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In the event the Premises are damaged by fire or other casualty, but not wholly destroyed
and/or rendered untenable which fire or casualty occurs after Lessee has exercised its option
to purchase as prescribed in this Section, and. this Lease is not terminated as prescnibed mi
Section 4.05, the contract to purchase and sell as prescribed in this Section is voidable at the
election of Lessee or Lessor and void upon the delivery of written notice prior to Closing to
that effect from the one voiding the contract to the other.
(h) . Upon and after Lessee' s "option to purchase becoming a binding contract between Lessee
and Lessor for the purchase and sale of the Units, Lessor' s reservation of the right as
contained m Section 4.02 and paragraphs 1 and 2 in Article X of the Condominium
Declaration, the present form of which is attached as Exhibit D hereto, to combine,
recombine, subdivide and/or reconfigure either or both of the Units, and/or either or both of
the Units and any Common Elements, shall be exercised by Lessor, if at all, only with the
prior written consent of Lessee.
(i) In the event Lessee shall exercise its option to purchase the Units as provided above, the
closing of the purchase and sale of the Units, including the recordation of the special
warranty deed and the payment of the purchase price (the ' 'Closinn, shall occur not later
than five (5) business days immediately following the date of e�cpiration of the term of this
Lease.
Section 6.15 Recordation. Upon the request of either party, the other party will in good faith
cooperate in the prepazation and execution of a recordable Memorandum of Lease.
IN `GVrTNESS WHEREOF, each party has caused this Lease to be executed by its duly authorized
rep mentative(s) effective as of the day and year first above written.
LESSOR
Telesis Construction Management, LLC, a North Carolina
' - liability co .
By: .. (SEAL}
. H IIi, M ger A -
By: (SEAL)
or
Jam W. Parker, Jr. ember anag
VO
[SIGNATURES CONTINUE ON NEXT PAGE]
• - ltr -
tj
• j,fiJA/FiJJ+/ r
Orange County, North Carolina, a body politic and
corporate and a political subdivision of the State of North
Carolina
By, (SEAL. )
Name: Laura E Blackmon '
Title: County Manager
Date; February 262 2007
[SIGNATURES PAGES CONCLUDE]
I29MI%ftI80=90 C L"Y Lease (M.M07 Finan
47-
EXMff A
THE PROPERTY
Being all of Lot , consisting of acres, more or less, as shown on that certain plat of survey
recorded in Plat Book , Page(s) , Orange County Registry, reference to which plat of
survey is hereby .made for a more particular description of such Lot
[TI'he foregoing legal descxiPtion will be 1 .t upon Lessor' s recordation of plat subdividing the hoperty
from other property(ies) owned by Lessor as of the Effective Date.]
48 -
a
BUILDING PLANS AND SPECIFICATIONS
The following plans and specifications pertaining to the Building are incorporated herein by this reference:
1 . Gateway Center Site Plan, Utilities and Erosion Control Plans and Specifications consisting of
- Drawing Nos: 1 - 16 prepared by Summit Consulting *Engineers last revised November 16, 2006
(Project No. 05-032). '
2. Code Data, Elevations, Floor Plans, Roof Plan and other Building Plans, Cross Sections and
Details for The Gateway Center consisting of Sheet Nos. Al — A_ 13 prepared by John C.
Williams, Archite c last revised December 6, 2006 (Job No. 0600).
3 . Foundation, Fmming . and Other Plans for The .Gateway Center consisting of Sheet Nos . Sl -- S6
Prepared by Gardner & McDaniel Consulting Engineers dated October, 2006 (Job No, 06073).
4. Plumbing, Sanitary Waste, Vent and Water Supply Plans, Specifications, Calculations and
Details for The Gateway Center consisting of Shut Nos. P-1 — P-9 prepared by John C.
Williams, Architect, dated November 16, 2006 (Job No. 77-06).
5 . Mechanical. Specifications, Notes, Schedules, Details and Plans for The Gateway Center
consisting of Sheet Nos. M 1 — M-6 prepared by John C. Williams, Architect, dated November
i
16, 2006 (Job No. 77-06).
6. Electrical Specifications and Schedules for The Gateway Center cons
pecifi y Tsang of Sheet Nos. ]r1 —
E=5 prepared by John C. Williams, Architect, dated November 16, 2006 (Job No. 77= 06) .
7. Technical Specifications for Gateway Center prepared by Brockwell Associates, Inc., Architect
f • .
4 9-
EXHIBIT D
CONDOM U41 UM DECLARATION
DRAFT #7: 01/29/07
Prepared By:
Return To : William D. Bernard, Brown & Bunch, PLLC, 101 N. Columbia Street, Chapel Hill; NC
27514 '
PIN:
DECLARATION OF CONDOMINIUM OF GATEWAY CENTER CONDOAIE4IUM
PURSUANT7 TO CHAPTER 47C OF THE GENERAL STATUTES OF NORTH CAROLINA
THIS DECLARATION OF CONDOMINIUM OF GATEWAY, CENTER
CONDOMINIUM {"Declaration") is made this day of 200� by TELESIS
CONSTRUCTION MANAGEMENT, LLC, a North Carolina limited liability company, 1000
Corporate Drive, Suite 109, Hillsborough, North Carolina 27278 ("Declarant' .
WITNES - SETH THAT:
WI MEAS, Declarant is the owner of that certain tract or parcel of land lying and being in
Hillsborough, Orange County, North Carolina, and more particularly described on the attached EXHIBIT
and
WH]CREA►S, Declarant desires and intends to divide the Property (as hereinafter defined),
including the Building (as hereinafter defned) , the Improvements (as hereinafter defined) and any
appurtenances thereto, into commercial use condominium units and common elements in accordance with
the provisions of the Act (as hereinafter defined) and this Declaration not inconsistent with the Act, and to i
self and convey such condominium units subject to the provisions of the Act and this Declaration not
inconsistent with the Act; and
• -21 - -
kk
WHEREAS, Declarant desires and intends, by the filing of this Declaration, to submit the
Property, including the Building, other Improvements and any appurtenances thereto, to the provisions of
the Act and this Declaration not inconsistent with the Act, and
WHEREAS, it is Declarant' s desire and intent that the condominium created pursuant to this
Declaration shall be known and referred to as "Gateway Center Condominium".
NOW, THE EFORE, Declarant does hereby publish and declare that all of the Property shall
_
be hereafter held, conveyed, hypothecated, encumbered, used, occupied and improved subject to the
provisions of the Act and to the provisions of this Declaration not inconsistent with the Act. The
provisions of this Declaration are declared and agreed to be in furtherance of a plan for the improvement
of the Property and the division thereof into commercial condominium units and common elements . The
provisions of 'this Declaration, including any and all covenants, conditions, restrictions and easements,
shall be deemed to run with the Property, including the Units (as hereinafter defined) and the Common
Elements (as hereinafter defined), and shall be a burden and a benefit to Declarant, its successors and
assigns and all other persons who may hereafter purchase or otherwise acquire an interest in the Property,
or any part thereof, including any Unit, and their respective grantees, heirs, executors, administrators,
devisees, successors and assigns.
ARTICLE I -
DEEMITIONS
Section 1 .01 Definitions . As used in this Declaration, the following terms shall have the
meanings ascribed to them:
(a) Act. "Act" shall mean the North Carolina Condominium Act, Chapter 47C of the
General Statutes of North Carolina, and any amendment thereof.
(b) Articles of Incorporation. "Articles of Incorporation" shall mean the Articles. of
Incorporation of the Association in the form attached hereto as EMB1T C as same may be amended
and/or modified from time to time as provided therein.
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c - '
(c) Association. "Association" shall mean Gateway Center Condominium
Association, Inc., - a North Carolina nonprofit corporation, its successors and assigns.
(d) Board of Directors . "Board of Directors" shall mean the duly appointed or
elected Board of Directors of the Association.
(e) Building. "Building" shall mean the building located on the Property containing
the Units.
(f) Bylaws. "Bylaws" shall mean the Bylaws of the Association in the form attached
hereto as EXHIBIT D as same may be amended and/or modified from time to time as provided therein.
(g) Class I Limited Common Elements . "Class I Limited Common Elements" shall
mean any Common Elements allocated by this Declaration or by operation of the Act for the exclusive
use of the Unit located on the first (ground floor) of the Building.
(h) Class II Limited Common Elements . "Class R Limited Common Elements" shall
mean any Common Elements allocated by this Declaration or by operation of the Act for the exclusive
use of the Unit located on the second floor of the Building.
(i) Class III Limited Common Elements . "Class III Limited Common Elements"
shall mean any Common Elements allocated by this Declaration or by operation of the Act for the
exclusive use of the Unit located on the third floor of the Building.
{j) Class IV Limited Common Elements . "Class IV Limited Common Elements"
shall mean any Common Elements allocated by . this Declaration or by operation of the Act for the
exclusive use of the* Units located on the second and third floors of the Building.
(k) Class V Limited Common Elements . "Class V Limited Common Elements"
shall mean any Common Elements allocated by this Declaration or by operation of the Act for the
exclusive use - of any one ( 1 ) or more but fewer than all of the Units, exclusive of the Class I Limited
Common Elements, the Class II Limited Common Elements, the Class III Limited Common Elements
and the Class IV Limited Common Elements. Class V Limited Common Elements shall include any and
all Limited Common Elements * not expressly designated in this Declaration or by operation of the Act as
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Class • I Limited Common Elements, Class H Limited Common Elements, Class III Limited Common
Elements or Class IV Limited Common Elements .
(1) Common Elements. "Common Elements" shall mean all of the Property
exclusive of the Units and shall include, without limitation, the Building (exclusive of the Units) and the
Improvements .
