Covenants

Waterford Point

Declaration of Covenants, Conditions and Restrictions

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS is made this 26th

day of October, 1988 by GC PROPERTIES, a North Carolina general partnership, hereinafter

referred to as "Declarant".

STATEMENT OF PURPOSE

Declarant is the owner of certain property in Mecklenburg County, North Carolina, which is more

particularly described on a map recorded in Map Book 22 at Page 726 in the Mecklenburg

County, North Carolina, Public Registry, reference to which is hereby made. Declarant desires to

create thereon an exclusive residential community of single-family residences to be named

WATERFORD POINT.

Declarant desires to insure the attractiveness of WATERFORD POINT and to prevent any future

impairment thereof, to prevent nuisances, to preserve, protect and enhance the values and

amenities of all properties within WATERFORD POINT and to provide for the maintenance and

upkeep of all common areas in WATERFORD POINT. To this end the Declarant desires to

subject the real property described herein to the covenants, conditions, restrictions, easements,

charges and liens hereinafter set forth, each and all of which is and are for the benefit of said

property and each owner thereof.

Declarant further desires to create an organization to which will be delegated and assigned the

powers of owning, maintaining and administering the common area in WATERFORD POINT,

administering and enforcing the covenants and restrictions contained herein and collecting and

disbursing the assessments and charges herein after created in order to efficiently preserve,

protect and enhance the values and amenities in WATERFORD POINT to insure the residents'

enjoyment of the specific rights, privileges and easements in the common area, and to provide

for the maintenance and upkeep of the common area.

To that end the Declarant has or will cause to be incorporated under North Carolina law,

WATERFORD POINT OWNERS' ASSOCIATION, INC., as a non-profit corporation for the

purpose of exercising and performing the aforesaid functions.

NOW, THEREFORE, Declarant, by this Declaration of Covenants, Conditions and Restrictions,

does declare that all of the property described herein is and shall be held, transferred, sold,

conveyed and occupied subject to the covenants, conditions, restrictions, easements, charges

and liens set forth in this Declaration which shall run with the real property and be binding on all

parties owning any right, title or interest in said real property or any part thereof, their heirs,

successors and assigns, and shall inure to the benefit of each owner thereof.

AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND

RESTRICTIONS FOR WATERFORD POINT

THIS AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND

RESTRICTIONS is made and entered into by the undersigned Lot Owners holding sixty-six and

two-thirds percent (66 2/3%) of the Lots, pursuant to the authority granted in Article XIV, Section

3 of this Declaration of Covenants, Conditions and Restrictions, originally recorded on October

26, 1988 in Book 5892 at Page 664, and as subsequently supplemented and amended

(“Declaration”).

STATEMENT OF PURPOSE

The Declaration allows for the amendment of its provisions by the recordation of a written

instrument duly executed and acknowledged by Lot Owners holding the required percentage of

Lots. The purpose of this document is to memorialize the following amendments to the

Declaration.

NOW, THEREFORE, the undersigned, being Lot Owners holding not less than sixty-six and

two-thirds percent (66 2/3%) of the Lots, agree, consent and approve the Amendment to the

Declaration as follows:

ARTICLE I

Definitions

Section 1. Association

"Association" shall mean and refer to WATERFORD POINT OWNERS' ASSOCIATION, INC., a

North Carolina non-profit corporation, its successors and assigns.

Section 2. Common Area

"Common Area" shall mean all real property (including the improvements thereto) owned by the

Association for the common use and enjoyment of the Owners. The Common Area to be owned

by the Association is all of the area labeled as "Water Access Lot" on the Map and all roads and

streets shown thereon (except for public roads and streets). In addition, the entrance to the

Development. shall also be a Common Area and shall consist of various landscaping together

with an entrance sign.

Section 3. Declarant

"Declarant" shall mean and refer to GC Properties, its successors and assigns and also shall

mean and refer to any person, firm or corporation which shall also be designated as a

"Declarant" by GC Properties hereafter when such designee becomes vested with title to two or

more undeveloped Lots for the purpose of causing dwellings to be constructed thereon, and any

such successor in title to GC Properties shall be a Declarant during such period of time as said

party is vested with title to two or more such Lots (whether undeveloped or developed and

unconveyed), but no longer.

Section 4. Development

"Development" shall mean and refer to WATERFORD POINT, a single-family residential

development.

Section 5. Lot

"Lot" shall mean and refer to any plot of land, with delineated boundary lines, appearing on the

Map with the exception of the Common Area and public roads and streets.

