Community Charter

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SUPERIOR COURT BARROW COUNTY, GA. Prepared by / upon recording please return to: 03 DEC 11 AM 8:50 Jo Anne P. Stubblefield

HYATT & STUBBLEFIELD, P.C. GLORIA M. WALL, CLERK 1200 Peachtree Center South Tower

225 Peachtree Street, N.E.

Atlanta, Georgia 30303

COMMUNITY CHARTER

FOR

THE GEORGIA CLUB

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PREAMBLE.

DECLARATION. . 1 PART ONE: INTRODUCTION TO THE COMMUNITY .. 2 Chapter 1 Governing Documents.. .. 3

1.1. Scope and Applicability.. .. 3 1.2. Additional Covenants and Restrictions .. 3 1.3. Conflicts and Ambiguities. 4 1.4. Definitions. 4 1.5. Interpretation of Certain References

Chapter 2 Community Administration

2.1. The Founder _ 6 2.2. The Association and its Board.. ... 7 2.3. The Owners. . 7 2.4. Builders. .. 7 2.5. Additional Associations.

2.6. Mortgagees.

Chapter 3 Community Structure and Organization. . 9 3.1. Designations of Properties Comprising the Community. . 9 3.2. Service Areas.

3.3. Neighborhoods. .. 10 Chapter 4 Association Membership and Voting Rights. .. 11 4.1. Membership. ... 11 4.2. Voting. ... 11 PART TWO: COMMUNITY STANDARDS. .. 13

Chapter 5 Architecture, Landscaping, and Aesthetic Standards. .. 14 5.1. General.. 14 5.2. Design Review Authority.. 14 5.3. Guidelines and Procedures.

5.4. No Waiver of Future Approvals..

5.5. Variances.

5.6. Limitation of Liability.

5.7. Certificate of Compliance 17 Chapter 6 Maintenance, Repair, and Replacement 18 6.1. Maintenance by Owners... . 18 6.2 Maintenance by Additional Associations.

6.3. Responsibility for Repair and Replacement.

6.4. Maintenance and Repair of Party Walls and Similar Structures.

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Chapter 7 Use and Conduct.. ... 20

7.1. Use, Occupancy, and Transfer of Interests in Units. .. 20 7.2. Rulemaking Authority and Procedures.. 22 7.3. Protection of Owners and Others... • 23 7.4. Owners' Acknowledgment and Notice to Purchasers. . 24 Chapter 8 Compliance and Enforcement. .. 25

8.1. Compliance. . ....25 8.2. Remedies for Non-Compliance.. .. 25 8.3. Board Decision to Pursue Enforcement Action. .. 26 8.4. Attorneys Fees and Costs.. .. 27 8.5. Enforcement of Ordinances. .... ..27 PART THREE: ASSOCIATION OPERATIONS. • 28

Chapter 9 Property Management .... .. 29

9.1. Acceptance and Control of Association Property .. 29 9.2. Maintenance of Area of Common Responsibility 29 9.3. Discontinuation of Operation.. . 30 9.4. Restoring Damaged Improvements. 30 9.5. Relationships with Other Properties .. 31 Chapter 10 Provision of Services.. .. 32

10.1. Provision of Services to Units. .. 32 10.2. Provision of Services to Service Areas. ..32 10.3. Community Technology. ... 32 Chapter 11 Association Insurance.. ..34

11.1. Required Coverages. ..34 11.2. Deductibles...... ... 35 11.3. Policy Requirements.. ... 35 11.4. Insurance Premiums. .. 36 Chapter 12 Association Finances.. .. 37

12.1. Association Expenses. .. 37 12.2. Budgeting for and Allocating Association Expenses. ..37 12.3. Special Assessments ... 39 12.4. Specific Assessments... ... 39 12.5. Authority to Assess Owners; Time of Payment. ... 39 12.6. Obligation for Assessments. .. 40 12.7. Lien for Assessments. .41 12.8. Exempt Property... . 42 12.9. Capitalization of Association.

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12.10. Use and Consumption Fees. ..... 42 12.11 Community Enhancement Fee. 42 PART FOUR: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY .. .. 45

Chapter 13 Easements... 46

13.1. Easements in Common Area.. 46 13.2. Easements of Encroachment. .... . 47 13.3. Easements for Utilities, Etc.. … 47 13.4. Easements to Serve Additional Property 47 13.5. Easements for Maintenance, Emergency, and Enforcement. .. 48 13.6. Easements for Lake and Pond Maintenance and Flood Water. . 48 13.7. Easements Related to Golf Course , 48 13.8. Easements Over Private Roadways. .49 Chapter 14 Private Amenities.. .. 51

14.1. General... ...51 14.2. Design Control... ..51 14.3. Limitations on Amendments. .. 52 14.4. Jurisdiction and Cooperation ... 52 Chapter 15 Disclosures and Waivers . .. 53

15.1. Safety and Security.. .. 53 15.2. Changes in Master Plan .. 53 15.3. View Impairment. .. ... 53 15.4. Notices and Disclaimers as to Community Systems and Services .. 54 15.5. Radio and Telecommunication Towers .. 54 15.6. Waterfront Lots. .. 54 15.7. Existence of Bedrock. ... 54 15.8. Use of Nonpotable Water for Irrigation. .. 54 Chapter 16 Rights of Lenders. .. 55

16.1. Notices of Action ..55 16.2. Special FHLMC Provision ... 55 16.3. Other Provisions for First Lien Holders ... 56 16.4. Amendments to Documents ... 56 16.5, No Priority.. ... 57 16.6. Notice to Association ... 57 16.7. Failure of Mortgagee to Respond. ... 57 16.8. Construction of Chapter 16. .. 57

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PART FIVE: COMMUNITY DEVELOPMENT .. 58

Chapter 17 Expansion of the Community. ... 59

17.1. Expansion by Founder. .. 59 17.2. Expansion by the Association. .. 59 17.3. Additional Covenants and Easements. ... 59 17.4. Effect of Filing a Supplement..... ...59 Chapter 18 Additional Rights Reserved to the Founder. … 61

18.1. Special Development Rights.... ...61 18.2. Marketing and Sales Activities.... ... 61 18.3. Access for Development Purposes . 61 18.4. Right to Approve Changes in Community Standards. .61 18.5. Additional Covenants and Restrictions .62 18.6. Exclusive Rights to Use Name of Development. . 02 18.7. Community Systems.. 62 18.8. Easement to Inspect and Right to Correct... 62 18.9. Right to Notice of Design or Construction Claims. 62 18.10. Right to Transfer or Assign the Founder's Rights. .. 63 18.11. Termination of Rights.. . 63 PART SIX: PROCEDURES FOR AND LIMITATIONS ON CERTAIN ACTIONS 64

Chapter 19 Dispute Resolution and Limitation on Litigation. .. 65

19.1. Agreement to Encourage Resolution of Disputes Without Litigation. ... 65 19.2. Dispute Resolution Procedures. .. .. 66 19.3. Initiation of Litigation by Association ... 67 Chapter 20 Changes in the Common Area .. 68

20.1. Assignment and Reassignment of Limited Common Area. ... 68 20.2. Condemnation. ... 68 20.3. Partition.. .. 68 20.4. Transfer, Mortgaging, or Dedication of Common Area. ... 69 20.5. Expansion of Common Area. ... 69 Chapter 21 Termination and Amendment of Community Charter .. 70

21.1. Term and Termination.. .. 70 21.2. Amendment.. ... 70

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BK0884PG0058 EK: 905 PG=12 - TABLE OF EXHIBITS -

EXHIBIT TIILE PAGE FIRST

MENTIONED A Initial Property 1

Expansion Property 6

C Initial Rules

D By-Laws of The Georgia Club Community Association, Inc. 3

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Additional Association, 7 Improvements, 14

Approval, 4 Lease and Leasing, 20

Architectural Guidelines, 3, 14 Limited Common Area, 9

Area of Common Responsibility, 9 Master Plan, 6

Articles of Incorporation, 3 Members, 11

Association, 1 Mortgage, 8

Base Assessment, 38 Mortgagee, 8

Board, 6 Neighborhood, 7

Bound Parties, 65 Neighborhoods, 10

Notice, 66

occupancy, 21

Owner, 7

Claim, 65 Owner Membership, 11

Claimant, 66 Person or Persons, 4

Common Area, 9 Private Amenities, 51

Common Expenses, 37 Recorded, 4

Community, 1 Respondent, 66

Community Systems, 33 Reviewer, 15

Community-Wide Standard, 4 Rules, 3

Service Area Assessment, 38

Design Review Committee or DRC, 15 Service Area Committee, 10

Development and Sale Period, 6 Service Area Expenses, 37

Discretion, 4 Service Areas, 9

Eligible Holder, 55 Special Assessments, 39

Founder, 1 Specific Assessments, 39

Founder Affiliate, 6 Supplement, 3

Founder Control Period, 6 Units, 9

Founder Membership, 11 Voting Delegate, 11

Governing Documents, 3

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BK0884PG0060 EK :905 PG: 14 COMMUNITY CHARTER

FOR

THE GEORGIA CLUB

PREAMBLE

The Georgia Club is a planned community located in Barrow and Oconee County, Georgia. This Com munity Charter ("Charter") constitutes the instrument commonly known as a declaration establishing The Georgia Club as a planned community. This Charter creates a goverance structure and a flexible system of standards and procedures for the development, expansion, administration, maintenance, and preservation of various residential properties and common areas within The Georgia Club.

An integral part of the plan for operation and administration of The Georgia Club is The Georgia Club Community Association, Inc., which has been incorporated pursuant to the Georgia Nonprofit Corporation Act to own, operate, and/or maintain various common areas and community improvements and to administer and enforce this Charter and the other Governing Documents referenced in this Charter.

This document does not, and is not intended to, create a condominium under the Georgia Condominium Act, O.C.G.A. §44.3-70, et seq., nor does it submit the community of The Georgia Club to the terms of the Georgia Property Owners Association Act, O.C.G.A. $44-3-220, et seq.

DECLARATION

Barber Creek Land Company, a Georgia limited liability limited partnership, its successors and assigns (the "Founder"), by executing and recording this Charter, declares that the property described in Exhibit "A," and any additional property made subject to this Charter by supplement or amendment, shall constitute the planned community of The Georgia Club (the "Community"). This Charter shall encumber the title to such property, shall govern the development and use of such property, and shall be binding upon the Founder and the future owners of any portion of such property, their respective heirs, successors, successors-in-title, and assigns, and any other person or entity that now or hereafter holds any legal, equitable, or beneficial interest in any portion of such property. This Charter shall also be binding upon The Georgia Club Community Association, Inc., its successors and assigns (the "Association").

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PART ONE: INTRODUCTION TO THE COMMUNITY

In the South, the breeze blows softer... neighbors are friendlier, nosier, and more talkative. [...] Our way of thinking is different, as are our ways of seeing, laughing, singing, eating, meeting and parting. [...] Nothing about us is quite the same as in the country to the north and west.

• Charles Kuralt in "Southerners: Portrait of a People"

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BK0884PG006îš EK: 905 PG=16 Chapter 1

Governing Documents

A community is guided and governed by certain Documents," include this Charter and the other principles that each owner and resident, by choosing to documents described in Table 1.1, as they may be own property or reside in the community, agrees to amended. All owners and occupants, as well as uphold. Those principles are set forth in the commutheir tenants, guests, and invitees, are required to nity's governing documents, which bind the community comply with the Governing Documents. together, give it structure, and provide guidance to all

who participate in its growth and evolution. 1.2: Additional Covenants and Restrictions. 1.1. Scope and Applicability. The owner of any property within the Community may impose covenants on such property The Community has been established and is in addition to those set forth in the Governing administered pursuant to various documents that Documents, with such approval as may be rehave a legal and binding effect on all owners and quired pursuant to Chapter 18. If the provisions occupants of property in the Community, as well of any such additional covenants are more reas on anyone else that may now or in the future strictive than the provisions of this Charter, the have an interest in any portion of the property more restrictive provisions shall control. The comprising the Community. Such documents, Association shall have standing and the power, referred to in this Charter as the "Governing but not the obligation, to enforce any such addi-

GOVERNING DOCUMENTS

Community Charter: this Community Charter for The Georgia Club, which creates obligations that (recorded) are binding upon the Association and all present and future owners of property in the Community

Supplement: a recorded supplement to this Charter, which subinits additional property to (recorded) this Charter, creates easements over property described in such Supplement, imposes additional obligations or restrictions on such property, designates special areas as described in Chapter 3, or any of the foregoing

Articles of Incorporation: the Articles of Incorporation of The Georgia Club Community Association, (filed with Secretary of State) Inc., as they may be amended, which establish the Association as a nonprofit corporation under Georgia law

By-Laws: the By-Laws of The Georgia Club Community Association, Inc., adopted by its (attached as Exhibit "D") Board of Directors, as they may be amended, which govern the Association's internal affairs, such as voting, elections, meetings, etc. A copy of the By-Laws is attached as Exhibit "D"

Architectural Guidelines: the design standards and architectural and aesthetics guidelines adopted pur- (Founder adopts) suant to Chapter 5, as they may be amended, which govern new construction and modifications to property within the Community, including structures, landscaping, and other items

Rules: the rules of the Association adopted pursuant to Chapter 7, which regulate use (initial set attached as Exhibit "C") of property, activities, and conduct within the Community

Board Resolutions: the resolutions which the Association's Board of Directors adopts to establish (Board adopts) rules, policies, and procedures for internal governance and Association activities and to regulate the operation and use of property which the Association owns or controls

Table 1.1 Governing Documents

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EK: 905 PG:17 tional covenants. 1.5. Interpretation of Certain References. 1.3. Conflicts and Ambiguities. Consent or Approval. All references in the

Governing Documents to "consent" or "approval" If there are conflicts between any of the shall refer to permission or approval which, Governing Documents and Georgia law, Georgia unless otherwise expressly qualified in the spelaw shall control. If there are conflicts between cific provision, may be granted or withheld in the or among any of the Governing Documents, discretion of the Person whose consent or apthen the Charter, the Articles, and the By-Laws proval is required.

(in that order) shall control. If there is a conflict

between the Governing Documents and any adDiscretion and Determination. All referditional covenants recorded on any property ences in the Governing Documents to "discrewithin the Community (or the rules or policies tion" or to the right to "determine" any matter adopted pursuant to any such additional coveshall mean the sole and absolute power or right nants), the Governing Documents shall control. to decide or act. Unless otherwise expressly limited in the Governing Documents or by law, any The Governing Documents use diagrams, taone authorized in the Governing Documents to bles, and keynotes to illustrate concepts and asexercise its discretion or make a determination sist the reader. If there is a conflict between any may do so without regard to the reasonableness diagram and the text of the Governing Docuof, and without the necessity of justifying, the ments, the text shall control. decision, determination, action, or inaction. Space has been set aside throughout this Person. References in the Governing Charter to allow the reader to make notes. Any Documents to a "Person" or "Persons" shall refer such notes are not part of this Charter and have to an individual, a corporation, a partnership, a no legal or binding effect. limited liability company, or any other legal entity.

If any court determines that any provision of

this Charter is invalid, or invalid as applied in a Recording. All references in the Governing particular instance, such determination shall not Documents to a "recorded" legal instrument, or affect the validity of other provisions or applicato recordation or the recording of a legal instrutions of such provision in other instances. ment, shall refer to an instrument filed or recorded, or the filing or recording of a legal inThe Association's board of directors may, by strument, in the Office of the Clerk of Superior resolution, resolve any ambiguities in the GovCourt for Barrow or Oconee County, Georgia, as erning Documents, and any reasonable interpreappropriate, or such other place designated as the tation of an ambiguous provision shall be deterofficial location for filing documents affecting minative. title to real estate in Barrow or Oconee County, as applicable, in order to make them a matter of 1.4. Definitions. public record.

Capitalized terms used in the Governing

Documents have the meaning described in the Community-Wide Standard. Where the paragraph where they first appear in bold print. Governing Documents require compliance with An index to defined terms may be found at the the "Community-Wide Standard," the standard beginning of this Charter. All other terms used to be applied is the highest of: (a) the standard of in the Governing Documents have their usual, use, conduct, architecture, landscaping, or aescommonly accepted definitions. thetic matters generally prevailing in the Community, or (b) the minimum standards described in this Charter, the Architectural Guidelines, the

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Wide Standard may contain objective elements,

such as specific maintenance requirements, and

subjective elements, such as matters subject to

the discretion of the Board or the Reviewer (as

defined in Chapter 5). The Community-Wide

Standard may or may not be set out in writing.

The Founder initially shall establish such stan-

dard; however, the Community-Wide Standard

may evolve as development progresses and as the

Community matures.

NOTES

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Chapter 2

Community Administration

Vibrant communities depend upon all of their that is an owner, a member, a partner, or a sharestakeholders working together to uphold community holder of the Founder.

standards and achieve the vision and goals for the

community. The Founder, the Association, the owners, The Founder has reserved other rights that the builders, and others have a role in the functioning may be exercised during the "Founder Control of the community and in helping to fulfill that vision. Period," which is the period of time that the This Chapter identifies these stakeholders and describes Founder is entitled to appoint a majority of the their roles in administering the Community. members of the Association's board of directors

(Board). It begins on the date of the Associa2.1. The Founder. tion's incorporation and terminates upon the The Founder has established the vision for first of the following to occur:

the Community and, through the Governing (a) when 75% of the total number of Units Documents, has set forth the founding principles (as defined in Section 3.1) permitted by applicathat will guide the Community during the initial ble zoning for the property described in the Masperiod of development and sale and thereafter. ter Plan have certificates of occupancy issued The Founder's proposed plan for development of thereon and have been conveyed to persons the Community is described in the master plan other than a Founder Affiliate or a builder holdapproved by the local governments having jurising title for purposes of construction and resale; diction over the applicable portions of the

Community, as it may be amended, which en- (b) December 31, 2027; or

compasses all of the property described in Ex-

hibit "A" and all or a portion of the property de- (c) when, in its discretion, the Founder volscribed in Exhibit "B" of this Charter (the "Masuntarily and expressly surrenders such right in a ter Plan"). However, the Founder is not oblirecorded instrument.

gated to subiit property shown on the Master

Plan to this Charter. In addition, the Founder The Founder has certain approval rights for a may submit property to this Charter that is not limited period as provided in the By-Laws after shown on the Master Plan. the termination of the Founder Control Period.

The Founder has reserved various rights in The Founder may assign its status and rights the Governing Documents with respect to develas the Founder under the Governing Documents opment and administration of the Community. to any Founder Affiliate or any person who takes The Founder may exercise certain of these rights title to any portion of the property described in throughout the "Development and Sale Period," Exhibits "A" or "B" for the purpose of developwhich is the period of time during which the ment and/or sale. Such assignment shall be Founder or any "Founder Affiliate" owns real made only in a recorded instrument signed by property in the Community or has an unexpired both parties.

option to expand the Community pursuant to

Chapter 17. A "Founder Affiliate" is any Person 2.2. The Association and its Board.

that controls, is controlled by, or is under com-

mon control with the Founder, and any Person The Founder has established the Association as the primary entity responsible for administering the Community in accordance with the Gov-

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EK:905 PG:20 erning Documents. On most matters, the Asso ment) is not considered an "Owner." If a Unit is ciation acts through the Board, which is selected sold under a recorded contract of sale and the as provided in Section 2.1 and the By-Laws. contract specifically so states, the purchaser However, in some instances the Governing (rather than the holder of fee simple title) will be Documents or applicable law limit the Board's considered the Owner. If a Unit has more than ability to act without the approval of the Associaone Owner, all co-Owners are jointly and severtion's members. Unless the Governing Docually obligated to perform the responsibilities of ments or Georgia law specifically provide otherthe Owner under the Governing Documents. wise, the Board may exercise the Association's

rights and powers without a vote of the memberEvery Owner has a responsibility to comply with the Governing Documents and uphold the community standards described in Part Two of The Association may exercise all rights and this Charter. Each Owner also has an opportupowers that the Governing Documents and nity to participate in the administration of the Georgia expressly grant to it, as well as any rights Community through membership in the Associaand powers that may reasonably be implied untion and through service to the Community in der the Governing Documents. It may also take various committee and leadership roles, as deany action reasonably necessary to effectuate any scribed in Chapters 3 and 4 and in the By-Laws. such right or privilege

2.4. Builders.

The Board may institute, defend, settle, or Much of the responsibility and credit for intervene on behalf of the Association in mediahelping to create the Community rests with those tion, binding or non-binding arbitration, litigaPersons who purchase one or more unimproved tion, or administrative proceedings in matters lots or parcels of land within the Community for pertaining to the Area of Common Responsibilfurther subdivision or development and resale in ity, enforcement of the Governing Documents, the ordinary course of their business (Builders). or any other civil claim or action. However, the The Builders have the same privileges and reBoard has no legal duty to institute litigation or sponsibilities as Owners during the time that any other proceeding on behalf of or in the name they own Units for construction and resale, inof the Association or its members. cluding the privileges of membership in the AsIn exercising the Association's rights and

powers, making decisions on the Association's 2.5. Additional Associations.

behalf (including, without limitation, deciding

whether to file a lawsuit or take other legal action Portions of the Community may have special under any circumstances) and conducting the requirements that lead the Founder or the Association's affairs, Board members and the AsBuilder to establish a separate homeowners assosociation's officers are required to comply with, ciation ("Additional Association") to administer and shall be judged by, the standards set forth in additional covenants applicable to that particular the By-Laws. area ("Neighborhood'). However, nothing in this Charter requires the creation of an Addi2.3. The Owners. tional Association, and the jurisdiction of any Each Person that holds record title to a Unit, Additional Association shall be subordinate to as defined in Chapter 3, is referred to in the that of the Association.

Governing Documents as an "Owner." However,

a Person who holds title merely as security for the Additional Associations, if any, are responsiperformance of an obligation (such as a lender ble for administering the additional covenants holding a mortgage or similar security instruapplicable to the property within their jurisdic-

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Community-Wide Standard, any property which

they own or which their respective covenants

designate as being for the common benefit of

their members.

2.6. Mortgagees.

If a Unit is made subject to a mortgage or

other form of security instrument affecting title

to a Unit ("Mortgage"), then the holder or bene-

ficiary of that Mortgage ("Mortgagee") also has an

interest in the administration of the Community.

The Governing Documents contain various pro-

visions for the protection of Mortgagees, includ-

ing those set forth in Chapter 16.

NOTES

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Chapter 3

Community Structure and Organization

The Community consists of parcels of property, reLimited Common Area. Certain portions of ferred to as Units, which are intended for the exclusive the Common Area may be designated as "Limuse of the Owner and other occupants of such parcel, ited Common Area" and assigned for the excluas well as property that is intended for the common use sive use or primary benefit of Units in specified of some or all of the residents and public property. portions of the Community. Limited Common Units may be assigned to Service Areas to permit the Areas might include such things as entry features, Association to provide special services and benefits to private streets, and recreational facilities, among particular areas of the Community. other things, that benefit only a portion of the

Community.

3.1. Designations of Properties Comprising

the Community. The Founder may designate property as LimUnits. The Governing Documents refer to ited Common Area and assign it to particular the homes and home sites in the Community as Units on Exhibit "A" to this Charter, in the Sup- "Units." A Unit is a portion of the Community plement by which the property is submitted to which is depicted as a separately identified lot, the terms of this Charter, or in the deed conveyparcel, or airspace on a recorded subdivision plat ing such property to the Association.

or in a recorded condominium instrument and

which is zoned or otherwise intended for develArea of Common Responsibility. All of the opment, use, and occupancy as an attached or properties and facilities for which the Association detached residence for a single family. The term has responsibility under the Governing Docu- "Unit" refers to the land, if any, which is part of ments, or for which the Association otherwise the Unit, as well as to any structures and other agrees to assume responsibility, are collectively improvements on the Unit. A parcel of land unreferred to in the Governing Documents as the der single ownership and intended for construc- "Area of Common Responsibility," regardless of tion of more than one residence is considered a who owns them. The Area of Common Responsingle Unit until a subdivision map, plat, or consibility includes all of the Common Area and dominium instrument is recorded, subdividing it may also include Units or portions of Units and into more than one Unit. The subdivision and property dedicated to the public, such as public combination of Units is subject to the provisions rights-of-way. The initial Area of Common Reof Section 7.1(e). sponsibility is described in Chapter 9.

Common Area. Any property and facilities Other Properties. In addition to the above, that the Association owns or in which it otherthe Community may include property dedicated wise holds possessory or use rights for the comto the public, property owned or controlled by an mon use or benefit of more than one Unit is reAdditional Association for the common use and ferred to as "Common Area." The Common enjoyment of its members, and Private Amenities Area also includes any property that the Associaas described in Chapter 14.

tion holds under a lease and any easements in

favor of the Association. The Founder and oth3.2. Service Areas.

ers may establish and convey Common Area to Units may be part of one or more "Service the Association as provided in Section 9.1. Areas in which the Units share Limited Common Areas or receive special benefits or services from the Association that the Association does

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EK: 905 PG=23 not provide to all Units within the Community. fying designation) either in Exhibit "A" or in a A Unit may be assigned to more than one Service Supplement submitting the Unit to the terms of Area, depending on the number and types of this Charter. During the Development and Sale special benefits or services it receives. A Service Period, the Founder may unilaterally record a Area may be comprised of Units of more than Supplement, or an amendment to this Charter or one housing type and may include Units that are any previously recorded Supplement, to designate not contiguous. or change Neighborhood boundaries. Thereafter, the Board may amend this Charter or any The Founder may initially designate Service Supplement to re-designate Neighborhood Areas (by name or other identifying designation) boundaries; however, the Board may not comand assigri Units to a particular Service Area eibine two or more existing Neighborhoods withther in Exhibit "A" or in a Supplement. During out the consent of Owners of a majority of the the Development and Sale Period, the Founder Units in the affected Neighborhoods.

may unilaterally amend this Charter or any Sup-

plement to change Service Area boundaries. NOTES

In addition, the Board may, by resolution,

designate Service Areas and assign Units to them

upon petition of Owners of at least 67% of the

Units affected by the proposed designation pur-

suant to Section 10.2.

The Owners of Units within each Service

Area may elect a "Service Area Committee" in

accordance with the By-Laws to represent and act

on behalf of the Owners with respect to the ser-

vices and benefits that the Association provides

to the Service Area. References to Service Areas

in the Governing Documents shall also refer to

such Service Area Committees, if appropriate

from the context.

3.3. Neighborhoods.

Units are grouped into "Neighborhoods" to

facilitate a system of representative voting on

matters as to which the Governing Documents

require approval of the Association's member-

ship. A Neighborhood may be comprised of any

number of Units and may include Units of more

than one housing type, as well as Units that are

not contiguous to one another. Each Neighbor-

hood will elect one "Voting Delegate" to cast the

votes allocated to Units in that Neighborhood on

matters requiring a vote of the Owners, as de-

scribed in Chapter 4.

The Founder initially will assign Units to a

specific Neighborhood (by name or other identi-

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Chapter 4

Association Membership and Voting Rights

The Association is a mechanism by which each The Founder may, by Supplement, create Owner can participate in the governance and adminiadditional classes of membership comprised of stration of the Community. While many powers and the Owners of Units within any portion of the responsibilities are vested in the Board in order to faadditional property submitted to this Charter. cilitate day-to-day management and operation, the The Founder shall specify in any such Supplemembership and voting rights vested in the Owners ment the rights, privileges, and obligations of the allow the Owners to participate in administration of members of any class of membership created by the Community and influence the outcome of major that Supplement.

decisions.

4.2. Voting.

4.1. Membership. Each Unit is assigned one equal vote, subject

The Association initially has two classes of to the limitations on voting set forth in this membership: the Owner membership, which is Charter and the other Governing Documents. comprised of all Owners, including Builders, and No vote shall be exercised for any property exthe Founder membership, which consists solely empt from assessment under Section 12.8. of the Founder. All persons holding a member-

ship in the Association are referred to in this Due to the number of Units that may be deCharter as "Members." veloped in the Community, the Governing

Documents provide for a representative system of (a) Owner Membership. Every Owner is voting. The Owners of Units in each Neighborautomatically a member of the Association. hood elect a "Voting Delegate" and an alternative However, there shall be only one membership Voting Delegate, in the manner provided in the per Unit. Thus, if a Unit has more than one By-Laws, to cast the votes of all Units in the Owner, all co-Owners of the Unit share the priviNeighborhood on matters requiring a vote of the leges of such membership, subject to reasonable membership, except where the governing docu Board regulation and the restrictions on voting ments specifically require a vote of the Owners. set forth below and in the By-Laws. If an Owner However, until such time as the Board first calls is a corporation, a partnership, or other legal enfor election of a Voting Delegate for a particular tity, its membership rights may be exercised by Neighborhood, each Owner of a Unit in such any officer, director, partner, or trustee, or by an Neighborhood shall be considered a "Voting individual the Owner designates from time to Delegate" and may personally cast the vote allotime in a writing to the Association's Secretary, cated to such Owner's Unit on any issue requirexcept that only the individuals residing in the ing a vote of the Voting Delegates under the Unit shall be entitled to use any Common Area Governing Documents.

recreational facilities available for use by Owners.

The Voting Delegate, or, in his or her ab- (b) Founder Membership. The Founder sence, the alternative Voting Delegate, attends holds the sole Founder membership. The FounAssociation meetings and casts all votes allocated der membership shall terminate upon expiration to Units in the Neighborhood that he or she of the Founder Control Period, or on such earrepresents on any matters as to which such Votlier date as the Founder determines and declares ing Delegate is entitled to vote under the Govin a recorded instrument. erning Documents. A Voting Delegate may vote

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BK0884PG0071 Association Membership and Voting Rights

BK:905 PG:25 all votes it is entitled to cast in its discretion and

may, but need not, poll the Owners of Units in

the Neighborhood which he or she represents

prior to voting. On any matter, other than elec-

tion of directors, for which a Voting Delegate is

entitled to cast more than one vote, the Voting

Delegate may cast all such votes as a block or split

them but shall not be entitled to fractionalize any

single vote.

Voting Delegates are subordinate to the

Board, and their responsibility and authority

does not extend to policymaking, supervising, or

otherwise being involved in Association govern-

ance beyond voting on matters put to a vote of

the membership.

In any situation in which an Owner is enti-

tled personally to exercise the vote for his or her

Unit, if there is more than one Owner of a Unit,

the vote for such Unit shall be exercised as the

co-Owners holding a majority of the ownership

interest in the Unit determine among them-

selves. Any co-Owner may cast the vote for the

Unit or consent to any action requiring approval

of the Owners on behalf of all co Owners of the

Unit, and majority agreement shall be conclu-

sively presumed unless another co-Owner of the

Unit protests promptly to the President or other

person presiding over the meeting or the ballot-

ing, in the case of a vote taken outside of a meet-

ing. In the absence of majority agreement, the

Unit's vote shall be suspended if two or more co

Owners seek to exercise it independently. No

more than one vote shall be cast for any Unit.

NOTES

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PART TWO: COMMUNITY STANDARDS

Whenever you do a thing, act as if all the world is watching.

• Thomas Jefferson

Page 21

B·0884PG0073

EK:905 PG:27 Chapter 5

Architecture, Landscaping, and Aesthetic Standards

The Community derives its unique character from having jurisdiction over architectural or construca mix of compatible architectural styles and from the tion matters.

cooperation of all Builders and Owners in upholding

minimum design, landscaping, and aesthetic standards. This Chapter shall not apply to structures exThis Chapter explains how those standards are estabisting on any portion of the Community prior to lished and how they are applied and maintained submitting it to this Charter, to the Founder's or through a process requiring prior approval for construcany Founder Affiliate's design and construction tion on and exterior modifications to improvements on activities, or to the Association's design and construction activities during the Founder Control Period.

5.1. General.

All site work, landscaping, structures, im5.2. Design Review Authority.

provements, and other items placed on a Unit or (a) Founder. The Founder shall have excluCommon Area in a manner or location visible sive authority to review and act upon all applicafrom outside of existing structures iỊiImprovetions for review of proposed Improvements until ments") are subject to standards for design, landthe later of (i) the expiration of the Development scaping, and aesthetics adopted pursuant to this and Sale Period, or (ii) such time as all Units Chapter ('Architectural Guidelines") and the planned for the property described in Exhibits approval procedures set forth in this Chapter, "A" and "B" have been improved with dwellings except as this Chapter or the Architectural for which a certificate of occupancy has been isGuidelines may otherwise specify. sued. The Founder may designate one or more persons to act on its behalf in reviewing any apNo prior approval is necessary to repaint the plication. In reviewing and acting upon any reexterior of existing structures using the most request for approval, the Founder and its designee cently approved color scheme or to rebuild or act solely in the Founder's interest and owe no restore any damaged structures in a manner conduty to any other Person.

sistent with the plans and specifications most

recently approved for such structures. Generally, From time to time, the Founder may deleno approval is required for work done to the ingate any or all of its rights under this Chapter to terior of a structure; however, modifications to other Persons or committees, including any the interior of screened porches, patios, and committee appointed pursuant to Section 5.2(b). other portions of a structure visible from outside Any such delegation shall be in writing, shall of the structure do require prior approval. specify the scope of responsibilities delegated, and shall be subject to (i) the Founder's right to Any dwelling constructed on a Unit shall be revoke such delegation at any time and reassume designed by and built in accordance with the its prior control, and (ii) the Founder's right to plans and specifications of a licensed architect veto any decision which it determines, in its disunless the Founder or its designee otherwise apcretion, to be inappropriate or inadvisable. So proves in its sole discretion. long as the Founder has any rights under this

Chapter, the jurisdiction of others shall be limApproval under this Chapter is not a substiited to such matters as the Founder specifically tute for any approvals or reviews required by Bardelegates.

row or Oconee County, as applicable, or any

municipality or governmental agency or entity

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BK 0884PG0074

Architecture, Landscaping, and Aesthetic Standards

EK:905 PG:28

(b) Design Review Committee. Upon the the compensation of such persons in the AssociaFounder's delegation of authority pursuant to tion's annual operating budget.

Section 5.2(a), or upon expiration or termination

of the Founder's rights under this Chapter, the

Board shall appoint a Design Review Committee Initially, the Founder reviews applications ("Design Review Committee" or "DRC") to asfor proposed Improvements. Thereafter, the sume jurisdiction over matters within the scope Board of Directors will appoint a Design Review of the delegated authority or this Chapter, reCommittee to review applications for proposed spectively. The DRC shall consist of at least improvements. The Founder or the Design Rethree, but not more than seven, persons, who view Committee is referred to as the "Reviewer." shall serve and may be removed and replaced in The Reviewer sets fees for reviewing applications. the Board's discretion. DRC members need not

be Owners or representatives of Owners. The 5.3. Guidelines and Procedures.