(m) Common Expense. "Common Expense" shall mean any expenditure made by or
any financial liability of the Association, including any allocation to • reserves but excluding any
expenditure made by or any financial liability of the Association which is charged to or assessed against
any Unit or Units by the Association as a Special Assessment. .
(n) Common Expense Liability. "Common Expense Liability" shall mean a Unit' s
annual liability to the Association for the payment of its allocated share of Common Expenses .
(o) Condomiinium. "Condominium" shall. mean Gateway . Center Condominium, the
condominium created by this , Declaration, and shall include, without limitation, the Units• and the
Common Elements.
(p) Declarant. "Declarant" shall mean Telesis Construction Management, LLC, a
North Carolina limited liability company, and its successors and assigns .
(q) Improvement. "Improvement" shall mean any street, driveway, entranceway,
parking lot, sidewalk, retaining wall; curb, culvert, structure or other improvement now existing or
hereafter constructed upon the Property, or any part thereof exclusive of the Building.
(r) Limited .Common Elements. "Limited Common Elements" shall mean any
Common Elements allocated by this Declaration or by operation of the Act for the exclusive use of any
one ( 1 ) or more but fewer than all of the Units, and shall include the Class I Limited Common Elements,
the Class II Limited Common Elements, the Class IH Limited Common Elements, the Class IV Limited
Common Elements and the Class V Limited Common Elements .
(s) Owner. "Owner" shall mean any person who acquires a legal or equitable
interest in any Unit other than as security for an obligation and shall include the Declarant for so long as
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the Declarant shall hold or retain a legal or equitable interest in at least one (1 ) Unit. Notwithstanding the
foregoing, the term "Owner" shall not include any person who acquires (i) a legal or equitable interest in
any Unit as security for an obligation, or (ii) a leasehold interest in any Unit, or (iii) an option, right of
first refusal or other right to acquire or possess any Unit on a future date.
(t) Period of Declarant Control. "Period of Declarant Control" shall mean the
period of time commencing upon the recordation of this Declaration in the Office of the Register of
Deeds of Orange. County, North Carolina, and continuing thereafter up to, through and including the date
as of which all Units have been conveyed of record to persons other than the Declarant.
(u) Plat and Plans. "Plat and Plans" shall mean the plat(s), plans and specifications
for the Condominium, ' including, without limitation, the Building, the Units, the Improvements and the
Common Elements, as recorded in the Office of the Register of Deeds of Orange County, North Carolina,
in Plat Book , Page(s) , as same may be amended, modified and/or supplemented
from time to time.
(v) RpgRq&. "Property" shall mean that certain tract or parcel of land located in
Hillsborough, Orange County, North Carolina, and more particularly described on the attached E7IMIT
(w) Rules and *R ations . "Rules and Regulations" . shall mean such rules . and
regulations regarding the use and occupancy of the Units and the Common Elements as may be adopted
by the Declarant during the Period of Declarant Control or, thereafter, by the Association as provided in
this Declaration. .
(x) Special Assessment. "Special Assessment" shall mean any charge to or
assessment against any Unit or Units made or levied by the Association to fund any extraordinary expense
or capital need of the Association or the Property.
(y) Unit. "Unit" shall mean a physical portion of the Building designated for
separate ownership or occupancy, the boundaries of which are described in the Plat and Plans and in this
Declaration.
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Section 1 .02 Rules of Construction.
(a) The Act. Unless otherwise expressly- defined in this Declaration, or unless the
context shall otherwise require, each term defined in the Act shall have the same meaning m this
Declaration as is ascribed to it in the Act. In the event any provision of this Declaration shall conflict or
be inconsistent with any provision of the Act, the provision of the Act shall be paramount and controlling.
(b) Gender. When and as used in this Declaration, words of the masculine gender
shall be deemed and construed to include co-relative words of the feminine and neuter genders, words of
the feminine gender shall be deemed and construed to include co-relative words of the masculine and
neuter genders, and words of the neuter- gender• shall be deemed to include co-relative words of the
masculine and feminine genders . ,
(c) Person. When and as used in this Declaration, unless the context shall otherwise
require, the word "person" . shall include the plural as well as the singular, and shall mean any natural
person, corporation, limited liability company, Partnership, association, unincorporated organization, joint
venture, joint-stock company, business or other trust, estate, government, governmental subdivision or
agency or other legal or commercial entity.
(d) Captions. The captions and headings in this Declaration are for convenience
only and m no way define, limit or describe the scope or intent of any article, section, paragraph or other
provision of this Declaration.
(e) Reference. All references in this Declaration to articles, sections or paragraphs
are references to articles, sections or paragraphs of this Declaration unless some other reference is
expressly established.
ARTICLE H
NAME AND LOCATION OF THE CONDOM MUM
The name of the Condominium shall be Gateway Center Condominium. The . Condominium is
19cated at South Churton Street, Hillsborough, Orange County, North Carolina.
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ARTICLE III
PROPERTY INCLUDED IN THE CONDOAMM M
The Condominium shall consist of all of the Property, including the Building, the Improvements,
the Units and the Common Elements, and any and all easements and other rights appurtenant thereto.
ARTICLE IV
THE BUILDING AND THE UNITS
Section 4.01 Location and Particulars of the Building. The Building shall be a three* (3) floor
steel frame, masonry and brick veneer construction commercial building. The location and particulars of
the. Building, including the layout and elevations of the Building, the identifying number, boundaries and
dimensions of each Unit and the location of the Common Elements and Limited Common Elements
within the Building, shall be as set forth below and as shown on the Plat and Plans.
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Section 4.02 Location. Maximum Number and Identifying Numbers of Units . The
Condominium shall contain at total of three (3) Units, including one ( 1 ) Unit on the first (ground) floor of
the Building, one ( 1 ) Unit on the second floor of the Building and one ( 1 ) Unit on the thii d floor of the "
Building. The Unit located on the first floor (ground) of the Building, shall be identified as Unit 100.
The Unit located on the second floor of the Building shall be identified as Unit 200. . The Unit located on
the third floor of the Building shall be identified as Unit 300. Declarant reserves the right to .combine,
recombine, subdivide and/or reconfigure any Unit, or any Unit and adjoining Common Elements, prior to
the conveyance of such Unit to any person other than the Declarant.
The location and particulars of each Unit; including its dimensions, approximate area, allocated
Limited Common Elements and other data concerning its proper identification, shall be as set forth below
and as shown on the Plat and Plans.
EachUnit shall be bounded, as to horizontal and vertical boundaries, by the interior surface of its
perimeter walls, ceilings and floors as provided in N.C� G. S . §47C-2- 102 and as shown on the Plat and
Plans; subject, however, to such encroachments as • are contained in the Building, whether the same now
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exist or may be caused by settlement or movement of the Building, or by permissible repairs, construction
or alterations , as provided in N.C . G . S, §47C4414.
Section 4.03 Nature of Interest in each Unit. Each U. together with the undivided interest . in
the Common Elements appurtenant thereto as set forth on the attached FMUBIT B, shall for all purposes
be, and it is # hereby declared to be, a separate parcel of real estate. Subject to the provisions of this
Declaration (including any and all utility and other easements, if any, reserved or conveyed herein), the
Bylaws, the Rules and Regulations and such acts and resolutions as may be adopted from time to time by
the Board of Directors as provided in the Bylaws :
(a) the Owner of Unit 100 shall be entitled to and shall have.
(i) the exclusive ownership, use and possession of Unit 100 ,
(ii) the exclusive use of any Class I Limited Common Elements,
(iii) the exclusive use of any Class V Limited Common Elements allocated to
Unit 100, together with the Owner of any other Unit to which such Class V Limited9
Common Elements are allocated, and
(iv) the non-exclusive use, together with the Owner of each other Unit, of all
Common Elements not designated as Limited Common Elements;
(b) the Owner of Unit 200 shall be entitled to and shall have.
(i) the exck ive ownership, use and possession of Unit 200,
(ii) the exclusive use of any Class II Limited Common Elements,
(iii) the exclusive use, together with the Owner of Unit 300, of any Class IV
Limited Common Elements allocated to Unit 200 and Unit 300, and
(iv) the exclusive use of_ any Class V Limited Common Elements allocated to
Unit 200, together with the Owner of any other Unit to which such Class V Limited
Common Elements are allocated, and
(v) the non-exclusive use, together with the Owner of each other Unit, of all
Common Elements not designated as Limited Common Elements; and
(c) the Owner of Unit 300 shall be entitled to and shall have:
(i) the exclusive ownership, use and possession of Unit 300,
(H) the exclusive use of any Class III Limited Common Elements,
(iii) the exclusive use, together with the Owner of Unit 200, of any Class IV
Limited Common Elements allocated to Unit 200 and Unit 300, and
(iv) the exclusive use of any Class V • Limited Common Elements allocated to
Unit 300, together with the Owner of any other Unit to , which such Class V Limited
Common Elements are allocated, and
(v) the I
non-exclusive use, together with. the Owner of each other Unit, of all
Common Elements not designated as Limited Common Elements.
ARTICLE V
THE COMMON ELEMENTS
Section 5.01 Declaration of Common Elements. The Common Elements shall consist of the
following.
