the development of the Property, by the execution, without further authorization, for such grants of easement or other instruments as may from time to time be necessary or desirable. Such easements may be for the use and benefit of persons who are not Master Association Members or Owners. After such time as the members of the Master Board are no longer appointed by Declarant, the Master Board shall cooperate with Declarant and execute such grants of easements over the Common Areas as may be desirable to Declarant for the development of the Project and the preservation and enhancement of Declarant’s interest therein.

Section 10.15 No Merger of Easements
The easements hereby established shall not be terminated by merger or otherwise, except upon execution and recordation of any instrument specifically terminating any such easement.

ARTICLE XI

MAINTENANCE BY OWNERS

Section 11.1 Duty of Maintenance
Except for those portions, if any, of a Lot or Tract which the Master Association or an Association may elect to maintain or repair hereunder or under any applicable Additional Declaration, the Owner of any Lot or Tract shall have the duty and responsibility, at such Owner’s sole cost and expense, to keep the Lot(s) or Tract(s) owned by such Owner, including Improvement thereon and ground and drainage easements or other rights-of-way incident thereto, in compliance with the covenants, conditions, restrictions and development standards contained in this Declaration (to the extent applicable), and in any applicable Additional Declaration, in accordance with the provisions of the Architectural and Landscape Guidelines, and in a well-maintained, safe, clean and attractive condition at all times. Such maintenance, as to unimproved and improved Lots or Tracts, shall include, but shall not be limited to, the following:

Prompt removal of all litter, trash, refuse and waste;
Keeping land, including any lawns and shrub beds, well maintained and free of trash, uncut grass and weeds;
Keeping all sediment resulting from land disturbance or construction confined to the respective Owner’s property; and complying with all governmental health and police requirements.

In addition, such maintenance, as to improved Lots or Tracts, shall include, but shall not be limited to, the following:

Lawn mowing on a regular basis;
Tree and shrub pruning;
Watering by means of lawn sprinkler system and/or hand watering as needed;
Keeping exterior lighting and mechanical facilities in working order;
Keeping lawn and garden areas alive;
Removing and replacing any dead plant material;
Maintenance of natural areas and landscaping in accordance with the Architectural and Landscape Guidelines;
Keeping parking areas and driveways in good repair;
Repainting of Improvements; and
Repair of damage and deterioration to Improvements, it being understood and agreed that if any Improvements are damaged or destroyed by fire or other casualty, then within six (6) months following the date such damage or destruction occurs, the Owner of the Lot or Tract on which such Improvements are situated, must repair and restore such damaged Improvements (in accordance with plans and specifications approved by the Architectural Control Committee and otherwise in accordance with the terms and provisions of this Declaration and of each Additional Declaration applicable thereto) or remove such damaged Improvements and restore the Lot or Tract to its condition existing prior to the construction of such Improvements.

Notwithstanding anything contained herein to the contrary, the above-described maintenance responsibilities as to any Lot or Tract shall commence only upon a Plat showing such Lot or Tract being recorded in the Office of the Register of Deeds of Caldwell County and upon the conveyance of such Lot or Tract by Declarant.

Section 11.2 Enforcement
If any Owner of any Lot or Tract has failed in any of the duties or responsibilities of such Owner as set forth in this Article XI, then the Master Board, and Declarant, jointly and severally, may give such Owner written notice of such failure and such Owner must within ten (10) days after receiving such notice (which notice shall be deemed to have been received upon deposit in an official depository of the United States mail, addressed to the party to whom it is intended to be delivered, and sent by certified mail, return receipt requested), perform the care and maintenance required or otherwise perform the duties and responsibilities of such Owner as described in this Article XI. Provided, however, that this cure period shall be extended for a time not to exceed sixty (60) days so long as Owner shall have commenced to cure such nonconformity and shall diligently prosecute the same. Should any such Owner fail to fulfill this duty and responsibility within such period, then the Master Association, acting through its authorized agent or agents, or Declarant (so long as it owns any portion of the Property), acting through its agent or agents, jointly or severally, shall have the right and power to enter onto the premises of such Owner and perform such care and maintenance without any liability for damages for wrongful entry, trespass or otherwise to any Person. The Owner of the Lot or Tract on which such work is performed shall be liable for the cost of such work, together with interest on the amounts expended by the Master Association or Declarant in performing such work computed at the highest lawful rate as shall be permitted by law from the date(s) such amounts are expended until repayment to the Master Association or Declarant, as the case may be, and for all costs and expenses incurred in seeking the compliance of such Owner with his duties and responsibilities hereunder, and such Owner shall reimburse the Master Association or Declarant, as the case may be, on demand for such costs and expenses (including interest as above provided). If such Owner shall fail to reimburse the Master Association or Declarant, as the case may be, within thirty (30) days after the mailing to such Owner of a statement for such costs and expenses, then, without limitation of any other rights of the Master Association or Declarant, the Master Association may impose a Special Individual Assessment against such o. Declarant has the right to assign to the Master Association the rights of Declarant under this Section 11.2.