DRC may, but need not, include architects, en- (a) Architectural Guidelines. The Founder gineers, or similar professionals. The Association may prepare the initial Architectural Guidelines, may compensate DRC members in such manner which may contain general provisions applicable and amount, if any, as the Board may determine to all of the Community as well as specific proviappropriate. sions that vary based on the type of structure, use, or location within the Community. The Until expiration of the Founder's rights unArchitectural Guidelines are intended to provide der this Chapter, the DRC shall notify the Founguidance to Owners and contractors regarding der in writing within three business days of any matters of particular concern to the Reviewer. action (i.e., approval, partial approval, or disapThe Architectural Guidelines are not the excluproval) it takes under this Chapter. A copy of sive basis for the Reviewer's decisions, and comthe application and any additional information pliance with the Architectural Guidelines does the Founder may require shall accompany the not guarantee approval.

notice. The Founder shall have 10 business days

after receipt of such notice to veto any such acThe Founder shall have sole and full authortion, in its sole discretion, by written notice to ity to amend the Architectural Guidelines for so the DRC. long as it has review authority under Section

5.2(a). The Founder's right to amend the ArchiUnless and until such time as the Founder tectural Guidelines shall continue even if it deledelegates all or a portion of its reserved rights to gates reviewing authority to the DRC, unless the the DRC or the Founder's rights under this Founder also delegates the power to amend to Chapter terminate, the Association shall have no the DRC. Upon termination or delegation of jurisdiction over architectural matters. the Founder's right to amend, the DRC may amend the Architectural Guidelines with the (c) Reviewer. For purposes of this Chapter, Board's consent.

the entity having jurisdiction in a particular case

shall be referred to as the "Reviewer." Amendments to the Architectural Guidelines shall apply prospectively only. They shall not (d) Fees; Assistance. The Reviewer may esrequire modifications to or removal of any structablish and charge reasonable fees for its review tures previously approved once the approved of applications and may require that such fees be construction or modification has begun. Howpaid in advance. Such fees may also include reaever, any new work on such structures must sonable costs incurred in having professionals comply with the Architectural Guidelines as review any application. The Board may include amended. There shall be no limitation on the scope of amendments to the Architectural

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BX0884PG0075 Architecture, Landscaping, and Aesthetic Standards

BK:905 PG:29 Guidelines, and such amendments may eliminate case a final decision shall not be required until requirements previously imposed or otherwise after the final, required submission. The Remake the Architectural Guidelines less restrictive. viewer may (i) approve the application with or without conditions; (ii) approve a portion of the The Reviewer shall make the Architectural application and disapprove other portions; or (iii) Guidelines available to Owners and their condisapprove the application.

tractors upon request. In the Founder's discre-

tion, such Architectural Guidelines may be reThe Reviewer shall notify the applicant in corded, in which event the recorded version, as it writing of the final determination on any applicamay be amended from time to time, shall control tion no later than 30 business days after its rein the event of any dispute as to which version of ceipt of a completed application and all required the Architectural Guidelines was in effect at any submissions; however, with respect to any DRC particular time. determination subject to the Founder's veto right under Section 5.2(b), the Reviewer shall notify (b) Procedures. Unless the Architectural the applicant of the final determination within Guidelines provide otherwise, no activities within 40 business days after its receipt of the final dethe scope of this Chapter (as described in Section termination and all required submissions. No 5.1) may begin on any portion of the Community tice shall be deemed given at the time the enveuntil a written application is submitted to and lope containing the response is deposited in the approved by the Reviewer. The application must U.S. mail. Hand delivery, facsimile, electronic be accompanied by plans and specifications and mail, or similar delivery of such written notice such other information as the Reviewer or the also shall be sufficient and shall be deemed given Architectural Guidelines require. at the time of confirmed delivery to the appli-

In reviewing each application, the Reviewer

may consider any factors it deems relevant, inIf the Reviewer fails to respond within the cluding, without limitation, harmony of the pro time period required above, approval shall be posed external design with surrounding strucdeemed given. However, no approval, whether tures and environment. Decisions may be based expressly granted or deemed granted, shall be on purely aesthetic considerations. Each Owner inconsistent with the Architectural Guidelines acknowledges that such determinations are unless a written variance has been granted pursupurely subjective and that opinions may vary as to ant to Section 5.5.

the desirability and/or attractiveness of particular

improvements. Construction of approved work must commence within 12 months of approval or the apThe Reviewer shall have the sole discretion proval shall expire, in which event the Owner to make final, conclusive, and binding determimust reapply for approval before commencing nations on matters of aesthetic judgment, and any activities. Once construction is commenced, such determinations shall not be subject to the it shall be diligently pursued to completion. All procedures in Chapter 19 or judicial review so work shall be completed within 12 months of long as they are made in good faith and in accorcommencement unless otherwise specified in the dance with required procedures. notice of approval or unless the Reviewer, in its discretion, grants an extension in writing. The Reviewer shall make a determination on

each application after receipt of a completed apThe Reviewer may exempt certain activities plication with all required information. The Refrom the application and approval requirements viewer may permit or require that an application of this Chapter, if such activities are undertaken be submitted or considered in stages, in which

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BX 0884 PG0076 Architecture, Landscaping, and Aesthetic Standards

BK: 905 FG:30

in compliance with the Architectural Guidelines hancing the overall aesthetics of the Community; and the Community-Wide Standard. they do not create any duty to any Person. Review and approval of any application pursuant to 5.4. No Waiver of Future Approvals. this Chapter may be based purely on aesthetic The people reviewing applications under this considerations. The Reviewer is not responsible Chapter will change from time to time, and opinfor the structural integrity or soundness of apions on aesthetic matters, as well as interpretaproved construction or modifications, for comtion and application of the Architectural Guidepliance with building codes and other governlines, may vary accordingly. It may not always be mental requirements, or for ensuring that all possible to identify objectionable features until dwellings are of comparable quality, value, size, work is completed. In such cases, the Reviewer or design, or are aesthetically pleasing or othermay elect not to require changes to objectionable wise acceptable to other Owners.

features. However, the Reviewer may refuse to

approve similar proposals in the future. ApThe Founder, Founder Affiliates, the Asso proval of applications or plans shall not consticiation, its officers, the Board, any committee, tute a waiver of the right to withhold approval as and any member of any of the foregoing, shall to any similar applications, plans, or other matnot be liable for (a) soil conditions, drainage, or ters subsequently or additionally submitted for other general site work; (b) any defects in plans revised or approved hereunder; (c) any loss or damage arising out of the action, inaction, integ5.5. Variances. rity, financial condition, or quality of work of any contractor or its subcontractors, employees, or When unusual circumstances exist that agents, whether or not the Founder has approved make it difficult to comply with a particular reor featured such contractor as a Builder; or (d) quirement of the Architectural Guidelines, the any injury, damages, or loss arising out of the manner or quality or other circumstances of apOwner may file a request with the Reviewer to be proved construction on or modifications to any excused from complying with such requirement. Unit. In all matters, the Association shall defend The Reviewer has the discretion to determine

when a variance is appropriate. and indemnify the Board, the DRC, and the members of each, as provided in the By-Laws. The Reviewer may authorize variances from 5.7. Certificate of Compliance.

compliance with any of the Architectural Guide-

lines and any procedures when circumstances Any Owner may request in writing that the such as topography, natural obstructions, hardReviewer issue a certificate of compliance certify. ship, or aesthetic or environmental consideraing that there are no known violations of this tions require, but only in accordance with duly Chapter or the Architectural Guidelines. The adopted rules. No variance shall (a) be effective Association shall either grant or deny such writunless in writing; (b) be contrary to this Charter; ten request within 30 days after receipt and may or (c) prevent the Reviewer from denying a varicharge a reasonable administrative fee. Issuance ance in other circumstances. A variance requires of such a certificate shall prevent the Association the Founder's written consent during the Develfrom taking enforcement action against an opment and Sale Period and, thereafter, requires Owner for any condition known to the Associathe Board's written consent. tion on the date of such certificate.

5.6. Limitation of Liability. NOTES

This Chapter establishes standards and pro-

cedures as a mechanism for maintaining and en-

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EK: 905 PG:31

Chapter 6

Maintenance, Repair, and Replacement

One of the benefits of owning property in a irrigating and fertilizing such landscaping as planned community is the commitment among needed to keep it in an attractive, healthy condineighbors to maintain their property in a neat, attraction.

tive, and welllandscaped condition to enhance the

overall beauty and aesthetic appeal of the Community. 6.2. Maintenance by Additional Associations. This Chapter describes the OwnerẾesponsibilities for Unless such maintenance responsibility is maintenance and repair of their Units and for insuring otherwise assumed by or assigned to the Associatheir Units against property damage so that funds will tion pursuant to this Charter, any Supplement, be available for repair and restoration if needed. or by law, an Additional Association shall main6.1. Maintenance by Owners. tain its common property and any other property for which it has maintenance responsibility in a Unless such maintenance responsibility is manner consistent with the Governing Docuotherwise assumed by or assigned to the Associaments, the Community-Wide Standard, and all tion or an Additional Association pursuant to applicable covenants.

this Charter, any Supplement, or by law, each

Owner shall maintain: Any Additional Association shall also be responsible for maintaining and irrigating the (a) his or her Unit, including all structures, landscaping within that portion of any adjacent landscaping, and other improvements comprising Common Area or public right-of-way lying bethe Unit; tween the boundary of its common property and any wall, fence, or curb located on the Common (b) the area between the boundary of the Area or right-of-way within 20 feet of its boundUnit and the water's edge of any lake or wetland ary. An Additional Association shall not remove lying within 20 feet of the Unit boundary, subject trees, shrubs, or similar vegetation from this area to any state or federal regulations applicable to without prior approval pursuant to Chapter 5. the use, control, or disturbance of a lake or wet-

land area; and The Association may assume maintenance responsibility for property of any Additional As- (c) the landscaping within (i) the right-ofsociation, either by contract or agreement with way of any street on which the Unit fronts; and the Additional Association, or upon the Board's (ii) any adjacent Common Area lying between determination, pursuant to Chapter 8, that the the Unit boundary and any wall or fence located level and quality of maintenance then being proon the Common Area within 20 feet of the Unit vided is not consistent with the Communityboundary. However, Owners may not remove Wide Standard.

trees, shrubs, or similar vegetation from these

areas without prior approval pursuant to Chap6.3. Responsibility for Repair and Replacement.

All maintenance pursuant to this Section 6.1 Unless otherwise specifically provided in the shall be performed in a manner consistent with Governing Documents or in other instruments the Governing Documents and the Communitycreating and assigning maintenance responsibilWide Standard. Responsibility for maintenance ity, responsibility for maintenance shall include * of landscaping shall include responsibility for responsibility for repair and replacement neces-

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EK:905 PG:32

sary to maintain the property to a level consistent way, motor court, or similar structure built as with the Community-Wide Standard. part of the original construction on the Units that serves and/or separates any two adjoining Each Owner shall carry property insurance Units shall be considered a party structure, for the full replacement cost of all insurable imunless it is a separate parcel of property and conprovements on his or her Unit, less a reasonable veyed to the Association as Limited Common deductible, unless either the Association or an Area (in which case the Association shall be reAdditional Association having jurisdiction over sponsible for the maintenance of such structure the Unit (if any) carries such insurance. If the and shall assess the costs against the benefited Association assumes responsibility for insuring a Units as a Service Area Expense as provided in Unit pursuant to this Charter or any applicable Section 12.1(b)). The cost of reasonable repair Supplement, the premiums for such insurance and maintenance of a party structure shall be shall be levied as a Service Area Assessment shared equally by the Owners who use the party against the benefited Units and the Owners

thereof.

If a party structure is destroyed or damaged Within 90 days after damage to or destrucby fire or other casualty, then to the extent that tion of a structure on a Unit which the Owner is such damage is not covered by insurance and responsible for insuring, the Owner shall repaired out of the proceeds of insurance, any promptly repair or reconstruct in a manner conOwner who has used the structure may restore it. sistent with the original construction or such If other Owners thereafter use the structure, they other plans and specifications as are approved shall contribute to the restoration cost in equal pursuant to Chapter 5 unless the Board, in its proportions. However, such contribution will discretion, agrees to extend such period. Alternot prejudice the right to call for a larger contrinatively, the Owner shall clear the Unit of debris bution from the other users under any rule of law and maintain it in a neat and attractive landregarding liability for negligent or willful acts or scaped condition consistent with the Commuomissions.

nity-Wide Standard. The Owner shall pay any

costs that insurance proceeds do not cover. Any Owner's right to contribution from any other Owner under this Section shall be appurAdditional recorded covenants applicable to tenant to the land and shall pass to such Owner's any portion of the Community may establish successors-in-title.

additional insurance requirements and more

stringent standards for rebuilding or reconstructTo the extent not inconsistent with the pro ing structures on Units and for clearing and visions of this Section, the general rules of law maintaining the Units in the event the structures regarding party walls and liability for property are not rebuilt or reconstructed. damage due to negligence or willful acts or omissions shall apply to any party structure. Any disThis Section shall apply to an Additional Aspute concerning a party structure shall be subject sociation with respect to common property it to the provisions of Chapter 19.

owns in the same manner as if the Additional

Association were an Owner and the common NOTES

property were a Unit.

6.4. Maintenance and Repair of Party Walls

and Similar Structures.

Except as may otherwise be provided in any

applicable Supplement, each wall, fence, drive-

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BK0884PG0079 EK: 905 PG:33

Chapter 7

Use and Conduct

In order to maintain a residential environment threaten the security or safety of others, as the that encourages respect for and courtesy among Board determines in its discretion.

neighbors and minimizes the potential for disputes, this

Chapter sets forth basic standards regarding use, occu- "Business" shall have its ordinary, generally pancy, and transfer of interests in Units. In addition, accepted meaning and shall include, without it provides a procedure by which the Board and the limitation, any occupation, work, or activity unmembership can adopt and change rules regulating use, dertaken on an ongoing basis which involves conduct, and activities within the Community to ad providing goods or services to Persons other than dress particular needs and desires of the Community the family of the producer and for which the producer receives a fee, compensation, or other form of consideration, regardless of whether (i) 7.1. Use, Occupancy, and Transfer of Intersuch activity is engaged in full or part time; (ii) ests in Units. such activity is intended to or does generate a (a) Residential and Related Uses. profit; or (iii) a license is required.

may be used only for residential and related purProvision of child care on a limited basis for poses, except as the Founder may otherwise au-

thorize with respect to construction, marketing a fee shall not be considered a "business" within and sale activities of the Founder and Builders it the meaning of this subsection so long as the designates, and as otherwise authorized in this child care provider (i) resides in the home where Section. A business activity shall be considered the child care is provided; (it) does not employ "related" to a residential use and thus permitted other persons to assist in the provision of child under this Section only if conducted by a person care; and (iii) does not provide child care to more or persons residing in the Unit and only if the than two children at a time who do not reside in business activity: the home where the child care is provided, or more than four children total, including the (i) is not apparent or detectable by children of the child care provider.

sight, sound, or smell from outside of a permitted Leasing a Unit for residential purposes shall structure; not be considered a "business" within the mean-

(ii) complies with applicable zoning reing of this subsection but shall be subject to the quirements; restrictions set forth in Section 7.1(b) and to such rules as the Association may adopt pursuant (iii) does not involve regular visitation to this Chapter. For purposes of this Charter, of the Unit by employees who do not reside in the terms "Lease' and "Leasing' shall refer to the the Unit, clients, customers, suppliers, or other regular, exclusive occupancy of a Unit by any Perbusiness invitees, or door-to-door solicitation son other than the Owner, for which the Owner within the Community; and receives any consideration or benefit.

(iv) is consistent with the residential Nothing in this Section shall preclude the character of that portion of the Community in Founder, any Founder Affiliate, or Founder's which the Unit is located and does not constitute designee from providing rental management sera nuisance or a hazardous or offensive use, or vices to Units for a fee.

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(b) Leasing. Any dwelling that is leased shall An Owner may not register more persons be leased only in its entirety; separate rooms, than may occupy the Unit at one time, except floors, or other areas within a dwelling may not that:

be separately leased; however, any garage apart-

ment, detached "in-law suite' or "guest house" (i) in the case of a Unit owned by a approved pursuant to Chapter 5 may be leased Corporate Member of the Private Amenity separate from the main dwelling so long as conknown as The Georgia Club, each designee of sistent with applicable zoning and subdivision the Corporate Member authorized to use the ordinances. Private Amenity, not to exceed a total of three, and the members' of their respective households, All leases shall be in writing and shall dismay be registered to occupy the Unit so long as close that the tenants and all occupants of the no more than two persons per bedroom are actuleased Unit are bound by and obligated to comally in occupancy at any given time; and ply with the Governing Documents. However,

the Governing Documents shall apply regardless (ii) in the case of a Unit with multiple of whether such a provision is specifically set coowners who do not reside in the same houseforth in the lease. hold, up to three co-owners and the members of their respective households may be registered to Within 10 days of a lease being signed, the occupy the Unit so long as no more than two Owner of the leased Unit shall notify the Board persons per bedroom are actually in occupancy at or the Association's managing agent of the lease any given time.

and provide any additional information the

Board may reasonably require. The Owner must This subsection (c) shall not apply to Units give the tenant copies of the Governing Docuowned by the Founder or a Founder Affiliate or ments. In addition to, but consistent with, this to Units owned by the owner of the Private subsection, the Association or the Board may Amenity.

adopt Rules governing leasing and subleasing

subject to Section 7.2. (d) Transfer of Title. Any Owner desiring to sell or otherwise transfer title to his or her (c) Occupancy of Units. "Occupancy," as Unit shall give the Board at least seven days' prior used in this subsection, shall be defined as staywritten notice of the name and address of the ing overnight in a Unit. Occupancy of a Unit purchaser or transferee, the date of such transfer shall not exceed two persons per bedroom in the of title, and such other information as the Board Unit, except as may otherwise be required by law. may reasonably require. The Person transferring title shall continue to be jointly and severally reAn Owner shall register with the Association sponsible with the Person accepting title for all in advance every person entitled to occupancy of obligations of the Owner, including assessment the Owner's Unit, except that it shall not be necobligations, until the date upon which the Board essary to register a houseguest who stays overreceives such notice, notwithstanding the transfer night with a registered occupant in the Unit for of title.

14 or fewer days in a 60-day period. The regis-

tered occupants of a Unit may not be changed to (e) Subdivision and Combination of Units. add or substitute occupants more than a total of No Person other than the Founder, Founder Af6 times (for the main dwelling and guest house, filiates, and Builders authorized by the Founder or either of them) in any calendar year. shall subdivide or change the boundary lines of any Unit or combine Units without the Board's prior written approval. Any subdivision shall be effective only upon recording of a plat or other

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BK:905 PG:35

legal instrument reflecting the subdivision or new opment and Sale Period, any such action shall boundaries of the affected Unit(s). Unless the also be subject to the Founder's approval. Founder has recorded a revised or amended plat

reflecting a boundary change, adjacent Units (c) Notice. The Board shall send notice to owned by the same Owner shall continue to be all Owners concerning any proposed Rule change treated as separate Units for purposes of voting at least five business days prior to the meeting of and assessment, even though such Units may be the Board or the Voting Delegates at which such improved with a single dwelling; therefore, the action is to be considered. At any such meeting, Owner of such adjacent Units shall be responsiMembers shall have a reasonable opportunity to ble for separate assessments for each such Unit. be heard before the proposed action is put to a vote.

(f) Timesharing. No Unit shall be used for

operation of a timesharing, fraction-sharing, or (d) Effective Date. A Rules change adopted similar program whereby the right to exclusive under this Section shall take effect 30 days after use of the Unit rotates among participants in the the date on which written notice of the Rules program on a fixed or floating time schedule over change is given to the Owners.

a period of years.

(e) Administrative and Operating Policies. 7.2. Rulemaking Authority and Procedures. The procedures set forth in this Section do not

The Governing Documents establish a apply to administrative and operating policies that the Board may adopt relating to the Comframework of covenants and conditions that govmon Areas, such as hours of operation of a recern the Community. The initial Rules attached reational facility, speed limits on private roads, as Exhibit "C" are a part of that framework. safety regulations, or the method of allocating or However, within that framework, the Association reserving use of a facility (if permitted) by particumust be able to respond to unforeseen issues and lar individuals at particular times, notwithstandchanges affecting the Community. Therefore, ing that such policies may be published as part of the Board and the Voting Delegates are author-

ized to change the Rules in accordance with the

following procedures, subject to the limitations (f) Conflicts. No action taken under this set forth in Section 7.3. Section shall have the effect of modifying or re-

(a) Board Authority. Subject to the notice pealing the Architectural Guidelines or any provision of this Charter other than the Rules. In requirements in subsection (c) and the Board's the event of a conflict between the Architectural duty to exercise judgment and reasonableness on Guidelines and the Rules, the Architectural behalf of the Association and its Members, the Guidelines shall control. In the event of a conBoard may adopt new Rules and modify or reflict between the Rules and any provision of this scind existing Rules by majority vote of the direcCharter (exclusive of the Rules), the Charter shall tors at any Board meeting.

(b) Membership Authority. Subject to the

notice requirements in subsection (c), the Voting

Delegates entitled to cast a majority of the votes

in the Association may also adopt new Rules and

modify or rescind existing Rules at any meeting

of the Association duly called for such purpose,

regardless of the manner in which the original

Rule was adopted. However, during the Devel-

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sightly conditions visible from outside the dwellSince it is impossible to foresee all potening, or that are an unreasonable source of annoy. tial situations and problems that may arise within ance.

the community, the Board and the Members

have the authority to adopt and modify rules as (e) Allocation of Burdens and Benefits. needed to address these changing circumstances. No Rule shall alter the allocation of financial burdens among the various Units or rights to use 7.3. Protection of Owners and Others. the Common Area set forth in this Charter to Except as may be set forth in this Charter (eithe detriment of any Owner over that Owner's ther initially or by amendment) or in the initial objection expressed in writing to the Association. Rules set forth in Exhibit "C," all Rules shall Nothing in this provision shall prevent the Asso comply with the following provisions: ciation from changing the Common Area available, from adopting generally applicable rules for (a) Similar Treatment. Similarly situated use of Common Area, or from denying use priviUnits shall be treated similarly; however, the leges to those who are delinquent in paying asRules may vary from one portion of the Comsessments, abuse the Common Area, or violate munity to another. the Governing Documents. This provision does not affect the right to increase the amount of (b) Displays. No Rule shall abridge an assessments as provided in Chapter 12. Owner's right to display political, religious, or

holiday symbols and decorations on his or her (f) Leasing and Transfer of Units. No Rule Unit of the kinds normally displayed in singleshall prohibit leasing or transfer of any Unit or family residential neighborhoods, nor shall any require approval prior to leasing or transferring a Rule regulate the content of political signs. Unit; however, the Rules may require a miniHowever, the Association may adopt time, place, mum lease term of up to 12 months except in the and manner restrictions with respect to signs, portion of the Community designated on Exhibit symbols, and displays visible from outside struc- "A" as the "Village Area," in which there shall be tures on the Unit, including reasonable limitano minimum lease term and short-term rental tions on size and number. shall be permitted subject to the restrictions set forth in Section 7.1. The Rules may also require (c) Household Composition. No Rule shall that Owners use Board-approved lease forms (or interfere with an Owner's freedom to determine include specific lease terms) and may impose a household composition, except that the Associareasonable administrative fee in connection with tion may impose and enforce reasonable occuthe Board's review of a lease.

pancy limitations and conditions based on Unit

size and facilities and its fair share use of the (g) Abridging Existing Rights. No Rule Common Area consistent with Section 7.1. shall require that an Owner dispose of personal property kept in or on a Unit in compliance with (d) Activities Within Dwellings. No Rule the Rules in effect at the time such personal shall interfere with the activities carried on property was brought onto the Unit. This exwithin a dwelling to the extent not otherwise emption shall apply only during the period of prohibited by Section 7.1, except that the Assosuch Owner's ownership of the Unit and shall ciation may prohibit activities not normally assonot apply to subsequent Owners who take title to ciated with residential property. It may also rethe Unit after adoption of the Rule.

strict or prohibit activities that create monetary

costs for the Association or other Owners, that (h) Reasonable Rights to Develop. No Rule create a danger to anyone's health or safety, that may unreasonably interfere with the ability of the generate excessive noise or traffic, that create unFounder, any Founder Affiliate, or Builder to

Page 31

Use and Conduct BK0884PG0083

EK :905 PG:37 develop, market, and sell property in the Com-

munity.

(i) Interference with Easements. No Rule

may unreasonably interfere with the exercise of

any easement.

() Interference with Private Amenity. No

Rule or action by the Association or Board shall

interfere with the use or operation of any prop-

erty owned or administered by a Private Amenity.

7.4. Owners' Acknowledgment and Notice to

Purchasers.

By accepting a deed, each Owner acknowl-

edges and agrees that the use, enjoyment, and

marketability of his or her Unit is limited and

affected by the Rules, which may change from

time to time. All Unit purchasers are hereby

notified that the Association may have adopted

changes to the Rules and that such changes may

not be set forth in a recorded document. A

copy of the current Rules and administrative

policies are available from the Association upon

request. The Association may charge a reason-

able fee to cover its reproduction cost.

NOTES

Page 32

BK0884PG0084 BK:905 PG:38

Chapter 8

Compliance and Enforcement

The covenants, standards, and rules set forth in ments and a fine is imposed, the fine may, but the Governing Documents are for the benefit of all need not, first be assessed against the violator; Owners and occupants of the Community. However, however, if the fine is not paid by the violator if they are to have any real meaning, there must be a within the time period set by the Board, the commitment by the stakeholders in the Community to Owner shall pay the fine upon notice from the comply with them, and there must be a mechanism in Board;

place to enforce that compliance in the event that

someone fails or refuses to do so. This Chapter sets (ii) suspend an Owner's right to vote forth the obligation to comply and the remedies avail (except that no notice or hearing is required if able to the Association for noncompliance. the Owner is more than 60 days delinquent in paying any Base or Special Assessment); 8.1. Compliance.

Every Owner, occupant, and visitor to a Unit (iii) suspend any Person's right to use must comply with the Governing Documents any Common Area facilities (A) for any period and shall be subject to sanctions for violations as during which any charge against such Owner's described in this Chapter. In addition, each Unit remains delinquent, and (B) for a period not to exceed 30 days for a single violation or for Owner shall be responsible for, and may be sanca longer period in the case of any continuing vio tioned for, all violations of the Governing lation (except that no notice or hearing is reDocuments by the occupants of or visitors to quired if the Owner is more than 60 days delintheir Units and for any damage to the Area of quent in paying any assessment or other charge Common Responsibility that such occupants or owed the Association); however, nothing herein visitors cause. shall authorize the Board to limit ingress or 8.2. Remedies for Non-Compliance. egress to or from a Unit;

The Association, the Founder, any Founder (iv) suspend services the Association Affiliate, and every affected Owner shall have the provides (except that no notice or hearing is reright to file suit at law or in equity to enforce the quired if the Owner is more than 60 days delinGoverning Documents. In addition, the Board quent in paying any assessment or other charge may impose sanctions for violation of the Govowed to the Association);

erning Documents, including those listed below

and any others described elsewhere in the Gov- (v) exercise self-help or take action to erning Documents. abate any violation of the Governing Documents in a non-emergency situation (including remov- (a) Sanctions Requiring Prior Notice and ing personal property that violates the Governing Hearing. After written notice and an opportuDocuments);

nity for a hearing in accordance with the By-

Laws, the Board may: (vi) without liability to any Person, preclude any contractor, subcontractor, agent, em- (i) impose reasonable monetary fines, ployee, or other invitee of an Owner who fails to which shall constitute a lien upon the violator's comply with the terms and provisions of Chapter Unit. In the event that any occupant, guest, or 5 and the Architectural Guidelines from continuinvitee of a Unit violates the Governing Docu

Page 33

Compliance and Enforcement BK0884PG0085

EK:905 PG:39 ing or performing any further activities in the action as required pursuant to subsection (iii) Community; above within 10 days after receipt of written no tice to do so, and any such entry shall not be (vii) levy Specific Assessments to cover deemed a trespass; or

costs the Association incurs in bringing a Unit

into compliance with the Community-Wide (v) bring suit at law for monetary damStandard or other requirements under the Govages or in equity to stop or prevent any violation, erning Documents; and or both.

(viii) record a notice of violation with re- (c) Additional Powers Relating to Addispect to any Unit on which a violation exists. tional Associations. In addition to the foregoing sanctions, the Association shall have the power If, after notice and an opportunity for a hearto veto any action that an Additional Association ing, the violation continues or recurs within 12 proposes to take if the Board reasonably determonths after the date of such notice, the Board mines the proposed action to be adverse to the may impose any of the above sanctions without interests of the Association or its Members or further notice or opportunity for another hearinconsistent with the Community-Wide Staning. dard. The Association also shall have the power to require specific action to be taken by any Ad- (b) Other Sanctions. The Board may take ditional Association in connection with its oblithe following actions to obtain compliance with gations and responsibilities, such as requiring the Governing Documents without prior notice specific maintenance or repairs or aesthetic or a hearing: changes to be effectuated and requiring that a

(i> exercise self-help or take action to proposed budget include certain items and that expenditures be made therefor.

abate a violation in any situation which requires

prompt action to avoid potential injury or damAn Additional Association shall take approage or unreasonable inconvenience to other perpriate action required by the Association in a sons or their property (specifically including, but written notice within the reasonable time frame not limited to, the towing of vehicles that are in set by the Association in the notice. If the Addiviolation of parking rules and regulations); tional Association fails to comply, the Association shall have the right to effect such action on (ii) exercise self-help or take action to behalf of the Additional Association and levy abate a violation on the Common Area under Specific Assessments to cover the costs, as well as any circumstances; an administrative charge and sanctions.

(iii) require an Owner or an Additional

Association, at its own expense, to perform mainAll Owners are required to abide by the tenance or to remove any structure or improveGoverning Documents. If an Owner fails or rement on such Owner's Unit or on the Additional fuses to obey the Governing Documents, the Association's property, respectively, that is in vio Owner may be subject to various penalties inlation of the Community-Wide Standard or cluding fines and the loss of the right to use the other requirements under the Governing DocuCommon Areas.

ments and to restore the property to its previous

condition; 8.3. Board Decision to Pursue Enforcement

Action.

(iv) enter the property and exercise self-

help to remove or cure a violating condition if an The decision to pursue enforcement action Owner or Additional Association fails to take in any particular case shall be left to the Board's

Page 34

BK0884PG0086 • Compliance and Enforcement

EK:905 PG=40 discretion, except that the Board shall not be NOTES

arbitrary or capricious in taking enforcement ac-

tion. For example, the Board may determine

that, in a particular case:

(a) the Association's position is not strong

enough to justify taking any or further action;

(b) the covenant, restriction, or rule being

enforced is, or is likely to be construed as, incon-

sistent with applicable law;

(c) although a technical violation may exist

or may have occurred, it is not of such a material

nature as to be objectionable to a reasonable per-

son or to justify expending the Association's re-

sources; or

(d) it is not in the Association's best inter-

ests, based upon hardship, expense, or other rea-

sonable criteria, to pursue enforcement action.

A decision not to enforce a particular provi-

sion shall not prevent the Association from en-

forcing the same provision at a later time or pre-

vent the enforcement of any other covenant, re-

striction, or rule.

8.4. Attorneys Fees and Costs.

In any action to enforce the Governing

Documents, if the Association prevails, it shall be

entitled to recover all costs, including, without

limitation, attorneys fees and court costs rea-

sonably incurred in such action.

8.5. Enforcement of Ordinances.

The Association, by contract or other agree-

ment, may enforce applicable city and county

ordinances. In addition, Barrow or Oconee

County, as applicable, may enforce ordinances

within the Community.

Page 35

BK0884PG0087 BK=905 PG=41

PART THREE: ASSOCIATION OPERATIONS

Take time to deliberate; but when the time for action arrives, stop thinking and go on.

- Andrew Jackson

Page 36

BK 0884P0088 BK: 905 PG:42

Chapter 9

Property Management

One of the Association's primary functions is ment transferring the property to the Associamaintaining and operating property and facilities for tion. The Association may enter into leases, lithe common benefit of the Owners and residents of the censes, or operating agreements with respect to Community. This Chapter establishes the Associaportions of the Common Area, for payment or tion's obligation to accept property that the Founder no payment, as the Board deems appropriate. designates as Common Area or Limited Common Area The Association may permit use of Common and to maintain, operate, and insure it, along with Area facilities by persons other than Owners and certain other properties, for the benefit of the Commu occupants of Units and may charge use fees, in nity. such amount as the Board may establish, for such use.

9.1. Acceptance and Control of Association

Property. 9.2. Maintenance of Area of Common Re- (a) Transfers and Conveyances by Founder. sponsibility.

The Founder, its designees, or any Founder AfThe Association shall maintain the Area of filiate, and, with the Founder's written consent, Common Responsibility in accordance with the any Builder, may transfer or convey to the AssoCommunity-Wide Standard. The Area of Comciation interests in real or personal property mon Responsibility includes, but is not limited within or for the benefit of the Community, and to:

the Association shall accept such transfers and

conveyances. Such property may be improved or (a) the Common Area;

unimproved and may consist of fee simple title,

easements, leases, licenses, or other real or per- (b) any and all entry features, entry gates, sonal property interests. and gatehouses serving the Community, mail facilities, and private streets within the CommuUpon the Founder's written request, the Asnity, whether or not owned by the Association; sociation shall reconvey to the Founder, or any except that any gatehouse limiting access to only Founder Affiliate or Builder, any unimproved a portion of the Community shall be maintained real property that the Founder originally conas a Service Area Expense of that portion of the veyed to the Association for no payment, to the Community;

extent conveyed in error or needed to make mi-

nor adjustments in property lines or accommo- (c) landscaping within public rights-of-way date changes in the development plan. adjacent to the Community, to the extent that the Board determines it necessary or desirable to The Founder shall have the right to convey maintain the Community-Wide Standard; any property to the Association as Common Area

subject to easements permitting persons who are (d) the sidewalks and streetlights, if any, lonot members of the Association to use and enjoy cated within the Community;

such Common Area upon payment to the Asso-

ciation of reasonable use fees. (e) the lakes and wetlands within the Community conveyed to the Association as Common (b) Management and Control. The Asso Area, including maintenance of water quality in ciation is responsible for management, operation, the lakes, and all dams, bulkheads, and related and control of the Common Area, subject to any structures retaining water in any lake or wetland; covenants set forth in the deed or other instru-

Page 37

BK0884PG0089 Property Management

EK: 905 PG:43

(f) the feeder lines for any re-use water disvotes in the Association, consent in writing to tribution system providing irrigation water for discontinue such operation. If the property is property in the Community; Limited Common Area, any discontinuation shall also require the approval in writing of at (g) such portions of any additional property least 75% (or such higher percentage as a Sup. as may be dictated by the Founder, this Charter, plement may require) of the Owners to whom any Supplement, or any covenant or agreement such Limited Common Area is assigned. This for maintenance entered into by or otherwise Section shall not apply to restrict the Board's binding on the Association; and ability to establish reasonable operating hours, which may vary by season, or to restrict tempo (h) any property and facilities that the rary closures or interruptions in operation as the Founder or any Founder Affiliate owns and Board may determine appropriate to perform makes available at no charge, on a temporary or maintenance or repairs.

permanent basis, for the primary use and enjoy-

ment of the Association and its Members. The 9.4. Restoring Damaged Improvements. Founder shall identify any such property and

facilities by written notice to the Association, and In the event of damage to or destruction of they shall remain part of the Area of Common portions of the Area of Common Responsibility Responsibility until the Founder or Founder Affor which the Association has insurance responfiliate revokes such privilege of use and enjoysibility, the Board or its duly authorized agent ment by written notice to the Association. shall file and adjust all insurance claims and obtain reliable and detailed estimates of the cost of The Association may, but shall not be oblirepairing or restoring the property to substangated to, enter upon the lakes and streams within tially its condition prior to the damage, allowing the Community to perform lake maintenance for changes or improvements necessitated by and repair, remove dead or diseased trees, changes in applicable building codes.

shrubs, and plants, and control any condition or

remove any thing that constitutes a potential The Association shall repair or reconstruct health or safety hazard. damaged Common Area improvements unless:

The Association may maintain other prop- (a) this Charter is terminated pursuant to erty it does not own, including, without limitaSection 21.1;

tion, Units, property dedicated to the public, or (b) repair or restoration would be illegal unproperty owned or maintained by an Additional der any state or local statute or ordinance governAssociation, if the Association, if the Board determines that such Board

maintenance is necessary or desirable to maintain ing health or safety;

the Community-Wide Standard. The Associa- (c) the Founder, during the Development tion shall not be liable for any damage or injury and Sale Period, and Voting Delegates entitled to occurring on, or arising out of the condition of, cast at least 67% of the total votes in the Associaproperty it does not own except to the extent tion, or, in the case of a Limited Common Area, that it has been negligent in performing its mainOwners of at least 67% of the Units to which the tenance responsibilities. Limited Common Area is assigned, vote within 9.3. Discontinuation of Operation. 60 days after the loss not to repair or reconstruct. The Association shall maintain the Common If either the insurance proceeds or estimates Area facilities in operation unless the Founder, of the loss, or both, are not available to the Asso during the Development and Sale Period, and ciation within such 60-day period, then the peVoting Delegates entitled to cast 75% of the total riod shall be extended until such funds or infor-

Page 38

BK0884PG0090 Property Management

BK: 905 PG=44 mation are available. Except as provided above, 9.5. Relationships with Other Properties. no Mortgagee shall have the right to participate The Association may contract with the owner in determining whether the damage or destrucof any neighboring property or recreational tion to the Common Area shall be repaired or amenity or Private Amenity to provide for sharreconstructed.

ing of costs associated with (a) maintenance and operation of mutually beneficial properties or This provision ensures that desirable facilities, or (b) provision of mutually beneficial Common Area improvements will be replaced if services.

destroyed, but it also makes it possible not to re-

pair or rebuild if the Owners who benefit from NOTES

the Common Area prefer not to rebuild.

If a decision is made not to restore the dam-

aged improvements and no alternative improve-

ments are authorized, the affected property shall

be cleared of all debris and ruins and thereafter

shall be maintained by the Association in a neat

and attractive condition consistent with the

Community-Wide Standard.

The insurance proceeds attributable to any

Units or Limited Common Areas that are not

rebuilt shall be distributed to the Owners of the

damaged Units or the Units to which such Lim-

ited Common Areas were assigned, or to their

respective lienholders, as their interests may ap-

pear, in proportion to their relative liability for

Association expenses. The Association shall re-

tain and place in a capital improvements account

for the benefit of all Owners, the Owners within

the affected Service Area, or the Owners of Units

to which such Limited Common Areas were as-

signed, as appropriate, any insurance proceeds

remaining after paying the costs of repair or re-

construction or after such settlement as is neces-

sary and appropriate. This is a covenant for the

benefit of Mortgagees and may be enforced by

the Mortgagee of any affected Unit.

If insurance proceeds are insufficient to

cover the costs of repair or reconstruction, the

Board may, without a vote of the membership,

levy Special Assessments to cover the shortfall

against those Owners responsible for the premi-

ums for the applicable insurance coverage under

Section 11.4.

