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10000 38 BOOK PAGE 1251 0409 DECLARATION OF CONDOMINIUM BEACH HARBOUR THIS DECLARATION OF CONDOMINIUM made this 13th day of RECOVERIFIED SELAGA TUCKER REGISTER OF DEEDS NEW HARDER CO. NC APR 17 201 Pll '84 April 1984, by RGP ENTERPRISES, a limited partnership, with its principal place of business in New Hanover County, North Carolina, hereinafter referred to as "Declarant".

WITNESS ETH: THAT WHEREAS, Declarant is the owner, in fee simple, of certain real property, together with all improvements thereon, and appurtenances thereto, heretofore constructed or hereinafter constructed on said real property, located at Carolina Beach, New Hanover County, State of North Carolina, which said real property is more particularly described in Exhibit A attached hereto and made a part hereof by this reference; and WHEREAS, it is the desire and intention of Declarant, by the filing and recordation of this Declaration of Condominium in the Office of the Register of Deeds of New Hanover County, North Carolina, to submit said real property and all improvements, located thereon, and appurtenances thereto, to a plan of condominium unit ownership under the provisions of Chapter 47A of the North Carolina General Statutes and to submit the said condominium project to the provisions of said 47A of the North Carolina General Statutes.

NOW, THEREFORE, the Declarant does hereby publish and declare that all of said real property described in Exhibit A together with all improvements, and all appurtenances thereto, heretofore constructed or hereafter constructed thereon, is and shall be held, conveyed, hypothecated, encumbered, used, occupied, and improved subject to the covenants, conditions, restrictions, uses, limitations and obligations set forth hereinafter, all of which are declared

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conveyed, hypothecated, encumbered, used, occupied, and improved subject to the covenants, conditions, restrictions, uses, limitations and obligations set forth hereinafter, all of which are declared and agreed to be in furtherance of a plan for the improvement of said property and all of which shall be deemed to run with the land and shall be a burden to Declarant, its successors and assigns, and any person or entity acquiring or owning an interest in the real property and improvements described herein, or any subdivision thereof, their grantees, successors, heirs, executors, administrators, devisees and assigns.

ARTICLE I DEFINITIONS As used herein and in the By-Laws attached hereto and in all amendments hereto, unless the context requires otherwise: BOOK PAGE Section 1.1: "Act" means the Act set forth in Chapter 47A of the North Carolina General Statutes, as such may be supplemented or amended from time to time.

Section 1.2: "Assessment" means a share of the funds required for the payment of common expenses which from time to time is assessed against the unit owner by the Association.

Section 1.3: "Association" means the Port Carolina Homeowner': S Association, Inc., its successors or assigns.

Section 1.4: "Board of Directors" or "Board" means the Board of Directors of the Association and "Director" means a member of said Board of Directors.

Section 1.5: "By-Laws" means the By-Laws for the government of the condominium as they exist from time to time.

Section 1.6: "Common Areas and Facilities" means the portion of the condominium property owned, in undivided interest, by all the owners, as more specifically set forth herein.

Section 1.7: "Common Expenses" include the expenses of administration, maintenance, operation, repair and replacement, (including a capital

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t, by all the owners, as more specifically set forth herein.

Section 1.7: "Common Expenses" include the expenses of administration, maintenance, operation, repair and replacement, (including a capital reserve for repair, maintenance and replacement), of the common areas and facilities, and other expenses declared by the Association to be common expenses, as further defined in the Act.

Section 1.8: "Common Profits" means the balance of all revenues of the Association remaining after deduction of the common expenses.

Section 1.9: "Condominium Documents" means this Declaration, the By-Laws, Articles of Incorporation, the Rules and Regulations promulgated by the Board of Directors of the Association, and all other exhibits attached thereto and all other documents and regulations promulgated pursuant to the authority created herein and in the Act, and as such documents shall be amended or supplemented from time to time.

Section 1.10: "Declaration" means this instrument as it may be from time to time amended or supplemented.

Section 1.11: "Limited Common Areas and Facilities" means and includes those common areas and facilities which are reserved for the use of a certain unit or units to the exclusion of any other unit or units, as more specifically defined herein.

- 2 N I BOOK 1251 PAGE 041 Section 1.12: "Property" means and includes the lands described in Exhibit A attached hereto and incorporated hereby by reference together with any buildings and improvements located thereon.