ARTICLE XII

RIGHTS OF MORTGAGEES

Section 12.1 Rights of Mortgagees Any Mortgagee shall have the following rights, to wit:

To be furnished at least one copy of the annual financial statement of the Master Association, such annual statement and report to be furnished within ninety (90) days following the end of each fiscal year;
To be given notice by the Master Association of the call of any meeting of the Master Association Members, and to designate a representative to attend all such meetings;
To be given prompt written notice of any delinquency in the payment of assessments or charges owned by an Owner of a Lot, Tract and/or Dwelling Unit subject to the Mortgage of such Mortgagee, where such delinquency has continued for a period of sixty (60) days, or notice of any other default under this Declaration, the Master Bylaws or any rules and regulations promulgated by the Master Association by any Owner owning a Lot, Tract or Dwelling Unit encumbered by a Mortgage held by the Mortgagee;
To be given prompt written notice of any casualty loss or loss by eminent domain or other taking of the Common Areas or any Lot, Tract or Dwelling Unit encumbered by a Mortgage held by the Mortgagee;
To be given prompt written notice of any lapse, cancellation or material modification of any insurance policy of fidelity bond maintained by the Master Association;
To be given prompt written notice of any eminent domain or condemnation proceeding affecting the Property; and
To be given prompt written notice of any proposed action, which would require the consent of a specified percentage of votes of the Master Association Members.

Whenever any Mortgagee desires the provisions of this Section to be applicable to it, it shall serve or cause to be served written notice of such fact upon the Master Association by certified mail, return receipt requested, addressed to the Master Association and sent to its then current address, identifying the property in the Property upon which any such Mortgagee holds any Mortgage or identifying any property in the Property owned by it, together with sufficient pertinent facts to identify any Mortgage which may be held by it and which notice shall designate the place to which notices are to be given by the Master Association to such Mortgagee.

Section 12.2 Books and Records
Any Mortgagee will have the right to examine the books and records of the Master Association during any reasonable business hours.

Section 12.3 Payment of Taxes and Insurance Premiums
The Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge or lien against the Common Areas and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage upon the lapse of a policy for property owned by the Master Association and the persons, firms or corporations making such payments shall be owed immediate reimbursement therefore from the Master Association.

Section 12.4 Names and Addresses of Mortgagees
Upon request, each Owner shall be obligated to furnish to the Master Association the name and address of the holder of any Mortgage encumbering such Owner’s Lot, Tract and/or Dwelling Unit.

Section 12.5 Failure of Mortgagee to Respond
Any Mortgagee who receives a written request from the Master Board to respond to or consent to any action shall be deemed to have approved such action of the Master Association does not receive a written response from the Mortgagee within thirty (30) days of the date of the Master Board’s request.

Section 12.6 Assessment Lien Priority
Notwithstanding the rights of Mortgagees as set forth in this Article XII, nothing herein shall be construed as giving the lien of a Mortgage priority over an assessment lien as described in Section 4.11 hereof. Provided, however, that the Master Board shall have the power to subordinate such an assessment lien to the lien of any Mortgage in its sole discretion.

ARTICLE XIII

THE CLUB AND ANCILLARY FACILITIES

Section 13.1 Owner’s Covenants
With respect to the Club, the Club Property, the swimming pool and the tennis courts, the Owners of property in the Project shall be subject to the additional covenants that are set forth in this Article XIII.

