Salters Haven Founders Program Book | 2020

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FOUNDERS PROGRAM 2020


FOUNDERS PROGRAM MAY 2020

TABLE OF CONTENTS The Salters Haven Story

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Salters Haven Featured Builders • Logan Homes • Legacy Homes by Bill Clark

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The Developer: Logan Developers, Inc

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Salters Haven Approved Builders • Bell Custom Homes • Crane Building Company • Vahue Building • PBC Design + Build

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Frequently Asked Questions

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Boat Slips

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Boat Slip Contract

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Declaration of Protective Covenants

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Plat: Salters Haven at Lea Marina, Phase I

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Architectural Review Committee Design Guidelines

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CFPB Property Report

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Salters Haven Lot Contract

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THE SALTERS HAVEN STORY While Salters Haven at Lea Marina is the name of a great waterfront community, the meaning behind this name has far more significance.

The property was owned by the Lea Family , lived and flourished on the land for over 100 years. Mr. J.H. Lea, who was born in 1891, fished, farmed and cut timber on the property for many years. In addition, he operated a seafood company which he started in 1918 that soon became the well-known J.H. Lea & Sons Inc. Mr. Lea fished the local waters and surrounding beaches ultimately purchasing his own beach for fishing which is now known as Lea Island and is located across the Intracoastal Waterway from Salters Haven. His seafood business ran multiple routes delivering goods to seafood markets and grocery stores down the east coast through-out North Carolina, South Carolina, Georgia, and Florida. Since the local fishing in those early years was seasonal, Mr. Lea did a lot of farming. He invested in farmland when he could and one of the properties he purchased is now Salters Haven at Lea Marina. Bert Lea Sr. at just 16 years old took over the family farms on this gorgeous property and raised beans, peanuts, cotton, and corn all the way to the waters edge. This is where Pump Hole Creek ran adjacent to the property. This creek is where water was pumped from to clean oysters at an oyster factory that once existed there; hence the name Factory Road. After seven years of farming, Bert went to work with his father full-time in the seafood business. With the advice from the NC Forestry Service, Bert decided to plant rows of pine trees through-out the entire property.

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THE SALTERS HAVEN STORY,

CONTINUED

The Lea Family put their heart and soul into the property and they wanted everyone to enjoy this beautiful land as well as Lea Island. When J.H. Lea’s wife, Julia Pearl Lea discovered people had built weekend camps and getaways on their island, she put notes on their doors creating contracts with each of the “tenants” and charged them $1 per year. They all agreed and then paid their dues at the Fish house office. This was Julia’s way of sharing her little piece of paradise with those around her. In 1968, Bert Lea Sr. decided to create Lea’s Waterfront Mobile Home Park. The park was known for its alluring views of the Intracoastal Waterway and was situated under beautiful tall pine trees. Tenants were charged only a modest rent which enabled many people to enjoy this serene lifestyle that the Salters Haven property offers. Bert Lea Jr. said that his father always told him and his sisters Dorothy and Judy not to fall in love with a piece of property. However, as they were constantly investing in maintaining the land and water to keep its natural beauty, they all unwittingly fell in love with this property. Although they considered selling the property, they knew they couldn’t give this property up unless it was to the right person. They had numerous offers through out the years but no offer felt right to the Lea family. The amount of money offered on the property was not their biggest concern, selling it to the right person was more important. The new owner would have to be the right person to keep the legacy going with great respect for the land, water, and community of Hampstead.

This became a realty when Bert Jr. met D Logan. After 3 years of discussion about D’s plan to make this property an extraordinary community, marina, and clubhouse, they knew their father’s and grandfather’s land was in great hands to carry on the legacy of the Lea Family at Salters Haven. Salters Haven was has been a vision for years and this vision is finally becoming a reality. Salters Haven will be a place for families and friends to enjoy and truly live the saltwater life. Coffee will be shared with friends as the sunrises over the ICW. The sidewalks will be shared with neighbors who will become like family. Families will become closer over 2


THE SALTERS HAVEN STORY,

CONTINUED

the enjoyment of great spaces like the resort style pool, walking and running trails, kayak launches, beautiful back patios and more. Imagine all of this in a quaint little waterfront town just a short drive away from the City of Wilmington. If Waterfront lifestyle is what you seek then Salters Haven is your destination. Hampstead, NC is a growing waterfront town with all necessities. Right outside of the Salters Haven property is everything you need for your day to day life including a shopping plaza with a grocery store, car wash, post office, local bakery, dining options and more. In addition, New Hanover Regional Medical Center North Emergency is only 6 miles from Salters Haven. The Lea Marina at Salters Haven will have 75 boat slips for purchase with 4 different slip sizes, room for all boaters. The Marina will have day slips as well for those who want to keep their boats at the Sloop Point Boat Storage facility, which is only a 10 minute drive from Salters Haven. Cruise through the blue waters outside of Lea Marina and enjoy the convenience of a quick boat ride to surrounding beaches such as Wrightsville Beach, Topsail Beach, and picturesque islands such as Lea’s Island, Masonboro Island and more. Take the boat to lunch at one of the many fantastic restaurants that are on the water in the area! The community also has a kayak launch and a storage facility to make getting out on the water as convenient as possible for Salters Haven residents. Whether you are kayaking or paddle boarding for a workout, or to just enjoy the day, it is a great way to escape life’s fast pace by spending time on the water. Not in the mood for boat ride but want to soak up the sun still? Salters Haven will have a resort style pool and clubhouse for your friends and family to relax and enjoy. There will be fire pits with Adirondack chairs and a luxurious outdoor kitchen area for grilling. The Salters Haven clubhouse will be equipped with a full indoor kitchen, multiple tables and a large lounge area for everyday use or neighborhood gatherings and holiday parties! Salters Haven would like to welcome two of Wilmington’s finest builders, Logan Homes and Legacy Homes, who will be providing residents with coastal elegance. The homes will have welcoming front porches that extend your living space beyond the front door. The open area floor plans are designed to bring friends and family together.

Logan Developers and Destination Realty are excited to bring to you Salters Haven. We look forward to sharing working with you as you consider making Salters Haven your new home!

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SALTERS HAVEN FEATURED BUILDERS

Building Luxury Homes along the Southeastern Carolina Coast since 1986. Logan Homes began building luxury homes along the Southeastern Carolina Coast in 1986. Prior to that, D Logan was introduced to the world of custom home building by starting first as a carpenter’s helper where he demonstrated the ability, attention to detail and attitude it takes to succeed as a builder. After working for four years, building some of the finest homes along Wrightsville Beach and Figure Eight Island, he turned his dream into a reality and began Logan Homes. As Logan Homes, D Logan went right to work developing neighborhoods and small boutique communities such as Olde Camden, The Reserve at Masonboro, The Reserve at Waterford I and II, Compass Pointe, and most recently, Helms Port. Each of these communities bear his trademark eye for luxury and quality. Along the way, Logan Homes has built a track record of success and customer satisfaction by exceeding customer expectations and turning dream homes into reality. The approach D Logan takes hasn’t changed – personalized designs from contemporary to classic that go beyond client expectations, use of cutting edge technologies and streamlined processes that make building your dream home as Easy as 1, 2, 3. To this day, Logan Homes builds luxury homes for clients throughout Southeastern North and South Carolina.

Testimonials: A completely positive experience from the beginning to end. Logan Homes is a world class operation, and we are thrilled to have chosen them for the building of our home. Warren & Phyllis R. | Leland, NC Everyone was wonderful and always willing to explain the process. We are very happy and have already recommended Logan to friends! Madis & Lois S. | Southport, NC

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SALTERS HAVEN FEATURED BUILDERS

Bill Clark Homes has constructed a reputation for providing buyers with the most home for their money. And now, Legacy Homes by Bill Clark, Bill Clark Homes’ newest division, focuses on building homes with their clients’ lifestyles in mind. With Legacy Homes by Bill Clark, building a client’s future home – in the neighborhood they choose – is possible. In fact, it’s more than possible!

“We are centered on building high quality homes in North Carolina’s Brunswick, New Hanover, Pender, and now Onslow counties,” said Heath Clark, President and Owner. “Our dedicated team of sales representatives, project coordinators and designers will help you build the home of your dreams, whatever your dreams may be!” Legacy Homes by Bill Clark offers choices: purchase a completed home, choose from a variety of floorplans that fit your lifestyle or modify a floorplan to make it truly oneof-a-kind.

Building a Legacy 2017 marked an impressive 40-year milestone for Bill Clark Homes, an esteemed, award-winning homebuilder in the Carolinas since 1977.

Testimonials: We have lived in our BCH for 12 years and have enjoyed living in this quality built home, if I ever have a problem they got right back to me, would definitely recommend this quality Builder. Marian Murphy We moved into our dream home in The Retreat (Ocean Isle Beach NC) last July and it is truly an amazing home and community. Love it! From the sales experience to design to build, we’re very happy. We are also so grateful for the help and support we’ve received since the move-in on the inevitable “loose ends.” Every one of them has been handled promptly and well. Just a great all-around experience and a home that truly is a dream Mory Conrad

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THE DEVELOPER

D Logan, Founder & President

Logan Developers Inc., is a real estate development company based in Wilmington, North Carolina. Since 1986, Founder and President D Logan has developed many neighborhoods throughout the Greater Wilmington area, from small boutique communities to larger master-planned communities. Each of these communities bear his trademark eye for creating places where value and lifestyle come together. D was introduced to the world of home building and development by starting first as a carpenter’s helper in his teens where he demonstrated the ability, attention to detail and passion it takes to succeed as a builder and developer. After building some of the finest homes along Wrightsville Beach and Figure Eight Island, he turned his dream into a reality and began Logan Developers, Inc. His unwavering vision and love for hard work, is displayed throughout LDI’s mission to build something more and create places where your story is well told. LDI strives to create places that matter, places that last and leave a legacy. LDI has had a strong history of creating such places where lifestyles thrive and legacies endure. Each of their communities have that mission embedded in their roots. Seen in past communities such as The Reserve at Masonboro, Atlantic View and Helms Port, LDI’s goal is to develop a community where all residents are able to enjoy real life on the water. Developed by LDI, Helms Port is the inspiration of what will come to life at Salters Haven. The beauty and tranquil elegance that was created in the Helms Port community will be replicated into yet another beloved waterfront community. Rarely do you find a community that immediately exudes a great sense of belonging, where neighbors become great friends and the sidewalks become your extended front porch. At Helms Port, this happened overnight. And Logan Developers Inc. plans to implement the same concept at Salters Haven. Home designs offering classic front porches, an elegant coastal clubhouse and a resort style pool will ensure every resident is connected to their neighbors as well as the highly desired waterfront lifestyle.

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THE DEVELOPER,

CONTINUED

“ Our family moved to Helms Port in 2017 and its been the best move ever. We love having access to the water, to be able to get on our boat in a moments notice. The neighborhood itself is wonderful too- so many community activities. Our favorites are the 4th of July parade and the Halloween Spooky Spots. Its not Just a neighborhood- but a way of life!” -The Kowalski Family, Homeowner in Helms Port D has been fortunate enough to raise his family by the water, living the coastal lifestyle that brings friends and families together. When envisioning Salters Haven Logan Developers wanted to ensure that no matter what price point, size or style home, every resident will be able to enjoy the magnificent views of the marina, and the Intracoastal Waterway through all of Salters Haven water amenities. The masterplan has been carefully crafted to produce an inspiring coastal landscape that will be your sanctuary. It is our privilege and passion to present Wilmington’s next great community, Salters Haven. May your family’s waterfront legacy be one of joy, great memories and infinite possibility. Helms Port is truly a unique neighborhood. There is a wonderful mix of young families, almost empty nesters and retirees. But, more than that there is a sense of caring and pride in our community, not to mention all of the amenities. I often walk our dog early in the morning and am always inspired by what a beautiful neighborhood I live in. There is always a friend to chat with or borrow a cup of sugar from. We moved here so our children could grow up with lots of kids to play with. They now will have a childhood filled with memories of playing hide and seek, boating, fishing and playing in the pool. We have found all that and more in Helms Port. -The Donners, Homeowner in Helms Port We just love the sense of community the most. We literally feel like every day is a vacation with friends and neighbors. Whether we are relaxing by spending time at the pool, riding around in our golf cart or just relaxing on the front porch, there is a community bond like no other place we have ever lived! -Kevin Gray, Homeowner in Helms Port

Craig Wheeler, President, Destination Realty Corp. and D Logan, Founder & President, Logan Developers Inc. onsite at Salters Haven


SALTERS HAVEN APPROVED BUILDERS

Cress Bell of BELL CUSTOM HOMES, brings a unique passion to the art of custom home building. With the experience of building award winning luxury homes on the coast of California and North Carolina for over 22 years, Cress brings a fresh perspective of design and pursuit of innovation that gives his clients a unique home and great build experience. “It’s more than a house, it’s our client’s home!”

Testimonial: Working with Cress Bell and Paul Garcia, is more like working with family, rather than working with a business. Of course they have a business to run, but in doing so they genuinely care about their clients as people and they take great pride in the quality of the homes they build. Building a new home can be stressful; it’s especially rewarding when the process of building the home is as enjoyable as the final outcome. Diana & Mark S. Park Landing - Custom Client

Crane Building is owned and operated by George Crane. A North Carolina native, George prides himself on building beautiful homes using only the finest materials available. Each home is built with care and pride to be energy efficient and a showpiece for each member of the Crane Building Family. Intricately involved, George is onsite every day and involved in all aspects of each project. By limiting the number of projects Crane takes on, clients work daily with George and his small staff from project start to completion. Beyond move in, Crane also offers full home provisioning for those looking for a totally fresh start. Details are what make homes special -none are overlooked at Crane Building.

Testimonial: Dottie and I had very high expectations about the construction and quality of our new house in St. James. George, Sara, Thomas, and Robyn were always available to answer our questions and guide us through the process. Sara spent many valuable hours helping us with the selection of everything we needed to create a wonderful home. Their subcontractors are the best! They met and exceeded our expectations and we consider them friends even though the project has been completed. We love our new home and it would not have been possible without this great team. I would not hesitate to have them build my new construction in the future. John and Dottie Linn 8


APPROVED BUILDERS,

CONTINUED

The Vahue family has been in the new home building industry since 1962. Marty Vahue began his journey in the home building industry in 1977 with his father. Vahue Building has been working with clients for many years to design and build their homes, we give you the confidence you need to feel comfortable throughout your new home build. Today with the assistance of his two sons they manage each project as a team and are on-site throughout the entire construction process. Each one of them is a key component in making sure the vision of every client is coming to fruition. The Vahue team is respected most for their quality construction, distinctive finish details and most notably their hands-on approach with each client. We remain committed to our personal values of honesty, integrity, and transparency, and believe such a foundation ensures we will always do the right thing. We treat each decision made as if it were our own home. The saying we are only a phone call plays true when working with us, we pride ourselves on our accessibility. Clients are always welcome to contact us with questions or ideas they may have. Open communication is very important throughout the build process. We follow a proven process to deliver a great final home product to our clients. We build with you, not simply for you! When you’re ready to build something special, let’s talk!

PBC Design + Build has been creating amazing places to live for more than twenty years and we pride ourselves on our quality craftsmanship, attention to detail, and superior level of customer service. At PBC, we put a great deal of emphasis on front end design as well as clear, effective communication throughout the entire building process. Our team is a group of highly qualified individuals with wide-ranging talents, relevant expertise and a firm commitment to customer gratification. Our clients are not simply buying a product from us, they take part in a collaboration that results in a one-of-a-kind dream home. PBC Design + Build is a full service firm specializing in custom homes throughout the Wilmington regional area.

Testimonial: I was most satisfied that it was exactly what it was supposed to be. They were very creative with their design to accommodate what we needed, including an elevator! Kevin + Phyllis Cook River View Townes, River Lights 9


Frequently Asked Questions


Salters Haven FAQ Who is the developer of Salters Haven? Logan Developers Inc. founded by D Logan. Their goal for Salters is to create communities where relationships will be cultivated to last and leave a legacy. Logan’s core values are relationships, trust, responsibility, and performance. Who may I choose to build my home? Our feature builders will be Logan Homes and Legacy Homes by Bill Clark. Both Logan Homes and Legacy Homes by Bill Clark offer a variety of floor plans. These plans are efficiently laid out to maximize living area and minimize maintenance. If you purchase a waterfront, canal front or marina homesite, we recommend using one of our preferred custom builders. Those builders are Plantation Building Corp, Vahue Building Corp, Bell Custom Homes, and Crane Building Company. Is there a time limit to build on my homesite? No! You can purchase the homesite and build when you are ready. Is Salters Haven gated? No, the community itself is not gated however we will have a gate inside of the neighborhood which will restrict access to the clubhouse and amenities to residents only. How many total homesites are there? Salters Haven has 308 homesites. What are the minimum building requirements? The minimum square footage requirement is 1,600 square feet. What amenities does Salters Haven offer? Residents will be able to enjoy a clubhouse with full kitchen and outdoor grills, a resort-style pool overlooking the Intracoastal Waterway, 75 boat slip marina with a kayak/canoe launch, community sidewalks for walking and jogging and an outdoor fire pit and gathering area. Salters Haven caters to many different lifestyles! When may I begin building my home on my homesite? Lots in our Founders Release are ready to go and construction can begin following the closing of your lot purchase. What utilities are provided to my homesite? Salters Haven has municipal water and sewer. There will be electricity, cable, and telephone to the boundary of your homesite. What are the monthly association fees? Homeowners association fees are $120/month. Are there additional fees if you own a boat slip? Yes, the fees for the yacht club membership that apply to all boat slip owners are $140/month. What do these fees include? These fees cover maintenance and landscaping of all common areas, clubhouse, pool and marina as well as of the overall maintenance of any area under HOA management. When will these fees begin? Owners will begin paying HOA fees immediately following the closing of their property purchase. What are the taxes? The real estate tax rate in Pender County is .645 and the tax rate for Hampstead is .095. Based on valuation, real estate property taxes at Salters Haven will be approximately $740 per $100,000 in property value.


Boat Slips


A16

A15

A14

A13

A12

A11

A10

A9

A8

A7

A6

A5

A4

A3

35' SLIPS (15)

ADA

ADA A2

40' SLIPS (2) 46' SLIP (1)

A1

40' SLIP (1)

1 of 1

Page:

By Logan Marine, LLC 6310 Greenville Sound Rd Wilmington, NC 28409 910-367-1348

A17

75 SLIPS: 25'... 4 ea 30'... 30 ea 35'... 32 ea 40'... 7 ea 46'... 2 ea

30' DAY DOCK

A18

KAYAK LAUNCH

A19

ADA

ADA

A - DOCK

30' SLIPS (15)

25' SLIPS (2)

PUMP OUT AREA B9

B11

B13

B15

B17

B19

B21

B23

B25

B27

B29

B31

B33

B35

B - DOCK

B6

B8

B10

B12

B14

B16

25' SLIPS (2)

B18

B20

B22

B24

B26

B28

B30

B32

B34

B36

30' SLIPS (15)

46' SLIP (1) 40' SLIPS (2) 35' SLIPS (15)

40' SLIPS (2) C20

C19

C18

C17

C16

C15

C14

C13

C12

C11

C10

C9

C8

C7

C - DOCK

10

C6

C5

C4

C3

C2

C1

Boat Slip Layout

B4

CHANNEL ENTRANCE

Salters Haven Marina

B2

4/17/20

B7

Scale: NA

B5

30' DAY DOCK

B3

35' SLIPS (2)

B1


STATE OF NORTH CAROLINA

SALTERS HAVEN: BOAT SLIP PURCHASE AGREEMENT

COUNTY OF PENDER

THIS BOAT SLIP PURCHASE AGREEMENT is made and entered into this ___ day of___________________________, 20___ by and between WLI INVESTMENTS, LLC ("Seller") and ________________________________, ("Buyer"). STATEMENT OF PURPOSE A. Seller is the owner of the Charter Memberships in the Salters Haven Yacht Club, Inc., with exclusive right to occupy, possess, use, and convey Boat Slip # ___, in the Salters Haven Yacht Club, a part of the Salters Haven at Lea Marina Subdivision, in Pender County. B. Buyers, at the time of closing contemplated hereunder shall own Lot # __________, Phase ____ (“Lot”) in said Subdivision and desires to purchase from Seller, and Seller desires to sell and assign to Buyers, the Charter Membership to Boat Slip # ______________ (the “Membership”), and upon closing to become a Class A Member with all rights and authority to the exclusive use of Boat Slip #_____________, as specifically set forth in the Declaration of Covenants, Conditions and Restrictions for Salters Haven Yacht Club, (the “Declaration”) recorded in Book ____________, Page _____________ of the Pender County Registry. NOW, THEREFORE, in exchange for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows: 1. Purchase and Sale. Buyers hereby agree to purchase from Seller that certain Membership for the exclusive use of Boat Slip No. _____________ (the “Boat Slip”) which upon conveyance to Buyers shall be the Class A Membership for the exclusive use of Boat Slip No. _________, (the “Boat Slip”) as shown upon the attached Marina Plat, recorded in Plat Book _______, Page __________ of the Pender County Registry. 2. Purchase Price. The purchase price for the Boat Slip (the “Purchase Price”) shall be ____________________________________________ and 00/100 Dollars ($______.00) and shall be payable in cash, by wire transfer prior to Closing, to the Real Estate Trust Account of Block, Crouch, Keeter, Behm & Sayed, LLP (the “Escrow Agent”). 3. Approval of Sale. Buyers acknowledge their understanding that the sale of the Boat Slip must be approved by WLI Investments, LLC, (“WLI”) which has a right of first refusal to purchase the Boat Slip at the contract price, as outlined in the Declaration. If WLI chooses to purchase the Boat Slip, then this Contract will be null and void, and the Sellers will have no further obligation to the Buyers. 4. Closing Date. If WLI waives its right of first refusal and approves the sale pursuant to Article X of the Declaration, the Sellers shall give the Buyers notice of such approval, and closing shall take place within fifteen (15) days of the giving of such notice. Closing shall take place at the office of the Escrow Agent. 1


5. Sellers’ Representations and Warranties. Sellers represent and warrant that on the day of closing, the Boat Slip shall be free and clear of any liens, encumbrances, claims, demands, delinquency, assessment, interest and penalties, in any nature, such that fee ownership of same, without encumbrances, may be conveyed to Buyers, with the exception of the Declaration, and any amendments thereto which govern the use of the Boat Slip, as well as the Articles of Incorporation of Salters Haven Yacht Club, Inc. and the Bylaws of same (collectively referred to herein as the “Governing Documents”), and any rules and regulations which govern activities on or about the slips and the Common Areas, as defined in the Declaration. 6. Buyers’ Covenants. Buyers agree to be governed by and to obey the provisions of the Declaration, the Governing Documents, and any rules and regulations which govern activities on or about the boat slips or Common Areas and all amendments to the preceding documents. Buyers acknowledge that any interest acquired in the Boat Slip shall require ownership of a lot in the Salters Haven Subdivision, in accordance with the Declaration; Buyers will also be responsible for any Yacht Club fees or membership dues and/or other fees associated with this transaction and the future use of the Boat Slip. 7.

Documents at Closing. At closing, Sellers shall deliver to Buyers: (a) (b) (c)

Settlement Sheet outlining purchase price, Membership Dues and any other fees; Delivery of Membership Certificate as evidence of ownership of the Boat Slip; Such other documents and things as may be reasonably requested by Buyers to consummate the closing.

8. Contingencies. Both Sellers and Buyers understand and acknowledge that Sellers’ performance is contingent upon the Buyers completing their purchase of the Lot in the Subdivision prior to closing on the Boat Slip. 9. Merger Clause. All understandings and agreements between the parties are merged into this Contract which expresses the entire understanding and agreement between the parties. No representations, warranties, conditions or statements, oral or written, not contained herein shall be considered a part hereof. This agreement may not be altered, enlarged, modified or changes, except by an instrument in writing executed by all of the parties hereto. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first written above. SELLER:

BUYERS:

WLI Investments, LLC

____________________________________

By: ________________________

____________________________________

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MASTER DECLARATION OF PROTECTIVE COVENANTS FOR SALTERS HAVEN AT LEA MARINA

Prepared by: Block, Crouch, Keeter, Behm & Sayed, LLP 310 North Front Street, Suite 200 Wilmington, North Carolina 28401

THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED STATES OF AMERICA OR STATE OF NORTH CAROLINA.

THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL SIGNS.

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MASTER DECLARATION OF PROTECTIVE COVENANTS FOR SALTERS HAVEN AT LEA MARINA Prepared by: Block, Crouch, Keeter, Behm & Sayed, LLP 310 North Front Street, Suite 200 Wilmington, North Carolina 28401

NORTH CAROLINA

PENDER COUNTY

THIS MASTER DECLARATION OF PROTECTIVE COVENANTS FOR SALTERS HAVEN (these "Protective Covenants") is made this _____ day of ______________, 2020, by WLI Investments, LLC, a North Carolina limited liability company ("Declarant"). Declarant is the developer of the real property described in Exhibit A, which is attached hereto and incorporated by reference herein. These Protective Covenants are being executed and recorded by Declarant in order to facilitate the development of the Property as a planned community to be known as "Salters Haven at Lea Marina" and to fix and establish certain covenants, conditions and restrictions upon and subject to which the Property shall be improved, held, leased, sold and/or conveyed. These Protective Covenants impose restrictions upon the Properties (as defined in Article 1 herein) under a general scheme of development for the mutual benefit of the owners of each portion of the Properties. Declarant hereby declares that all of the property described in Exhibit A, as well as any additional property subjected to these Protective Covenants by Supplemental Declaration in accordance with the terms hereof, shall be held, conveyed, hypothecated, encumbered, used, occupied, and improved subject to the following easements, restrictions, covenants, conditions, obligations and limitations, all of which are declared to be in furtherance of a plan of the improvement of the described property, which shall run with the real property subjected to these Protective Covenants, and to the provisions of the North Carolina Planned Community Act. These Protective Covenants shall be a burden and benefit to, and binding on, the Declarant, its successors and assigns, and any person or entity acquiring or owning any right, title or interest in the Properties or any part thereof, their heirs, successors, and assigns.

ARTICLE 1 DEFINITIONS The terms used in these Protective Covenants shall generally be given their natural, commonly accepted definitions except as otherwise specified. Capitalized terms shall be defined as set forth below. 1.0 "Salters Haven at Lea Marina" or “Salters Haven�: the development created or to be created on the Properties.

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1.1 "Articles of Incorporation" or "Articles": the Articles of Incorporation of Salters Haven HOA, Inc., which have been filed with the North Carolina Secretary of State, as may be amended from time to time. 1.2 "Association": Salters Haven HOA, Inc., a North Carolina nonprofit corporation, formed by the Declarant as a property owners association for Lot owners in the Residential Community, all of whom shall be members of the Association. 1.3 "Board of Directors" or "Board": the board governing the Association and managing the affairs of the Association. 1.4 “Builder” or “Approved Builder”: Any Person who has been approved by the Declarant, and who purchases one or more Lots for the purpose of constructing improvements for later sale to consumers. An Approved Builder may be either a Featured Builder, or a Preferred Builder. 1.4.1. Featured Builder: The Featured Builder is intended to provide a variety of furnished model homes, home plan portfolios, and correlated pricing and specifications, and shall be permitted to build upon any Lots with the Residential Community, subject to ARC approval. This builder group will do few custom changes and will build strictly with their own portfolio of plans, which plans must be pre-approved by the architectural review committee (ARC) of SH. 1.4.2 Preferred Builder: The Preferred Builder is intended to provide property owners with the option of building a unique custom home which may be designed specifically for the wishes of a particular property owner. Custom builders may build and customize plans in accordance with the property owners’ specifications, provided they meet or exceed standards set by North Carolina building code and are approved by the ARC. Preferred Builders will only be permitted to build on Lots 18 through 21, and 30 through 80 as shown on the plat recorded in Map Book 65 Pages 97-101 of the Pender County Registry. 1.5 "Business" and/or "Trade": shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family and for which the provider receives a fee, compensation, or other form of consideration. 1.6 "By-Laws": the By-Laws of Salters Haven HOA, Inc., as they may be modified or amended from time to time. 1.7 "Class "B" Control Period": the period of time during which the Class "B" Member is entitled to appoint a majority of the members of the Board of Directors as provided in Section 3.3. 1.8

"Committee": the Architectural Review Committee, as described in Article 10 herein.

1.9 "Common Area": all real and personal property which the Association owns, holds an easement interest in, or leases, or which is designated as "common area", "amenity area", “Private R/W” or “Pump Station”, “active open space”, "passive open space" or words of similar import, on any plat of the Properties (or any portion thereof) recorded by Declarant, and which is held or maintained for the common use and enjoyment of the Members. Without limiting the generality of the foregoing, the Common Area shall be deemed to include all roads (whether public or private) and rights of way (until accepted by the NC Department of Transportation or other state or local governmental agency) which are installed by Declarant for the general use of Owners and their guests for access (excluding driveways and 3


other roadways located within the boundaries of any Lot), and shall also include any gates, structures, or other improvements of whatever nature and kind, within the right of way of any of the private roadways. “Common Area� shall not, however, include any part of or interest in the Property that is owned by Salters Haven Yacht Club, Inc. except those rights specifically identified in Section 2.2 hereunder. 1.10 "Common Expenses": the actual and estimated expenses incurred or anticipated to be incurred by the Association for the general benefit of all Lots, including any reasonable reserve and actual and estimated expenses of maintaining and operating the Common Areas (including, without limitation, private access roads, drainage ponds, sewer lift stations, ditches and swales), conservation and buffer areas, and landscaped areas within road rights-of-way, as the Board may find necessary and appropriate pursuant to these Protective Covenants the By-Laws, and the Articles of Incorporation, including the following: (a)

All sums lawfully assessed by the Association against its Members;

(b) An amount equal to twenty-five (25%) percent of the total annual budget for Salters Haven Yacht Club, Inc., which is for the management, insuring, upkeep, maintenance, repair and replacement of those areas within the Salters Haven Yacht Club which are designated for the mutual benefit and enjoyment of Members of Salters Haven Yacht Club and the Residential Community; (c) Expenses of administration, maintenance, repair or replacement of the Common Areas, the storm water, sewer (including private lift station), water, utility, and other systems within the Residential Community that are for the benefit of some or all Owners; (d) Expenses declared to be Common Expenses by the provisions of these Protective Covenants or the By-Laws; (e)

Expenses agreed by the Members to be Common Expenses of the Association;

(f)

Any ad valorem taxes and public assessments levied against the Common Area.

and

Common Expenses shall not include any expenses incurred during the Class "B" Control Period for initial development, original construction, installation of infrastructure, original capital improvements, or other original construction costs unless approved by Voting Members representing a majority of the total Class "A" votes of the Association. 1.11 "Community-Wide Standard": the standard of conduct, maintenance, or other activity generally prevailing throughout the Residential Community. Such standard may be more specifically determined by the Board of Directors and the Architectural Review Committee. 1.12 "Declarant": WLI Investments, LLC, a North Carolina limited liability company, together with such successors or assigns of Declarant and those who are specifically assigned or granted Declarant's rights hereunder. 1.13 "Design Guidelines": the architectural design guidelines and procedures set forth in Article 10 and/or adopted by the Architectural Review Committee pursuant to Article 10 and applicable to all Lots within the Properties.