Section 1.13: "Unit" or "Condominium Unit" means a part of the Property which is to be subject to private ownership and use, as designated on the exhibits attached to this "Declaration" and as further defined in the Act. The word "apartment", if used herein, is synonymous with

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is to be subject to private ownership and use, as designated on the exhibits attached to this "Declaration" and as further defined in the Act. The word "apartment", if used herein, is synonymous with the word "Unit" as defined herein.

Section 1.14: "Unit Owner" or "Owner" means a person or entity, or any combination thereof, who owns a unit.

ARTICLE II SUBMISSION OF PROPERTY Section 2.1: The Declarant, pursuant to the provisions of Chapter 47A of the North Carolina General Statutes, does hereby submit all of the said real property, together with all improvements thereon and described herein, described in said Exhibit A to the provisions of the Unit Ownership Act as set out in Chapter 47A of the North Carolina General Statutes.

ARTICLE III DESCRIPTION OF PROPERTY Section 3.1: All that certain lot, parcel, piece or plot of land with the buildings and improvements thereon erected or to be erected situated, lying and being the City of Wilmington, County of New Hanover, State of North Carolina, and more particularly described in Exhibit "A" attached hereto and made a part hereof by this reference.

Section 3.2: The name by which this condominium project shall henceforth be known is BEACH HARBOUR CONDOMINIUM (hereinafter referred to as "Beach Harbour").

ARTICLE IV DESCRIPTION OF BUILDINGS Section 4.1: The Declarant has constructed or will construct upon the Property described in Exhibit "A" attached hereto, two (2) multiunit buildings to be used for residential and lodging accomodation purposes as hereinafter provided. A plat of survey of the property by M. F. Underwood, R.L.S., showing the location of said buildings is attached hereto as Exhibit. "B" and made a part hereby by this reference.

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A plat of survey of the property by M. F. Underwood, R.L.S., showing the location of said buildings is attached hereto as Exhibit. "B" and made a part hereby by this reference.

3BOOK PAGE 1251 0412 Section 4.2: In general each multi-unit building has three (3) stories of living units and space and one open ground level underneath the structure for parking. The buildings are constructed primarily of wood frame on treated timber piles. Each living unit is all on one level and the unit designation of each unit, and its location are as shown on the map or plat of the condominium development attached hereto as Exhibit "C" consisting of 5 pages and incorporated herein by this reference. The approximate area and number of rooms in each unit is shown on said Exhibit "C". Reference should be made to said Exhibit "C" for a more complete and accurate description of each unit and any conflict between said Exhibit "C" and the generalized description contained in this Section 4.2 shall be resolved by reference to said Exhibit "C" for each of the twenty-seven units contained in the Port Carolina condominium.

Building #1 has a total of fifteen (15) units in it which consists of twelve two bedroom two bath units and three one bedroom one bath units.

The total gross square footage for Building #1 is approximately 11,451 square feet (enclosed space for living units) and contains units numbered 11-14, 21-24 and 31-34 which are two bedroom two bath units and units numbered 15, 25 and 35 which are one bedroom one bath units.

The two bedroom two bath units each consist of approximately 823.5 square feet of interior space and the one bedroom one bath units each consists of approximately 523 square feet of interior space.

Building #2 has a total of twelve (12) units in it which consists of

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square feet of interior space and the one bedroom one bath units each consists of approximately 523 square feet of interior space.

Building #2 has a total of twelve (12) units in it which consists of nine (9) two bedroom-two bath units and three (3) one bedroom-one bath units. The total gross square footage for Building #2 is approximately 8,874 square feet (enclosed space for living units) and contains units numbered 16-18, 26-28 and 36-38 which are two bedroom two bath units and units numbered 19, 29, and 39 which are one bedroom one bath units.

Units numbered 17-18, 27-28 and 37-38 each contain approximately 823.5 square feet of interior space. Units numbered 16, 26 and 36 each contain approximately 800.25 square feet of interior space. Units numbered 19, 29 and 39 each contain approximately 510.75 square feet of living space.

In addition each unit has an open air deck accessible only through the particular unit to which it is adjacent. Each unit has one or two bedrooms with one or two bathrooms, a combined living-dining room area, a kitchen and various closets for storage and linen.

-4BOOK PAGE 1251 0413 The buildings, in addition to the above mentioned items, have common outside parkings areas, units storage areas, general storage area, trash collection area, pool room, pool and pool deck.