(a) All parts of the Building, with the exception of the individual Units, and shall
include, without limitation,
(i) the foundation, footings and all columns, girders, beams, supports,
support columns and other structural members of the Building;
(ii) all exterior walls of the Building and all interior load bearing walls;
(iii) ' the roof, porches, patios, balconies, decks, . stoops,, outside steps,
stairwells, elevators (including elevator, shafts, shaft walls, elevators and elevator
equipment) and entrances to and exits from the Building,
(iv) all central and appurtenant installations for services such as power, light,
telephone, cable, gas, hot and cold water, sewage, heat, ventilation and air conditioning
and all other mechanical equipment pertaining thereto,
(v) all gas, water, sewer and other utility pipes,
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(vi) all electrical, telephone, cable television and other utility lines ; and
(vii) all shutters, awnings, window boxes, exterior doors and windows, and
each heat pump or other HVAC system (along with the ductwork, wires and conduit
associated therewith), all pipes, lines, cables and other installations for :electrical,
telephone, cable, gas, water and sewer, and any other fixture designed to serve any Unit
but located outside such Unit" s boundaries.
(b) Any and all other parts of the Property, with the exception of the Units,
including, without limitation, , parlang areas, driveways, entrances, sidewalks, run-off water collection
tanks, all gas, water, sewer, electrical, telephone, cable television and other utility pipes, wires, ducts,
cables, conduits, lines, apparatus and/or installations existing in the Building or upon the Property
intended for common use or necessary for or convenient to the existence, maintenance or safety of the
Building, any Unit and/or any Improvement, and any other Improvement.
Section 5.02 Undivided Interests in Common Elements and Allocated Shares of Common
Expenses Liability. The initial undivided interest in the Common Elements and the initial share of
Common Expenses liability allocated to each Unit shall be as set forth on the attached EXIT B. The
initial undivided interest in the Common Elements and -the initial share of Common Expenses liability
allocated to each Unit as set forth on the attached EXXBIT B shall not be altered except (a) by the
Declarant in connection with any combination, recombination; subordination or reconfiguration of any
Unit or Units, or any Unit or. Units and Common Elements, prior to the initial conveyance of any such
Unit to * a person other than the Declarant (subject to any limitation on the maximum number of Units set
forth herein); or (b) by the relocation of Boundaries between adjoining Units with the consent of the
Owner of each affected Unit; or (c) by amendment of this . Declaration as provided below provided,
however; that. a unanimous vote of the Owners of all -affected Units shall also be required. In the event of
any such combination, recombination or reconfiguration of any Unit or Units, or any Unit or Units and
Common Elements, or any such relocation of boundaries between adjoining Units as provided above, the
undivided interest in the Common Elements and the share of Common Expenses liability allocated to
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each Unit shall be reallocated to reflect such changes. Each Unit' s undivided interest in the Common
Elements. and allocated share of Common Expenses liability- shall be determined by dividing the total
number of heated square feet in such Unit by the total number of heated square feet in all Units.
Section 5.03 Limited Common Elements.
(a) The following Common Elements (regardless of whether such Common
Elements are located within or outside the Building) are designated as Class I Limited Common Elements
and are allocated to Unit 100 for the sole and exclusive use and benefit of Unit 100 and the Owner
thereof:
(i) each exterior door, window entranceway, doorstep,- stoop, deck, porch,
balcony and patio serving Unit. 100 only;
(ii) each heat pump and/or other HVAC system (along with the ductwork,
wires and conduit associated therewith) serving Unit 100 only, all pipes, lines, cables and .
other installations for electrical, telephone, cable, gas, water -and sewer serving Unit 100
only, and any other fixture or apparatus serving Unit 100 only and located outside the
boundaries of Unit 100; and
(iii) any Common Elements designated as Class I Limited Common Elements
onothe Plat and Plans, including, without limitation, (A) the entire parking area located on
the south side of N&K Street, (B) the sidewalk adjoining and running along with the
south side of the Building- and (C) the grounds lying between the sidewalk adjoining and
running along with the south side of the Building and the sidewalk running parallel to the
north boundary of N&K Street, all as shown on the Plat and Plans; and
(iv) any Common Elements properly allocated as Class I Limited Common
Elements by operation of the Act.
The Class I Limited Common Elements shall be maintained, serviced, repaired and
replaced, when and as reasonably necessary, by the Owner of Unit . 100 at the sole cost and expense of the
Owner of Unit 100 (which costs and expenses shall not be included as a component of Common
• -31 - -
f
Expenses); provided, however, that in the event the Owner of Unit 100 shall fail to maintain, service,
repair and/or replace any Class I Limited Common Elements when and as reasonably necessary, the
Association may, in its sole discretion and upon- not less than thirty (30) days prior written notice to the
Owner of Unit 100, undertake to perform or have performed such maintenance, service, repair and/or
replacement of the Class I Limited Common Elements, or any part thereof, as may be reasonable and
necessary, and charge or assess the cost of such maintenance, service, repair and/or replacement to Unit
100 as a Special Assessment.
(b) The following Common Elements (regardless of whether such Common
Elements are located within or outside the Building) are designated as Class If Limited Common
Elements and are allocated to Unit 200 for the sole and exclusive use and benefit of Unit 200 and the
Owner thereof
(i) each exterior door, window, entranceway, deck and balcony serving Unit
200 only;
(ii) each heat pump and/or other HVAC system (along with the ductwork,
wires and conduit associated therewith) serving Unit 200 only, all pipes, lines, cables and
other installations for electrical, telephone, cable, gas, water and sewer serving Unit 200
only, and any other fixture or apparatus serving Unit 200 only and located outside the
boundaries •of Unit 200; and
(iu) any Common Elements designated as Class II Limited Common
Elements on the Plat and Plans; and
(iv) any Common Elements properly allocated as Class H Limited Common
Elements by operation of the Act.
The Class II Limited Common Elements shall be maintained, serviced, repaired and
replaced, when and as reasonably necessary, by the Owner of Unit 200 at the sole cost and expense of the
Owner of Unit 200 (which costs and expenses shall not be included as a component of Common
Expenses); provided, however, that in the event the Owner of Unit 200 shall fail to maintain, service,
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p i
ited Common Elements when and as reasonably necessary, the
repair and/or replace any Class II Lim
Association may, in its sole discretion and upon not less than thirty (30) days prior written notice to the
Owner of Unit 200, undertake to perform or have performed such maintenance, service, repair and/or
replacement of the Class II Limited Common Elements, or any part thereof as may be reasonable and
necessary, and charge or assess the cost of such maintenance; service, repair and/or replacement to Unit
200 as a Special Assessment.
(c) The following Common Elements (regardless of whether such Common
Elements are located within or outside the Building) are designated as Class III Limited Common
Elements and are allocated to Unit 300 for the sole and exclusive use and benefit of Unit 300 and the
Owner thereof.
(i) each exterior door, window, entranceway, deck and balcony servmg . Unit
300 only;
(H) each heat pump and/or other HVAC system (along with the ductwork,
wires and conduit associated therewith) serving Unit 300 only, all pipes, Lines, cables and
other installations for electrical, ' telephone, cable, gas, water and sewer serving Unit 300
only, and any other fixture or apparatus serving Unit 300 only and located outside the
boundaries of Unit 3000 and
any Common Elements designated as Class III Limited Common
Elements on the Plat and Plans; and
(iv) any Common Elements properly allocated as Class III Limited Common
Elements by operation of the Act.
The Class III Limited Common Elements shall be maintained, serviced, repaired and
replaced, when and as reasonably necessary, by the Owner of Unit 300 at the sole cost and expense of the
Owner of Unit 300 (which costs and expenses shall not be included as a component of Common
Expenses); provided, however, that m , the event the Owner of Unit 300 shall fail to maintain, service,
repair and/or replace any Class III Limited Common Elements when and as reasonably necessary, the
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Association may, in its sole discretion and upon not less than thirty (30) days prior written notice to the
Owner of Unit 300, undertake to perform or have performed such maintenance, service, repair and%or
replacement of the Class III Limited Common E.lemexits, or any part' thereof, as may be reasonable and
necessary, and charge or assess the cost of such maintenance, service, repair and/or replacement to Unit
300 as a Special Assessment.
(d) The following Common Elements (regardless of whether such Common
Elements are located within or outside the Building) are designated as Class IV Limited Common
Elements and are allocated to Unit 200 and . Unit 300 for the sole and exclusive use and benefit of Unit
200 and Unit 300 and the respective Owners thereof
(i) each exterior door, window and entranceway serving Unit 200 and Unit
300 only;
(n) each heat pump and/or other HVAC system (along with the ductwork,
wires and conduit associated therewith) serving Unit 200 and Unit 300 only, all pipes,
lines, cables and other installations for electrical, telephone, cable, gas, water and sewer
serving Unit 200 and Unit 300 only, and any other fixture or apparatus serving Unit 200
and Unit 300 only regardless of whether located within or outside the boundaries of either
Unit 200 or Unit 300; and
the elevator -system including, without limitation, the elevator shaft,
mechanism and apparatus;
(iv) each stair system including, without limitation, stairwell, stairs, landing
and stairwell doors (including any interior, exterior and fire doors);
(v) any Common Elements designated as Class IV Limited Common
Elements on the Plat and Plans; and
(vi) any Common Elements properly allocated as Class IV Limited Common
Elements by operation of the - Act. '
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The Class IV Limited Common Elements shall be maintained, serviced, repaired and
replaced, when and as reasonably necessary, by the respective Owners of Unit 200 and . Unit 300 at the
sole cost and expense of the respective Owners of Unit 200 and Unit 300 on an equal basis (which costs
and expenses shall not be included as a component of Common Expenses); provided, however, that in the
event the Owners of Units 200 and 300 shall fail to maintain, service, repair and/or replace any Class IV
Limited Common Elements when and as reasonably necessary, the Association may, m its sole discretion
and upon not less than thirty (30) days prior written notice to the Owners of Unit 200 and 300, undertake
to perform or have performed such maintenance, service, repair and/or replacement of the Class IV
Limited Common Elements, or any part thereof, as may be reasonable and necessary, and charge or assess
the cost of such maintenance, service, repair and/or replacement on an equal basis to Unit 200 and Unit
300 as -a Special Assessment.