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1.14 "Future Development Property": any real property that may be shown on the recorded Plat of Salters Haven at Lea Marina as “Future Development”, or other real properties owned by Declarant within one (1) mile of any portion of the Properties, 1.15 "Individual Assessment": assessments levied in accordance with Section 9.6 of these Protective Covenants. 1.16 "Limited Common Area": portions of the Common Area which the Association or Declarant may have designated for the exclusive use and enjoyment of one or more, but fewer than all, of the Members. 1.17 “Lot”: shall mean one of the subdivided and numbered parcels of land depicted on the Map of Subdivision for Salters Haven at Lea Marina, Phase 1 recorded in Map Book 65 Pages 97 through 101 of the Pender County Registry. The term shall also include any Lots depicted on any subsequently recorded plat on the Property, which are made subject hereto pursuant to the terms hereof. The term shall include a portion of the Properties, whether improved or unimproved, which may be independently owned and conveyed and which is intended for development, use, and occupancy as a detached residence for a single family. 1.18 "Master Assessment": assessments levied on all Lots subject to assessment under Article 9 to fund Common Expenses for the general benefit of all Lots. 1.19

"Member": a Person entitled to membership in the Association, as provided in Section

3.2. 1.20 "Mortgage": a mortgage, a deed of trust, a deed to secure debt, or any other form of security deed. 1.21

"Mortgagee": a beneficiary or holder of a Mortgage.

1.22

"Mortgagor": any Person who gives a Mortgage.

1.23 "Owner": the record Owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Properties, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation. 1.24 "Person": a natural person, a corporation, a partnership or limited partnership, a limited liability company or partnership, a trustee, association, or any other legal entity. 1.25 "Planned Community Act": the North Carolina Planned Community Act (N.C.G.S. §47F1-101 et seq.), as same may be amended from time to time. 1.26 "Property" or "Properties": the real property described in Exhibit A, together with such additions thereto (including, without limitation, portions of the Future Development Property) as may hereafter be brought within the jurisdiction of the Association by the filing of a Supplemental Declaration. 1.27 "Protective Covenants": shall mean this instrument as it may from time to time be amended or supplemented.

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1.28 Property.

"Residential Community": the residential development created or to be created on the

1.29 "Rules and Regulations": the rules and regulations adopted by the Board governing land use, individual conduct, and uses or actions upon the Property pursuant to Article XI hereof. 1.30 "Service Assessment": assessments levied in accordance with Section 9.13 of these Protective Covenants. 1.31 "Special Assessment": assessments levied in accordance with Section 9.5 of these Protective Covenants. 1.32 “Special Declarant Rights”: rights conferred upon, reserved unto, or created herein in favor of the Declarant including but not limited to those rights identified under N.C.G.S. §47F-1-103(28), all of which are incorporated herein by reference. 1.33 "Supplemental Declaration": an amendment or supplement to these Protective Covenants filed pursuant to Article 8 which subjects additional property to these Protective Covenants and/or imposes, expressly or by reference, changes to or additional restrictions and obligations on the land described therein. ARTICLE 2 PROPERTY RIGHTS 2.1 Right to Use and Enjoyment of Common Area. Every Owner shall have a right and nonexclusive easement of use, access, and enjoyment in and to the Common Area, and for ingress and egress to and from the Common Area, which shall be appurtenant to and pass with the title to every Lot, subject to the following provisions: (a) These Protective Covenants, the Articles, the By-Laws, the Rules and Regulations and any other applicable covenants or Supplemental Declarations; (b) Any restrictions or limitations contained in any deed conveying such property to the Association; (c) The right of the Board to adopt rules regulating the use and enjoyment of the Common Area and improvements thereon, including rules restricting use of the recreational facilities within the Common Area to occupants of Lots and their guests and rules limiting the number of guests who may use the Common Area; and the right of the Board to establish penalties for any infractions thereof, (d) The right of the Board to suspend the voting rights and the right to use the Common Areas and the recreational facilities within the Common Area by an Owner (i) for any period during which any charge against such Owner's Lot remains unpaid, and (ii) for a period not to exceed sixty (60) days for a single violation, or for a longer period in the case of any continuing violation, of these Protective Covenants, any applicable Supplemental Declaration, the Articles, the By-Laws, the Design Guidelines, or the Rules and Regulations, after notice and a hearing pursuant to N.C.G.S. § 47F-3-107.1 unless otherwise set forth in these Protective Covenants;

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(e) The right of the Association, acting through the Board, to dedicate or transfer all or any part of the Common Area pursuant to Section 4.7; (f) The right of the Association, acting through the Board, to mortgage, pledge, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred, subject to the approval requirements set forth herein and provided that the rights of such Mortgagees in said properties shall be subordinate to the rights of the Lot Owners hereunder; (g) The right of the Salters Haven Yacht Club, Inc., and its Members and invitees to non-exclusive use of the roads, outdoor shower facilities, bath houses, parking areas, boardwalks, and walkways within the Residential Community. (h)

Easements as provided in Article 12; and

(i)

Declarant's rights as provided in Article 14.

Any Owner may extend his or her right of use and enjoyment to the members of his or her family, lessees and social invitees, subject to reasonable Board regulation. An Owner who leases his or her Lot shall be deemed to have assigned all such rights to the lessee of such Lot for the duration of the lease, to the exclusion of the leasing Owner, and any such lessee shall abide by all the restrictions contained herein. Any such lease shall not release the owner of his liability for damage to the Common Area caused by said lessee. 2.2. Boat Slips and Marina Facilities. Declarant has developed or will develop an inland basin marina and other amenities located within the Residential Community known as "Salters Haven Yacht Club" (collectively, the "Marina"), and has conveyed or will convey the Marina to Salters Haven Yacht Club, Inc., a North Carolina non-profit corporation. Access to and use of the Marina, as well as the opportunity to purchase or lease boat slips within the Marina, may be extended to Owners within the Residential Community, subject to conditions, rules and regulations to be specified by Salters Haven Yacht Club, Inc. and Declarant from time to time. Salters Haven Yacht Club, Inc. will designate one dock within the said Salters Haven Yacht Club which will be made available for the non-exclusive use (day docking only) of the Members of the Association. Further, Declarant shall cause Salters Haven Yacht Club, Inc. to designate an area at Salters Haven Yacht Club as a kayak/canoe/paddle board launch area, which will be made available for the non-exclusive use of the Members of the Association. Other than the foregoing, NEITHER DECLARANT NOR THE ASSOCIATION MAKES ANY WARRANTIES OR REPRESENTATIONS WHATSOEVER WITH RESPECT TO ANY OWNER'S RIGHT OR PRIVILEGE TO PURCHASE OR LEASE A BOAT SLIP OR USE THE MARINA IN ANY OTHER WAY. EACH OWNER, BY ITS ACCEPTANCE OF TITLE TO ANY LOT, THEREBY WAIVES ANY CLAIM AGAINST THE DECLARANT AND/OR THE ASSOCIATION RELATIVE TO ACCESS TO OR USE OF THE MARINA OR ANY PORTION THEREOF. Salters Haven Yacht Club, Inc. shall have the exclusive right to establish reasonable rules and regulations relating to the use by Owners of the Marina. Additionally, the Members of the Association, through the Association, shall pay to Salters Haven Yacht Club, Inc., an amount equal to twenty-five percent of the approved assessments for Salters Haven Yacht Club to defray the Member’s use and enjoyment of the Marina amenities described in this Section 2.2. The Association shall have the right and power to collect such payments as a part of and with its Owner’s assessments as provided in Article 9 herein. 2.3 Limitations on Yacht Club Membership; Certain Lots Ineligible. Any boat slips created, or to be created, within Salters Haven Yacht Club marina, shall be sold or leased only to owners of Lots 7


in Salters Haven at Lea Marina. Provided, however, that membership in Salters Haven Yacht Club shall not be available to certain Lots which abut water courses and enjoy riparian or littoral rights. The Lots which shall not be entitled to purchase a membership in Salters Haven Yacht Club are: Lots 41, 42, 43, 44, 45, 46, 47, 48, 49, 51, 52, 53, 54, 55, 56, and 57 as depicted on the map of Salters Haven at Lea Marina, Phase 1 recorded in Map Book 65 Pages 97-101 of the Pender County Registry. ARTICLE 3 ASSOCIATION FUNCTION, MEMBERSHIP AND VOTING RIGHTS 3.1 Function of Association. The Association shall be the entity responsible for management, maintenance, ownership, operation and control of the Common Area owned or leased by the Association within the Properties. The Association shall be the primary entity responsible for enforcement of these Protective Covenants and such reasonable rules regulating use of the Common Areas owned or leased by the Association as the Board may adopt. The Association shall also be responsible for administering and enforcing the architectural design guidelines and controls set forth in these Protective Covenants and in the Design Guidelines. The Association shall perform its functions in accordance with these Protective Covenants, the By-Laws, the Articles and applicable North Carolina law. 3.2 Membership. Every Owner shall be a Member of the Association. There shall be only one membership per Lot. If a Lot is owned by more than one Person, all co-Owners shall share the privileges of that membership. The membership rights of an Owner which is a corporation, partnership or other legal entity may be exercised by any officer, director, partner, or trustee, or by any other individual designated from time to time by the Owner in a written instrument provided to the Secretary of the Association, provided that only one person (and such person's immediate family members with respect to membership rights other than voting) may be designated to act in such capacity for such an Owner at any particular time. 3.3 “B�.

Voting. The Association shall have two classes of membership, Class "A" and Class

(a) Class "A". Class "A" Members shall be all Owners of Lots except the Class "B" Member, if any. Class "A" Members shall have one vote for each Lot in which they hold the interest required for membership under Section 3.2; there shall be only one vote per Lot. (b) Class "B". The sole Class "B" Member shall be the Declarant. The rights of the Class "B" Member, including the right to approve or withhold approval of actions proposed under these Protective Covenants and the By-Laws, are specified elsewhere in the Protective Covenants and the By-Laws. The Class "B" Member may appoint the members of the Board during the Class "B" Control Period, as specified herein. After termination of the Class "B" Control Period, the members of the Board shall be selected as provided in the By-Laws. During the Class "B" Control Period, the Class "B" Member shall be entitled to twentyfive (25) votes for each platted Lot in the Residential Community. The total number of planned Lots in the Residential Community is currently three hundred eight (308), although the actual number of Lots may be more or less, and the Class "B" Member makes no representation whatsoever regarding the actual number of Lots to be included in the Residential Community. The Class "B" membership shall cease and be converted to Class "A" membership on the happening of one of the following events, whichever occurs earlier:

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(i) when the Declarant owns no Lots in the Residential Community, including any of the Future Development Property which may be annexed thereto, as herein provided, or (ii)

on January 1, 2050, or

(iii) when, in its discretion, Declarant so determines and declares in an instrument recorded in the Pender County Registry of Deeds. (c) Exercise of Voting Rights. In any situation in which a Member is entitled personally to exercise the vote for his or her Lot and there is more than one Owner of a particular Lot, the vote for such Lot shall be exercised as such Co-Owners determine among themselves and advise the Secretary of the Association in writing prior to any meeting. Absent such advice, the Lot's vote shall be suspended if more than one Person seeks to exercise it. 3.4 Subordinate Associations and Declarations. No declaration, restrictive covenants, or property owner's association shall be established upon or be binding upon or applicable to any of the Properties unless approved in writing by Declarant.

ARTICLE 4 RIGHTS AND OBLIGATIONS OF THE ASSOCIATION 4.1 Common Area. The Association, subject to the rights of the Owners set forth in these Protective Covenants, shall manage and control the Common Area and all improvements thereon (as defined in other sections herein including, without limitation, public and private roads, private road rights of way, recreation pathways, decks, boardwalks, lighting, irrigation, furnishings, equipment, and common landscaped areas), and shall keep it and them in good repair and in a clean, attractive, sanitary condition consistent with these Protective Covenants and the Community-Wide Standard. 4.2 Personal Property and Real Property for Common Use. The Association may acquire, hold, and dispose of tangible and intangible personal property and real property. Declarant may convey to the Association improved or unimproved real estate located within the Residential Community, personal property, and leasehold and other property interests. Such property shall be unconditionally accepted by the Association without delay and thereafter shall be maintained as Common Area by the Association at its expense for the benefit of its Members, subject to any restrictions set forth herein and in the deed. 4.3 Rules. The Association, through its Board, may make, revoke, amend and enforce reasonable rules governing the use of the Properties, in addition to further defining or limiting, and, where specifically authorized hereunder, creating exceptions to, those covenants and restrictions set forth in these Protective Covenants. Such rules shall be binding upon all Owners, occupants, invitees, lessees, guests and licensees. 4.4 Enforcement. The Association may impose sanctions for violations of these Protective Covenants, the By-Laws, or Rules and Regulations, including reasonable monetary fines and suspension of the right to vote and to use any recreational facilities, or amenities, within the Common Area. In addition, the Association may exercise self-help to cure violations (specifically including, but not limited to, towing vehicles that violate parking rules), and may suspend any services it provides to the Lot of any Owner who is more than 30 days delinquent in paying any assessment or other charge due to the 9


Association. The Board may seek relief in any court for violations or to abate nuisances, to enjoin any violation, and/or to recover monetary damages. In any such action, to the maximum extent possible, the Owner or occupant responsible for the violation of which the abatement or enjoinment is sought shall pay all costs, including the Association’s reasonable attorneys’ fees actually incurred. The Board may assess the reasonable monetary fines authorized by this Section as an Individual Assessment authorized by Section 9.6 of these Protective Covenants. 4.5 Implied Rights; Board Authority. The Association may exercise any other right or privilege given to it expressly by these Protective Covenants or the By-Laws, by the Planned Community Act or Chapter 55A of the North Carolina General Statutes, and as reasonably implied from or reasonably necessary to effectuate any such right or privilege. Except as otherwise specifically provided in these Protective Covenants, the By-Laws, and the Articles of Incorporation, all rights and powers of the Association may be exercised by the Board without a vote of the membership. 4.6 Indemnification. To the maximum extent allowed by North Carolina law, the Association shall indemnify every officer, director, and committee member against all expenses, including counsel fees, reasonably incurred in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board) to which he or she may be party by reason of being or having been an officer, director or committee member. The Association shall, as a Common Expense, maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such insurance is reasonably available. 4.7 Dedication of Common Areas. The Association may dedicate portions of the Common Areas to any local, state, or federal governmental entity, public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the Association. 4.8 Security. The Association may, but shall not be obligated to, maintain or support certain activities within the Properties designed to make the Properties safer than they otherwise might be. NEITHER THE ASSOCIATION NOR THE DECLARANT (OR ANY SUCCESSOR TO DECLARANT) SHALL IN ANY WAY BE CONSIDERED AN INSURER OR GUARANTOR OF SECURITY WITHIN THE PROPERTIES, NOR SHALL ANY OF THEM BE HELD LIABLE FOR ANY LOSS OR DAMAGE BY REASON OF FAILURE TO PROVIDE ADEQUATE SECURITY OR OF INEFFECTIVENESS OF SECURITY MEASURES UNDERTAKEN. EACH PERSON USING THE PROPERTIES ASSUMES ALL RISKS FOR LOSS OR DAMAGE TO PERSONS, TO LOTS, AND TO THE CONTENTS OF LOTS RESULTING FROM ACTS OF THIRD PARTIES. 4.9 Management and Administration. The management and administration of the Association Common Areas and Amenities shall be the sole right and responsibility of the Association. The management shall be carried out in accordance with the terms and conditions of these Protective Covenants, the Articles, By-Laws and Rules and Regulations, but they may be delegated to Manager(s) or a management service. 4.10 Assignment to Association. Declarant has obtained certain permits, entered into certain agreements, and installed various permitted systems within the Residential Community during the course of developing the Property including but not limited to (i) Permit No. WQ0040594 issued by NCDENR to the Association for construction, maintenance and operation of a Private Pump Station and Sewer Wastewater Collection System; (ii) Stormwater Management Permit Number SW8 190103 issued by the North Carolina Division of Water Quality ("NCDWQ") under NCAC2H.1000, (iii) NCDOT Permit #P1299; (iv) North Carolina Department of Environmental Quality and Coastal Resources Commission Major Development and excavation and/or filling Permit No. 20-19; (v) the Agreement between 10


Declarant and Old North State Water Company, a North Carolina limited liability company (together with its assigns, “ONSWC”) dated December 13, 2018 for installation and operation of the wastewater collection system for the Residential Community; and modifications or amendments thereto (collectively, the “Permits”). Declarant shall assign, and the Association shall unconditionally assume all of such Permits and systems including but not limited to water, sewer (including private lift station), land use, stormwater permits and systems and utility permits, agreements and easements between Declarant and any governmental agency or department or public or private utility company, whether or not specifically listed hereinabove. The Association shall, within ten days of a request by Declarant, accept the assignment and assume such permits and systems. Such obligation to accept assignment of such Permits and systems shall not be subject to the results of any inspections, analyses or reports, nor conditioned in any way. After such an assignment, the Association shall be responsible for and assume all duties, obligations, and rights and privileges of the Declarant under such permits, agreements and easements, including all maintenance responsibility, even if part of the water, sewer, land use, stormwater system or utility areas covered by the permits, agreements and easements are not located within the Properties. The Association shall indemnify, defend, and hold harmless the Declarant for any claim or cause of action brought against Declarant arising from Association’s breach of or failure to perform under any of the permits or agreements described herein. Each Lot Owner, by his, her or its acceptance of his, her, or its Deed to a Lot, acknowledges these disclosures and agrees to accept his, her, or its Lot subject thereto, and further agrees to fully comply with each of the terms of all applicable Permits. The Permits shall be available for review by any Lot Owner upon reasonable written request. 4.11 Common Area. Unless such conveyance or encumbrance is permitted under the Planned Community Act, the Common Area shall not be mortgaged, conveyed or encumbered without the consent of eighty percent (80%) of the Lot Owners. During the Class "B" Control Period, any such mortgage, conveyance or encumbrance shall also require the consent of Declarant. ARTICLE 5 MAINTENANCE 5.1 Association's Responsibility. The Association shall maintain and keep in good repair the Common Area, which may include, but need not be limited to: (a) all landscaping and other flora, parks, and signage for the Residential Community situated upon the Common Area; structures and improvements situated upon the Common Area, including any public and private roads, streets, rights of way and islands within their streets and cul-de-sacs; bicycle and pedestrian pathways and trails situated upon the Common Area; ponds, lakes, drain ways, recreation pathways and sidewalks within or upon the Common Area; the entrance to the Residential Community; any part of the water and/or sewer system serving Lots in the Residential Community which have not been accepted for maintenance by any public authority or governmental agency, including the private lift station, all lines, valves and systems; and all clubhouses, swimming pools, picnic areas, shelters, and other Amenities designated for the common use of Owners within the Properties; (b) the Wastewater Collection System consisting of a lift station and all pumps, valves, piping, controls, electrical equipment, fencing, water supply and all other equipment required to operate the lift station, and as required to comply at all times with NCDENR Permit No. WQ0040594; and,

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(c) any other Common Area or Limited Common Area designated by the Board or the Declarant from time to time in a Supplemental Declaration. 5.2 Owner's Responsibility. Each Owner shall maintain his or her Lot and all structures, parking areas, landscaping, and other improvements comprising or located upon the Lot in a manner consistent with the Community-Wide Standard and all applicable covenants, unless such maintenance responsibility is specifically assumed by or assigned to the Association, or to the Salters Haven Yacht Club hereunder, or pursuant to any Supplemental Declaration or other Declaration of Protective Covenants applicable to such Lot. As to Lots which abut a watercourse or body of water, it shall be the responsibility of each Owner to maintain, in a manner consistent with the Community-Wide Standard and these Protective Covenants, any area lying between the boundary or lot line of such Lot and the waterline of such watercourse or body of water (as such waterline may fluctuate from time to time), subject however to the rights of the Association and its Members to use any of such areas as may be depicted on a recorded Plat as common area or easement area. Owners of Lots which abut the Salters Haven Yacht Club marina basin and Lea Canal (as that term is defined is Section 11.7) shall be responsible for maintaining any landscaping located within the boundaries of such Lot; however, the Salters Haven Yacht Club shall be responsible for maintaining, repairing, replacing and insuring all bulkheads, boardwalks, retaining walls, utility posts, huts, clean outs, and other structures located within any easement located on such Lots which are for the benefit of the marina; provided further, the Association shall be responsible for mowing any lawns lying within the “Bulkhead & Retaining Wall Maintenance Easement� are shown upon the Map of Salters Haven at Lea Marina, Phase 1, recorded in Map Book 65 Pages 97 through 101 of the Pender County Registry. Any fencing which is not maintained by the Association shall be maintained and kept in good condition and repair by the Owner of the Lot on which such fencing is located (at such Owner's cost and expense). Each owner upon whose Lot there is constructed a fence, a berm, or a landscaped buffer, or a landscape easement, shall be responsible for maintaining such fence, berm, landscaping, or easement consistent with the Community Wide Standard and these Protective Covenants. Owner shall not, however, be allowed to remove any landscaping or cut any trees without the prior written approval of the Architectural Review Committee. In addition to any other enforcement rights, if an Owner fails to properly perform his or her maintenance responsibility, the Association may, but is not required to, perform such maintenance responsibility and assess all costs incurred by the Association against the Lot and the Owner in accordance with Section 9.6. The Association shall afford the Owner reasonable notice and an opportunity to cure the problem prior to entry, except when entry is required due to an emergency situation. 5.3 Maintenance of Lots. Each Owner shall maintain his or her Lot and all landscaping and improvements comprising the Lot in a manner consistent with the Community-Wide Standard and these Protective Covenants, the Articles, the By-Laws, the Rules and Regulations, and any other applicable covenants or Supplemental Declarations, unless such maintenance responsibility is otherwise assumed by or assigned to the Association pursuant to any Supplemental Declaration or other declaration of covenants applicable to such Lot. If, in the opinion of the Association, any Owner fails to maintain any Lot owned by him in a manner which is reasonably neat and orderly and as is required by Article 12 herein or shall fail to keep improvements constructed thereon in a state of repair so as not to be unsightly, all in the sole opinion of the Association, the Association in its discretion, by the affirmative vote of a majority of the members of the Board of Directors, and following ten (10) days written notice to Owner, may enter upon and make or cause to be made repairs to such improvements and perform such maintenance on the Lot as the removal of trash, pressure washing structures or walks, cutting of grass, pruning of shrubbery, weeding, and controlling erosion. The Association shall have an easement for the purpose of accomplishing the foregoing. The reasonable cost incurred by the Association in rendering all such services, plus a service charge of thirty percent (30%) of such cost, plus attorneys’ fees, shall be added to and become an Individual Assessment to which such Lot is subject as provided in Article 9 herein. 12


5.4 Responsibilities for Grinder Pump Stations and Service Lines. After the completed initial installation of a wastewater grinder pump, tank, and controls (hereinafter collectively referred to as a “Grinder Pump Station�) by the homebuilder or Declarant, the Lot Owner shall own, operate, maintain, repair, and replace the components of its Grinder Pump Station with oversight provided by ONSWC. ONSWC shall own, operate, maintain, repair, and replace the service lines. The electric service for the Grinder Pump Stations shall be provided by each applicable Lot Owner as part of their household electric service. NEITHER ONSWC NOR DECLARANT SHALL HAVE ANY RESPONSIBILITY OR LIABILITY WHATSOEVER SHOULD A PORTABLE GENERATOR DURING A POWER OUTAGE NOT BE CONNECTED TO THE GRINDER PUMP STATION TO KEEP IT FROM OVERFLOWING OR BACKING UP. 5.5 Maintenance of Private Access Roads. The Association shall be obligated to repair and maintain all roads which constitute Common Area hereunder to standards consistent with those required for maintenance of public roads by the North Carolina Department of Transportation. The costs of such repairs and maintenance shall be deemed Common Expenses hereunder and paid by the Association. 5.6 Standard of Performance. Maintenance, as used in this Article, shall include, without limitation, repair and replacement as needed, as well as other duties, as the Board may determine necessary or appropriate to satisfy the Community-Wide Standard. All maintenance shall be performed in a manner consistent with the Community-Wide Standard and all applicable covenants. ARTICLE 6 INSURANCE AND CASUALTY LOSSES The Association shall maintain adequate and appropriate insurance coverage on all Common Areas, as provided in the By-Laws of the Association and as required by the Planned Community Act. ARTICLE 7 SUBDIVISION No Lot or Lots shall be subdivided except to enlarge an adjoining Lot, but any Lot so enlarged cannot be improved with more than, or used for any purpose other than, one single family dwelling. An Owner of a Lot and a portion or all of an adjoining or contiguous Lot or Lots may construct a dwelling or other structure permitted hereunder upon and across the dividing line of such adjoining and contiguous Lot(s). The number of Lots shall remain the same and shall be treated for all purposes under these Protective Covenants as two (2) or more Lots. Notwithstanding the preceding provisions of this Article 7 to the contrary, Declarant shall be entitled to revise and move lot lines of any Lots owned by Declarant as long as the total number of Lots remains the same. ARTICLE 8 ANNEXATION AND WITHDRAWAL OF PROPERTY 8.1

Annexation without Approval of Membership.

(a) Until January 1, 2050, Declarant may subject any portion(s) or all of the Future Development Property to the provisions of these Protective Covenants as provided in this Section 8.1. Declarant may transfer or assign this right to annex property, provided that the transferee or assignee is the developer of at least a portion of the Property. Nothing in these Protective Covenants shall be construed to require the Declarant or any successors or assigns to annex or develop any of the Future Development Property in any manner whatsoever. 13


(b) Notwithstanding any language or provision contained in these Protective Covenants, at the option of Bert L. Lea Jr., Barbra Parker Lea, Dorothy Lea Medlin, Judy Lea Lane, and Charles M. Lane or their heirs or assigns, which option shall be expressed in writing delivered to the Declarant or the Board of Directors, as applicable, all or part of the lands within the area owned by the Lea’s lying south and southwest of and abutting the Property, which Lea property is more particularly shown on the plat of subdivision of Salters Haven at Lea Marina, Phase 1 recorded in Map Book 65 Pages 97-101 of the Pender County Registry as “Remaining Lands of Lea, PIN:3292-51-2833-000” (hereinafter, the “Lea Division”) may be annexed to the Property and made subject to the provisions of the Protective Covenants. In no event shall the assent of the Members be required to annex any or all of the Lea Division into the Residential Community. (c) An annexation by Declarant under Section 8.1(a) or (b) shall be accomplished by filing a Supplemental Declaration in the land records of Pender County, North Carolina, describing the property to be annexed and specifically subjecting it to the terms of these Protective Covenants. Such Supplemental Declaration shall not require the consent of any Members other than Declarant, but shall require the consent of the owner of such property, if other than Declarant. Any such annexation shall be effective upon the filing for record of such Supplemental Declaration unless otherwise provided therein. 8.2 Annexation by Membership. Except as provided in Section 8.1 herein, annexation of additional property shall require the assent of two-thirds (2/3) of the Class "A" Members at a meeting duly called for this purpose, written notice of which shall be sent to all Members not less than ten (10) days nor more than sixty (60) days in advance of the meeting. During the Class "B" Control Period, annexation of additional property under this Section 8.2 shall also require the consent of Declarant. 8.3 Withdrawal of Property. The Declarant reserves the right to amend these Protective Covenants so long as it has a right to annex additional property pursuant to this Article, without prior notice and without the consent of any Person, for the purpose of removing property then owned by the Declarant, its affiliates, or the Association from the coverage of these Protective Covenants, to the extent originally included in error or as a result of any changes in the Declarant's plans for the Properties, provided such withdrawal is not unequivocally contrary to the overall, uniform scheme of development for the Properties. 8.4 Additional Covenants and Easements. During the Class "B" Control Period, the Declarant may unilaterally subject the property submitted to these Protective Covenants initially or by Supplemental Declaration to additional covenants and easements, provided that such amendment or modification does not alter the general or common scheme of development for the Properties described herein and further provided that this right to amend shall not render these covenants and restrictions purely personal to the Declarant and the benefits and burdens contained in these Protective Covenants shall remain mutual and reciprocal to all Owners. The rights reserved in this Article 8 by Declarant include the right to change, alter, or designate Lot(s), roads, utility and drainage facilities and easements, and to change, alter, or re-designate such other present and proposed amenities or facilities as may, in the sole judgment of the Declarant, be necessary or desirable. The rights reserved in this Article 8 specifically include the right of Declarant to re-designate, change, or alter any platted Lot(s) into road(s) or parking spaces or vice-versa. 8.5 Amendment. During the Class “B” Control Period, this Article shall not be amended without the prior written consent of Declarant. 14 12


ARTICLE 9 ASSESSMENTS 9.1

Creation of Assessments.