ARTICLE V UNIT DESIGNATION Section 5.1: The unit designation of each dwelling unit, its location, approximate area, and immediate common areas and facilities to which it has access and other data necessary for its property identification are set forth in said Exhibit "C" which is attached hereto.

Section 5.2: Each unit is bounded both as to horizontal and vertical boundaries by the interior finished surfaces of its perimeter walls,

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on are set forth in said Exhibit "C" which is attached hereto.

Section 5.2: Each unit is bounded both as to horizontal and vertical boundaries by the interior finished surfaces of its perimeter walls, ceilings and floors which are shown on said plans, subject to easements reserved herein for such encroachments as are contained in each building, whether the same now exist or may be caused or created by existing construction, settlement or movement of the building, or by permissable repairs, construction or alterations.

Each open air deck is bounded horizontally by the interior finished surface of the floor and ceiling overhangs of the deck and are bounded vertically by the interior finished surface of interior plans of either the deck railing or perimeter walls of the decks.

ARTICLE VI COMMON AREAS AND FACILITIES Section 6.1: The common areas and facilities consist of the following: (1) The land on which the buildings are erected and lands surrounding the buildings as is more fully described in Article 3 above, excepting, however, any portion thereof included in a Unit.

(2) All parts of the multi-unit buildings situated on the land described in Exhibit A, other than the individual dwelling unit described in ARTICLE IV above and shown on Exhibit C attached hereto, including, without limitation all common foundations, columns, girders, beams, supports, road bearing walls, and other structural members.

(3) All stairways, stairwalls, and stairs and their compenents which give access to the units; and all halls or passageways, and their entrances.

- 5: BOOK PAGE 1251 0414 (4) All yards, landscaping, roads, driveways, parking areas, walkways paths, swimming pool, pool deck and any and all other recreational or community facilities.

entrances.

- 5: BOOK PAGE 1251 0414 (4) All yards, landscaping, roads, driveways, parking areas, walkways paths, swimming pool, pool deck and any and all other recreational or community facilities.

(5) All roofs, exterior walls and interior walls except those non-load bearing partition walls, non-common chases and suspended ceilings wholly with a unit.

any, (6) All central and appurtenant installations, apparatus and equipment for utility services, including, but not limited to power, light, gas, refrigeration, water, heating, air conditioning, telephone, sewer, mail, irrigation, and trash disposal, if supplied for the use and convenience of the unit owners.

(7) All other parts of the Property and all apparatus and installations existing in the building or upon the Property for common use or necessary or convenient to the enjoyment, existence, maintenance or safety of the Property, including, but not limited to the concrete walkways, if any.

Section 6.2: The undivided interest of each unit owner in such common areas and facilities is set forth in Exhibit "D" attached hereto and made a part hereof.

ARTICLE VII LIMITED COMMON AREAS AND FACILITIES Section 7.1: Each unit shall have reserved for its exclusive use as a limited common area the surface areas and ceilings of any decks accessible by normal means solely, from the unit. Each unit shall have a designated parking space as shown in Exhibit "C" which shall be numbered to correspond with the unit numbers and which shall be assigned to the corresponding unit number. In addition each unit shall have a unit storage area designated by number corresponding with the unit number to which that particular unit storage area is assigned, all as shown in Exhibit "C".

A.

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er. In addition each unit shall have a unit storage area designated by number corresponding with the unit number to which that particular unit storage area is assigned, all as shown in Exhibit "C".

A.

All non-load bearing walls located entirely within the unit; B. All materials, including, but not limited to, studs, sheetrock, plywood, carpet, paint, paneling, tile, vinyl or brick, attached to, or on, the inside surfaces or perimeter walls, floors, and ceilings of the unit; C. All doors, windows, screens, ventilation fans and vents located entirely within the unit or extending into the unit from the perimeter walls, floors or ceilings thereof; -6BOOK PAGE 1251 0415 D. All air handling units, ducts and components and all water, power, telephone, television and cable television, electricity, plumbing, gas and sewer lines located in the unit%;B provided, however, that the portion of said lines located in a common compartment for, or installation of, such lines shall be general common areas and facilities as described above.

Section 7.2: The limited common areas and facilities which are appurtenant to any unit(s) shall not be separated therefrom and shall pass with title to any unit(s), whether or not separately described. Subject to the limitations contained herein, the owners of any unit(s) shall have exclusive (100%) use, possession and control of the limited common areas and facilities appurtenant to such unit.