(e) The Class V Limited Common Elements shall consist of any and all Common
Elements (regardless of whether such Common Elements are located within or outside the Building)
which are designated on the Plat and Plans, or properly allocated by operation of the Act, for the
exclusive use and benefit of more than one ( 1 ) Unit but fewer than all of the Units, exclusive of the Class
I Limited Common Elements, the Class H Limited Common Elements, the Class III Limited Common
Elements and the Class IV Limited Common Elements. The Class V Limited Common Elements shall be
maintained, serviced, repaired and replaced, when and as necessary, by the respective Owners of the
Units to which they are allocated, at the sole cost and expense of such Owners, on an equal basis (which
costs and expenses shall not be included as a component of Common Expenses), provided, however, that
in the event the Owners of the Units to which the Class V Limited Common Elements are allocated shall
fail to maintain, service, repair and/or replace any Class V Limited Common Elements when and as
reasonably necessary, the Association may, in its sole discretion and upon not less than thirty (30) days
prior written notice to the Owners of the. Units . to which the Class V Limited Common Elements are
allocated, undertake to perform or have performed such maintenance, . servicing, repair and/or replacement
of the Class V Limited Common Elements, or any part thereof as may be reasonable and necessary, and
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charge or assess the cost of such maintenance, servicing, repair and/or replacement on an equal basis to
the Units to which the Class V Limited Common Elements are allocated as a Special Assessment.
'
(f) Unless otherwise expressly provided in this Section or elsewhere in this
Declaration, each Limited Common Element shall be maintained, serviced, repaired and replaced by the
Owner(s) of the Units) to which such Limited Common Elements are allocated as provided in this
Section, and the costs and expenses thereof sliall . not be included as a component of Common Expenses .
The Association shall have the responsibility for maintaining, servicing, repairing and replacing any
Limited Common Elements only to the extent the responsibility for any such maintenance, service, repair
and/or replacement has not been expressly allocated in this Section to the Owner(s) of any specific Unit(s)
or it •is not practical for such Owner(s) to perform any such maintenance, service; repair and/or
replacement. The costs and expenses of any such maintenance, service, repair and/or replacement
inaurred . by the Association pursuant * to this paragraph shall be included as a component of Common
Expenses.
Section 5.04 Partitioning. The Common Elements shall not be divided nor shall any person
have any right to .partition any portion thereof.
Section 5.05 Liens . For so long as the Property, or any part thereof, remains subject to the
provisions of the Act or this Declaration; no lien of any nature shall arise or be created against the
Common Elements, or anypart thereof except upon the prior written consent of Owners representing not
less than eighty percent (80%) of the total number of votes allocated to all Units* by this Declaration,
including not less than eighty percent (80%) of the total number of votes allocated to all Units not . owned
by the Declarant. The foregoing provision shall not, however, apply to any lien that may arise , or be
created against the several Units and their respective Common Elements under the provisions of the Act.
Every agreement for the performance of labor, or the furnishing of materials to the Common Elements,
•whether oral or in writing, must provide that it is subject to the provisions of this Declaration and that any .
right to file a mechanic's hen or other similar lien against the Common Elements, or any part thereof, by
reason of labor performed or materials furnished is waived
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ARTICLE VI
EASEMENTS
Section 6v0I Use - and Maintenance of Utilities. • The Association And. each Owner are- hereby
granted a perpetual, non-exclusive easement in •common with one another to. use and maintain any and all
gas, water, sewer, electrical, telephone, cable television, internet and other utility pipes, wires, ducts,
cables; conduits, lines, apparatus and/or installations located in, on or upon any part of the Common
Elements which serve any Unit or any Common Elements . The Common Elements shall be, subject to
such easement in favor of the Declarant, the Association and each Owner to use and maintain any and all
gas, water, sewer, electrical, telephone, cable television, internet and other utility pipes$ wires, ducts,
cables, conduits , lines, apparatus and/or installations located in, on or upon any part of the Common
Elements that serve any Unit or any Common Elements .
Section 6.02 Access Easements. The Association and each Owner are each hereby granted a
perpetual, non-exclusive easement in common with one another over the Common Elements designated
: . as driveways; entranceways, walkways and/or parking areas on the Plat and Plans, exclusive of any
Limited Common Elements, for the purpose of providing parking and ingress, egress and regress to and
from South Chuiton Street and Nash and Kollock Street and the Building, each Unit and the Common
Elements.
Section 6.03 Common Elements. The Association shall have the right, . the power and the
authority, in its sole discretion, to grant non-exclusive rights of way, common driveway or access
agreements and/or or easements for utility purposes over and across the Common Elements, exclusive of
any Limited Common Elements, for the benefit of the Property or adjacent tracts, including the right to -
install, lay, maintain, repair and/or replace water- lines, Pipes, sewer lines, gas mains, telephone wires and
equipment, electrical conduits and wires, common drives, shared buffers and landscaping under, upon or
within any portion of the Common Elements, exclusive of any Limited Common Elements . Each Owner
hereby grants unto the Association an irrevocable power of attorney to execute, acknowledge and record,
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for * and in the name of each such Owner, such instruments as may be necessary to effectuate the
foregoing.
Section 6.04 Declarant' s Easements. The Declarant reserves for itself and its successors and
assigns such non-exclusive easements over, across and through the Common Elements as may be
reasonably necessary for the purpose of discharging Declarant' s obligations or exercising any Special
Declarant Rights whether arising under the Act or reserved in this Declaration.
Section 6.05 Easements Appurtenant to Units. Each of the easements described in Sections
6.01 and 6.02 above shall be appurtenant to and run with title to each of the Units and shall inure to the
benefit of each of the Units and the respective Ownersthereof.
ARTICLE VII
RESTRICTIVE COVENANTS
Section 7.01 Permitted Uses.
(a) Unit 100 . Subject to the provisions of this Section, Unit 100 shall be owned,
occupied and used for general office, restaurant and/or retail purposes only. Unit 100 shall not be used
for or as a temporary or permanent residence of for any purpose or in any manner which violates the
provisions of this Declaration, the Rules and Regulations or any local, state or federal ordinance,
regulation, code, statute or law. The Owner of Unit 100 may delegate to its tenant(s), in accordance with
this Declaration and the Bylaws, such Owner's rights of possession, use and enjoyment of Unit 100 and
the Common Elements appurtenant thereto for any purpose not inconsistent with this paragraph or any
other provision of this Declaration.
(b) Unit 200. Subject to the provisions of this Section, Unit 200 shall be owned,
occupied and used for general office. purposes (which may include the providing or performing of
governmental services to the extent authorized to be provided or performed by North Carolina local
governments) only. Unit 200 shall not be used for or as a temporary or permanent residence or for any
purpose or in any manner which violates the provisions of this Declaration, the Rules and Regulations or
any local, . state or federal ordinance, regulation, code, statute or law. The Owner of Unit 200 may
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delegate to its tenant(s) , in accordance with this Declaration and the Bylaws, such Owner's rights of
possession, use and enjoyment of Unit 200 and the Common Elements appurtenant thereto for any
purpose not inconsistent with this paragraph or any other provision of this Declaration.
(c) Unit 300. Subject to the provisions of this . Section, Unit 300 shall be owned,
occupied and used for general office purposes (which may include the providing or performing of
governmental services to the extent authorized to be .provided or performed by North Carolina local
governments) only. Unit 300 shall not be used for or as a temporary or permanent residence or for any
purpose or in any manner which violates the provisions of this Declaration, the Rules and Regulations or
any local, state or federal ordinance, regulation, code, statute or law. The Owner of Unit 300 may .
delegate to its tenant(s) , in accordance with this Declaration and the Bylaws, such Owner's rights of
possession, use and enjoyment of Unit 300 and the Common Elements appurtenant thereto for any
purpose not inconsistent with this paragraph or any other provision of this Declaration.
Section 7.02 Unsightly Conditions. It shall be the responsibility of each Owner and. the
Association to prevent the development of any unclean, unsightly or unkept condition in, on or upon any
Unit, the Building or any of the other Common Elements.
Section 7.03 Prohu'bited Activities. No illegal, noxious or offensive activity shall be carried on
by any person in, on or upon any Unit, the Building or any of the other Common Elements, nor shall
anything be done therein or thereon tending to cause any nuisance to any Owner. No person shall keep or
maintain in, on or upon any Unit, the Building or anyof the other Common Elements any plant, animal or
device or thing of any sort that is illegal, noxious, dangerous, unsightly or otherwise of a nature that may
diminish or destroy the enjoyment of any Unit, the Building or any of the other Common Elements by any
Owner.
Section 7.04 Sign. Any and all property identification, commercial and other .signs erected
on, affixed to or maintained on the exterior of any Unit, the Building or the . Common Elements shall
comply with the sign plan for the Property, if any. Any and all property identification, commercial and
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v
other signs erected on, affixed to, maintained on or otherwise visible from any Unit, the Building or the
Common Elements shall comply with all applicable codes, ordinances, regulations, statutes and laws .
Section 7. 05 Garbagre. Garbage and trash shall be disposed of only in areas specifically
designated for garbage and trash removal,
Section 7.06 Structures. No structure of any kind, whether temporary or permanent, shall be
placed upon any part of the Common Elements at any time unless with the prior written consent of the
Declarant during the Period of Declarant Control or, thereafter, the Association. In no event shall any
such structure violate any special use perr dt, conditional use permit or other permit or variance pertaining
to the Property issued by any other governmental authority or any ordinance, regulation, code, statute or
law.