(a) The Association is hereby authorized to levy assessments against each Lot for Association expenses as the Board may specifically authorize from time to time as more particularly provided in this Article 9. Each Owner, by accepting a deed or entering into a recorded contract of sale for any portion of the Properties, is deemed to covenant and agree to pay these assessments. Such assessments shall specifically include an amount equal to twenty-five percent (25%) of the Salters Haven Yacht Club, Inc. budget. (b) All assessments, together with interest from the due date of such assessments at a rate determined by the Board (not to exceed the highest rate allowed by North Carolina law), late charges, costs, and reasonable attorney's fees, shall be a charge and continuing lien upon each Lot against which the assessment is made until paid, as more particularly provided in Section 9.9. Each such assessment, together with interest, late charges, costs, and reasonable attorney's fees, shall also be the personal obligation of the Person who was the Owner of such Lot at the time the assessment arose. Upon a transfer of title to a Lot, the grantee shall be jointly and severally liable for any assessments and other charges due at the time of conveyance. However, no first Mortgagee who obtains title to a Lot by exercising the remedies provided in its Mortgage, or any individual obtaining title by or through a foreclosure, shall be personally liable for unpaid assessments which accrued prior to such acquisition of title. In the event of any transfer of title to a Lot, the lien of the assessments shall not be extinguished. (c) No Owner may exempt himself from liability for assessments by non-use of Common Area, abandonment of his Lot, or any other means. No diminution or abatement of assessments or set-off shall be claimed or allowed for any alleged failure of the Association or Board to take some action or perform some function required of it, or for inconvenience or discomfort arising from the making of repairs or improvements, or from any other action it takes. 9.2 Declarant's Obligation for Assessments. During the Class "B" Control Period, Declarant shall not be obligated to pay any regular assessments on its unsold Lots. Further, Featured Builders shall not be obligated to pay any regular assessments on any unsold Lot for a period of twelve months after the purchase of the Lot. Until the end of the Class "B" Control Period, all Common Expenses shall be borne by the Owners of Lots sold by Declarant to unaffiliated third parties (and assessments on Declarant's unsold Lots will only be payable to the extent needed to cover any shortfall not otherwise payable by assessments under this Article 9). After the expiration of the Class "B" Control Period, any unsold Lots owned by Declarant shall be subject to assessment on the same terms as all other Lots. 9.3 Computation of Master Assessment. On or before the end of each calendar year, the Board shall prepare and distribute to the Members a budget covering the estimated Common Expenses during the coming year (including, without limitation, a capital contribution to establish a reserve fund in accordance with a budget prepared as provided in Section 9.4) as and to the extent required in the Planned Community Act. 9.4 Capital Reserve Budget. The Board shall annually prepare a capital reserve budget for maintenance and replacement of capital improvements which shall take into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost.

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9.5 Special Assessments. In addition to other authorized assessments, the Association may levy Special Assessments from time to time to cover capital improvements or unbudgeted expenses (including, without limitation, expenses required to complete repair, maintenance and/or clean-up which the Board deems necessary or advisable after a storm, hurricane, or other casualty event) or other expenses in excess of those budgeted, The Board may establish the amount of the Special Assessment if it is Two Hundred Fifty Dollars ($250.00) or less in any assessment year for each Member. All other Special Assessments shall require the affirmative vote of sixty-seven percent (67%) of Members present and voting in person or by proxy who will be subject to such Special Assessment, and the affirmative vote or written consent of the Class "B" Member, if such exists. Special Assessments shall be payable in such manner and at such times as determined by the Board, and may be payable in installments extending beyond the fiscal year in which the Special Assessment is approved. 9.6 Individual Assessments. The Board shall have the power to levy Individual Assessments against a particular Lot or Lots constituting less than all Lots within the Properties as follows: (a) to cover the costs, including overhead and administrative costs, of providing benefits, items, or services to the Lot or occupants thereof upon request of the Owner pursuant to a menu of special services which the Board may from time to time authorize to be offered to Owners (which might include, without limitation, landscape maintenance, handyman service, pool cleaning, pest control, etc.), which assessments may be levied in advance of the provision of the requested benefit, item, or service as a deposit against charges to be incurred by the Association; (b) to cover costs, including overhead and administrative costs and reserves, incurred for maintenance, repair, and replacement of any roads, signs, mail boxes, fences, and berms which are constructed for the benefit of certain specified lots; (c) to cover costs incurred in bringing the Lot into compliance with the terms of these Protective Covenants, including, without limitation, Section 5.3, any applicable Supplemental Declaration, the Articles, the By-Laws, Rules and Regulations, or Design Guidelines or costs incurred as a consequence of the conduct of the Owner or occupant of the Lot, their lessees, licensees, invitees, or guest; provided, the Board shall give the Lot Owner prior written notice and an opportunity for a hearing before levying an Individual Assessment under this subsection (c); and (d) to cover any costs or expenses assessed against or charged to the Association by WLI Investments, LLC, its successors and assigns, or any club, association, or entity having authority over the operation of the Marina (a "Marina Operator") relative to such Owner's use and enjoyment of the Marina or any portion thereof (but only to the extent the Association elects to collect same, it being acknowledged that the Association shall have no obligation to collect same unless it otherwise agrees in writing). Notwithstanding the foregoing, the Association shall be entitled, in its discretion, to elect to include any charges it collects under this Section 9.6(d) as part of the Master Assessment. 9.7 Working Capital Assessment. Upon the conveyance of title to any Lot from the Declarant, or an Approved Builder, to anyone other than an Approved Builder, the acquiring Owner shall contribute to the Association, as working capital, a working capital assessment equal to one year of the then budgeted annual assessment for such Lot. Such funds shall be used for operating and capital expenses of the Association, including but not limited to, prepaid insurance, supplies, utilities and equipment, capital improvements and repairs, reserves, etc. Amounts paid into the working capital fund 16


are not to be considered advance payment of regular assessments. All working capital funds shall become part of the general operating funds of the Association. 9.8 Date of Commencement of Master Assessments and Due Dates. The Master Assessments provided for herein shall commence on the date of conveyance of each Lot to an Owner other than Declarant or Preferred Builder. The due dates shall be established by the Board of Directors. 9.9

Lien for Assessments.

(a) All assessments authorized in this Article shall constitute a lien against the Lot against which they are levied, until paid. The lien shall also secure payment of interest, late charges (subject to the limitations of North Carolina law), and costs of collection (including reasonable attorney’s fees). Such lien shall be superior to all other liens, except (a) the liens of all taxes, bonds, assessments, and other levies which by law would be superior; and (b) the lien or charge of any recorded first Mortgage made in good faith and for value. Such lien, when delinquent, may be enforced by suit, judgment, and judicial or nonjudicial foreclosure. (b) The Association may record notice of the claim of lien in the Office of the Clerk of Superior Court of Pender County or file a suit to collect such delinquent assessments and charges. The Association may file Notice of Lis Pendens, bring an action of law against the Owner personally obligated to pay the same, and/or bring an action to foreclose the lien against the property, or utilize any other remedy provided under North Carolina law. No Owner may waive or otherwise escape liability for the assessments provided for herein. (c) Upon foreclosure of the lien referenced in this Section 9.9, the Association may bid for the Lot at the foreclosure sale and acquire, hold, lease, mortgage, and convey the Lot. While a Lot is owned by the Association following foreclosure: (a) no right to vote shall be exercised on its behalf, (b) no assessment shall be levied on it; and (c) each other Lot shall be charged, in addition to its usual assessment, its pro rata share of the assessment that would have been charged such Lot had it not been acquired by the Association. The Association may sue for unpaid assessments and other charges authorized hereunder without foreclosing or waiving the lien securing the same, 9.10 Effect of Nonpayment of Assessments: Remedies of the Association: Any assessments or portion thereof which are not paid when due shall be delinquent. If the assessment or any portion thereof is not paid within thirty (30) days after the due date, the same shall bear interest from the date of delinquency at a rate not to exceed the maximum legal rate allowed in the State of North Carolina per annum and in addition, a late fee shall be assessed in such amount as may be determined by the Board of Directors. The Association may bring an action against the Owner personally obligated to pay the same or foreclose the lien against the property in the same manner as provided in North Carolina for the foreclosure of deeds of trust, or both, and, in either event, interest, costs and reasonable attorney's fees of any such action shall be added to the amount of such assessment. The sale or transfer of any Lot shall not affect the assessment lien or relieve such Lot from the lien for any subsequent assessments. 9.11 Failure to Assess. Failure of the Board to fix assessment amounts or rates or to deliver or mail each Owner an assessment notice shall not be deemed a waiver, modification, or a release of any Owner from the obligation to pay assessments. In such event, each Owner shall continue to pay Master Assessments on the same basis as for the last year for which an assessment was made, if any, until a new assessment is made, at which time the Association may retroactively assess any shortfalls in collections.

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9.12 Exempt Property. The following property shall be exempt from payment of Master Assessments, Service Assessments, and Special Assessments: (a)

all Common Area or Limited Common Area;

(b) any property dedicated to and accepted by any governmental authority, public utility, or private entity providing utility services including, without limitation, any property owned by the wastewater utility service provider, ONSWC; (c) any property held by a conservation trust or similar nonprofit entity as a conservation easement, except to the extent that any such easement lies within the boundaries of a Lot which is subject to assessment hereunder (in which case the Lot shall not be exempted from assessment); (d)

any Lot which is not approved by any governmental agency for residential use;

(e) any Lot owned by Bert L. Lea, Jr., Barbra Parker Lea, Dorothy Lea Medlin, Judy Lea Lane, and Charles M. Lane, or their children, grandchildren and great grandchildren born prior to 2060 (the “Leas�); provided however, if the Lea’s annex all or part of the Lea Division into the Residential Community pursuant to Section 8.1(b), then in which event no portion of the annexed properties shall enjoy the benefit of this Section 9.12(e) except as set forth in Section 12.12(c); and (f) any Lot or property owned of record by the Declarant, its successors or assigns, except as otherwise provided in Section 9.2. 9.13 Service Assessments. The Board shall have the power to levy Service Assessments against a particular Lot or Lots constituting less than all Lots within the Properties to cover the costs, including overhead and administrative costs, of providing specialized maintenance and/or landscaping services to such Lots and the occupants thereof (unless such maintenance is part of the services provided by the Association to Owners generally, in which case the cost of such maintenance shall be included in the Master Assessment). Such assessments may be levied in advance of the provision of the requested benefit, item or service as a deposit against charges to be incurred by the Owner. 9.14 Surplus Funds. Any excess of Association income over Common Expenses (as defined in Section 1.10 herein and which shall include reasonable reserves) shall be applied against the subsequent tax year's general assessments. ARTICLE 10 DESIGN GUIDELINES 10.1

General.

(a) No structures, buildings, improvements or construction, which shall include within its definition, clearing, grading, tree removal, excavation and other site work, shall be commenced, erected, or maintained upon any Lot or the Properties, nor shall any exterior addition to or change or alteration therein (including, without limitation, any change of color) be made to any Lot, except in compliance with this Article and the Design Guidelines, nor shall any such work commence until the Builder has been approved by the Committee and the plans and specifications showing the nature, kind, shape, heights, materials, and location of the same shall 18


have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Committee according to the provisions of Section 10.2. Structures, buildings, and improvements shall include, but not be limited to, any dwelling, garage, fence, wall, sidewalk, hedge, tree, mass planting, change in grade or slope, drainage pipe, drainage canal, ditch, swale, catch basin, swimming pool, treehouse, playhouse, sign, flag pole, antenna, satellite dish, exterior illumination, monument or marker, outdoor statuary, exterior lights, security lights, storm door, well utility facility, patio, deck, screening for outdoor trash cans or other purposes, sprinkler or irrigation system, driveway, outdoor decorative objects, shrubbery or landscaping. (b) No construction on any Lot shall commence until the builder on such Lot shall have submitted an application for approval, with required fees, to the Committee, and such application has been approved by the Committee. The Committee may refuse approval of any applicant if the Committee exercising its sole discretion finds any cause for such refusal. Upon approval, such builder shall be an “Approved Builder� as to the Lot for which plans have been submitted and approved pursuant to Section 10.4 below. (c) Any Owner may remodel, paint, or redecorate the interior of structures on his Lot without approval. Approval of the Committee shall, however, be required to repaint the exterior of a structure even in accordance with the originally approved color scheme or to rebuild in accordance with originally approved plans and specifications. (d) This Article shall not apply to the activities of the Declarant, nor to improvements to the Common Area by or on behalf of the Association. (e) This Article shall not apply to any structures in the Lea Division which are in existence at the time that the Lea Division is annexed into Salters Haven at Lea Marina, if said Lea Division is ever annexed. If the Lea Division is annexed, the Article shall continue apply to any new construction on Lots within the Lea Division, and to any reconstruction or repair of structures existing on the Lea Division at the time of annexation, where the cost of such repairs exceed $5000.00. (f) This Article shall not apply to the wastewater collection system for the Residential Community or any property owned to the wastewater utility service provider, ONSWC. (g) During the Class "B" Control Period, this Article may not be amended without the Declarant's written consent. 10.2

Architectural Review.

(a) Responsibility for administration of the Design Guidelines, as defined below, and review of all applications for construction and modifications under this Article shall be handled by the Committee as described in subsection (b) below. The members of the Committee need not be Members of the Association and may, but need not, include architects, engineers, or similar professionals, whose compensation, if any, shall be established from time to time by the Board. The Board may establish and charge reasonable fees for review of applications hereunder and may require such fees to be paid in full prior to review.

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(b) Architectural Review Committee (herein "Committee"). The Committee shall consist of at least three, but not more than five, persons and shall have exclusive jurisdiction over all construction on any portion of the Properties. For as long as Declarant or an Approved Builder owns any Lot within the Properties, the Declarant retains the right to appoint all members of the Committee who shall serve at the Declarant's discretion. After the sale of the last Lot owned by Declarant or the Approved Builder to a third party, the Board shall be entitled to appoint the members of the Committee, who shall serve and may be removed in the Board's discretion. 10.3 Guidelines and Procedures. The Declarant shall prepare the initial Design Guidelines and application and review procedures (the "Design Guidelines") which shall apply to all construction activities within the Properties. The Design Guidelines may contain general provisions applicable to all of the Properties, as well as specific provisions which vary from one portion of the Properties to another depending upon the location, unique characteristics, and intended use. The Committee shall adopt such Design Guidelines at its initial organizational meeting and thereafter shall have sole and full authority to amend them subject to the approval of the Board of Directors. The Committee shall make the Design Guidelines available to Owners who seek to engage in development or construction within the Properties and all such Persons shall conduct their activities in accordance with such Design Guidelines, 10.4

Submission of Plans and Specifications.

(a) No construction or improvements, as specified in Section 10.11(a), shall be commenced, erected, placed or maintained on any Lot, nor shall any exterior addition, change or alteration be made thereto, until the plans and specifications ("Plans") showing site layout, structural design, exterior elevations, exterior materials and colors, signs, landscaping, drainage, lighting, irrigation, utility facilities layout, and screening shall have been submitted to and approved in writing by the Committee. The Design Guidelines shall set forth the procedure for submission of the Plans. A reasonable fee for the review of said plans may be required by the Committee, in which case such fee shall be submitted along with said Plans and any other supporting documents required by Committee. The Board or the Committee may also require an additional security deposit to be posted prior to the commencement of any construction or work, which sum shall be used to collect any fees, fines or penalties incurred during construction or work. If such a security deposit is required, any portion of the security deposit remaining upon the completion of construction shall be returned to the Owner. (b) In reviewing each submission, the Committee may consider (but is not required to consider or limited to considering) visual aesthetics, natural platforms and finish grade elevations, harmony of external design with surrounding structures and environment, and location in the relation to surrounding structures and plant life. The Committee may require relocation of native plants within the construction site, or replacement of any native plants or trees as determined reasonable by the Committee, as a condition of approval of any submission. Location of any driveways shall be subject to the approval of the Committee. (c) The Committee shall have the right to refuse to approve any plans and specifications or grading plans which are not suitable or desirable, in its sole discretion, for aesthetic or any other reasons. In so approving such plans, specifications, and grading plans, the Committee shall consider the suitability of the proposed building, improvements, structure, or landscaping and the materials of which it is to be built, the site upon which it is proposed to erect the same, the harmony thereof with the surroundings, and the effect thereof on the adjacent or neighboring property. 20


(d) No bulldozing or clearing of trees or excavation of lakes or ponds shall be commenced until the plans, specifications, and grading plans showing the nature, kind, shape and location of work to be done shall have been submitted to and approved in writing by the Committee and a copy thereof, as finally approved, filed permanently with the Committee. (e) The Committee shall, within forty-five (45) days after receipt of each submission of the Plans, advise the party submitting the same in writing, at an address specified by such party at the time of submission, of (1) the approval of Plans, or (2) the segments or features of the Plans which are deemed by such committee to be inconsistent or not in conformity with these Protective Covenants and/or the Design Guidelines, the reasons for such finding, and suggestions for the curing of such objections. In the event the Committee fails to advise the submitting party by written notice within the time set forth above of either the approval or disapproval of the Plans, approval shall be deemed to have been given. Notice shall be deemed to have been given at the time the envelope containing such notice, properly addressed, and postage prepaid, is deposited with the U.S. Postal Service, registered or certified mail, return receipt requested. Personal delivery of such written notice shall, however, be sufficient and shall be deemed to have given at the time of delivery. (f) If construction does not commence on a project for which Plans have been approved within twelve (12) months of such approval, such approval shall be deemed withdrawn, and it shall be necessary for the Owner to resubmit the Plans for reconsideration. (g) Once construction has been initiated on a Lot, the Owner thereof must complete such construction within eighteen (18) months. If an Owner does not comply with such schedule, then Declarant, the Board, and the Association shall each have the right (but not the obligation) to complete such construction on Owner's behalf and at such Owner's expense. In the event the Declarant, the Board, or the Association exercises the right provided in the immediately preceding sentence, then Declarant, the Board, and/or the Association (as the case may be) shall be entitled to collect from such Owner, in addition to a reimbursement of all costs expended in the completion of construction of the Lot, an administrative fee for such work, which fee shall be equal to twenty percent (20%) of the costs incurred by such party in completing the work. Any and all of the foregoing costs and fees that may be incurred by or payable to Declarant, the Board and/or the Association shall be a charge and continuing lien upon such Lot until paid, and Declarant, the Board, and/or the Association may bring an action against such Owner, or foreclose the lien against the property in the same manner as provided in North Carolina for the foreclosure of deeds of trust, or both, and, in either event, interest, costs and reasonable attorneys’ fees of any such action shall be added to the amount payable to Declarant, the Board, and/or the Association. 10.5 No Waiver of Future Approvals. Each Owner acknowledges that the members of the Committee will change from time to time and that interpretation, application, and enforcement of the Design Guidelines may vary accordingly. Approval of proposals, plans and specifications, or drawings for any work done or proposed, or in connection with any other matter requiring approval, shall not be deemed to constitute a waiver of the right to withhold approval as to any similar proposals, plans and specifications, drawings, or other matters subsequently or additionally submitted for approval. 10.6 Variance. The Committee may authorize in its discretion reasonable variances or adjustments from compliance with any of its guidelines and procedures in order to alleviate practical difficulties and hardship in their enforcement and operation. Such variances may only be granted, however, when unique circumstances dictate, and no variance shall (a) be effective unless in writing; or 21


(b) stop the Committee from denying a variance in other circumstances. Any such variances shall not violate the spirit or the intent of this document to create a subdivision of Lots owned in fee by various persons with each such Owner having an easement upon areas owned by the Association. 10.7 Limitation of Liability. The standards and procedures established or authorized by this Article are intended as a mechanism for maintaining and enhancing the overall aesthetics of Salters Haven. Review and approval of any application pursuant to this Article are made on the basis of aesthetic considerations only and the Committee shall not bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring compliance with building codes and other governmental requirements, nor for ensuring that all dwellings are of comparable quality, value or size, of similar design, or aesthetically pleasing or otherwise acceptable to neighboring Lot owners. Neither the Declarant, the Association, the Board, nor the Committee shall be held liable for any injury, damages, or loss arising out of the review and approval of any application, including, but not limited to, the granting of a variance, the manner or quality of construction, or defects in any plans or specifications, or deficiencies in kind or quality of materials used, or any soil conditions, drainage or site work propose or approved, or for ensuring compliance with building codes and other governmental requirements. 10.8

Enforcement.

(a) Any structure or improvement placed or made in violation of this Article shall be deemed to be nonconforming. Upon written request from the Board or the Declarant, an Owners shall, at its own cost and expense, remove such structure or improvement and restore the land to substantially the same condition as existed prior to the nonconforming work. Should the Owner fail to remove and restore as required within thirty (30) days of being notified, then Declarant, the Board, and the Association shall each have the right to enter the property, remove the violation, and restore the property to substantially the same condition as previously existed; provided however, that if the violation is deemed by the Board or Declarant, in their sole discretion, to be a safety hazard or to require immediate remediation, then the Board or Declarant may immediately take the actions authorized hereunder to remove the violation. All costs, together with interest at the maximum rate then allowed by law, may be assessed against the Owner and the benefited Lot and collected as an Individual Assessment. In the event the Declarant, the Board, and/or the Association exercises any right provided above in this Section 10.8(a), then Declarant, the Board, and/or the Association (as the case may be) shall be entitled to collect from the relevant Owner, in addition to a reimbursement of all costs expended in the removal of the violation and/or the restoration of the property, an administrative fee for such work, which fee shall be equal to thirty percent (30%) of the costs incurred by such party in performing the work. (b) Any contractor, subcontractor, agent, employee, or other invitee of an Owner who fails to comply with the terms and provisions of this Article and the Design Guidelines may be excluded by the Board from the Properties. In such event, none of the Association, its officers, or its directors shall be held liable to any Person for exercising the rights granted by this paragraph. (c) The Association shall have the authority to establish fines for violations of this Article and the Design Guidelines, including fines for continuing violation & the fine amounts may be deducted from any bond posted. If the fines are not paid, the Association may establish an Individual Assessment in accordance with the provisions of Article 9.

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(d) In addition to the foregoing, the Association shall have the authority and standing to pursue all legal and equitable remedies available to enforce the provisions of this Article and the decisions of the Committee. 10.9 Landscaping of Interior Lots. Certain Lots shall require special plantings along their back common property lines to preserve privacy create a buffer between homes constructed on those lots. Specifically, Lots numbered 18, 19 and 75 through 86, as depicted on the map of subdivision for Salters Haven at Lea Marina, Phase 1 recorded in Map Book 65 Pages 97 through 101 of the Pender County Registry shall be required at the time of construction on such Interior Lots, to install and thereafter to maintain, indigenous evergreen shrubs (e.g.- wax myrtles or Ligustrum) of a variety as determined by the Committee. Such planting shall be 7 – 10 on eight foot centers but staggered on each lot such as to create a shadowbox type hedge along the common rear lot lines. Architectural Change Committee. At the discretion of the Declarant (or, if after the expiration of the Class "B" Control Period, at the discretion of the Association), either Declarant or the Association (as the case may be) shall have the option, but not the obligation, to establish an Architectural Change Committee to review minor changes or renovations to improvements previously approved by the Committee. If the Declarant or the Association elects to establish such an Architectural Change Committee, the Board shall establish guidelines regarding the operation and jurisdiction of such committee and shall appoint its members, each of whom shall serve and may be removed in the Board's discretion. Additionally, during the Class "B" Control Period, the Declarant shall have the right to remove and replace any member of the Architectural Change Committee. ARTICLE 11 USE GUIDELINES AND RESTRICTIONS 11.1

Plan of Development, Applicability, Effect.

(a) Declarant has created the Residential Community as a residential development and, in furtherance of its and every other Owner's interest, has established a general plan of development for the Residential Community. Accordingly, the Properties are subject to guidelines and restrictions governing land use, individual conduct, and uses of or actions upon the Properties as provided in this Article 11. These Protective Covenants establish affirmative and negative covenants, easements, and restrictions (the "Use Guidelines and Restrictions"). (b) All provisions of these Protective Covenants and of any Association rules shall also apply to all occupants, lessees, guests, and invitees of any Lot. Any lease on any Lot shall provide that the lessee and all occupants of the leased Lot shall be bound by the terms of these Protective Covenants, the By-Laws, and the Rules and Regulations of the Association. 11.2 Rules and Regulations. Subject to the terms of this Article 11, upon a majority vote of the Board, the Association may from time to time adopt, amend, and repeal Rules and Regulations with respect to all aspects of the Association's rights, activities, and duties under this Declaration. The Rules and Regulations may, without limitation, govern use of the Residential Community, including prohibiting, restricting, or imposing charges for the use of any portion of the Residential Community by Owners, Residents, or others. The Rules and Regulations may also interpret this Declaration and establish procedures for operation of the Association or the administration of this Declaration; provided, however, that the Rules and Regulations shall not be inconsistent with this Declaration, the Articles, or By-Laws. A copy of the Rules and Regulations, as they may from time to time be adopted, amended, or

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repealed, shall be maintained in the office of the Association and shall be available to each Owner upon request. 11.3

Owners' Acknowledgment.

(a) All Owners and all the Properties are subject to the Use Guidelines and Restrictions and are given notice that (a) their ability to use their privately owned property is limited thereby, and (b) the Board may add, delete, modify, create exceptions to, or amend the Use Guidelines and Restrictions in accordance with Section 11.2. (b) Each Owner, by acceptance of a deed, acknowledges and agrees that the use, enjoyment, and marketability of its property can be affected by these provisions, agrees to be bound thereby, and acknowledges that the Use Guidelines and Restrictions and rules may change from time to time. 11.4 Rights of Owners. Except as may be specifically set forth in Section 11.5, the Board may not adopt any rule in violation of the following restriction: No rules shall interfere with the activities carried on within the confines of Lots, except that the Association may prohibit activities not normally associated with property restricted to residential use, and it may restrict or prohibit any activities that create monetary costs for the Association or other Owners, that create a danger to the health or safety of occupants of other Lots, that generate excessive noise or traffic, that create unsightly conditions visible outside the Lot, that block the views from other Lots, or that create an unreasonable source of annoyance, or that create a nuisance. 11.5

Use Guidelines and Restrictions.

(a) General. The Properties shall be used only for residential and related purposes (which may include, without limitation, offices for any property manager retained by the Association, business or sales offices for the Declarant or the Association, and certain recreational uses ancillary to home ownership or as permitted in the Common Areas), except as otherwise provided herein. No commercial use shall be permitted on any Lot except in accordance with Section 11.5(m). (b) Animals and Pets. No animals, livestock, or poultry of any kind shall be raised, bred, kept, or maintained on any Lot or in any dwelling except a limited number of domestic household pets, which limit may be set by the Board. Domestic household pets may not be raised, bred, or kept for any commercial purpose. Pets must be leashed at all times when off Owner's Lot and droppings must be immediately removed. Fines assessed by the Association shall become an Individual Assessment in accordance with Article 9. All parties are hereby notified that, in the event any dog kept or maintained on a Lot or in any dwelling on the Properties barks excessively, continuously, or in a manner that constitutes a nuisance, the Board may require such dog to wear a collar designed to reduce or control such excessive barking (provided that such action shall in no event limit any other rights or remedies for such situation that may be available to the Board or to any other parties at law or in equity). (c) Placement of Outdoor Clothes Drying Structure. No outdoor poles, clotheslines, or similar equipment shall be erected or located on any Lot. (d) Offensive and Illegal Activities. No immoral, improper, illegal, noxious, or offensive activity shall be carried on upon any Lot, nor shall anything be done thereof tending to cause embarrassment, discomfort, annoyance or nuisance to the Association, the Declarant or any Owners. There shall not be maintained any plants or animals, odors, fumes, or device or anything of any sort 24


whose normal activities or existence are in any way noxious, dangerous, unsightly, unpleasant or of a nature as may diminish or destroy the enjoyment of other property in the neighborhood by the Owners thereof All laws, orders, rules, regulations, ordinances or requirements of any government agency having jurisdiction thereof, relating to any parties of the property, shall be complied with, by or at the sole expense of the Owner or of the Association, whichever shall have the obligation to maintain or repair such portion of the property. (e) Parking. Parking of vehicles on any street in the Properties shall be allowed only in accordance with the policy determined by the Board of Directors. No truck or other vehicle in excess of a three-quarter (3/4) ton load capacity, boat, vessel, motorboat, camper, trailer, motor or mobile home, or similar type vehicle or apparatus shall be parked or kept overnight or longer on any street or on any Lot unless it is stored in an enclosed garage or in such a manner as to not be visible to the Owners of other Lots or the users of a street or Common Area (it being agreed that if any screening or other improvements or landscaping used for the purpose of preventing visibility of such items shall be subject to the architectural review provisions of these Protective Covenants). All tools or other materials stored in vehicles for overnight parking shall be kept out of sight. No vehicles or equipment which are unsightly in appearance, as determined by the Board of Directors, shall be allowed to be stored in a manner so as to be visible to the Owners of other Lots or the users of a street or Common Area. (f) Repair or Removal of Buildings. Any dwelling or improvement on any Lot that is destroyed in whole or in part by fire or other casualty shall be either rebuilt or torn down and all debris removed and the Lot restored to a sightly condition with reasonable promptness, provided, however, that in no event shall such debris remain on such Lot longer than three (3) months. If a replacement Lot is to be constructed, the replacement Lot must be approved by the Committee in accordance with Article 10. (g) Outside Burning. No outside burning shall be permitted except as may be approved by the Board in advance (provided that in no event shall burning be permitted except in compliance with all applicable governmental regulations). This restriction shall not apply to outdoor firepits or fireplaces approved by the Architectural Review Committee or Board of Directors. (h) Signs. For as long as the Declarant, its successors or assigns, or an Approved Builder, owns any land within the Residential Community, no “For Sale� signs shall be allowed on, displayed from or visible from any Lot, including but not limited to, around, in, or affixed to any structure, trees, or other landscaping located thereon. Declarant, its successors or assigns, and any Approved Builder, have the absolute right to remove any such signage, and shall not be liable to the sign owner or the Lot Owner for trespass, conversion, destruction, or any other legal recourse. Subject to the foregoing, and further subject to applicable law, no signs, billboards, political signs or other advertising structure(s) of any kind shall be erected on any Lot or displayed to the public on any Lot or in any structure, subject to these restrictions, without prior written approval of the Committee. The Committee may approve or reject any request for signage or may approve with conditions including size limits. This covenant shall not apply to signs erected by the Declarant, including signs used to identify and advertise the Properties as a whole. Declarant or Committee has the right to enter upon the Lot and remove any unapproved sign. Any signs displayed within a structure shall be removed by the owner immediately upon notice thereof. Without limiting the foregoing, the Committee shall issue guidelines from time to time outlining the Residential Community's policy for the posting of small security system signs, "for sale" signs, and similar temporary signs by or upon any Lot (which policy shall include the permitted dimensions and appearance of such signs and may even prohibit such signs altogether). (i) Hunting and Fishing. No hunting or discharge of firearms within the subdivision is permitted. The Association, through its Board of Directors, reserves the right to control or remove 25