Page 39

BK0884PG0091

EK: 905 PG:45

Chapter 10

Provision of Services

In addition to its property management role, the exist elsewhere in the Governing Documents Association is a vehicle for providing a variety of serrequiring the Association to provide such services for the benefit of the Community at large and vices.

individual Units. This Chapter describes some of the

services the Association may provide and the mecha 10.2. Provision of Services to Service Areas. nism by which it may provide varying levels and types (a) Service Areas Designated by Founder. of services to different areas of the Community. The Association shall provide services to Units 10.1. Provision of Services to Units. within any Service Area designated by the Founder pursuant to Section 3.2 as required by the The Association may arrange for or provide terms of this Charter and any Supplement appliservices to Owners and their Units, directly or cable to the Service Area.

through contracts with the Founder or other

third parties. The Association may enter into (b) Service Areas Designated by Board. In bulk service agreements by which a particular addition to Service Areas which the Founder may service is provided to all Units, or it may offer designate pursuant to Section 3.2, any group of various services at the option of each Owner, or Owners may petition the Board to designate both. By way of example and not limitation, their Units as a Service Area for the purpose of such services might include such things as cable receiving from the Association (i) special benefits television, community technology, utilities, fire or services which are not provided to all Units, or protection, security, including staffing of gate- (ii) a higher level of service than the Association house or other entryway features, trash collecotherwise provides. Any such petition shall be tion, landscape maintenance, pest control, rental signed by Owners of a majority of the Units management, and caretaker services. within the proposed Service Area. Upon receipt of such petition, the Board shall investigate the Any Association contract for services may reterms upon which the requested benefits or serquire individual Owners or occupants to execute vices might be provided and notify the Owners in separate agreements directly with the Persons the proposed Service Area of such terms and the providing components or services in order to initial fees for providing the requested service, gain access to or obtain specified services. Such which may include a reasonable administrative contracts and agreements may contain terms and charge. If Owners of at least 67% of the Units conditions that, if violated by the Owner or ocwithin the proposed Service Area approve the cupant of a Unit, may result in termination of proposal in writing, the Board shall designate the services provided to such Unit. Any such termiUnits as a Service Area and include the fees for nation shall not relieve the Owner of the consuch service as a line item in the Service Area tinuing obligation to pay assessments for any porbudget pursuant to Section 12.2(c).

tion of the charges for such service that are as-

sessed against the Unit as a Common Expense or 10.3. Community Technology.

Service Area Expense pursuant to Chapter 12. (a) Community Systems. The Founder may

In its discretion, the Board may discontinue provide, or may enter into and assign to the Asoffering particular services and may modify or sociation or cause the Association to enter into cancel existing contracts for services, subject to contracts with other Persons to provide, central the contract terms and any provision that may telecommunication receiving and distribution

Page 40

Provision of Services

8 0884PG0092 BK:905 PG:46 systems (e.g., cable television, high speed NOTES

data/Internet/intranet services, telephone, and

security monitoring) and related components,

including associated infrastructure, equipment,

hardware, and software, to serve the Community

(Community Systems"). Any such contracts

may provide for installation, operation, manage-

ment, maintenance, and upgrades or modifica-

tions to the Community Systems as the Founder

determines appropriate.

The Association may enter into a bulk rate

service agreement providing access to any such

Community System for all Units as a Common

Expense. If particular services or benefits are

provided to particular Owners or Units at their

request, the benefited Owner(s) shall pay the ser-

vice provider directly for such services, or the

Association may assess the charges as a Service

Area Assessment or Specific Assessment pursuant

to Chapter 12 and pay such charges to the pro-

vider on behalf of the Owners, as the Board

deems appropriate.

(b) Opportunities for Community Interac-

tion. The Association may make use of com-

puters, the Internet, and expanding technology

to facilitate community interaction and encour-

age participation in Association activities. For

example, the Association may sponsor a commu-

nity cable television channel, create and maintain

a community intranet or Internet home page,

maintain an "online" newsletter or bulletin

board, and offer other technology-related services

and opportunities for Owners and residents to

interact and participate in Association-sponsored

activities. To the extent Georgia law permits,

and unless otherwise specifically prohibited in

the Governing Documents, the Association may

send notices by electronic means, hold Board or

Association meetings and permit attendance and

voting by electronic means, and send and collect

assessment and other invoices by electronic

Page 41

BX0884PG0093

BK:905 PG:47

Chapter 11

Association Insurance

The Association is responsible for insuring against tion or any of its Members, employees, agents, or various types of risks, including property damage, percontractors while acting on its behalf. If genersonal injury, and liability. This Chapter describes the ally available at reasonable cost, such coverage minimum types and amounts of coverage that the Asshall have a limit of at least $5,000,000.00 per sociation must obtain, the specific requirements for occurrence with respect to bodily injury, personal such policies, and the handling of deductibles and preinjury, and property damage. Such coverage may miums for such insurance. be provided through a combination of primary and umbrella policies. However, if additional 11.1. Required Coverages. coverage and higher limits are available at reaThe Association shall obtain and maintain in sonable cost that a reasonably prudent person effect the following insurance coverage, if reawould obtain, the Association shall obtain such sonably available, or, if not reasonably available, additional coverage or limits;

the most nearly equivalent coverage as is rea-

sonably available: (c) Workers compensation insurance and employers liability insurance, if and to the extent (a) Blanket property insurance covering required by law;

"risks of direct physical loss" on a "special form"

basis (or comparable coverage by whatever name (d) Directors and officers liability coverage; denominated) for all insurable improvements on and

(i) the Common Area; (e) Commercial crime insurance, including fidelity insurance covering all Persons responsible for handling Association funds in an amount mility, to the exent that th determined in the Board's business judgment but Association has responsibility for repair or renot less than an amount equal to one-fourth of placement in the event of a casualty; and the annual Base Assessments on all Units plus reserves on hand. Fidelity insurance policies (iii) property within any Service Area, to shall contain a waiver of all defenses based upon the extent required by the Act or specified in any the exclusion of Persons serving without comapplicable Supplement. pensation.

If such coverage is not generally available at The Association shall arrange for an annual reasonable cost, then "broad form" coverage may review of the sufficiency of its insurance coverage be substituted. The limits of Association propby one or more qualified Persons, at least one of erty insurance policies shall be sufficient to cover whom must be familiar with insurable replacethe full replacement cost of the insured imment costs in the Barrow or Oconee County, provements under current building ordinances Georgia area, as applicable. In the exercise of its business judgment, the Board may obtain additional insurance coverage and higher limits than (b) Commercial general liability insurance this Section requires.

on the Area of Common Responsibility, insuring

the Association and its Members for damage or

injury caused by the negligence of the Associa-

Page 42

Association Insurance BK0884PG0094

BK:905 PG:48

11.2. Deductibles. (c) not be brought into contribution with The Association's policies may contain a reainsurance purchased by Owners, occupants, or sonable deductible, which shall not be subtracted their Mortgagees individually;

from the face amount of the policy in determin- (d) contain an inflation guard endorsement; ing whether the policy limits satisfy the require-

ments of Section 11.1. In the event of an in- (e) include an agreed amount endorsement, sured loss, the deductible shall be treated as a if the policy contains a co-insurance clause; Common Expense or a Service Area Expense in

the same manner as the premiums for the appli- (f) provide that each Owner is an insured cable insurance coverage under Section 11.4. person with respect to liability arising out of such However, if the Board reasonably determines, Owner's status as a member of the Association; after notice and an opportunity to be heard in

accordance with the By-Laws, that the loss is the (g) provide a waiver of subrogation against result of the negligence or willful misconduct of any Owner or household member of an Owner; one or more Owners, their guests, invitees, or and

lessees, then the Board may assess the full

amount of such deductible against such Owners) (h) include an endorsement precluding canand their Units as a Specific Assessment. cellation, invalidation, suspension,

renewal by the insurer on account of any act or Persons who cause damage in the Comomission of one or more Owners, unless acting munity may be held responsible for the insurance on the Association's behalf within the scope of deductible payable on any insurance claim retheir authority, or on account of any curable delated to such damage. fect or violation, without prior written demand to the Association and allowance of a reasonable 11.3. Policy Requirements. time to cure the defect or violation.

All Association policies shall provide for a In addition, the Board shall use reasonable certificate of insurance to be furnished to the efforts to secure insurance policies that list the Association and, upon request, to each Owner. Owners as additional insureds and provide: To the extent available at reasonable cost and (a) a waiver of subrogation as to any claims terms, all Association insurance shall: against the Association's directors, officers, em- . ployees, and manager;

(a) be written with a company authorized to

do business in Georgia which satisfies the re-

quirements of the Federal National Mortgage Subrogation is a legal concept by which Association or such other secondary mortgage one person is substituted in the place of another market agencies or federal agencies as the Board with respect to a lawful claim or right. For exdeems appropriate; ample, once they have paid a claim by an insured party, insurance companies generally have the (b) be written in the name of the Associaright to step into the shoes of the insured party tion as trustee for the benefited parties. All poliand sue anyone the insured party could have cies shall be for the benefit of the Association

and its members, except that policies on Limited

Common Area shall be for the benefit of the (b) a waiver of the insurer's right to repair Owners of Units within the Service Area to and reconstruct instead of paying cash;

which the Limited Common Area is assigned and

their Mortgagees, as their interests may appear;

Page 43

Association Insurance BK0884PG0095

EK: 905 PG:49 (c) an endorsement excluding Owners' indi-

vidual policies from consideration under any

"other insurance" clause;

(d) an endorsement requiring at least 30

days' prior written notice to the Association of

any cancellation, substantial modification, or

non-renewal;

(e) a cross liability provision; and

(f) a provision vesting in the Board exclusive

authority to adjust losses. However, Mortgagees

having an interest in such losses may not be pre-

cluded from participating in the settlement nego-

tiations, if any, related to the loss.

11.4. Insurance Premiums.

Premiums for all Association insurance shall

be a Common Expense, except that premiums

for property insurance on Units within, or Lim-

ited Common Areas assigned to, a particular Ser-

vice Area shall be a Service Area Expense unless

the Board reasonably determines that other

treatment of the premiums is more appropriate.

NOTES

Page 44

BK0884PG0096

EK: 905 PG:50

Chapter 12

Association Finances

This Chapter provides for various types of funding (b) Service Area Expenses. All expenses to cover expenses that the Association incurs or expects that the Association incurs or expects to incur in to incur in exercising its authority and performing its connection with the ownership, maintenance responsibilities under the Governing Documents. The and operation of Limited Common Areas, or in primary source of funding is the assessments which this providing other benefits and services to a Service Chapter authorizes the Association to levy against the Area, including any operating reserve or reserve Units and collect from the Owner of each Unit. Asfor repair and replacement of capital items mainsessments are secured by a lien on each Unit as detained for the benefit of the Service Area, are scribed in this Chapter. considered "Service Area Expenses." Service

Area Expenses may include a reasonable adminis12.1. Association Expenses. trative charge in such amount as the Board (a) Common Expenses. Except as the Govdeems appropriate, provided that any such aderning Documents otherwise specifically provide, ministrative charge is applied at a uniform rate all of the expenses that the Association incurs, or per Unit among all Service Areas receiving the expects to incur, in connection with the ownersame service.

ship, maintenance, operation, and improvement

of the Area of Common Responsibility and oth12.2. Budgeting for and Allocating Associaerwise for the general benefit of the Owners, are tion Expenses.

considered "Common Expenses." Common Ex- (a) Preparation of Budget. At least 60 days penses include such operating reserves and rebefore the beginning of each fiscal year, the serves for repair and replacement of capital items Board shall prepare a budget of the estimated within the Area of Common Responsibility as Common Expenses for the coming year. In addithe Board finds necessary or appropriate. tion, the Board shall prepare a separate budget for each Service Area reflecting the estimated Common Expenses shall not include any exService Area Expenses that the Association expenses incurred during the Founder Control Pepects to incur for the benefit of such Service Area riod for initial development or original construcin the coming year.

tion costs unless Voting Delegates entitled to cast

a majority of the total votes in the Association The estimated expenses in each budget shall approve such expenditure. Payments due under include, in addition to any operating reserves, a leases of capital improvements such as streetlights reasonable contribution to a reserve fund for reshall not be considered an initial development or pair and replacement of any capital items to be original construction cost. maintained as a Common Expense or as a Service Area Expense of the Service Area for whom The characterization of a particular expense the budget is prepared, as applicable. In deteras a "Common Expense" shall not preclude the mining the amount of such reserve contribution, Association from seeking reimbursement for, or a the Board shall take into account the number contribution toward, such expenses from other and nature of replaceable assets, the expected Persons who may be responsible for the expenses useful life of each, the expected repair or reincurred or for sharing such expenses pursuant placement cost, and the contribution required to to this Charter, any Supplement, or any other fund the projected needs by annual contributions recorded covenants or agreements. over the useful life of the asset.

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Each budget shall also reflect the sources and structures, insurance on structures, or replaceestimated amounts of funds to cover such exment reserves which pertain to particular strucpenses, which may include any surplus to be aptures may be levied on each of the benefited plied from prior years, any income expected from Units in proportion to the benefit received, as sources other than assessments levied against the the Board may reasonably determine.

Units, and the amount to be generated through

the levy of Base Assessments and Service Area All funds that the Association collects as SerAssessments pursuant to subsections (b) and (c). vice Area Assessments shall be accounted for separate from the Association's general funds and (b) Calculation of Base Assessments. The shall be expended solely for the benefit of the total budgeted Common Expenses, less any surService Area for which they were collected. plus in the Common Expense budget from prior

years and any income anticipated from sources (d) Notice of Budget and Assessment; other than assessments against the Units, shall be Pined to Right to Disapprove. Within 30 days after the allocated among all Units subject to assessment Board adopts any budget, the Board shall send a under Section 12.5 and levied as a "Base Assesssummary of the budget, together with notice of ment." Base Assessments shall be levied at a unithe amount of the Base Assessment or any Serform rate per Unit, except as otherwise provided vice Area Assessment to be levied pursuant to in Section 12.5. such budget, to the Owner of each Unit responsible for a share of the expenses covered by such The Founder may, but shall not be obligated budget. The Common Expense budget shall to, reduce the Base Assessment for any fiscal year automatically become effective unless disapby payment of a subsidy. Any such subsidy may proved at a meeting by Voting Delegates reprebe treated as a contribution, an advance against senting at least 75% of the total votes in the Asfuture assessments due from the Founder, or a sociation and by the Founder, during the Develloan, in the Founder's discretion. Any such subopment and Sale Period. Each Service Area sidy and the characterization thereof shall be budget shall automatically become effective conspicuously disclosed as a line item in the inunless disapproved at a meeting by Owners of at come portion of the budget. Payment of such least 75% of the Units within the Service Area subsidy in any year shall not obligate the Founder and by the Founder, during the Development to continue payment of such subsidy in future and Sale Period. There shall be no obligation to years, unless otherwise provided in a written call a meeting to consider the budget except on agreement between the Association and the petition of the membership for a special meeting Founder. pursuant to the By-Laws.

(c) Calculation of Service Area AssessIf any proposed budget is disapproved or the ments. The total Service Area Expenses budgBoard fails for any reason to determine the eted for each Service Area, less any surplus in budget for any year, then the budget most resuch Service Area budget from prior years, shall cently in effect shall continue in effect until a be allocated among all Units in the Service Area new budget is ratified.

that are subject to assessment under Section 12.5

and levied as a "Service Area Assessment." Ex- (e) Budget Revisions. The Board may revise cept as otherwise specified in Section 12.5 or in the budget and adjust the Base Assessment or any Supplement applicable to a Service Area, Service Area Assessments any time during the Service Area Assessments shall be set at a uniyear, subject to the same notice requirements and form rate per Unit in the Service Area. A suprights to disapprove set forth in subsection (d) plement may provide that any portion of the asabove.

sessment intended for exterior maintenance of

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such times as the Board determines and may be Association Funds payable in installments extending beyond the

General Operating Fund

Service Area Operating Funds fiscal year in which the Special Assessment is apReserve Funds for Repair and Replacement of

Capital Items proved.

Primary Sources of Income Base Assessments

Service Area Assessments 12.4. Specific Assessments.

Special Assessments The Association may levy Specific AssessSpecIfic Assessments

Founder Subsidy (If any) ments against a particular Unit as follows: One-time Contributions to Working Capital

Secondary Sources of Income Facilities Rental (a) to cover the costs, including overhead

Monetary Penaltles and administrative costs, of providing services to Interest on Reserves and the Unit upon request of the Owner pursuant to Delinquent Assessments any menu of optional services which the AssociaLate Charges

tion may offer (which might include the items identified in Section 10.1). Specific Assessments (f) Surplus Funds. Any surplus funds of for optional services may be levied in advance of the Association remaining after payment of or the provision of the requested service;

provision for all Association expenses and any

prepayment of or provision for reserves shall be (b) to cover costs incurred in bringing the taken into account in the income portion of the Unit into compliance with the Governing budget pursuant to which the funds were colDocuments or costs incurred as a consequence of lected, in order to reduce the assessments that the conduct of the Owner or occupants of the would otherwise be levied pursuant to that Unit, their agents, contractors, employees, licenbudget in the succeeding year. sees, invitees, or guests; however, the Board shall 12.3. Special Assessments. give the Unit Owner prior written notice and an opportunity for a hearing in accordance with the The Association may levy "Special AssessBy-Laws before levying any Specific Assessment ments" to cover Common Expenses or Service under this subsection (b); and

Area Expenses that are non-routine, unantici-

pated, or in excess of those anticipated in the (c) to cover the Unit's pro rata share of any applicable budget. Except as otherwise specificosts that the Association incurs in bringing the cally provided in this Charter, any Special AsNeighborhood of which the Unit is a part into sessment for Common Expenses shall require the compliance with the provisions of the Governing affirmative vote or written consent of Voting Documents; however, the Board must give prior Delegates entitled to cast more than 50% of the written notice to the Owners of Units in the votes attributable to Units subject to assessment Neighborhood and an opportunity for such under Section 12.5 and shall be allocated equally Owners to be heard before levying any such asamong all such Units. Any Special Assessment sessment.

for Service Area Expenses shall require the af-

firmative vote or written consent of Owners rep12.5. Authority to Assess Owners; Time of resenting more than 50% of the total votes allo Payment.

cated to Units in the benefited Service Area and The Founder hereby establishes and the Asshall be allocated in the same manner as Service sociation is hereby authorized to levy assessments Area Assessments under Section 12.1(c). In adas provided for in this Chapter and elsewhere in dition, during the Development and Sale Period, the Governing Documents. The obligation to any Special Assessment shall also be subject to pay assessments shall commence as to each Unit the Founder's written consent. Special Assesson the first day of the month following the ments shall be payable in such manner and at

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BK:905 PG:53 month in which the Association first adopts and Board resolution, costs, and reasonable attorneys ratifies a budget or the month in which the Unit fees, shall be the personal obligation of each is made subject to this Charter, whichever is Owner and a lien upon each Unit until paid in later, except that (a) until the earlier of (i) 12 full. Upon a transfer of title to a Unit, the months after the date of conveyance of the Unit grantee shall be jointly and severally liable for any by the Founder, or (ii) issuance of a certificate of assessments and other charges due at the time of occupancy for or actual occupancy of a dwelling conveyance.

on a Unit for residential purposes, the Unit shall

be assessed at 25% of the full Base Assessment The Board's failure to fix assessment rate, and (b) any part of a Service Area Assessamounts or rates or to deliver or mail each ment allocated to maintenance, replacement or Owner an assessment notice shall not be deemed insurance of any portion of Units within the Sera waiver, modification, or a release of any Owner vice Area shall commence upon issuance of a from the obligation to pay assessments. In such certificate of occupancy or actual occupancy of event, each Owner shall continue to pay Base the Unit for residential purposes, whichever is Assessments and Service Area Assessments on earlier. The first annual Base Assessment and the same basis as during the last year for which Service Area Assessment, if any, levied on each an assessment was made, if any, until a new asUnit shall be adjusted according to the number sessment is levied, at which time the Association of months remaining in the fiscal year at the time may retroactively assess any shortfall.

assessments commence on the Unit.

No Owner may exempt himself or herself Assessments shall be paid in such manner from liability for assessments by non-use of and on such dates as the Board may establish. Common Area, abandonment of his or her Unit, The Board may require advance payment of asor non-use of services provided to all Units or to sessments at closing of the transfer of title to a all Units within the Service Area to which the Unit and impose special requirements for OwnUnit is assigned. The obligation to pay assessers with a history of delinquent payment. If the ments is a separate and independent covenant on Board so elects, assessments may be paid in two the part of each Owner. No diminution or or more installments. Unless the Board otherabatement of assessments or set-off shall be wise provides, the Base Assessment and any Serclaimed or allowed for any alleged failure of the vice Area Assessment shall be due and payable in Association or Board to take some action or peradvance on the first day of each fiscal year. form some function required of it, or for inconvenience or discomfort arising from the making If any Owner is delinquent in paying any asof repairs or improvements, or from any other sessments or other charges levied on his Unit, action it takes.

the Board may require the outstanding balance

on all assessments to be paid in full immediately.

By buying a Unit in the Community 12.6. Obligation for Assessments. each Owner agrees to pay all assessments levied against his or her Unit. If the Owner does not (a) Personal Obligation. pay on time, the Owner will be charged late fees deed or entering into a recorded contract to purand interest on all past due amounts. Owners chase any Unit, each Owner covenants and may not reduce their assessments because of any agrees to pay all assessments authorized in the action or inaction by the Association.

Governing Documents. All assessments, together

with interest (computed from its due date at a (b) Assessment Statement. Within seven rate of 10% per annum or such higher rate as the days after receipt of a written request from any Board may establish, subject to the limitations of Owner, Mortgagee, prospective Mortgagee, or Georgia law), late charges as determined by

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prospective purchaser of a Unit, delivered perHowever, the failure of the Association to exesonally or sent by certified mail, first-class postage cute and record any such document shall not prepaid, return receipt requested to the Associaaffect the validity, enforceability, or priority of tion's registered agent or designee, the Associathe lien.

tion shall issue a written statement setting forth

the amount of any unpaid assessments with re- (b) Enforcement of Lien. The Association spect to such Unit, the amount of current perimay bid for the Unit at the foreclosure sale and odic assessments and the date on which such acquire, hold, lease, mortgage, and convey the assessment becomes or became due, and any Unit. While a Unit is owned by the Association credit for advanced payments or prepaid items. following foreclosure: (i) no right to vote shall be Such statement shall be delivered personally or exercised on its behalf; (ii) no assessment shall be by certified mail, first-class postage prepaid, relevied on it; and (iii) each other Unit shall be turn receipt requested. charged, in addition to its usual assessment, its pro rata share of the assessment that would have The Association may require the payment of been charged such Unit had it not been acquired a reasonable processing fee for issuance of such by the Association. The Association may sue for statement. Such statement shall be binding upon unpaid assessments and other charges authorized the Association as to Persons who rely thereon in hereunder without foreclosing or waiving the lien good faith. securing the same, in addition to pursuing any and all remedies allowed by law to enforce the 12.7. Lien for Assessments.

(a) Existence of Lien. The Association shall

have a lien against each Unit to secure payment In order to secure the obligation of each of assessments, as well as interest, late charges Owner to pay its share of Association expenses, (subject to the limitations of Georgia law), and the Association has a lien against each Unit. If costs of collection (including attorneys fees and an Owner does not pay his or her assessments on expenses). Such lien shall be superior to all other time, the Association may foreclose the lien on liens, except (i) liens and encumbrances recorded such Owner's Unit, causing it to be sold to pay •prior to this Charter and which the Association the past due assessments. The Association may has assumed or taken subject to; (ii) the liens of also sue an Owner in court to recover past due all real estate taxes and other governmental asassessments.

sessments or charges, and (iii) the lien or charge

of any Mortgage made in good faith and for value (c) Effect of Sale or Transfer. Sale or transhaving first priority over any other Mortgages on fer of any Unit shall not affect the assessment the Unit and recorded prior to the assessment lien or relieve such Unit from the lien for any becoming delinquent, except that the Associasubsequent assessments. However, the sale or tion's lien shall have priority over any such Morttransfer of any Unit pursuant to foreclosure of a gage to the extent of assessments that would have first Mortgage having priority over the Associabecome due in the absence of acceleration during tion's lien pursuant to Section 12.7 (a) shall extinthe six months immediately preceding any judiguish the lien as to any installments of such ascial or nonjudicial foreclosure of the Mortgage. sessments due prior to the Mortgagee's foreclo sure. The subsequent Owner of the foreclosed The Association may, as further evidence and Unit shall not be personally liable for assessments notice of the lien, execute and record a docuon such Unit due prior to such acquisition of ment setting forth as to any Unit the amount of title. Such unpaid assessments shall be deemed the delinquent sums due the Association at the to be Common Expenses collectible from Owntime such document is executed and the fact that ers of all Units subject to assessment under Seca lien exists to secure the repayment thereof.

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tion 12.5, including such acquirer, its successors 12.10. Use and Consumption Fees.

and assigns. The Board may charge use and consumption 12.8. Exempt Property. fees to any Person using Association services or facilities and may determine the amount and The following property shall be exempt from method of determining such fees. Different fees payment of Base Assessments, Service Area Asmay be charged to different classes of users (e.g., sessments, and Special Assessments: Owners and non-Owners).

(a) All Common Area and such portions of 12.11 Community Enhancement Fee. the property owned by the Founder or a Founder

Affiliate as are included in the Area of Common (a) Authority. As an additional funding Responsibility; source, the Board may establish and collect a

Community Enhancement Fee upon each trans- (b) Any property dedicated to and accepted fer of title to a Unit, except such transfers as are by any governmental authority or public utility; exempt under Section 12.11(d). The fee shall be and in an amount determined pursuant to Section

12.11(c), shall be charged to the seller of the (c) Property owned by any Additional AssoUnit and shall be payable to the Association at ciation for the common use and enjoyment of its the closing of the transfer. The fee shall constimembers, or owned by the members of an Additute an assessment against the Unit being transtional Association as tenants-in-common. ferred and shall be secured by the Association's lien for assessments under Section 12.7. Each In addition, the Association may, by resoluOwner shall notify the Association's Secretary or tion, grant exemptions to certain Persons qualifydesignee at least seven days prior to the scheding for tax-exempt status under Section 501(c) of uled closing and provide the name of the buyer, the Internal Revenue Code so long as such Perthe date of title transfer, and other information sons own property subject to this Charter for the Board may reasonably require.

purposes listed in Section 501(c) of the Internal

Revenue Code. (b) Purpose. The Community Enhancement Fees shall be placed in a segregated account 12.9. Capitalization of Association. and used to provide funding for activities and The first Owner of each Unit other than the such other purposes as the Board, or a committee Founder, a Founder Affiliate, or a Builder desigthat it appoints, deems beneficial to the general nated by the Founder, shall make a contribution good and welfare of residents of The Georgia to the working capital of the Association in an Club and the larger community. For example, amount equal to one-sixth of the annual Base Community Enhancement Fees might be used to Assessment per Unit for that year. This amount sponsor or fund, or to assist one or more taxshall be in addition to, not in lieu of, the annual exempt entities in sponsoring or funding: Base Assessment and any Service Area Assess-

ment levied on the Unit and shall not be consid- (i) cultural, artistic, and educational ered an advance payment of such assessments. programs;

This amount shall be due and payable to the As (ii) festivals and holiday celebrations sociation immediately upon transfer of title, for and activities;

its use in covering initial start-up expenses, oper-

ating expenses and other expenses that it incurs (iii) listings of community services for pursuant to this Charter and the By-Laws. the benefit of residents of The Georgia Club and

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the surrounding community (e.g., caretaker sercitizens of the greater Athens, Georgia area and vices, childcare, personal shopping services, etc.); the community at large, including residents of

The Georgia Club.

(iv) computer Internet or intranet sites

and community-wide video and technology; Community Enhancement Fees shall not be used to engage in any political activity, including (v) learning centers and computer cenlobbying, protesting, or taking or asserting a positers; tion in any zoning matter.

(vi) charter clubs and other volunteer Subject to this Section 12.11, the Board's organizations and activities; judgment in determining the allocation and expenditure of such funds shall be final so long as (vii) donations to civic and educational such judgment is exercised in good faith, and the foundations or trusts; Association, its directors, and officers shall not be liable to any Person for any error in judgment or (viii) environmental programs (for examany action or inaction relating to the expenditure ple, community-wide recycling; of such funds, except that nothing in this Section

(ix) social activities and recreational shall relieve any person of liability for gross negligence or willful misconduct in the handling of leagues; such funds.

(x) social services, community outreach (c) Fee Determination. The Board shall programs, and other charitable causes; have the sole discretion to determine the amount

(xi) operation and preservation of hisof and method of calculating the Community torical and archaeological sites; Enhancement Fee. The fee may be based upon a sliding scale that varies according to the "gross (xii) preservation and maintenance of sales price" of the property or any other factor the natural areas, wildlife preserves, or similar conBoard deems appropriate. However, the Comservation areas and sponsorship of educational munity Enhancement Fee may not exceed threeprograms and activities that contribute to the tenths of one percent (0.3%) of the Unit's gross overall understanding, appreciation, and presersales price, or in the case of a transfer other than vation of the natural environment within and a sale at fair market value, three-tenths of one surrounding The Georgia Club; percent (0.3%) of the appraised value of the real property being transferred, as determined by Bar- (xiii) wellness programs; and row or Oconee County, as applicable, for real estate ad valorem tax purposes. The "gross sales (xiv) other services, activities and proprice," for purposes of this section, shall mean grams designed to enhance the welfare and lifethe total amount paid by the purchaser for the style of residents and the sense of community real property, excluding customary closing costs. within and outside of The Georgia Club.

(d) Exempt Transfers. Notwithstanding the The Board may, in its discretion, contribute above, no Community Enhancement Fee shall be up to 50% of the Community Enhancement Fees levied upon transfer of title to a Unit:

collected in any year to The University of Geor-

gia Foundation through The University of Geor- (i) by or to the Founder;

gia Alumni Association, Inc., in recognition and

support of the benefits and services that The

University of Georgia Foundation provides to

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EK:905 PG:57 (ii) by a Builder designated by the

Founder who held title solely for purposes of de-

velopment and resale;

(iiil) by a co-Owner to any Person who

was a co-Owner immediately prior to such trans-

fer;

(iv) to the Owner's estate, surviving

spouse, or heirs at law upon the death of the

Owner;

(v) to an entity wholly owned by the

grantor or to a family trust created by the grantor

for the benefit of grantor, his or her spouse,

and/or heirs at law; provided, upon any subse-

quent transfer of an ownership interest in such

entity, the Community Enhancement Fee shall

become due;

(vi) to an institutional lender pursuant

to a Mortgage or upon foreclosure of a Mortgage;

or

(vii) under circumstances which the

Board, in its discretion, deems to warrant classifi-

cation as an exempt transfer (e.g., a transfer made

solely for estate planning purposes may be, but is

not required to be, deemed exempt from pay-

ment of the Community Enhancement Fee).

NOTES

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PART FOUR: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY

Recognizing that it certainly isn't true of all of us, I would propose that a Southerner is distinguished by a sense of neighborliness, a garrulous quality, a wish to get together a lot.

• Charles Kuralt in "Southerners: Portrait of a People"

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BX0884PG0105 BK:905 PG:59 Chapter 13

Easements

The easements created in this Chapter establish other use fees for the use of any recreational facilthe rights of Owners to use the Common Area and ity situated upon the Common Area;

create various rights for the benefit of owners, the

Founder, the Association, and others over property (v) rent any portion of any clubhouse, within the Community. Some of these rights are remeeting house, or other Common Area recrealated to development and construction within the tional facilities on an exclusive or non-exclusive Community and on adjacent property. Others relate short-term basis to any Person;

to the rights of the Association to come upon property

of others to fulfill its responsibilities. (vi) permit use of any recreational facilities situated on the Common Area by persons 13.1. Easements in Common Area. who do not own property subject to this Charter

The Founder grants to each Owner a nonexor reside in the Community, which use may be clusive right and easement of use, access, and subject to admission charges, membership fees, enjoyment in and to the Common Area, subject or other user fees established in the Board's disto: cretion; and

(a) the Governing Documents and any other (vii) mortgage, pledge, or hypothecate applicable covenants; any or all of its real or personal property as security for money borrowed or debts incurred. (b) any restrictions or limitations contained

in any deed conveying such property to the Asso- (e) a perpetual, nonexclusive easement over ciation; the Common Area hereby reserved by the Founder for the benefit of such persons as the Foun- (c) certain Owners' rights to the exclusive der may designate at any time prior to expiration use of those portions of the Common Area desof the Development and Sale Period by recorded ignated "Limited Common Area," if any; instrument, to use and enjoy such portions of the

Common Area as the Founder may designate (d) the Board's right to: upon payment to the Association of reasonable use fees, as specified in such recorded instru- (i) adopt rules regulating Common ment.

Area use and enjoyment, including rules limiting

the number of guests who may use the Common Any Owner may extend his or her right of Area, and to charge use fees for such use; use and enjoyment to the members of his or her family, lessees, and social invitees, as applicable, (ii) suspend an Owner's right to use subject to reasonable Board regulation. An Common Area facilities; Owner who leases his or her entire Unit (as opposed to leasing only a garage apartment, in-law (iii) dedicate or transfer all or any part suite, or guest house authorized pursuant to Secof the Common Area, subject to such approval tion 7.1(b)) shall be deemed to have assigned all requirements as may be set forth in this Charter; such rights to the lessee of such Unit for the period of the lease.

(iv) impose reasonable membership re-

quirements and charge reasonable admission or

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EK: 905 PG:60 (iii) inspecting, maintaining, repairing, An easement is one person's right to go and replace the utilities, infrastructure, and other onto or do something on the property of animprovements described above; and

other.

(iv) access to read, maintain, and repair 13.2. Easements of Encroachment. utility meters.

The Founder grants reciprocal appurtenant

easements of encroachment, and for mainteNotwithstanding the above, the Founder renance and use of any permitted encroachment, serves the right to deny access to any utility or between each Unit and any adjacent Common service provider, to the extent permitted by law, Area and between adjacent Units. A permitted and to condition such access on negotiated encroachment is a structure or fixture that exterms.

tends unintentionally from one person's property (b) Specific Easements. The Founder also onto another's a distance of not more than one

foot, as measured from any point on the comreserves the non-exclusive right and power to mon boundary along a line perpendicular to such grant and record such specific easements, consisboundary. An encroachment easement shall not tent with Section 13.3(a), as it deems necessary or exist if the encroachment results from willful and appropriate to develop the property described in knowing conduct on the part of, or with the Exhibits "A" and "B.' The location of the specific knowledge and consent of, the Person claiming easement shall be subject to the written approval the benefit of such easement. of the Owner of the burdened property, which approval shall not unreasonably be withheld, delayed, or conditioned.

An encroachment occurs when a person's

home, fence, or other structure extends onto his (c) Minimal Interference. All work associor her neighbor's property. This Section permits ated with the exercise of the easements described minor, unintentional encroachments to remain. in subsections (a) and (b) of this Section shall be performed so as to minimize interference with 13.3. Easements for Utilities, Etc. the use and enjoyment of the property burdened (a) Installation and Maintenance. by the easement. Upon completion of the work,

The the Person exercising the easement shall restore Founder reserves for itself, its successors, assigns, the property, to the extent reasonably possible, to and designees, perpetual exclusive easements the condition existing prior to the commencethroughout the Community (but not through a ment of the work. The exercise of these easestructure) for the purpose of: ments shall not extend to permitting entry into

(i) installing utilities and infrastructhe structures on any Unit, nor shall it unreature, Community Systems, security and similar sonably interfere with the use of any Unit and, systems, and drainage systems to serve the Comexcept in an emergency, entry onto any Unit munity; shall be made only after reasonable notice to the

Owner or occupant.

(ii) installing walkways, pathways and 13.4. Easements to Serve Additional Property. trails, street lights, and signage on property the

Founder or the Association owns or within pubThe Founder hereby reserves for itself and its lic rights-of-way or easements reserved for such duly authorized agents, successors, assigns, and purpose on a recorded plat; Mortgagees, an easement over the Common Area for the purposes of enjoyment, use, access, and development of the property described in Exhibit "B," whether or not such property is made

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EK:905 PG:61 subject to this Charter. This easement includes, 13.6. Easements for Lake and Pond Maintebut is not limited to, a right of ingress and egress nance and Flood Water.

over the Common Area for construction of roads The Founder reserves for itself, the Associaand for connecting and installing utilities on tion, and their successors, assigns, and designees, such property. The Person exercising such easea perpetual, nonexclusive right and easement of ment rights shall be responsible for any damage access over the Common Area and Units (but caused to the Common Area as a result of their not the dwellings thereon) adjacent to or within actions in connection with development of such 50 feet of bodies of water and wetlands within property. the Community, in order to perform lake mainIf the above easement grants permanent actenance and repair; remove dead or diseased cess to any property which is not submitted to trees, shrubs, and plants; and control any condithis Charter, the Founder, or its successors or tion or remove any thing that constitutes a poassigns, shall enter into a reasonable agreement tential health or safety hazard. All persons entiwith the Association to share the cost of maintetled to exercise this easement shall use reasonable nance that the Association provides for the benecare in and repair any damage resulting from the fit of the easement holder. The shared mainteintentional exercise of such easement. Nothing nance costs may include maintenance to or along herein shall be construed to make the Founder any roadway providing access to the benefited or any other Person liable for damage resulting property. from flooding due to weather events or other natural occurrences.