Section 7.07 Parton . Subject to the provisions of Section 7.08 and any other pertinent
provisions of this Declaration- and the Rules and Regulations, for so long as any part of - the •Common
Elements designated as a parking area shall be allocated as Limited. Common Elements pursuant to
Section 5.03, such parking area shall be (a) reserved for the sole and exclusive use of the Owner of the
specific Unit to which such parkin area is allocated pursuant to Section 5.03 and such Owner' s
employees, tenants, custbmers, guests, licensees and invitees, and (b) maintained„ repaired and replaced;
when and as reasonably necessary, by such Owner as provided in Section 5.03 . Sul ect to the provisions
of Section 7.08 and any other pertinent provisions of this Declaration and the Rules and Regulations, any -
part of the Common Elements designated as parking area which is not allocated as Limited Common
Elements pursuant to Section 5.03 shall be (i) available for the use of the Owners of all Units and their '
respective employees, tcnants, customers, guests, licensees and invitees, and (H) maintained, repaired and
replaced, when and as reasonably necessary, by the Association.
Section 7.08 Vehicles . No trailer, camper, boat, mobile home, van or other motor vehicle
other than conventional passenger automobiles, pickup trucks, motorcycles and motor • scooters shall be
permitted to use any part of the Common Elements expressly designated as a parking area on the Plat and
-Plans. The provisions of this Section shall not, however, . lie construed or interpreted to prohibit the
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reasonable and necessary use of any parking areas (other than designated reserved parking spaces) by any
van, truck or other delivery vehicle if the operation of such vehicle is reasonably necessary for (a) any
Owner to move in to or out of its Unit, (b) any repair or maintenance of any Unit, the Building, any
Improvement or any other Common Elements and/or (c) the reasonable and necessary conduct of business
in any Unit provided that such van, truck or other delivery vehicle shall not unreasonably impede any
other Owner' s access to the Building, its Unit or any parking lot or deck that may at any time be located
adjacent to the Property and be accessible froin the any driveway located on the Property.
Section 7.09. Alterations . The: Owner of a Unit may make- alterations to the interior of such
Owner' s Unit from time to time; provided, however, that that no such alteration or the installation and/or
construction thereof shall (a) violate any provision of this Declaration or any of the Rules and
Regulations, (b) unreasonably disturb any other Owner' s quiet and peaceful enjoyment of its Unit or in
any manner impair access to any Unit, the Building or any of the other Common Elements, (c) impactor
result in any change or modification to any exterior part of the Building or to any Common Elements, (d)
in any manner adversely affect the structural integrity of the Building or the integrity or operation of any
utility pipes, conduits, cables, wires, equipment or systems in the Building or otherwise upon the
Property, or (e) result in the filing * of any mechanic ' s or materialmen' s lien against any part of the
Property other than the Unit in which the alterations are being installed and/or constructed. Furthermore,
no such alteration and/or constriction within any Unit subsequent to the initial upfit of such Unit shall
increase the cost of fire and/or other casuAlty insurance on the Building or result in the termination of any
such insurance. The Owner or its contactor shall obtain and maintain in place, at all times during
installation and/or construction of the alterations, builder' s risk and worker' s compensation insurance
providing reasonably sufficient coverage for the alterations being installed and/or constructed. All
alterations shall be installed and/or constructed and completed in a good and workmanlike manner in
accordance with all applicable local, state and federal rules, regulations, ordinances, codes and laws, and
accordance with any and all reasonable requirements, guidelines and procedures adopted by the
Association (in the event. such alterations shall include the installation, of a natural or synthetic wood
• floor, the installation thereof shall comply with any and all rules and/or guidelines reasonably required by
the Association pertaining to sound insulation). The Owner shall be responsible for any and all costs of
• such alterations, including permits, licenses, approvals and clean up, and . shall indemnify and hold
hanmlegs, to the extent permitted by law, the Association and each other Owner from and against any
claim . . loss, damage, penalty and/or liability, including reasonable attorneys ' fees, incurred or suffered as
a consequence of the installation, construction and/or maintenance of such alterations.
ARTICLE VM
THE ASSOCIATION
Section 8.01 The Association. The administration and management of the Condominiums shall
be vested in the Association which shall be incorporated as a North Carolina nonprofit corporation in
accordance with the Articles of Incorporation- in the form attached as EIH3IT C and the Bylaws in the
form attached as EI1T D. The name of the Association shall be Gateway Center Condominium
Association, Inc.
Section 8 :02 Membership. The Association`s membership shall consist of all Owners,
including the Declarant for so long as the Declarant shall retain ownership of at least one ( 1 ) Unit. & Each
Owner shall, upon acquiring a legal or equitable interest in a Unit (exclusive of (i) any legal or equitable
interest in any Unit acquired by any person as security for an obligation, or (ii) any leasehold interest in
any Unit, or (m) any option, right of first refusal or other right to acquire or possess any Unit on a- future
date), automatically become a member of the Association and remain a member of the Association until
such time as its ownership of such Unit shall terminate 'for any reason: Each Owner' s membership in the,
Association is mandatory. Each Owner's membership in the Association shall automatically terminate
immediately upon such Owner's transfer of its interest in its Unit to another person. In the event the
Owner of a Unit shall consist of more than one ( 1 ) person, each such person shall be a member of the
Association. ' Membership in the Association shall be appurtenant to, and may not be separated from,
ownership of a Unit. The Association's operation of the Condominium, including, without limitation, the
maintenance, repair, replacement and operation of the Common Elements, and any additions and
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alterations thereto, the assessment and collection from Owners of Common Expense; and other fees,
charges and expenses, and the filing of liens upon Units to secure unpaid common expenses and other .
fees, charges and expenses, shall be in accordance with the provisions of the Act, this Declaration, the
Articles Of Incorporation and the Bylaws ._
Section 8 .03 Allocation of Votes. Each Unit shall be allocated the number of votes set forth
on the attached EZIMIT B on any and all . actions taken by the members of the Association. The Owner
of each Unit shall have the right to cast the vote(s) allocated to its Unit on each action taken by the
members of*the Association. In the event more than one ( 1 ) person shall be the Owner of any Unit, such
persons shall not cast more than the number of votes allocated to their Unit as set forth on .the attached
EDIT B on any action taken by the members of the Association and such vote(s) shall not be split
among the persons who own the Unit. Unless otherwise provided in this Declaration, each vote by the
members of the Association on any action taken by the members of the Association shall be cumulative.
Section 8.04 Common Expense Liability, Special Assessments and Charges.
(a) AuftoxnA The Association shall have the duty, power and authority to levy, assess
or charge to or against the Units, and to collect from the Owners of the Units, such Common Expense
Liability, Special Assessments and/or other charges (to the extent such charges are not otherwise expressly
allocated, in this Declaration to the Owner(s) of any specific Unit(s)) as the . Association may from time to
time deem reasonable and necessary for the upkeep, maintenance, repair, servicing and/or replacement of the
Common Elements or for any extraordinary expense or capital need of the Association or. the Property
(exclusive of the Units).
(b) Imposition of Common Expenses and Lien. Each Unit' s Common Expense
Liability shall be determined in accordance with the allocation set forth on EXHIBIT B. The Association
shall assess and collect each Unit' s Common Expense Liability on such annual or other basis as shall be
established by the Association. Each Umt' s Common Expense Liability shall be paid in full not later than the
date established by the Association; provided, however, that the Association may make provisions for
payment of Common -Expense Liability in monthly or other installments. Each Unit' s Common Expense
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y law, become a en against
Liability (or installment thereon shall, when due, and to the extent permitted b li
such Unit at the time the Common Expense Liability is assessed by the Association. Upon demand, the
,Association shalt fumish to any Owner, or to the mortgagee or trustee under a deed of trust of any Unit, a
certificate stating the amount of such Unit' s Common Expense Liability (or installments thereof) due as of
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any given date. To the extent permitted by law, each Unit is hereby made subject to a continuing lien to
secum payment of each Unit' s Common Expense Liabihty.(or installment thereof) when due.
(c) Establishment of Budget and Common Expenses. The Association shall establish a
budget for each calendar year (unless the Association shall adopt some other fiscal year) which shall
incorporate . the expected annual costs and expenses to maintain, service, repair, replace and insure the
Common Elements (to the extent such costs and expenses are not otherwise expressly allocated in this
Declaration to the Owner(s) of any specific Unit(s)), including, without limitation,
(i) the costs and expenses associated with the repair, maintenance and upkeep
of the entrances, parking areas, sidewalks and other Improvements,
(H) the cost of reserves for capital replacement and such other reserves as the
Association in its sound business judgement shall establish;
(ui) the costs and expenses of grounds keeping and landscaping services; .
(iv) the cost of insurance for such coverage as is required by ARTICLE IBC;
(v) the cost of utility service to the Common Elements;
(vi) the cost of all real and personal property ad valorem taxes and all otlier-
taxes applicable to the Common Elements,
(vii) the cost of expenses of protecting the Property from erosion;
(viii) the cost of expenses associated with the removal of snow or debris,
(ix) the costs of expenses associated with the collection and disposal of garbage,
rubbish and other refim;
(x) the costs of management by any management firm hired by the Association
in its sound business judgment; and
A4-
(m) all other necessary and reasonable costs . including payments on any
borrowings by the Association which, in the sound business judgment of the Association,
must be incurred in order to keep the Property (exclusive of the Units) in a neat, sanitary and
efficient working order, and to provide for the health, safety and welfare of Owners.