animals (including, without limitation, the authorization of bow hunting to reduce or eliminate nuisance animals) subject to rules and restrictions to be determined by the Board. Fishing shall be permitted only in locations designated by the Board from time to time and shall be subject to reasonable restrictions imposed by the Board. (j) Garbage. Garbage and trash shall be disposed by Owners in accordance with the rules and regulations of the Association. All trash receptacles and garbage cans shall be screened so as not to be visible by the Owners of other Lots or the users of any street or Common Area. All such screening shall be approved by the Committee. For the safety of the community and to decrease congestion and wear and tear on the Common Areas, the Association may impose a requirement that a single refuse collection company shall be used by all Lot Owners for trash and garbage removal in the Residential Community. (k) Antennas. No outside antennas or satellite dishes shall be erected on any Lot or structure unless and until permission for the same has been granted by the Committee. The design and location of the dish shall be approved by the Committee. (1) Well Installation. The Owners of single-family residential Lots shall be allowed to install one single well per Lot for the purpose of irrigating the land comprising the Lot. This right shall be subject to the Declarant's reservation of rights in all surface and sub-surface water in the Properties herein. All wells and pumps permitted under these Protective Covenants must be located so as not to be visible from any street or recreational area or Common Area and must be approved by the Committee, screened from view, and set back a minimum of fifty (50) feet from any street sewer line. Well water shall be free of or treated to be free of iron, manganese, and other substances causing discoloration of grass, plants, sidewalks, pavement, and structures. All structures within the Lot shall also be kept free from discoloration, including rust. In the event the use of water from any well is determined, in the Board's discretion, to be causing rust or discoloration on a Lot, the Board may require the Owner of such Lot to discontinue the use of such well. (m) Restricted Activities. The following activities are prohibited within the Properties unless expressly authorized by the Board subject to any conditions imposed by the Board: (i) Activities which materially disturb or destroy the vegetation, wildlife, water, or air quality within the Properties or which use excessive amounts of water or which result in unreasonable levels of sound or light pollution; (ii) Any Business or Trade, except that an Owner or occupant residing in a Lot may conduct business activities within the Lot so long as: (a) the existence or operation of the activity is not apparent or detectable by sight, sound, or smell from outside the Lot; (b) the activity does not involve visitation of the Lot by clients, employees, agents, customers, suppliers, or other business invitees, delivery services, or door-to-door solicitation of residents of the Properties; and (c) the activity is consistent with the residential character of the Properties and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Properties, as may be determined in the sole discretion of the Board. (iii) Nothing shall be kept, and no activity shall be carried on, in any building, structure, or home or on the Common Area which will increase the rate of insurance, applicable to residential use, for the property or the contents thereof. No Owner shall do or keep anything nor cause or allow anything to be done or kept in his home or on the Common Area which will result in the cancellation of insurance on any portion of the property, or the contents thereof, or 26


which will be in violation of any law, ordinance, or regulation. No waste shall be committed on any portion of the Common Area. (n) Property Damage. Owners shall be responsible for any damage done to any streets, roadways, access ways, curbing, street gutters, sidewalks, Common Areas, or property of other Owners within the Properties which may be caused by any Owner, his agents, contractor or its subcontractor lessees, employees, guests, licensees or invitees. The Association shall have the authority to assess any Owner for such damage and such charge shall be an Individual Assessment against the Owner and its Lot(s) and may be enforced in accordance with the provisions of Article 9 herein. (o) Junk Vehicles. No stripped, partially wrecked, or junk motor vehicle, or part thereof, or any motor vehicle not displaying a current valid inspection sticker shall be permitted to be parked or kept on any Lot. (p) Fuel Tanks. No fuel tanks or similar storage receptacles may be exposed to view. The placement of any such receptacles may be approved by the Committee or Declarant and may only be located within the main dwelling house, within an accessory building, within a screened area, or buried underground. (q) Mailboxes. Some Lots may be served by a single mailbox bank or kiosk. If that is the case, no mailboxes shall be installed or allowed to remain on any Lot which has a mailbox within such mailbox kiosk. Any Lots which are not served by such a mailbox kiosk may have individual mailboxes installed subject to the following: All mailboxes and other such receptacles must be approved in advance by the Committee. Any boxes provided by the Declarant on a Lot shall be considered an improvement and must remain with the Lot and must be maintained by the Lot Owner. Lost or damaged boxes and/or posts shall be repaired to an attractive condition or replaced by the Lot Owner within thirty (30) days of loss or damage. The restrictions in this subparagraph (q) shall not apply to any cluster mailboxes provided by Declarant on the Common Area (if applicable). (r) Outdoor Objects. No outdoor statuary, flags, or other decorative objects may be placed on any Lot without the written approval of the Committee. The American Flag no larger than 3 feet x 5 feet may be flown on a pole no longer than 5 foot 6 inches from a pole holder attached to the home in an approved location which can be reached by hand from the ground below so as to be easily installed and removed. Any flags shall be displayed in accordance with traditional rules and regulations governing the flying and display of the American Flag. (s) Alteration of Common Area. No Person shall undertake, cause, or allow any alteration or construction in or upon any portion of the Common Area except at the direction of and with the express written consent of the Committee. (t) Use of Common Areas. The Common Areas shall be used only for the purposes for which they are intended and reasonably suited and which are incident to the use and occupancy of the homes, subject to any Rules or Regulations that may be adopted by the Association hereunder or pursuant to its By-Laws. (u) Storage of Personal Property. All lawn mowers, bicycles, toys, grills, and other similar objects must be stored when not in use so as not to be visible by the Owners of other Lots or the users of any street or Common Area.

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(v) Exterior Features and Structures. All exterior storage areas, laundry facilities, utility areas, service yards or areas and carports are to be screened from view from streets and adjacent properties by an enclosure, fence, wall, or natural landscape materials. Any screening shall be subject to the architectural review requirements of these Protective Covenants. (w) Road Use. The roads are to be used by vehicles and pedestrians for the purposes of transportation. At no time shall any vehicle exceed the speed limit as determined by the Association or the applicable governmental authority. No permanent, frequent, or long-term parking is permitted along or on roads except in specifically designated areas. The Association is entitled to adopt reasonable rules and regulations regarding the supervision, maintenance, control, regulation, and use of the roads and promenades, and to enforce the same in any lawful manner which may include, but not be limited to, the imposition of fines for violations thereof, which fines shall be Individual Assessments and may be enforced in accordance with the provisions of Article 9. (x)

Declarant's Activities.

(i) This subsection 11.5 shall not apply to any activity conducted by the Declarant or its assigns, or Featured Builders, with respect to its development and sale of the Properties or any commercial activities of the Declarant or its assigns, including any sales office maintained by Declarant or its assigns, and (ii) Declarant and Featured Builders shall be specifically authorized to rent or lease any Lot which it owns or manages for other Owners, and to maintain model Lots or sales offices in any Lot which it owns or leases. (y) Activities of ONSWC. This subsection 11.5 shall not apply to any activity conducted by ONSWC with respect to the operation, maintenance, repair, or replacement of the wastewater collection system or any components thereof serving the Residential Community. 11.6 Stormwater Runoff Rules. The covenants in this Section 11.6 are intended to ensure ongoing compliance with State Stormwater Management Permit Number SW8 190103 (the "Permit"), as issued by the North Carolina Division of Water Quality ("NCDWQ") under NCAC2H.1000 (a) The State of North Carolina is made a beneficiary of these covenants to the extent necessary to maintain compliance with the Permit. (b) The covenants under this Section 11.6 are to run with the land and be binding on all persons and parties claiming under them. (e) The covenants under this Section 11.6 pertaining to stormwater regulations may not be altered or rescinded without consent of NCDWQ. (d) Alteration of the drainage as shown on the plans for the Subdivision approved by NCDWQ may not take place without the concurrence of NCDWQ. (e) The maximum built upon area per lot is set forth as Exhibit B attached hereto. This allotted amount includes any built-upon area constructed within the lot property boundaries, and that portion of the tight-of-way between the front lot line and the edge of the pavement. Built upon area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate,

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coquina, driveways, and parking areas, but does not include raised, open wood decking or the water surface of swimming pools. (f) Affected lots shall provide a 50-foot-wide buffer adjacent surface waters, measured horizontally from and perpendicular to the normal pool of impounded structures, the top of bank of both sides of streams and rivers, and the mean high-water line of tidal waters. (g) Lots within CAMA's Area of Environmental Concern may have the permitted built-upon area reduced due to CAMA jurisdiction within the AEC. (h) All runoff on the lot must drain into the permitted system. This may be accomplished through providing roof drain gutters which drain to the street, grading the lot to drain toward the street, or grading perimeter swales and directing them into the pond or street. Lots that will naturally drain into the system are not required to provide these measures. (i) modification.

Built-upon area in excess of the permitted amount will require a permit

(j) Any individual or entity found to be in noncompliance with the provisions of a stormwater management permit or the requirements of the stormwater rules is subject to enforcement procedures as set forth in G.S. 143 Article 21. (k) Declarant hereby reserves the right to impose additional restrictions upon the Properties as and to the extent required by the terms of the Permit. Further, Declarant may reallocate any unused BUA for any Lot to any other Property within Salters Haven, by modifying the Stormwater Permit. Such additional restrictions, or permitted reallocation of BUA, may be imposed or established by Declarant, by the recording of an Amendment to the Declaration, and no joinder or consent of the Association or any Owner or other Person shall be required. 11.7 Piers and Dock Structures. No piers, dock structures, or mooring mechanisms shall be erected, installed, or maintained from the Lots described in Exhibit C into the waters of the canal extending from the boat basin to the Atlantic Intracoastal Waterway (the “Lea Canal�). Owners of the Lots described in Exhibit D are permitted to erect, install, and maintain pier or dock structures from their respective Lots subject to applicable CAMA restrictions and any additional restrictions set forth in Exhibit D. No dock or pier extending from the Lots described in Exhibit D shall interfere in any material way with the free passage of vessels through Lea Canal. ARTICLE 12 EASEMENTS 12.1

Easements for Utilities.

(a) There are hereby reserved unto Declarant (for the duration of the Class "B" Control Period) and for the Association, and for the designees of each, access and maintenance easements upon, across, over, and under all of the Properties to the extent reasonably necessary for the purpose of replacing, repairing, and maintaining any cable television system, any master television antenna system, irrigation systems, any security and similar systems, roads, walkways, bicycle pathways, recreation pathways, trails, ponds, lakes, wetlands, drainage systems, street lights, signage, and all utilities, including, but not limited to, water, sewer, meter boxes, telephone, garbage pickup, electricity, and irrigation, and for the purpose of installing any of the foregoing on property which it owns or within easements designated for such purposes in these 29


Protective Covenants or on recorded plats of the Properties. Any damage to a Lot resulting from the exercise of this easement shall promptly be repaired by, and at the expense of, the Person exercising the easement rights. Utilities may not be installed or relocated on the Properties, except as approved by the Board or Declarant. (b) There is hereby reserved unto ONSWC an easement for ingress, egress, regress, and access to, over, and upon the Properties to the extent necessary to install, operate, maintain, repair, and replace the wastewater collection system and all components thereof. The easement area for the wastewater collection system easement provided herein shall be consist of (i) the rights of way of all publicly dedicated streets and roads within the Residential Community; (ii) to the extent any portion of the wastewater collection system is not within publicly dedicated rights of way, the total width of fifteen (15) feet centered on the wastewater collection system main for ingress, egress, regress, and access to install, operate, maintain, repair, and replace such portion of the wastewater collection system; and (iii) for each wastewater service line a perpetual easement with a total width of ten (10) feet centered on the wastewater service line. 12.2

Easement for Utility Installation.

(a) All of the Property, including Lots and Common Area, shall be subject to a perpetual non-exclusive easement for water lines, sanitary sewers, storm drainage facilities, telephone and electric power lines, television antenna lines, and other public utilities over and across ten (10) feet of each Lot which adjoins any road or street, and also as further may be established by the Declarant and as may hereinafter be designated on any plat or replat of parcels within the Residential Community whether the same be within the boundaries of any Lot(s). (b) Easements and rights of way over and upon the rear, front, and side five (5) feet of each Lot, and upon the front ten (10) feet of each Lot abutting any road or street, for drainage and the installation and maintenance of utilities and services, including, without limitation, water, sewer, drainage, and stormwater runoff facilities, are reserved to Declarant and its successors and assigns for such purposes as Declarant may deem incident and appropriate to its overall development plan. If the side setback is less than five (5) feet, then the reserved easement shall be the width of the setback. The easements and right of way areas reserved by Declarant on each Lot pursuant hereto shall be maintained continuously by the Owner, but no structures or plantings or other material shall be placed or permitted to remain upon such areas; or other activities be 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. Improvements within such areas also shall be maintained by the respective Owner except those for which a public authority or utility company is responsible. These easements and rights expressly include the right to cut any trees, bushes, or shrubbery, make any gradings of the soil, or to take any other similar action reasonably necessary in the opinion of the Declarant to provide an economical and safe installation. The Declarant shall have no maintenance responsibilities for such easement areas. (c) The Declarant reserves a perpetual, non-exclusive easement for the installation, maintenance, and repair of water, sewer, drainage and all other utilities within the right of way of all roads and streets and other areas as shown on the recorded plats of the Property, which easement may be exercised by Declarant or any public or private entity charged with the responsibility of maintenance and repair.

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(d) The Association hereinafter may grant easements for utility purposes over, under, along, and through the Common Areas for the benefit of the Properties and the Lots now or hereafter located thereon. Provided, however, that no such grant of easement shall have a material adverse effect on the use, enjoyment, or value of any Lot. 12.3 Easements to Serve Additional Property. The Declarant hereby reserves for itself and its duly authorized agents, representatives, employees, successors, assigns, licensees, and mortgagees, an easement over the Common Area for the purposes of enjoyment, use, access, and development of any Future Development Property, whether or not such property is made subject to these Protective Covenants. This easement includes, but is not limited to, a right of ingress and egress over the Common Area for construction of roads and for connecting and installing utilities on such property, and the right to pass over and through the Property for ingress, egress and regress to and from any adjoining tracts of land. 12.4 Easement for Yacht Club. Salters Haven Yacht Club, Inc. and its Members shall enjoy an easement and right of use of all the roads, outdoor shower facilities, bath houses, parking areas, boardwalks, and walkways. Such easement right is established for the reasonable use of those identified Common Areas by the Members, subject to the reasonable uniform Rules and Regulations duly adopted and published by the Board. Easements are also specifically reserved for the benefit of Salters Haven Yacht Club, Inc. over the areas depicted on any plat or replat of the parcels within the Residential Community as “Bulkhead & Retaining Wall Maintenance Easement”, “6’ Boardwalk Maintenance & Pedestrian Easement”, or similar designation for the maintenance, repair, upkeep, and replacement all boardwalks, bulkheading, retaining walls, utility posts, huts, clean outs, and other structures which are for the benefit of Salters Haven Yacht Club, Inc. and its Members. Notwithstanding the foregoing, and subject to Committee approval, owners of Lots 50, 51, 52, 53, 54, 55, 56 and 57, shall be allowed to use the area within the Bulkhead and Retaining Wall Easement for a removeable deck and seating area, fish cleaning station, and similar uses, provided no structure shall be place within the easement area that would unreasonably obstruct the view of adjoining Lots. 12.5

Easements for Cross-Drainage.

(a) Every Lot and the Common Area shall be burdened with easements for drainage of water runoff from other portions of the Properties; provided, no Lot Owner shall alter the drainage on any Lot so as to materially increase the drainage of water onto adjacent portions of the Properties without the consent of the Owner of the affected property. (b) The Properties are burdened with a permanent easement for the benefit of the Declarant and its successors and assigns for the stormwater runoff and drainage facilities located on the Properties, including, without limitation, any stormwater retention ponds or ditches and a ten foot (10’) drainage and maintenance easement extending out from the top of the bank of all stormwater ponds depicted on any plats or replats of the parcels within the Residential Community. The easement rights described herein include the right to drill, install, locate, maintain, and use pipes, conduits, and pumps running to the stormwater retention ponds and other related facilities located on the Properties. 12.6 Power to Grant Easements. Subject to the requirements of the Planned Community Act, the Association shall have the power and authority to grant and to establish such further easements in, over, upon, and across the Common Area as necessary for the convenient use and enjoyment of the property. 31


12.7 Easement for Entry. The Association has the right, but not the obligation, to enter upon any Lot for emergency, security, and safety reasons, to perform maintenance pursuant to Article 5 hereof, and to inspect for the purpose of ensuring compliance with these Protective Covenants, any Supplemental Declaration, the Articles, By-Laws, the Use Guidelines and Restrictions, and the Rules and Regulations, which right may be exercised by any member of the Board, the Association, officers, agents, employees, and managers of the Association, and all policemen, firemen, ambulance personnel, and similar emergency personnel in the performance of their duties. Except in an emergency situation, entry shall only be during reasonable hours and after notice to the Owner. This right of entry shall include the right of the Association to enter upon any Lot to cure any fire or other hazard in the event an Owner fails or refuses to cure the condition within a reasonable time after request by the Board, but shall not authorize entry into any single family detached dwelling without permission of the Owner, except by emergency personnel acting in their official capacities. 12.8 Easement Maintenance. Except as provided in Article 5 herein, maintenance of any berm areas and water, sewer, or drainage easement shall be the responsibility of the Owner of the Lot on which said easement is located. No structure, planting, or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities, sewer, or drainage facilities, or which may change the direction of flow of drainage channels in the easements. The easement area of each Lot and all improvements in it shall be maintained continuously by the owner of the Lot, except for those improvements for which a public authority or utility company is responsible. 12.9

Easement for Irrigation.

(a) There is hereby reserved for the benefit of the Declarant, the Association, and their successors and assigns, a permanent exclusive easement and right (1) to pump water from any ponds, waterways, basins, water table, wells, water dependent structures, and other bodies of water located in, on, or under the Properties for the purpose of irrigating any portion of the Properties, and (2) to drill, install, locate, maintain and use wells, pumping stations, water towers, filtration basins, tanks, and related water facilities and systems within the Common Areas and/or lands within the Properties owned by the Declarant. The pumping or other removal of any water from any pond or body of water wholly or partly within the Properties, for any purpose other than fire-fighting and as provided herein is prohibited without express written permission of the Declarant and/or the Association. (b) The Property is hereby burdened with a permanent, exclusive easement in favor of the Declarant and its successors and assigns, for overspray and/or surface or subsurface flow of water from any irrigation system serving the Properties. Under no circumstances shall the Declarant or the Association be held liable for any damage or injury resulting from said water, or the exercise of this easement. 12.10 Easements for Owner's Ingress and Egress. Every Owner, and his or her heirs, successors, assigns, guests, and licensees, shall have a perpetual easement and right of ingress and egress over and across any of the roads and sidewalks located or to be located within the Properties, as shown on any recorded plats of the Property, for the purpose of providing vehicular and pedestrian access to and from the Properties. Notwithstanding the foregoing, Declarant shall be entitled to restrict access on certain roads and sidewalks in Declarant's discretion. Accordingly, the use of such roads and sidewalks shall be subject to applicable Rules and Regulations. 12.11 Easement for Pathways. Each Owner, and their authorized guests or invitees, shall have a perpetual, non-exclusive easement for the use and enjoyment of bicycle paths, pedestrian paths, golf cart 32


paths and parking areas, and nature preserve trails, if any, which may be established by the Declarant. Notwithstanding the foregoing, Declarant shall be entitled to restrict access to the aforementioned improvements and amenities in Declarant's discretion. Accordingly, the use of such improvements and amenities shall be subject to applicable Rules and Regulations. 12.12

Common Area Easement.

(a) Every Owner of a Lot within the Properties, as an appurtenance to such Lot, shall have a perpetual easement over and upon the Common Areas within the Properties for each and every purpose or use to which such Common Areas were intended as determined by their type, or for which such Common Areas generally are used, including, but not limited to, easements for access, maintenance, repair or replacement of the Common Areas. Such easements shall be appurtenant to and shall pass with the title to every Lot located within the Properties, whether or not specifically included in a deed thereto. (b) An exclusive easement is hereby established in favor of Declarant over all Common Areas for access to adjacent properties for the purposes of future development and the installation of streets and public utilities. (c) Bert L. Lea, Jr. and his wife Barbra Parker Lea; Dorothy Lea Medlin; Judy Lea Lane and her husband Charles M. Lane; and their children, grandchildren, and greatgrandchildren born before 2060 (collectively, the “Leas”) shall be entitled to the free use (without any fees of any kind) of any clubhouse, pools, amenities, roads and streets (whether private or public) which form a portion of the Common Areas. Such right of use shall not be transferrable. All provisions of these Protective Covenants and any Association Rules shall apply to the right of the Leas to use the areas described; provided however, the Leas shall not be obligated to pay the assessments described in Article 9, nor shall they be entitled to any voting rights in the Association. The grant described in this section shall be limited to the use of the areas described herein and shall not include the use of any boat slips or marina facilities described in Section 2.2. In the event all or part of the Lea Division as defined in Section 8.1(b) are annexed into the development, the annexed properties owned by the Leas shall not be required to contribute to the costs of repair, maintenance and replacement of the streets and roads within the Residential Community but otherwise the annexed properties shall not enjoy the benefit of this subsection (c). Further, the Association shall not be responsible for the cost of repair, maintenance and replacement of any streets, roads and any other improvements within the Lea Division. This subsection (c) shall not be amendable except with the consent of the Leas. 12.13 Easements for Stormwater Discharge. All areas depicted on any plat or replat of parcels within the Residential Community as “wetland”, “stream”, “pond”, “waters of the U.S.”, and “stormwater BMP” are subject to an approved stormwater permit issued by the North Carolina Department of Environmental Quality (State Stormwater Permit No. SW8 190103) and a U.S. Army Corps of Engineers Permit (SAW-2018-01501) regarding stormwater discharge and design and wetland, stream, and RPW impacts. An easement is reserved in favor of the Declarant and the Association for discharge of stormwater into, upon, and across all such areas, subject to the permits named herein and any other current or future approved permits or modifications to permits. 12.14 Easements for Sign and Entrance Landscaping. Easements are specifically reserved unto the Declarant and the Association over the areas depicted on any plat or replat of the parcels within the Residential Community as “Landscape and Sign Easement” for the installation, construction, maintenance, repair, re-construction, and upkeep of entrance signage and landscaping related thereto. 33


12.15 Easements for Sight Triangles. An easement is specifically reserved unto the Declarant and the Association upon all Lots shown on the subdivision plats for the Residential Community located at an intersection of one public or private street with another public or private street, which easements shall measure 10’ x 70’ in size and shall be located on the corner of the Lots adjacent to a street intersection. Such easements may be depicted on subdivision plats as “10 x 70 Sight Triangle (TYP.)”. The Association shall be responsible for maintaining such easement in a reasonable condition and for maintaining any structure, including fences, columns, traffic control devices, entrance signs, and monuments, originally constructed by Declarant within such easement, with access provided across said Lots. The owner of a Lot upon which such easement is located may not cause any object, such as a building, wall, parked car, tree, bush, hedge, tall crop, sign, to be placed or to remain in the easement area which may impair the sight lines of drivers or pedestrians approaching or traveling along the sidewalk or roadway adjacent to the easement, nor may the owner of such Lot impair the use or maintenance of the easement by the Association in any way. The easement rights described herein shall be solely for the benefit of the Declarant and the Association, and none of the Members shall be vested with any rights of access onto the Lot of another by virtue of the easement granted herein, except for conducting the activities described herein and on behalf of the Declarant, or the Association. The easement rights and restrictions herein shall also apply to any area depicted on subdivision plats for the Residential Community as “Sight Easement” or similar designation. 12.16 Easements Run with the Land. All easements and rights described herein are easements appurtenant, running with the land, and shall inure to the benefit of and be binding on all undersigned, its successors and assigns, and any Owner, purchaser, Mortgagee, and other person having an interest in said land, or any part or portion thereof, regardless of conveyance, or in any mortgage or trust deed or other evidence of obligation, to the benefit of and to be binding on the undersigned, its successors and assigns, and any Owner, purchaser, Mortgagee and other person having an interest in said land, or any part or portion thereof, regardless of whether or not reference to said easement is made in the respective deeds of conveyance, or in any Mortgage or deed of trust or other evidence of obligation, to the easements and rights described in these Protective Covenants. ARTICLE 13 MORTGAGEE PROVISIONS 13.1 Notice to Association. Upon request of the Association, each Owner shall be obligated to furnish to the Association the name and address of the holder of any Mortgage encumbering such Owner's Lot. 13.2 Failure of Mortgagee to Respond. Any Mortgagee who receives a written request from the Board to respond to or consent to any action shall be deemed to have approved such action if the Association does not receive a written response within sixty (60) days of the mailing of such request, provided such request is delivered to the Mortgagee by certified or registered mail, return receipt requested. ARTICLE 14 DECLARANT'S RIGHTS 14.1 Transfer of Declarant's Rights. Any or all of the special rights and obligations of the Declarant set forth in these Protective Covenants or the By-Laws may be transferred to other Persons, provided that the transfer shall not reduce an obligation nor enlarge a right beyond that contained in these Protective Covenants or the By-Laws. No such transfer shall be effective unless it is in a written

34


instrument signed by the Declarant and duly recorded in the land records of Pender County, North Carolina. 14.2 Rights of Declarant and Approved Builders. Notwithstanding anything in these Protective Covenants to the contrary, the Declarant, its successors and assigns, D I. Logan, and Approved Builders, may maintain and carry on such facilities and activities as, in the sole opinion of the Declarant, may be reasonably required, convenient, or incidental to the construction or sale of such Lots, including, but not limited to, the construction and use of sales and business offices, signs, and model Lots, and the use of any Common Areas and any facilities therein. The Declarant, its successors and assigns, D I. Logan, and Approved Builders shall have easements for access to and use of such facilities. 14.3 Rights to Alter. The rights reserved by Declarant in these Protective Covenants (including, without limitation, the right to annex property under Article 8 herein) include the right to change, alter, or designate Lot(s), roads, utility and drainage facilities and easements, and to change, alter or re-designate such other present and proposed amenities or facilities as may in the sole judgment of the Declarant, be necessary or desirable. The rights reserved in this Section specifically include the right of Declarant to re-designate, change, or alter any platted Lot(s) into road(s). 14.4 Use of Capital Funds. During the Class "B" Control Period, the Declarant is authorized to use working capital funds and capital reserve funds for the purpose of maintaining, replacing, repairing, constructing, reconstructing, renovating, and improving any common areas, including without limitation public roads which have not been accepted by NCDOT and stormwater systems that serve the Residential Community. ARTICLE 15 DURATION, AMENDMENT AND TERMINATION 15.1 Lots, Persons and Entities Subject to the Protective Covenants, Duration and Termination. All present and future Owners, tenants, and occupants of Lots and their guests or invitees, licensees, employees or agents, shall be subject to, and shall comply with the covenants, conditions, restrictions and affirmative obligations set forth in these Protective Covenants, and as the Protective Covenants 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 Lot shall constitute an agreement that the provisions of these Protective Covenants are accepted and ratified by such Owner, tenant, or occupant and that they will fully comply with the terms and conditions of said Protective Covenants. The covenants, conditions, restrictions, and affirmative obligations of these Protective Covenants shall inure to the benefit of and be enforceable by the Association, or the Owner of any Lot, their respective legal representatives, heirs, successors, and assigns, for a term of forty (40) years from the date these Protective Covenants are recorded in the Pender County Registry, after which date these Protective Covenants shall be automatically extended for successive periods of ten (10) years, unless these Protective Covenants are terminated as provided in ยง47F-2-118 of the Planned Community Act (provided that, during the Class "B" Control Period, any termination shall also require the consent of Declarant). The covenants, restrictions, conditions, and affirmative obligations of these Protective Covenants shall run with and bind the land and shall bind any person having at any time any interest or estate in any of the Properties as though such provisions were made a part of each and every deed of conveyance or lease. 15.2 Amendment. During the Class "B" Control Period, these Protective Covenants may be amended by Declarant in its discretion. Retention of this right by the Declarant is not intended to affect the general or common scheme of development for the property herein described but to correct, address, and/or modify situations or circumstances which may arise during the course of development. Thereafter, 35


these Protective Covenants may be amended by vote of not less than sixty-seven percent (67%) of the Class "A" Members, and an instrument must be recorded at the Pender County Registry for such an amendment to be effective. In addition, the Declarant may amend these Protective Covenants to annex additional property and make it subject to the terms, conditions, restrictions, obligations and covenants of these Protective Covenants as provided in Article 8 herein. No amendments may remove, revoke, or modify any benefit, right or privilege of the Declarant hereunder without the written consent of the Declarant or the assignee of such right or privilege. Further, no amendments may remove, revoke, or modify the provisions of Section 8.1 (b), 9.12 (e), or 12.12 (c) without the written consent of the Leas. 15.3 Storm Water Restrictions. Notwithstanding the foregoing to the contrary, Declarant shall be entitled to unilaterally amend these Protective Covenants as provided in Section 11.6 herein.