Section 13.2 The Club
The “Club Property” is being developed by Declarant as a club and recreational area in conjunction with the development of the “Property”. Declarant or other parties may from time to time develop club facilities within the Club Property (including, without limitation, a clubhouse, tennis courts, and swimming pools [the “Club Facilities”]). The Club Facilities shall be developed and provided at the discretion of Declarant. The Club Owner at any particular time shall have the exclusive right to determine from time to time, at its sole discretion and without notice or approval of any change, how and b whom the Club Facilities shall be sued, it at all. By way of example, but not limitation, the Club Owner shall have the right to approve users and determine eligibility for use of the dv, to reserve use rights for future purchasers of property in the Property, to terminate any or all use rights, to change, eliminate or cease operation of any or all of the Club Facilities, to transfer an or all of the Club Facilities of the operation thereof to anyone (including, without limitation, a member-owned or equity club) and on any terms, to limit the availability of use privileges, and to require the payment of a purchase price, a membership contribution, an initiation fee, dues and other charges for use privileges.

The Club Property is a part of the Property and is hereby made subject to the covenants, conditions, restrictions, easements, charges and liens contained in this Declaration as more particularly set forth herein. The Club, the members of the Club, their visitors, guests and invitees shall have certain perpetual non-exclusive easements over the Property as set forth in Article X hereof; provided, however, that such easements as they relate to the use of the Common Area by the Club or its members, their visitors, guests and invitees shall be only as to those portions of the Common Area as is necessary for such persons’ use. Each Owner acknowledges that the use of the Common Areas by the Club or its Members, their visitors, guest and invitees may increase the number of people using the Common Areas. Any disputes as to what constitutes a normal purpose or what portions of the Common Area are necessary for such persons’ use shall, during the term of this Declaration, be determined by Declarant in its sole and absolute discretion. Declarant reserves the right, in its sole discretion and with no other approval being required, to impose upon the Common Area such other easements which are required for the use and enjoyment of the Club Property. The location of a Lot, Tract or Dwelling Unit within the Property may result in nuisances or hazards to such Lot, Tract or Dwelling Unit, or to persons on, making use of or in transit to or from such Lot, Tract or Dwelling Unit, as a result of normal Club operations. Each Owner covenants for itself, its successors in interest and assigns, and its contractors, sub-contractors, guests, and invitees that it shall assume all risks associated with such location, including, but not limited to, the risk of property damage or personal injury arising from club participants’ actions incidental to such Club activities, and shall indemnify and hold harmless the Master Association, any Association, Declarant, the Club Owner, the Club, any other entity owning or managing the Club, and any of their officers, directors, agents or employees, from any and all liabilities, claims or expenses, including attorneys’ fees and expenses, arising from such property damage or personal injury.

NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, NEITHER THE CLUB NOR ANY OF THE CLUB FACILITIES WILL BE COMMON AREA UNDER THIS DECLARATION, AND THE OWNERSHIP OF A LOT OR TRACT AND/OR MEMBERSHIP IN THE MASTER ASSOCIATION OR ANY ASSOCIATION DOES NOT IN ANY WAY CONFER ANY OWNERSHIP, INTEREST IN OR ANY EASEMENT OR RIGHT TO USE THE CLUB, THE CLUB PROPERTY OR ANY CLUB FACILITIES OR AMENITIES, AND NO SUCH INTEREST, RIGHT, EASEMENT OR RIGHT OF USE IS CREATED UNDER THIS DECLARATION BY IMPLICATION. THE CLUB MAY HAVE MEMBERS WHO ARE NOT OWNERS OR MEMBERS FO THE MASTER ASSOCIATION OR ANY ASSOCIATION.

Section 13.3 Pets
Any pet shall be kept on a leash whenever such pet is not on its owner’s property and shall be kept off the Club Property at all times unless specific areas are designated for pet access, solely at the discretion of the Declarant.

Section 13.4 Enforceability
The rights and obligations to implement the enforcement of the provisions of this Article XIII and of those portions of the other covenants, conditions and restrictions herein contained that are directed to the protection of and enjoyment of the Club Property, shall be and are hereby delegated to and become the sole responsibility of the Club Owner, its successors and assigns; provided, however, the Master Board shall also have the right, but not the obligation, to enforce any of the provisions of this Article XIII.