Common Expenses shalt be established by the Association in such amount as shalt be
necessary to fiord the Association' s annual budget.
(d) Special Assessments. In addition to Common Expense Liability, the Association
shall have the power to charge, assess and/or levy Special Assessments for purposes deemed necessary or
appropriate by the Association. Special Assessments shall be, used to fiord extraordinary expenses of the
Association or .capital needs of the Property (exclusive of the Units), including the replacement of any
Improvement. A Special Assessment may be charged, assessed and/or levied by the Association and shall be
collected and paid as the Association shall direct. Unless the Association shall otherwise expressly provide,
each Unit's allocated share of any Special Assessment shall be determined in the same manner as each Unit' s
Common Expense Liability. To • the extent permitted by law, alien for any Special Assessment shall
encumber each Unit subject to such Special Assessment, which lien shall, to the extent permitted by law, be
enforceable as provided elsewhereberein for Common Expense Liability.
(e) hagges . The revenues, funds and sums collected by the Association from
Common Exile w Liability, Special Assessments and other charges may be used to pay for any or all of the
following (to the extent such costs and expenses are not otheamnse expressly allocated in this Declaration to
the Owner(s) of any specific Unit's)):
(i) the costs and expenses associated with the repair, maintenance, upkeep
and/or replacement of the entrances, panting areas, sidewalks and other Improvements;
(ii) the cost of reserves for capital replacement and such other reserves as the
Association in its sound business judgment shall establish;
(iii) the costs and expenses of grounds4eeping and landscaping services;
(iv) the cost of *insurance for such coverage as is required by ARTICLE 1X;
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(v) the cost of utility service to the Common Elements;
he cost of, (vi) the expenses of protecting the Property from erosion;
(vii) the cost of expenses associated with the removal of snow or debris;
(vw) the costs of expenses associated with the collection and disposal of garbage,
rubbish. and other refuse;
Oix) -the costs of management by any management fnm hired by the Association
in its sound business Judgment;
(x) all other necessary and reasonable costs including payments on any
borrowings by the Association which, 'n the sound business judgment of the Association,
must be incurred in order to keep the Property (exclusive of the Units) in a neat, sanitary and
efficient working order, and to- provide for the health, safety and welfare of Owhers; and
(xii)the replacement of any Innprovement.
Section 8.05 Common Fie IAabilit Spacial Assessments and ChaWes as Personal
Obligation of Owner Payment of any Common Expense Liability, Special Assessment or other charge
levied, assessed or charged by the Association to or against any Unit pursuant to any provision •of this
Declaration, together with any late charge, interest and collection cost, including reasonable attorneys' fees,
shall be the personal. obligation of the Owner .of such Unit at the time such Common Expense Liability;
Special Assessment or other charge becomes due and payable. If there is more * than one Owner of a
particular Unit, each Owner of such Unit shall be jointly - and severally liable. Each Owner shall pay. any
Common Expense Liability, Special Assessment or other charge levied, assessed or charged by the
Association to or against its Unit pursuant to any provision of this Declaration and shall, to the extent
permitted by law, allow the Association to enforce any lien for non payment in accordance with the .
provisions of this Article,
Section 8,06 .MCmon Fie �Special Assessments and Char. Any
Common Expense Liability, Special- Assessment or other charge levied, assessed or. charged . by the
Association to or against any Unit pursuant to any provision of this Declaration remaining unpaid for a period-
4&
Of thirty (30) days after the due date shall beat'. interest from the due date until paid at a rate of eighteen
percent (18%) per annum or such lower rate as may be set by the Association. A late charge not, to exceed
$25 .00 may also be imposed by the Association for each installment of Common Expense Liability or any
Special Assessment or other charge not paid within thirty (30) days aft the due Wdate,
In addition, any Common Expense Liability, Special Assessment or other charge levied, assessed or
charged by the Association to . or against any Unit pursuant to any provision of this Declaration shall, to the
extent permitted by law, constitute alien against such Unit, which lien shall be perfected when filed of record
In. the Office of the Clerk of Superior Court of Orange County, North Carolina in the manner provided in
Article 8 of Chapter 44 of the General Statutes of North Carolina. Such lien shall also secure the payment of
any inte est, late charge and cost incurred by the Association or by the management firm, if any, including
reasonable attorneys' fees, incident to the collection of any Common Expense Liability, Special Assessment
or other charge as well as all sums advanced and paid by the Association for taxes and payments on account
Of superior mortgages, deeds of trust, liens or other encumbm= which may be required to be advanced by
the Association in order to preserve and protect its lien.
Any such lien may, to the extent permitted by law, be foreclosed as provided in Article 29A of
Chapter 1 of the General Statutes of North Carolina, N.C.G. S . § 1 -339. 1 eta ggeg, and the Association may
take such action as it duns necessary to collect- any Common Expense Liability, Special Assessment or
other charge e levie
d, assessed or charged by the Association to or against any Unit pursuant Ao any
provision of this Declaration, either by personal action against the Owner of such Unit or by foreclosing
its lien, or both, and may settle and compromise its claim or lien if deemed to be in the Association's best
interest. The Association shall " be entitled to bid at any sale held pursuant to a foreclosure of its lien and
to apply as a cash credit against its bid all sums due as provided herein and secured by such lien.
In the event a mortgagee "or other person obtains title to any Unit as a result of the foreclosure of
any mortgage or deed of trust having priority over any Association lien for any Common Expense .
Liability, Special Assessment or other charge or as a result %of any conveyance or other process m lieu of .
foreclosure, such mortgagee or other person shall not be liable for any Common Expense Liability,
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I
Special Assessment or other charge levied, assessed or charged by the Association to or against such Unit
which became due prior to the acquisition of title as .a result of• foreclosure or conveyance in lieu .of
foreclosure. Any such unpaid Common Expense Liability, Special Assessment of other charge shall be
deemed a Common Expense for which all Owners, including the mortgagee or other person acquiring title
by foreclosure of a mortgage or deed of trust having priority, or conveyance in lieu of foreclosure, shall
be responsible on an allocated basis as provided herein.
ARTICLE IX
INSURANCE
Section 9.01 OQLvnership of Policies . All insurance policies insuring the Common Elements,
including the Building and the Improvements, shall be purchased by the Association for the benefit of the
Association, the Owners and their respective mortgagees as their interests may appear. Reasonable
provisions shall be made for the issuance of certificates of mortgagee endorsements to the mortgagee of
any Unit. Each &Owner may, at his option, obtain insurance coverage, at his own expense, on his personal
property and such additional liability and/or other coverage as he may desire.
Section 9.02 Coverage. The Building, the Improvements and any and all personal property, if
any, comprising any part of the Common Elements shall be insured by thew Association in an amount
equal to the maximum insurable replacement value thereof as determined annually by the Board of
Directors with the assistance of the insurance company providing such coverage; provided, however, that
the amount of such coverage shall be not less than eighty percent (80%) of the replacement cost of the
Buildings, the Improvements and all personal property comprising any part of the Common Elements.
Such coverage shall provide protection against (a) loss or damage by fire and other hazards covered by a
standard extended coverage endorsement, and (b) such other risks as from time to time shall be
customarily covered with respect to buildings similar m conshuction, • location and use.
Public liability insurance shall be secured by the Association m such amount and with such
coverage as shall be deemed necessary by the Board of Dtirectors, including, but not limited to, an
endorsement to cover liability of the Owners as a group to any single Owner: There shall also be obtained
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by the Association such other insurance coverage as the Board of Directors shall , from time to time,
determine to be desirable and necessary.
Section 9.03 Premiums . Premiums for insurance policies purchased by the Association shall
be paid by the Association as a Common Expense.
Section 9.04 proceeds. All insurance policies purchased by the Association shall be for the
benefit of the Association, the .Owners and the Owners' respective mortgagees, as their interests may
appear, and shall provide that all proceeds thereof shall be payable to the Association as insurance trustee
under this Declaration. The sole duty of the Association as insurance trustee shall be to receive such
proceeds as are paid and to hold the same in trust for the purposes stated herein or in the Bylaws and for
the benefit of the Owners and their respective mortgagees in the following shares .
(a) Proceeds. on account of damage to Common Elements shall be held as and in the
nature of an undivided share for the Owner of each Unit, such share being the same as each Owneu's
undivided interest in the Common Elements as set forth herein..
{b) Proceeds on account of damage to the Building shall be held as follows :
(i) When the Building is to be restored - for the Owner of each damaged
Unit in the Building in proportion to the cost of repairing the damage.
suffered .by each Unit, which cost shall . be determined by the Board of
Directors, such proceeds to be held in undivided shares.
(n) When the Building is not to be restored - an apportioned share for the
Owner of each damaged Unit with such apportionment to . be a ratio
identical to the - ratio which the undivided interest in the Common
Elements appurtenant to such Unit bears to the total undivided interests
of all Units in the Common Elements.
(c) In the event a mortgage endorsement has been issued as to a Unit, the share of
the Owner of such Unit shall be held in trust . for the mortgagee and such Owner as their interests may
appear.
Section. 9.05 Distribution of Insurance Proceeds . Proceeds of insurance policies received by
the Association as insurance trustee shall be distributed to or for the benefit of the beneficial owners in the
following manner.
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(a) All expenses of the insurance trustee shall be first paid or provision made
therefor.
(b) If the damage for which the proceeds are paid is to be repaired or reconstructed,
the remaining proceeds shall be paid to defray the cost thereof as provided in Section 9.06. Any proceeds
r ._.alxLg after defraying such cost shall be distributed to the beneficial owners .