ARTICLE 16 COMPLIANCE WITH THESE PROTECTIVE COVENANTS, THE ARTICLES, THE BY-LAWS, THE USE GUIDELINES AND RESTRICTIONS, AND THE RULES AND REGULATIONS OF THE ASSOCIATION In the case of failure of an Owner to comply with the terms and provisions contained in these Protective Covenants, the Articles, the By-Laws, Use Guidelines and Restrictions, or Rules and Regulations of the Association, the following relief shall be available: 16.1 Enforcement. The Association, the Declarant, and any aggrieved Owner within the Residential Community shall have the right to enforce by any proceeding at law or in equity, all of the conditions, covenants, and restrictions of these Protective Covenants and the Articles, By-Laws, Use Guidelines and Restrictions, and Rules and Regulations of the Association and any and all laws hereinafter imposed pursuant to the terms of these Protective Covenants. The prevailing party shall be entitled to collect all costs thereof, including reasonable attorney's fees (which shall be determined using reasonable hourly rates). 16.2 Remedies. The Association shall have the right to remedy the violation and assess the costs of remedying same against the offending Owner as an Individual Assessment as provided in Article 9 herein. 16.3 Suspension of Rights. For any violation by an Owner, including, but not limited to, the nonpayment of any general, special, or individual assessment, the Association shall have the right to suspend the offending Owner's voting rights and the use by such Owner, his agents, lessees, employees, licensees and invitees of the Common Areas and recreational facilities in the Residential Community for any period during which a violation continues. 16.4 Fines. The Association may establish a schedule of fines for the violation of these Protective Covenants, the Articles, By-Laws, Use Guidelines and Restrictions, and Rules and Regulations. If an Owner does not pay the fine within fifteen (15) days, the fine shall be an Individual Assessment against the property and may be enforced by the Association in accordance with Article 9 herein. 36


16.5 Remedies Cumulative. The remedies provided by this Article are cumulative and are in addition to any other remedies provided by law. 16.6 Waiver. The failure of the Association or any person or Owner to enforce any restriction contained in these Protective Covenants, the Articles, the By-Laws, the Use Guidelines and Restrictions, or the Rules and Regulations shall not be deemed a waiver of the right to do so thereafter. ARTICLE 17 GENERAL PROVISIONS 17.1 Common Area and Amenities. All of the Common Area and any other park, recreation area, recreation facility, dedicated access, or other amenity appurtenant to the Properties, whether or not shown and delineated on any recorded plat of the Properties, shall be considered private and for the sole and exclusive use of the Owners of Lots within the Properties. Neither Declarant's execution nor the recording of any plat nor any other act of Declarant with respect to such area is, or is intended to be, or shall be construed as a dedication to the public of any such areas, facilities, or amenities. 17.2 Conflict. In the event of any irreconcilable conflict between these Protective Covenants and the By-Laws or Articles of the Association, the provisions of these Protective Covenants shall control. 17.3 Severability. Invalidation of any one of these covenants or restrictions by judgment or any court, agency, or legislative order shall in no way affect any other provision, covenants, conditions, or restrictions contained in these Protective Covenants. 17.4 Captions. The captions preceding the various Articles of these Protective Covenants are for the convenience of reference only and shall not be used as an aid in interpretation or construction of these Protective Covenants. As used herein, the singular includes the plural and where there is more than one Owner of a Lot, said Owners are jointly and severally liable for the obligations herein imposed. Throughout these Protective Covenants, references to the masculine shall be deemed to include the feminine, the feminine to include the masculine and the neuter to include the masculine and feminine. 17.5 Use of the Words "Salters Haven". No Person shall use the words "Salters Haven", any derivative or any other term which Declarant may select as the name of the development or any component thereof in any printed or promotional material without the Declarant's or the licensee's prior written consent. However, Owners may use the words "Salters Haven" in printed or promotional matter solely to specify that particular property is located within the Properties and the Association shall be entitled to use the words "Salters Haven" in its name. [Signature pages follow]

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IN TESTIMONY WHEREOF, the parties hereto have caused this instrument to be executed as of the date first above written.

WLI INVESTMENTS, LLC

BY: D I. LOGAN, Manager

State of North Carolina County of __________________

I, , a Notary Public of County, North Carolina do certify that on this _______ day of _____________________, 2020, before me personally appeared D I. Logan, Manager of WLI Investments, a North Carolina Limited Liability Company personally known to me; proved to me by satisfactory evidence; proved to me on the oath or affirmation of personally known to me,

who is

to be the person(s) whose name(s) is/are signed on the preceding or attached record, and acknowledged to me that he/she/they signed it voluntarily for its stated purpose.

Notary Public (Seal) My Commission expires:

.

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CONSENT OF MORTGAGEE Flagstar Bank, FSB is the holder of that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement And Fixture Filing on the property described in the foregoing Master Declaration of Protective Covenants for Salters Haven at Lea Marina (herein called, "Protective Covenants"), said Deed of Trust having been filed in Book 4687 at Page 2405 in the Office of the Register of Deeds of Pender County, as Amended and Restated by that Amended and Restated Deed of Trust, Assignment of Leases And Rents, Security Agreement And Fixture Filing filed in Book 4707 Page 2413 in the Office of the Register of Deeds of Pender County (collectively, “Deed of Trust�); and as holder of said Deed of Trust does hereby consent to the terms, conditions, and covenants in the Protective Covenants and agrees that the lien of said Deed of Trust is subject to the terms, conditions, and covenants contained in said Protective Covenants. In witness whereof, Flagstar Bank, FSB has caused this Consent of Mortgagee to be signed in its company name by its duly authorized officer or agent for the purposes herein set forth this the ___ day of ____________, 2020. FLAGSTAR BANK, FSB

BY: NAME: ________________________________ TITLE: _________________________________ State of North Carolina County of __________________

I, ______________________________, a Notary Public of ________________ County, North Carolina do certify that on this ____ day of ______________, 2020, before me personally appeared ___________________________, and acknowledged that he/she is ____________________________ of FLAGSTAR BANK, FSB, and that he/she, as _____________________________, being authorized to do so, executed the foregoing Consent of Mortgagee on behalf of Flagstar Bank, FSB. WITNESS my hand and official seal this the ______ day of _________________, 2020.

Notary Public (Seal) My Commission expires:

.

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EXHIBIT A Legal Description

BEING all of that real property described as TRACT 1, consisting of 68.808 acres, more or less, as shown on that map recorded in Map Book 63, Page 139-140, Pender County Registry, reference to which map is hereby made for a more particular description; LESS AND EXCEPT, so much of said TRACT 1 as heretofore conveyed to Salters Haven Yacht Club, Inc., recorded in Deed Book 4708, Page 2681-2685 of the Pender County Registry.

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EXHIBIT B BUILT UPON AREA LIMITATIONS Salters Haven

LOT NUMBER

BUILT UPON AREA

Lots 1-37 & 75-119

6,500 square feet

Lots 38-54

4,200 square feet

Lots 55-65 & 68-74

4,500 square feet

Lots 66-67

5,000 square feet

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EXHIBIT C LOTS UPON WHICH NO PIERS, DOCKS STRUCTURES, OR MOORING MECHANISMS SHALL BE ERECTED, INSTALLED, OR MAINTAINED

In accordance with Section 11.7 of the Protective Covenants, no piers, docks, docking structures, pilings, dolphins, boat lifts, equipment, structures or mooring mechanisms shall be erected, installed, or maintained on the following Lots: 58, 59, 66 and 67

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EXHIBIT D LOTS UPON WHICH PIER OR DOCK STRUCTURES MAY BE ERECTED, INSTALLED, OR MAINTAINED SUBJECT TO THE PROTECTIVE COVENANTS

Pursuant to Section 11.7 of the Protective Covenants, Owners of the following Lots are permitted to erect, install, and maintain pier or dock structures from their respective Lots, for no more than a single vessel each: 50, 51, 52, 53, 54, 55, and 56. The Owner of the Lot 57 is permitted to erect, install, and maintain a pier or dock structure, for no more than a single vessel, provided, however, that such pier or dock structure shall not be located nearer than thirty-three (33) feet south of the northernmost property line of said Lot 57. Any docks, piers, boat lifts, pilings, dolphins, or any other material or equipment (collectively, “dock”) may extend from the Lots described in this Exhibit D into Lea Canal by no more than15 feet.

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Plat Map







Architectural Review Committee (ARC) Design Guidelines Construction Rules & Regulations Approved Builder Applications


Salters Haven at Lea Marina Architectural Review Committee (ARC) Design Guidelines Construction Rules & Regulations Approved Builder Applications

Effective ________________


These Standards and Procedures have been adopted by the ARC and approved by the Master Association Board of Directors as of May ___, 2020. All property revisions, additions, and or eliminations are subject to ARC submittal and approval. It is the responsibility of the owner to review the most current version of this document. Periodically the standards are updated. This printed version may not be the current. The Master Association community manager will always have the current version available upon request by owner. In the event of any inconsistencies the version held by the Master Association community manager shall prevail.

ARC Design Guidelines

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Table of Contents Article I…………………………………………………………………………………………4 Architectural Design Review 1.0Introduction to Architectural Review & the Architectural Review Committee..4 1.01 Pre-Application Procedures and Approved Builder’s Requirements................5 1.02 Design Review Procedure……………………………………………………..….5 1.03 Fee Schedule……………………………………………………………..………...8 1.04 Return of Construction Bond Procedure……………………………..…………9 Article II……………………………………………………………………………………...…10 2.0 Construction & Approved Builder Rules………………………...………………10 2.01 Violation Enforcement and Fines……………………………………………….11 Article III……………………………………………………………………………………..…12 3.01 Architectural Guidelines………………………………………………………...12 3.02 Landscape Guidelines……………………………………………………………13 3.03 Fence Guidelines…..………………………………………………………….….14 Article IV……………………………………………………………………………..…………16 4.01 Building Setbacks Min Sq. footage, Max Impervious……………………….....16 4.02 Easements…………………………………………………………………………17 Article V………………………………………………………………………………………...18 Subsequent Improvement to Approved Plans………………………………………18 5.0 Substantial Additional Landscaping……………………………….…………….18 5.1 Renovations and Additions…………………………………….………………....18 5.2 Application Process……………………………………………………………….18 Exhibit A: Approved Builder Agreement Exhibit B: Application for New Construction Exhibit C: Checklist for Approved Builder/Contractors Exhibit D: Site Plan Checklist Exhibit E: Landscape Plan Checklist Exhibit F: Pre-Construction Inspection Report Exhibit G: Post-Construction Inspection Report Exhibit H: Request for Final Inspection Exhibit I: Application for Improvements, Renovations, and Additions Exhibit J: Sample page of Insurance Certificate Holder

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Article 1. Architectural Design Review 1.0 Introduction to Architectural Review & the Architectural Review Committee Salters Haven consists of two neighborhoods with uniquely different themes and standards. Most common interest communities are built with a "theme" concept that ensures consistency of design and attractiveness which, if compromised, reduces the value of the homes and homesites. Well thought out and consistently enforced architectural requirements and rules help maintain uniformity, which in turn helps support the highest market values of the homes and homesites. The underlying theme at Salters Haven is its coastal leisure lifestyle with Intracoastal views and luxury amenities. Preserving the beauty and developing the community with an emphasis on value, quality, aesthetics and environment are the focus of the ARC. By accepting a deed or other instrument conveying any interest in any portion of Salters Haven, each Owner acknowledges that WLI Investments, LLC (the “Declarant”), as the developer of Salters Haven, has a substantial interest in ensuring that the improvements within Salters Haven enhance the Developer’s reputation as a community developer and do not impair the Declarant’s ability to market, sell or lease its property. Therefore, each Owner agrees that no structure or thing shall be placed, erected, installed, or maintained upon any homesite, home or Lot (referred to collectively as “Lot” in the Master Declaration of Covenants for Salters Haven and herein collectively referred to as “homesite”) and no improvements or other work (including staking, clearing, excavation and other site work, exterior alterations of existing improvements, or planting or removal of landscaping) shall take place on such Owner’s homesite except in compliance with the Covenants (as described below) and these Architectural Design Standards. The Declarant or its designee must give its written approval for such activity, which approval may be granted or withheld in the Declarant’s or its designee’s sole discretion. The Declarant has recorded the Master Declaration of Protective Covenants for Salters Haven (the “Covenants”), which is binding on all home and homesite owners in Salters Haven. The Declarant has also established the Salters Haven Master Association, Inc. (the “Master Association”) which is the primary entity responsible for enforcement of the Covenants. In the event of conflict between the Covenants and this document, the Covenants shall govern. In accordance with the Covenants, the Declarant has established the Architectural Review Committee (“ARC”), whose members are appointed by the Declarant until the last homesite is sold and at that time will revert to the Board of Directors of the Master Association. The Declarant has delegated to the ARC certain rights reserved under Article IV and Article X of the Covenants and the Declarant has also set forth the ARC’s jurisdiction, powers, obligations and the rules and regulations under which it will conduct its review of improvements. The intent of the Salters Haven Master Association ARC Procedure is to: • • •

Define how the ARC is created, empowered, and staffed; Define what the Architectural review procedures are and how they work; Define the specific project criteria and standards needed for design approval;

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• • •

Define specifications and specific design practices that will assist Owners when applying for approval of projects; Identify projects that require ARC review and approval; and Show Owners what is expected of them in the Architectural review process

The Design Guidelines may contain general provisions applicable to all of the Properties as well as specific provisions which vary from one portion of the Properties to another. The ARC shall adopt such Design Guidelines at its initial organizational meeting and thereafter shall have sole and full authority to amend them subject to the approval of the Board of Directors. The committee may authorize, in its discretion, reasonable variances or adjustments from compliance with any of its guidelines and procedures in order to alleviate practical difficulties and hardships in their enforcement and operation. 1.01 Approved Builder Requirements The Approved Builder shall comply with all Salters Haven covenants, Design Guidelines and amendments adopted by the Salters Haven Master Association and ARC. Approved Builder shall at all times maintain a NC General Contractors License and shall maintain a 1mm (umbrella) general liability insurance policy. Approved Builders in the Waters section must maintain an additional 1mm umbrella to take coverage of 1mm/2mm to 2mm/3mm in case of marina damage or tie-back damage with the certificate holder listed as “WLI Investments LLC, Salters Haven HOA Inc., Salters Haven Yacht Club Inc. 60 Gregory Rd NE St 1 Belville NC 28451.” Builders approved to build on homesites around the marina, amenities center, or on waterway lots may be required to hold additional coverages. Should Approved Builder violate any of the rules, regulations, covenants, or guidelines a fine will be assessed against the Approved Builder and deducted from the Approved Builders Construction Deposit in the amount in accordance with article 2.01. If fines accrued are not paid they will be taken out of the Approved Builder’s Deposit. If the fines accrued are more than the whole of the Approved Builder’s Deposit and are not paid, fines will be assessed against the owner of the homesite as an Individual Assessment and may prevent the owner of the property from use of common amenities, revocation of right to vote in the association, and additionally be pursued by the Declarant legally in accordance with the Salters Haven Covenants. 1.02 Design Review Procedure The following organizational chart demonstrates the process for the Architectural Review Process. This process should be followed by builders without exception:

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Email New Construction Application with all application documents to the ARC's current email address. Delivery or mail all due fees to 60 Gregory Road, Belville, NC 28451. Separate checks are required.

Applicant notified of ARC Action within 45 days of receipt of full submittal packet and all fees

Not Approved - builder recieved written notification

Approved - builder recieved written notification

Submit Revisions per ARC Requests

Begin Construction

Submit On-site Post-Construction Report and Final Inspection Request

Not Approved

Aproved

Not Approved

Make Chanes per ARC Request and resubmit.

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The New Construction application process begins with the submission of the New Construction Application and all required attachments including all fees, construction drawings, site plan, NC General Liability and Workers Comp Insurance with certificate holders as listed on Exhibit J sample page. All Guidelines and forms are available by request from the Salters Haven Homeowners Association office or community owner’s website at www.saltershavennnc.com In order to achieve a diverse array of home offerings, flexibility will be given to encourage different styles as appropriated by community sections. These different styles should be considered in the future when changes are requested for existing homes. Because of these different styles, there will be changes requested that are appropriate in one section that may not be appropriate in another section. Plans must be reviewed and approved in writing by the Architectural Review Committee (“ARC”) prior to the commencement of any work on the homesite. There are two standards for new construction. The first is primarily for custom homes built in the Waters section. This section is where the homes are built by Preferred Builders. Custom home plans cannot be replicated without the consent of the builder or architect. Custom home plans cannot be replicated within Salters Haven unless waived in writing by the Declarant. Once this home and its elevations are approved on a specific homesite, it cannot be approved on any homesite that is within five or more homesites of the existing home if the same elevation is being utilized unless otherwise approved by the Declarant. The second standard is for the Seaside section. This is in an area where the homes are built by one of three Featured Builders. The Seaside section may not be held to the same requirements as the Waters Section. Home plans may be replicated in the Seaside section at the discretion of the Declarant. Construction shall comply with the ARC’s Design Standards and with the current Salters Haven Covenants. The Association Manager or website can provide copies of the current Covenants, which contain conditions and restrictions for construction and other requirements. Please take into consideration all the requirements before proceeding with your plans and submitting them to the ARC. Per the Covenants, the ARC has forty-five (45) days from submission to respond to the request. Applications will not be considered submitted until the Association receives all applicable fees, deposits, and forms. Once plans have been approved, inspections may be made to insure compliance. Additionally, penalties may be assessed or other action taken if construction is commenced without ARC approval or if construction is not in compliance with the ARC approved plans. Any proposed changes before, during or after construction, to the approved structure or homesite must be submitted to the ARC for approval in writing prior to execution of said changes. The ARC will review the plans and the applicant will be notified in writing by the ARC coordinator with either: ARC Design Guidelines

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1. An approval letter; 2. A conditional approval letter indicating items that require modification before approval will be granted; or 3. A letter stating significant changes are required and that the plans are not approved as submitted. Site Work and construction may begin only after receipt of ARC written approval. When construction is complete, all landscaping is installed, and cleanup is completed, applicant should submit the on-site Post-Construction report (attached as Exhibit G) and request a final inspection of the property using the proper form attached as Exhibit H. The ARC coordinator, will inspect the site and either, give approval, or inform the applicant of required changes. If fines and penalties have not been issued, the full amount of the construction bond deposit will be returned once Final Approval is given. Final Approval will not be granted until all fines are paid and deficiencies are rectified. Inspections will be made of all curbs, sidewalks, pavements, amenities, marina bulkheads, walkways, utilities, drainage and any other common area or property under the control of the Master Association, the Salters Haven Yacht Club Association, or WLI Investments, LLC around each home site to check for damage to any infrastructure pre- and post- construction. 1.03 Fee Schedule The following fees are required for Architectural Review submittal. Applications will not be considered complete or submitted until the ARC coordinator receives payment in the amount of the applicable fees and deposits. Due at the time of ARC application submittal : 1. Capital Repair Reserve - $1000 – payable to Salters Haven HOA, Inc. 2. Plan Review Fee - $300 – payable to Salters Haven HOA, Inc. 3. $5,000 Master Bond ILO $2,500 individual bonds for Approved Builders – to be released upon approval of Final Inspection on last home built by Approved Builder – payable to Salters Haven HOA, Inc. 4. 5% Marketing Fee – payable to DRC Any site work or construction that starts prior to receipt of the above fees will be considered a violation of the Guidelines. Maintenance for the private roads located in Salters Haven is the responsibility of the Master Association. Since many of these roadways may be complete during an Owner’s construction, additional construction traffic and usage will accelerate the deterioration and wear on the roads. The Capital Repair Reserve fee will go the Reserve Account to provide additional ARC Design Guidelines

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capital for such maintenance and repair, or any other major repair needs deemed appropriate and necessary by the Declarant or the Board of Directors. 1.04 Return of Construction Bond Procedure The design review process, which is primarily concerned with the home’s elevations, the site plan’s structures, Utilities, and Common Amenities, their location, and the landscape design aid in creating a beautiful, compatible community, while protecting residents from non-standard individual prerogatives. Deviation from the approved plans or ARC Guidelines defeats the purpose of the review process. During construction, the ARC has the right to monitor the site to determine if there is any deviation from the approved plans. Any substantial deviation may require the ARC to take action to correct the situation, including referral to the Board of Directors of the Master Association, which has the authority to require the homeowner to comply with the approved plans at the homeowner’s expense. Article II 2.0 Construction & Approved Builder Rules 1. All Owners and Approved Builders/contractors will be responsible for their subcontractors. 2. Construction sites are to be kept neat and clean at all times. 3. Whenever possible, to allow traffic to move easily through the development streets, all construction workers are to park on one side of the street. Do not block driveways. 4. Running water and electricity must be provided on the construction lot and be provided by the Approved Builder. Arrangements must be made with the utility companies for services prior to construction. Approved Builders found using adjacent property owner utilities may be subject to fines 5. Portable toilets are to be located on the building site at a minimum of 15’ from street or sidewalk. The door should face away from the street towards the home. Portable toilets cannot be located on any adjacent property. Approved Builders may share portable toilets if toilets and distance comply with state regulations. 6. Streets in front of and adjacent to a job site must be kept clean daily. This requires that rock, dirt, or mud anywhere in Salters Haven generated by your construction, be removed daily. Do not wash dirt or cement down the street drains. If this is done the cost of cleaning out the drain will be borne by the Approved Builder or homesite owner. 7. Roaming pets, drugs, alcohol or loud radios are not permitted on the job site. Violators will be required to leave. Children under the age of 15 are not allowed on the jobsite during construction hours.

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8. All silt fence and dumpsters will be maintained each day. 9. Work hours in Salters Haven are from 7 AM to 7 PM daily. Work on Saturday should not begin until 8 AM and there is no work permitted on Sundays, New Year’s, Memorial Day, Independence Day, Labor Day, Thanksgiving or Christmas, except if the ARC or the Master Association’s Board of Directors grants special permission in writing. This will only be granted upon special circumstances. 10. Any damage to streets, curbs, drainage inlets, street lights, street markers, mailboxes, walls, fences, marina, private landscaping, common area, Salters Haven Master Association landscaping, etc. will be repaired by the Salters Haven Master Association and such costs will be billed to the responsible owner in addition to the fine. This amount will be deducted from the construction deposit. If not sufficient, the additional amount will be charged to the property owner. 11. If any telephone, cable TV, electrical, water, or other utility lines are cut, it is the responsible party’s obligation to report such an accident within thirty (30) minutes to the HOA. 12. No contractor or subcontractor access to the Clubhouse, bathhouse, pool, or marina is permitted. 13. An ARC-approved Builders sign with the lot number, company name, and phone number, including an emergency phone number, must be located in front of the home site during construction. Business signs or other forms of advertisement are not permitted unless approved by the ARC. All Building Permits are to be attached to a post in a manner protected from the elements. Trees are to be kept free of all permits and signage. 2.01 Violation Enforcement and Fines The ARC shall have authority to establish fines for violations of the Design Guidelines, including fines for continuing violations and the fine amounts may be deducted from any bond posted. If the fines are not paid, the Association may establish an Individual Assessment in accordance with the provisions of Article IX & X of the covenants. The following fines per incident may be imposed by the ARC. The ARC reserves the right to impose additional fines other than those listed below: Parking on adjacent property without permission Littered construction site Overflowing trash container Erosion in street, common area, or marina Unauthorized changes to approved plans or site plan (may be required to correct the plans to reflect what was approved by the ARC at Owner’s cost) Silt Fence down ARC Design Guidelines

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$100 $100 $100 $100 $500

$100


Not providing portable toilet Construction materials/equipment on adjacent site without permission Damage to common area Damage to street/curb Damage to adjacent property Construction or site work prior to written ARC Final Approval Working on Sundays, holidays, after hours Burning Dumping of refuse materials, or discharge of hazardous or toxic materials Unapproved signage

$100 $100 $200 plus cost to repair $200 plus cost to repair $100 plus cost to repair $1000 $100 $100 $100 $100 per day of violation

Article III 3.01 Architectural Guidelines The Salters Haven Covenants and all amendments thereto are binding on all Owners in Salters Haven. The following guidelines are provided as general information. Certain sections may have their own unique design guidelines. The ARC will consider location, visibility, and topography of the lot among other considerations when approving or denying individual requests. More detailed information and restrictions may be contained in the Covenants. The ARC will not review or approve grading. Builders and Owners shall be solely responsible for ensuring proper grading of the Lots. The overall design and architecture of a building and any changes or modifications to existing buildings are subject to approval by the ARC. •

All buildings must comply with the requirements of the Covenants.

Designs shall be compatible with existing neighborhood standards

All dwellings constructed on any portion of Salters Haven shall be designed by and built in accordance with the plans and specifications of a licensed architect or a professional member of American Institute of Building Design (“AIBD”) unless Declarant or its designee otherwise approves in its sole discretion.

The exterior siding shall be predominantly brick, stone, wood, stucco or fiber cement siding. Vinyl boxing (fascia, soffit, and frieze) gables may be approved in the Seaside section. Accents in other material are subject to approval by ARC.

Roofing materials shall be of a minimum of 25-30 year Architectural roof shingles, fire

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retardant cedar shake or metal. •

All exterior color selections are subject to approval by ARC. Color selections must be compatible with existing neighboring homes.

Front loading garage doors must have window details. Exceptions may be granted on a case by case basis.

Patios and screened porches should be consistent with the architectural character and details of the home. Patio surfacing materials should be concrete, stone or pavers.

Reflective or mirrored glass in exterior windows is prohibited.

Docks, piers, gazebos or any other accessory structures are not permitted without written permission from the ARC and Declarant. Any necessary permits will be the responsibility of the owner. Compliance is required with all local, state, and federal regulations.

Swimming pools and hot tubs shall be shown on site plan. Pools and hot tubs may not be installed in the front of the home and are encouraged to be in the back yards only. However, side yard pools may be allowed with proper screening subject to ARB approval. Above ground swimming pools are prohibited.

Fences, outdoor kitchens, fire pits, or any other outdoor amenities or accessory structures must be shown on the site plan and are subject to ARC approval.

Sheds must be shown on the site plan and have significant details matching house. Sheds are subject to ARC approval.

HVAC units, trash cans, pool equipment, generators, utilities, and other mechanical equipment should be screened with brick, heavy planting or with an architectural element that goes with the house and is shown on the site plan.

Foundations shall have a minimum of three courses except for tropics/Floridian style plans. In the event this provision creates a handicap accessibility hardship the Declarant may, in its sole discretion, authorize a foundation to be constructed with two instead of three courses. Such authorization must be in writing and obtained prior to construction.

The Waters: o The only acceptable exterior siding materials in the Waters section are wood or Hardie board; the Waters section does not allow vinyl, brick, or stone siding in any form. Exceptions may be made on a case by case basis for foundations. The predominate theme of the Waters section is coastal. Elevations should reflect this. o The location, design, and dimensions of all houses, porches, and accessory structures in the Waters section should be designed for reasonably minimal obstruction of

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adjacent property owners’ waterway and marina views. o A landscape plan is required in the Waters section. o A minimum of 3 – 10’ or taller native tree and 1-2” caliper flowering tree is required in each lawn in the Waters 3.02 Landscape Guidelines Landscaping promotes a high-quality community and enhances property values for the entire community. Imaginative landscape design provides color and texture while enhancing the architectural character of the home. Property owners are encouraged to consult with a landscape architect or designer to assist them in the preparation of a landscape plan. Submit landscape plan with the following information: •

Outline of all structures and site elements i.e. house, driveway, walkways, patios, construction buffers, easements etc.

Outline of proposed tree and shrub locations, lawn areas, ground cover, and seasonal color areas with quantities, shrub container size, tree caliper and height, ground cover container size, spacing, and the sod type indicated.

Outline of mulched areas and any hard landscape elements (arbors, trellises, fences, patios, walls, stepping stones etc.).

Limited removal of trees and vegetation is the policy of Salters Haven. Approval is required to remove any tree.

Native plants are recommended along with tropical plants acclimated to the NC Southeastern coast.

Front, side, and rear lawn must be sodded, not seeded. In some instances sod may be required to be carried to the edge of street curbs or the edge of pond banks and common areas.

Planting beds must be mulched with pine straw or hardwood mulch to control weeds and conserve water. Natural colored rocks may also be used subject to ARC approval.

Screening of HVAC units, trash cans, grinder pumps, above ground transformers, junction boxes, etc. is required. When screening transformers and junction boxes follow utility setback requirements, typically located on a sticker on the box.

Location of liquid propane tanks or other fuel storage container. Tanks must be buried.

Location of any proposed landscape lighting indicating fixture type.

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An automatic timed irrigation system is required for irrigation purposes and shall be mounted outside the home.

Foundation plantings shall encompass entire foundation of the home and be of sufficient size and height to screen any foundation or crawl space under the house and decks.

No privacy hedges or similar planting may be planted without ARC approval.

Owners must irrigate the back of the curb on any adjoining streets.

Flower and plant beds must be uniformly covered with pine straw or mulch. Stone is allowed subject to ARC approval.

Evergreen plants are required for foundations.

Landscaping must be installed prior to occupancy

3.03 Fences Salters Haven is a community with ponds, conservations areas, waterway buffers, and marina views. Maintaining open views of these areas is a priority. Therefore, fencing is only permitted in limited areas of Salters Haven. Privacy fencing and fencing used for screening, if permitted, will be allowed only on the rear lot line of perimeter lots in the community. Homes which buffer the marina and waterway will not be allowed fencing which blocks the view of an adjacent neighbor or viewpoint from any common area to the marina, clubhouse, or waterway views. Setbacks may apply to fencing. In instances where fencing is county or building code required such as a pool, the ARC will approve on a case-by-case basis as deemed appropriate by the ARC. •

Fences must maintain a reasonable scale to the house and be compatible with the architectural style.

Fences must be placed on the property line or when adjoining a state-regulated buffer area 1” inside the buffer area. Fences must tie into one another so that no two fences run along any property line side by side thus creating a space that is not accessible to maintain. If home site is adjacent to a berm, the fence must stay off of the berm, but the owner shall still remain responsible to maintain the berm if it lies within their property.

Fencing should be compatible with neighboring fencing in style, color and material.

Salters Haven will limit the styles of fencing allowed. Those currently allowed, at the discretion of the ARC, are black 5’ aluminum. A 6’ privacy fence (board on board) will be allowed on the rear of perimeter lots only.

Developer-installed fences abutting owner’s property must be maintained by the Owner.

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The use of brick pillars is recommended.

If fencing encroaches on utility or maintenance easements it will be the homeowner’s responsibility to replace the fencing if it must be removed to access the easement.

Invisible pet containment fencing is permitted without approval

Article IV 4.01 Building Setbacks, Min. SF, Max Impervious The ARC would like to see the following setbacks maintained: Front – 20’ Side – 5’ Rear – 20’ Marina Rear – 40’ Max Height – 35’ Setbacks should be maintained from the property line, not edge of curb. No structure or accessory structure including but not limited to: HVAC, shed, pool, equipment screening, patio, outdoor amenities, stairs or any other structural member should encroach these setbacks, unless otherwise approved by the ARC. Driveways may encroach the side setback up to 3’ from the property line. The minimum heated square footage requirement in Salters Haven is 1600 sq. ft. for one story with a minimum of 120 sq. ft. front porch space; and, 2000 sq. ft. for two story with a minimum of 48 sq. ft. of front porch space. In accordance with Stormwater permit number SW8 190103 the allowable impervious surface area is as follows: Lot Number Lots 1-37, 75-119 Lots 38-54 Lots 55-65, 68-74 Lots 66-67

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Built Upon Area 6500 sf 4200 sf 4500 sf 5000 sf

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The AEC Allocation of Impervious Cover in the 75’ Coastal Shoreline AEC (to the extent of the ORW AEC) is as follows: Lot #

18 19 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74

575° AEC Restricted Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

75° AEC Restricted

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

30% of AEC Impervious Limit (built between 30’ and 75’ AEC setbacks)

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

1,632 1,620 1,620 1,620 3,064 1,733 1,733 1,733 1,733 1,456 568 1,575 2,861 1,853 1,688 1,688 1,688 1,687 1,189 468

4.02 Variance

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30% CAMA AEC Buffer (SF) (No disturbance within buffer area)

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A variance to the setback guidelines may be considered or required by the ARC, in its sole discretion, pending evaluation of the Unit and site plan. The ARC, in its sole discretion may approve or deny the location of any setback with regard to aesthetic considerations, size, shape and location of the Unit.