Section 8.1: ARTICLE VIII USE AND RESTRICTIONS ON USE Restrictions on Use: (a) Each unit is hereby restricted to single-family residential use by the owner thereof, his immediate family, guests, invitees and lessees.

(b) No immoral, improper, offensive or unlawful use shall be made of any unit or of the common areas or limited common areas and facilities, nor

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of, his immediate family, guests, invitees and lessees.

(b) No immoral, improper, offensive or unlawful use shall be made of any unit or of the common areas or limited common areas and facilities, nor any part thereof, and all laws, zoning ordinances and regulations of all governmental authorities having jurisdiction of the unit shall be observed.

No owner of any unit shall permit or suffer anything to be done or kept in his unit, or on the common areas or limited common areas and facilities, which will increase the rate of insurance on the unit, or which will obstruct or interfere with the rights of other occupants of the other units or annoy them by unreasonable noises, nor shall any owner undertake any use or practice which shall create and constitute a nuisance to any other owner of a unit or which interferes with the peaceful possession and proper use of any other unit or the common areas and facilities.

(c) The use of common areas, limited common areas and facilities, by the owner of a unit or units or owners of all units, and all other parties authorized to use the same, shall be at all times subject to such reasonable - 7 BOOK PAGE 1251 0416 rules and regulations as may be prescribed and established governing such use or which may be hereafter prescribed and established by the Association.

(d) No owner of a unit shall permit any structural modification or alteration to be made to such unit without first obtaining the written consent of the Association, which consent may be withheld in the event that a majority of the Board of Directors of the Association shall determine, in their sole discretion, that such structural modification or alterations would adversely effect or in any way endanger the condominium

y of the Board of Directors of the Association shall determine, in their sole discretion, that such structural modification or alterations would adversely effect or in any way endanger the condominium in part, or in its entirety. No owner shall cause any improvements or changes to be made on the exterior of the condominium (including painting or other decoration, or the installation of awnings, or the installation of electrical wiring, television or radio antenna or any other objects, machines or air conditioning units which may protrude through the walls or roof of the unit or condominium) or in any manner alter the appearance of the exterior portion of any building without the written consent of the Association being first had and obtained. No unit owner shall cause any object to be fixed to the common areas and facilities (including the location or construction of fences and the planting or growingof flowers, trees, shrubs or any other vegetation) or in any manner change the appearance of the common areas and facilities or limited common areas and facilities without the written consent of the Association being first had and obtained.

(e) No advertising, signs, billboards, unsightly objects, or nuisances shall be erected, placed or permitted to remain on the property, including but not limited to the individual units or common or limited common areas, nor shall the property or any part of it be used in any way or for any purpose which may endanger the health of or unreasonably disturb the owner of any residence or any resident thereof. No business activity of any kind whatever shall be conducted at any building or on any portion of the property; provided, however, the foregoing covenants shall not apply

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ence or any resident thereof. No business activity of any kind whatever shall be conducted at any building or on any portion of the property; provided, however, the foregoing covenants shall not apply to the business activities, signs and billboards of the Declarant, its agents or assigns, during the construction and sale period.

(f) No animals, livestock or poultry of any kind shall be raised, bred or kept on any part of the property.

8 BOOK.

PAGE 1251 0417 (g) The exterior of the units shall not be decorated by the individual unit owners in any manner without the prior written consent of the Board of Directors of the Association.

(h) No trailer of any sort, tent, barn, storage camper, shed, garage or other similar out building or structure shall be placed on the property at any time, either temporarily or permanently.

(1) No structure of a temporary character shall be placed upon the property at any time, provided, however, that this provision shall not apply to shelters and shed used by the Contractor during the construction of the multi-unit buildings or common area improvements or other necessary construction, it being clearly understood that these latter temporary structures may not, at any time, be used as residences or permitted to remain on the building site after completion of construction.

(j) All garbage and refuse from the individual units shall be deposited with care in garbage containers or receptacles intended for such purpose, said containers or receptacles to be kept at all times in the space provided therefor.

(k) It shall be the responsibility of each unit owner, and the Board of Directors of the Association, to prevent the development of any unclean, unsightly or unkept conditions of the limited and general common areas.

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the responsibility of each unit owner, and the Board of Directors of the Association, to prevent the development of any unclean, unsightly or unkept conditions of the limited and general common areas.