13.5. Easements for Maintenance, Emergency,

and Enforcement. The Founder and the Association have By this Charter, the Founder grants to the the right to access property adjacent to lakes, Association easements over the Community as ponds, streams and wetlands for maintenance necessary to enable the Association to perform purposes.

maintenance under Section 9.2 and exercise its

enforcement rights under Section 8.2. The As13.7. Easements Related to Golf Course. sociation shall also have the right, but not the The Founder hereby creates an easement obligation, to enter upon any Unit for emerover portions of the Community adjacent to or gency, security, and safety reasons, to perform in the vicinity of any golf course to permit golf maintenance, to inspect for compliance with the balls unintentionally to come upon areas adjaGoverning Documents, and to enforce the Govcent to or in the vicinity of a golf course, and for erning Documents. Any member of the Board golfers at reasonable times and in a reasonable and its duly authorized agents and assignees and manner to come upon the Common Area, comall emergency personnel in the performance of mon property of an Additional Association, or their duties may exercise such right. Except in an the exterior portions of a Unit to retrieve errant emergency situation, entry shall only be during golf balls. However, if any Unit is fenced or reasonable hours and after notice to the Owner. walled, the golfer shall seek the Owner's permission before entry. The existence of this easement The Association may come onto a Unit to shall not relieve golfers of liability for damage perform maintenance or to address violations of caused by errant golf balls.

the covenants, but will give prior notice unless

there is an urgent need to enter the property. Under no circumstances shall any of the following Persons be held liable for any damage or injury resulting from errant golf balls or the exercise of this easement: the Founder, its successors,

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Easements 8K0884PG0108

BK:905 PG:62

successors-in-title to the golf course, or assigns; The owner of any golf course within or adjathe Association or its Members (in their capacicent to any portion of the Community, its sucties as such); Barber Creek Land Company, its cessors and assigns, shall have a perpetual, exclusuccessors, successors-in-title to the golf course, or sive easement of access over the Community for assigns any builder or contractor (in their capacithe purpose of retrieving golf balls from bodies of ties as such); any officer, director, or partner of water within the Common Areas lying reasonably any of the foregoing, or any officer or director of within range of golf balls hit from its golf course. any partner.

The owner of any golf course within or adjaIf the golf course is close to your Unit, cent to any portion of the Community, its sucyou can expect that golf balls and people will cessors and assigns shall have a perpetual easecome near or on your Unit. This Section puts ment for the construction and use of cart paths Owners on notice that activities relating to the adjacent to or in the vicinity of a golf course. golf course will affect Units next to the golf Said easement shall allow the construction of cart course.

paths through the Common Area or Unit, except

no structure on a Unit shall be affected. In addi13.8. Easements Over Private Roadways. tion, the members and guests of any golf club (a) Not later than the expiration of the Dewithin or adjacent to a portion of the Commuvelopment and Sale Period, the Founder will nity shall have the right, during normal hours of transfer the private roadways within the Complay, to access and use such cart paths throughmunity ("Roadways") to the Association as out the Community. Common Area, subject to the easements for access described in this Charter, easements previThe owner of any golf course within or adjaously created for the benefit of property adjacent cent to any portion of the Community, its agents, to the property described on Exhibits "A" and successors and assigns, shall at all times have a "B," and such additional easements as the Founright and non-exclusive easement of access and der deems appropriate. Use of such Roadways use over those portions of the Common Areas or shall be subject to and in accordance with any Units reasonably necessary to the operation, rights and easements shown on the recorded maintenance, repair, and replacement of its golf subdivision plats of the Community and such course and cart path, including an exclusive reasonable Use Restrictions and Rules as the Aseasement to pump water from lakes or ponds sociation may adopt from time to time consistent within the Common Area for purposes of irrigatwith this Charter, the recorded subdivision plats, ing the golf course and for the installation, inand any law, ordinance, or regulation governing spection, maintenance, repair and replacement the Community.

of lines and pumps serving as part of its irrigation

system. (b) The Founder hereby reserves for itself, its agents, employees, successors, assigns, and other Any portion of the Community immediately persons it may designate, an easement over the adjacent to any golf course is hereby burdened Roadways for the purpose of constructing, mainwith a non-exclusive easement in favor of the taining, repairing, or rebuilding any subdivision adjacent golf course for overspray of water from improvements installed or to be installed in the the irrigation system serving such golf course. Community and for performing any other work Under no circumstances shall the Association within the Community which the Founder or the owner of such golf course be held liable deems reasonably necessary, in its discretion, or for any damage or injury resulting from such which the Founder is required to perform pursuoverspray or the exercise of this easement. ant to a contract with any Owner or pursuant to the requirements of any government agency hav-

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310884P60 109 Easements

BK: 905 PG:63

ing jurisdiction over the Community. The Amenities. Without limiting the generality of Founder hereby authorizes the contractors, subthe foregoing, members of the Private Amenities contractors, laborers, materialmen, and other and guests and invitees of the Private Amenities Persons providing construction services and mashall have the right to park their vehicles on the terials to any Unit to exercise this easement for Roadways at reasonable times before, during, and access to such Unit, subject to such rules as the after tournaments and other similar functions Association may adopt; however, during the held by or at the Private Amenities, to the extent Development and Sale Period, the Founder shall that the Private Amenities have insufficient parkhave the right to restrict use of all or portions of ing to accommodate such vehicles.

the Roadways and designate alternate access for

such Persons, and to revoke such authorization (f) The existence of the easements described and prohibit the use of the Roadways by Persons in this Section shall not preclude the Association who violate the Governing Documents or any from maintaining gates or other devices or sysagreement with the Founder. tems designed to limit general vehicular access to the Community, provided that the Association at (c) The Founder hereby creates a perpetual, all times maintains systems and/or procedures to nonexclusive easement for access, ingress, and permit entry of Persons authorized to exercise the egress over the Roadways for law enforcement, easements granted in this subsection without fire fighting, paramedic, rescue, and other emerunreasonable interference or delay.

gency vehicles, equipment, and personnel; school

buses; U.S. Postal Service delivery vehicles and NOTES

personnel; utility providers; and vehicles, equip-

ment, and personnel providing garbage collection

service to the Community; however, such ease-

ment shall not authorize any such Persons to en-

ter the Community except while acting in their

official capacities. The Association shall have the

right to limit access for garbage collection pur-

poses to such days of the week as the Board may

specify.

(d) Founder reserves for itself and Founder

Affiliates a perpetual, non-exclusive easement of

access to and use of the Roadways and Common

Areas in connection with the marketing and sale

of other communities which Founder or any

Founder Affiliate may be developing and market-

ing, in order to show the Community as an ex-

ample of the Founder's developments.

(e) The Founder hereby establishes for the

benefit of the Private Amenities and their mem-

bers (regardless of whether such members are

Owners hereunder), guests, invitees, employees,

agents, contractors, and designees, a right and

nonexclusive easement of access and use over all

Roadways reasonably necessary to travel between

the entrance to the Community and the Private

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Chapter 14

Private Amenities

Various recreational and other facilities located Ownership or operation of any Private within or in the vicinity of the Community are pri Amenity may change at any time. This may be vately owned and operated by Persons other than the for different reasons, such as (a) the sale to or Association. Those facilities are not part of the Comassumption of operations by an independent Permon Area of the Community, and ownership of propson, (b) establishment of, or conversion of the erty in the Community does not give any person the membership structure to, an "equity" club or right to use them. This Chapter explains the right of similar arrangement whereby the members of a the owners of those facilities to determine if and on Private Amenity or an entity owned or controlled what terms they wish to make their facilities available by its members become the owner(s) and/or opfor use by Owners. erator(s) of the Private Amenity, or (c) the conveyance of a Private Amenity to one or more 14.1. General. Founder Affiliates. No consent of the Associa-

Any property and facilities located within, tion, any Additional Association, any Voting adjacent to, or near the Community which PerDelegate, or any Owner shall be required to efsons other than the Association own and operate fectuate any change in ownership or operation of for recreational and related purposes are "Private any Private Amenity, subject to the terms of any Amenities." The Private Amenities shall include, written agreements entered into by such owners. without limitation, the golf course and clubhouse

operated as The Georgia Club, and may include Rights to use the Private Amenities will be any pool, fitness center, spa facilities, tennis granted only to such persons, and on such terms courts), and meeting house located in the "Viland conditions, as may be determined by their lage Area" delineated on Exhibit "A," and their respective owners. Such owners shall have the related and supporting facilities and improveright, from time to time in their sole and abso ments. lute discretion and without notice, to amend or waive the terms and conditions of use of their No Person gains any right to enter or to use respective Private Amenities and to terminate use any Private Amenity by virtue of membership in rights altogether.

the Association or ownership or occupancy of a

Unit. Access to and use of any Private Amenity 14.2. Design Control.

is strictly subject to the rules and procedures of No person shall approve any improvement to the owner of such Private Amenity. any portion of the Community which is adjacent to or otherwise in the direct line of sight of any All Persons are hereby advised that no reprePrivate Amenity without giving the Private sentations or warranties have been or are made Amenity at least 15 days' prior written notice of by the Founder, the Association, any Builder, or its intent to approve the same together with copby any Person acting on behalf of any of the foreies of the request and all other documents and going with regard to the continuing ownership or information finally submitted in such regard. operation of the Private Amenities. No purThe owner of Private Amenity shall then have 15 ported representation or warranty in such regard, days to respond in writing approving or disapwritten or oral, shall be effective unless specifiproving the proposal, stating in detail the reasons cally set forth in a written instrument which the for any disapproval. The failure of the owner of record owner of the Private Amenity executes. any Private Amenity to respond to the notice within the 15-day period shall constitute a waiver

Page 59

Private Amenities BX0884PG0111

EK:905 PG=65 of the Private Amenity's right to object to the

matter. This Section shall also apply to any work

on the Common Area or any common property

or common elements of an Additional Associa-

tion, if any.

14.3. Limitations on Amendments

In recognition of the fact that the provisions

of this Chapter are for the benefit of the Private

Amenity, no amendment to this Chapter, and no

amendment in derogation of any other provi-

sions of this Charter benefiting any Private

Amenity, may be made without the written ap-

proval of the Private Amenity. However, the

foregoing shall not apply to the Founder's

amendments.

14.4. Jurisdiction and Cooperation

The Founder intends for the Association and

the owner(s) of the Private Amenities to cooper-

ate to the maximum extent possible in the opera-

tion of the Community and the Private Ameni-

ties. Each shall reasonably assist the other in up-

holding the Community-Wide Standard as it per-

tains to maintenance and the Architectural

Guidelines.

NOTES

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BX0884PG0112

BK: 905 PG:66

Chapter 15

Disclosures and Waivers

This Chapter discloses some important informacontents of Units, resulting from acts of third tion about the Community for the benefit of prospec parties.

tive purchasers of property in the Community. Each

Owner, by accepting a deed to property in the Com 15.2. Changes in Master Plan.

munity, also accepts and agrees to the matters set forth Each Owner acknowledges that The Georgia in this Chapter. Club is a master planned community, the development of which is likely to extend over many 15.1. Safety and Security. years, and agrees that neither the Association nor Each Owner and occupant of a Unit, and any Additional Association shall engage in, or their respective guests and invitees, shall be reuse Association funds to support, any protest, sponsible for their own personal safety and the challenge, or other form of objection to changes security of their property in the Community. in uses or density of property within the ComThe Association may, but shall not be obligated munity, or changes in the Master Plan as it reto, maintain or support certain activities within lates to property outside the Community, withthe Community designed to promote or enhance out the Founder's prior written consent. the level of safety or security which each person

provides for himself or herself and his or her 15.3. View Impairment.

property. However, the Association, the FounNeither the Founder, any Founder Affiliate, der, and Founder Affiliate shall not in any way be the Association, nol the owner of any Private considered insurers or guarantors of safety or Amenity, guarantee or represent that any view security within the Community, nor shall any of over and across the Units, Common Areas, lakes, them be held liable for any loss or damage by open space, or any Private Amenity within the reason of failure to provide adequate security or Community, will be preserved without impairineffectiveness of security measures undertaken. ment. Neither the Founder, Founder Affiliates, or the Association nor the owner of any Private No representation or warranty is made that Amenity have any obligation to relocate, prune, any systems or measures, including security or thin trees or shrubs on the Common Area or monitoring systems or any mechanism or system any Private Amenity, except as otherwise refor limiting access to the Community, cannot be quired under a separate covenant or agreement. compromised or circumvented, or that any such The Association shall have the right to add trees systems or security measures undertaken will in and other landscaping to the Common Area, and all cases prevent loss or provide the detection or the owner of any Private Amenity shall have the protection for which the system is designed or right to add trees and other landscaping to any intended. Each Owner acknowledges, underPrivate Amenity. In addition, the owner of any stands, and shall be responsible for informing Private Amenity that includes a golf course may, any tenants and other occupants of such Owner's in its sole and absolute discretion, change the Unit that the Association, its Board and commitlocation, configuration, size, and elevation of the tees, and the Founder and Founder Affiliates are trees, bunkers, fairways and greens from time to not insurers or guarantors of security or safety time. Any such additions or changes may diminand that each Person within the Community ish or obstruct any view from the Units and any assumes all risks of personal injury and loss or express or implied easements for view purposes damage to property, including Units and the

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Disclosures and Waivers BK0884PG0113

EK: 905 PG:67 or for the passage of light and air are hereby exerty arising out of or related to the construction, pressly disclaimed. installation, maintenance, or operation of, or proximity to, radio or telecommunication towers, 15.4. Notices and Disclaimers as to Commuor any such towers that may now or hereafter be nity Systems and Services. located in or in the vicinity of the Community. Each Owner acknowledges that interruptions 15.6. Waterfront Lots.

in cable television and other Community Systems

and services will occur from time to time. The Some Units are located adjacent to Common Founder, Founder Affiliates, Association, and Area containing lakes, ponds or stormwater retheir respective successors or assigns, shall not be tention facilities that may from time to time conliable for, and shall not be obligated to refund, tain water. Owners and occupants of lakefront rebate, discount, or offset any applicable fees as a Units have no right to erect fences, attach docks, result of any interruption in Community Systems build retaining walls, anchor or store boats or and services, regardless of whether or not such other watercraft, or landscape, clear, or otherwise interruption is caused by reasons within the serdisturb vegetation within natural areas located vice provider's control. within the Common Area between the boundary of the Unit and the water's edge.

The Owner of each Unit shall be responsible

for ensuring that the dwelling on such Unit is 15.7. Existence of Bedrock.

pre-wired to connect to any Community System Portions of the Community may be located installed by or at the request of the Founder puron bedrock that could limit, preclude or substansuant to Section 18.7. If such wiring is installed tially increase the cost of construction or installaby a party other than the provider of the Comtion of improvements such as in-ground pools on munity System, the Owner shall contact the prothe Unit. No Person other than the Founder vider of the Community System upon compleshall have the right to engage in blasting within tion of such installation and arrange for the prothe Community without the prior written apvider of the Community System to inspect the proval of the Founder or the Board, which may wiring to ensure compatibility with the Commube granted or withheld in their sole discretion. nity System. If authorized by the Founder, the Any Person authorized to engage in blasting in provider of the Community System may charge the Community shall be responsible for obtainthe Owner of the Unit a reasonable fee for such ing and complying with all necessary governmeninspection. If it is determined that the wiring is tal permits and shall be responsible for any pernot compatible, the Owner of the Unit shall sonal injury or property damage resulting from promptly arrange for such wiring to be replaced such blasting activity.

with wiring that is compatible with the Commu-

nity System. 15.8. Use of Nonpotable Water for Irrigation. 15.5. Radio and Telecommunication Towers. Each Owner and occupant of a Unit, and

Every Owner and occupant of a Unit is their respective guests and invitees, are hereby hereby advised that radio and telecommunication advised that the water used to irrigate property within or adjacent to the Community may be towers and related equipment may now or heretreated effluent, re-use water or "gray water." Alafter be located within or in the vicinity of the though such water is considered safe for irrigaCommunity. The Founder, any Founder Affilition and limited contact, it is not suitable for ate, Builders, the Association, and their respechuman or animal consumption and should not tive members, partners, affiliates, officers, direcbe used for drinking, bathing, swimming, or any tors, agents, and employees, shall not be liable for purpose other than irrigation.

any damage or injury to any Person or any prop-

Page 62

BK0884PG01I4 Chapter 16

Rights of Lenders

In order to enhance each Owner's ability to obtain (d) Any proposed action which would refinancing for the purchase of his or her Unit, this quire the consent of a specified percentage of Chapter sets forth various provisions for the benefit of Eligible Holders.

lenders who make mortgage loans and for the benefit of

those agencies which guarantee and insure mortgage 16.2. Special FHLMC Provision.

loans made by institutional lenders. If a condominium has been established in The following provisions are for the benefit the Community, then so long as required by the

Federal Home Loan Mortgage Corporation, the of holders, insurers and guarantors of first Mortfollowing provisions apply in addition to and not gages on Units in the Community. The proviin lieu of the foregoing. Unless at least 67% of sions of this Chapter apply to both this Charter the first Mortgagees or Voting Delegates repreand to the By-Laws, notwithstanding any other senting at least 67% of the total votes in the Asprovisions contained therein. sociation consent, the Association shall not: 16.1. Notices of Action. (a) By act or omission seek to abandon, parAn institutional holder, insurer, or guarantor tition, subdivide, encumber, sell, or transfer all or of a first Mortgage which provides a written reany portion of the real property comprising the quest to the Association (such request to state the Common Area which the Association owns, diname and address of such holder, insurer, or rectly or indirectly (the granting of easements for guarantor and the street address of the Unit to utilities or other similar purposes consistent with which its Mortgage relates, thereby becoming an the intended use of the Common Area shall not "Eligible Holder"), will be entitled to timely writbe deemed a transfer within the meaning of this ten notice of: subsection);

(a) Any condemnation loss or any casualty (b) Change the method of determining the loss which affects a material portion of the obligations, assessments, dues, or other charges Community or which affects any Unit on which which' may be levied against an Owner of a Unit there is a first Mortgage held, insured, or guaran- (a decision, including contracts, by the Board or teed by such Eligible Holder; and provisions of any document subsequently recorded on any portion of the Community regard- (b) Any delinquency in the payment of asing assessments for Service Areas or other similar sessments or charges owed by a Unit subject to areas shall not be subject to this provision where the Mortgage of such Eligible Holder, where such such decision or subsequent document is otherdelinquency has continued for a period of 60 wise authorized by this Charter);

days, or any other violation of the Governing

Documents relating to such Unit or the Owner (c) By act or omission change, waive, or or occupant which is not cured within 60 days. abandon any scheme of regulations or enforcement pertaining to architectural design, exterior (c) Any lapse, cancellation, or material appearance, or maintenance of Units and the modification of any insurance policy maintained Common Area (the issuance and amendment of by the Association; or architectural standards, procedures, rules and regulations, or use restrictions shall not consti-

Page 63

BK0884PGO115 Rights of Lenders

BK: 905 PG=69 tute a change, waiver, or abandonment within Section 16.3(a) and (b), or to the addition of land the meaning of this provision); in accordance with Chapter 17. If a condominium has been established in the Community, (d) Fail to maintain insurance, as required then:

by this Charter; or

(a) The consent of Voting Delegates repre- (e) Use hazard insurance proceeds for any senting at least 67% of the total votes in the AsCommon Area losses for other than the repair, sociation and of the Founder, so long as it owns replacement, or reconstruction of such property. any land subject to this Charter, and the approval of the Eligible Holders of first Mortgages First Mortgagees may, jointly or singly, pay on Units to which at least 67% of the votes of taxes or other charges which are in default and Units subject to a Mortgage appertain, shall be which may or have become a charge against the required to terminate the Association. Common Area and may pay overdue premiums

on casualty insurance policies or secure new casu- (b) The consent of Voting Delegates reprealty insurance coverage upon the lapse of an Assenting at least 67% of the total votes in the Association policy, and first Mortgagees making sociation and of the Founder, so long as it owns such payments shall be entitled to immediate any land subject to this Charter, and the apreimbursement from the Association. proval of Eligible Holders of first Mortgages on

Units to which more than 50% of the votes of 16.3. Other Provisions for First Lien Holders. Units subject to a Mortgage appertain, shall be To the extent not inconsistent with Georgia required materially to amend any provisions of law, if a condominium has been established in the Charter, By-Laws, or Articles of Incorporathe Community, then: tion, or to add any material provisions thereto which establish, provide for, govern, or regulate (a) Any restoration or repair of the Comany of the following:

munity after a partial condemnation or damage

due to an insurable hazard shall be performed (i) voting;

substantially in accordance with this Charter and (ii) assessments, assessment liens, or the original plans and specifications unless the subordination of such liens;

approval is obtained of the Eligible Holders of

first Mortgages on Units to which more than (iii) reserves for maintenance, repair, 50% of the votes of Units subject to Mortgages and replacement of the Common Area; held by such Eligible Holders are allocated.

(b) Any election to terminate the Associa- (iv) insurance or fidelity bonds; tion after substantial destruction or a substantial (v) rights to use the Common Area; taking in condemnation shall require the ap-

proval of the Eligible Holders of first Mortgages (vi) responsibility for maintenance and on Units to which more than 50% of the votes of repair of property in the Community;

Units subject to Mortgages held by such Eligible

Holders are allocated. (vii) expansion or contraction of the

Community or the addition, annexation, or 16.4. Amendments to Documents. withdrawal of property to or from the AssociaThe following provisions do not apply to tion's jurisdiction;

amendments to the Governing Documents or

termination of the Association as a result of de- (viii) boundaries of any Unit;

struction, damage, or condemnation pursuant to

Page 64

BX0884PG0116 Rights of Lenders

BK:905 PG:70

(ix) leasing of Units; the By-Laws, or Georgia law for any of the acts set out in this Chapter.

(x) imposition of any right of first re-

fusal or similar restriction of the right of any NOTES

Owner to sell, transfer, or otherwise convey his

or her Unit;

(xi) establishment of self-management

by the Association where professional manage-

ment has been required by an Eligible Holder; or

(xii) any provisions included in the Gov-

erning Documents which are for the express

benefit of holders, guarantors, or insurers of first

Mortgages on Units.

16.5. No Priority.

No provision of this Charter or the By-Laws

gives or shall be construed as giving any Owner

or other party priority over any rights of the first

Mortgagee of any Unit in the case of distribution

to such Owner of insurance proceeds or con-

demnation awards for losses to or a taking of the

Common Area.

16.6. Notice to Association.

Upon request, each Owner shall furnish to

the Association the name and address of the

holder of any Mortgage encumbering such

Owner's Unit.

16.7. Failure of Mortgagee to Respond.

Any Mortgagee who receives a written re-

quest 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 from the Mortgagee within 30

days of the date of the Association's request, pro

vided such request is delivered to the Mortgagee

by certified or registered mail, return receipt re-

quested.

16.8. Construction of Chapter 16.

Nothing contained in this Chapter shall be

construed to reduce the percentage vote that

must otherwise be obtained under this Charter,

Page 65

EK: →80889117Ś

PART FIVE: COMMUNITY DEVELOPMENT

The heart of the Southerner has been in his land, the early richness of which, like the prodigality of his rainfall and climate, he has nonchalantly taken for granted.

- Howard Odum, c. 1935

Page 66

BK0884PG0118 EK: 905 PG=72

Chapter 17

Expansion of the Community

It is not practical to develop, market and sell a style, quality of construction, principal materials community the projected size of the Community all at employed in construction, or size.

one time. Therefore, the Founder intends to develop

the Community in phases to meet demand. This 17.2. Expansion by the Association. Chapter establishes procedures by which the Founder The Association also may submit additional and the Association may expand the Community. property to this Charter by recording a Supple17.1. Expansion by Founder. ment describing the additional property. Any

Supplement which the Association records must The Founder may, from time to time, submit be approved by Voting Delegates entitled to cast to the terms of this Charter all or any portion of more than 50% of the total votes in the Associathe property described in Exhibit "B" by retion at a meeting duly called for such purpose cording a Supplement describing the additional and by the owner of the property to be submitproperty to be submitted. The Founder may reIn addition, during the Development and cord such a Supplement without the consent of Sale Period, the Founder's consent is required. any Person except the owner of such property, if The Association's President and Secretary, the not the Founder. owner of the property, and the Founder, if the

Founder's consent is required, shall sign the The Founder's right to expand the CommuSupplement.

nity under this Section expires when all property

described in Exhibit "B" has been submitted to 17.3. Additional Covenants and Easements. this Charter or 40 years after this Charter is reAny Supplement that the Founder records corded, whichever is earlier. Until then, the may impose additional covenants and easements Founder may transfer or assign this right to any on the property described in such Supplement, Founder Affiliate or any Person who is the develsuch as covenants obligating the Association to oper of at least a portion of the real property demaintain and insure such property and authorizscribed in Exhibit"A" or "B." Any such transfer ing the Association to recover its costs through shall be described in a recorded instrument exeService Area Assessments. Such provisions may cuted by the Founder. be included in a Supplement submitting new Nothing in this Charter shall require the property to this Charter or may be set forth in a Founder or any successor to submit additional separate Supplement applicable to property preproperty to this Charter or to develop any of the viously submitted to this Charter. If someone property described in Exhibit "B" in any manner other than the Founder owns the property, then whatsoever. The Founder may submit different the Supplement must be signed by such owner. parcels of property to this Charter at different evidencing such owner's consent. Any Suppletimes. The Founder gives no assurances as to the ment may add to, create exceptions to, or otherboundaries of the parcels that may be submitted wise modify the terms of this Charter as it applies to this Charter, as to the order in which the to the property described in the Supplement, in Founder may submit different parcels of property order to reflect the different character and into this Charter, or as to whether buildings tended use of such property.

erected on any additional property submitted to 17.4. Effect of Filing a Supplement.

this Charter will be compatible with other build-

ings in the Community in terms of architectural A Supplement shall be effective upon recording unless otherwise specified in the Sup-

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BK0884 PG0119 Expansion of the Community

BK: 905 PG:73

plement. On the effective date of the Supple-

ment, any additional property made subject to

this Charter shall be assigned voting rights in the

Association and assessment liability in accor-

dance with the provisions of this Charter.

NOTES

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8 0884 PG0 1 20 EK: 905 PG=74

Chapter 18

Additional Rights Reserved to the Founder

This Chapter reserves various rights to the Foun18.2. Marketing and Sales Activities.

der, in addition to those specifically reserved elsewhere Notwithstanding anything in the Governing in the Governing Documents, in order to facilitate the Documents to the contrary, during the DevelFounder's development and sale of property in the opment and Sale Period the Founder and its desCommunity, to enable the Founder to respond to ignees or assigns may construct, use, and mainOwners' concerns, and to protect various property tain such facilities and conduct such activities rights and other interests of the Founder. upon portions of the Common Area and other 18.1. Special Development Rights. property they own as, in the Founder's opinion, may reasonably be required, convenient, or inciIn addition the rights specifically reserved to dental to the construction or sale of Units. Such the Founder under Chapter 17 with respect to permitted facilities and activities shall include expanding the Community, the Founder reserves business offices, signs, flags (whether hung from the right, during the Development and Sale Peflag poles or attached to a structure), model riod, to: homes, sales offices, parking facilities, exterior lighting features or displays, and special events. (a) create Units, Common Areas, and LimThere shall be no limit on the number or locaited Common Areas, and to designate roadways, tion of such facilities, except as otherwise rewithin any portion of the Community which it stricted by state law or local ordinance or regulaOwns;

(b) subdivide or combine any Unit or Units 18.3. Access for Development Purposes. which it owns in order to create larger or addi-

tional Units, Common Areas, and/or Limited During the Development and Sale Period, Common Areas; the Founder and its employees, agents, and designees shall have a right of access and use and an (c) convert any Unit which it owns into easement over and upon all of the Common Common Area, Limited Common Area, or Area and roadways within the Community for roadways; the purpose of:

(d) adjust the boundaries of any Units that it (a) exercising any rights reserved to the owns and any Common Area or Limited ComFounder, pursuant to this Charter, including the mon Area; and rights set forth in Sections 18.1 and 18.2; and (e) amend this Charter or any Supplement (b) making, constructing, and installing any to withdraw property from the Community and improvements indicated on recorded subdivision the coverage of this Charter, provided that such maps or plats of the Community and such other property has not been improved with a dwelling improvements to the Common Area and to the Any such amendment shall not require the conExhibit "B" property as it deems appropriate. sent of any Person other than the Owner(s) of

the property to be withdrawn, if not the Foun18.4. Right to Approve Changes in Commuder. If the property is Common Area, the Assonity Standards.

he one to Coh on Aren, the Asc

During the Development and Sale Period, no amendment to or modification of any Rules or

Page 69

BK0884PG0121 Additional Rights Reserved to Founder

EK:905 PG:75Í Architectural Guidelines shall be effective withNotwithstanding the above, there is no guarout prior notice to and the written approval of antee or representation that any particular the Founder. Community System will be made available.

18.5. Additional Covenants and Restrictions. 18.8. Easement to Inspect and Right to CorDuring the Development and Sale Period, no rect.

one other than the Founder or a Founder AffiliThe Founder reserves for itself and others it ate may record any additional covenants or remay designate the right, but not the obligation, strictions affecting any portion of the Commuto inspect, monitor, test, redesign, and correct nity without the Founder's written consent. Any any structure, improvement, or condition which instrument recorded without the required conmay exist on any portion of the property within sent shall be void and of no force and effect. the Community, including Units, and a perpetual nonexclusive easement of access throughout 18.6. Exclusive Rights to Use Name of Develthe Community to the extent reasonably necessary to exercise such right. Except in an emerNo Person other than the Founder or a gency, entry onto a Unit shall be only after reaFounder Affiliate shall use the name "The Georsonable notice to the Owner, and no entry into gia Club" or any derivative of such name or in an enclosed structure shall be permitted without any logo or depiction associated with The Georthe Owner's consent. The person exercising this gia Club in any printed or promotional material easement shall promptly repair, at such person's without the Founder's prior written consent. own expense, any damage he or she causes. However, Owners may use the name "The GeorNothing in this paragraph shall relieve an Owner gia Club" in printed or promotional matter of the responsibility for the maintenance and where such term is used solely to specify that parrepair of his or her Unit.

ticular property is located within The Georgia

Club, and the Association shall be entitled to use The Founder, or someone it designates, the word "The Georgia Club" in its name. may enter any Owner's property to inspect and correct problems with the Unit. The Founder 18.7. Community Systems. must give the Owner of the Unit prior notice, The Founder reserves for itself, Founder Afunless it is an emergency.

filiates, and their respective successors and as-

signs, a perpetual right and easement over all of 18.9. Right to Notice of Design or Constructhe property in the Community to install and tion Claims.

operate such Community Systems as the FounNo Person shall retain an expert for the purder, in its discretion, deems appropriate to serve pose of inspecting the design or construction of any portion of the Community. Such right shall any structures or improvements within the include, without limitation, the Founder's right Community in connection with or in anticipato select and contract with companies licensed to tion of any potential or pending claim, demand, provide telecommunications, cable television, or litigation involving such design or construcand other Community Systems services in the tion unless the Founder and any builder involved area. The Founder also has the right to charge or in the design or construction have been first no authorize any provider to charge individual users tified in writing and given an opportunity to a reasonable fee, not to exceed the maximum meet with the owner of the property to discuss allowable charge for such service, as defined from the owner's concerns and conduct their own intime to time by the laws, rules, and regulations of spection.

any government authority having jurisdiction.

Page 70

BK0884PG0122 Additional Rights Reserved to Founder

BK: 905 PG:76

18.10. Right to Transfer or Assign the Foun-

der's Rights.

The Founder may transfer any or all of the

Founder's special rights and obligations set forth

in this Charter or the By-Laws in whole or in

part, temporarily or permanently, to other Per-

sons. However, such a transfer shall not reduce

an obligation or enlarge a right beyond that

which Founder has under this Charter or the By-

Laws. No transfer or assignment of the Foun-

der's status as the Founder or as the Founder

member shall be effective unless it is in a re-

corded instrument which the Founder has

signed. The Founder may permit other Persons

to exercise, on a one-time or limited basis, any

right reserved to the Founder in this Charter

where the Founder does not intend to transfer

such right in its entirety. In such case, it shall

not be necessary to record any written assign-

ment unless desired to evidence the Founder's

consent to such exercise.

18.11. Termination of Rights.

Except as otherwise specified above, the

rights reserved to the Founder in this Chapter

shall terminate on the earlier of (a) termination

of the Development and Sale Period; or (b) the

Founder's recording of a written statement that

all sales activity has ceased.

NOTES

Page 71

BK0884PGO12J EK=905 PG=77

PART SIX: PROCEDURES FOR AND LIMITATIONS ON CERTAIN ACTIONS

Lettin' the cat outta the bag is a whole lot easier than puttin' it back in.

• Southern Saying

Page 72

BK 0884P0124 BK:905 PG:78

Chapter 19

Dispute Resolution and Limitation on Litigation

From time to time, disputes may arise between (iii) the design or construction of imowners or between an owner and the Association, the provements within the Community, other than Founder or others involved in the Community. This matters of aesthetic judgment under Chapter 5, Chapter commits the parties to any such a dispute to which shall not be subject to review.

work together in an attempt to resolve the dispute

without litigation in order to facilitate the prompt resoNotwithstanding the above, the following lution of such disputes in a manner that respects and shall not be considered "Claims" unless all parties builds upon the relationships between the parties. It to the matter otherwise agree to submit the matalso requires substantial support of the Association's ter to the procedures set forth in Section 19.2: membership before the Association can engage in cer-

tain types of litigation that could result in significant (i) any suit by the Association to collect legal and emotional costs to the Community. assessments or other amounts due from any

Owner;

19.1. Agreement to Encourage Resolution of

Disputes Without Litigation. (ii) any suit by the Association to obtain a temporary restraining order (or emergency eq- (a) Bound Parties. The Founder; the Assouitable relief) and such ancillary relief as the ciation and its officers, directors, and committee court may deem necessary in order to maintain members; all Persons subject to this Charter; and the status quo and preserve the Association's abilany Person not otherwise subject to this Charter ity to enforce the provisions of Part Two of this who agrees to submit to this Chapter (collecCharter (relating to creation and maintenance of tively, "Bound Parties") agree that it is in the best community standards);

interest of all concerned to encourage the amica-

ble resolution of disputes involving the Commu- (iii) any suit that does not include the nity without the emotional and financial costs of Founder, a Founder Affiliate, or the Association litigation. Accordingly, each Bound Party agrees as a party, if such suit asserts a Claim that would not to file suit in any court with respect to a constitute a cause of action independent of the Claim described in subsection (b), unless and Governing Documents;

until it has first submitted such Claim to the al-

ternative dispute resolution procedures set forth (iv) any dispute which affects the matein Section 19.2 in a good faith effort to resolve rial rights or obligations of a party who is not a such Claim. Bound Party and has not agreed to submit to the procedures set forth in Section 19.2;

(b) Claims. As used in this Chapter, the

term "Claim" shall refer to any claim, grievance, (v) any suit as to which any applicable or dispute arising out of or relating to: statute of limitations would expire within 180 days of giving the Notice required by Section (i) the interpretation, application, or 19.2(a), unless the party or parties against whom enforcement of the Governing Documents; the Claim is made agree to toll, or extend, the

Claim's statute of limitations to comply with this (ii) the rights, obligations, and duties of Chapter; and

any Bound Party under the Governing Docu-

ments; or (vi) any suit by the Association to enforce the Governing Documents where the Asso-

Page 73

BK0884PG0125 Dispute Resolution and Limitation on Litigation

EK:905 PG:79

ciation has given the violator notice and either a the Respondent to discuss, in good faith, ways to hearing or an opportunity to cure the violation, resolve the Claim.

or both, prior to the Association filing suit.

(b) Negotiation. The Claimant and Re19.2. Dispute Resolution Procedures. spondent shall make every reasonable effort to meet in person and confer for the purpose of (a) Notice. The Bound Party asserting a resolving the Claim by good faith negotiation. If Claim ('Claimant") against another Bound Party requested in writing, accompanied by a copy of ("Respondent) shall give written notice ("Nothe Notice, the Board may appoint a representatice") by mail or personal delivery to each Retive to assist the parties in negotiating a resoluspondent and to the Board, stating plainly and tion of the Claim.