Section 6. Map

"Map" shall mean and refer to the maps of the Property as recorded in Book 22 at Page 726 in

the Mecklenburg County, North Carolina, Public Registry and the maps of any additions to the

Properties which may be recorded by Declarant in the Mecklenburg County, North Carolina,

Public Registry hereafter.

Section 7. Member

"Member" shall mean and refer to every person or entity who holds membership in the

Association.

Section 8. Owner

"Owner" shall mean and refer to the record owner, whether one or more persons or entities of a

fee simple title to any Lot, but excluding those having such interest merely as security for the

performance of an obligation.

Section 9. Property

"Property" or "Properties" shall mean and refer to the property described in Article II,

Section 1 hereof.

ARTICLE II

Property Subject To This Declaration And Within The Jurisdiction Of

Waterford Point Owners' Association, Inc.

Section 1. Property.

The real property which is and shall be held, transferred, sold, conveyed and occupied subject

to this Declaration, and within the jurisdiction of the Association is all that certain 35-acre parcel

located in Mecklenburg County, North Carolina, and shown on the Map.

ARTICLE III

Property Rights

Section 1. Ownership of Common Area.

After the conveyance of 75% of the Lots by Declarant to other Owners, Declarant shall convey

the Common Area to the Association. Notwithstanding the recordation of any Map or any other

action by Declarant or the Association, all Common Area (including the Common Area streets

and roads) shall remain private property and shall not be considered as dedicated to the use

and enjoyment of the public subject to the provisions of Article VIII hereof.

Section 2. Owners' Rights to Use and Enjoy Common Area.

Each Owner shall have the right to use and enjoy the Common Area which shall be appurtenant

to and shall pass with the title to his Lot, subject to the following:

a. the right of the Association to promulgate and enforce reasonable regulations governing

the use of the Common Area to insure the safety and rights of all Owners;

b. the right of the Association to charge reasonable admission and other fees for the use of

any recreational facility situated upon the Common Area;

c. the right of the Association to suspend the voting rights in the Association and right to

use the Common Area by an Owner for any period during which any assessment against

his Lot remains unpaid; and for a period not to exceed sixty days for any infraction of its

published rules and regulations; and

d. the right of the Declarant or the Association to grant utility, drainage and other easements

of the type and for the purposes set forth in Article IX across the Common Area.

Section 3. Owners' Easements for Ingress and Egress.

Every Lot shall be conveyed with a perpetual, non-exclusive right to use any roadway which

may be constructed by the Declarant and conveyed to the Association as part of the Common

Area for the purpose of providing access to and from each Lot.

Section 4. Delegation of Use.

Any Owner may delegate, in accordance with the Bylaws of the Association (a copy of which is

attached as Exhibit A), his right of enjoyment to the Common Area and facilities to the members

of his family, his guests, his tenants, or contract purchasers who reside on his Lot.

ARTICLE IV

Membership, Voting Rights And Control Of The Association

Section 1. Membership.

Every Owner of a Lot shall be a Member of the Association. Membership shall be appurtenant

to and may not be separated from ownership of any Lot. The Board of Directors of the

Association may admit owners of property contiguous to the Properties to membership in the

Association upon such terms as they shall in their sole discretion determine.

Section 2. Lots.

The voting rights of the Membership shall be appurtenant to the ownership of Lots. The

Owner(s) of each Lot shall collectively be entitled to one (1) vote. When more than one person

owns an interest (other than a leasehold or security interest) in any Lot, all such persons shall

be Members and the voting rights appurtenant to said Lot shall be exercised as they, among

themselves, determine, but in no event shall more than one (1) vote be cast with respect to any

Lot.

Section 3. Board of Directors

The Association shall be governed by a Board of Directors in accordance with the Bylaws.

ARTICLE V

Covenant For Maintenance Assessments

Section 1. Creation of the Lien and Personal Obligation for Assessments.

The Declarant, for each Lot owned within the Properties, hereby covenants, and each Owner of

any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such

deed, is deemed to covenant and agree to pay to the Association annual assessments or

charges and special assessments for capital improvements, established and collected as

hereinafter provided. Any such assessment or charge, together with interest, costs, and

reasonable attorney's fees, shall be a charge and a continuing lien upon the Lot against which

each such assessment a charge is made. Each such assessment or charge, together with

interest, costs and reasonable attorney's fees, shall also be the personal obligation of the Owner

of such Lot at the time when the assessment fell due. The personal obligation for delinquent

assessments or charges shall not pass to an Owner's successors in title unless expressly

assumed by them.

Section 2. Purpose of Annual Assessments.