The finished outside wall perimeter, including any cantilevers, must fall within the setback requirements, which may be subject to error, omissions, variance, or change without notice.

The ARC may grant variances from the Design Standards when topography, natural obstructions, hardship, or aesthetic and environmental considerations require additional evaluation. Such variances may be granted when unique circumstances dictate.

Variances shall only be effective when in writing.

Variances shall not be contrary to the Master Declaration.

The ARC has the authority to grant a variance in other circumstances. There shall be reasonable assurance in a variance request that the overall intent of the Design Standards will be accomplished by the Owner’s design as proposed.

During the Declarant Control Period as defined in the Declaration, no variance shall be valid unless approved in writing by the Declarant.

4.03 Easements Please see Article XII of the Covenants for information concerning easements.

Article V Subsequent Improvements to Approved Plans 5.0 Substantial Additional Landscaping Only landscaping improvements that significantly impact the appearance and theme of the yard need to be submitted or landscaping improvements that impact the adjoining neighbor’s property (e.g. a berm that separates two rear yards). All plantings on the berms are required to maintain the same plant types so as to maintain consistency. 5.01 Renovations and Additions

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Any exterior renovation, which will change the appearance of the house, must be submitted to the ARC for approval with the Application for Improvements, Renovations, and Additions provided in Exhibit I. The ARC and Salters Haven Master Association is not responsible for any applicable Pender County permits required for said improvements. It is the property owner’s responsibility to determine whether their contractor has obtained the proper permits. The design standards outlined in this document are applicable to all improvements, renovations, eliminations & additions. Any exterior painting regardless of dollar cost of labor and materials must be submitted to the ARC for review and evaluation before any new paint is applied to the house or accessory structure. 5.02 Application Process All minor and major improvements should be submitted to the ARC using the form provided in Exhibit I and include any necessary attachments. Additions to the home shall require plans prepared by a design professional, color samples, and a similar application process as used for new construction. Additions shall be defined as any improvement that enlarges the heated or unheated square footage of the home. Please submit plans along with Exhibit I. A Final Inspection by the ARC is required. No review fee will be required with an application unless otherwise adopted by the ARC at the time of submittal. The ARC may waive any review fees it sees fit.

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Exhibit A Approved Builder Agreement

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Salters Haven Application for New Construction- Exhibit B Basics & Owner Information: Date: ________________ Section (Waters, Seaside)/Lot #:____________________________ Lot Address: ______________________________________________________________ Owner Name: __________________________ Builder: ____________________________ Owner Address: _______________________________________________________________ Owner Phone #: _________________________ Owner Email: _______________________ Builder Phone #: _________________ Design Details: Plan Name: ___________________

Builder Email: _____________________________ Elevation: __________________________

Exterior Color Selections: (Material, Manufacturer, & Color) Foundation: Raised Slab, Piling, Crawlspace: ________________________________________ Siding: _______________________________________________________________________ Gables & Dormers: ________________________________________________ Shingles: ___________________________ Windows: __________________________ Window/Door Trim: ______________________ HVAC screen/platform: ________________ Driveway: ______________________________ Accents/Borders/Dividers: ______________ Front Door: ___________________________________________________________________ Garage Door: __________________________________________________________________ Porches/Open Decking (Waters section only): _____________________ Steps: ______________________________ Exterior Handrails: ________________________ Chimney: ___________________________ Shutters: ____________________________ Outdoor Amenities (Outdoor shower, Fireplaces, fire pits patios, outdoor kitchens, fence, pools, etc): _________________________________________________________________________ Impervious & Special Site Conditions: Impervious Allowance on Lot: __________ Coverage as Submitted: _____________ Impervious Allowance in AEC: _________ Coverage as Submitted in AEC: _________ Heated SF: ___________ Total House Covered SF: ___________ Flood Zone: _______ Open Decking: Sq Ft. Encroaching CAMA Buffer: _______________ Fee Schedule: • Capital Repair Reserve - $1000 – payable to Salters Haven HOA, Inc. • Plan Review Fee - $300 – payable to Salters Haven HOA, Inc. $5,000 Master Bond ILO $2,500 individual bonds for Approved Builders – to be released upon approval of Final Inspection on last home built by Approved Builder – payable to Salters Haven HOA, Inc. ARC Design Guidelines

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• •

5% Marketing Fee – payable to DRC New construction submittal will not be reviewed until all fees are paid in full.

 Approved Builder Agreement on File (to be checked by ARC admin)  All fees have been paid & check numbers on file (to be checked by ARC admin) ** Please submit the following with this application** ___ Fees required at submittal ___ Full set of construction drawings ___ Site plan ___ NC General Contractor’s License (at initial submittal only) ___ Proof of General Liability & Workers Comp (in Waters section only with certificate holder as shown on Exhibit J ___ Exhibit C ___ Exhibit D ___ Exhibit E

I have read the Salters Haven Covenants, ARC Design Guidelines, and Construction Rules and Regulations and agree to abide by them. I take responsibility for adhering to all local, state, and federal regulations including those set out by FEMA, CAMA, NCDEQ, and the NCDOI. I understand that I am responsible for pulling any and all applicable permits necessary for proposed construction.

_______________________________ Lot Owner Signature

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________________ Date


Checklist for Approved Builders/Contractors – Exhibit C Address: ________________________________________________________ Lot #: _________________________ All Contractors and/or Approved Builders working in Salters Haven are responsible for certain actions and precautions of both their workers and any sub-contractors working under their supervision. The items listed below must be adhered to or permission to work in Salters Haven will be rescinded. In addition, fines may be imposed against the lot owner if contractors on their property fail to follow these rules and regulations. Finally, if a Contractor damages or causes harm to Salters Haven property or Salters Haven Yacht Club and Marina, the contractor will be liable for repairing the damage or paying for repair of the damage. All unoccupied homesites should have a method of preventing silt from washing off the homesite. During construction, silt barriers must be in place to prevent runoff from reaching drains or waterways. These barriers must be in place during non-working hours. Construction workers should NOT park on adjacent homesites (except if owned by the Approved Builder or same lot owner) and should be careful not to destroy or damage the silt barriers on adjacent homesites. If such damage should occur, the silt barrier should be re-installed before the end of the workday. Workers should coordinate parking on one side of the street to allow passage of vehicles. Do not block the mailboxes. Failure to maintain a Silt Barrier is cause for a fine by Salters Haven. Such barriers must be in place at the end of the workday in case of rainstorms overnight or on weekends. Approved Builders are also responsible for any sediment and concrete wash cleanup costs on the streets or in the street storm drain pipes. Construction activity on any homesite requires protection of street drains in both directions. Trash and Construction Debris bins are used to contain debris and prevent material from being blown out of the bin and finding its way onto adjoining property, conservation areas, or in the waterways. Such bins should be located at least 10 feet from the road. Workers should be cautioned to keep paper and plastic trash from blowing away from the job site. Loose paper or plastic trash on the job site is cause for a fine. Portable Toilets must be located at least 15’ from the road. Doors on these units should face the house Work hours for outside and inside noisy work are Monday-Friday 7 AM - 7 PM and Saturday 8 AM - 7 PM. No work is permitted on Sundays and the following holidays: New Years Day, Memorial Day, Independence Day, Thanksgiving or Christmas. except if the ARC or the Master Association Board of Directors grants special permission in writing. This will only be granted upon special circumstances. ARC Design Guidelines

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I have read the checklist, placed by initials on each one, and agree to abide by these rules and regulations. ____________________________________________ (Signature of Builder)

______________ (Date)

Builder Information: (Please print) Name: ___________________________________ Email Address: _______________________ Phone Number: _________________________ Alt. Phone #:_________________________ NC Contractor License #: _________________ Limit Classification: ___________________ General Liability & Workers Comp Coverage Limits: __________________________________ Site Supervisor: Name: ____________________________________________ Email: ____________________________________________ Phone #: _____________________________ Alt. Phone #: ________________________

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Site Plan Checklist – Exhibit D Phase ______ Section _______ Lot _______

Existing Conditions Roads/Streets/Lanes Building (Adjacent Lots) Other Structures

_____ _____ _____

Property Data Boundaries/Descriptions Right of Ways (Type/Width) Easements (Type/Width) Wetland Limits (Description) Setback Lines (Description)

_____ _____ _____ _____ _____

Dimensions/Elevations Building Location (Dist to Prop. Lines ALL sides)

_____ _____

Proposed Construction Building Footprint Porches (Type.Size) Patios (Type/Size)

_____ _____ _____

Date: ________________________

Trees located within ten feet (10’) of building pad are approved for removal. Any additional trees will need prior written approval for removal.

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Landscape Plan Checklist – Exhibit E This form need only be completed once for master approval in the Seaside Section. Lot #_____

Date: _____________________

Builder: ____________________________________ Print Name Basic Plan Requirements Roads/Streets/Lanes Utilities/Grinder Pump Tree/Bush Areas (Existing) Streams/Ditches/Swales Pipes/Inlets/Culverts Other Structures Wetland Limits

_____ _____ _____ _____ _____ _____ _____

Proposed Construction Building Footprint Detached Structures Walls/Fences/Screens Pools/Spas HVAC Condenser Location Porches, Decks, Patios, Steps Driveway/Sidewalks

_____ _____ _____ _____ _____ _____ _____

Proposed Landscape Work Utility Box Screening** HVAC Screening** Foundation Wall Plantings

_____ _____ _____

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__________________ Phone #

Sod Type Bedding Material Type Proposed Drainage Plan*

_____ _____ _____

Standard Drawing Details Owners Name & Address Section & Lot Dates/Revisions Plan Scale Legend

_____ _____ _____ _____ _____

Notes Preferred Scale 1”=10’ *Swale/Drainage plan must conform to original contour prior to construction and/or the required depth to provide positive drainage. **Plants must be sufficient height and size at installation to provide adequate screening.

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Pre-Construction Inspection Report – Exhibit F Lot _______

Date: ___________________________

Inspected By: _________________________ (Print Name)

_________________________ (Phone Number)

1. Is there any existing construction debris or evidence of prior damage to the other lots within the construction area? ____ No

_____ Yes

2. Is there any existing pavement, curbing, or sidewalk damage within construction area? ____ No

_____ Yes

3. Are the swales well established and do they adhere to the storm water plans? ____ No

_____ Yes

4. Are the nearby storm drains free from sediment or debris? ____ No

_____ Yes

5. Does the site run-off impact any adjacent lots? ____ No

_____ Yes

6. Is there sufficient space for all construction activity on the home site? ____ No

_____ Yes

7. Are the meter box/yolk and irrigation stub out installed and in good condition? ____ No

_____ Yes

8. Is the sewer tap installed and in good condition? ____ No

_____ Yes

Please provide pictures of any site damage or possible issues.


Post-Construction Inspection Report – Exhibit G Phase _____ Section ______ Lot _______ Inspected By: _________________________ (Print Name)

Date: ___________________________ _________________________ (Phone Number)

1. Is there any construction debris or damage to the other lots within the construction area? ____ No

_____ Yes

2. Is there any pavement, curbing, or sidewalk damage within construction area? ____ No

_____ Yes

3. Are the swales well established with seed/sod within the construction area? ____ No

_____ Yes

4. Are the nearby storm drains free from sediment or debris? ____ No

_____ Yes

5. Does the lot have positive drainage? ____ No

_____ Yes

6. Does the site run-off impact any adjacent lots? ____ No

_____ Yes

7. Are the meter box, irrigation valve, and sewer clean out on grade and in good condition? ____ No

_____ Yes

8. Has final construction been completed in compliance with the site plan, landscape plan, and other approved ARC documents? ____ No

_____ Yes

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Salters Haven Final Inspection Request – Exhibit H Lot ______ Address: ___________________________________________ Builder: ___________________________________________ I/We __________________________________________ the Builder of the above property, submit this request for the Final Inspection for Release of the Construction Bond. The following requirements of the Salters Haven ARC guidelines have been submitted and approved and the construction work has been completed. Changes During Construction Building Plan Changes Site Plan Changes Landscape Plan Changes Construction Items Swales/Drainage per Plan Landscaping Complete per plan Site Cleanup Complete Restoration of any construction Damage to common areas or Adjacent property Removal of Builder Sign

Y___ N___ Y___ N___ Y___ N___

Date Approved: _____________ Date Approved: _____________ Date Approved: _____________

Y___ N___ Y___ N___ Y___ N___

Y___ N___ Y___ N___

Approved Builder/Owner __________________________________ (Signature) Phone #_______________________________

** Please submit a copy of the Certificate of Occupancy with this form

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Date _____________


(For ARC Use Only)

Salters Haven Master Association, Inc. Architectural Review Committee DESIGN REVIEW FORM – Exhibit I APPROVALS ARE GRANTED PURSUANT TO APPLICABLE COVENANTS, CONDITIONS AND RESTRICTIONS (CC&R’s) AS WELL AS THE PERTINENT ARCHITECTURAL DESIGN STANDARDS FOR EACH NEIGHBORHOOD. It is the responsibility of the lot owner to ensure that their project is compliant with all CC&R’s and the Architectural Design Standards applicable to their Neighborhood. Submission of this request is to be made via Salters Haven managing agent. This request may be delivered or mailed to: Salters Haven Master Assoc., Inc. 60 Gregory Road, Ste 1 Belville, NC 28451, faxed to Salters Haven at: (910) 332-3523; or emailed to saltershavenhoa@saltershavennc.com. The Architectural Review Committees response will be e-mailed immediately following the decision, which will be made within 45 days of submission. BEGINNING ANY WORK PRIOR TO ARC APPROVAL MAY SUBJECT THE APPLICANT TO CORRECTIVE MEASURES.

NEIGHBORHOOD: _________________________________________

Lot #:______________________

Property Address: ______________________________________________________________________ Owner Name: (Print) _______________________________________

Date Submitted: _____________

Owner Signature: _____________________________________________ Phone: ___________________________ (w) _______________________ (c) ________________________ Email: _____________________________________________________ FAX: _______________________ Applications for modifications must be accompanied by a copy of the surveyor’s plot plan of your homesite, with the placement of the modification accurately drawn and dimensioned, indicating measurements from existing structures and property lines. Additional drawings or information may be requested by the ARC for adequate design review.

ATTACHMENTS: Surveyor’s Plot plan: ______ Pictures: ______ Specifications: _____ Drawings: ______ Project Descriptions: _____________________________________________________________________________________________ _____________________________________________________________________________________________ ___________________________________________________________________________ Height: ________________ Width: __________________ Depth: __________ Composition: __________ Material/Plant Description (Mfg, Material, Color, Species): _____________________________________________________________________________________________ ________________________________________________________________________________ CONTRACTOR: __________________________________________________________________________________ Address: ________________________________________ Phone: ________________________________________ Email: __________________________________________ FAX: ___________________________________________ =========================================================================================== (FOR ARC COMMITTEE USE ONLY) Date Received: _________________________ Approved: __________________

Final Decision Date: ___________________________

More Info Needed: ___________________ Denied: __________________

ARC Comments: ______________________________________________________________________________________________ _____________________________________________________________________________________________________________ ARCHITECTURAL REVIEW COMMITTEE SIGNATURE: ______________________________________________________________

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EXHIBIT J Sample Page of Insurance Certificate Holder

ARC Design Guidelines

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READ THIS PROPERTY REPORT BEFORE SIGNING ANYTHING This Report is prepared and issued by the Developer of this subdivision. It is not prepared or issued by the Federal Government. Federal Law requires that you receive this Report prior to your signing a contract or agreement to buy or lease a lot in this subdivision. However, NO FEDERAL AGENCY HAS JUDGED THE MERITS OR VALUE, IF ANY, OF THIS PROPERTY. If you received this Report prior to signing a contract or agreement, you may cancel your contract or agreement by giving notice to the seller any time before midnight of the seventh day following the signing of the contract or agreement. If you did not receive this Report before you signed a contract or agreement, you may cancel the contract or agreement any time within two years from the date of signing. NAME OF SUBDIVISION: Salters Haven at Lea Marina NAME OF DEVELOPER: WLI Investments, LLC DATE OF THIS REPORT: January 6, 2020


TABLE OF CONTENTS RISKS OF BUYING LAND .......................................................................................................... 4 GENERAL INFORMATION ......................................................................................................... 5 TITLE TO THE PROPERTY AND LAND USE........................................................................... 6 General Instructions .................................................................................................................... 6 Method Of Sale ........................................................................................................................... 6 Recording The Contract And Deed............................................................................................. 8 Payments ..................................................................................................................................... 9 Restrictions On The Use Of Your Lot ........................................................................................ 9 Plats, Zoning, Surveying, Permits And Environment ............................................................... 12 ROADS ......................................................................................................................................... 15 Access To The Subdivision ...................................................................................................... 15 Access Within The Subdivision ................................................................................................ 15 UTILITIES .................................................................................................................................... 17 Water ......................................................................................................................................... 17 Sewer......................................................................................................................................... 17 Electricity .................................................................................................................................. 19 Telephone/Tv/Internet............................................................................................................... 19 Fuel Or Other Energy Source ................................................................................................... 20 FINANCIAL INFORMATION .................................................................................................... 21 LOCAL SERVICES ..................................................................................................................... 22 Fire Protection........................................................................................................................... 22 Police Protection ....................................................................................................................... 22 Schools ...................................................................................................................................... 22 Hospital ..................................................................................................................................... 22 Physicians And Dentists ........................................................................................................... 22 Shopping Facilities.................................................................................................................... 22 Mail Service .............................................................................................................................. 23 Public Transportation ................................................................................................................ 23 RECREATIONAL FACILITIES.................................................................................................. 24 Constructing The Proposed Facilities ....................................................................................... 25 Maintaining The Facilities ........................................................................................................ 25 Transfer Of The Facilities ......................................................................................................... 25 Salters Haven at Lea Marina ISLRP: 40043

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Permits ...................................................................................................................................... 25 Who May Use The Facilities .................................................................................................... 25 SUBDIVISION CHARACTERISTICS AND CLIMATE ........................................................... 26 General Topography ................................................................................................................. 27 Water Coverage ........................................................................................................................ 27 Drainage And Fill ..................................................................................................................... 27 Flood Plain ................................................................................................................................ 27 Flooding And Soil Erosion ....................................................................................................... 28 Nuisances .................................................................................................................................. 28 Hazards ..................................................................................................................................... 28 Climate ...................................................................................................................................... 29 Occupancy................................................................................................................................. 29 ADDITIONAL INFORMATION ................................................................................................. 30 Property Owners’ Association .................................................................................................. 30 Taxes ......................................................................................................................................... 33 Violations And Litigations ........................................................................................................ 33 Resale Or Exchange Program ................................................................................................... 33 Equal Opportunity In Lot Sales ................................................................................................ 33 Listing Of Lots .......................................................................................................................... 34 COST SHEET ............................................................................................................................... 35 RECEIPT, AGENT CERTIFICATION AND CANCELLATION PAGE................................... 35

In this Property Report, the words “you” and “your” refer to the buyer. The words “we,” “us” and “our” refer to the developer.

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RISKS OF BUYING LAND The future value of any land is uncertain and dependent upon many factors. DO NOT expect all land to increase in value. Any value which your lot may have will be affected if the roads, utilities and all proposed improvements are not completed. Resale of your lot may be difficult or impossible, since you may face the competition of our own sales program and local real estate brokers may not be interested in listing your lot. Any subdivision will have an impact on the surrounding environment. Whether or not the impact is adverse and the degree of impact, will depend on the location, size, planning and extent of development. Subdivisions which adversely affect the environment may cause governmental agencies to impose restrictions on the use of the land. Changes in plant and animal life, air and water quality and noise levels may affect your use and enjoyment of your lot and your ability to sell it. In the purchase of real estate, many technical requirements must be met to assure that you receive proper title. Since this purchase involves a major expenditure of money, it is recommended that you seek professional advice before you obligate yourself.

WARNINGS

THROUGHOUT THIS PROPERTY REPORT THERE ARE SPECIFIC WARNINGS CONCERNING THE DEVELOPER, THE SUBDIVISION OR INDIVIDUAL LOTS. BE SURE TO READ ALL WARNINGS CAREFULLY BEFORE SINGING ANY CONTRACT OR AGREEMENT.

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GENERAL INFORMATION This Report covers 308 lots (“Lots”) located in Hampstead, Pender County, North Carolina within the subdivision known as Salters Haven at Lea Marina (“Salters Haven “ or the “Subdivision”). The Subdivision is located at 25 Factory Road, Hampstead, North Carolina in Pender County. See page 34 for a listing of these Lots. It is estimated that this Subdivision will contain approximately 308 residential Lots discussed herein to be developed in two phases. Phase 1 consists of 119 Lots and Phase 2 will contain a total of 189 Lots. The Lots are being developed for residential purposes only. The centerpiece of the Subdivision will be the Salters Haven Marina. Currently the 308 Lots are all that are committed to the Subdivision by the Developer. Notwithstanding the foregoing number of Lots, the developer of the Subdivision has the ability, but not the obligation, to add additional property to the Subdivision in the future. If such additional property is added to the Subdivision, this Property Report will be amended to include such additional property. The Developer is currently offering the Lots in Phase 1 only. As the development of the Subdivision evolves, Phase 2 Lots will then be offered for sale. The Developer anticipates closing on its purchase of the land comprising Phase 2 in early 2020. As Lots are sold, they will no longer be available. Please check with the Sales Office for Salters Haven at Lea Marina for a current inventory of available Lots. The developer of this Subdivision is: WLI Investments, LLC 60 Gregory Road, Suite 1 Bellville, NC 28451 Telephone Number: (910) 452-7175 Answers to questions and information about this subdivision may be obtained by telephoning the developer (the “Developer”) at the number listed above.

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TITLE TO THE PROPERTY AND LAND USE GENERAL INSTRUCTIONS A person with legal title to property generally has the right to own, use and enjoy the property. A contract to buy a Lot may give you possession but does not give you legal title. An owner of a Lot in the Subdivision shall be referred to herein as an “Owner” or “Lot Owner.” You won’t have legal title until you receive a valid deed. A restriction or an encumbrance on your Lot, or on the Subdivision, could adversely affect your title. Here we will discuss the sales contract you will sign and the deed you will receive. We will also provide you with information about any land use restrictions and encumbrances, mortgages, or liens affecting your Lot and some important facts about payments, recording, and title insurance. METHOD OF SALE Sales Contract and Delivery of Deed In order to purchase a Lot, you will sign an Agreement to Sell and Purchase Salters Haven at Lea Marina Homesite (“Purchase Agreement”) and put down an earnest money deposit in an amount negotiated with the Developer. The balance of the purchase price will be due at Closing. It is intended that sales of Lots will be made for cash, with full payment of the purchase price due from the purchaser (“Purchaser”) at the time of settlement (“Closing”). We do not provide financing and have no responsibility for obtaining financing for you. If you wish to finance the purchase of your Lot, you will be responsible for all costs and expenses associated with the financing of your purchase, which would include intangible taxes and recording fees on the deed to secure debt. If you are providing your own financing, you will be responsible for having that in place at Closing. The Purchase Agreement does contain a provision, if checked, constitutes a financing contingency. The provisions provides that on or before a specified date referred to in the Purchase Agreement as the “Final Contingency Date,” the Purchaser must be able to obtain a firm commitment, effective through the date of Closing for a loan secured by a first deed of trust on the Lot within certain specified parameters. The Purchaser agrees to use his/her best efforts to secure such commitment, including, without limitation, submitting to the lender of its choice a mortgage loan application and such other information as requested by such lender, within seven (7) calendar days from the effective date of the Purchase Agreement, and to advise Seller immediately upon receipt of the lender's decision. In the event no notice is received by Seller prior to the Final Contingency Date, the financing contingency shall be deemed waived by the Purchaser. Should the Purchaser fail to qualify for financing as set forth herein, and Purchaser notifies Seller prior to the Final Contingency Date, then Purchaser may terminate the Agreement whereupon the Deposit shall be returned to Purchaser and neither party shall have any further liability to the other. You will not have title to a Lot until you receive a deed. All Purchasers will receive a deed at closing which will be set forth as an anticipated date in the Purchase Agreement and in any event Salters Haven at Lea Marina ISLRP: 40043

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within one hundred eighty (180) days of the date you sign the Purchase Agreement. We will deliver the deed to you free and clear of monetary liens other than any financing you may place against your Lot. You will be responsible for closing costs, including but not limited to the general costs of closing, costs of any surveys you may require, title examination expenses and title insurance premiums you may require, any financing fees, working capital assessments and any other fees and expenses of all parties engaged by Purchaser as part of the Closing. Pursuant to the Purchase Agreement, we will be responsible for preparing and recording the deed to your Lot and the transfer taxes applicable to Seller payable with respect to the transfer of your Lot. You will be responsible for all other costs of closing. Type of Deed The transfer of legal title to a Lot will be accomplished by a General Warranty Deed. A General Warranty Deed provides that the title is free and clear from any and all encumbrances, except as set forth therein; and that the Seller will, and its successors and assigns shall, warrant and defend the title to the Lot against the lawful claims and demands of any and all persons. The exceptions within the General Warranty Deed, which the Lot will be transferred subject to, include Ad Valorem taxes; all applicable zoning and land use ordinances, rules, regulations, laws and statutes; and all restrictive covenants, easements and rights-of-way of record. ENCUMBRANCES, MORTGAGES, AND LIENS In General There Subdivision is encumbered by the following blanket liens: Type of Encumbrance Deed of Trust

Lender

Amount of Loan

Flagstar Bank, FSB

$14,800,000.00

Lots Affected All Lots in Phase 1

This is an acquisition and development loan obtained by the Developer to acquire and commence the initial improvements to the Subdivision. Additional financing may be necessary to complete the Subdivision. In addition to the Lots in Phase 1 of the Subdivision, the Deed of Trust encumbers the Boat Slips in the Marina as described further below. The Subdivision is also encumbered by restrictive covenants affecting the use of the property and other non-monetary encumbrances affecting the Subdivision as a whole, including easements and other documents. See the heading on “Restrictive Covenants,� below, for additional information. Release Provisions Individual Lots will be released from the Deed of Trust upon payment of a release price by the Developer to the Lender. The release provisions are contained in the Loan Agreement relating

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to the Deed of Trust, which is not a recorded document. In order to release your Lot from the Deed of Trust, we are required to make a payment to the Lender. THE RELEASE PROVISIONS FOR THE LOTS ENCUMBERED BY THE DEED OF TRUST REFERENCED ABOVE HAVE NOT BEEN RECORDED. AS IS TYPICAL IN LOT SALES BY THE DEVELOPER, THE DEVELOPER INTENDS TO RELEASE THE INDIVIDUAL LOTS FROM THE ENCUMBRANCES AT THE TIME OF SALE, HOWEVER, SINCE THESE PROVISIONS ARE NOT IN A RECORDED DOCUMENT, WE ARE REQUIRED TO STATE THAT THEY MAY NOT BE HONORED BY SUBSEQUENT HOLDERS OF THE DEED OF TRUST. IF THEY ARE NOT HONORED, YOU MAY NOT BE ABLE TO OBTAIN CLEAR TITLE TO A LOT COVERED BY THE DEED OF TRUST UNTIL WE HAVE PAID THE DEED OF TRUST IN FULL, EVEN IF YOU HAVE PAID THE FULL PURCHASE PRICE OF THE LOT. THE RELEASE PROVISIONS MAY BE EXERCISED ONLY BY US. IF WE SHOULD DEFAULT ON THE DEED OF TRUST PRIOR TO OBTAINING A RELEASE OF YOUR LOT, YOU MAY LOSE YOUR LOT AND ALL MONIES PAID. RECORDING THE CONTRACT AND DEED Method or Purpose of Recording Under North Carolina law, recording of a deed in the real property records of the county in which the land is located will protect your financial interest in your lot from subsequent creditors of the Developer. Your attorney should record the General Warranty Deed that you receive at Closing. The approximate cost to record a Deed is thirty dollars ($30.00). The Purchase Agreement for your Lot cannot be recorded because it will not be in recordable form. UNLESS YOUR CONTRACT OR DEED IS RECORDED YOU MAY LOSE YOUR LOT THROUGH THE CLAIMS OF SUBSEQUENT PURCHASERS OR SUBSEQUENT CREDITORS OR ANYONE HAVING AN INTEREST IN THE LAND. Title Insurance The Purchaser should obtain an attorney’s opinion of title or a title insurance policy (“Title Policy”) at Closing which will describe the rights of ownership which are being acquired in the Lot. At Closing you can receive, at your option and expense, a Title Policy from a title insurance company. The estimated cost of such Title Policy is eight hundred dollars ($800.00) for an average Lot. The Title Policy will insure your title to the Lot subject to those items permitted by the sales contract. An appropriate professional should interpret an attorney’s opinion or the Title Policy for you.