(i) the nature of the Claim, including (c) Mediation. If the parties have not rethe Persons involved and the Respondent's role solved the Claim through negotiation within 30 days of the date of the Notice (or within such in the Claim; other agreed upon period), the Claimant shall have 30 additional days to submit the Claim to (ii) the legal basis of the Claim (i.e., the mediation with an entity designated by the Assospecific authority out of which the Claim arises); ciation (if the Association is not a party to the

(iii) the Claimant's proposed resolution Claim) or to an independent agency providing or remedy; and dispute resolution services in the surrounding

Athens, Georgia area. Each Bound Party shall (iv) the Claimant's desire to meet with present the mediator with a written summary of

DISPUTE RESOLUTION TIMELINE

Claim Between Bound Parties

Day 1 Day 2-30 Day 31-60 Day 61-90+

Written Notice Request Mediation of Claim Negotiations Mediation

•Factual Basis • Good faith effort • Claimant must submit • Agency supplies rules • Legal Basis • Parties meet in claim • Fee split between person • Mediator assigned by parties

•Propose a resolution Association or

• May request Board independent agency • Written summary from •Propose a meeting assistance each side

•Send copy to Board • If Claim is not • Supervised negotiation submitted, it is waived

• Contractual settlement or

• Termination of

mediation

Page 74

Dispute Resolution and Limitation on Litigation BK 0884 PG0126

BK:905 PG:80

the Claim. judicial or administrative proceeding unless first approved by a vote of Voting Delegates entitled If the Claimant does not submit the Claim to cast 75% of the total votes in the Association, to mediation within such time, or does not apexcept that no such approval shall be required for pear for and participate in good faith in the meactions or proceedings:

diation when scheduled, the Claimant shall be

deemed to have waived the Claim, and the Re- (a) initiated during the Founder Control spondent shall be relieved of any and all liability Period;

to the Claimant (but not third parties) on ac-

count of such Claim. (b) initiated to enforce the provisions of this

Charter, including collection of assessments and If the parties do not settle the Claim within foreclosure of liens;

30 days after submission of the matter to media-

tion, or within such time as determined reason- (c) initiated to challenge ad valorem taxation able by the mediator, the mediator shall issue a or condemnation proceedings;

notice of termination of the mediation proceed-

ings indicating that the parties are at an impasse (d) initiated against any contractor, vendor, and the date that mediation was terminated. or supplier of goods or services arising out of a The Claimant shall thereafter be entitled to file contract for services or supplies; or

suit or to initiate administrative proceedings on

the Claim, as appropriate. (e) to defend claims filed against the Association or to assert counterclaims in proceedings Each Bound Party shall bear its own costs of instituted against it.

the mediation, including attorneys fees, and each

Party shall pay an equal share of the mediator's This Section shall not be amended unless fees. such amendment is approved by the same percentage of votes necessary to institute proceed- (d) Settlement. Any settlement of the ings.

Claim through negotiation or mediation shall be NOTES

documented in writing and signed by the parties.

If any party thereafter fails to abide by the terms

of such agreement, then any other party may file

suit or initiate administrative proceedings to en-

force such agreement without the need to comply

again with the procedures set forth in this Sec-

tion. In such event, the party taking action to

enforce the agreement or award shall, upon pre-

vailing, be entitled to recover from the non-

complying party (or if more than one non-

complying party, from all such parties in equal

proportions) all costs incurred in enforcing such

agreement or award, including, without limita-

tion, attorneys fees and court costs.

19.3. Initiation of Litigation by Association.

In addition to compliance with the foregoing

alternative dispute resolution procedures, if ap-

plicable, the Association shall not initiate any

Page 75

BK0884PG0127 EK:905 PG:81

Chapter 20

Changes in the Common Area

Various influences and circumstances within and with such approval as may be required under outside the Community may give rise to a need or deSection 20.4, each Owner shall be entitled to sire to make changes in the ownership of, or rights to written notice of such taking or conveyance prior use, Common Area. This Chapter explains the proceto disbursement of any condemnation award or dures for dealing with matters such as changing use proceeds from such conveyance. Such award or rights in Common Area or Limited Common Area, proceeds shall be payable to the Association to be partition of the Common Area, and condemnation. disbursed as follows:

20.1. Assignment and Reassignment of LimIf the taking or conveyance involves a porited Common Area. tion of the Common Area on which improve- (a) Assignment. The Board may assign any ments have been constructed, the Association portion of the Common Area as Limited Comshall restore or replace such improvements on mon Area, and may reassign Limited Common the remaining land included in the Common Area, upon approval of the Board and Voting Area to the extent available, unless within 60 days after such taking the Founder, during the votes in the Association, including a majority of Development and Sale Period, and Voting Delethe votes attributable to Units to which the Limgates entitled to cast at least 75% of the total votes in the Association shall otherwise agree. ited Common Area is proposed to be assigned or Any such construction shall be in accordance reassigned. During the Development and Sale with plans approved by the Board. The proviPeriod, any such assignment or reassignment sions of Section 9.4 regarding funds for restoring shall also require the Founder's written consent. damaged improvements shall apply.

(b) Use by Others. Upon approval of a maIf the taking or conveyance does not involve jority of Owners of Units to which any Limited any improvements on the Common Area, if a Common Area is assigned, the Association may decision is made not to repair or restore, or if net permit Owners of other Units to use all or a porfunds remain after any such restoration or retion of such Limited Common Area upon pay placement is complete, then such award or net ment of reasonable user fees, which fees shall be funds shall be treated in the same manner as used to offset the Service Area Expenses attributproceeds from the sale of Common Area under able to such Limited Common Area. Section 20.4.

20.2. Condemnation. 20.3. Partition.

A public entity such as a town, county, or Except as permitted in this Charter, the state has the power to condemn property for its Common Area shall remain undivided, and no own uses and generally has to pay the value of Person shall bring any action to partition any the property to do so. portion of the Common Area without the written consent of all Owners and Mortgagees. This If any part of the Common Area is taken by Section shall not prohibit the Board from acquirany authority having the power of condemnation ing and disposing of tangible personal property or eminent domain, or conveyed by the Associaor from acquiring and disposing of real property tion in lieu of and under threat of condemnation that may or may not be subject to this Charter,

Page 76

BK 0884PG0128 Changes in the Common Area

BK:905 PG:82

with such approval as may be required under disbursed in the manner directed by the Owners Section 20.4. of Units to which the Limited Common Area is assigned at the time such sale or mortgage is authorized pursuant to Section 20.4(b).

Partition is a legal action in which a party

requests to have a portion of one interest in No conveyance or encumbrance of Common property split off so that the party can possess Area may deprive any Unit of rights of access or that portion or interest separately from other support.

parties who have rights in the property.

20.5. Expansion of Common Area.

20.4. Transfer, Mortgaging, or Dedication of In addition to such property as the Founder

Common Area.

or its designee may convey to the Association as Upon the written request of Barrow County Common Area pursuant to Section 9.1, the Asor Oconee County, Georgia, and the approval of sociation may purchase or accept any gift of other the Founder if the Founder or an Affiliate of the property to be included in the Common Area as Founder owns any of the property described on

Exhibits "A" or "B," the Association shall dedicate

all or portions of the Common Area lying within (a) if to be Common Area other than LimBarrow County to Barrow County or lying within ited Common Area, upon the written direction Oconee County to Oconee County, as requested of Voting Delegates entitled to cast more than by such counties. The Association may transfer 50% of the total votes in the Association and, or dedicate portions of the Common Area to during the Development and Sale Period, the Barrow or Oconee County, Georgia, or to any written consent of the Founder; or

other local, state, or federal governmental or

quasi-governmental entity, may subject Common (b) if to be Limited Common Area, upon Area to a security interest, or may transfer or written approval of Owners of more than 50% of convey Common Area as follows: the Units to which such Limited Common Area is assigned.

(a) if Common Area other than Limited

Common Area, upon the written direction of NOTES

Voting Delegates entitled to cast at least 67% of

the total votes in the Association and, during the

Development and Sale Period, the written con-

sent of the Founder; or

(b) if Limited Common Area, upon written

approval of Owners of at least 67% of the Units

to which such Limited Common Area is as-

signed.

The proceeds from the sale or mortgaging of

Common Area other than Limited Common

Area shall be an asset of the Association to be

used as the Board determines, unless otherwise

directed by Voting Delegates at the time such

sale or mortgage is authorized pursuant to Sec-

tion 20.4(a). The proceeds from the sale or

mortgaging of Limited Common Area shall be

Page 77

BK:905 PG:83

BK0884PG0129

Chapter 21

Termination and Amendment of Community Charter

As the Community matures and grows, the rules 21.2. Amendment.

by which it is governed must be flexible enough to (a) By the Founder. In addition to the speadapt to changes in the development plan, as well as cific amendment rights granted elsewhere in this changes in the needs and desires of the Community Charter, during the Founder Control Period, the that inevitably will occur. This Chapter sets out proFounder may unilaterally amend this Charter for cedures by which either the Founder or the Owners as any purpose so long as it does not materially ada group may amend this Charter to address such versely affect the rights specifically granted to

Owners hereunder without the consent of the 21.1. Term and Termination. affected Owners.

Except as otherwise specifically provided There is an old concept of law known as above or elsewhere in this Charter, this Charter the "Rule Against Perpetuities" that restricts how may be amended only by the affirmative vote or long covenants can affect the title to land. Many written consent of Owners of not less than twojurisdictions no longer observe such rule; howthirds of the Units or Voting Delegates entitled ever, where the rule applies, the term of the to cast not less than 67% of the total votes in the covenants cannot exceed 21 years after the death Association. During the Development and Sale of a named person who is living at the time the Period, the Founder's written consent shall also covenants are recorded. be required.

This Charter shall be effective for a miniAny amendment pursuant to this Section mum of 21 years from the date it is recorded. shall be prepared, executed, certified and reAfter 21 years, this Charter shall be renewed and corded on behalf of the Association by any offiextended automatically for successive 10-year pecer designated for such purpose or, in the abriods unless at least 75% of the then Owners sign sence of such designation, by the Association's a document stating that the Community Charter President.

is terminated and that document is recorded

within the year before any extension. In such (b) Validity and Effective Date. Notwithcase, this Charter shall terminate on the date standing the above, the percentage of votes necspecified in the termination document. essary to amend a specific clause shall not be less than the prescribed percentage of affirmative If any provision of this Charter would be votes required for action to be taken under that unlawful, void, or voidable by reason of any rule clause.

restricting the period of time that covenants can

affect title to property, that provision shall expire No amendment may remove, revoke, or 21 years after the death of the last survivor of the modify any right or privilege of the Founder or now living descendants of Elizabeth II, Queen of the Founder Member without the written conEngland. sent of the Founder or the Founder Member, respectively (or the assignee of such right or privi This Section shall not permit termination of lege).

any easement created in this Charter without the

consent of the holder of such easement. If an Owner consents to any amendment to this Charter or the By-Laws, it will be conclu

Page 78

BK0884 PG0130 Termination and Amendment of Community Charter

EK:905 PG:84

sively presumed that such Owner has the author-

ity to consent, and no contrary provision in any

Mortgage or contract between the Owner and a

third party will affect the validity of such

amendment.

Any amendment shall become effective upon

recording unless a later effective date is specified

in the amendment.

No action to challenge the validity of an

amendment may be brought more than two years

after its recordation. In no event shall a change

of conditions or circumstances operate to amend

any provisions of this Charter.

(c) Exhibits. Exhibits "A' and "B' are incor-

porated by this reference, and this Chapter shall

govern amendment of those exhibits. Exhibit

"C" is attached for informational purposes only

and may be amended under Chapter 7 or pursu-

ant to Section 21.2. Exhibit "D" is attached for

informational purposes only and may be

amended as provided in that exhibit.

NOTES

Page 79

BK0884PG0131 EK: 905 PG:85 in witness of the foregoing, the Founder has executed this Charter this Oi day of December, 2003.

FOUNDER: BARBER CREEK LAND COMPANY, a

Georgia limited liability limited partnership By: heml

Name

ts CEO

By:

Name:

Its:

Signed, sealed and delivered this OM-

Decerter 20_03.

Heal

Notary Public:

GLORIA J. BATSON

Mỹ ca ha snare: NO COMMISSION EXPIRES CUARY 11,200A

25110 Wotand Seal

21661/6 Que Chair 71114034

Page 80

BK0884PG0131

In witness of the foregoing, the Founder has executed this Charter this fOL - day of December. 2003.

FOUNDER: BARBER CREEK LAND COMPANY, a

Georgia limited liability limited partnership

By:

Name:

Its: CEO

By:

Name:

Its:

Signed, sealed and delivered this /O4

day of secember _,20_02.

Lana O Batsor

Notary Pubffe

NOTARY PUBLIC GLORIA J. BATSON

My Cam@ission, expires: MY COMMISSION EXPIRES FEBRUARY 11, 200 BARROW COUNTY, GEORGI

2:51 0 orarel Seal

1681/GiA Que/Chares

Page 81

BK0884PG0132 BK:905 PG:86 EXHIBIT (r)A"

Land Initially Submitted

ALL THOSE TRACTS OR PARCELS OF LAND lying and being in Georgia Militia District 1741, in the city of Statham, Barrow County, Georgia, and being more particularly described as follows:

THE VILLAGE TRACT: (All Units within The Village tract are assigned to The Village Service Area. In addition, Units within The Village tract that are served by Limited Common Drives are assigned to The Village Service Area A and Units within The Village tract that are served by alleyways are assigned to The Village Service Area B. All Units within The Village tract are assigned to Neighborhood #1)

COMMENCING at the intersection of the southwesterly R/W of Barber Creek Road and the southwesterly R/W of state road 316, continue along the westerly R/W of Barber Creek Road in a Southwesterly direction approximately 2,436' to an Iron Pin Set;

THENCE South 10°09'36iEast, a distance of 102.46 feet to an iron pin set;

THENCE leaving said right-of-way and continuing the following calls:

THENCE North 58°29'46iWest, a distance of 32.33 feet;

THENCE South 80°03'27iWest, a distance of 80.20 feet to a point of curve to the right having a radius of 167.00 feet and a central angle of 57°15'18i

THENCE westerly along the arc a distance of 166.88 feet;

THENCE North 42°48'14iWest, a distance of 105.12 feet to the point of curve of a non tangent curve to the left, of which the radius point lies South 33°15'21"West, a radial distance of 112.91 feet;

THENCE northwesterly along the arc, through a central angle of 13°54'28i a distance of 27.41 feet; THENCE continue westerly along said curve through a central angle of 79°42'55", a distance of 157.09 feet;

THENCE, South 27°02'28iWest, a distance of 32.66 feet to an iron pin set being the POINT OF BEGINNING;

THENCE South 62°56'17iEast, a distance of 32.47 feet to the point of curve of a non tangent curve to the left, of which the radius point lies North 27°04'59"East, a radial distance of 270.00 feet and having a chord bearing of South 71°09'33 East, 77.41 feet;

THENCE easterly along the arc, through a central angle of 16°29'03i, a distance of 77.68 feet; THENCE South 79°24'04"East, a distance of 109.64 feet to a point of curve to the right having a radius of 240.00 feet, a central angle of 22°33'51", and a chord bearing of South 68°07'09"East, 93.91 feet;

Page 82

BK0884 PG0 1 33 EXHIBIT "AI

EK: 905 PG:87 Land Initially Submitted

(continued)

THENCE easterly along the arc a distance of 94.52 feet;

THENCE South 56°50'13"East, a distance of 50.43 feet to a point of curve to the right having a radius of 210.00 feet, a central angle of 56°50'13", and a chord bearing of South 28°25'07"East, 199.88 feet; THENCE southeasterly along the arc a distance of 208.32 feet;

THENCE South, a distance of 75.90 feet to a point of curve to the right having a radius of 430.00 feet, a central angle of 18°03'09", and a chord bearing of South 09°01'35"West, 134.92 feet;

THENCE southerly along the arc a distance of 135.48 feet;

THENCE South 18°03'09"West, a distance of 123.38 feet to a point of curve to the right having a radius of 505.00 feet, a central angle of 10°40'48", and a chord bearing of South 23°23'33"West, 94.00 feet; THENCE southwesterly along the arc a distance of 94.13 feet;

THENCE South 28°44'08"West, a distance of 50.40 feet to the point of curve of a non tangent curve to the right, of which the radius point lies North 62°16'12"West, a radial distance of 1,033.07 feet and having a chord bearing of South 32°46'32iWest, 181.71 feet;

THENCE southwesterly along the arc, through a central angle of 10°05'28", a distance of 181.95 feet to the point of curve of a non tangent curve to the right, of which the radius point lies North 52°09'50"West, a radial distance of 330.00 feet and having a chord bearing of South 62°43'35"West, 277.78 feet; THENCE southwesterly along the arc, through a central angle of 49°46'49i a distance of 286.71 feet; THENCE South 87°37'00iWest, a distance of 140.11 feet to the point of curve of a non tangent curve to the left, of which the radius point lies South 02°20'21"East, a radial distance of 269.38 feet and having a chord bearing of South 69°08'2 1iWest, 171.15 feet;

THENCE westerly along the arc, through a central angle of 37°02'37i a distance of 174.16 feet; THENCE South 50°3941ạiWest, a distance of 167.30 feet to a point of curve to the right having a radius of 492.00 feet, a central angle of 14°48'09, and a chord bearing of South 58°03'46 West, 126.76 feet; THENCE southwesterly along the arc a distance of 127.11 feet;

THENCE North 24°31'53"West, a distance of 60.01 feet;

THENCE North 23°29'19"West, a distance of 48.23 feet to a point of curve to the left having a radius of 475.00 feet, a central angle of 03°15'06", and a chord bearing of North 25°06'52"West, 26.95 feet; THENCE northwesterly along the arc a distance of 26.96 feet;

Page 83

8K 0884PG0134 EXHIBIT "A"

EK: 905 PG:88 Land Initially Submitted

(continued)

THENCE North 26°44'25iWest, a distance of 59.27 feet to a point of curve to the right having a radius of 80.00 feet, a central angle of 62°54'59", and a chord bearing of North 04°43'05"East, 83.50 feet;

THENCE northerly along the arc a distance of 87.85 feet;

THENCE North 32°22'20"West, a distance of 180.71 feet;

THENCE North 27°02'2&ẠạEast, a distance of 29.59 feet;

THENCE continue northeasterly along said line, a distance of 991.42 feet;

THENCE South 76°27'26"East, a distance of 8.04 feet to a point of curve to the right having a radius of 460.00 feet, a central angle of 12°36'08", and a chord bearing of South 70°09'22"East, 100.97 feet; THENCE easterly along the arc a distance of 101.18 feet;

THENCE continue southeasterly along said curve through a central angle of 00°53'46i a distance of 7.19 feet, said curve also having a chord bearing of South 63°24'25"East, and chord distance of 7.19 feet; THENCE South 62°57'32"East, a distance of 100.81 feet;

THENCE continue southeasterly along said line, a distance of 50.00 feet;

THENCE North 28°10'24"East, a distance of 70.03 feet to the POINT OF BEGINNING.

Containing 955,947 square feet or 21.945 acres, more or less.

FAIRWAY HEIGHTS TRACT: (All Units within Fairway Heights tract are assigned to Fairway Heights Service Area and Neighborhood #2)

COMMENCING at the intersection of the southwesterly r/w of barber creek road and the southwesterly R/W of state road 316, continue along the westerly R/W of Barber Creek Road in a South westerly direction approximately 2,436' to an Iron Pin Set, said point being the POINT OF BEGINNING:

THENCE South 10°09'36"East, a distance of 102.46 feet;

THENCE North 58°29'46iWest, a distance of 32.33 feet;

THENCE South 80°03'27"West, a distance of 80.20 feet to a point of curve to the right having a radius of 167.00 feet, a central angle of 57°01'21", and a chord bearing of North 71°25'53"West, 159.43 feet;

THENCE westerly along the arc a distance of 166.20 feet;

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(continued)

THENCE North 42°48'14iạiWest, a distance of 105.79 feet to the point of curve of a non tangent curve to the left, of which the radius point lies South 33°15'21iWest, a radial distance of 112.91 feet and having a chord bearing of North 63°41'53 West, 27.34 feet;

THENCE North westerly along the arc, through a central angle of 13°54'28i a distance of 27.41 feet; THENCE continue westerly along said curve through a central angle of 79°42'55", a distance of 157.09 feet, said curve also having a chord bearing of South 69°29'26"West, and chord distance of 144.72 feet; THENCE South 27°02'28"West, a distance of 32.67 feet;

THENCE South 28°10'24iWest, a distance of 70.01 feet;

THENCE North 62°57'32"West, a distance of 50.00 feet;

THENCE continue North westerly along said line, a distance of 100.81 feet to a point of curve to the left having a radius of 460.00 feet, a central angle of 00°53'46, and a chord bearing of North 63°24'25 West, 7.19 feet;

THENCE North westerly along the arc a distance of 7.19 feet;

THENCE continue westerly along said curve through a central angle of 12°36'08iại a distance of 101.18 feet, said curve also having a chord bearing of North 70°09'22"West, and chord distance of 100.97 feet; THENCE North 76°27'26"West, a distance of 75.64 feet to a point of curve to the left having a radius of 360.00 feet, a central angle of 52°59'51", and a chord bearing of South 77°02'39"West, 321.25 feet;

THENCE westerly along the arc a distance of 332.99 feet;

THENCE South 50°32'43"West, a distance of 39.03 feet;

THENCE South 33°09'48"East, a distance of 175.00 feet;

THENCE South 51°32'17iWest, a distance of 149.84 feet;

THENCE continue southwesterly along said line, a distance of 116.31 feet;

THENCE South 23°09'55iWest, a distance of 117.47 feet;

THENCE continue southwesterly along said line, a distance of 114.96 feet;

THENCE continue southwesterly along said line, a distance of 116.36 feet;

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(continued)

THENCE South 40°39'40iWest, a distance of 116.06 feet;

THENCE South 36°39'4 'ẠWest, a distance of 115.56 feet;

THENCE South 52°42'57iWest, a distance of 23.43 feet;

THENCE continue southwesterly along said line, a distance of 133.47 feet;

THENCE South 41°10'34"West, a distance of 10.13 feet;

THENCE continue southwesterly along said line, a distance of 119.16 feet;

THENCE South 22°54'30"West, a distance of 10.49 feet;

THENCE continue southwesterly along said line, a distance of 159.36 feet;

THENCE South 74°21'09iWest, a distance of 164.40 feet;

THENCE South 77°33'52iWest, a distance of 187.54 feet;

THENCE North 82°23'56"West, a distance of 199.60 feet;

THENCE South 86°56'17"West, a distance of 147.20 feet;

THENCE North 78°12'30iWest, a distance of 128.40 feet;

THENCE North 81°30'34iWest, a distance of 125.13 feet;

THENCE North 89°53'27"West, a distance of 170.00 feet;

THENCE North 22°02'01iEast, a distance of 232.26 feet to the point of curve of a non tangent curve to the right, of which the radius point lies North 29°33'59"East, a radial distance of 320.00 feet and having a chord bearing of North 59°46'20"West, 7.39 feet;

THENCE North westerly along the arc, through a central angle of 01°19'23", a distance of 7.39 feet;

THENCE North 59°06'38"West, a distance of 259.50 feet;

THENCE North 30°53'22iEast, a distance of 70.00 feet;

THENCE South 59°06'38"East, a distance of 264.51 feet;

THENCE North 62°37'25"East, a distance of 467.57 feet;

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(continued)

THENCE North 53°57'27"East, a distance of 86.45 feet;

THENCE continue North easterly along said line, a distance of 80.62 feet;

THENCE continue North easterly along said line, a distance of 84.49 feet;

THENCE North 30°49'24ạẠạEast, a distance of 114.89 feet;

THENCE North 39°53'31"East, a distance of 126.71 feet;

THENCE North 28°55'33iEast, a distance of 109.16 feet;

THENCE North 49°30'25"East, a distance of 96.41 feet;

THENCE continue North easterly along said line, a distance of 139.66 feet;

THENCE North 26°46'21"East, a distance of 166.41 feet;

THENCE North 56°32'23"East, a distance of 189.69 feet;

THENCE South 85°08'28"East, a distance of 178.56 feet;

THENCE North 88°36'06"East, a distance of 160.75 feet;

THENCE South 31°20'20iEast, a distance of 100.00 feet;

THENCE North 50°32'43iạiEast, a distance of 33.75 feet to a point of curve to the right having a radius of 430.00 feet, a central angle of 52°59'51", and a chord bearing of North 77°02'39"East, 383.71 feet;

THENCE easterly along the arc a distance of 397.74 feet;

THENCE South 76°27'26iEast, a distance of 75.64 feet to a point of curve to the right having a radius of 530.00 feet, a central angle of 13°29'54", and a chord bearing of South 69°42'29"East, 124.57 feet;

THENCE easterly along the arc a distance of 124.86 feet;

THENCE South 62°57'32iEast, a distance of 92.19 feet;

THENCE North 27°02'28iEast, a distance of 33.89 feet to the point of curve of a non tangent curve to the right, of which the radius point lies South 60°51'53iEast, a radial distance of 172.91 feet and having a chord bearing of North 64°13'55iEast, 198.83 feet;

THENCE North easterly along the arc, through a central angle of 70°11'36i, a distance of 211.83 feet;

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(continued)

THENCE South 82°31'14"East, a distance of 70.23 feet to the point of curve of a non tangent curve to the right, of which the radius point lies South 09°19'42"West, a radial distance of 116.27 feet and having a chord bearing of South 69°35'03"East, 44.72 feet;

THENCE easterly along the arc, through a central angle of 22°10'31", a distance of 45.00 feet;

THENCE South 58°29'30iEast, a distance of 214.89 feet;

THENCE North 80°03'27"East, a distance of 31.27 feet;

THENCE North 38°36'40iEast, a distance of 31.81 feet to the POINT OF BEGINNING.

Containing 1,304,985 square feet or 29.9583 acres, more or less.

TOGETHER WITH:

HIGH BLUFF TRACT: (All Units within the High Bluff tract are assigned to High Bluff Service Area and Neighborhood #2)

COMMENCING at the intersection of the southwesterly R/W of Barber Creek Road and the southwesterly t/w of State Road 316, continue along the westerly R/W of Barber Creek Road in a Southwesterly direction approximately 2,436' to an Iron Pin Set:

THENCE leaving said right-of-way and continuing along the following calls:

South 38°36'40"West, a distance of 31.81 feet;

THENCE South 80°03'27iWest, a distance of 31.27 feet;

THENCE North 58°29'30iWest, a distance of 214.89 feet to the point of curve of a non tangent curve to the left, of which the radius point lies South 31°30'14iWest, a radial distance of 116.27 feet;

THENCE westerly along the arc, through a central angle of 22°10'31", a distance of 45.00 feet;

THENCE North 82°31'14"West, a distance of 70.23 feet to the point of curve of a non tangent curve to the left, of which the radius point lies South 09°19'42"West, a radial distance of 172.91 feet;

THENCE southwesterly along the arc, through a central angle of 70°11'36i a distance of 211.83 feet;

THENCE South 27°02'28iWest, a distance of 33.89 feet;

THENCE North 62°57'32"W and continuing parallel to the centerline of the road known as Georgia Club Drive approximately 3,742 feet to a point, said point being the POINT OF BEGINNING:

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(continued)

THENCE crossing Georgia Club Drive at a bearing of South 30°53'22"West, a distance of 70.00 feet;

THENCE South 02°50'15"West, a distance of 149.57 feet;

THENCE continue southerly along said line, a distance of 156.85 feet;

THENCE continue southerly along said line, a distance of 88.73 feet;

THENCE South 19°57'01iWest, a distance of 280.03 feet;

THENCE continue southerly along said line, a distance of 58.95 feet;

THENCE South 86°41'19"West, a distance of 244.39 feet;

THENCE North 21°33'35"West, a distance of 34.64 feet;

THENCE continue northerly along said line, a distance of 255.85 feet;

THENCE continue northerly along said line, a distance of 175.31 feet;

THENCE North 51°31'21"West, a distance of 94.28 feet;

THENCE continue northwesterly along said line, a distance of 96.28 feet;

THENCE North 72°34'54"West, a distance of 228.99 feet;

THENCE continue westerly along said line, a distance of 202.98 feet to the point of curve of a non tangent curve to the right, of which the radius point lies North 63°38'26iWest, a radial distance of 580.00 feet and having a chord bearing of South 31°45'02iWest, 108.99 feet;

THENCE southwesterly along the arc, through a central angle of 10°46'56iồi a distance of 109.15 feet;

THENCE North 52°51'30iWest, a distance of 70.00 feet to the point of curve of a non tangent curve to the left, of which the radius point lies North 52°51'30"West, a radial distance of 510.00 feet and having a chord bearing of North 31°49'39"East, 94.47 feet;

THENCE northeasterly along the arc, through a central angle of 10°37'42i a distance of 94.60 feet;

THENCE North 26°30'48"East, a distance of 102.82 feet to a point of curve to the right having a radius of 390.00 feet, a central angle of 71°09'24, and a chord bearing of North 62°05'30"East, 453.82 feet;

THENCE northeasterly along the arc a distance of 484.35 feet;

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(continued)

THENCE South 82°19'48iạiEast, a distance of 336.65 feet to a point of curve to the right having a tadius of 790.00 feet, a central angle of 23°13'10", and a chord bearing of South 70°43'13"East, 317.97 feet;

THENCE easterly along the arc a distance of 320.15 feet;

THENCE South 59°06'38"East, a distance of 151.82 feet to the POINT OF BEGINNING.

Containing 678,756 square feet or 15.582 acres, more or less;

According to a field survey and plat performed and drafted by Schmitt Engineering and Land Surveying, dated 11/25/03

TOGETHER WITH:

WEXFORD GARDEN TRACT: (All Units within the Wexford Garden tract are assigned to Wexford Garden Service Area and Neighborhood #3)

COMMENCING at the intersection of the southwesterly r/w of Barber Creek Road and the southwesterly R/W of State Road 316, continue along the westerly R/W of Barber Creek Road in a Southwesterly direction approximately 2,436' to an Iron Pin Set:

THENCE leaving said right-of-way and continuing along the following calls:

S.38°36'40"W., a distance of 31.81 feet;

THENCE S.80°03'27iW., a distance of 31.27 feet;

THENCE N.58°29'30iW., a distance of 214.89 feet to the point of curve of a non tangent curve to the left, of which the radius point lies S.31°30'14iW., a radial distance of 116.27 feet;

THENCE westerly along the arc, through a central angle of 22°10'31i a distance of 45.00 feet;

THENCE N.82°31'14iW., a distance of 70.23 feet to the point of curve of a non tangent curve to the left, of which the radius point lies S.09°19'42iW., a radial distance of 172.91 feet;

THENCE southwesterly along the arc, through a central angle of 70°11'36i, a distance of 211.83 feet; THENCE S.27°02'28iW., a distance of 33.89 feet;

THENCE N.62°57'32iW and continuing parallel to the centerline of the road known as Georgia Club Drive approximately 4,001 feet to a point, said point being the POINT OF BEGINNING:

and the beginning of a curve to the left, of which the radius point lies S.23°01'13"W., a radial distance of 799.48 feet and having a chord bearing of N.74°42'04iW., 214.83 feet;

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(continued)

THENCE westerly along the arc, through a central angle of 15°26'33i, a distance of 215.48 feet;

THENCE N.82°19'48iW., a distance of 73.80 feet;

THENCE continue westerly along said line, a distance of 162.09 feet;

THENCE continue westerly along said line, a distance of 98.19 feet to the point of curve of a non tangent curve to the left, of which the radius point lies S.06°42'44iW., a radial distance of 519.16 feet and having a chord bearing of N.86°10'32iW., 52.31 feet;

THENCE westerly along the arc, through a central angle of 05°46'32i, a distance of 52.33 feet;

THENCE N.00°39'26"E., a distance of 20.00 feet;

THENCE continue northerly along said line, a distance of 89.48 feet;

THENCE N.07°04'39iW., a distance of 75.86 feet;

THENCE continue northerly along said line, a distance of 59.96 feet;

THENCE N.29°36'55"W., a distance of 35.64 feet;

THENCE continue northwesterly along said line, a distance of 104.66 feet;

THENCE N. 11°16'20iW., a distance of 92.13 feet;

THENCE continue northerly along said line, a distance of 43.40 feet;

THENCE N.38°19'53"W., a distance of 61.61 feet;

THENCE continue northwesterly along said line, a distance of 116.72 feet;

THENCE continue northwesterly along said line, a distance of 126.83 feet;

THENCE continue northwesterly along said line, a distance of 32.36 feet;

THENCE continue northwesterly along said line, a distance of 101.32 feet;

THENCE N.06°49'11"E., a distance of 50.95 feet;

THENCE N.75°27'20iE., a distance of 85.79 feet;

THENCE N.83°02'42"E., a distance of 76.51 feet;

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(continued)

THENCE continue easterly along said line, a distance of 90.89 feet;

THENCE continue easterly along said line, a distance of 66.17 feet;

THENCE S.87°46'40"E., a distance of 24.49 feet;

THENCE continue easterly along said line, a distance of 90.02 feet;

THENCE S.71°01'57iE., a distance of 94.57 feet;

THENCE continue easterly along said line, a distance of 126.10 feet;

THENCE continue easterly along said line, a distance of 10.83 feet;

THENCE S.64°29'23iE., a distance of 43.60 feet;

THENCE continue southeasterly along said line, a distance of 98.85 feet;

THENCE continue southeasterly along said line, a distance of 176.93 feet;

THENCE S.04°02'48iW., a distance of 82.42 feet;

THENCE continue southerly along said line, a distance of 90.12 feet;

THENCE continue southerly along said line, a distance of 90.12 feet;

THENCE continue southerly along said line, a distance of 90.12 feet;

THENCE continue southerly along said line, a distance of 90.12 feet;

THENCE continue southerly along said line, a distance of 90.12 feet;

THENCE S. 12°58'33iE., a distance of 92.78 feet;

THENCE continue southerly along said line, a distance of 92.78 feet;

THENCE continue southerly along said line, a distance of 121.92 feet to the POINT OF BEGINNING. Containing 621,305.04 square feet or 14.2632 acres, more or less.

Page 92

80884P0 1 43 EK:905 PG:97 EXHIBIT "B"

Expansion Property

ALL THOSE TRACTS OR PARCELS OF LAND being more particularly described as follows:

All that certain tract or parcel of land situate, lying and being in the 1742i District G.M., Barrow County, Georgia, containing 51.473 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows: Beginning at a concrete monument found at the intersection of the southerly right-of-way of Georgia Highway 316 with the westerly right-of-way margin of Craft Road, said point being the TRUE POINT OF BEGINNING;

From said True Point of Beginning running

THENCE along the westerly right-of-way margin of Craft Road, South 01 degree 22 minutes 34 seconds East, a distance of 32.65 feet to a point;

THENCE continuing along said right-of-way margin, the following courses and distances: South 37 degrees 23 minutes 33 seconds West, a distance of 147.06 feet to a point; said point being the start of a curve to the right having a radius of 725.67 feet and subtended by a chord of South 51 degrees 31 minutes 43 seconds West, 374.33 feet;

THENCE southwesterly along the arc of the curve a distance of 378.61 feet to a point;

THENCE South 64 degrees 56 minutes 48 seconds West, a distance of 85.16 feet to a point; said point being the start of a curve to the left having a radius of 769.95 feet, and subtended by a chord of South 52 degrees 54 minutes 04 seconds West, 408.58 feet;

THENCE southwesterly along the arc of the curve a distance of 413.53 feet to a point;

THENCE South 38 degrees 35 minutes 15 seconds West, a distance of 96.01 feet to a point; said point being the start of a curve to the right having a radius of 533.62 feet, and subtended by a chord of South 66 degrees 29 minutes 07 seconds West, 398.35 feet;

THENCE southwesterly along the arc of the curve a distance of 408.23 feet;

THENCE South 89 degrees 49 minutes 54 seconds West, a distance of 159.72 feet to a point, said point being the start of a curve to the left having a radius of 1950.00 feet, and subtended by a chord of South 84 degrees 56 minutes 43 seconds West, 332.21 feet;

THENCE westerly along the arc of the curve a distance of 332.61 feet to a point;

THENCE South 80 degrees 03 minutes 27 seconds West, a distance of 43.20 feet to a point on the easterly right-of-way margin of Barber Creek Road;

THENCE along the casterly right-of-way of Barber Creek Road the following courses and distances: North 10 degrees 24 minutes 40 seconds West, a distance of 129.21 feet to a point, said point being the start of a curve to the left having a radius of 6035.24 feet, and subtended by a chord of North 12 degrees 31 minutes 01 seconds West, 361.66 feet;

THENCE northerly along the arc of the curve a distance of 361.71 feet to a point, said point being the start of a curve to the left having a radius of 830.16 feet, and subtended by a chord of North 22 degrees 58 minutes 38 seconds West, 203.36 feet;

THENCE northwesterly along the arc of the curve a distance of 203.87 feet to a point; said point being the

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Expansion Property

(continued)

start of a curve to the left having a radius of 4699.47 feet, and subtended by a chord of North 29 degrees 44 minutes 40 seconds West, 282.27 feet;

THENCE northwesterly along the arc of the curve a distance of 282.31 feet;

THENCE North 30 degrees 58 minutes 33 seconds West, a distance of 81.66 feet to a point, said point being the start of a curve to the right having a radius of 3049.41 feet, and subtended by a chord of North 28 degrees 46 minutes 18 seconds West, 394.76 feet;

THENCE northwesterly along the arc of the curve, a distance of 395.04 feet to an iron pin set; THENCE leaving the easterly right-of-way margin of Barber Creek Road, North 49 degrees 58 minutes 17 seconds East, a distance of 373.35 feet to a 1/2" open top pipe found;

THENCE North 50 degrees 42 minutes 25 seconds East, a distance of 440.52 feet to a 1/2" open top pipe found on the southerly right-of-way margin of Georgia Highway 316;

THENCE continuing along the southerly right of way margin of Georgia Highway 316, South 58 degrees 20 minutes 46 seconds East, a distance of 648.59 feet to a concrete monument found, said point being the start of a curve to the left having a radius of 7676.71 feet, and subtended by a chord of South 62 degrees 55 minutes 19 seconds East, 1254.78 feet;

THENCE southeasterly along the arc of the curve a distance of 1256.18 feet to a concrete monument found at the intersection of the southerly right-of-way margin of Georgia Highway 316 with the easterly right-ofway margin of Craft Road, said point being the TRUE POINT OF BEGINNING.