The annual assessments levied by the Association shall be used as follows:

a. to maintain all roads constructed within the Common Area to the standard of maintenance

which would be required by the State of North Carolina before it would accept such roads

for maintenance;

b. to maintain any trails or paths in the Common Area in an easily passable condition, free

from fallen trees, undergrowth, and other obstructions; to keep all dead, diseased or

decaying trees, shrubs and bushes removed from such areas and to replace such items

with new trees, shrubs and bushes;

c. to maintain a concrete boat ramp of standard length and width on the Common Area

described as the "Water Access Lot" on the Map;

d. to maintain a parking lot with no greater than ten (10) parking spaces on the Common Area

described as the "Water Access Lot" on the Map;

e. to maintain a pump station on the Common Area described as the "Water Access Lot" on

the Map to provide service to the Owners;

f. to keep the Common Area clean and free from debris and to maintain any amenities

located thereon in a clean and orderly condition, and to maintain the landscaping thereon in

accordance with the highest standards for private parks including any necessary removal

and replacement of landscaping;

g. to provide such security services as may be deemed reasonably necessary for the

protection of the Common Area from theft, vandalism, fire and damage from animals;

h. to provide such garbage removal services as may be approved by the Association for all

Lots;

I. to pay all ad valorem taxes levied against the Common Area and any property owned by-the

Association;

j. to install and maintain light fixtures along all roads and streets in the Development to provide

street lighting therefore;

k. to maintain an entrance sign at the entrance to the Development and a sign or signs on the

Common Area designated as "Water Access Lot" on the Map, said signs to be of standard

construction and quality;

l. to pay the premiums on all hazard insurance carried by the Association on the Common

Area and all public liability insurance carried by the Association pursuant to the Bylaws;

m. to pay all legal, accounting and other professional fees incurred by the Association in

carrying out its duties as set forth herein or in the Bylaws; and

n. to maintain a contingency reserve equal to 10% of the sum of the amounts described in

subsections (a) through (m) above in order to fund unanticipated expenses of the

Association.

Section 3. Maximum Annual Assessment.

For the year ending December 31, 2007, the maximum annual assessment for each Lot shall be

Five Hundred Dollars ($500.00).

a. Beginning on January 1, 2008, the maximum annual assessment established above may

be increased, effective January 1 of each calendar year without a vote of the membership,

provided that the increase not exceed 5% of the maximum annual assessment for the

preceding calendar year. If the actual annual assessment is not equal to the maximum

amount permitted under terms of this provision, the difference between any actual increase

which is made and the maximum increase permitted for that year shall be computed and the

assessment may be increased by that amount in a future year at the election of all members

of the Board of Directors without a vote of the membership, which increase shall be in

addition to the maximum increase permitted under the terms of the preceding sentences.

b. In addition to increases pursuant to Section 3(a) above, the maximum annual assessments

may be increased without limitation if such increase is approved by fifty-one percent (51%)

of all of the votes to which all Members are entitled. Such voting may be represented in

person or by proxy at a meeting duly called for this purpose.

c. The Board of Directors may fix the annual assessments at amounts not in excess of the

maximum.

Section 4. Special Assessments for Capital Improvements.

In addition to the annual assessments authorized above, the Association may levy, in any

assessment year, a special assessment applicable to that year only for the purpose of

defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement

of a capital improvement upon the Common Area, including fixtures and personal property

related thereto, and the common roadways serving the Development provided that any such

assessment requires the same assent of the Members as provided in Section 3(b) of this Article.

Section 5. Assessment Rate.

Both annual and special assessments must be fixed at a uniform rate for all Lots.

Section 6. Notice and Quorum for Any Action Authorized Under Sections 3 and 4.

Written notice of any meeting called for the purpose of taking any action authorized under

Section 3 or 4 shall be sent to all Members not less than thirty (30) days nor more than sixty

(60) days in advance of the meeting. At such meeting the presence of Members or of proxies

entitled to cast fifty-one percent (51%) of all the votes of each Class of membership shall

constitute a quorum. If the required quorum is not present, subsequent meetings may be called,

subject to the same notice requirement, until the required quorum is present. No such

subsequent meeting shall be held more than sixty (60) days following the preceding meeting.

Section 7. Date of Commencement of Annual Assessments: Due Dates.

The annual assessments provided for herein shall commence as to all Lots on the first day of

the month following the conveyance to the Association of the Common Area. The first annual

assessment shall be adjusted according to the number of months remaining in the calendar

year. The Board of .Directors shall fix the amount of the annual assessment against each Lot at

least thirty (30) days in advance of each annual assessment period. Written notice of the annual

assessment shall be sent to every Owner. The due dates shall be established by the Board of

Directors. The Association shall, upon demand, and for a reasonable charge, furnish a

certificate signed by an officer of the Association setting forth whether the assessments on a

specified Lot have been paid. A properly executed certificate of the Association as to the status

of assessments on a Lot is binding upon the Association as of the date of its issuance.