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PAYMENTS

Escrow

The earnest money deposit you make on the purchase of a Lot when you sign the Purchase Agreement will be placed in a third-party controlled escrow account. The escrow agent will be Block, Crouch, Keeter, Behm & Sayed, 310 N. Front St. Suite 200, Wilmington, NC 28401. Such funds will be held in their Lawyers Trust Account which is an FDIC insured account. In the event of our failure to convey the Lot to you by General Warranty Deed as required by your Purchase Agreement, free and clear of any blanket liens or encumbrances, excepting any purchase money financing that you may obtain and other matters of record, the escrow agent shall refund all of your deposit monies to you pursuant to the terms of the Purchase Agreement. The Developer does not have a financial or controlling interest in the escrow agent. Prepayments All Lot sales are intended to be cash sales. In the event financing is required by you, we can make no comment as to the nature of prepayment penalties that may be imposed by the lending institution, if any. Default If Purchaser shall default in any of the payments or obligations called for in the Purchase Agreement, then at the option of Seller, Purchaser shall lose any and all rights under the Purchase Agreement and the Purchase Agreement shall terminate and any Deposit or other amounts paid by Purchaser toward the purchase price or as earnest money will be retained by Seller and Seller may elect to avail itself of any and all remedies of law or in equity including contracting for sale of the Lot with another Purchaser. In the event of breach of the Purchase Agreement by Seller, the Deposit and other sums paid by Purchaser to Seller hereunder shall be returned to Purchaser and the Purchase Agreement shall terminate and neither party shall have any further liability to the other party. Under no circumstances shall Seller be liable for any special, indirect or consequential damages, including, without limitation, any damages based on a claimed diminution in value. RESTRICTIONS ON THE USE OF YOUR LOT Restrictive Covenants Developer, as the Declarant, shall cause to be recorded that certain Master Declaration of Covenants, Conditions, and Restrictions for Salters Haven Subdivision in the Pender County Registry. Those covenants will govern the use of the Lots, create easements and addresses other matters regarding the Lot and the Subdivision. The covenants, as may be amended from time to time, are hereinafter referred to as the “Declaration.� At this time, the Declaration has not been recorded. It will be recorded prior to the conveyance of the first Lot in the Subdivision. Until such time as the Declaration is recorded, there is no assurance that the restrictions contained therein will be applied uniformly, they can be changed and they may be difficult to enforce. Prospective

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Purchasers should ensure that the Declaration has been recorded, review it and be comfortable with its terms prior to closing on a Lot. The Declaration contains items which require a Purchaser to secure permissions, approvals or take any other action prior to using or disposing of his Lot. The following is provided as a cursory summary of the Declaration and should not be a substitute for a thorough review of the Declaration with your business and legal providers. A complete copy of the Declaration is available from the Developer upon request. Among other things, the Declaration requires Lot Owners to become members of the Salters Haven Master Association, Inc. (the “Association”) the Association responsible for administering the affairs of its members and determining, assessing and collecting the various assessments provided for in the Declaration. The Declaration also provides for Architectural Design Standards and requires that any building plans, site clearing, and the location of any house within set-back lines applicable to the Lot shall be subject to the prior approval of Developer and the Architectural Review Committee (or any other person, group or committee given the authority to perform architectural review under the Declaration). Developer has taken great care in the planning, design, and construction of Salters Haven to achieve aesthetic and ecological harmony within the neighborhood. Salters Haven is a unique neighborhood, and in order to achieve the quality of the neighborhood, a plan review process has been established. Buyer will be required to pay at the time of plan review an Architectural Review Fee. The Developer has established an “Approved Builders Program” within the Declaration which restricts who is authorized to build homes in Salters Haven. The Approved Builders Program is designed to maintain a high level of quality of construction and aesthetic appeal within Salters Haven. The participants in the Approved Builders Program must submit applications and be approved by the Developer before being allowed to build in Salters Haven. The Approved Builders offer many plans and designs for homes which have been approved for construction in Salters Haven. Purchasers, by execution of a Purchase Agreement, warrants and represents that improvements on Purchaser’s Lot may only be constructed by an Approved Builder. No Salters Haven Approved Builder is an employee or agent of the Seller. Any assurances of quality construction, compliance to the Design Standards, completion according to plan, and timeliness are the sole responsibility of any Purchaser contracting directly with a Salters Haven Approved Builder. Developer is not responsible for any home, home design, representation or promise made by any Approved Builder selected by Purchaser. In accordance with North Carolina General Statutes Section 136-102.6, prospective Purchasers are advised that roadways serving Salters Haven may be designated on the final plat as private roads and not public roads. If any of the roadways in Salters Haven are designated on the final plat as “private” all of the Owners of property located within Salters Haven have easements in order to travel over and across these roadways. As private roads, and not public roads, the responsibility for maintenance of these roads will be upon the property Owners through the Association, although Seller shall maintain and improve said roadways to the extent it deems appropriate prior to turning over this responsibility to the Association. If any roadways are Salters Haven at Lea Marina ISLRP: 40043

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designated as “public” on the final plat of Salters Haven, the Association shall maintain such roadways as a common area until such roadways are accepted into the secondary road system, or other governmental roadway program. No representation has been made that construction of these roadways is or will be sufficient to be included in the state secondary road system or that Pender County or the State of North Carolina will eventually assume maintenance of the roadways. The Declaration also includes a number of use restrictions. The Declaration establishes a set of Community-Wide Standards which provide for the level of maintenance of property within the Subdivision. Each Owner is required to maintain his or her Lot and all structures, parking areas, landscaping, and other improvements comprising or located upon the Lot in a manner consistent with the Community-Wide Standard and all applicable covenants, unless such maintenance responsibility is specifically assumed by or assigned to the Association, or to the Salters Haven Yacht Club, as discussed hereinbelow, or pursuant to any Supplemental Declaration or other Declaration of Protective Covenants applicable to such Lot. There are further provisions included in the Declaration with respect to such maintenance responsibility some of which are based upon location and the Declaration provides remedies to the Association for the failure of a Lot owner to so comply. The Declaration provides for the right of the Association to establish Rules and Regulations. It provides for “General” use restrictions, restrictions on: Animals and Pets; Placement of Outdoor Clothes Drying Structures; Offensive and Illegal Activities; Parking; Repair and Removal of Buildings; Outdoor Burning; Signs, including restrictions on “For Sale” signs; Hunting and Fishing including a prohibition of hunting and discharging of firearms within the Subdivision; Garbage requirements; Antennas, Well Installation; and a variety of other activities. We cannot restate all of the provisions of the Declaration in this Property Report. Prospective Purchasers are advised to carefully review the Declaration and other documents governing the use an occupancy of Lots and the administration of the Association, including the Association’s Bylaws, any rules and regulations or other documents provided by the Developer in connection with the sale of a Lot in the Subdivision carefully with their legal and/or business advisors to determine if any of such provisions will impact your intended use and enjoyment of your Lot. Again, a copy of the Declaration and such other governing documents are available from the Developer upon request. Easements There are various easements affecting Lots in the Subdivision, as set forth in the Declaration, on the final recorded Subdivision Plat for your Lot and in the title evidence for your Lot. You should review these documents carefully to understand the easements that may affect your Lot. There are a number of easements included in the Declaration. These include an Easement for Utilities, an Easement for Utility Installation, an Easement to Serve Additional Property, an Easement for the Salters Haven Yacht Club, an Easement for Cross-Drainage, and easement to Grant Further Easements, an Easement for Entry, an Easement for Maintenance, an Easement for Irrigation, an Easement for Owners Ingress and Egress, an Easement for Pathways, a Common Area Easement, all of which run with the Land. Purchasers should review all such easements contained in the Declaration carefully with their legal and/or business advisor to understand any Salters Haven at Lea Marina ISLRP: 40043

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impact they may have on the use of their Lot. Additional easements will be set forth on the recorded plat or recorded in the public records of the County. You are advised to review all such documents with your advisors as the above is merely a cursory listing of applicable easements and is not a substitute for a full review and understanding. Also, since the final plats for the Lots in the Subdivision, it is not known what additional easements may be included thereon. These should also be reviewed carefully for easements such as utility easements, drainage easements, set back lines and easement, etc. Please refer to the recorded Subdivision Plats once they are available as well as any Title Policy you may obtain, to determine the effects of such easements on any particular Lot. PLATS, ZONING, SURVEYING, PERMITS AND ENVIRONMENT Plats The plats of the Subdivision and of the Lots in this Property Report (“Plats”) have not yet been given final approval or recorded by the local regulatory authorities nor have they been recorded. While the Subdivision has received general approval from Pender County, we have not yet finalized the Plats or received all necessary signatures to record them. Prior to the conveyance of any Lots in the Subdivision, such Lot will be set forth on a recorded Plat on file in the Official Records of Pender County.

THE REGULATORY AUTHORITIES HAVE NOT GIVEN FINAL APPROVAL OF THE PROPOSED PLATS FOR THE LOTS IN IN THE SUBDIVISION. IT IS POSSIBLE THAT THEY MAY REQUIRE SIGNIFICANT ALTERATIONS BEFORE THEY WILL APPROVE THEM AND THEY MAY NOT ALLOW THE LAND TO BE USED FOR THE PURPOSE FOR WHICH IT IS BEING SOLD. NOTWITHSTANDING THE FOREGOING, THE DEVELOPER WILL RECORD THE PLATS PRIOR TO THE SALE OF ANY LOTS IN THE SUBDIVISION. Zoning The Lots in the Subdivision are zoned by Pender County as Residential RP Zoning. The Lots may only be used for general residential purposes. Surveying All Lots will be surveyed, staked and marked for identification by the Developer prior to Closing at no cost to the Purchaser. Permits The following agencies affect the development of the Subdivision: •

Pender County Planning, 805 S. Walker St. Burgaw, NC 28425;

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• • • • •

NCDEQ Wilmington, Regional Office 127 Cardinal Dr. Wilmington, NC 28405; NCDEQ Division Water Resources, 512 North Salisbury St. Raleigh, NC 27699; NCDEQ Erosion and Sediment Control, 127 Cardinal Dr. Wilmington, NC 28405; US Army Corps of Engineers, 69 Darlington Ave. Wilmington, NC 28403; and NCDEQ Division of Coastal Management, 127 Cardinal Dr. Wilmington, NC 28405.

You will have to obtain a building permit from the Central Permitting Division of the Pender County Planning Office in order to build a home on your Lot. The estimated cost of such building permit is $1,300.00. The cost of a building permit is not controlled by the Developer. In addition to the costs of the building permit, you may also be required to pay for certain fees and costs associated with your connection to and use of utilities (as more particularly set forth under the “Utilities” Section below). Also, approval in the form of a consent, for improvements to be constructed on a Lot, including the home thereon, must be obtained from the Architectural Review Committee (“ARC” or the “Committee”) in conformity with the Community-Wide Standards. The Developer shall prepare the initial Design Guidelines and application and review procedures (the "Design Guidelines") which shall apply to all construction activities within the Subdivision. The ARC shall adopt such Design Guidelines at its initial organizational meeting and thereafter shall have sole and full authority to amend them subject to the approval of the Board of Directors. The ARC shall make the Design Guidelines available to Owners who seek to engage in development or construction within the Properties and all such persons shall conduct their activities in accordance with such Design Guidelines. No construction or improvements shall be commenced, erected, placed or maintained on any Lot, nor shall any exterior addition, change or alteration be made thereto, until the plans and specifications ("Plans") showing site layout, structural design, exterior elevations, exterior materials and colors, signs, landscaping, drainage, lighting, irrigation, utility facilities layout, and screening shall have been submitted to and approved in writing by the ARC. The Design Guidelines shall set forth the procedure for submission of the Plans. A reasonable fee for the review of said plans may be required by the Committee, in which case such fee shall be submitted along with said Plans and any other supporting documents required by Committee. The Board or the Committee may also require an additional security deposit to be posted prior to the commencement of any construction or work, which sum shall be used to collect any fees, fines or penalties incurred during construction or work. If such a security deposit is required, any portion of the security deposit remaining upon the completion of construction shall be returned to the Owner. The ARC shall, within forty-five (45) days after receipt of each submission of the Plans, advise the party submitting the same in writing, at an address specified by such party at the time of submission, of (1) the approval of Plans, or (2) the segments or features of the Plans which are deemed by such committee to be inconsistent or not in conformity with the Declaration and/or the Design Guidelines, the reasons for such finding, and suggestions for the curing of such objections. In the event the Committee fails to advise the submitting party by written notice within the time set forth above of either the approval or disapproval of the Plans, approval shall be deemed to have been given. Notice shall be deemed to have been given at the time the envelope containing such notice, properly addressed, and postage prepaid, is deposited with the U.S. Postal Service, Salters Haven at Lea Marina ISLRP: 40043

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registered or certified mail, return receipt requested. Personal delivery of such written notice shall, however, be sufficient and shall be deemed to have given at the time of delivery. If construction does not commence on a project for which Plans have been approved within twelve (12) months of such approval, such approval shall be deemed withdrawn, and it shall be necessary for the Owner to resubmit the Plans for reconsideration to the ARC. Once construction has been initiated on a Lot, the Owner thereof must complete such construction within eighteen (18) months. If an Owner does not comply with such schedule, then the Developer, the Board of the Association, and the Association shall each have the right (but not the obligation) to complete such construction on Owner's behalf and at such Owner's expense. In the event the Developer, the Board of the Association, or the Association exercises the right provided in the immediately preceding sentence, then they (as the case may be) shall be entitled to collect from such Owner, in addition to a reimbursement of all costs expended in the completion of construction of the Lot, an administrative fee for such work, which fee shall be equal to twenty percent (20%) of the costs incurred by such party in completing the work. Any and all of the foregoing costs and fees that may be incurred by or payable to Developer, the Board of the Association and/or the Association shall be a charge and continuing lien upon such Lot until paid, and Developer, the Board of the Association, and/or the Association may bring an action against such Owner, or foreclose the lien against the property in the same manner as provided in North Carolina for the foreclosure of deeds of trust, or both, and, in either event, interest, costs and reasonable attorneys’ fees of any such action shall be added to the amount payable to Developer, the Board of the Association and/or the Association. Currently, the fee for submission of Plans to the ARC is established at $250; however, the Committee has not yet been formed and the ARC is not operational. As such, this is an estimate only and is subject to an increase at the discretion of the ARC to be an amount sufficient for the review of such plans. Environment An environmental impact study considering the effect of the Subdivision has been prepared. The study concluded that there were no materially adverse conditions in connection with the development of the Subdivision.

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ROADS Here we discuss the roads that lead to the Subdivision, those within the Subdivision and the location of the nearby communities. ACCESS TO THE SUBDIVISION Access to the Subdivision is provided by U.S. Highway 17 and Factory Road/SR 1570. U.S. Highway 17 is a four-lane paved public road with an asphalt surface. Factory Road/SR 1570 is a two-lane paved public road with an asphalt service. The North Carolina Department of Transportation (“NCDOT”) is responsible for the maintenance of these roads. There is no cost to Purchasers for maintenance of these roads. Construction to convert U.S. Highway 17 between Washington Acres Road and Sloop Point Loop Road into a “superstreet” is planned. A “superstreet” is a road design designed to improve traffic and safety. NCDOT is responsible for the construction of these improvements and there will be no cost to Purchasers. ACCESS WITHIN THE SUBDIVISION Legal and physical access to the Subdivision from Factory Road/SR 1570 and within the Subdivision is provided by private roads which will be two-lane roads with an asphalt surface. The Developer is responsible for construction of all interior roads pursuant to permits from Pender County and NCDOT. The Developer has received preliminary plan approval from the NCDOT and the roads are under construction. No portion of the initial construction costs of the interior roads will be your responsibility. The roads will be developed and maintained to provide access on a year-round basis. The roads will be constructed on 45 or 50’ rights-of-way most of which will be dedicated to the Association and will have a 24’ wearing surface and will be built to the standards required by the NCDOT and Pender County. The majority of the roads in the Subdivision are intended to remain private; however, certain roads in the subdivision may be public roads depending upon the willingness of NCDOT to take such roads under their responsibility. Once this is determined, this Report will be updated to specify which roads are public and which roads are private. Below is the completion schedule for the interior roads. Please note these are estimated dates based on our planned construction schedule, however, various factors may affect the course of construction and we will not be held accountable for any delays. Section Phase 1/Section1 Phase 2/Section 2

Estimated Estimated Start Completion Date Date 6/2019 4/2020 1/2020 10/2020

Current Percentage Complete 35% 0%

Present Surface

Final Surface

Dirt/Gravel Dirt/Gravel

Asphalt Asphalt

Financial arrangements for the completion of the interior roads are provided by the loan secured by the Deed of Trust. Additionally, Developer has posted a bond with the NCDOT for completion of the driveway providing access between the Subdivision and Factory Road.

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However, bonds have not yet been posted with the County to assure completion of the interior roads. OTHER THAN THE FACT THAT THE DEVELOPER CAN ONLY DRAW DOWN FUNDS FROM THE LOAN TO FUND INFRASTRUCTURE COSTS, NO FUNDS HAVE BEEN SET ASIDE IN AN ESCROW OR TRUST ACCOUNT AND THERE ARE NO OTHER FINANCIAL ARRANGEMENTS TO ASSURE COMPLETION OF THE ROADS. The Developer will be responsible for the maintenance of the interior roads until such time that the roads are conveyed to the Association and/or accepted by NCDOT, as applicable. The Developer plans to convey the private interior roads to the Association upon completion of the Subdivision at which point such interior roads will become Common Area that is owned and maintained by the Association. Once the interior roads become the responsibility of the Association, the cost maintenance will be apportioned amongst the Owners as part of the assessments payable to the Association. Each Lot Owner has a non-exclusive right and easement of enjoyment in and to the Common Area for its intended purposes, which easement is appurtenant to Lot ownership, subject to certain restrictions set forth in the Declaration. The foregoing described easement includes use of the roads designated as Common Area. Lot Owners will have access to all roads accepted by NCDOT, if any, as well; however, the maintenance responsibility for any such roads will be the responsibility of NCDOT. The table below identifies the approximate distance (in miles) from the center of the Subdivision to nearby communities. Nearby Communities Population (est.) Distance Over Paved Roads Distance Over Unpaved Roads Total Distance (Miles) *County seat

Salters Haven at Lea Marina ISLRP: 40043

Surf City, NC

Wilmington, NC

Burgaw, NC*

2,342 14.2 0 14.2

119,045 19.8 0 19.8

52,217 22.9 0 22.9

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Dated: January 6, 2020


UTILITIES Here we will discuss the availability and cost of basic utilities. The areas covered will be water, sewer, electricity, and telephone or other energy sources. WATER Water is supplied to the Subdivision through a central water system (the “Central Water System”) owned and operated by a governmental agency, Pender County Utilities (the “Water Utility”) located at 605 E. Freemont Street, Burgaw, NC 28425. The Water Utility is a regulated governmental agency. The Water Utility will be responsible for maintenance of the Central Water System after completion. The Water Utility is a publicly regulated water utility subject to regulation by the North Carolina Department of Environmental Quality (“NCDEQ”). Water mains will be extended in front of, or adjacent to, each of the Lots covered by this Property Report. Developer is responsible for construction of said water mains. Purchasers will not bear any costs for the completion of the Central Water System. The capacity of the Central Water System is sufficient to serve the anticipated population of the Subdivision. Developer has obtained all necessary permits for the installation of the service lines water mains in front of or adjacent to all Lots in the Subdivision. Purchasers will be required to pay for the costs of any permits or construction costs to extend the water lines from their lot line to their home. The estimated cost of such extension is approximately $3,500.00; however, this is only an estimate and these costs are subject to change as they are not controlled by the Developer. Purchaser will be responsible for a one-time connection fee to Pender County which varies based upon meter size but is estimated at $3,729.00. It is expected that such fee would be included in the cost of the home to be constructed. This fee is subject to change and is not controlled by the Developer. The estimated completion schedule for the extension of the watermains is as follows: Section

Estimated Starting date

Percentage of Construction Now Complete

Estimated Service Availability Date

Phase 1

August 2019

35%

May 2020

Phase 2

January 2020

0%

October 2020

Owners may not install individual water systems on their Lot for drinking water but may install one single well per Lot for the purpose of irrigating the land comprising the Lot. Potable water will not be available to your Lot until the water mains are extended to your Lot. SEWER Sewage disposal is supplied to the Subdivision through a central sewer system (the “Central Sewer System”) owned and operated by Old North State Water Company (the “Sewer Utility” or “ONSWC”), located at 4700 Homewood Court, Suite 108, Raleigh, NC 27609. The Sewer Utility Salters Haven at Lea Marina ISLRP: 40043

17

Dated: January 6, 2020


is a private utility company regulated and supervised by the NCDEQ. The Sewer Utility will be responsible for maintenance of the Central Sewer System which is currently operational. The Developers responsibility will be to install service lines and sewer mains within the Subdivision which will connect to the Central Sewer System. Sewer mains will be extended in front of, or adjacent to, each of the Lots covered by this Property Report. Developer is responsible for construction of said sewer mains. Purchasers will not bear any costs for the completion of the Central Sewer System or for the extension of the service lines to their Lot. The capacity of the Central Sewer System is not currently sufficient to serve the anticipated population of the Subdivision. However, the Developer has obtained the necessary permit to expand the Central Sewer System to a capacity sufficient to serve the entire Subdivision and has already begun expansion of the Central Sewer System. Such expansion shall be the responsibility of the Developer and will not have any additional cost to the Purchasers. Purchasers will be required to pay for the costs of any permits or construction costs to extend the sewer lines from their Lot line to their home. Each Purchaser will be responsible for a one-time connection fee to the Sewer Utility. The connection fee is estimated to be $4,200.00, however, this is only an estimate and this fee is subject to change as it is not controlled by the Developer. It is contemplated that such fee would be included in the cost of a home to be constructed on the Purchaser’s Lot. The estimated completion schedule for the extension of the sewer mains is as follows:

Section

Estimated Starting date

Percentage of Construction Now Complete

Estimated Service Availability Date

Phase 1

August 2019

70%

January 2020

Phase 2

January 2020

0%

October 2020

PENDER COUNTY THROUGH ONSWC HAS NOT YET OBTAINED THE FINAL PERMITS FOR THE EXPANSION OF THE CENTRAL SEWER SYSTEM, THEREFORE THERE IS NO ASSURANCE THAT THE SYSTEM CAN BE COMPLETED, OPERATED OR USED. BECAUSE THE CENTRAL SEWER SYSTEM IS NOT CURRENTLY SUFFICIENT TO SERVE THE ENTIRE SUBDIVISION, ALL LOTS CANNOT NOW BE SERVED. THE PRESENT CAPACITY OF THE CENTRAL SEWER SYSTEM IS 280 CONNECTIONS THAT ARE AVAILABLE TO THE SUBDIVISION, HOWEVER, DEVELOPER HAS OBTAINED THE NECESSARY APPROVAL TO EXPAND THE CENTRAL SEWER SYSTEM AND SUCH EXPANSION HAS BEGUN. UPON COMPLETION OF THE EXPANSION OF THE SEWER SYSTEM, THE CENTRAL SEWER SYSTEM WILL BE SUFFICIENT TO SERVE ALL LOTS COVERED BY THIS PROPERTY REPORT. Owners may not install individual sewer systems on their Lot. Consequently, sewer disposal will not be available to your Lot until the sewer mains are extended to your Lot. 18

Salters Haven at Lea Marina ISLRP: 40043

Dated: January 6, 2020


ELECTRICITY Duke Energy-Progress (“Duke Energy”), a publicly regulated utility located at 1451 Military Cutoff Road, Wilmington, NC 28403, will provide electrical services to the Subdivision. Duke Energy is responsible for the construction of the primary electrical service lines and the extension of the service lines in front of, or adjacent to, all Lots. Electric service lines have not been installed to the Lots covered by this Property Report but such work has been completed to the extent set forth below: Section Phase 1/Section1 Phase 2/Section 2

Estimated Start Date 6/2019 1/2020

Estimated Completion Date

Current Percentage Complete

April 2020 October 2020

35% 0%

NO FUNDS HAVE BEEN SET ASIDE IN AN ESCROW OR TRUST ACCOUNT NOR HAVE OTHER FINANCIAL ASSURANCES BEEN MADE TO ASSURE COMPLETION OF THE ELECTRIC LINES IN THE SUBDIVIION. You will not be responsible for any construction costs for primary service lines being extended in front of, or adjacent to, your Lot. However, you will be responsible for the costs of installing underground electric lines within your Lot and dwelling (i.e., from the access point provided by Duke Energy to your home). The cost of such extension shall depend upon the distance from your Lot line to the access point for electricity at your home and is estimated to be approximately $110 per line foot. It is contemplated that such costs will be included in the cost of a home to be built on the Purchasers Lot. Before Duke Energy will provide electric service to a Lot, all required city and county inspections, including an electrical inspection, must be complete. Duke Energy requires a $17.00 connection fee to activate a new account. A security deposit may be required based on your personal credit history. TELEPHONE/TV/INTERNET Telephone, television and internet (collectively, “Communication”) services will be available to each Lot in this Property Report. The Developer has a will-serve letter from AT&T to furnish telephone service and AT&T will extend the phone service lines within the Development. Spectrum will supply Cable TV and Internet Service to the Subdivision and the Developer has a similar will-serve letter from Spectrum. You will not be responsible for any of the construction costs incurred to extend Communication services to your Lot. All of these costs will be paid by AT&T or Spectrum.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


The estimated time required for Communication services to be installed and operational on a Lot is approximately thirty (30) days from the date a request is made to AT&T or Spectrum once a home is completed and ready for occupancy; however, the timing is totally up to the service provider and the Developer has not control over such timing. FUEL OR OTHER ENERGY SOURCE Electricity will be available for your Lot for heating, cooking, and other purposes. In addition, underground individual propane tanks are allowed within the Subdivision at your own cost and expense, subject to location approval by the ARC. There are a number of propane providers in Pender County that would provide service to the Subdivision. Fuel tank size, location, type and other features are subject to local codes and must be approved by the ARC. Community gas lines are not available within the Subdivision at this time and no guarantee is made on behalf of the Developer to provide such underground lines; however, if it becomes available to the Subdivision, the Developer may elect, but shall be under no obligation, to provide this service. Piedmont Natural Gas provides service in the area of the Subdivision.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


FINANCIAL INFORMATION A discussion in this section will focus on our financial position. The Developer is a newly formed specific purpose entity without significant operating experience. Principals of the Developer have significant development experience and have built a significant number of homes. Copies of our financial statements for the period ending September 30, 2019 are available from us upon request.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


LOCAL SERVICES In this Section, we will discuss the availability of fire and police protection and the location of schools, medical care and shopping facilities. FIRE PROTECTION Fire protection for the Subdivision, is provided on a year-round basis by the Pender EMS and Fire Protection Department. The closest station is Pender EMS and Fire Station 16 located at 15840 US-17, Hampstead, NC 28443, approximately two miles from the Subdivision. POLICE PROTECTION Police protection is provided by the Pender County Sheriff’s Office. The main Sheriff’s Office is located at 605 E Fremont St., Burgaw, NC, 28425, (910) 259-1212. SCHOOLS Residents of the Subdivision will be able to utilize the Pender County elementary schools, middle schools and high schools. It is likely they will use the Topsail elementary, middle and high schools that are all within five miles of the Subdivision. Pender County Schools have bus service. HOSPITAL The Pender Memorial Hospital is located at 507 E. Fremont Street, Burgaw, NC 28425 (910) 300-4000, and is located approximately 20 miles from the Subdivision. The hospital has a 24-hour emergency room. The New Hanover Regional Medical Center is located in Wilmington and is also approximately 20 miles from the subdivision. There is a 24-Hour emergency care center located on Highway 17 within ten (10) miles of the Subdivision. PHYSICIANS AND DENTISTS Physician and Dentist offices are located in Topsail and Topsail Beach, North Carolina within a few miles of the Subdivision as well as in Burgaw and Rocky Point, North Carolina. Additional physician and dentist’s office are available throughout the county and between one (1) and twenty (20) miles of the Subdivision. SHOPPING FACILITIES Shopping facilities are available in Topsail, Topsail Beach and along Route 17 which borders the Subdivision. A Food Lion grocery store is within a half (.5) mile of the Subdivision. The Mayfair Town Center is within twelve (12) miles of the Subdivision.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


MAIL SERVICE U.S. Mail Service is available to the Subdivision. Some Lots may be served by a single mailbox bank or kiosk. If that is the case, no mailboxes shall be installed or allowed to remain on any Lot which has a mailbox within such mailbox kiosk. Any Lots which are not served by such a mailbox kiosk may have individual mailboxes installed subject to the following: All mailboxes and other such receptacles must be approved in advance by the ARC. Any boxes provided by the Developer on a Lot shall be considered an improvement and must remain with the Lot and must be maintained by the Lot Owner. The U.S. Postal Service maintains a local post office at 121 Dan Owen Dr, Hampstead, NC 28443 which is within two miles of the Subdivision. PUBLIC TRANSPORTATION There is no public transportation from the Development to nearby towns. Furthermore, there is no public transportation system within the Development. The nearest public transportation is available in downtown Wilmington, North Carolina at a distance of approximately 25 miles from the Subdivision.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


RECREATIONAL FACILITIES The Subdivision will contain the following recreational facilities:

FACILITY

PERCENTAGE ESTIMATED OF DATE OF CONSTRUCTION START OF NOW CONSTRUCTION COMPLETE (month/year)

ESTIMATED DATE AVAILABLE FOR USE (month/year)

FINANCIAL ASSURANCES OF COMPLETION

PURCHASER’S ANNUAL COST OR ASSESSMENTS

Club House

10%

November 2019

May 2020

None

*

Swimming Pool

0%

November 2019

June 2020

None

*

Marina (including)

60%

June 2019

June 2020

None

*

Day Dock

10%

November 2019 September 2020

None

*

Kayak/Canoe Launch Area

10%

November 2019 September 2020

None

*

Bathhouse

10%

November 2019

None

*

June 2020

*The fees for use of such facilities with the exception of boat slips in the Marina and amenities of the Salters Haven Yacht Club, discussed below, are included with the annual assessment of the Common Expenses by the Association. The Developer is in the process of developing an inland basin marina and other amenities located within the Subdivision known as "Salters Haven Yacht Club" (collectively, the "Marina") as listed above, and has conveyed or will convey the Marina to Salters Haven Yacht Club, Inc., a North Carolina non-profit corporation. Access to and use of the Marina, as well as the opportunity to purchase or lease boat slips within the Marina, may be extended to Owners within the Subdivision, subject to conditions, rules and regulations to be specified by Salters Haven Yacht Club, Inc. and the Developer from time to time. Salters Haven Yacht Club, Inc. will designate one dock within the said Salters Haven Yacht Club which will be made available for the non-exclusive use (day docking only) of the Members of the Association. Further, Declarant shall cause Salters Haven Yacht Club, Inc. to designate an area at Salters Haven Yacht Club as a kayak/canoe launch area, which will be made available for the non-exclusive use of the Members of the Association. Other than the boat slips privately owned or leased in the Marina and any private facilities of the Salters Haven Yacht Club which are designated solely for use by its members, Lot Owners will have use of the facilities of the Marina. The rights in and to a boat slip will be represented by a certificate which confers exclusive use rights to a particular docking area (boat slip). In any event, the amenities of the Salters Haven Yacht Club will not be owned by the Association and will be subject to use rights and rules and regulations as established by Salters Haven Yacht Club, Inc. Members of the Association, shall pay to Salters Haven Yacht Club, Inc., pursuant to assessments charged by the Association as part of the Common Expense Assessment, an amount equal to twenty-five percent of the approved assessments for Salters Haven Yacht Club to defray the Member’s use and enjoyment of the Marina amenities described herein.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


CONSTRUCTING THE FACILITIES The Recreational Facilities, including the Marina to be owned by the Salters Haven Yacht Club, Inc., will be constructed by the Developer. Purchasers will bear none of the costs of construction. There are no financial assurances that such Recreational Facilities will be provided or completed. You should carefully consider your decision to purchase a Lot in the Subdivision if it is based upon the availability of the Recreational Facilities. MAINTAINING THE FACILITIES The maintenance and operation of the Recreational Facilities will be the responsibility of the Association to the extent such facilities are, or will be, a part of the Common Area pursuant to the Master Declaration. Through the assessments levied by the Association, you will be required to share in the maintenance and operation costs of the Recreational Facilities. If additional amenities are constructed and made a part of the Common Area, this may increase the annual assessments to fund the operation of the Associations. The maintenance and operation of the Marina will be provided by the Salter’s Haven Yacht Club, Inc. through membership fees and fees paid by members of the Association described above for use of certain facilities of the Salters Haven Yacht Club as described below. TRANSFER OF THE FACILITIES The Developer will convey the Recreational Facilities constituting Common Areas to the Association when it determines the transfer of such facilities is appropriate. Such transfer will be free and clear of any encumbrances. By purchasing a Lot, you will be obligated to pay assessments to the Association which will maintain and operate such Recreational Facilities. The Marina, and the facilities therein, will be owned and operated by the Developer until such time as it is conveyed to the Salters Haven Yacht Club, Inc. PERMITS All necessary Permits for construction of the Recreational Facilities have been obtained and construction of such facilities is now underway. Final permits will need to be obtained for such facilities before they are available for use and the County will issue a Certificate of Completion. WHO MAY USE THE FACILITIES Your rights to use the Recreational Facilities listed above, are non-exclusive. Other than the Marina, your rights to use such amenities are through your membership in the Association. The Common Property Recreational Facilities will not be available for use by the general public and shall be limited to property Owners, their guests and guests of the Developer. The Marina to be owned by Salters Haven Yacht Club Inc., is a private facility other than the day dock and the kayak canoe launch area. Owners of Lots in Salters Haven will have the right to use all of the facilities of the Marina except for the boat slips that are leased by individuals and any additional Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


amenities, if any, designated by the Salters Haven Yacht Club for exclusive use of its members. Members of the Salters Haven Yacht Club will have the use of their boat slips and may utilize other facilities, if any, of the Salters Haven Yacht Club designated for their use. Only Lot Owners may become members of the Salters Haven Yacht Club, and such members may not lease their boat slips to outside people. As such, selling the use of a boat slip would by necessity be limited to another Owner in the Subdivision.