(c) If it is determined as provided herein that the damage for which the proceeds are
paid shall not be reconstructed or repaired, the remaining proceeds shall be distributed to the beneficial
owners thereof.
Section 9.06 Damage and Destruction. Except as hereinafter provided, damage to or
destruction of the Building shall be promptly repaired and restored by the Association using the proceeds
of insurance on the Building for that purpose and the Owner of each Unit shall be liable for assessment of
any deficiency; provided, however, if the Building shall be more than two-thirds (2/3) destroyed by ire or
other casualty and the Owners of the Units resolve, in the manner prescnbed below, not to proceed with
reconstruction or restoration, then, in that event, the Property shall either be (a) sold or otherwise
transferred as provided in N. C.G. S . § 47C2418, or (b) deemed to be owned by the Owners of all Units as
tenants in common and subject to the provisions of N.C. G. S . §47C 2418 as same may be amended. The
determination of whether to sell the Property or to make the Property subject to the provisions of
N.C. G. S . §47C2= 118 shall be made by Owners in the manner prescribed below. Any resolution or
determination of the Owners contemplated by this Section shall be made (i) by the affirmative vote of the
Owners who represent not less than eighty percent (80%) of the total number of votes allocated to all
Units by this Declaration, which votes shall be cast by such Owners present in person or by proxy at an
annual or special meeting of the members of the Association duly held in accordance with the provisions
of the Bylaws with respect to which notice of the purpose of the meeting shall have been given and at
which meeting a quorum shall be present, or (H) by written consent of Owners representing not less than
eighty percent (80%) of the total number of votes allocated to all Units by this Declaration.
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3
Any reconstruction or repair shall be, to the extent economically feasible, substantially in
accordance with the flat and Plans of the original Building.
ARTICLE X
RESERVATION OF SPECIAL DECLARANT RIGHTS
At all times during the Period of Declarant Control, Declarant reserves the following exclusive
Special Declarant Rights and other rights:
1 . The right to exercise any development rights reserved in this Declaration and/or
as provided in N.C.G.S . § §47C-2405 (a)(8 ) and 47C-2410, including, but not limited to, the right to
combine, recombine, .subdiivide or reconfigure any Unit or Units, or any Unit or Units and Common
Elements, prior to the initial conveyance of any such Unit to a person other than the Declarant.
2. . The right to combine, recombine, subdivide and/or reconfigure any Unit, or any
Unit and adj oaring Common Elements, prior to the conveyance of such Unit to any person other than the
Declarant and to amend, modify and/or supplement this Declaration and/or the Plat and Plans, as
reasonably necessary, tip reflect such combination, recombination, subdivision and/or reconfiguration.
3 . The right to complete the Building or any Improvement as shown on the Plat and
Plans as provided in N.C . G. S . §47C-2409.
4. The right to maintain sales offices, management offices, signs advertising the
Condominium and models in Units or on Common Elements as provided in N. C.G. S . §47C-2- 115,
provided that not more than two (2) Units shall be used for any such purposes at any one time.
5 . The right to use easements through the Common Elements for the purpose of
making improvements within the Condominium as provided in N.C.G. S . §47C4416.
6 . The right to appoint or remove any officer of the Association or any member of
the Board . of Directors, subject to the limitations contained in this Declaration or in N. C.G. S . § 47C-3 -
103 (d) and (e) .
7. The right , to adopt IF and Regulations which are consistent with the
provisions of this Declaration.
8 . The right to lease any Unit or part thereof without the consent of the Association.
ARTICLE XI .
VIOLATIONS AND REMEDIES
In the event of any violation or breach of any provision of this Declaration, the Bylaws or the
Rules and Regulations by any Owner, or by any tenant, guest, invitee, licensee or agent of any Owner, the
Association and each other Owner shall have the right, individually or collectively, to proceed at law or in .
equity to compel compliance with the provisions of this Declaration, the Bylaws or the Rules and
Regulations, as , applicable, or to prevent the violation or breach thereof In addition, in the event any
person shall violate any provision of this Declaration, the Bylaws or the Rules and Regulations at any
time prior to expiration of the Period of Declarant Control, Declarant shall have the right to (a) proceed at
law or in equity to compel compliance with the provisions of this Declaration, the Bylaws or the Rules
and Regulations, as applicable, or to prevent the violation or breach thereof, or (b) to summarily abate or
remove any condition constituting a violation of this Declaration, the Bylaws or the Rules and Regulation
at the 'expense of the offending Owner if such violation shall not have been cured by such Owner within
thirty (30) days after the date Declarant or the Association shall have delivered to such Owner(s) written
notice of such violation and demand for cure. No such entry and abatement or removal by Declarant shall
be deemed a trespass. The failure of the Declarant, the Association or any Owner to enforce any right,
reservation or provision contained in this Declaration, *however long continued, shall not be deemed a
waiver of the right to enforce any such right, reservation or provision in the future as to the same breach
or violation or as . to any other breach or violation occurring prior thereto or subsequent thereto, and shall
not bar or affect the subsequent enforcement thereof.
ARTICLE X11
AMCELLANIEOUS
Section 12.01 Subordination. Nothing contained in this Declaration shall impair or defeat the
lien of any mortgage or deed of trust made in good faith and for value, but title to such Unit or any
interest therein, including the lien of any deed of trust or mortgage, shall be subject to this Declaration.
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Section 12.02 .Amendment of Declaration. Except as otherwise provided in paragraph 5.02(c)
or by N.C.G. S . §47C-2417(a), this Declarationn may only be amended (a) by the afrmative vote of the
members of the Association representing not less than seventy percent (70%) of the total number of votes
allocated to all Units by this Declaration, which votes shall be cast by the members of the Association
present in person or by proxy at an annual or special meeting of the members of the Association duly held
in accordance with the provisions of the Bylaws with respect to which notice of the purpose of the
meeting shall have been given and at which meeting a quorum shall be present, or (b) by written consent
of the Owners representing not less than seventy percent (70%) of the total number of votes allocated to
all Units by this Declaration. No such amendment shall be effective until it is recorded in the Office of
the Register of Deeds of Orange County, North Carolina.
Section 12.03 In 'dit . The invalidity of any provision of this Declaration shall not be
deemed to impair or affect . in any manner the validity or enforceability or effect of the remainder of this
Declaration, and in such event, all of the other provisions of this Declaration shall continue in full force
and effect as if such invalid provisions never had been included herein.
Section 12.04 No Waiver of Provisions of this Declaration. No provision contained in this
Declaration shall be deemed to have been abrogated or waived by reason- of any , failure to enforce the
same irrespective, of'the number of violations or breaches which may occur.
Section 12.05 Law Controlling. This Declaration and the Bylaws attached hereto shall be
construed and controlled by and under the laws of the State of North Carolina.
Section 12.06 Team. The term of this Declaration shall commence on the date this Declaration
is recorded in the Office of the Register of Deeds of Orange County, North Carolina, and continue
thereafter for a period of twenty (20) years, after which time the term of this Declaration shall be
automatically extended for successive periods of ten ( 10) years each unless and until the Condominium is
terminated as provided in N.C.G. S . §47C-2- 1184
Section 12.07 Binding Effect. All of the provisions of this Declaration, the Bylaws and the
Rules and Regulations shall (a) run with title to the Property, including each Unit and the Common
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Elements, and shall be binding upon and encumber the Properly, including each Unit and the Common
Elements, and (b) be binding upon the Association, each Owner, all tenants and occupants of each Unit
and all guests, licensees and invitees of each Owner, tenant or occupant of each Unit, and all such persons
shall be subject to and shall & comply with all of the provisions of this Declaration, the Bylaws and the
Rules and" Regulations. Each person who shall accept a deed or other instrument conveying a legal or
equitable interest in any Unit to him, or who shall enter into a lease or other agreement to lease, rent or
occupy any Unit, shall thereby acknowledge, agree to and ratify each of the provisions of this
Declaration, the Bylaws and the Rules and Regulations, and each such person shall be bound thereby •as
fully and to the same extent as though each such provision was made a part of such deed or other
instrument of conveyance, lease or other agreement, whether written or oral.
Section 12.08 Exhibits. Each exhibit attached to this Declaration is hereby incorporated into
this Declaration as fully and to the same extent as if set forth in this Declaration in its entirety.
IN WMESS VMMMOF, the Declarant has caused this Declaration to be executed by its duly
authorized Manager effective as of the day and year first above written.
TELESIS CONSTRUCTION MANAGEMENT, LLC,
a North Carolina limited liability company
By. (SEAL)
George A. Horton, III, Member/Manager
By. (SEAL)
James W. parker, Jr., Member/Manager
-54-
STATE OF NORTH CAROLINA
COUNTY OF
14 a Notary Public of the County and State aforesaid, certify that George A. Horton, III and James W.
Parker, Jr., the Member/Manager of TELFSIIS CONSTRUCTION AlrANAGTMIENT, LLC, a North
Carolina limited liability company, each personally appeared before me this day and acknowledged the
voluntary execution of the foregoing instrument for and as the act of the limited liability company for the
purposes therein stated Witness my hand and official stamp or seal, this day of , 200
Notary Public .
Typed or Printed Name of Notary Public -
My commission expires: (SEAI�STAMP)
1292YOMM0Declaiation of Condominium (0129.07 Draft #7 CL)
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I 1
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
Being all of that certain pact or parcel of land located in Hillsborough, Orange County, North
Carolina., Inigor acres, more or less, as shown on that certain plat of survey recorded in Plat
Book , Page , Orange County Registry, reference to which plat of survey is hereby made for a
more particular description of said tract or parcel of land.