Section 8. Effect of Nonpayment of Assessments: Remedies of the Association.

Any assessment not paid within thirty (30) days after the due date shall bear interest from the

due date at the rate of eighteen percent (18%) per annum. In addition to such interest charge,

the delinquent Owner shall also pay such late charge as may have been theretofore established

by the Board of Directors of the Association to defray the costs arising because of late payment.

The Association may- bring an action at law against the delinquent Owner or foreclose the lien

against the Lot, and interest, late payment charge, costs and reasonable attorney's fees of such

action or foreclosure shall be added to the amount of such assessment. No Owner may waive

or otherwise escape liability for the assessments provided for herein by not using the Common

Area or abandoning his Lot.

Section 9. Subordination of the Lien to Mortgages.

The lien of the assessments provided for herein shall be subordinate to the lien of any first

mortgage or deed of trust on a Lot or any mortgage or deed of trust to the Declarant. Sale or

transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot

pursuant to mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of

such assessments as to payments which became due prior to such sale or transfer; provided,

however, that the Board of Directors may in its sole discretion, determine such unpaid

assessments to be an annual or a special assessment, as applicable, collectable pro rata from

all owners including the foreclosure sale purchaser. Such pro rata portions are payable by all

Owners notwithstanding the fact that such pro rata portions may cause the annual assessment

to be in excess of the maximum permitted under Section 3. No sale or transfer shall relieve the

purchaser of such Lot from liability for any assessments thereafter becoming due or from the

lien thereof, but the lien provided for herein shall continue to be subordinate to the lien of any

mortgage or deed of trust as above provided.

ARTICLE VI

Architectural Standards

The Architectural Committee (“Committee”) is responsible for carrying out the functions set forth

in this Article VI. The Board of Directors shall appoint the members of the Architectural

Committee.

Section 1. Definitions.

For purposes of this Article VI, the following terms shall have the following meanings unless the

context clearly requires a different meaning:

a. "accessory building" means every detached garage, carport, boat shed, tool shed, storage

or utility building, boat dock, boat slip, well house, detached guest quarters, detached

servants' quarters or other similar building constructed on a Lot or incidental thereto

(whether above or below the elevation of the contours of Lake Norman) which is not a

dwelling;

b. "buildings" means accessory buildings and dwellings;

c. "dwelling" means a building constructed for single family residential use but excluding

detached servants' quarters and guest quarters; and

d. "improvements" or "structures" mean buildings, walls, fences, decks, patios,' planters,

terraces, swimming pools, tennis courts or anything else constructed on a Lot.

Section 2. General Guidelines.

The placement and construction of improvements on the Lots shall be subject to the following

general requirements:

(a) Every dwelling constructed on a Lot shall contain the minimum number of square feet of

fully enclosed floor space as follows:

2,000 square feet for one-story dwellings;

1,000 square feet on the first level for two story dwellings; and

1,200 square feet on the first level for one and one-half story dwellings.

For purposes hereof, the "fully enclosed floor area" of a dwelling shall (i) include any

screened porch if the roof thereof forms an integral part of the roof line of the main dwelling or

if such screened porch is on the first story or level of a multi-story building and (ii) exclude-

decks, patios, terraces, attached garages and carports, accessory buildings and roofed or

unroofed but unscreened porches. If a dwelling incorporates a basement, such basement

shall not be considered a "level" or "story" and the level of the dwelling immediately above

the basement shall be considered the "first level" or "first story" of such dwelling for purposes

of this subsection (a) of this Section 2.

(b) No basement shall be incorporated in a dwelling to be constructed upon a Lot unless such

basement is constructed substantially beneath or under the ground upon which the dwelling

is located. Notwithstanding anything herein to the contrary, no one and one-half story

dwelling or two story dwelling shall include a basement unless (i) the Committee determines

that such dwelling is to be located on a Lot where the terrain is suitable for the construction

of such basement substantially beneath or under the ground comprising such Lot; and (ii)

the Committee determines that the construction of such two story dwelling with a basement

would not detract from the general scheme of the Development.

(c) Since the establishment of standard inflexible building set back lines for location of dwellings

on Lots tends to force construction of dwellings both directly behind and directly to the side

of other dwellings with detrimental effects on privacy, preservation of important trees, etc.,

no specific setback lines are established by these covenants except as shown on the Map.