SUBJECT TO a 30' access easement shown and described on the plat entitled "Survey for: Jakob Eltz Trust, dated December 15, 1987, prepared by Ray N. Woods, Land Surveyor, and recorded in Plat Book 29, page 126, Barrow County records; said access easement being reserved in that certain Warranty Deed dated April 22, 1988, from Falvin Haygood, et al, to Jakob Eltz, as Trustee, and recorded in Deed Book 101, page 199, and thereafter re-recorded in Deed Book 101, page 327; Barrow County, Georgia records. LESS AND EXCEPT [Cemetery Out Parcel]:

All that certain tract or parcel of land situate, lying and being in the 1742"i District G.M., Barrow County, Georgia, containing 1.816 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows: To find the True Point of Beginning, commence at a 1/2" open top pipe found at the intersection of the line common to Barber Creek Land Company and now or formerly of Thomas with the southerly right-ofway margin of Georgia Highway 316;

THENCE South 50 degrees 42 minutes 25 seconds West along said property line, a distance of 149.93 feet to a point;

THENCE South 35 degrees 47 minutes 29 seconds East, a distance of 34.83 feet to a point along the centerline of a 30' access easement;

THENCE continuing the following courses and distances along said easement centerline: South 50 degrees 08 minutes 28 seconds East, a distance of 117.15 feet to a point; South 40 degrees 41 minutes 39 seconds East, a distance of 103.67 feet to a point; South 44 degrees 59 minutes 58 seconds East, a distance of 142.58 feet to a point; South 60 degrees 14 minutes 19 seconds East, a distance of 52.59 feet to a point;

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Expansion Property

(continued)

South 51 degrees 34 minutes 29 seconds East, a distance of 84.83 feet to a point; North 78 degrees 07 minutes 27 seconds East, a distance of 23.21 feet to a point; North 11 degrees 52 minutes 36 seconds West, a distance of 42.11 feet to a 1/2" rebar found, said point being the TRUE POINT OF BEGINNING.

From said True Point of Beginning, running

THENCE North 81 degrees 34 minutes 27 seconds East, a distance of 298.55 feet to a 1/2" rebar found; THENCE South 03 degrees 50 minutes 04 seconds West, a distance of 301.91 feet to a 1/2" rebar found; THENCE South 73 degrees 58 minutes 18 seconds West, a distance of 216.82 feet to a 1/2" rebar found; THENCE North 11 degrees 52 minutes 36 seconds West, a distance of 324.30 feet to a 1/2" rebar found and the TRUE POINT OF BEGINNING.

Tract 2:

All that certain tract or parcel of land situate, lying and being in the 1742ạiDistrict G.M., Barrow County, Georgia, containing 5.204 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows: To find the True Point of Beginning, commence at a concrete monument found at the intersection of the southerly right-of-way of Georgia Highway 316 with the westerly right-of-way margin of Craft Road, running

THENCE along the westerly right-of-way margin of Craft Road, South 01 degree 22 minutes 34 seconds East, a distance of 32.65 feet to a point;

THENCE continuing along said right-of-way margin, the following courses and distances: South 37 degrees 23 minutes 33 seconds West, a distance of 147.06 feet to a point; said point being the start of a curve to the right having a radius of 725.67 feet and subtended by a chord of South 51 degrees 31 minutes 43 seconds West, 374.33 feet;

THENCE southwesterly along the arc of the curve a distance of 378.61 feet to a point;

THENCE South 64 degrees 56 minutes 48 seconds West, a distance of 85.16 feet to a point; said point being the start of a curve to the left having a radius of 769.95 feet, and subtended by a chord of South 52 degrees 54 minutes 04 seconds West, 408.58 feet;

THENCE southwesterly along the arc of the curve a distance of 413.53 feet to a point;

THENCE South 38 degrees 35 minutes 15 seconds West, a distance of 96.01 feet to a point;

THENCE continue South 38 degrees 35 minutes 15 seconds West along said line, a distance of 226.23 feet to a point, said point being the start of a curve to the right having a radius of 3791.24 feet, and subtended by a chord of South 38 degrees 26 minutes 51 seconds West, 25.99 feet;

THENCE southwesterly along the arc of the curve a distance of 25.99 feet to a point; said point being the TRUE POINT OF BEGINNING;

From said True Point of Beginning, being the start of a curve to the right having a radius of 3791.24 feet, and subtended by a chord of South 40 degrees 33 minutes 09 seconds West, 252.55 feet,

THENCE southwesterly along the arc a distance of 252.60 feet to a point;

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Expansion Property

(continued)

THENCE South 42 degrees 56 minutes 22 seconds West, a distance of 196.47 feet to a point; THENCE North 45 degrees 16 minutes 56 seconds West, a distance of 10.13 feet to a point; THENCE South 43 degrees 10 minutes 27 seconds West, a distance of 102.68 feet to a point, said point being the start of a curve to the left having a radius of 1122.67 feet and subtended by a chord of South 36 degrees 20 minutes 45 seconds West, 266.96 feet;

THENCE southwesterly along the arc of the curve a distance of 267.59 feet to a point;

THENCE South 29 degrees 31 minutes 03 seconds West, a distance of 148.57 feet to a point at the intersection of the northerly right-of-way margin of Craft Road with the easterly right-of-way margin of Barber Creek Road;

THENCE along the easterly right-of-way of Barber Creek Road, North 10 degrees 10 minutes 17 seconds West, a distance of 680.78 feet to a point;

THENCE leaving said right-of-way, North 80 degrees 03 minutes 27 seconds East, a distance of 42.85 feet to a point, said point being the start of a curve to the right having a radius of 1870.00 feet, and subtended by a chord of North 84 degrees 56 minutes 42 seconds East, 318.56 feet;

THENCE easterly along the arc of the curve a distance of 318.95 feet to a point;

THENCE North 89 degrees 49 minutes 56 seconds East, a distance of 159.72 feet to a point, said point being the start of a curve to the left having a radius of 614.04 feet, and subtended by a chord of North 78 degrees 38 minutes 18 seconds East, 211.93 feet;

THENCE northeasterly along the arc of the curve a distance of 213.00 feet to the TRUE POINT OF BEGINNING.

Tract 3:

All that certain tract or parcel of land situate, lying and being in the 1742ạồ District G.M., Barrow County, Georgia, containing 37.986 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows: BEGINNING at a concrete right-of-way monument found at the intersection of the line common to Barber Creek Land Company and now or formerly of Roland, Gordon & Harris with the southerly right-of-way margin of Georgia Highway 316, said point being the POINT OF BEGINNING; running

THENCE South 69 degrees 30 minutes 35 seconds East, a distance of 178.64 feet to a concrete right-ofway monument found, said point being the start of a curve to the right having a radius of 7489.44 feet, and subtended by a chord of South 65 degrees 08 minutes 21 seconds East, 1110.09 feet;

THENCE along the southerly right-of-way margin of Georgia Highway 316 along the arc of the curve a distance of 1111.11 feet to a #4 rebar found;

THENCE leaving said right-of-way, North 86 degrees 10 minutes 30 seconds West, a distance of 98.05 feet to a #4 rebar found;

THENCE South 15 degrees 24 minutes 13 seconds West, a distance of 497.82 feet to a #4 rebar found; THENCE South 86 degrees 36 minutes 47 seconds East, a distance of 482.20 feet to a #4 rebar found; THENCE North 81 degrees 33 minutes 53 seconds East, a distance of 133.60 feet to a #4 rebar found; THENCE North 43 degrees 01 minutes 16 seconds East, a distance of 84.44 feet to a #4 rebar found;

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THENCE South 86 degrees 26 minutes 50 seconds East, a distance of 134.52 to a concrete right-of-way monument found;

THENCE South 04 degrees 27 minutes 36 seconds West, a distance of 49.76 feet to an iron pin set; THENCE North 86 degrees 21 minutes 21 seconds West, a distance of 110.02 feet to a 5/8" open top pipe found;

THENCE South 42 degrees 52 minutes 49 seconds West, a distance of 78.96 feet to a 5/8" open top pipe found;

THENCE South 81 degrees 34 minutes 31 seconds West, a distance of 156.20 feet to a 5/8iồi open top pipe found;

THENCE North 86 degrees 29 minutes 21 seconds West, a distance of 425.42 feet to a #4 rebar found; THENCE South 44 degrees 11 minutes 43 seconds East, a distance of 283.74 feet to a #4 rebar found; THENCE South 59 degrees 30 minutes 29 seconds West, a distance of 909.26 feet to a #4 rebar found; THENCE North 84 degrees 15 minutes 52 seconds West, a distance of 145.28 feet to a #4 rebar found; THENCE North 12 degrees 14 minutes 54 seconds East, a distance of 541.90 feet to an 1/2" open top pipe;

THENCE South 80 degrees 45 minutes 47 seconds West, a distance of 154.76 feet to an iron pin found; THENCE South 60 degrees 31 minutes 36 seconds West, a distance of 133.86 feet to a point; THENCE South 89 degrees 10 minutes 03 seconds West, a distance of 36.91 feet to a point; THENCE North 36 degrees 54 minutes 37 seconds West, a distance of 599.03 feet to a point; THENCE North 37 degrees 48 minutes 37 seconds West, a distance of 450.93 feet to a point; THENCE North 52 degrees 03 minutes 32 seconds East, a distance of 200.00 feet to a #4 rebar found; THENCE continue North 52 degrees 03 minutes 32 seconds East, a distance of 502.89 feet to a concrete right-of-way monument found along the southerly right-of-way of Georgia Highway 316, said point being the POINT OF BEGINNING.

Tract 4:

All that certain tract or parcel of land situate, lying and being in the 1742 District G.M., Barrow County, Georgia, containing 0.957 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows: To find the TRUE POINT OF BEGINNING, commence at a nail found at the centerline of the intersection of Robertson Bridge Road and Doc McLocklin Road, running

THENCE along the southerly right of way margin of Doc McLocklin Road South 64 degrees 21 minutes 45 seconds East, a distance of 1263.72 feet to a 1/2" open top pipe found on the southerly right of way margin of Doc McLocklin Road, said 1/2" open top pipe being the TRUE POINT OF BEGINNING; From said TRUE POINT OF BEGINNING,

THENCE continue along the southerly right of way margin of Doc McLocklin Road South 88 degrees 55 minutes 39 seconds East, a distance of 192.70 feet to an iron pin set;

THENCE leaving the southerly right of way margin of Doc McLocklin Road and running South 01 degree

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17 minutes 44 seconds East, a distance of 217.87 feet to a 1/2" open top pipe found;

THENCE North 87 degrees 15 minutes 00 seconds West, a distance of 193.39 feet to an iron pin set; THENCE North 01 degree 11 minutes 39 seconds West, a distance of 212.19 feet to a 1/2" open top pipe found on the southerly right of way margin of Doc McLocklin Road and the TRUE POINT OF BEGINNING.

All that certain tract or parcel of land situate, lying and being in the 1742nd District G.M., Barrow County, Georgia, Containing 13.502 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows: BEGINNING at a concrete monument found at the intersection of the southerly right-of-way of Georgia Highway 316 with the easterly right-of-way margin of Craft Road, said point being the TRUE POINT OF BEGINNING; running

THENCE along the southerly right-of-way margin of Georgia Highway 316 the following courses and distances: South 68 degrees 12 minutes 31 seconds East, a distance of 106.91 feet to a concrete monument found; said concrete monument being the start of a curve to the left having a radius of 7789.43 feet and an arc length of 620.65 feet, being subtended by a chord of South 71 degrees 11 minutes 38 seconds East for a distance of 620.49 feet along the right-of-way of Georgia Highway 316 to a coucrete monument found; THENCE leaving said right of way margin, South 49 degrees 25 minutes 34 seconds West for a distance of 319.92 feet to a 3/8" square pin found;

THENCE South 41 degrees 17 minutes 24 seconds East, a distance of 407.42 feet to a 1/2" rebar found; THENCE South 48 degrees 46 minutes 15 seconds West, a distance of 604.70 feet to a 1/2" rebar found THENCE continue South 48 degrees 46 minutes 15 seconds West along said line, a distance of 30.3 feet to THENCE, along the centerline of said road, the following courses and distances: North 32 degrees 03 minutes 09 seconds West, a distance of 252.35 feet to a point; North 27 degrees 39 minutes 27 seconds West, a distance of 98.65 feet to a point; North 23 degrees 39 minutes 03 seconds West, a distance of 171.92 feet to a point; North 19 degrees 06 minutes 23 seconds West, a distance of 58.98 feet to a point; North 09 degrees 48 minutes 29 seconds West, a distance of 77.66 feet to a point; North 15 degrees 21 minutes 13 seconds West, a distance of 229.65 feet to a 3/8" rebar found; North 44 degrees 34 minutes 36 seconds West, a distance of 146.04 feet to a point on the easterly right-of-way margin of Craft Road; THENCE continuing along the easterly right-of-way margin of Craft Road North 46 degrees 37 minutes 39 seconds East, a distance of 31.76 feet to a point, said point being the start of a curve to the left having a radius of 785.67 feet, and subtended by a chord of North 40 degrees 25 minutes 40 seconds East, 105.40 feet;

THENCE continuing along said right-of-way and northeasterly along the arc of the curve a distance of 105.48 feet to a point;

THENCE North 37 degrees 31 minutes 18 seconds East, a distance of 194.64 feet to a concrete monument

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found at the intersection of the southerly right-of-way margin of Georgia Highway 316 with the easterly right-of-way margin of Craft Road, said point being the TRUE POINT OF BEGINNING.

Tract 6:

All that certain tract or parcel of land situate, lying and being in the 240ạ ", 242"d 1741t and 1742"d Districts G.M., Barrow and Oconee Counties, Georgia, Containing 913.979 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows:

BEGINNING at a 1/2i open top pipe at the intersection of the southerly right-of-way margin of Doc McLocklin Road and the westerly right-of-way margin of Barber Creek Road, said point being the POINT OF BEGINNING and the start of a curve to the left, having a radius of 3109.41 feet and subtended by a chord of South 29 degrees 19 minutes 04 seconds East, 343.41 feet;

THENCE along the westerly right-of-way margin of Barber Creek Road and southeasterly along the arc of the aforesaid curve a distance of 343.59 feet to a point;

THENCE continuing along said right-of-way the following courses and distances: South 30 degrees 48 minutes 28 seconds East, a distance of 64.16 feet to a point, said point being the start of a curve to the right having a radius of 4635.95 feet, and subtended by a chord of South 29 degrees 50 minutes 48 seconds East, 295.09 feet;

THENCE southeasterly along the arc of the curve a distance of 295.14 feet to a point; said point being the start of a curve to the right having a radius of 770.16 feet, and subtended by a chord of South 21 degrees 44 minutes 51 seconds East, 221.86 feet;

THENCE southerly along the arc of the curve a distance of 222.64 feet to a point;

THENCE South 12 degrees 52 minutes 38 seconds East, a distance of 191.61 feet to a point; said point being the start of a curve to the right having a radius of 6037.47 feet, and subtended by a chord of South 10 degrees 50 minutes 28 seconds East, 237.43 feet;

THENCE southerly along the arc of the curve a distance of 237.45 feet;

THENCE South 10 degrees 15 minutes 57 seconds East, a distance of 1182.74 feet to an iron pin set; THENCE leaving said right-of-way, North 73 degrees 57 minutes 14 seconds West, a distance of 117.15 feet to a point;

THENCE North 68 degrees 24 minutes 56 seconds West, a distance of 114.71 feet to a point; THENCE North 58 degrees 40 minutes 45 seconds West, a distance of 65.27 feet to a point;

THENCE North 47 degrees 33 minutes 16 seconds West, a distance of 86.40 feet to a point;

THENCE North 41 degrees 28 minutes 23 seconds West, a distance of 70.50 feet to a point;

THENCE North 37 degrees 31 minutes 11 seconds West, a distance of 19.43 feet to a point;

THENCE South 01 degree 41 minutes 12 seconds West, a distance of 524.50 feet to a #4 rebar found; THENCE South 75 degrees 04 minutes 31 seconds East, a distance of 410.20 feet to an iron pin set along the easterly right-of-way margin of Barber Creek Road;

THENCE continuing along said right-of-way, South 01 degrees 55 minutes 46 seconds West, a distance of 398.06 feet to a square bar found;

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THENCE leaving said right-of-way, South 53 degrees 05 minutes 24 seconds West, a distance of 717.82 feet to a 1/2" pipe;

THENCE South 40 degrees 25 minutes 58 seconds East, a distance of 536.41 feet to a #3 rebar found along the easterly right-of-way margin of Barber Creek Road;

THENCE along said right-of-way the following courses and distances: South 52 degrees 33 minutes 45 seconds West, a distance of 233.15 feet to a point, said point being the start of a curve to the left having a radius of 3116.12 feet, and subtended by a chord of South 48 degrees 24 minutes 36 seconds West, 240.06 feet;

THENCE southwesterly along the arc of the curve a distance of 240.12 feet, said point being the start of a curve to the left having a radius of 929.22 feet, and subtended by a chord of South 32 degrees 16 minutes 53 seconds West, 236.40 feet;

THENCE southwesterly along the arc of the curve a distance of 237.04 feet;

THENCE South 27 degrees 07 minutes 24 seconds West, a distance of 505.42 feet to a 5/8" rebar found; THENCE leaving said right-of-way, North 52 degrees 49 minutes 08 seconds West, a distance of 1139.12 THENCE South 45 degrees 27 minutes 55 seconds West, a distance of 444.02 feet to a point in the center of Barber Creek;

THENCE along the centerline of Barber Creek the following courses and distances: South 39 degrees 45 minutes 53 seconds East, a distance of 28.88 feet to a point;

THENCE South 57 degrees 57 minutes 23 seconds East, a distance of 142.54 feet to a point;

THENCE South 48 degrees 50 minutes 21 seconds East, a distance of 61.13 feet to a point;

THENCE South 49 degrees 07 minutes 48 seconds East, a distance of 111.83 feet to a point;

THENCE South 53 degrees 39 minutes 44 seconds East, a distance of 188.72 feet to a point; THENCE South 52 degrees 29 minutes 23 seconds East, a distance of 79.96 feet to a point;

THENCE South 51 degrees 05 minutes 48 seconds East, a distance of 110.19 feet to a point;

THENCE South 65 degrees 43 minutes 23 seconds East, a distance of 106.92 feet to a point;

THENCE South 51 degrees 37 minutes 12 seconds East, a distance of 165.65 feet to a point;

THENCE South 57 degrees 15 minutes 11 seconds East, a distance of 112.19 feet to a point;

THENCE South 62 degrees 26 minutes 45 seconds East, a distance of 79.86 feet to a point;

THENCE South 53 degrees 09 minutes 57 seconds East, a distance of 91.74 feet to a point, said point being the start of a curve to the right having a radius of 1238.84 feet, and subtended by a chord of South 33 degrees 52 minutes 59 seconds West, 93.62 feet;

THENCE along the easterly right-of-way margin of Barber Creek Road and southwesterly along the arc of the curve a distance of 93.64 feet;

THENCE continuing along said right-of-way, South 35 degrees 04 minutes 27 seconds West, a distance of 225.03 feet to a point; said point being the start of a curve to the left having a radius of 557.12 feet, and subtended by a chord of South 29 degrees 05 minutes 26 seconds West, 230.18 feet;

THENCE southwesterly along the arc of the curve a distance of 231.85 feet, said point being the start of a curve to the left having a radius of 1604.20 feet, and subtended by a chord of South 06 degrees 00 minutes 51 seconds West, 252.24 feet;

THENCE southerly along the arc of the curve a distance of 252.50 feet;

THENCE South 03 degrees 46 minutes 24 seconds West, a distance of 604.23 feet to a point; said point

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being the start of a curve to the right having a radius of 971.34 feet, and subtended by a chord of South 11 degrees 07 minutes 14 seconds West, 294.98 feet;

THENCE southerly along the arc of the curve a distance of 296.13 feet to a point, said point being the start of a curve to the right having a radius of 3659.19 feet, and subtended by a chord of South 24 degrees 03 minutes 46 seconds West, 370.38 feet;

THENCE southwesterly along the arc of the curve a distance of 370.54 feet to a point, said point being the start of a curve to the right having a radius of 1242.11 feet, and subtended by a chord of South 33 degrees 12 minutes 35 seconds West, 372.44 feet;

THENCE southwesterly along the arc of the curve a distance of 373.85 feet;

THENCE South 39 degrees 33 minutes 20 seconds West, a distance of 549.61 feet to a point; THENCE South 39 degrees 59 minutes 12 seconds West, a distance of 236.28 feet to a point; said point being the start of a curve to the right having a radius of 6883.61 feet, and subtended by a chord of South 39 degrees 59 minutes 15 seconds West, 149.21 feet;

THENCE southwesterly along the arc of the curve a distance of 149.21 feet to a #4 rebar found; THENCE leaving said right-of-way, North 51 degrees 34 minutes 21 seconds West, a distance of 471.60 feet to a square bar;

THENCE South 24 degrees 23 minutes 30 seconds West, a distance of 458.57 feet to a #4 rebar found; THENCE South 03 degrees 10 minutes 16 seconds East, a distance of 306.50 feet to a #4 rebar found; THENCE North 51 degrees 24 minutes 28 seconds West, a distance of 905.26 feet to a 2" rod; THENCE North 50 degrees 06 minutes 59 seconds West, a distance of 559.80 feet to a #4 rebar found; THENCE North 51 degrees 19 minutes 30 seconds West, a distance of 317.99 feet to a #4 rebar found; THENCE South 30 degrees 24 minutes 59 seconds West, a distance of 1372.40 feet to a #4 rebar found; THENCE South 52 degrees 30 minutes 19 seconds East, a distance of 377.51 feet to an iron post; THENCE South 51 degrees 55 minutes 34 seconds East, a distance of 417.91 feet to a #4 rebar found; THENCE North 33 degrees 36 minutes 49 seconds East, a distance of 501.21 feet to a point;

THENCE North 87 degrees 48 minutes 17 seconds East, a distance of 55.48 feet to a point;

THENCE South 77 degrees 19 minutes 08 seconds East, a distance of 75.90 feet to a point;

THENCE South 56 degrees 52 minutes 31 seconds East, a distance of 135.82 feet to a point;

THENCE South 67 degrees 12 minutes 07 seconds East, a distance of 113.52 feet to a 1/2" open top pipe; THENCE South 41 degrees 17 minutes 02 seconds West, a distance of 433.97 feet to an iron post; THENCE South 37 degrees 26 minutes 22 seconds West, a distance of 474.02 feet to a large poplar tree; THENCE South 43 degrees 17 minutes 04 seconds West, a distance of 250.90 feet to a #5 rebar found; THENCE South 24 degrees 13 minutes 46 seconds West, a distance of 905.97 feet to a #5 rebar found; THENCE North 24 degrees 59 minutes 36 seconds West, a distance of 349.44 feet to a #5 rebar found; THENCE North 24 degrees 55 minutes 50 seconds West, a distance of 699.84 feet to a #4 rebar found; THENCE North 54 degrees 58 minutes 47 seconds West, a distance of 226.83 feet to a #4 rebar found; THENCE South 46 degrees 48 minutes 22 seconds West, a distance of 71.71 feet to an iron pin set; THENCE North 62 degrees 01 minutes 48 seconds West, a distance of 214.72 feet to an iron post; THENCE North 67 degrees 24 minutes 14 seconds West, a distance of 335.92 feet to a #4 rebar found; THENCE North 42 degrees 49 minutes 21 seconds East, a distance of 800.51 feet to an axle found; THENCE North 33 degrees 29 minutes 04 seconds East, a distance of 1729.14 feet to an axle found; THENCE North 50 degrees 54 minutes 50 seconds West, a distance of 441.13 feet to #4 rebar found;

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THENCE North 51 degrees 56 minutes 10 seconds West, a distance of 520.14 feet to a 1" iron bar found; THENCE North 51 degrees 16 minutes 41 seconds West, a distance of 688.79 feet to a 1" iron bar found; THENCE South 44 degrees 59 minutes 28 seconds West, a distance of 1767.05 feet to an axle found; THENCE North 43 degrees 49 minutes 47 seconds West, a distance of 400.12 feet to a #4 rebar found; THENCE North 54 degrees 00 minutes 41 seconds West, a distance of 477.75 feet to a #4 rebar found; THENCE South 45 degrees 44 minutes 21 seconds West, a distance of 440.84 feet to a #5 rebar found along the northeastern right-of-way margin of Georgia Highway 53;

THENCE continuing along said right-of-way the following courses and distances: North 43 degrees 48 minutes 31 seconds West, a distance of 156.67 feet to a point;

THENCE North 41 degrees 29 minutes 54 seconds West, a distance of 246.45 feet to a point; THENCE North 37 degrees 46 minutes 20 seconds West, a distance of 341.04 feet to a #4 rebar found; THENCE leaving said right-of-way, North 54 degrees 58 minutes 18 seconds East, a distance of 591.71 feet to a #4 rebar found;

THENCE North 15 degrees 19 minutes 09 seconds West, a distance of 215.80 feet to a #4 rebar found; THENCE North 50 degrees 23 minutes 01 seconds East, a distance of 1229.16 feet to a #4 rebar found; THENCE North 48 degrees 37 minutes 35 seconds East, a distance of 310.94 feet to a #4 rebar found; THENCE North 34 degrees 44 minutes 44 seconds East, a distance of 1177.93 feet to a 1/2" open top pipe found;

THENCE North 35 degrees 04 minutes 03 seconds East, a distance of 1062.64 feet to a 1/2" open top pipe found;

THENCE North 32 degrees 35 minutes 40 seconds East, a distance of 683.93 feet to a 1/2" open top pipe found;

THENCE North 46 degrees 20 minutes 40 seconds East, a distance of 627.00 feet to a #4 rebar found; THENCE North 65 degrees 20 minutes 38 seconds East, a distance of 459.83 feet to a point in the centerline of Barber Creek;

THENCE along the centerline of Barber Creek the following courses and distances: North 43 degrees 46 minutes 14 seconds West, a distance of 82.15 feet to a point;

THENCE North 42 degrees 03 minutes 44 seconds West, a distance of 155.79 feet to a point; THENCE leaving the centerline of the creek and running

THENCE North 48 degrees 39 minutes 03 seconds East, a distance of 642.18 feet to a #4 rebar found; THENCE North 41 degrees 44 minutes 37 seconds West, a distance of 1075.25 feet to a point along the southerly right-of-way margin of Robinson Bridge Road;

THENCE continuing along said right-of-way margin North 86 degrees 09 minutes 48 seconds East, a distance of 150.83 feet to a point; said point being the start of a curve to the left having a radius of 1236.33 feet, and subtended by a chord of North 72 degrees 04 minutes 13 seconds East, 456.96 feet; THENCE easterly along the arc of the curve a distance of 459.61 feet to a point, said point being the start of a curve to the left having a radius of 365.43 feet, and subtended by a chord of North 28 degrees 54 minutes 58 seconds East, 244.88 feet;

THENCE northeasterly along the arc of the curve a distance of 249.71 feet to a point;

THENCE leaving said right-of-way South 76 degrees 30 minutes 25 seconds East, a distance of 1107.58 feet to a point in the centerline of creek;

THENCE continuing along the centerline of the creek the following courses and distances: South 03 de-

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grees 03 minutes 40 seconds East, a distance of 232.01 feet to a point;

THENCE South 00 degrees 26 minutes 54 seconds West, a distance of 465.39 feet to a point;

THENCE South 02 degrees 56 minutes 57 seconds East, a distance of 143.92 feet to a point;

THENCE South 21 degrees 25 minutes 52 seconds East, a distance of 79.84 feet to a point;

THENCE leaving the centerline of the creek, North 83 degrees 26 minutes 32 seconds East, a distance of 704.87 feet to an iron pin set;

THENCE North 41 degrees 38 minutes 42 seconds West, a distance of 131.26 feet to a #4 rebar found; THENCE North 50 degrees 37 minutes 55 seconds East, a distance of 1814.50 feet to a 1/2" open top pipe found;

THENCE North 50 degrees 37 minutes 35 seconds East, a distance of 206.45 feet to a 1/2" open top pipe found along the southerly right-of-way margin of Doc McLocklin Road, said point being the start of a curve to the left having a radius of 970.58 feet, and subtended by a chord of North 57 degrees 48 minutes 45 seconds East 358.57 feet;

THENCE northeasterly along the arc of the curve a distance of 360.65 feet to the POINT OF BEGINNING.

All that certain tract or parcel of land situate, lying and being in the 240hh and 1741" District G.M., Barrow and Oconee Counties, Georgia, containing 136.499 acres, more or less, according to a survey for Barber Creck Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows:

BEGINNING at a #4 rebar set at the intersection of the easterly right-of-way margin of Barber Creek Road with the southeasterly right-of-way margin of Craft Road, said point being the TRUE POINT OF BEGINNING; running

THENCE along the southeasterly right-of-way margin of Craft Road the following courses and distances: North 29 degrees 31 minutes 03 seconds East, a distance of 245.48 feet to a point, said point being the start of a curve to the right having a radius of 1042.05 feet, and subtended by a chord of North 36 degrees 20 minutes 45 seconds East, 247.79 feet;

THENCE northeasterly along the arc of the curve a distance of 248.37 feet to a point;

THENCE North 43 degrees 10 minutes 27 seconds East, a distance of 99.22 feet to a #5 rebar found; THENCE leaving said right-of-way, South 46 degrees 39 minutes 35 seconds East, a distance of 926.56 feet to a #4 rebar found;

THENCE North 50 degrees 42 minutes 33 seconds East, a distance of 411.30 feet to a #5 rebar found; THENCE South 18 degrees 07 minutes 07 seconds East, a distance of 600.34 feet to a #5 rebar found; THENCE South 18 degrees 07 minutes 14 seconds East, a distance of 2416.83 feet to a #4 rebar found; THENCE South 53 degrees 29 minutes 12 seconds West, a distance of 1407.69 feet to an iron pin set along the northern margin of a 50' ingress / egress easement;

THENCE North 39 degrees 39 minutes 48 seconds West, a distance of 2160.39 feet to an iron pin set along the easterly right-of-way margin of Barber Creek Road, said point being the start of a curve to the

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left having a radius of 372.52 feet, and subtended by a chord of North 35 degrees 27 minutes 12 seconds East, 157.30 feet;

THENCE northeasterly along said right-of-way margin and along the arc of the curve a distance of 158.49 feet to a point; said point being the start of a curve to the left having a radius of 905.11 feet, and subtended by a chord of North 13 degrees 16 minutes 49 seconds East, 145.46 feet;

THENCE northerly along the arc of the curve a distance of 145.51 feet;

THENCE continuing along said right-of-way margin the following courses and distances: North 08 degrees 45 minutes 29 seconds East, a distance of 517.60 feet to a point;

THENCE North 09 degrees 25 minutes 40 seconds East, a distance of 165.47 feet to a 5/8" rebar found; SHE GO Not 2 Negr South 50 degrees 42 minutes 33 seconds West, a distance of 12.25 feet to a 1/2" rebar found;

THENCE North 10 degrees 24 minutes 24 seconds East, a distance of 346.47 feet to a point, said point being the start of a curve to the left having a radius of 1229.83 feet and subtended by a chord of North 00 degrees 09 minutes 31 seconds West, 450.99 feet;

THENCE northerly along the arc of the curve a distance of 453.56 feet to a point;

THENCE North 10 degrees 40 minutes 59 seconds West, a distance of 207.04 feet to a #4 rebar set at the intersection of the easterly right-of-way margin of Barber Creek Road with the southeasterly right-of-way margin of Craft Road, said point being the TRUE POINT OF BEGINNING.

Tract 8:

All that certain tract or parcel of land situate, lying and being in the 240" District G.M., Oconee County, Georgia, containing 11.868 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows:

To find the True Point of Beginning, commence at a 1" rod found at the intersection of the southeastern right-of-way margin of Barber Creek Road and the southwestern margin of a 50' ingress/ egress easement; THENCE South 39 degrees 39 minutes 48 seconds East, a distance of 385.09 feet to a #5 rebar found, said point being the TRUE POINT OF BEGINNING;

From said True Point of Beginning, running

THENCE South 39 degrees 39 minutes 48 seconds East, a distance of 1181.35 feet to a #5 rebar found; THENCE South 44 degrees 49 minutes 25 seconds West, a distance of 423.35 feet to a #5 rebar found; THENCE North 40 degrees 21 minutes 46 seconds West, a distance of 1229.04 feet to a #5 rebar found; THENCE North 51 degrees 14 minutes 46 seconds East, a distance of 436.45 feet to the TRUE POINT OF BEGINNING.

TOGETHER WITH a 50-foot wide easement for ingress and egress running in a northwesterly direction along the northeasterly boundary of the property hereinabove described to Barber Creek Road, all as shown on said plat to which reference is hereinabove made; said easement being more particularly described in that certain Agreement between Carl Baughman, Edwin L. Mahler, Woodlands of Georgia, Inc.,

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North American Timberlands, Inc., and Forest E. Kellogg, dated September 30, 1982, recorded in Deed Book 50, page 760, in said Clerk's Office.

R/W Tract:

All that certain tract or parcel of land situate, lying and being in the 1742"d District G.M., Barrow County, Georgia, containing 1.494 acres, more or less, according to a survey for Barber Creek Land Company, LLLP, Anglo Irish Bank Corporation and Lawyers Title Insurance Corp., prepared by Schmitt Engineering and Land Surveying, Inc., dated June 2, 2003, and being more particularly described as follows: To find the True Point of Beginning, commence at an iron pin set at the intersection of the northerly rightof-way margin of Craft Road and the easterly right-of-way margin of Barber Creek Road; running THENCE along the easterly right-of-way margin of Barber Creek Road, North 10 degrees 10 minutes 17 seconds West, a distance of 680.78 feet to a point; said point being the TRUE POINT OF BEGINNING. From said True Point of Beginning and leaving the easterly right-of-way margin of Barber Creek Road, running THENCE North 80 degrees 03 minutes 27 seconds East, a distance of 42.85 feet to a point, said point being the start of a curve to the right having a radius of 1870.00 feet, and subtended by a chord of North 84 degrees 56 minutes 42 seconds East, 318.56 feet;

THENCE easterly along the arc of the curve a distance of 318.95 feet to a point;

THENCE North 89 degrees 49 minutes 56 seconds East, a distance of 159.72 feet to a point; said point being the start of a curve to the left having a radius of 614.04 feet, and subtended by a chord of North 78 degrees 38 minutes 18 seconds East, 211.93 feet;

THENCE easterly along the arc of the curve a distance of 213.00 feet to a point on the northerly right-ofway margin of Craft Road; said point being the start of a curve to the left having a radius of 3791.24 feet, and subtended by a chord of North 38 degrees 26 minutes 51 seconds East, 25.99 feet;

THENCE southwesterly along the arc of the curve a distance of 25.99 feet to a point,

THENCE North 38 degrees 35 minutes 15 seconds East, a distance of 226.23 feet to a point;

THENCE leaving said right of way margin and running along a curve to the right having a radius of 533.62 feet, and subtended by a chord of South 66 degrees 29 minutes 07 seconds West, 398.35 feet; THENCE southwesterly along the arc of the curve a distance of 408.23 feet to a point;

THENCE South 89 degrees 49 minutes 54 seconds West, a distance of 159.72 feet to a point; said point being the start of a curve to the left having a radius of 1950.00 feet, and subtended by a chord of South 84 degrees 56 minutes 43 seconds West, 332.21 feet;

THENCE westerly along the arc of the curve a distance of 332.61 feet to a point;

THENCE South 80 degrees 03 minutes 27 seconds West, a distance of 43.20 feet to a point on the easterly right-of-way margin of Barber Creek Road;

THENCE continuing along the easterly right-of-way margin of Barber Creek Road, South 10 degrees 08 minutes 10 seconds East, a distance of 80.00 feet to a point on the easterly right-of-way margin of Barber Creek Road, said point being the TRUE POINT OF BEGINNING.

AND LESS AND EXCEPT that land initially submitted to this Charter as described on Exhibit "A."

Page 105

BK0884PG0156 EK=905 PG=110 EXHIBIT "B"

Expansion Property

(continued)

In addition to the above, as the owner or with the written consent of the owner, the Founder may also submit to the terms of the Charter any real property situated within five miles of the perimeter boundaries of the property described on Exhibit "A" or this Exhibit "B."

Note to clerk and title examiners:

This Charter is not intended to create an encumbrance on title to the property described in this Exhibit "B." Such title may be encumbered only with the consent of the owner by filing a Supplement in accordance with Chapter 17.

Page 106

BX0884PG0157 EK:905 PG:111 EXHIBIT (r)C"

Initial Rules

The purpose of Rules is not to anticipate all acceptable or unacceptable behavior in advance and eliminate all improvements or activities that fall outside of "the norm." In fact, it is expressly intended that the Reviewer under Chapter 5, and the Board, as appropriate, have discretion to approve or disapprove items, or to enforce or not enforce technical violations of the Governing Documents, based upon aesthetic or other considerations consistent with the established guidelines. As such, while something may be approved or permitted for one Unit under one set of circumstances, the same thing may be disapproved for another Unit under a different set of circumstances. The exercise of discretion in approving or enforcement shall not be construed as a waiver of approval or enforcement rights, nor shall it preclude the Board from taking enforcement action in any appropriate circumstances.