PURCHASER WILL ACKNOWLEDGE IN THEIR PURCHASE AGREEMENT THAT OWNERSHIP OF A LOT AND MEMBERSHIP IN THE ASSOCIATION DOES NOT PROVIDE OR GUARANTEE APPROVAL FOR OR AVAILABILITY OF THE RIGHT TO USE ANY SLIPS IN THE BOATING FACILITY BEING DEVELOPED AS SALTERS HAVEN YACHT CLUB, INC. BUYER MAY BE ABLE TO APPLY (BUT IS NOT GUARANTEED AN OPPORTUNITY TO APPLY) FOR MEMBERSHIP TO (OR IF APPLICABLE, THE USE OF) A BOAT SLIP OR OTHER AMENITIES, BUT SUCH MEMBERSHIP (OR IF APPLICABLE, SUCH USE) SHALL BE SUBJECT TO SEPARATE APPLICATION, APPROVAL AND PAYMENT OF REQUIRED FEES AND DUES. FURTHERMORE, THE DEVELOPER HAS RESERVED THE RIGHTS TO PERMIT USE OF ANY COMMON AREA AND/OR RECREATIONAL AMENITIES BY PERSONS OTHER THAN OWNERS OF PROPERTY WITHIN SALTERS HAVEN WITH OR WITHOUT PAYMENT OF USE FEES. NEITHER DEVELOPER NOR THE ASSOCIATION MAKES ANY WARRANTIES OR REPRESENTATIONS WHATSOEVER WITH RESPECT TO ANY OWNER'S RIGHT OR PRIVILEGE TO PURCHASE OR LEASE A BOAT SLIP OR USE THE MARINA IN ANY OTHER WAY. EACH OWNER, BY ITS ACCEPTANCE OF TITLE TO ANY LOT, THEREBY WAIVES ANY CLAIM AGAINST THE DECLARANT AND/OR THE ASSOCIATION RELATIVE TO ACCESS TO OR USE OF THE MARINA OR ANY PORTION THEREOF.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


SUBDIVISION CHARACTERISTICS AND CLIMATE In this section, we will discuss the basic terrain of the Subdivision, its climate and any nuisances or hazards in this area. GENERAL TOPOGRAPHY The Subdivision is situated in eastern Pender County which is located within the coastal area of southeastern North Carolina. The general topography of the land in the Subdivision is flat but nicely wooded topography with a combination of uplands, wetlands and views of the Intracoastal Waterway. Approximately 16.85 acres within the Subdivision is designed to remain as natural, open space and/or developed park land. There are no rock outcroppings, or to the best of our knowledge, unstable or expansive soil conditions which will necessitate the use of special construction techniques to build on or use, on any Lot of the Subdivision. WATER COVERAGE None of the Lots or portions of the Lots in the Subdivision are covered by water at any time during the year. DRAINAGE AND FILL It is possible that some homes built within the community may require finished floor elevations, lot fill, or a combination thereof, to adhere to the base flood elevation requirements or to redirect surface water. If necessary, the Lot Purchaser will be responsible for any corrective action which is necessitated due to the design of their home. The estimated cost may vary depending upon the building constructed on the Lot. Where adequate fill material cannot be obtained from a Lot, the estimated cost could range approximately $12.00 per cubic yard delivered to the Lot. Purchasers are advised to carefully review the Subdivision plat showing their Lot and walk the Lot with a prospective builder to see if such Lot will require corrective action and the potential costs thereof. FLOOD PLAIN In general, flood hazard zones along the coast are categorized by their potential for water rising as the result of inclement weather, such as a hurricane or tropical storm, and not due to upstream flooding of a stream or river due to run-off. However, this situation does not affect the purpose for which the Lots are sold. In fact, this is a common problem in coastal areas requiring, in certain cases, that dwellings be constructed at or above the base flood elevation as determined by the Federal Emergency Management Association (“FEMA�). Accordingly, the cost of construction may be affected when finished floors are elevated. In addition, you may be required to obtain and maintain flood insurance by your lender, causing an increased cost to you. Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


Portions of the Subdivision are located in an area designated by a federal, state or local agency as being flood prone. Lots that have any flood prone designations are identified as such on the Subdivision Plats, which are available for review by any Purchaser. Flood insurance may be available at a cost; however, lenders may vary as to whether flood insurance is required in connection with the financing of any improvements on the Lot. The estimated annual cost for flood insurance should start from approximately $800; however, final costs are influenced by the actual location of the Lot as well as other factors specific to the property and the residence located thereon. Flood insurance is a debated topic in North Carolina and it is not known whether or not it will continue to be available. In addition, if a home is constructed such that the lowest adjacent grade contiguous to the home is higher than the current minimum flood zone elevation as set by FEMA, and this is documented, there is a provision to apply to FEMA for removal of the lot from the flood zone which is typically sufficient for banks to remove the need for flood insurance. However, should your Lot fall within a designated flood zone, we provide no type of guarantee or assurance that your Lot will be granted removal from the flood zone or that your lender will accept such removal in place of requiring flood insurance. FLOODING AND SOIL EROSION The Developer maintains a program which will provide, at least, minimum control of soil erosion, sedimentation, or periodic flooding throughout the Subdivision. The program is in accordance with the requirements of the NCDEQ and the North Carolina Sedimentation Pollution Control Act and will cost in excess of $4 million to implement. The Developer is obligated to comply with this program pursuant to state law. NUISANCES The Development has marshes and wetlands as discussed herein. There are no other nuisances such as unusual or unpleasant odors, pollutants, noises, or other nuisances of which Developer is aware which may adversely affect the Development. Notwithstanding the foregoing, nuisances may be personal in nature and prospective Purchasers are advised to make an on-the-lot inspection of the Subdivision and their Lot to determine if there exist any conditions that they may consider a nuisance. The Subdivision will be subject to the ongoing construction of a new community which may be considered a nuisance or even a hazard to some. This construction will likely create dust, noise and safety hazards if not carefully monitored and controlled. Prospective Purchasers and Lot Owners should exercise caution around any construction activities. HAZARDS The Subdivision is not subject to any unusual safety factors, nor is the Developer aware of any proposed plans for construction which may create a nuisance or safety hazard, or adversely affect the Subdivision.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


With the exception of severe inclement weather, such as a hurricane or tropical storm, the area is not subject to natural hazards, nor has it been identified by any federal, state or local agency, as an area subject to the frequent occurrence of natural hazards. Nonetheless, Lot Purchasers should be aware of the potential hazards associated with marshland, lakes and waterways, which are located within and adjacent to the Subdivision, including but not limited to, animal life, soft mud and soils and drop offs in lakes and waterways. The Subdivision is within the area covered by the Southeastern NC Regional Hazard Mitigation Plan which may be found at http://www.pendercountync.gov/pcd/documentsbase/southeastern-nc-hazard-mitigation-plan/. Pender County is subject to conditions that make it prone to fires and often implements a County-wide Burning Ban. Information regarding fire weather for Pender County can be found at https://www.ncforestservice.gov/fire_control/fire_weather_reports.htm. We have been unable to determine the fire hazard rating for the Subdivision. The Subdivision will include a recognized water & hydrant system and both a County and Volunteer Fire Department are within two miles of the Subdivision. CLIMATE The average temperatures (degrees in Fahrenheit) for the coldest and warmest seasons of the year are as follows:

Winter Summer

Average Low

Average High

Mean

33 degrees 70 degrees

56 degrees 86 degrees

45 degrees 77 degrees

The area has an average annual rainfall of 55 inches, and snowfall of 1 inch. OCCUPANCY As of the date of this report, there are no homes that are occupied on either a full-time or a part-time basis in the Subdivision.

Salters Haven at Lea Marina ISLRP: 40043

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Dated: January 6, 2020


ADDITIONAL INFORMATION In this heading, we will discuss the following areas: 1. 2. 3. 4. 5.

The Property Owners Association The annual Real Estate Taxes Resale or Exchange Program Equal Opportunity in Lot Sales Listing of Lots

PROPERTY OWNERS’ ASSOCIATION The Articles of Incorporation of Salters Haven HOA, Inc., referred to herein as the Association were filed in February 2019. The Association is a nonprofit property owners’ association incorporated in the state of North Carolina. The principal office of the Association shall be located in Pender County, North Carolina. The Association may have such other offices, either within or outside the Salters Haven Subdivision as the Board of Directors may determine or as the affairs of the Association may require. Every Owner in the Subdivision shall be a Member of the Association. There shall be only one membership per Lot. If a Lot is owned by more than one Person, all co-Owners shall share the privileges of that membership. The membership rights of an Owner which is a corporation, partnership or other legal entity may be exercised by any officer, director, partner, or trustee, or by any other individual designated from time to time by the Owner in a written instrument provided to the Secretary of the Association, provided that only one person (and such person's immediate family members with respect to membership rights other than voting) may be designated to act in such capacity for such an Owner at any particular time. The Association shall have two classes of membership, Class "A" and Class "B.” Class “A” Members shall be all Owners of Lots other than the Developer. Class “B” Members shall be the Developer. The Class “B” Member has significant control over the Association and the Subdivision during the Class “B” Control Period including an entitlement to 15 votes for each unsold platted Lot in the Subdivision. The Class "B" Control Period shall end and the Class “B” Membership shall cease and be converted to Class "A" membership on the happening of one of the following events, whichever occurs earlier: (i) (ii) (iii)

when the Declarant owns no Lots in the Residential Community, including any of the Future Development Property which may be annexed thereto, as herein provided; on January 1, 2049; or when, in its discretion, Declarant so determines and declares in an instrument recorded in the Pender County Registry of Deeds.

A Board of Directors manages the affairs and administration of the Association. The Developer, as “Declarant,” has the exclusive right to appoint and remove the member or members of the Board of Directors during the Class “B” Control Period. Otherwise, such members of the Salters Haven at Lea Marina ISLRP: 40043

30

Dated: January 6, 2020


Board shall be Members of the Association. The Board shall consist of three (3) to five (5) directors, as determined by the Board. Directors appointed by the Developer, the Class "B” Member, shall be appointed by the Developer acting in its sole discretion and shall serve at the pleasure of the Class "B" Member. Initially, the Developer will appoint three (3) persons to serve on the Board. The election of directors shall take place at the Association's annual meeting. Within ninety (90) days after termination of the Class "B" Control Period, or whenever the Class "B" Member earlier determines, the Board shall be increased to five (5) directors. The President shall call for an election by which the Class "A" Members shall be entitled to elect three (3) of the five (5) directors. The remaining two (2) directors shall be appointees of the Class "B" Member. Directors elected by the Members under this subsection (a) shall not be subject to removal by the Class "B" Member (except as otherwise provided by North Carolina law) and shall be elected for a term of two (2) years. Upon the expiration of the terms of the two (2) directors appointed by the Class "B" Member, the President shall call for an election by which the Class "A" Members shall be entitled to elect all five (5) of the directors. Upon expiration of the term of office of each director elected by the Members, Members entitled to elect such director shall be entitled to elect a successor to serve a term of two (2) years. Directors elected by the Members shall hold office until their respective successors have been elected. Assessment obligations of each Lot Purchaser, other than the Developer, commence at such times as provided in Article 5 of the Master Declaration. With respect to each Lot in the Subdivision, a contribution to the working capital of the Association (“Working Capital Assessment”) must be paid to the Association by each Purchaser of a Lot as provided in Article 5 of the Master Declaration. This shall be in the amount of the then-current Annual Assessment. The Association is authorized to levy assessments against each Lot for Association expenses as the Board may specifically authorize from time to time. Each Owner, by accepting a deed or entering into a recorded contract of sale for any portion of the Properties, is deemed to covenant and agree to pay such assessments. Such assessments shall specifically include an amount equal to twenty-five percent (25%) of the Salters Haven Yacht Club, Inc. budget. During the Class "B" Control Period, Developer as the Declarant and any Approved Builders shall not be obligated to pay any regular assessments on their unsold Lots. Until the end of the Class "B" Control Period, all Common Expenses shall be borne by the Owners of Lots sold by Developer to unaffiliated third parties (and assessments on Developer’s unsold Lots will only be payable to the extent needed to cover any shortfall not otherwise payable by assessments to existing Class “A” Members. After the expiration of the Class "B" Control Period or once a home is completed on a Lot, any Lots or Homes owned by Developer or an Approved Builder shall be subject to assessment on the same terms as all other Lots. The waiver of regular assessments for Approved Builders during the Class “B” Control Period shall not exempt Builders from the requirement to pay the Working Capital Assessment due at the closing of the sale of each Lot in the Subdivision. Prior to the sale of the first Lot in the Subdivision and, thereafter, on or before the end of each calendar year, the Board shall prepare and distribute to the Members a budget covering the estimated Common Expenses during the coming year (including, without limitation, a capital contribution to establish a reserve fund in accordance with a budget prepared as provided for in Salters Haven at Lea Marina ISLRP: 40043

31

Dated: January 6, 2020


the Declaration and to the extent required in the Planned Community Act. The Board shall also establish on an annual basis, a Capital Reserve Budget. In addition to the Common Expense Assessment established to fund the Common Expenses of the Association, the Association, through the Board may also levy: Special Assessments to cover unbudgeted or emergency issues; Individual Assessments to cover the costs of providing services to a particular Lot Owner or to cover expenses related to repair and replacement of items which are for the benefit of certain Lots or to cover the costs of bringing a Lot into compliance with the terms of the Declaration or for various other expenses set forth in the Declaration; and Service Assessments which are assessments against a particular Lot or Lots constituting less than all Lots within the Subdivision to cover the costs, including overhead and administrative costs, of providing specialized maintenance and/or landscaping services to such Lots and the occupants thereof (unless such maintenance is part of the services provided by the Association to Owners generally, in which case the cost of such maintenance shall be included in the Master Assessment). Such assessments may be levied in advance of the provision of the requested benefit, item or service as a deposit against charges to be incurred by the Owner. The Declaration provides for an obligation, upon the conveyance of title to any Lot from the Declarant to anyone other than an Approved Builder, for the acquiring Owner to contribute to the Association, as working capital, a working capital assessment equal to one year of the then budgeted annual assessment for such Lot. Such funds shall be used for operating and capital expenses of the Association, including but not limited to, prepaid insurance, supplies, utilities and equipment, capital improvements and repairs, reserves, etc. Amounts paid into the working capital fund are not to be considered advance payment of regular assessments. All working capital funds shall become part of the general operating funds of the Association. Assessments may be enforced through lien rights afforded the Association and pursuant to any other remedies available to the Association under the Declaration, its Bylaws or North Carolina Law. While a final 2020 budget for the Association has not yet been adopted, it is currently estimated that the annual assessments for the Common Expense Assessment for 2020 for each Lot in Salters Haven shall be approximately one thousand six hundred and seven and/14/100 Dollars ($1,607.14) per Lot. This is also the amount of the Working Capital Assessment that will be assessed at Closing for each new Purchaser of a Lot from the Developer. The current level of Owner assessments, together with the Developer’s planned contribution, is anticipated to meet the expected operating expenses, including maintenance and replacement costs, of the Association. However, if the assessments are insufficient to meet the Association expenses, the assessments may be adjusted and increased as provided in the Declaration. The Developer has not entered into a management agreement with a management company to manage the affairs of the Association while the Developer is in control; however, it is likely that the Developer will do so in the future. The costs of such management services shall be a part of the common expense. Salters Haven at Lea Marina ISLRP: 40043

32

Dated: January 6, 2020


TAXES Upon being conveyed a Lot, you will be required to pay real estate taxes to Pender County. Taxes are assessed through the Pender County Tax Collection Office located in Burgaw, North Carolina. Current taxes for an unimproved lot are assessed at .74% of the assessed value of the Lot. Otherwise, Property Taxes are assessed at a rate of 0.645 and there is an additional Hampstead Fire District Tax of 0.095 and an EMS Tax of 0.0925. There are additional fees charged for Solid Waste. Once you determine your home's assessed value and the tax rate your local government imposes, multiply your home's assessed value by the tax rate to estimate your property tax bill for the year. VIOLATIONS AND LITIGATIONS There are currently no violations and no pending litigation affecting the Developer or the Subdivision. RESALE OR EXCHANGE PROGRAM For as long as the Developer, its successors or assigns, or an Approved Builder, owns any land within the Subdivision, no “For Sale� signs shall be allowed on any Lot. Developer, its successors or assigns, and any Approved Builder, have the absolute right to remove any such signage, and shall not be liable to the sign owner or the Lot Owner for trespass, conversion, destruction, or any other legal recourse. Such prohibition may impact your ability to resell your Lot or your Home. We do not have any provision to allow you to exchange one lot for another. EQUAL OPPORTUNITY IN LOT SALES We are in compliance with Title VIII of the Civil rights Act of 1968. We have not, and will not, discriminate against you because of your race, color, religion, sex, national origin, familial status, or any handicap. Furthermore, we will not indicate a preference for, or a rejection of, any particular group in our lot marketing and advertising, rendering of lot services, requiring terms and conditions on lot sales, or in any other manner.

Salters Haven at Lea Marina ISLRP: 40043

33

Dated: January 6, 2020


LISTING OF LOTS Phase

Total Number of Lots

Phase 1 Phase 2

119 189

TOTAL LOTS IN SUBDIVISION

308

Salters Haven at Lea Marina ISLRP: 40043

34

Lot Numbers

Pender County Subdivision Plat Book/Page NA NA

Dated: January 6, 2020


COST SHEET In addition to the purchase price of your Lot, there are other expenditures which must be made. Listed below are the major costs. There may be other fees for use of the recreational facilities. All costs are subject to change. Sales Price Cash Price of Lot* *Developer is not offering financing. Estimated Closing Fee TOTAL

$ $

350.00 $

Estimated One-Time Charges 1. Water Connection Fee $3,729.00 2. Sewer Connection Fee $4,200.00 3. Building Permit $1,300.00estimated 4. Est. Cost to Ext. Utilities to Dwelling $Varies with Distance 5. ARC Submittal $250.00 6. POA Working Capital Contribution $1,607.14 7. Other: $ 8. $ Total of estimated sales price and one-time $ charges: Estimated Annual Charges (exclusive of utility use fees) 1. 2.

Taxes – Average Unimproved Lot Association Dues & Assessments (2020 – est.)

$ $1607.14

The information contained in this Property Report is an accurate description of our subdivision and development plans. WLI Investments, LLC By:

Authorized Signatory

Salters Haven at Lea Marina ISLRP: 40043

35

Dated: January 6, 2020


Receipt, Agent Certification and Cancellation Page PURCHASER RECEIPT - IMPORTANT: READ CAREFULLY Name of Subdivision: ILSRP NUMBER: Date of Report:

Salters Haven at Lea Marina 40043 January 6, 2020

We must give you a copy of this Property Report and give you an opportunity to read it before you sign any contract or agreement. By signing this receipt, you acknowledge that you have received a copy of our Property Report. Received By:

Date:

Address: City:

State:

Zip:

If any representations are made to you which are contrary to those in this report, please notify the: Bureau of Consumer Financial Protection 1700 G Street NW Washington, DC 20552 AGENT CERTIFICATION I certify that I have made no representations to the person(s) receiving this Property Report which are contrary to the information contained in this Property Report. Lot

Phase

Section

Name of Salesperson Signature

Date PURCHASER CANCELLATION

If you are entitled to cancel your purchase contract, and wish to do so, you may cancel by personal notice, or in writing. If you cancel in person or by telephone, it is recommended that you immediately confirm the cancellation by certified mail. You may use the form below. Name of Subdivision

Salters Haven at Lea Marina

Date of Contract This will confirm that I/we wish to cancel our purchase contract. Purchaser(s) Signature

Salters Haven at Lea Marina ISLRP: 40043

Date 36

Dated: January 6, 2020


Receipt, Agent Certification and Cancellation Page PURCHASER RECEIPT - IMPORTANT: READ CAREFULLY Name of Subdivision: ILSRP NUMBER: Date of Report:

Salters Haven at Lea Marina 40043 January 6, 2020

We must give you a copy of this Property Report and give you an opportunity to read it before you sign any contract or agreement. By signing this receipt, you acknowledge that you have received a copy of our Property Report. Received By:

Date:

Address: City:

State:

Zip:

If any representations are made to you which are contrary to those in this report, please notify the: Bureau of Consumer Financial Protection 1700 G Street NW Washington, DC 20552 AGENT CERTIFICATION I certify that I have made no representations to the person(s) receiving this Property Report which are contrary to the information contained in this Property Report. Lot

Phase

Section

Name of Salesperson Signature

Date PURCHASER CANCELLATION

If you are entitled to cancel your purchase contract, and wish to do so, you may cancel by personal notice, or in writing. If you cancel in person or by telephone, it is recommended that you immediately confirm the cancellation by certified mail. You may use the form below. Name of Subdivision

Salters Haven at Lea Marina

Date of Contract This will confirm that I/we wish to cancel our purchase contract. Purchaser(s) Signature

Salters Haven at Lea Marina ISLRP: 40043

Date 37

Dated: January 6, 2020



AGREEMENT TO SELL AND PURCHASE SALTERS HAVEN AT LEA MARINA HOMESITE STATE OF NORTH CAROLINA

COUNTY OF PENDER

THIS AGREEMENT TO SELL AND PURCHASE SALTERS HAVEN AT LEA MARINA HOMESITE (this “Agreement”) is made and entered into this ______ day of 2020 (the “Effective Date”) by and between WLI INVESTMENTS, LLC, a North Carolina limited liability company (“Seller”), and the undersigned Buyer. Buyer desires to purchase and Seller desires to sell certain real property within Salters Haven and therefore Seller and Buyer, for and in consideration of the mutual promises and covenants herein contained, and other good and valuable consideration, do hereby agree as follows: 1.

BASIC TERMS AND INFORMATION: (a) Seller: WLI INVESTMENTS, LLC, a North Carolina limited liability company Address: 60 Gregory Road, Suite 1, Belville, North Carolina 28451 Phone/Fax: _______________ Email: ____________________ (b)

(c)

Buyer: _____________________________________________________________ Address: _____________________________________________________________ Phone/Fax: ___________________________________________________________ Homesite Description: Phase ____ Lot _________ , of Salters Haven as shown on the map attached as Exhibit A (the “Homesite”).

(d)

Purchase Price:

$_______________________________

Less the Earnest Money Deposit, as described in Section 2: $_______________________________ Balance of Purchase Price due at Closing:

(e)

$_______________________________

Closing Date: On or before ____________________, 20________ (subject to Section 3(e).

(f) Financing: NOTE: This Section 1(f) is only applicable if this box ! is checked, otherwise this Section 1(f) shall not apply and Buyer’s obligations under this Agreement shall not be subject to any financing contingency. On or before _______________, 20___ (the “Final Contingency Date”), Buyer must be able to obtain a firm commitment, effective through the date of closing, for a " Fixed Rate loan, " Interest-Only loan or "Adjustable Rate loan secured by a first deed of trust on the Homesite in the principal amount of % of the Purchase Price, with an interest rate not to exceed % per annum. Buyer agrees to use his/her best efforts to secure such commitment, including, without limitation, submitting to the lender of its choice a mortgage loan application and such other information as requested by such lender, within seven (7) calendar days from the Effective Date, and to advise Seller immediately upon receipt of the lender's decision. In the event no notice is received by Seller prior to the Final Contingency Date, the financing contingency shall be deemed waived by Buyer. Should Buyer fail to qualify for financing as set forth herein then Buyer may terminate this Agreement whereupon the Deposit shall be returned to Buyer and neither party shall have any further liability to the other. 2. EARNEST MONEY DEPOSIT: The Earnest Money Deposit (the “Deposit”) described in Section 1(d) shall be paid by cash or check to Block, Crouch, Keeter, Behm, Sayed, LLP Trust Escrow (the "Escrow Agent") at, 310 North Front Street, Suite 200 Wilmington, NC 28401 as of the Effective Date. If the Deposit has not been received by the Escrow Agent as of the Effective Date, Buyer shall deliver the Deposit within three (3) business days to Seller or Seller shall have the right to terminate this Agreement by written notice to Buyer. The Escrow Agent shall place the Deposit in a non-interest bearing account. The Deposit shall be applied as provided in this Agreement. If Buyer provides a check for a Deposit and Seller or Escrow Agent is then required to return such Deposit pursuant to this Agreement, Seller or Escrow Agent shall not be required to return such Deposit until the check has cleared the account on which the check was written. In the event any Deposit check is dishonored by the bank upon which it is drawn, Seller shall promptly give oral or written notice to Buyer, and Buyer shall have three (3) banking days to deliver good funds to Seller. In the event Buyer does not timely deliver good funds, Seller shall have the right to terminate this Agreement upon written notice to Buyer. Buyer and Seller hereby agree to fully indemnify Escrow Agent for all of its expenses, costs, and reasonable attorney’s fees incurred in connection with any judicial, non-judicial or administrative action, hearing or process utilized in connection with the Deposit (but not due to the malfeasance and or negligence of Escrow Agent), and such costs, expenses and fees may be deducted from the Deposit. The Deposit shall be held in escrow by Escrow Agent until Closing, at which time it will be credited to Buyer, or until this Agreement is otherwise terminated. In the event: (1) this offer is not accepted; or (2) a condition the Agreement is not satisfied, then the Deposit shall be refunded to Buyer. In the event of breach of this Agreement by Seller, the Deposit shall be refunded to Buyer upon Buyer’s request, but such return shall not affect any other remedies available to Buyer for such breach. In the event of breach of this Agreement by Buyer, the Deposit shall be paid to Seller. The payment of the Deposit shall not affect the remedies otherwise available under Paragraph 8 of this Agreement. In the event of a dispute between Seller and Buyer over the disposition of the Deposit held in escrow, Escrow Agent hereby agrees to retain the Deposit in the Escrow Agent’s trust or escrow account until Escrow Agent has obtained a written release from the parties consenting to its disposition or until disbursement is ordered by a court of competent jurisdiction. Alternatively, if an attorney licensed to practice law in North Carolina ("Attorney") is holding the Deposit, the Attorney may deposit the disputed monies with the appropriate clerk of court in accordance with the provisions of N.C.G.S. §93A-12. 3. CONDITIONS: (a) There must be no restrictions, easements, zoning, or other governmental regulations that will prevent the use of the Homesite for residential purposes; provided, however, Seller shall not be liable for any changes in governmental regulations imposed after the Effective Date and prior to Closing, which changes are beyond Seller’s reasonable control. (b) The Homesite must be in substantially the same condition at Closing as on the Effective Date. (c) Seller shall deliver title free of all encumbrances except restrictive covenants pertaining to the Homesite, rights of way, easements and agreements for public and private utilities, other services and other matters of public record, and ad valorem taxes for the current year, which shall be prorated on a calendar year basis (the “Permitted Exceptions”). It is expressly agreed by Buyer that



ON THE WATERFRONT IN HAMPSTEAD, NC

( 9 1 0 ) 8 2 1 .1 8 1 1

SALTERSHAVENNC .COM

/saltershavennc Property marketed by Destination Realty Corporation, LLC

Salters Haven is a new community in the formative stages of development by WLI Investment LLC. Current plans are conceptual only. All photos, renderings and illustrations of property, homes, scenes and amenities, including the proposed Marina, are for illustrative purposes only and the Developer reserves the right to modify or withdraw any or all of the same in its sole discretion without prior notice. Photos of amenities of Helms Port contained in this brochure are being used for conceptual purposes as they were built by an affiliated developer. Actual amenities at Salters Haven may differ from those shown and views may vary. Purchasers will be subject to mandatory membership in a governing property owners’ association, which will require the payment of dues and assessments that are separate and apart of any purchase price paid for a Residence. This is not an offering of property in any jurisdiction where prior registration is required and no material will knowingly be disseminated into such jurisdictions unless the Developer has met such requirements. Void where prohibited. NJ Purchasers: This advertisement is a solicitation for the sale of lots in Salters Haven. N.J. Reg. No. 20-16-0003. NY Purchasers: THE COMPLETE OFFERING TERMS ARE IN A CPS-12 APPLICATION, AS AMENDED FROM TIME TO TIME, AVAILABLE FROM THE OFFEROR. FILE NO. CP20-0001. Obtain the Property Report required by Federal law and read it before signing anything. No Federal agency has judged the merits or value, if any, of this property. Copyright © WLI Investment LLC – All Rights Reserved. All square footage is approximate and can vary depending on site location, plan amendments, plan modifications and options selected. Plans DESTINATION: SALTERS HAVEN 40 to are subject change without notice. Maps are for illustrative purposes only and are unsuitable for legal, engineering, or surveying purposes.


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