In order to assure, however, that location of dwellings will be staggered where practical and

appropriate, so that the maximum amount of view will be available to each dwelling; that all

structures will be located with regard to the topography of each individual Lot, taking into

consideration the elevation contours of the Lot, the location of large trees and fields and

similar considerations, the Declarant reserves unto itself, its successors and assigns, the

right to control absolutely and solely to decide the precise site and location of any structure,

improvements and utilities upon all Lots and every Lot within the subdivision; provided,

however, that such location shall be determined only after reasonable opportunity is

afforded the Owner to recommend a specific site and in any event all buildings shall be

constructed beyond the minimum set back lines established on the Map.

(d) All boat and trailer storage areas and facilities must be screened and hidden from view

except for piers or boat slips located within the contours of Lake Norman. All piers (and to

the extent applicable, boat slips) must comply with Mecklenburg County zoning ordinance or

be approved by the Lake Norman Marine Commission. No walled structure may be built on

any pier.

(e) Unless specifically otherwise approved in writing by the Committee, all structures

constructed or placed on any Lot shall be built of substantially new materials and no used

structures shall be relocated or placed on any such Lot.

(f) All structures approved by the Committee must be completed within one (1) year after the

receipt of such approval; provided, however, the Committee may waive this requirement if

construction delays have been caused by strikes, war, fire, acts of God or other events

which render the completion of construction within such time impossible.

(g) All driveways, turning areas and parking areas shall be surfaced with concrete or asphalt, at

a minimum, must be structurally edged for good delineation and must be completed prior to

the occupancy of any dwelling on the Lot. If any driveway is to cross a drainage ditch, the

Owner will be required to install, at his own expense, all necessary culverts and coverings

prior to the commencement of any other construction on the Lot. The installation of the

culvert and any covering must be approved by the Committee.

(h) The Committee shall have the right to approve or disapprove the design and construction of

all mailboxes.

Section 3. Approval of Plans, Specifications, and Construction for Improvements to any

Lot.

Every structure erected on a Lot shall comply with the requirements imposed by all applicable

governmental agencies (including the Environmental Health Department) governing the

issuance of building permits and certificates of occupancy as well as the requirements of these

Amended and Restated Declaration of Covenants. No accessory building, building, dwelling,

improvements or structures shall be erected or constructed on any Lot without the approval of

the Committee as provided in this section.

(a) Conditions and Restrictions

(1) Prior to the commencing any construction or reconstruction on a Lot, the Owner thereof

shall submit to the Committee two sets of all building plans and specifications (the "Plans")

covering such construction.

(2) At the time of the submission of the Plans, the Owner shall also submit samples of all

proposed building materials as may be requested by the Committee, it being intended that

all external materials shall be generally of earth tones, such as browns, grays, etc.

(3) The Committee shall have the right to refuse the proposed Plans, which refusal shall be

in the Committee’s sole discretion. In passing upon such Plans and samples, the

Committee may take into consideration the suitability and desirability of the proposed

improvement and the proposed materials to the improvement involved, as well as the

harmony of the external design with the natural features and the existing structures of the

surrounding neighbors. If the Committee approves the construction of the improvements, it

shall issue a letter evidencing such approval. If the Committee disapproves the

construction, it shall issue a letter of explanation for the denial and permit the Owner to

submit a revised application.

(4) No alterations in the external appearance of any structure shall be made without

approval by the Committee as provided herein; provided, however, that no approval by the

Committee granted hereunder shall constitute or be construed as approval by the

Committee or Association of the structural stability or quality of any structure. Refusal to

approve the proposed Plans may be based by the Committee on purely aesthetic

considerations.

(b) Right of Appeal

Any Owner has the right to appeal decisions made by the Architectural Committee, provided

the Owner is not in violation of any of the restrictions outlined in this Article VI or Article VII,

Section 1 of this Declaration. Any such appeal must be made in writing to the Board of

Directors within five days of the date of the denial or disapproval of the Plans by the

Committee. The Board of Directors will then provide the Owner with a date upon which a

hearing will be held for the Owner to be heard and present evidence regarding their Plans.

Within five days of the hearing, the Board of Directors will issue a written decision regarding

the outcome of the appeal. The Board’s decision will be final.

ARTICLE VII

Use Restrictions

Section 1. Land Use.

All Lots shall be used for residential purposes only and common recreational purposes auxiliary

thereto and for no other purpose. Only one family may occupy a Lot as a principal residence at

any one time. No structure, except as herein provided shall be erected, altered, placed or

permitted to remain on any Lot other than one (1) detached single family dwelling, one

accessory building which may include a detached private garage and servant's quarters and a

swimming pool, provided the use of such dwelling or accessory building or pool does not

overcrowd the-site and provided further, that such building is not used for any activity normally

conducted as a retail business, whereby customers would visit the business. Such accessory

building may not be constructed prior to the construction of the main building. A guest suite or a

like facility may be included as part of the main dwelling or accessory building, if such guest

suite would not result in overcrowding the site, but such suite may not be rented or leased

except as part of the entire premises including the main dwelling.