The following shall apply to all of the property submitted to the Charter until such time as they are modified pursuant to the Charter.

1. General. Units shall be used only for residential, recreational, and related purposes (which may include, without limitation, an information center and/or a sales office for any real estate broker retained by the Founder to assist in the sale of property described in Exhibit"A" or "B," offices for any property manager retained by the Association, or business offices for the Founder or the Association) consistent with this Charter and any Supplement.

2. Restricted Activities. Unless expressly authorized by, and then subject to such conditions as may be imposed by, the Board, the following activities are prohibited within the Community:

(a) Overnight parking of vehicles on public or private streets or thoroughfares, or parking of commercial vehicles or equipment, mobile homes, recreational vehicles, golf carts, boats and other watercraft, trailers, stored vehicles, or inoperable vehicles in places other than enclosed garages or other locations screened from view of adjacent property in a manner approved by the Reviewer pursuant to Chapter 5; provided, construction, service and delivery vehicles shall be exempt from this provision during normal business hours for such period of time as is reasonably necessary to provide service or to make a delivery to

(b) Raising, breeding, or keeping animals except that a reasonable number of dogs, cats, or other usual and common household pets may be permitted in a Unit. However, those pets which are permitted to roam free, or, in the Board's sole discretion, make objectionable noise, endanger the health or safety of, or constitute a nuisance or inconvenience to the occupants of other Units shall be removed upon the Board's request. If the pet owner fails to honor such request, the Board may remove the pet. Dogs shall be kept on a leash or otherwise confined in a manner acceptable to the Board whenever outside the dwelling. Pets shall be registered, licensed, and inoculated as required by law;

(c) Any activity that emits foul or obnoxious odors outside the Unit or creates noise or other conditions that tend to disturb the peace or threaten the safety of the occupants of other Units;

(d) Any activity that violates local, state, or federal laws or regulations; however, the Board shall have no obligation to take enforcement action in the event of a violation;

Page 107

BK0884PG0158 EK: 905 PG:112 EXHIBIT (r)C"

Initial Rules

(continued)

(e) Pursuit of hobbies or other activities that tend to cause an unclean, unhealthy, or untidy condition to exist outside of enclosed structures on the Unit;

(f) Any noxious or offensive activity which in the reasonable determination of the Board tends to cause embarrassment, discomfort, annoyance, or nuisance to persons using the Common Area or to the occupants of other Units;

(g) Outside burning of trash, leaves, debris, or other materials, except during the normal course of constructing a dwelling on a Unit;

(h) Use or discharge of any radio, loudspeaker, horn, whistle, bell, or other sound device so as to be audible to occupants of other Units, except alarm devices used exclusively for security purposes;

(i) Accumulation of rubbish, trash, or garbage except between regular garbage pick ups, and then only in approved containers;

(1) Discharge of firearms; provided, the Board shall have no obligation to take action to prevent or stop such discharge;

(k) On-site storage of fuel, except that a reasonable amount of fuel may be stored on each Unit for emergency purposes and operation of lawn mowers and similar tools or equipment, and the Association shall be permitted to store fuel for operation of maintenance vehicles, generators, and similar equipment. This provision shall not apply to any underground fuel tank authorized pursuant to Chapter 5;

(I) Any activities which materially disturb or destroy the vegetation, wildlife, wetlands, or air quality within the Community or which use excessive amounts of water or which result in unreasonable levels of sound or light pollution;

(m) Regular use of any Unit to host religious activities, motivational meetings, classes, parties, or similar activities requiring the parking of a number of vehicles exceeding the number that can be accom modated in the host's garage, driveway, and along the curb of the street immediately in front of and adjacent to the Unit;

(n) Swimming, wading, or use of boats or other watercraft with gasoline-powered engines on any lake within the Community, except that the Founder and the Association may use gasoline-powered boats for construction, maintenance, and repair of the lakes, dams, and any community docks;

(o) Conversion of any carport or garage to finished space for use as an apartment or other integral part of the living area on any Unit without prior approval pursuant to Chapter 5;

(p) Any modification of any thing, permanently or temporarily, on the outdoor or exterior portions of the Unit, whether such portion is improved or unimproved, except in strict compliance with the provisions of Chapter 5 of the Charter. This shall include, without limitation, signs, basketball hoops, and swing sets and similar sports and play equipment; clotheslines; garbage cans; woodpiles; above-ground

Page 108

BK0884 PG0159 EK: 905 PG:113 EXHIBITIC"

Initial Rules

(continued)

swimming pools; docks, piers, and similar structures; hedges, walls, dog runs, animal pens, or fences of any kind; decks; storage sheds; and satellite dishes and antennas, except that:

(i) an antenna designed to receive direct broadcast satellite services, including direct-to-home satellite services, that is one meter or less in diameter; or

(ii) an antenna designed to receive video programming services via multipoint distribution services, including multi-channel multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement;

(ii) an antenna that is designed to receive television broadcast signals;

(collectively, "Permitted Antennas") shall be permitted on Units, subject to such reasonable requirements as to location and screening as may be set forth in the Architectural Guidelines, consistent with applicable law, in order to minimize obtrusiveness as viewed from streets and adjacent property. The Founder and/or the Association shall have the right, without obligation, to erect an aerial, satellite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or a portion of the Community, should any master system or systems be utilized by the Association and require such exterior apparatus;

(q) The use of any golf cart within the Community that has not been leased from or otherwise approved by the owner of the Private Amenity that includes a golf course and is operated as The Georgia Club, or its designee;

(r) The installation, placement and/or use of an individual private mailbox on any Unit; and (s) The display, posting or placement of signs, including "for sale" or "for lease" signs, banners, posters, placards, billboards, advertisements, bulletins, announcements, symbols, or any other manifestation of a message, slogan, or symbol of any kind upon or attached to any vehicle, any portion of a Unit so as to be visible from the outside of the dwelling on the Unit, or anywhere within the Community otherthan areas, if any, that the Board may designate for posting of such items, except that (i) the Founder may authorize designated Builders to post signs in accordance with such rules and design criteria as the Founder may adopt; and (ii) those signs installed by the Founder during the Development and Sale Period, or by the Association, and those signs required by Georgia law shall be permitted.

3. Prohibited Conditions. The following shall be prohibited in the Community:

(a) Plants, animals, devices, or other things of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the Community; and

Page 109

BKO884PGO160 EK=905 PG=114 EXHIBIT "C"

Initial Rules

(continued)

(b) Structures, equipment, or other items on the exterior portions of a Unit which have become rusty, dilapidated, or otherwise fallen into disrepair.

Covenants

Page 1

BK0884PS0194

Prepared by / Upon recording, please return to:

Jo Anne P. Stubblefield Cross-Reference to: Book 88* Hyatt & Stubblefield, P.C. Page_53 1200 Peachtree Center, South Tower

225 Peachtree Street, N.E.

Atlanta, GA 30303

STATE OF GEORGIA

P> 3017 COUNTY OF BARROW

SUPPLEMENT TO THE COMMUNITY CHARTER

FOR

THE GEORGIA CLUB

(THE VILLAGE)

This Supplement to the Community Charter for The Georgia Club ("Supplement) is made this [C " day of Recember, 2003.., by Barber Creek Land Company, LLLP, a Georgia limited liability limited partnership ("Founder").

Background Statement

Founder is the developer of the planned community located in Barrow County, Georgia, known a he Georgia Club. On December (e+ -, 2003, Founder executed and filed that Community Charter for The Georgia Club, recorded in Deed Book 884., Page _53. -, et seq,, in the Office of the Clerk of the Superior Court for Barrow County, Georgia (such Community Charter, as it may be amended or supplemented from time to time, is referred to in this Supplement as the "Charter").

Pursuant to Section 3.2 and Section 17.3 of the Charter, Founder reserved the right to record one or more Supplements designating any portion of the property subject to the Charter as a Service Area and imposing additional cevenants and easements on such property. Any such Supplement requires the consent of the owner of the property being submitted, if othet than the Founder.

The property described on Exhibit "A" to this Supplement (the "Subject Property") is a portion of the property initially submitted to the Charter and described on Exhibit "A" thereof. Founder, as the owner of the Subject Property, desires to designate Service Areas within the Subject Property and to submit the Subject Property to the additional covenants and esements described in this Supplement.

NOW, THEREFORE, Founder hereby declares that the real property described on Exhibit&Af of this Supplement shall be subject to the provisions of the Charter and this Supplement, which shall hereafter encumber the title to such property and shall be binding upon all persons having any right, title,

Page 2

BK0884PG0195

or any interest in such property, their respective heirs, legal representatives, successors, successors-in-title, and assigns. The provisions of this Supplement shall also be binding upon The Georgia Club Community Association, Inc., a Georgia nonprofit corporation (the 'Association) in accordance with the terms of the Charter.

ARTICLE I

Definitions

The definitions set forth in Chapter 1 of the Charter are incorporated by reference in this Supplement.

ARTICLE IL

Desirnation of Neighborhoods and Service Areas

Pursuant to Chapter 3 of the Charter, the Additional Property shall be assigned to that Neighborhood (or those Neighborhoods) and to that Service Area (or those Service Areas), if any, designated on Exhibit "A" to this Supplement.

ARTICLE III

Additional Covenants, Restrictions and Easements

The additional covenants, restrictions and easements, if any, set forth in Exhibit "B of this Supplement shall apply to the Additional Property and shall be binding upon the owners and occupants of Units within the Additional Property, their guests and invitees, in addition to the terms of the Charter.

ARTICLE IV

Amendment

4.1.

Until termination of the Founder Control Period, the Founder may unilaterally amend this

Thercafter, the Founder may unilaterally amend this Supplement if such amendment is necessary (a) to bring any provision into compliance with any applicable governmental stature, rue, regulation, or judicial determination; (b) to enable any reputable title insurance company to issue title insurance coverage on the Units; (c) to enable any instirutional or governmental lender, purchaser, insurer or guarantor of mortgage loans, including, for example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to make, purchase, insure or guarantee morigage loans on the Units; or (d) to satisfy the requirements of any local, state or federal governmenral agency. However, any such amendment shall not adversely affect the title to any Unit unless the Owner

In addition, during the Development and Sale Period, the Founder may unilaterally amend this Supplement to submit additional property to the terms hereof, to reflect any revisions or amendments to any plats referenced on Exhibit At hereof, and, provided the amendment has no materlal adverse effect upon any right of any Owner without such Owner's consent in writing, for any other purpose.

Norwithstanding this reserved right, a revision or amendment to a plat shall not require an amendment to this Supplement so long as no property is added or excluded from the plat by the revision or amendment thereto. The Founder reserves the right to record revised, amended, or additional plats that

2

.......

Page 3

BK 0884PG0196

only affect internal boundarles between lots, combine lots, or subdivide lots shown on the original plat and, so long as they do not alter the overall property submitred to the Charter by this Supplement, such revised, amended or additional plats shall nor necessitate an amendment to this Supplement.

4.2. By Owners.

Except as otherwise specifically provided above, this Supplement may be amended only by the affirmative vote or written consent, or any combination thereof, of Owners of at least 67% of the Units within the Additional Property and the written consent of the Association, acting through its board of directors. In addition, so long as the Founder owns any Unit within the Additional Property, the consent of the Founder shall be required.

Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative vores required for action to be raken under that clause.

3.3. Validity and Effecrive Date.

No amendment may remove, revoke, or modify any right or privilege of the Founder or without the writen consent of the Founder (or the assignee of such right or privilege).

If an Owner consents to any amendment to this Supplement, it will be conclusively presumed thar such Owner has the authority to consent, and no contrary provision in any Mortgage or contract between the Owner and a third party will affect the validity of such amendment.

Any amendment shall become effective npon recording, unless a later effective date is specified in the amendment. No action to challenge the validity of an amendment may be brought more than two years after its recordation. In no event shall a change of conditions or circumstances operate to amend any provisions of this Supplement.

[continued on next page]

Page 4

BK0884PG0197

In winess of the foregoing, the Founder has executed this Supplement on the 'Of day of

FOUNDER: BARBER CREEK LAND COMPANY, LLLP, a

Georgia límited liability limited partnership

me: STAmES M. VANDEN BARI

Its: CEO

Name:.

ITS: _

Lace eped and delivered this fO day of 100S, in the presence of:

WITNESS

Hassa O Batsor

OTARY PUBLI

GLORIA J. B

COY 1. 204

¡un..

20603/jps

.........

Page 5

BK0884PGO198

EXHIBIT "A"

Subiect Property

ALL THOSE TRACTS OR PARCELS OF LAND lying and being in Georgia Militia District 1741, In the city of Statham, Barrow County, Georgia, and being more particuiarly described as foilows:

Southwesterly direction approximately 2,436' to an Iron Pin Set;

THENCE South 10°09'36"East, a distance of 102.46 feet to an iron pin set;

THENCE leaving said right-of-way and continuing the following calls:

THENCE North 58°29'46"West, a distance of 32.33 feet;

THENCE South 80°03'27"West, a distance of 80.20 feet to a point of curve to the right having a radlus of 167.00 feet and a central angle of 57°15'18*;

THENCE westerly along the are a distance of 166.88 feet;

THENCE North 42°48'14ạWest, a distance of 105.12 feet to the point of curve of a non rangent curve to the left, of which the radius point lies South 33°15'21"West, a radial distance of 112.91 feet;

THENCE northwesterly along the arc, through a central angle of 13°54'28", a distance of 27.41 feet; THENCE continue westerly along said curve through a central angle of 79°4255°, a distance of 157.09 feet;

THENCE, South 27°02'28"West, a distance of 32.66 feet to an iron pin set being the POINT OF BEGINNING;

THENCE South 62°56'17 East, a distance of 32.47 feet to the point of curve of a non tangent curve to the left, of which the radius point lies North 27°04'59"East, a radial distance of 270.00 feet and having a chord bearing of South 71°09'33"East, 77.41 feet;

THENCE easterly along the arc, through a central angle of 16°29'03*, a distance of 77.68 feet;

THENCE South 79°24'04" East, a distance of 109.64 feet to a point of curve to the right having a radius of 240.00 feet, a central angle of 22°33'51, and a chord bearing of South 68°07'09 East, 93.91 feet;

THENCE easterly along the arc a distance of 94.52 feet;

THENCE South 56°50'13"East, a distance of 50.43 feet to a point of curve to the right having a radius of 210.00 feer, a central angle of 56°50'13", and a chord bearing of South 28°25'07"East, 199.88 feet;

THENCE southeasterly along the arc a distance of 208.32 feet;

-.....

Page 6

BX0884PG0199

THENCE South, a distance of 75.90 feet to a point of curve to the right having a radius of 430.00 fect, a central angle of 18°03'09, and a chord bearing of South 09°01'35"West, 134.92 feet;

THENCE southerly along the arc a distance of 135.48 feet;

THENCE South 18°03'09"West, a distance of 123.38 feet to a point of curve to the tight having a radius of 505.00 feet, a central angle of 10°4048, and a chord bearing of South 23°23'33"West, 94.00 feet; THENCE southwesterly along the arc a distance of 94.13 feet;

THENCE South 28"44'08" West, a distance of 50.40 feet to the point of curve of a non tangent curve to the right, of which the radius point lies North 62°16'l2ạẠạWest, a radial distance of 1,033.07 feet and having a chord bearing of South 32°46'32"West, 181.71 feet;

THENCE southwesterly along the arc, through a central angle of 10°05'28", a distance of 181.95 feer to the point of curve of a non tangent curve to the right, of which the radius point lies North 52°09'50"West, a radial distance of 330.00 feer and having a chord bearing of South 62°43'35*West, 277.78 feet;

THENCE southwesterly along the arc, through a central angle of 49°4649", a distance of 286.71 feet; THENCE South 87°3700"West, a distance of 140.11 feet to the point of curve of a non tangent curve to the left, of which the radius point lies South 02*20'2 IạEast, a radial distance of 269.38 feet and having a chord bearing of South 69°08'21"West, 171.15 feet;

THENCE westerly along the arc, through a central angle of 37°02'37", a distance of 174.16 feet:

THENCE South 50°39'41"West, a distance of 167.30 feet to a point of curve to the right having a radius of 492.00 feet, a central angle of 14°48'09i, and a chord bearing of South 58°03'46"West, 126,76 feet; THENCE southwesterly along the arc a distance of 127.11 feet;

THENCE North 24°31'53*West, a distance of 60.01 feet;

THENCE North 23°29'19"West, a distance of 48.23 feet to a point of curve to the left having a radius of 475.00 feet, a central angle of 03°15'06, and a chord bearing of North 25°06'52"West, 26.95 feet; THENCE northwesterly along the are a distance of 26.96 feet;

THENCE North 26°44'25"West, a disrance of 59.27 feet to a point of curve to the right having a radius of 80.00 feet, a central angle of 62°54'59", and a chord bearing of North 04°43'05"East, 83.50 feet;

THENCE northerly along the are a distance of 87.85 feet;

THENCE North 32°22'20"West, a distance of 180.71 feet;

THENCE Norrh 27°02'28"East, a distance of 29.59 feet;

THENCE continue northeasterly along said line, a distance of 991.42 feet;

Page 7

BK0884PG0200

THENCE South 76°27'26"East, a distance of 8.04 feet to a point of curve to the right having a radius of 460.00 feet, a central angle of 12°36'08, and a chord bearing of South 70°09'22"East, 100.97 feet; THENCE easterly along the arc a distance of 101.18 feet;

THENCE continue southeasterly along said curve through a central angle of 00°53'46i, a distance of 7.19 feet, said curve also having a chord bearing of South 63°24'25"East, and chord distance of 7.19 feet;

THENCE South 62°57'32 East, a distance of 100.81 feet;

THENCE continue southeasterly along said line, a distance of 50.00 feet;

THENCE North 28°1024" East, a distance of 70.03 feet to the POINT OF BEGINNING.

Containing 955,947 square feet or 21.945 acres, more or less.

NEIGHBORHOOD AND SERVICE AREA DESIGNATION: (All Units within The Village tract are assigned to The Village Service Area. In addition, Units within The Village tract that are served by Limired Common Drives are assigned to The Village Service Area A and Units within The Village tract that are served by alleyways are assigned to The Village Service Area B. All Units within The Village tract are assigned to Neighborhood #1).

Page 8

BK0884PG020ł

EXHIBIT "B*

Additional Covenants, Reatrictions and Fatementa

L. Maintenance of Lawns and Other Landscaping. Pursuant to Section 10.2(a) of the

Charter, the Association shall be responsible for performing, or causing to be performed, on behalf of the

Owners of all Units within The Village Service Area, the following:

(a) mowing of lawns and fertilizing of lawns and shrubbery on and adjacent to Units to the

extent that the Owners would otherwise be responsible pursuant to Section 6.1 of the Charter, except that

the Association shall have no responsibility for lawns, shrubbery, or other landscaping located within any

fenced area of the yard; and

(b) pruning shrubbery, mulching of shrub beds, and treating shrubbery for disease and

insects, as che Board deems appropriate.

Each Owner shall be responsible for maintaining any irrigation system located on such Owner's

Unit and for irrigating the landscaping on the Unit as needed to keep it in a healthy, attractive condition,

subject to any local ordinances that may from time to time restrict outside use of water. Each Owner shall

be responsible for removal and replacement of dead or diseased lawns and other plant material on such

Owner's Unit.

Pursuant to Section 12.2(c) of the Charter, the Board may allocate the costs that the

Association incurs in providing maintenance to Units pursuant to this Section equally among all Unirs in

the Service Arca or at an equal rate per square foot of landscaped area on a Unit, as it deems appropriate.

2. Maintenance of Limited Common Drives. Pursuant to Section 10.2(a) of the Charter,

the Association shall be responsible for performing, or causing to be performed, on behalf of the Owners of

all Units within The Village Service Area A, maintenance, repair and replacement of the motor courts or

Limited Common Drives serving Units within Service Area A as shown on the recorded subdivision plat

of The Village at The Georgia Club, excepr that the Association shall have no responsibility for removal of

snow or ice from such motor courts or Limited Common Drives.

Pursuant to Section 12.2(c) of the Charter, the costs that the Association incurs in performing

its responsibilities under this Section shall be allocated equally among all Units in The Village Service Area

A, subject to the right of the Association to recover from the Owner of a Unit any costs incurred in

maintaining, repairing or replacing a Limited Common Drive due to damage caused by the negligence or

other actions of the Owner or any occupant of the Unit, or their guests or invitees.

3. Maintenance of Allevways. Pursuant to Section 10.2(a) of the Charter, the Assoclation

shall be responsible for performing, or causing to be performed, on behalf of the Owners of all Units within

The Village Service Area B, maintenance, repair and replacement of the alleyways serving Units within

Service Area B as shown on the recorded subdivision plat of The Village at The Georgia Club, except that

the Association shall have no responsibility for removal of snow or ice from such alleyways.

Pursuant to Section 12.2(c) of the Charter, the costs that the Association incurs in performing

its responsibilities under this Section shall be allocated equally among all Units in The Village Service Area

.......

Page 9

BK0884PG0202

B, subject to the right of the Association to recover from the Owner of a Unit any costs incurred in maintaining, repairing or replacing any portion of an alleyway due to damage caused by the negligence or other actions of the Owner or any occupant of the Unit, or their guests or invitees.

Bylaws

Page 1

BK0884PGO161 BK: 905 PG=116

EXHIBIT IDI

BY-LAWS

OF

THE GEORGIA CLUB COMMUNITY ASSOCIATION, INC.

Page 2

BK0884PG0162 BK=905 PG:117

• TABLE OF CONTENTS •

Page

Article 1 Name, Principal Office, and Definitions 1

1.1 Name.

1.2. Principal Office. 1 1.3. Definitions.

Article 2 Membership: Meetings, Quorum, Voting, Proxies

2.1. Membership.

2.2.

2.3. 2 2.4. . 2 2.5.

2.6.

2.7. Voting..

2.8. Proxies.

2.9. Quorum.

2.10.

2.11. 4 Article 3 Board of Directors: Selection, Meetings, Powers

A. Composition and Selection.

3.1. Governing Body; Qualifications.

3.2. Number of Directors.

3.3. Selection of Directors; Term of Office.

3.4. Nomination and Election Procedures.

3.5. Removal of Directors and Vacancies. .. 7 B. Meetings..

3.6. Organizational Meetings..

3.7. Regular Meetings.

3.8. Special Meetings..

3.9. Notice; Waiver of Notice. 00 00 00 00 00 1 3.10. Telephonic Participation in Meetings.

3.11. Quorum of Board...

3.12. Conduct of Meetings.

3.13. Open Meetings; Executive Session.

3.14. Action Without a Formal Meeting..

C. Powers and Duties..

3.15. Powers.

3.16. Duties..

3.17. Conflicts of Interest.

Page 3

BK0884PG0163 BK:905 PG:118

Article 4 Transition from Founder to Owner Control.. • 11

4.1. Transition Process.

4.2. Education and Communication.

4.3. Transition Committee.

4.4. Professional Assistance.

Article 5 Officers. .. 12

5.1. Officers

5.2. Election and Term of Office.

5.3. Removal and Vacancies.

5.4. Powers and Duties.

5.5. Resignation.

Article 6 Committees • 13

6.1. General. 13 6.2. Covenants Committee. 13 6.3. Service Area Committees. 14 Article 7 Standards of Conduct; Liability, and Indemnification .. 14

7.1. Standards for Directors and Officers 14 7.2. Liability... . 14 7.3. Indemnification

7.4. Advancement of Expenses..

7.5. Board and Officer Training.

Article 8 Management and Accounting. • 16

8.1. Compensation of Directors and Officers

8.2. Right of Founder Member to Disapprove Actions. .. 17 8.3. Managing Agent.

8.4. Accounts and Reports.

8.5. Borrowing.

8.6. Right to Contract.

8.7. Agreements, Contracts, Deeds, Leases, Checks, Etc .. 19 Article 9 Enforcement Procedures. • 19

9.1. Notice and Response. 19 9.2. Hearing..

9.3. Appeal. ... 20 Article 10 Miscellaneous • 20

10.1. Fiscal Year ... 20 10.2. Parliamentary Rules. ... 20 10.3. Conflicts ... 20 10.4. Books and Records. .. 20 10.5. Notices. … 21 10.6. Amendment. .. 21

Page 4

Bl< 0 8 8 L} PG 0 I 6 4 BK:905 PG:119 BY-LAWS OF THE GEORGIA CLUB COMMUNITY ASSOCIATION, INC.

Article 1 Name,. Principal. Office, and Definitions 1.1. Name.

The name of the corporation is The Georgia Club Community Association, Inc. (the "Association").

1.2. Principal Office.

The Association may have such offices in Barrow and/or Oconee County, Georgia and the Athens, Georgia or metropolitan Atlanta, Georgia area, as the Board may determine or as the Associatioi11s affairs may require.

1.3. Definitions.

The words used in these By .. Laws shall be given their norrn,al, commonly understood definitions. Capi ..

talized terms shall have the meaning ascribed to them in the Community Charter for The Georgia Club recorded. by Barber Creek Land Company, a Georgia limited liabili-ty limited partnership ("Founder") in the Office of the Clerk of the Superior Court of Barrow County, Georgia, as it may be amended and sup ..

plemented (the "Charter"). The term "majority," as used in these By .. Laws, means those votes, Owners, or other group, as the context may indicate, totaling more than 50% of the total eligible number.

Article 2 Membership: Meetings, Quorum, Voting, Proxies 2.1. Membership.

The Association shall have two classes of membership, Owner Membership and Founder Membership, as more fully described in the Charter. Provisions of the Charter pertaining to membership are incorpo.- rated by this reference.

2.2. Place of Meetings.

The Association shall hold meetings at the Association's principal office or at such other suitable place the Board may designate.

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2.3. Association Meetings.

(a) General The first Association meeting, whether a regular or special meetirig, shall be held within one year after the Association's incorporation. ·

(b) Amwal Meetings. The Board shall schedule regular annual meetings of the Members to occur within 90 days before or after the close of the Association's fiscal year, on such date and at such time and place as the Board shall determine.

(c} Special Meetings. The President may call special meetings of the Members. In addition, the President or the Secretary shall call a special meeting if so directed by Board resolution or within 30 days ,1fteire-ceipt ~f a petition statingthe ptlrpose of the -meeting and signed -by at le~st 5-0 Me~be~s. o~ -by Members entitled td cast at least 10% of the total votes in the Association.

2.4. Notice of Meetings.

At least 21 but not more than 30 days before any annual meeting of the Members, and at least 10 but not more than 30 days before any special meeting of the Members, the President, the Secretary, or the offi- cers or other persons calling a meeting of the Members shall deliver or cause to be delivered to each Mem- ber a written notice stating the place, day, and hour of the meeting and the items on the agenda for such meeting, including the general nature of any proposed amendment to the Charter or By-Laws, any pro- posed budget changes, and any proposal to remove a director. If proxies are permitted, the notice shall also state the pr~cedures for appointing proxies. No business shall be transacted at a special meeting except as stated in the notice. Such notice shall be delivered by such means as permitted under Section 10.5.

2.5. Waiver of Notice.

Waiver of notic;:e of an Association meetirig shall be deemed the equivalent of proper notice. Any Member may waive, in writing, notice of any Association meeting, either before or after such meeting. A Member's attendance at a meeting shall be deemed a waiver by such Member of notice of the time, date, and place thereof, unless the Member specifically objects to lack of proper notice ~t the time the meeting is called to order. Attendance at a special meeting also shall be deemed a waiver of notice of all business transacted at such meeting unless an objection: on the basis of lack of proper ·not~ce is raised before the business is put to a vote ..

2.6. Adjournment of Meetings.

If any Association meeting cannot be held because a quorum is not present, the Voting Delegates enti- tled to cast a majority of the votes represented at such meeting may adjourn the meeting to a time at least 5 but not more than 30 days from the scheduled date of the original meeting. At the reconvened meeting, if a quorum is present, any business may be transacted which might have been transacted at the meeting originally called. If those in attendance at the original meeting do not fix a time and place for reconvening the meeting, or if for any reason a new date is fixed for reconvening the meeting after adjournment, the Board shall provide notice to the Members of the time and place for reconvening the meeting in the man- ner prescribed for regular meetings.

Voting Delegates present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the departure of enough Voting Delegates to leave less than a quorum; however, at least a majority of the votes required to constitute a quorum, or such larger

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BK O 8 8 l~ PG 0 1 6 6 BK:905 PG:121 percentage as may be required under the Charter or applicable law for specific actions, must approve any action taken.

2. 7. Voting.

(a) Voting Rights. Members shall have such voting rights as are set forth in the Charter, which provi~ sions are specifically incorporated by this reference. Until such time as the Board first calls for election of a Voting Delegate for any Neighborhood, the Owners within such Neighborhood shall be entitled personally to cast the votes attributable to their respective Units on any issue as to which the Voting Delegate repre ..

sen ting their Unit would be entitled to vote under the Governing Documents.

(hr Election of Votitig Delegates. The -OwnerMembers owning Units within each N~ighborhood shall elect a Voting Delegate to cast all votes attributable to their Units on all Association matters requiring a membership vote, except as otherwise specified in the Charter or these By .. Laws. In addition, each Neighborhood shall elect an alternate Voting Delegate who shall be responsible for casting such votes in the absence of the Votihg Delegate.

The Board shall call for· the first election of a Voting Delegate and alternate Voting Delegate from each Neighborhood at least 30 days prior· to any Association meeting at which Voting Delegates will be called upon to vote; however, the Board may in its discretion postpone election of V~ting Delegates until 4 or more Neighborhoods have been established. The first Voting Delegates elected shall setve until the close of the annual meeting following ·the first anniversary of their election. Thereafter, the Board shall call for an election of Voting Delegates and alternates on an annual basis to coincide with the annual meeting, with Voting Delegate's terms -to commence upon the close of such annual meeting and expire upon the close of the next annual meeting following their election.

Voting Delegate elections shall be by ballots cast by mail, computer, or at a meeting of the Owner Members within such Neighborhood, as the Board determines. Upon written petition signed by Owner Members holding at least 20% of the votes attributable to Units within any Neighborhood, the election for such Neighborhood shall be held at a meeting. Candidates for election as Voting Delegates may be nomi- nated by the Board, a nominating committee the Board may appoint, or from the floor at any meeting at which such election is to be held. In addition or in the alternative, any Person may submit his or her name for consideration.

The presence, in person or by proxy, or the filing of ballots. of Owner Members representing at least 20% of the total votes attributable to Units in the Neighborhood shall constitute a quorum for any Neighborhood meeting or election. In the event of a failure to obtain a. quorum or vacancy in such posi- tions for any Neighborhood, the Board may appoint a Voting Delegate or alternate Voting Delegate to rep- resent such Neighborhood until a successor is elected.

Subject to the above quorum requirement, in any election of Voting Delegates the candidate who re- ceives the greatest number of votes shall be elect~d as the Voting Delegate and the candidate receiving the next greatest number of votes shall be elected as the alternate Voting Delegate. In the event of a tie vote among the leading cai~didates, the Voting Delegate shall be determined by drawing names from a hat, with the first person drawn being the Voting Delegate and the second being the alternate Voting Delegate. The Voting Delegate and the alternate Voting Delegate shall setve a term of one year or until their successors are elected, whichever is longer.

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(c) Removal of Voting Delegates. Any Voting Delegate may be removed, with or without cause, upon the vote or written petition of Owner Membe.rs representing a majority of the total number of Units in the · Neighborhood that the Voting Delegate represents.

2.8. Proxies.

Voting Delegates may not vote by proxy but only in person or through their designated alternates;

however, any Voting Delegate who is entitled to cast only the vote(s) for his own Unit(s) pursuant to the Charter, these Bylaws, or Georgia law may cast such vote(s) in person or by proxy. Likewise, if a Member is entitled personally to cast the vote for his Unit on ahy matter, he or she may vote in person or by proxy, _subject to the limitations of Georg~a law and subject to any specific provision to the contrary in the Charter or these By-Laws. Every proxy shall be in writing, shall identify the Unit for which it is given, shall be signed by the Member or the Member's duly authorized attorney-in-fact, and shall be dated and filed with the Association's Secretary prior to the meeting for which it is to be effective. Unless the proxy specifically provided otherwise, a proxy shall be presumed to cover all votes which the Member giving such proxy is entitled to cast, and in the event of any conflict between two or more proxies pttrporting to cover the same voting rights, the later dated proxy shall prevail, or if dated as of the same date, both shall be deemed inva- lid.

Every proxy shall be revocable and shall automatically cease upon (a) conveyance of any Unit for which it was given, (b) the Secretary's receipt of written notice of revocation of the proxy or of the death or judi- cially declared incompetence of a Member who is a natural person, or (c) 11 months from the date of the proxy, unless a different period is specified in the proxy, except that no proxy shall be effective for longer than three years.

2.9. Quorum.

Except as these By-Laws or the Charter otherwise provide, the presence of V dting Delegates or their alternates representing at least a majority of the total.number of Voting Delegates and adeast a majority of the total votes in the Association shall constitute a quorum at all Association meetings.

2.10. Conduct of Meetings.

The President or a Board-approved designee shall preside over all Association meetings. The Secretary shall ensure that minutes of the meetings are prepared, reflecting all resoludons adopted and all other transactions occurring at such meetings. The minutes shall be kept with the Association's books at1d re- cords.

2.11. Action Without a Meeting.

(a) Any action which the Charter, the Articles, or applicable law requires to be taken at a meeting of the Members or Voting Delegates may be taken without a meeting, without prior notice and without a vote, if all Members or Voting Delegates entitled to vote on such matter sign a written consent specifically authorizing the proposed action. Such consents shall be signed within 180 days after receipt of the earliest dated consent, dated, and delivered to the Association. Such consents shall be filed with the Association's minutes and shall have the same force and effect as· a vote of the Members or Voting Delegates at a meet- ing.

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BK o 8 8 4 PG 0 1 6 8 BK:905 PG:123

(b) Alternatively, any action that may be taken at a meeting of the Members or Voting Delegates may be taken without a meeting if (i)· the Association mails or delivers a written ballot or consent form to every Person entitled to vote on the action, setting forth the proposed action and providing an opportunity to approve or disapprove the proposed action; and (ii) the number of votes cast by written ballot equals or exceeds the quorum required for a meeting to consider such action; and (iii) the number of votes cast in favor of the proposed action equals or exceeds the number of votes that would be required at a meeting if the total number of votes cast were the same as the number of votes cast by written ballot. Solicitations by written ballot must indicat~ the number of responses needed to satisfy the quorum ·requirement, the per- centage of votes necessary to approve any action other than election of directors, and the deadline for re- ceiving the ballot in order to be counted. A written ballot may not be revoked, The Board shall notify the Men1bers of the results of the vote within 30 days after the expiration of the voting period.

Article 3 Board of Directors: Selection, Meetings, Powers

A. Composition and Selection.

3.1. Governing Body; Qualifications.

The Board shall govern the Association's affairs. Each director shall have one vote. Except with re- spect to directors appointed by the Founder Member, directors shall be Owners or residents. However, no Owner and resident representing the same Unit may serve on the Board at l.~1e same time. A "resident"

shall be any natural person 18 years of age or older whose principal residence is a Unit withinthe Commu- nity.

If an Owner is not an individual, any officer, director, partner, or any trust officer of such Owner shall be eligible to serve as a director unless a written notice to the Association signed by the Owner specifies otherwise. However, no Owner may have more than one such representative on the Board at a tim~, ex- cept in the case of directors that the F~tmder Member appoilits.

3.2. Number of Directors.

The Board shall consist of three to seven directors, as provided in Section 3 .3.

3.3. Selection of Directors; Term of Office.

(a) hiitial Board The initial Board shall consist of the three directors identified in the Articles of Incorporation, who shall serve until their successors are appoil:ited or elected as provided in this Section.

(b) Directors During Founder Control Period Except as otherwise provided in this subsection (b), the Founder Member may appoint, remove, and replace Board members until termination of the Founder Control Period. During such period, the Voting Delegates shall be entitled to elect a minority of the total number of directors according to the following schedule (directors elected by the Voting Delegates are re- ferred to as "Owner Directors"):

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(i) Within 60 days after the time that Owners other than the Founder, Founder Affiliates, or Builders own 25% of the maximum number of Units permitted by the Charter or whenever the Founder earller determines, the President shall call for an election by which the Voting Delegates, as a group, shall be entitled to elect one of the three directors. The remaining directors shall be appointees of the Founder.

The Owner Director shall be elected for a term of two years or until the happening of the event describ~d in subsection (b)(ii) below, whichever is shorter. If such director's term expires prior to the happening of the event described in subsection (b)(ii), a successor shall be elected for a like term.

(ii) Within 60 days after the time that Owners other than the Founder, Founder Affiliates, or Builders own 50% of the maximum number of Units permitted by the Charter or whenever the Founder earl_i~r_ det~rmines, the Board shall be increased to five directors and the President shall call for an election by which the Voting Delegates, as a group, shall be entitled to elect two of the five directors. The Founder shall appoint the remaining three directors. The Owner Directors shall be elected for a term of two years or until the happening of the event described in subsection (c) below, whichever is shorter. If such direc- tors' terms expire prior to the happening of the event described in subsection (c) below, successors shall be -elected for a like term.