(1) So long as the Declarant shall retain ownership of any units, it may utilize any such unit or units for sales offices, models or other usage for the purpose of selling units with said project. The Declarant may assign this limited commercial usage right to any other person or entities as it may choose%3B provided, however, that when all units have been sold, this right of commercial usage by the Declarant, its successors and assigns shall immediately cease.

(m) The use of the condominium or any units therein may be further restricted under the By-Laws of the Association, its Rules and Regulations.

Section 8.2: All restrictions and affirmative obligations set forth in this Declaration shall run with the land and shall be binding on all parties and persons claiming under them for a period of twenty (20) years from the date of recordation of this Declaration, after which time said restrictions and obligations will be automatically extended for successive periods of ten (10) years, unless an instrument signed by the then -9BOOK PAGE 1251 0418 owners of condominium units entitled to vote at least ninety (90%) percent of the votes of the Association affected by such restrictions and obligations has been recorded agreeing to change such restrictions and obligations in whole or in part.

Section 8.3: In the event of a violation or breach of any of these restrictions, or of any other covenants of this Declaration, by any property owner, or agent thereof, the owners of other units or any of them, jointly or severally, shall have the right to proceed

se restrictions, or of any other covenants of this Declaration, by any property owner, or agent thereof, the owners of other units or any of them, jointly or severally, shall have the right to proceed at law or in equity to compel the compliance of the terms hereof or to prevent the violation or breach in any event. In addition to the foregoing, the Board of Directors of The Association shall have the right whenever there shall have been any violation of these restrictions to enter upon the property where such violation exists and summarily abate or remove the same at the expense of the owner, if after thirty (30) days written notice of such violation it shall not have been corrected or removed by the owner. Any such entry and abatement or removal shall not be deemed a trespass. The failure to enforce any right, reservation or conditions contained in this Declaration, however long continued, shall not be deemed a waiver of the right to do so hereafter, as to the same breach or as to a breach occurring prior or subsequent thereto and shall not bar or affect its enforcement.

The remedies set out herein for such violation or breach are cumulative with any other legal or equitable rights available to any entity or person. The invalidation by any court of any restrictions or obligations in this Declaration shall in no way affect any of the other restrictions, which shall remain in full force and effect.

Section 8.4; All present and future owners, tenants and occupants of units now in existence or to be constructed shall be subject to, and shall comply with the provisions of this Declaration.

The By-Laws and any Rules and Regulations as may be adopted in accordance with the By-Laws; said Declaration, By-Laws, Rules and Regulations may be amended from

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ith the provisions of this Declaration.

The By-Laws and any Rules and Regulations as may be adopted in accordance with the By-Laws; said Declaration, By-Laws, Rules and Regulations may be amended from time to time. The acceptance of a deed of conveyance, or the entering into of a lease, or the entering into occupancy of any unit shall constitute an agreement that the provisions of this Declaration, By-Laws, and any Rules and Regulations which may be adopted are accepted and ratified by such owner, tenant or occupant and all of such provisions shall be deemed and taken to be covenants running with the land and shall bind any person having any time any interest or estate in such 10$800K PAGE 1251 0419 unit as though such provisions were made a part of each and every deed of conveyance or lease.

Section 8.5: The uses contemplated by this Article, and the restrictions on use as set forth in this Article cannot be changed, amended, or modified without the written consent of the owners of all units, except as may be provided elsewhere in this Declaration.

ARTICLE IX PERSON TO RECEIVE SERVICE OF PROCESS Section 9.1: Jerry C. Woodell is hereby designated to receive Service of Process in any action which may be brought against or in relation to these condominium units. Said person's residence or place of business is 14.S. 5th St., Wilmington North Carolina, 28401 which is within the city and county in which the property is located. The Board of Directors may change the person designated to receive service of process by filing the appropriate information with the office of the Register of Deeds for New Hanover County.

ARTICLE X EASEMENTS Section 10.1: In addition to easements and rights established and/or reserved elsewhere in this Declaration, the easements and rights set

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Register of Deeds for New Hanover County.

ARTICLE X EASEMENTS Section 10.1: In addition to easements and rights established and/or reserved elsewhere in this Declaration, the easements and rights set out hereinbelow under Sections 10.2 through 10.7 are hereby established as covenants and burdens running with the real property and the improvements thereon.

Section 10.2: In case of emergency originating in or threatening any unit, regardless of whether the owner is present at the time of such emergency, the Board of Directors of the Association, or any other person authorized by it, or the managing agent, if any, shall have the right to enter such unit for the purpose of remedying or abating the cause of such emergency, and such right shall be immediate.