Section 2. Nuisance.

No noxious or offensive activity shall be conducted upon any Lot or in any dwelling nor shall

anything be done thereon or therein which may be or may become an annoyance or nuisance to

the neighborhood.

Section 3. Animals.

No animals, livestock, or poultry of any kind shall be kept or maintained on any Lot or in any

dwelling except that dogs, cats or other common household pets may be kept or maintained

provided they are not kept or maintained for commercial purposes.

Section 4. Use of Common Area.

The Common Area shall not be used in any manner except as shall be approved or specifically

permitted by the Association.

Section 5. Access to Lots.

The Association, its agents or employees shall have access to each Lot from time to time during

reasonable working hours, upon oral or written notice to the Owner, as may be necessary for

the maintenance, repair or replacement of any portion of the Common Area, or facilities situate

upon such Lot which serve another Owner's Lot. The Association or its agent shall also have

access to each Lot at all times without notice as may be necessary to make emergency repairs

to prevent damage to the Common Area or another Lot.

Section 6. Signs.

No signs, including business signs or other forms of advertisement, shall be placed on any Lot

or on the Common Area without prior written permission of the Association. Exceptions include

a single sign advertising a home “For Sale”, temporary garage sale signs, family or

neighborhood social event signs, and safety or warning signs.

Section 7. Plumbing.

All plumbing, dishwashers, toilets and sewage disposal systems shall be connected to a central

sewer system available to the Lot.

Section 8. Removal of Trees.

No trees measuring twelve (12) inches or more in diameter as measured three (3) feet up from

the ground level may be removed without the written approval of the committee unless such

trees are located within ten (10) feet of the approved dwelling or any approved accessory

building.

Section 9. Fuel Tanks and Garbage Containers.

All fuel storage tanks shall be buried below the surface of the Lot or screened by fencing or

shrubbery as approved by the Committee. All outdoor receptacles for ashes, trash, rubbish or

garbage shall either be installed in the ground or screened or placed so as not to be visible from

any street, other Lot, or Common Area.

Section 10. Maintenance.

All Owners shall keep their Lots, whether occupied or unoccupied, free of all tall grass,

undergrowth, dead, diseased or decaying trees, weeds, trash, rubbish, and debris and to keep

all Lots in a neat and attractive condition. All improvements erected on Lots shall be maintained

in a clean, neat, and orderly condition and in a good state of maintenance and repair. All owners

shall maintain their boat docks, piers and slips in structurally sound, neat and attractive

condition and state of repair. All owners of Lots fronting on Lake Norman shall maintain any rip-

rap, bulkheads or other construction on their Lot designed to prevent erosion or silting.

Section 11. Boardwalk

Waterford Point includes a wooden boardwalk of approximately eight (8) feet in width, without

handrails, running from Lot No. 2 to the Water Access Lot, as depicted on the Graphic Site Plan

by E.S.P. Associates, P.A. dated January, 1988. Each Lot Owner shall maintain that portion of

said boardwalk running with the boundary line of such Owner’s lot in a good condition and state

of repair, including periodic pressure washing and staining. The Association will advise the Lot

Owners as to the earth tone or clear stain to be used for the boardwalk. The entire boardwalk

must be maintained in a consistent manner. Said Lot Owners shall indemnify and hold the

Association harmless from any loss, damage, cost, expense or any other form of liability arising

from such Lot Owners’ maintenance of said boardwalk. .

Section 12. Vehicles and Parking

Parking of any vehicle on the street overnight is prohibited. Commercial trucks with over 2 axles

and over 10,000 lbs. shall not be parked anywhere on the Property. Vehicles with protruding

equipment attached to the hood, bed, roof, or sides are also prohibited on the Property. No

boat, trailer, recreational vehicle, camper, motorcycle or commercial vehicle shall be parked,

stored or left anywhere on the Property unless the same is fully enclosed within a garage

located on a Lot with doors closed except when opened to permit ingress or egress; provided

however, that such may be temporarily parked in the driveway of a Lot for a period not to

exceed 24 hours in any seven day period. The association is specifically authorized to tow any

vehicle remaining on the street in violation of this Section 12.

Section 13. Antennas/Satellite Dishes

No radio or television aerial or antenna or any other external electronic equipment or devices

may be installed or maintained on any exterior of any structure erected on a Lot unless the item

is screened from view from the streets, the lakes and other improvements constructed upon

other Lots. Satellite "dishes" and antennas shall be in accordance with current Federal

Communications Act and FCC rules promulgated in accordance therewith.