(c) Directors After the Founder Control Period. Not later than termination of the Founder Control Period, the Board shall be increased to seven directors. The President shall call for an election by which the Voting Delegates shall be entitled to elect all seven directors. Three directors shall be elected to serve .

until the second anniial meeting following their election and four directors shall be elected to serve until the third annual meeting following their election, as such directors determine among themselves.

Thereafter, upon expiration of the term of office of each Owner Director, the Voting Delegates shall be entitled to elect a successor to serve a term of two years. Owner Directors shall hold office until their re- spective successors have been elected. Directors may serve any number of consecutive terms.

The diagram below illustrates the concept of transition of control of the Board during and after the ' Founder Control Period.

TRANSITION OF CONTROL OF BOARD OF DIRECTORS

25% of Total 50% of Total Termination of Initial Units Units Founder Control Board Conveyed Conveyed Period Founder Owner Owner Owner Founder Founder Owner Owner Founder Founder Founder Owner Founder Owner Founder Owner Owner Owner 3.4. Nomination and Election Procedures.

(a) Nomination of Candidates. At least 30 days prior to any election of directors by the Voting Dele- gates, the Board shall appoint a Nominating Committee consisting of a chairman, who shall be a Board member, and three or more Owners or representatives of Owners. The Nominating Committee shall serve

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BK O 8 8 lf PG 0 l 10 BK:905 PG:125 until the close of the election for which they were appointed. The names of the Nominating Committee members shall be announced in the notice of each ·election.

In preparation· for each election, the Nominating Committee shall meet and make as many nomit1a ..

tions for election to the Board as it shall in its discretion determine, but in no event less than the number of positions to be filled by the Voting Delegates at such election. In making its nominations, th~ Nominat ..

ing Committee shall use reasonable efforts to nominate candidates representing the diversity that exists within the pool of potential candidates. Nominations shall also be permitted from the floor at the meeting at which any election is held. All candidates shall have a reasonable opportunity to communicate their qualifications to the Voting Delegates and to solicit votes.

(b) Election Procedures. At each election, voting shall be by written ballot. Each Voting Delegate may cast all votes assigned to the Units it represents for each position to be filled by an Owner Director .

. In the event of a tie vote, the Voting Delegates shall be informed of the tie vote and given the oppor ..

nmity to discuss the candidates among themselves in an effort to resolve the tie before another vote is taken. If the second vote again results in a tie, then the Board shall call for election of the director(s) by the Members. Such election shall be held by mail, with ballots to be sent by first class mail to each Member entitled to vote within 10 days after the meeting at which the original election was held.

3.5. Removal of Directors and Vacancies.

Any Owner Director may be removed, with or without cause, by the vote of Voting Delegates holding a majority of the votes entitled to be cast for the election of such director. Any director whose removal ·is sought shall be given notice prior to any meeting called for that purpose. Upon removal of a director by the Voting Delegates, the Voting Delegates shall elect a successor for the .remainder of the term of such director.

At any meeting at which a quorum is present, a majority of the directors may remove any Owner Direc ..

tor who has three consecutive unexcused absences from Board meetings. The Board may appoint a succes ..

sor to fill the vacancy for the remainder of the term.

In the event of the death, disability, or resignation of an Owner Director, the Board may declare a va ..

cancy and appoint a successor to fill the vacancy until the next annual meeting, at which time the Voting Delegates shall elect a successor for the remainder of the term.

This Section shall not apply to directors that the Founder appoints. The Founder may appoint a sue ..

cessor to fill any vacancy on the Board resulting from the death, disability, or resignation of a director ap ..

pointed by the Founder.

B. Meeting$.

3.6. Organizational Meetings.

The Board shall hold an organizational meeting within 10 days following each annual meeting of the membership, at such time and place as the Board shall fix.

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3. 7. Regular Meetings.

The Board shall hold regular rrieetings at such time and place as a majority of the directors shall deter ..

mine, but the Board shall meet at least four times during each fiscal year with at least one meeting per quarter.

3.8. Special Meetings.

The President, Vice President, or any two directors may call a special meeting of the Board.

3.9._ Notice; Waiver of Notic(!.

Notices of Board meetings shall specify the time and place of the meeting and, in the case of a special meeting, the nature of any special business to be considered. The Board shall notify each director of meet ..

ings by: (i) personal delivery; (ii) first class mail, postage prepaid; (iii) telephone communication, either di- rectly to the director or to a person at the director's office or home who would reasonably be expected to communicate such notice promptly to the director; or (iv) facsimile, electronic mail, or other electronic communication device, with confirmation of transmission. All such notices shall be given at or sent to the director's telephone number, fax number, electronic mail address, or sent to the director's address as shown on the Association's records. The Board shall deposit notices sent by first class. mail into a United States mailbox at least five business days before the day of tl"ie meeting. The Board shall give notices by personal delivery, telephone, or electronic communication at least 72 hours before the time set for the meeting.

To the extent practicable, the Board shall give reasonable notice to the Members. of the date, time, and place of Board 111e~tings by announcing such information at a previous Board or membership meeting or posting notice in a location reasonably accessible to the Members and which the Board has designated for the posting of notices.

Transactions of any B·oard meeting, however called and noticed or wherever held, shall be as valid as though taken at a meeting duly held after regular call and notice if (i) a quorum is present, _and (ii) either before or after the meeting each director not present signs a written waiver of notice; a consent to holding the meeting, or an approval of the minutes. The waiver of notice or consent need not specify the purpose of the meeting. Notice of a meeting also shall be deemed given to any director who attends the meeting without protesting before or at its commencement about the lackof adequate notice.

3.10. Telephonic Participation in Meetings.

Members of the Board or any committee the Board designates may participate in a Board or committee meeting by conference telephone or similar communications equipment through which all persons partici- pating in the meeting can hear each other. Participation in a meeting pursuant to this section shall consti- tute presence at such meeting.

3 .11. · Quorum of Board.

At all Board meetings, a majority of the directors shall constitute a quorum for the transaction of busi ..

ness, and. the votes of a majority of the directors present at a meeting at which a quorum is present shall constitute the Board's decision, unless Georgia law, these By .. Laws, or the Charter specifically provide oth- erwise. A meeting at which a quorum is initially present may continue to transact business, notwithstand ..

ing the departure of directors, if at least a majority of the required quorum for that meeting approves any

Page 12

action taken. If the Board cannot hold a meeting because a quorum is not present, a majority of the direc ..

tors present may adjourn the meeting to a time not less than 5 nor more than 30 days from the date of the original meeting. At the reconvened meetiri.g, if a quorum is present the Board may transact, without fur ..

ther notice, any business it might have transacted at the original meeting.

3.12. Conduct of Meetings.

The President or any designee the Board approves by resolution shall preside o':'er all Board meetings.

The Secretary shall ensure that minutes of the meetings are kept and that all resolutions and all transac ..

tioris occurring at such meetings are included in the Association's records.

3.13. Open Meetings; Executive Session.

(a) Subject to the provisions of subsection 3.13(b) and Section 3.14, all Board meetings shall be open to attendance by all Members or their representatives, but only directors may participate in any discussion or deliberation unless a director requests that attendees be granted p~rmission to speak. In such case, the President may limit the time any such individual may speak. The Board shall make agendas for its meet ..

ings reasonably available for examination by all Members or their representatives prior to the meeting.

(b) Notwithstanding the above, the President may adjourn any .Board meeting and reconvene in ex- ecutive session, and may restrict attendance to directors and such other persons as the Board may specifi ..

cally invite and announce during the open portion of the Board meeting, to discuss matters of a sensitive nature, such as pending or threatened litigation, personnel matters, and such other matters as the Georgia Nonprofit Corporation Act may specifically authorize.

3.14. Action Without a Formal Meeting.

Any action to be taken or which may be taken at a Board meeting may be taken without a meeting if a written consent setting forth the action so taken is signed by the number of directors that would be re ..

quired fo approve the same action at a Board meeting at which all of the directors were present. Such con ..

sent shall have the same force and effect as a vote at a meeting. The Board shall promptly notify all direc ..

tors of any action so approved and the effective date of such action and provide each director with a copy of the signed written consent.

C. Powers and Duties.

3.15. Powers.

The Board shall have the power to administer the Association's affairs, perform the Association's re ..

sponsibilities, and exercise the Association's rights as set forth in the Governing Documents and as pro- vided by law. The Board may do, or cause to be done on the Association's behalf, all acts and things except those which the Governing Documents or Georgia law require to be done and exercised exclusively by the Owners, Voting Delegates or the membership generally.

3.16. Duties.

The Board's duties shall include, without limitation:

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..

- (a) preparing and adopting, i11 accordance with the Charter, an annual budget establishing each Owner's share of the Common Expenses and any Service Area Expenses;

(b) levying and collecting assessments from the Owners;

(c) providing for the operation, care, upkeep, and maintenance of the Area of Common Responsibil- ity consistent with the Commtinity-Wide Standard;

(d) designating, hiring, and dismissing personnel necessary to carry out the Association's rights and responsibilities and, where appropriate, providing for compensation of such personnel and for the pur- chase _of equipment, supplies, and materials to be used by such personn~l in the performance of their du- ties;

(e) opening bank accounts on the Association's behalf and designating the signatories required;

(t) depositing all funds received on the Association's behalf in a bank depository which it shall ap- prove and using such funds to operate the Association; however, in the Board's business judgment any re- serve funds may be deposited in depositories other than banks;

(g) making or contracting for the making of repairs, additions, and improvements to or alterations of the Common Area in accordance with the Governing Documents;

(h) enforcing by legal means the provisions of the Governing· Documents and bringing any proceed- ings which may be instituted on behalf of ~r against the Owners concerning the Association; however, the Association's obligation in this regard shall be conditioned in the manner provided in the Charter;

(i) obtaining and carrying property and liabilicy insurance and fidelity bonds, as provided in the Char- ter, paying the cost thereof, and filing and adju.sting claims, as appropriate;

(j) payili.g the cost of all services rendered to the Association;

(k) keeping a detailed accounting of the Association's receipts and expenditures;

(1) making available to any prospective purchaser of a Unit, any Owner, and the holders, insurers, and guarantors of any Mortgage on any Unit, current copies of the Governing Documents and all other books, records, and financial statements of the Association as provided in Section 10.4; and

(m) indemnifying a director, officer or committee member, or former director, officer or committee member of the Association to the extent such indemnity is required by Georg•a law, the Articles and these By-Laws.

3.17. Conflicts of Interest.

Unless otherwise approved by a majority of the other directors, no Owner Director may transact busi- ness with the Ass·ociation or any Association contractor during his or her term as director or within two years after the term expires. A director shall promptly disclose to the Board any actual or potential conflict of interest affecting the director relative to his or her performance as a director.

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BK O 8 8 l+ PG 0 114 BK:905 PG:129 Notwithstanding the above, directors appointed by the Founder may be employed by or otherwise transact business with the Founder or its affiliate, and the Founder may transact business with the Associa.:.

tion or its contractors.

Article 4 Transition from Founder to Owner Control 4.1. Transition Process.

Tra!1s_ition is a process by which control of_tge Board gradually ~hifts from the Founder to the Qwners, as described in Section 3.3. The process concludes upon termination of the Founder Control Period, when the Voting Delegates will elect the entire Board. At that time,· the Owners, through their newly- elected Board, will take responsibility for fulfilling the Association's responsibilities and exercising the As- sociation's authority under the Governing Documents without the direct guidance or involvement of the Founder or Founder-appointed directors.

4.2. Education and Communication.

In anticipation of termination of the Founder Control Period, the Founder Member shall communi- cate with the Owners regarding the transition process, the anticipated timeline for transition, what t~ ex- pect durjng and after the transition, and opportunities for Owner participation. Such communication shall be in writing at1d through one or more "town hall" meetings at which Owners have the opportunity to ask and obtain answers to q~1estions in order t~ gain a better understanding of the transition process.

4.3. Transition Committee.

(a) Appoi11t111ent; Purpose. At least six months prior to termination of the Founder C011trol Period, the Founder Member shall establish a Transition Committee comprised of 5 to 7 members, all of whom shall be Owners. The purpose of the Transition Committee shall be (i) to involve the Owners in facilitat- ing a smooth transition of control of the Board from directors appointed by the Founder Member to direc- tors elected by the Voting Delegates, and (ii) to help prepare the Board and the Owners to assume respon- sibility for carrying on Association operations once the Founder and its ·representatives are no longer di- rectly involved.

(b) Organizational Meeting. The Founder shall call for a meeting of the Transition Committee within 30 days after its appointment. At such meeting, the Founder shall explain the transition process, advise the Transition Committee of its responsibilities, and facilitate the election of a chairperson from among the members of the Transition Committee. The Transition Committee shall establish a meeting schedule and a schedule for completing necessary tasks prior to the termination of the Founder Control Period. It may appoint such subcommittees as it deems appropriate to assist it in performing its responsi- bilities. Each subcommittee shall be chaired by a member of the Transition Committee and shall consist of at least two Owners.

(c) Responsibilities. The Transition Committee, with the assist~nce of such subcommittees as it may appoint pursuant to subsection (b), shall conduct a review and analysis of Association properties, facilities, records, and operations to familiarize itself with the history and status of such matters and make recom- mendations as to matters requiring future action. It shall prepare a report setting forth its findings and recommendations for distribution to the Owners and presentation to the newly-elected Board upon termi-

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/ BK O 8 8 l~ PG 0 l 1 5 BK:9Q5 PG:::130 nation of the Founder Control Period. The Board will use such report to assist in understanding the scope of its responsibilities and as a planning tool. Specific areas to be addressed in the report shall include:

(i) the condition of Association property and facilities, identifying any immediate mainte- nance, repairs, or improvements needed and suggesting a proposed schedule for short and long-term main- tenance, repairs, and replacements;

(ii) the financial condition of the Association, including the status. of any outstanding ac- counts receivable and actions being taken to collect them, the adequacy of the Association's budgets and sufficiency of reserves, and the status of the Association's tax filings, tax liability, if any, and tax reporting responsibilities;

(iii) the nature and extent of insurance policies which the Association is required to maintain, the adequacy of current coverage and limits, renewal dates for all insurance policies, and the status of any pending insurance claims; and (iv) the status of Association records and legal matters, identifying all existing contracts, per- mits, licenses, and warranties, if any, noting their expiration dates and making any recommendations as to their renewal; reporting on the status of ownership of all Common Areas; reporting on the status of any pending lawsuits; and making recommendations as to any proposed changes or amendments to the Gov- erning Documents that the Transition Committee feels are appropriate or advisable.

(d) Communication: The Transition Committee shall report to the Board at least monthly on the status of its work.

(e) Board Action. Upon termination of the Founder Control Period and election of a new Board pursuant to Section 3.3(c), the Board shall review the Transition Committee's report and meet with the Transition Committee to discuss the Committee's findings and recommendations. It shall then use the Transition Committee's report as a planning tool in carrying out its responsibilities under the Governing Documents.

4.4. Professional Assistance.

The Board may, as a Common Expense, retain industry professionals, including association man- agers, attorneys, engineers, and accountants, as it deems necessary or appropriate to assist the Board in prepa~ing for transition and to assist the Transition Committee in conducting its review.

Article 5 Officers 5.1. Officers.

The Association's officers shall be a President, Secretary, and Treasurer. The President and Secretary shall be elected from among the Board members; other officers may, but need not, be Board members.

The Board may appoint such other officers, including one or more Vice-Presidents, Assistant Secretaries and Assistant Treasurers, as it shall deem desirable, such officers to have such authority and perform such duties as the Board prescribes. Any two or more offices may be held by the same person, except the offices of President and Secretary.

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5.2. Election and Term of Office.

The Board shall elect the Association's officers at the first Board meeting following ea.ch annual meet- ing of the membership~ to serve until their successors are elected.

5.3. Removal and Vacancies.

The Board may remove any officer whenever in its judgment the Association's best interests will be seived, and may fill any vacancy in any office arising because of death, resignation, removal, or otherwise, for the unexpired portion of the term.

5.4. Powers and Duties.

·The Association's officers shall have such powers and duties as generally pertain to their respective of- fices, as well as such powers and duties as the Board may specifically confer or impose. The President shall be the Association's chief executive officer. The Treasurer shall have primary responsibility for prepar.ing the Association's budgets as provided for in the Charter, and may delegate all or part of the preparation and notification duties to a finance committee, management agent, or both.

5.5. Resignation.

Any officer may resign at any time by giving written notice to the Board, the President, or the Secre- tary. Such resignation shall take effect on the date of the receipt of such notice or at a later time specified therein. Unless the resignation specifies, acceptance of such resignation shall not be necessary to make it effective.

Article 6 Committees 6.1. General.

In addition to the Transition Committee appointed pursuant to Article 4 and such committees as the Founder or Board may appoint pursuant to the Charter, the Board may appoint such other committees as it deems appropriate to perform such tasks and to serve for such periods as the Board may designate by resolution. Each committee shall operate in accordance with the terms of such resolution.

6.2. Covenants Committee.

In addition to any other committees that the Board may establish pursuant to Section 6.1, the Board may appoint a Covenants Committee consisting of at least three and ·no more than seven Owners. Acting in accordance with the provisions of the Charter, these By-Laws, and resolutions the Board may adopt, the Covenants Committee, if established, shall be the hearing tribunal of the Association and shall conduct all hearings held pursuant to Article 9 of these By-Laws. The Covenants Committee shall have no responsibil- ity for seeking out violations of the Governing Documents.

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6.3. Service Area Committees.

The Owners within any Service Area which has no formal organizational structure or association may elect a Service Area Committee to determine the nature and extent of setvices, if any, which it desires to have the Association provide to the Service Area, over and above those setvices which the Association pro- vides to all Units in the Service Area Committee, if elected, shall consist of three Owners of Units in the Service Area; however, if approved by the vote of at least 51 % of the Owners of Units within the Service Area, the number may be increased to five.

Elections of Service Area Committees may. be held by written ballot sent to all Owners of Units within ~he Seryi~e Area, or at a meeting of the Owners qf Vt1its :within the Service _Area, as the Board determines.

The Board or any Owner of a Unit in the Ser\lice Area may nominate candidates for election to the Service Area Committee. That number of candidates equal to the number of positions to be filled receiving the n1ost votes shall be elected. Service Area Committee members shall be elected for a term of one year or until their successors are elected. Any director elected to the Board from a Service Area shall be an ex offi· cio member of the Service Area Committee. The members of the committee shall elect a chairperson from c~mong themselves, who shall preside at_ its meetings and shall be responsible for transmitting any and all communications to the Board.

In the conduct of its duties and responsibilities, each Service Area Committee shall abide by the notice and quorum requirements applicable to the Board under Sections 3.9, 3.10, and 3.11. Meetings of a Ser- vice Area Committee shall be open to all Owners of Units in the Service Area and their representatives.

Members of a Service Area Committee may act by unanimous written consent in lieu of a meeting.

Article .7 Standards of Conduct; Liability, and Indemnification 7 .1. Standards for Directors and Officers.

The Board shall exercise its powers in a reasonable, fair, nondiscriminatory manner and shall adhere to the procedures established in the Governing Documents.

In performing their duties, directors and officers shall be insulated from liability as provided for direc- tors of corporations under Georgia law and ·as otherwise provided by the Governing Documents. Directors nnd officers shall discharge their duties as directors or officers, and as members of any committee to which they are appointed, in a manner that the director or officer believes in good faith to be in the best interest of the corporation and with the care that an ordinarily prudent person in a like position would exercise under similar circumstances. A director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, prepared or presented by others to the extent au- thorized under Georgia law.

7.2. Liability.

(a) A director or officer shall not be personally lia~le to the Association, any Member, or any other Person for any action taken or not taken as a director or officer if he or she has acted in accordance with Section 7 .1. Owner Directors shall not be liable for actions taken or omissions made in the performance of their duties except for wanton or willful acts or omissfons.

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BK 0 8 8 l~ PG 0 I 7 8 BK::905 PG:133

(b) Pursuant to the business judgment rule, a director also shall not be personally liable for any action taken or not taken as a director if the director:

(i) actions are not uitra vires;

acts within the expressed or implied scope of the Governing Documents and his or her (ii) affirmatively undertakes to make decisions which the director reasonably believes are nee ..

essary for the ·Association's continued and successful operation and, when decisions are made, makes them on an informed basis;

(iii) acts on a disinterested basis, promptly. disclosing any real or potential conflict of interests .· (pecuniary or other), and avoiding participation in decisions and actions on matters as to which he has a conflict of interest (beyond that which all directors have by virtue of their ownership or occupancy of a Unit); and (iv) acts in a non .. fraudulent manner and without reckless indifference to the Association's af ..

fairs.

(c) The Association's officers, directors, and committee members shall not be liable for any mistake of judgment, n-egligent or otheiwise, except for their own individual willful misfeasance, malfeasance, miscon ..

duct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other c0111mitment made or action taken in good faith on the Association's behalf (except to the extent that such officers or directors may also be Members).

7 .3. Indemnification.

Subject to the limitations of Qeorgia law, the Association shall indemnify every officer, director, and committee member against all damages and expenses, including counsel fees and expenses, reasonably in ..

curred in connection with any action, suit, or other proceeding (including settlement of any suit or pro.- ceeding, if approved by the then Board) to which he or she may be a party hy reason of being or having been an officer, director, or committee member, except that the Association shall have no obligation .to indemnify any individual against liability or expei1ses incurred in connection with a proceeding:

(a) brought by or in the right of the Association, although it may reimburse the individual for reason ..

able expenses incurred in connection with the proceeding if it is_ determined, by the court or in the manner provided above, that the individual met the relevant standard of conduct under Georgia law; or

(b) to the extent that the individual is adjudged liable for conduct that constitutes:

(i) appropriation, in violation of his or her duties, of any business opportunity of the Associa ..

tion; or (ii) (iii) (iv) intentional misconduct or knowing violation of the law; or an unlawful distribution to members, directors or officers; or receipt of an improper personal benefit.

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BK o 8 8 l~ PG 0 \ 1 9 BK:905 PG:134 This right to indemnification shall not be exclusive of any other rights to which any present or former offi ..

cer, director, or committee member may be entitled. The Association shall, as a Common Expense, main- tain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such insurance is reasonably .available.

7.4. Advancement of Expenses.

In accordance with the procedures and subject to the conditions and limitations set forth in Georgia law, the Board may authorize the Association to advance funds to pay for or reimb1.1rse the reasonable ex- penses incurred by a present or former officer, director or committee member in any proceeding to which he_ or _sl~e may be a party by reason of being or having_ been an officer, director, or committee member of the Association.

7 .5. Board and Officer Training • . The Board may conduct or provide for seminars and continuing educational opportunities designed to educate and inform its officers and directors of their responsibilities as officers and directors. Such pro- grams may include instruction on applicable Georgia corporate and fiduciary law principles, other issues relating to ndministering community affairs, and upholding and enforcing the Governing Documents. The Board may retain industry professionals, which may include. property managers, attorneys, and accountants, as appropriate or necessary for such purpose. Each newly elected officer and director shall be encouraged to complete a training seminar within the first six months of assuming such position. The seminar may be live, video or audiotape, or in other format. The cost of such seminar shall be a Common Expense.

The Board may also provide, or provide for, Owner and resident education designed to foster a better understanding of the Association's governance and operations, and leadership training classes designed to educate Voting Delegates and Owners as to the nomination, election, and voting' processes and the duties and responsibilities of directors and officers.

The Board may apply for and maintain, as a Common Expense, membership for the Association, its officers and directors, in the Community Associations Institute or any similar nonprofit organization that provides educational opportunities for community association directors, officers and managers in operation «md management of community associations.

Article 8 Management and Accounting 8.1. Compensation of Directors and Officers.

The. Association shall not compensate directors and officers for acting as such u.nless Voting Delegates representing a majority of the total votes in the Association approve such compensation at an Association meeting. The Association may reimburse any director or officer for expenses he or she incurs on the Asso- ciation's behalf upon approval of a majority of the other directors. Nothing herein shall prohibit the Asso- ciation from compensating a director or .officer, or any entity with which a director or officer is affiliated, for services or supplies he or she furnishes to the Association in a capacity other than as a director or offi ..

cer ptirsuant to a contract or agreement with the Association. However, such director must make known his or her interest to the Board prior to entering into such contract, and a majority of the Board, excluding any interested director, must approve such contract.

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BK O 8 8 Lt PG 0 1 8 0 BK:905 PG:135 8.2. Right of Founder Member to Disapprove Actions.

So long as there is a Founder Membership, the Founder Member shall have a right to disapprove any action, policy, or program of the Association, the Board and any committee which, in the Founder Mem· ber's sole judgment, would tend to impair rights of the Founder or Builders under the Charter or these By ..

Laws, interfere with development or construction of any portion of the Community, or diminish the level of seivices the Association provides. The Board shall not implement any action, policy, or program subject to the right of disapproval set forth herein until and unless the requirements of this Section have been met.

(a) Notice. The Association shall give the Founder Member written notice of all meetings of the membership, the Board, and committees, and any actions proposed to be taken by any of them by written .consen-t in lieu of a meeting. The Association shall give such notice by certified mail, return receipt ·re ..

quested, or by personal delivery at the address the Founder Member has registered with the Association.

Such .notice shall comply, as to Board meetings, with Section 3.9, and shall, except in the case of regular Board meetings pursuant to these By .. Laws, set forth with reasonable particularity the agenda to be followed at such meeting. r .

(b) Opportllnity to he Heard At any such meeting, the Association shall give the Founder Member the opportunity to join in or to have its representatives or agents join in discussion from the floor of any prospective action, policy, or program which would be subject. to the right of disapproval set forth herein.

The· Founder Member, its representatives, or its agents shall make its concerns, thoughts, and suggestions known to the Board and/ or the members of the subject committee.

The Founder Member, acting through any officer or director, agent, or authorized representative, may exer~ise its right to disapprove at any time within 10 days following the meeting at which such action was proposed or, in the case of any action taken by written consent in lieu of a meeting, at any time within 10 days following receipt of written notice of the proposed action.

The Founder Member may use this right to disapprove to block proposed actions but shall not use it to require any action or counteraction of any committee, the Board, or the Association. The Founder Mem- ber shall not use its right to disapprove to reduce the level of setvices the Association is obligated to provide or to preveht capital repairs or any expenditure required to comply with applicable laws and regulations.

8.3. Managing Agent.

The Board may employ for the Association professional management agents at such compensation as the Board may establish, to perform such duties and setvices as the Board shall authorize. The Board may delegate such powers as are necessary to perform the manager's assigned duties but shall not delegate policy- making authority or ultimate responsibility for those duties set forth in Section 3.16. The Board may em- ploy the Founder or its affiliate as managing agent or manager.

The Board may delegate to one of its members the authority to act on its behalf ·on all matters relating to the duties of the managing agent or manager which i:riight arise between Board meetings. · The Association shall not be bound, either directly or indirectly, by any management contract executed during the Founder Control Period unless such contract contains a right of termination which may be ex- ercised by the Association, with or without cause and without penalty, at any time after termination of the Founder Control Period upon not more than 90 days' written notice.

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BK O 8 8 tt PG 0 1 8 I BK:905 PG:136 The managing agent shall not accept remuneration from vendors, independent contractors, or others providing goods or services to the Association, whether in the form of commissions, finder's fees, service fees, prizes, gifts, or otherwise; any thing of value received ~hall benefit the Association. The managing agent shall promptly disclose to the Board any financial or other interest which. it may have in any firm providing goods or services to the Association.

8.4. Accounts and Reports.

(a) The Board shall follow the following accounting standards u11less the Board by resolution specifi ..

c:-1lly determines otherwise:

(i)_· accounting and coi1trols should-co11forin to generally accepted accounting principles; and (ii) the Association's cash accounts shall not be commingled with any other accounts.

(b) Commencing at the end of the quarter in which the first Unit is sold and closed, financial reports .shall· be prepared for the Association at least quarterly containing:

(i) an income statement reflecting all income and expense activity for the preceding period;

(ii) a statement reflecting all cash receipts and disbursements for the preceding period;

(iii) budget format;

a variance report reflecting the status of all accounts in an "actual" versus "approved"

(iv) a balance sheet as of the last day of the preceding period; and

(v) a delinquency report listing all Owners .who are delinquent in paying any assessments at the time of the report (any assessment or installment thereof shall be considered to be delinquent on the 15th day following the due date unless the Board specifies otherwise by resolution).

(c) An annual report consisting of at least the following shall be made available for Members' review within 180 days after the close of the fiscal year: (i) a balance sheet; (ii) an operating (income) statement;

and (iii) a statement of changes in financial position for the fiscal year. Such annual report shall be pre ..

pared on an audited, reviewed, or compiled basis, as the Board determines.

8.5. Borrowing.

The Association shall have the power to borrow money for any legal purpose. However, the Board shall obtain Voting Delegate approval in the same manner provided in the Charter for Special Assessments if the proposed borrowing is for the purpose of making discretionary capital irn.provements or for acquiring additional property or amenities to be added to the Common Area or the Area of Common Responsibility and the total amoi.mt of such borrowing, together with all other debt incurred within the previous 12 ..

month period, exceeds or would exceed 20% of the Association's budgeted gross expenses for that fiscal year.

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BK O 8 8 4 PG 0 \ 8 2

BK: '305 PG: 137

8.6. Right to Contract.

The Association shall have the right to contract with any Person for the performance of various duties and functions. This right shall include, without limitation, the right to enter into common management, operational, or other agreements with trusts, condominiums, cooperatives, or Neighborhood and other owners or residents associations, within and outside the Community. The Board shall consent to any common management agreement.

8. 7. Agreements, Contracts, Deeds, Leases, Checks, Etc.

' All Association agreements, ccmtracts, cieed~, l~a~es, che_cks, and other instruments shaUbe executed by at least two officers or by ~uch other person or persons as the Board may designate by resolution.

Article 9 Enforcement Procedures The Association shall have the power, as provided in the Charter, to impose sanctions for any violation of the Governing Documents. To the extent specifically required by the Charter, the Board shall comply with the following procedures prior to imposition of sanctions:

9.1. Notice and Response.

The Board or its delegate shall setve the alleged violator with written notice describing (a) the nature of the alleged violation and (b) the proposed sanction to be imposed. The notice shall include a statement that the alleged violator has 10 days from the date of such i10tke to present a written request for a hearing to the Board or the Covenants Committee, if one has been appointed pursuant to Article V, or the pro- posed sanction may be imposed.

The alleged violator shall respond to the notice of the alleged violation in writit'1g within such 10 .. day period, regardless of whether the alleged violator is challenging the imposition of the proposed sanction, or the proposed sanction shall be imposed. If the alleged violator cures the alleged violation and notifies the Board in writing wfthin such 10-day period the Board may, but shall not be obligated to, .waive the sanc.- tion. Such waiver shall not constitute a waiver of the right to sanction future violations of the same or other provisions and rules by any Person.

Prior to the effectiveness of sanctions imposed pursuant to this Article, proof of proper notice shall be placed in the minutes of the Board or Covenants Committee, as applicable. Such proof shall be deemed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the officer, director, or agent who delivered such notice. The notice requirement shall be deemed satisfied if the alleged violator or its representative requests and appears at the hearing.

9.2. Hearing.

If a hearing is requested within the allotted 10..day period, the hearing shall be held before the Cove ..

rnmts Committee, or if one has not been appointed, then before the Board in executive session. The al- leged violator shall be afforded a reasonable opportunity to be heard. The minutes of the meetings of the Board or Covenants Committee, as at;>plicable, shall contain a written statement of the results of the hear-

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BK 0 8 8 lt PG 0 \ 8 3 BK:905 PG:138 ing (i.e., the Board's or Committee's decision) and the sanction, if any, to be imposed. Written notice of the decision shall be mailed to the violator within three days after the hearing.

9 .3. Appeal.

Following a hearing before the Cdvenants Committee, the violator shall have the right to appeal the decision to the Board. To exercise this right, the violator must deliver a written notice of appeal to the As- sociation's manager, President, or Secretary within 10 days after the hearing date.

Article 10 Miscellaneous 10.1. Fiscal Year.

The Association's fiscal year shall be the calendar year unless the Board establishes a different fiscai year by resolution.

10.2. Parliamentary Rules.

Except as may be modified by Board resolution, Robert's Rules of Order (current edition) shall govern the conduct of Association proceedings when not in conflict with Georgia law or the Governing Documents.

10.3. Conflicts.

If there are conflicts among the provisions of Georgia law, the Articles of Incorporation, the Charter, .

and these By-Laws, the provisions of Georgia law, the Charter, the Articles of Incorporation, and the By- laws (in that order) shall prevail.

10.4. Books and Records.

(a) Turnover of Books a11d Records. Within 60 days after termination of the Founder Control Pe- riod; the Fqunder shall deliver to the Association all property, books and records of the Association in the Founder's possession.

(b) lmpectio11 by Members aJJd Mortgagees. The Board shall make available for inspection and copy- ing by any holder, insurer or guarantor of a first Mortgage on a Unit, any Member, or the duly appointed representative of any of the foregoing at any reasonable time and for a purpose reasonably related to his or her interest in a Unit: the Governing Documents, the membership register, books of account, and the minutes of meetings of the Members, the Board, anc:{ committees. The Board shall provide for such inspec- tion to take place at the Association's office or at such other place within tli~ Community as the Board shall designate.

(c) Rules for l11spection. The Board shall establish rules with respect to:

(i) notice to be given to the custodian of the records; and (ii) hours and days of the week when such an inspecti~n may be made; and

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BK o 8 st~ PG 0 \ 8 4 BK:905 PG::139 '(iii) payment of the cost of reproducing documents requested.

(d) Inspection by Directors. Every director shall have the absolute right at any reasonable tirne to in- spect all Association books, records, and documents and the physical properties owned or controlled by the Association. A director's right of inspection includes the right to make a copy of relevant documents at the Association's expense.

10.5. Notices.

(a) Form of Notice and Method of Delivery. Except as otherwise provided in the Charter or these By-Laws or by Georgia law, all notices, demands, bills, statements, or other communications under the Chaffer or these By-Laws shall be iri writing arid m-ay be delivered iil person, hy lJnited State-s mai_( by pri- vate carrier, or if the intended recipient has given its prior written authorization to use such method of de- livery, by facsimile or electronic mail with written confirmation of transmission.

(b) Delivery Address. Notices shall be delivered or sent to the intended recipient as follows:

(i) if to a Member or Voting Delegate, at the address, telephone facsimile number, or e-mail address which the Member or Voting Delegate has designated in writing and filed with the Secretary or, if no such address has been designated, at the address of the Unit of such Member or Voting Delegate;

(ii) if to the Association, the Board, or a committee of either, at the address, facsimile number, or e-mail address of the principal office of the Association or its managing agent, or at such other address as the Association shall designate by notice in writing to the Members pursuant to this Section; or (iii) if to the Founder, at the Founder's principal address as it appears on the Secretary of State's records, or at such other address as the Founder shall designate by notice in writing to the Associa- tion pursuant to this Section.

(c) Effective Date. Notice sent in accordance with subsections (a) and (b) shall be deemed to have been duly given and_ effective:

(i) if sent by United States mail, when deposited with the U. S. Postal Service, correctly ad- dressed; with first class or higher priority postage prepaid;

(ii) if delivered personally or byprivate carrier, when actually delivered to the address of -the intended recipient, as evidenced by the signature of the person at such address who accepts such delivery;

or (iii) if se-nt by telephone facsimile or electronic mail, upon transmission, as evidenced by a.

printed confirmation of transmission.

10.6. Amendment.

Until termination of the Founder Control Period, the Board of Directors may unilaterally amend these By-Laws (i) to correct clerical, typographical or technical errors; (ii) to bring any provision into compliance comply with any applicable governmental statute, rule, regulation, or judicial determination; (iii) to comply with the requirements, standards or guidelines of any institutional or governmental lender, purchaser, in- surer, or guarantor of mortgage loans, including, for example, the Federal National Mortgage Association

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BK O 8 8 l.~ PG 0 l 8 5 BK:•;.05 PG:140 or Federnl Home Loan Mortgage Corporation; or (iv) to satisfy the reqtiirements of any local, state, or fed ..

eral governmental agency.

Except as provided above, these By-Laws may be amended ·only by the affirmative vote or written con- sent, or any combii1ation thereof, of Voting Delegates representing at least 67% of the total votes in the Association, and the consent of the Founder Member, if such exists. Notwithstanding the above, the per- centage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of af ..

firmative votes required for action to be taken under that clause. Any amendment adopted pursuant to this subsection (b) shall be prepared and signed by the President or Vice President and by the Secretary or Treasurer of the Association certifying that the requisite approval was obtained.

Amendments to these By-Laws shall become effective upon recordation unless a later effective date is specified therein. Any procedural challenge to an amendment must be made within one year of its rec- ordation, or such amendment shall be presumed to have been validly adopted. In no event shall a change of conditions or circumstances operate to amend any provisions of these By-Laws.

No amendment may remove, revoke, or modify any right or privilege of Founder or the Founder Member without the written consent of Founder, the Founder Member, or the assignee of such right or privilege.

5 5 16.0 I /CA Docs/BylawsI 0060.1/jkt-jps

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