Section 10.3: Each unit and all common areas and facilities and limited common areas and facilities are hereby subjected to an easement for the repair, maintenance, expansion, reduction, inspection, removal, relocation or other service of or to all gas, electricity, television, telephone, water, plumbing, sewer, utility, drainage or other lines or other common areas and facilities, whether or not the cause of any or all of those activities originates in the unit in which the work must be performed.

- 11 Section 10.4: 800K 12511 PAGE Each unit owner shall have on easement in common with the other owners of all other units to use all pipes, wires, ducts, cables.

conduits, public utility lines and any other common areas and facilities located in any of the other units and serving his unit. Each unit shall be subject to an easement in favor of the owners of all other units to use pipes, ducts, cables, wires, conduits, public utility lines and any other common areas and facilities serving such other units and located

an easement in favor of the owners of all other units to use pipes, ducts, cables, wires, conduits, public utility lines and any other common areas and facilities serving such other units and located in such unit. The Board or its designee shall have the right of access to each unit to inspect the same, to remove violations therefrom and to maintain, repair or replace the common facilities contained therein or elsewhere.

Section 10.5: The initial and subsequent Boards may grant or assume easements, leases, or licenses for utility purposes for the benefit of the Property, including the right to install, lay, maintain, repair and replace water lines, pipes, sewer lines, gas mains, telephone and television wires and equipment and electrical conduits, and wires over, under, along and on any portion of the units, and/or common areas and facilities and limited common areas and facilities%; and each unit owner hereby grants to the Board, or its designee, the irrevocable power of attorney to execute, acknowledge and record for or in the name of the Association or each unit owner such instruments as may be necessary to effectuate the foregoing.

Section 10.6: In the event any portion of the common areas and facilities encroaches upon any unit, or any unit encroaches upon any other unit, or any unit encroaches upon the common areas and facilities, (whether the same now exists or may be caused or created by existing construction, settlement or movement of the buildings, or by permissible repairs, construction or alteration), a valid cross easement for any such encroachment, or encroachments, and maintenance of same is hereby created.

Section 10.7: Ingress and egress is reserved for pedestrian traffic over, through and across sidewalks, walks and lanes as the same, from time

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encroachments, and maintenance of same is hereby created.

Section 10.7: Ingress and egress is reserved for pedestrian traffic over, through and across sidewalks, walks and lanes as the same, from time to time, may exist upon the common areas and facilities; and for vehicular traffic over, through and across such portions of the common areas and facilities as from time to time may be paved and intended for such purposes, for all unit owners, their guests, families, invitees, lessees, the Association, and the Declarant, its successors and assigns.

-12BOOK PAGE 1251 0421 ARTICLE XI MAINTENANCE-OWNER Section 11.1: Without limiting any insurance voluntarily carried by the Association on limited common areas and facilities, all limited common areas and facilities, as described in Article VII hereof, shall be maintained (and, if owner desires, insured) by the owner. Any replacements or substitution of such limited common areas and facilities shall be compatible with any common areas and facilities affected thereby. The Association shall not be responsible for repairing, maintaining, or insuring such limited common areas and facilities.

Section 11.2: The owner of the dwelling unit to which an open air deck and parking space is appurtenant shall be responsible for the upkeep, repair, and maintenance of the surface floor area and railing thereof, of the deck and parking space. No change in color, material or finish shall be made, and no additions or fixtures shall be made without express written approval of the Board of Directors, based on actual samples and drawings acceptable to the Board of the proposed change. All remaining structural portions of said deck and parking space, if any, shall be considered common areas

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rectors, based on actual samples and drawings acceptable to the Board of the proposed change. All remaining structural portions of said deck and parking space, if any, shall be considered common areas and facilities as provided for in the remaining sections of this Declaration including specifically the maintenance, repair and upkeep of same.

Section 11.3: All parts of a condominium unit shall be kept in good condition and repair by and at the expense of the owner. The unit shall be maintained by the owner in a clean and safe condition, free of nuisance.