Section 14. Fences and Hedges

The erection or installation of all fences and hedges may be undertaken only with the approval

of the Committee and in no event will the maximum height of fences or hedges be permitted to

exceed six (6) feet in height. Notwithstanding anything to the contrary, the Committee may

install or approve fences or hedges along the boundaries of Lots or Common Area which are

situated along the boundaries of the Development in order to provide privacy or screening for

the Development.

Section 15. Reconstruction

Any building on any Lot which is destroyed in whole or in part by fire, windstorm, flood or other

Act of God must be rebuilt, or all debris from such building removed and the Lot restored to the

condition it was in prior to commencement of construction of such building with reasonable

promptness; provided, however, that any such reconstruction must be commenced within six (6)

months from the date of such destruction or if no reconstruction, is to occur, then all such debris

must be removed and the Lot restored to its prior condition within six (6) months of such

destruction.

Section 16. Subdivision

No Lot shall be subdivided or its boundary lines changed without the written consent of the

Association.

Section 17. Leasing

No building on any Lot may be leased except in accordance with rules and regulations

promulgated by the Association.

Section 18. Hazardous Activities

Nothing shall be done or kept on any Lot or in the Common Area which will increase the rate of

insurance on the Common Area or any other Lot without the prior written consent of, the Board

of Directors. No Owner shall permit anything to be done or kept on his Lot or in the Common

Area which would result in the cancellation of insurance on any part of the Common Area, or

which would be in violation of any law.

Section 19. Regulations

Reasonable regulations governing the use of the Common Area and external appearance of all

buildings and structures erected on the Lots may be made and amended from time to time by

the Board of Directors of the Association; provided, however, that all such regulations and

amendments thereto shall be approved by a majority vote of the owners before the same shall

become effective. Copies of such regulations and amendments thereto shall be furnished to

each Member by the Association upon request.

Section 20. Compliance

In the event that the Owner of any Lot fails to comply with any of the restrictions set forth in this

Article or the rules and regulations subsequently promulgated by the Association, the

Association shall have the right, but not the obligation, to enter any Lot and undertake any

necessary action in order to cure such Owner's default. All expense and cost incurred by the

Association in curing such default shall be charged to the defaulting Owner as an assessment

upon the Lot and shall be immediately due payable by such Owner. Any and all costs incurred

will be in compliance with the current state laws governing attorney’s fees, late fees, and

foreclosure processes. The rights set forth in this Section 20 shall be in addition to the

Enforcement provisions in Article XIII, Section 1.

ARTICLE VIII

Special Restrictions Affecting Common Area

Section 1. Purpose

It shall be the intent and purpose of these restrictions and covenants to maintain and enhance

the Common Area, to afford and enhance recreation opportunities, and to implement generally

the WATERFORD POINT master plan for development.

Section 2. Buildings

No building', tent, trailer, or other structure, either temporary or permanent, except as noted

elsewhere herein, shall be erected or caused to be placed on the Common Area.

Section 3. Declarant's Rights to Protect Land

The Declarant shall have the right to protect the Common Area from erosion by planting trees,

plants and shrubs where and to the extent necessary or by such mechanical means as

bulkheading, or other means deemed expedient or necessary by Declarant. The right is likewise

reserved to the Declarant to take necessary steps to provide and insure adequate drainage

ways in the Common Area.

Section 4. Declarant's Right of Entry

The Declarant reserves unto itself, its successors and assigns the right to go on, over and under

the ground to erect, maintain and use electric and telephone poles, wires, cables, conduits,

sewers, water mains and other suitable equipment for the conveyance and use of electricity,

telephone equipment, gas, sewer, water or other public conveniences or utilities in the Common

Area. These reservations and rights expressly include the right to cut any trees, bushes or

shrubbery, make any grading of the soil, or take any other similar action reasonably necessary

to provide economical and safe utility installation and to maintain reasonable standards of

health, safety and appearance. The Declarant further reserves the right to locate wells, pumping

stations and tanks within the Common Area. Such rights may be exercised by any licensee of

the Declarant, but this reservation shall not be considered an obligation of the Declarant to

provide or maintain any such utility or service.

Section 5. Restrictions on Water Access Lot

The “Water Access Lot” shall be restricted to use as a natural area and for boat launching for

the Owners and their guests. The use other than as a natural is prohibited; provided, however,

that the Association may use the Lot for neighborhood social functions.