ARTICLE XIV

MISCELLANEOUS PROVISIONS

Section 14.1 Duration
This Declaration and the controls, covenants, restrictions and standards set forth herein shall run with and bind the Property and any Owner, and shall inure to the benefit of every Owner of a Lot in the Property and every Owner of any other portion Owner of the Property, including Declarant, and their respective heirs, successors and assigns, for a term of thirty (30) years beginning on the date this Declaration is recorded in the Office of the Register of Deeds of Caldwell County, North Carolina. At the end of such thirty (30) year period, the easements, covenants, conditions and restrictions set forth herein shall automatically be extended for successive period(s) of ten (10) additional years, unless prior to the expiration of a respective period, by two-thirds (2/3) vote of the Master Association Members, there shall be adopted a resolution to terminate these covenants and restrictions. Owners may vote in person or by proxy at a meeting duly called for such purpose at which a quorum is present, written notice of which shall have been given to all Owners at least thirty (30) days in advance of the date of such meeting, which notice shall set forth the purpose of such meeting. The foregoing shall not limit the right of Declarant to amend and/or supersede, in whole or in part, the terms and provisions hereof, as such right in favor of Declarant is described in Section 14.2 below.

Section 14.2 Amendment
Subject to the limitations hereinafter contained, this Declaration may be amended or modified at any time by a vote of no less than fifty-one percent (51%) of all votes entitled to be cast by the Master Association Members, which vote is taken at a duly held meeting of the Master Association Members, which vote is taken at a duly held meeting of the Master Association Members at which a quorum is present, all in accordance with the Bylaws. Provided, however, that if fifty-one percent (51%) of all votes entitled to be cast by Master Association Members cannot be obtained at such a meeting, then this Declaration may be amended by obtaining the vote of fifty-one percent (51%) of all votes present at a duly held meeting of the Master Association Members at which a quorum is present and by, within ninety (90) days of such a vote, obtaining written consent to such amendment by Master Association Members holding a sufficient number of votes to comprise, along with such voting Master Association Members, a total of fifty-one percent (51%) of all votes entitled to be cast by Master Association Members. . Further provided, that any amendment or modification to this Declaration must be consented to by Declarant so long as Declarant is the Owner of any Lot or other portion of the Property, which consent Declarant may grant or withhold in its sole discretion. Any amendment or modification upon which the vote of Master Association Members is required pursuant to this Section 14.2 shall become effective when an instrument executed by the Master Association Members voting for such amendment or modification is field of record in the Office of the Register of Deeds of Caldwell County, North Carolina; provided, however, that such an amendment or modification, in lieu of being executed by the Master Association Members voting for such amendment of modification has been voted on and approved by the requisite number of votes of the Master Association Members, as provided in this Section 14.2. in addition, Declarant, without obtaining the approval of any Master Association Members or any Owner or Owners other than Declarant, may make amendments or modifications hereto which are correctional in nature only and do not involve a change which materially affects the rights, duties or obligations specified herein. In addition to the foregoing rights, Declarant may, at Declarant’s option, amend and modify this Declaration and any Additional Declaration without obtaining the consent or approval of any other person or entity if such amendment or modification is necessary to cause this Declaration or any such Additional Declaration to comply with the requirements of FHA, VA, the Federal National Mortgage Association or other similar agency.

Section 14.3 Enforcement
The Master Association, an Association, Declarant or any Owner shall have the right, but not the obligation, on its own behalf or on behalf of others, to enforce the provisions of this Declaration or any Additional Declaration. Enforcement of the controls, covenants, conditions, restrictions, easements, development guidelines, charges and liens for which provision is made in this Declaration shall be by a proceeding at law or in equity (or otherwise, as provided in this Declaration) against any person or persons violating or attempting to violate any such control, covenant, condition, restriction, easement, development guideline, charge or lien, either to restrain such violation or to recover damages, and against the land to enforce any lien created by these covenants; and failure by the Master Association, an Association, Declarant or anyone to enforce any such control, covenant, condition, restriction, easement, development guideline, charge or lien shall in no event be deemed a waiver of the right to do so thereafter or of any other or future violation of any thereof.

Section 14.4 Severability of Provisions
If any paragraph, section, sentence, clause or phrase of this Declaration shall be or become illegal, null or void for any reason or shall be held by any court of competent jurisdiction to be illegal, null or void, the remaining paragraphs, sections, sentences, clauses and phrases would have been and are imposed irrespective of that fact that any one or more other paragraphs, sections, sentences, clauses or phrases shall become or be illegal, null or void.