Each unit owner will promptly comply with any requirements of the insurance underwriters of the insurance for the common areas and facilities when so requested in writing by the Board or its designated agent. Any failure of an owner to repair, maintain or replace as may be required pursuant to the Condominium Documents or a determination by the Board or its designated agent that such failure will endanger or impair the value of the common areas and facilities or any unit, or the limited common areas and facilities belonging to another owner, may be, upon written notice to the owner of the nature of the required repair, maintenance or replacement, repaired or replaced by the Association at the expense of the unit owner, to be collected by special assessment as provided herein and in the By-Laws. Such assessment may include the · 13 BOOK PAGE 1251 0422 cost to the Association incurred in the abatement of any nuisance maintained by the unit owner therein.

ARTICLE XII THE ASSOCIATION Section 12.1: To provide for the administration and maintenance of Beach Harbour, and future construction, if any, by the unit owners, a nonprofit North Carolina corporation known and designated as

ON Section 12.1: To provide for the administration and maintenance of Beach Harbour, and future construction, if any, by the unit owners, a nonprofit North Carolina corporation known and designated as BEACH HARBOUR HOMEOWNERS' ASSOCIATION, INC. (hereinafter the "Association"), has been organized a true copy of its Articles of > Incorporation having been recorded in Book at Page as amended, in the Office of the Register of Deeds of New Hanover County, North Carolina, and the provisions thereon or incorporated herein by reference. The Association shall administer the operation and management of the condominium, Beach Harbour, as well as any units which are constructed in the future, if any, and shall undertake and perform all acts and duties incident thereto in accordance with the terms of its Articles of Incorporation and its duly adopted By-Laws.

A true copy of the original By-Laws are attached hereto as Exhibit E and incorporated herein by reference.

Section 12.2: Management of Association.

(a) Declarant shall be soley responsible and have all rights and control of the management of the Association, as herein described, for a period of time not to exceed one hundred twenty (120) days after seventy (70%) percent of the units in the condominium project have been conveyed to the unit purchasers. Within one hundred twenty (120) days after conveyance of seventy (70%) percent of the unit estates of the condominium project to the unit estate purchasers, or three years following the date of conveyance of the first conveyance in the condominium project, whichever first occurs, Declarant shall transfer the right and responsibility for management of the Association to the unit owners to be exercised through the Association. Such transfer of the rights and

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ever first occurs, Declarant shall transfer the right and responsibility for management of the Association to the unit owners to be exercised through the Association. Such transfer of the rights and responsibility for management of the Association will not preclude or prevent Declarant from exercising continued influence in the management of the Association through such votes as are allocated to Declarant through the ownership of units, Section 12.3: Until transfer of the rights and responsibility for management of the Association occurs, as set forth in the above paragraph, the Board of Directors of the Association shall consist of those three - 14 BOO PAGE 1251 0423 individuals as are appointed by the Declarant to the initial Board of Directors of the Association as stated in the Articles of Incorporation for the Association or the successors or replacements for such Directors as named by Declarant. The Board of Directors as described herein shall have the exclusive control and responsibility for the operation and management of the Association exercising powers, duties and obligations, free from interference or control of the purchasers of the unit estates.

Section 12.4: Membership and Voting Rights. Membership and voting rights in the Association shall be as provided in Article IV of the Articles of Incorporation referred to and incorporated herein as stated hereinabove subject to the Declarant's rights of management control of the Association as set out above.

Membership shall be mandatory for all unit owners of all units at Beach Harbour including units constructed at a future date; if any.

Section 12.5: Powers: The Association shall have all powers granted to it as stated in Article III of said Articles of Incorporation.

each Harbour including units constructed at a future date; if any.

Section 12.5: Powers: The Association shall have all powers granted to it as stated in Article III of said Articles of Incorporation.

Section 12.6: Common Expenses. The common expenses of the Association shall be shared by the unit owners in amounts determined by applying each unit owner's proportionate share of ownership in the common areas and facilities to the total common expenses of the Association, and as assessed against the unit owners, and their units as provided for hereinafter.

Section 12.7: Management and Maintenance.

(a) The Association, as a common expense, shall be responsible for the maintenance, repair, and replacement of all of the common areas and facilities, including those portions thereof which contribute to the support of the building or buildings, and all conduits, ducts, plumbing, wiring, and other facilities located in the common areas and facilities for the furnishing of utility and other services to the units and said common areas and facilities, and should any incidental damage be caused to any unit by virtue of any work which may be done or caused to be done by the Association in the maintenance, repair, or replacement of any common areas and facilities, the Association shall, at its expense, repair such incidental damage. Whenever the Association incurs expenses in the maintenance, replacement or repair of common areas or facilities - 15 -