Section 6. Prohibition Against Dumping

No dumping of trash, garbage, sewage, sawdust shall occur and no unsightly or offensive

material shall be placed upon the Common Area, except as is temporary and incidental to the

bona fide improvement of the area in a manner consistent with its classification as Common

Area.

Section 7. No Public Rights

The establishment of the Common Area does in no way grant to the public or to the owners of

any surrounding or adjacent land, the right to enter such Common Area without the express

permission of the Declarant.

Section 8. Rights Reserved By Declarant

The Declarant expressly reserves to itself, its successors and assigns, every reasonable use

and enjoyment of said Common Area, in a manner not inconsistent with the provisions of this

Declaration.

Section 9. Limitation of Declarant's Obligations

It is expressly understood and agreed that the establishment of the Common Area or the

declaration of these Special Restrictions does in no way place a burden of affirmative action on

the Declarant that the Declarant is not bound to make any of the improvements noted herein, or

extend to the grantee any service of any kind'.

Section 10. Declarant's Actions Permissive

Where the Declarant is permitted by these covenants to correct, repair, clean, preserve, clear

out or do any action on the restricted property, entering the property and taking such action shall

not be deemed a breach of these covenants.

Section 11. Dedication of Public Roads

Declarant reserves the right, at any time, to offer for dedication any or all- of the roads

designated on the Map as "public" to the North Carolina Division of Highways for acceptance of

said road or roads onto the State Highway System.

ARTICLE IX

Easements

Section 1. Easements Reserved by Declarant

Declarant reserves easements for the installation and maintenance of driveways, walkways,

parking areas, telephone and electric power lines, cable television lines, water and sewer lines,

drainage ditches and for other utility installations over the Properties and the Common Area.

Each Owner, by his acceptance of a deed to a Lot, and the Association by its acceptance of a

deed to the Common Area, acknowledges such reservations and the rights of Declarant to

transfer such easements to the Association or to such utility companies as Declarant may

chose. The easements reserved by the Declarant include the right to cut any trees, bushes or

shrubbery, make any gradings of the soil, or take any similar action reasonably necessary to

provide economical utility installation and to maintain the overall appearance of the

Development.

Within any such easements, no structure, planting or other material shall be placed or permitted

to remain which may interfere with the installation of utilities, or which may change the direction

of flow or drainage channels in the easements or which may obstruct or retard the flow of water

through drainage channels in the easements.

Section 2. Encroachments

Each Owner of a Lot with a fence, concrete walk or concrete patio which encroaches on the

Common Area owned by the Association shall have an easement over that portion of the

Common Area affected by the encroaching fence, walk or patio for the purpose of using said

portion of the Common Area for his own benefit and for the purpose of maintaining the

encroaching structure in good condition and repair. In the event of a fence encroachment, it

shall be the owner's responsibility to maintain the encroaching fence in good condition and

repair and also to maintain that portion of the Common Area located within the encroaching

fence (i.e., that portion of the Common Area between the Owner's Lot and said fence). In the

event of an encroachment by a concrete patio or walk, it shall be the owner's responsibility to

maintain the encroaching patio or walk in good condition and repair. Section 98.2 of the Town of

Cornelius Zoning Ordinance sets forth certain requirements for lots fronting on Lake Norman

before a permit for the construction of a pier, dock or boat slip (a "pier facility"), may be

obtained. Said requirements are based on the dimensions of the particular lot and the

calculation of a pier facility "envelope" within which the pier facility must be constructed. Each

Owner of a Lot with frontage upon Lake Norman hereby consents to the encroachment of a pier

facility into such Owner's pier facility "envelope" by the Owner of any adjacent Lot also fronting

on Lake Norman, in those cases where the pier facility "envelope" of the encroaching Lot Owner

is of insufficient area to comply with the applicable ordinances or regulations of the Town of

Cornelius Zoning Commission, the Lake Norman Marine Commission, or any other applicable

governmental agency or authority, provided, that, such encroachment shall not exceed the

minimum amount of area necessary for such pier facility to receive approval from the applicable

governing body.

ARTICLE X

Insurance

Each Owner shall secure and maintain in full force and effect at such Owner's expense, one or

more insurance policies insuring Owner's Lot and the improvements thereon for the full

replacement value thereof against loss or damage from all hazards and risks normally covered

by a standard "Extended Coverage" insurance policy, including fire and lightning, vandalism and

malicious mischief.

Each Owner, at Owner's expense, shall secure and maintain in full force and effect

comprehensive personal liability insurance for damage to person or property of others occurring

on Owner's Lot, any other Lot, or upon the Common Area, in an amount not less than the,

amount designated by the Association. Owner shall provide the Association with satisfactory

evidence that such insurance as herein required is in full force and effect and the Association

will be given thirty (30) days'