Section 14.5 Notice
Except as otherwise set forth herein expressly, whenever written notice to an Owner, Master Association Member or Member (including Declarant) is required hereunder, such notice shall be given by the mailing of same, postage prepaid, to the address of such Owner, Master Association Member or Member appearing on the records of Declarant, the Master Association or the Association of which such Owner is a Member. If notice is given in such manner, such notice shall be conclusively deemed to have been given by placing same in the United States mail Properly addressed, with postage prepaid, whether received by the addressee or not. Declarant’s address as of the date of recording of this Declaration is Gunpowder, LLC, c/o Pitts and Cooke Realty Co., 825 3rd Street, N.W., Hickory, N.C. 28601.

Section 14.6 Titles
The titles, heading and captions which have been used throughout this Declaration are for convenience only and are not to be used in construing this Declaration or any part thereof.

Section 14.7 No Exemption
No Owner or other party may exempt himself from the coverage hereof or obligations imposed hereby by non-use of such Owner’s Lot(s) or other property located within the Project or the Common Area.

Section 14.8 Changes to Plans for the Project
Nothing contained herein shall be deemed to incorporate, by reference or otherwise, any plans or proposals promulgated by the Declarant with respect to the development of the Project, and Declarant, subject to the covenants, conditions and restrictions contained in this Declaration and any Additional Declaration, reserves the right to change any plans for the Project at any time and from time to time as Declarant may determine to be necessary based upon Declarant’s continuing research and design program and/or market conditions, and any plans for the Project shall not bind Declarant or its successors and assigns to adhere to such plans in the development of the Property or any part thereof. In addition, Declarant reserves the right to change, from time to time, the uses and densities that exist on any portion(s) of the Property owned by Declarant, subject to the covenants, conditions and restrictions contained in this Declaration and any Additional Declaration.

IN WITNESS WHEREOF, this instrument has been executed by the General Manager this the day and year first above written.

Gunpowder, LLC, a North Carolina Limited Liability Company
By Pitts & Cooke Realty Co., a North Carolina Corporation, its General Manager
By: Ted Coon, President
ATTEST:
Alfred R. Cooke, Secretary

North Carolina
Catawba County

I, Susan Jackson Wilson, a Notary Public, do hereby certify that Alfred R. Cooke personally came before me this day and acknowledged that he is Secretary of Pitts & Cooke Realty Co., a North Carolina corporation, which is the General Manager of Gunpowder, LLC, a North Carolina Limited Liability Company, and by authority duly given and as the act of the Corporation, as General Manager of Gunpowder, LLC, a North Carolina Limited Liability Company, the foregoing document was signed in its name by its President, sealed with its corporate seal, and attested by self as its Secretary.

WITNESS my hand and official seal this the 15th day of January

Susan Jackson Wilson
Notary Public
My Commission Expires 9-22-2001

North Carolina
Caldwell County

The foregoing Certificate of Susan Jackson Wilson a Notary Public of Catawba County, North Carolina, is certified to be correct. This instrument was presented for registration this 15th day of January, 1999, at 3:24 o’clock pm, and was recorded in the Office of the Register of Deeds of Caldwell County, North Carolina, in Book 1249, at Page 752.

Lois Greene by: (signature)
Register of Deeds

Exhibit “A”

THE PROPERTY

All that certain tract of land containing 209.31 acres, bound on the north by Duke Power Company’s Oxford Hydroelectric Project (Lake Hickory), on the east by lands now or formerly of Amanda Jan Starnes, on the south by lands now or formerly of P.J. Settlemyre, Lois Starnes Whisnant, Ray C. Starnes and wife, Sara C. Starnes, and on the west by lands now or formerly of Irene K. Starnes, as shown on plat of survey dated August 1, 1994, recorded in Plat Book 16, Page 99 in the office of the Register of Deeds for Caldwell County; AND BEING a portion of the land conveyed to Crescent Resources, Inc. by Duke Power Company by Deed recorded in Deed Book 601, Page 163, said land having been conveyed to Western Carolina Power Company by E. V. Starnes by Deed recorded in Deed Book 122, Page 261; AND BEING Tract I described in that certain North Carolina Special Warranty Deed made June 3, 1996 by Crescent Resources, Inc. to Gunpowder, LLC, a North Carolina Limited Liability Company, which was recorded in Deed Book 1165, Page 1454 on June 27, 1996 at 1:10 p.m. in the office of the Register of Deeds of Caldwell County.