-56-
EX MMff B
INITIAL UNDIVIDED INTEREST IN COMMON ELEMENTS AND
SSARE OF COMMON EXPENSE LIABILITY ALLOCATED TO EACH UNIT
Heated Undivided Interest in Allocated Share of Common Allocated
Unit Square Few Common Elements Common Expenses Liability Votes
100 33 .333 % 33 .333 % 1
200 33 .333 % 334333 % 1
300 ,i 33 . 333 % 33 .333% 1
996999% 996999% 3 .
-57-
EXHIBIT C
ARTICLES OF -INCORPORATION
OF
GATEWAY CENTER COND011IIltiTiJM ASSOCIATION, INC.,
a North Carolina Nonprofit Corporation
The undersigned does hereby make and aclmowledge these Articles of incorporation for the purpose
of forming a nonprofit corporation under and # by virtue of the North Carolina Nonprofit Corporation Act,
N. C.G. S . § 55A 1 -01 et se�C .,
ARTTCLL I
NAME
The name of theecorporation is Gateway Center Condominium Association, Inc.
ARTICLE H
INITIAL REGISTERED OFFICE AND AGENT
The stred (and n3iiling) address and county of-the initial registered. office of the corporation are 1000 ,
Corporate Drive, Suite 109, Hillsborough, Orange County; North Carolina 27278 . The name of the initial
registered agent of the corporation at that address is George A. Horton, III.
ARTICLE III
INCORPORATOR
The name, address and county of the incorporator are George A. Dorton, III, 1000 Corporate Drive,
Suite 109, Hillsborough, Orange County, North Carolina. 27278 ,
ARTICLE IV
MEMBERSHIP
Any person or entity who holds record title to any condominium unit C Unit") . at Gateway. Center
Condominium (the "Condominium'), a commercial use condominium located at South Churton
Street, H�li sborough, Orange County, North Carolina, and created in accordance with, and subject to, the
provisions of the Declaration of Condominium of Gateway Center Condominium recorded or to be recorded
in the Office of the Register of Deeds of Orange County, North Carolina, as. same may be amended,
supplemented and/or modified from 'time to time (the "Declaration'); shall be and remain a member
("Member') of the corporation for so long as such person or entity shall hold record title to such Unit. No
henholder, judgment creditor, trustee or . other person or entity holding legal or beneficial title to, or any other
interestin, any Unit or Common Element (as defined in the Declaration) merely as security for an obligation
or pursuant to a lease or any option, wright of first refusal or other agreement to purchase or otherwise +possess
any Emit on a future date shall be qualified for or entitled to membership in the corporation. Upon
termination of the Condominium, the members of the corporation shall consist of those persons and entities
entitled to distn`butions of proceeds pursuant to N.C.G.S . Section 47C 2418 .
o*58MA
ARTICLE V
DISTRIBUTION OF ASSETS ON DISSOLUTION
Any assets of the corporation shall, upon dissolution of the corporation, be distributed in accordance
with the Applicable provisions of N.C.G. S . Section 47C-2418 and the North Carolina Nonprofit Corporation
Act.
ARTICLE VI
PRINCIPAL OFFICE
Thd street (and mailing) address of the principal office of the corporation is 1000 Corporate Drive,
Suite 109, Hillsborough, North Carolina 27278 . The principal office may, however, be located at such other
places as may be designated from time to time by the corporation's Board of Directors .
ARTICLE VH
PURPOSES
The corporation does not contemplate pecuniary gain or profit to its members and is formed solely
for the purposes for which a nonprofit corporation may be formed pursuant to the North Carolina Nonprofit
Corporation Act The specific purposes for which the corporation- is formed areas follows :
(a). to have all of the powers granted to the corporation by the North Carolina
Condominium Act and the Declaration not inconsistent therewith;
(b) to enforce any valid restriction, condition or covenant set forth in the Declaration
and to perform the functions and duties and exercise the powers set forth in the North Carolina Condominium
•Act and the Declaration not inconsistent therewith;
(c) . to receive, acquire, hold, retain, encumber, sell, transfer and/or convey legal • or
beneficial title to the Common Elements (as defined in the Declaration), or any part thereof, and any tangible
or intangible personal property, a& provided in the Declaration;
(d) to exercise all 'powers deemed by the Board of Directors of the corporation to. be
necessary to the corporation's objectives and purposes . or which reasonably may be implied therefrom,
including, but not limited to, the power to solicit, collect, receive, administer and disburse fiords and file liens
in such manner as, in the sole discretion of the Board of Directors of the corporation, will operate most
effectively to further the mutual benefit of the Members of the corporation consistent with the provisions of
the North Carolina Condominium Act and the Declaration; and
(e) ' to have and exercise any and all other powers, rights and privilege's which a
corporation organized pursuant to the North Carolina Nonprofit Corporation Act may by law now or .
hereafter have or exercise.
ARTICLE VIH
INMAL DIRECTOR
The corporation's initial Board of Directors shall consistoof one ( 1) director. The name and address
of the corporation's initial director are as follows.
George A. Horton, III
1000 Corporate Drive, Suite 109
Hillsborough, North Carolina 27278
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ENRON
i
ARTICLE 1X
BYLAWS
The initial Bylaws of the corporation shall be adopted by the corporation's initial Board of Directors.
• The power to amend or repeal tile * initial Bylaws or to adopt new Bylaws shall be in the Members. The
Bylaws may contain . any provisions for the regulation and management of the corporation which are not
inconsistent with the North Carolina Condominium Act, the North Carolina Nonprofit Corporation Act, the
Declaration or these Articles of Incorporation.
ARTICLE X
AAWIgDAfENT
These Articles of Incorporation may be amended (a) at any annual or special meeting of the
Members duly held in accordance with the provisions of the Bylaws of the corporation with respect to which
notice of such purpose has been given, and at which a quorum is present, by the affirmative vote of Members
entitled and qualified to vote present at such meeting in person or by proxy who represent not less than a
majority- of the total number of votes allocated to the Units. represented by the Members Present in person or
by proxy at such meeting, or (b) by written consent of Members entitled and qualified to vote who represent
not less than a majority of the total number of votes allocated to all Units as provided in the Declaration. In
the event there are no Members entitled , and qualified to vote, these Articles of Incorporation may be
amended as provided by the applicable provisions of the North Carolina Nonprofit Corporation Act.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this day of
200
(SEAL)
George A. Horton, III; Incorporator
EXIT D
BYLAWS
INITIAL BYLAWS OF
GATEWAY CENTER CONDOMINIUM ASSOCIATION, INC.,
a North Carolina Nonprofit Corporation
ARTICLE I
NAME
Section1.01 Name. The name of the corporation is Gateway Center Condominium Association,
Inc. (the "Association").
ARTICLE IF
OFFICES
SeCOMM 2.01 Principal Office. The principal office of the Association shall be located at the address
provided m the Articles of Incorporation or at such other place in the State of North. Carolina as may be
designated from time to time by the Board of Directors.
Section 2.02 Rggj9Md. Office. The registered office . of the Association required by law to be
maintained in the State of North Carolina may be, but not need be, identical with the principal office.
Section 2.03 Other. Offices. -The Association may have offices at such other places, either within
or without the State of North Carolina as the Board. of Directors may from time to time determine or as the
affairs of the Association may require.
ARTICLE III
X[EMBERSffiP
Section 3.01 Membership. Any person or entity who holds record title to any condominium unit
("Unit') at Gateway Center Condominium (the "Condominium', a commercial use *condominium located at .
South Churton Street, I3illsborough, Orange County, North Carolina, and created in accordance with,
and subject to, the provisions of the Declaration of Condominium of Gateway Center Condominium recorded
or to be recorded in the Office of the Register of Deeds of Orange County, North Carolina, ame as s may be
amended, supplemented and/or modified from time to time (the "Declaration'), shall . be and remain a
member ("Member') of the Association for so long as suchoperson or entity shall hold record title to such
Unit No lienholder, judgment creditor, trustee or other person or entity holding legal or beneficial title to, or
any other interest in, any Unit or Common Element (as. defined in the Declaration) merely as security for an
obligation or I pursuant to a lease or any option, right of first refusal or other agreement to purchase or
otherwise possess any Unit on a firhme date shall be qualified for or - entitled to me hership in the
Association. Upon termination of the Condominium,. the members of the Association - shall consist of those
persons or entities entitled to distributions of proceeds pursuant to N.C.G. S . Section 47C-2418 . All defined
terms in the Declaration shall have the same meanings m these Bylaws unless otherwise defined herein.
-61 -
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actions taken without a •meeting, and proceedings occurring at all such meetings. Robert's Rules of Order
(latest edition) shall govern the conduct of the meetings .
ARTICLE VII .
POWERS .AND DUTIES OF THE BOARD OF DIRECTORS
Section 7.01 Powers, The Board of Directors shall have power to.
(a) suspend the voting rights of any Member during any period in which such Member
shall be delinquent xn the payment of any Common Expense Liability, Special Assessment or other fee, cost,
charge or expense levied against any Unit owned by such Member,
(b) to the extent permitted by law, file alien on, behalf of the Association against any
Unit in the event payment of any Common Expeanses Liability, Special Assessment or other fee, cost, charge
or expense levied against such Unit shall become delinquent, and/or commence appru- priate legal action to
enforce such lien and/or effect collection of any such delinquent Common Expenses Liability, Special
Assessment or- other fee, cost, charge or expense;
(c) declare the office of a Director to be vacant in the event such Director shall be
absent from three (3) consecutive meetings of the Board of Directors;
(d) elect and , employ a President, who shall be the chief executive officer of the
Association, and such other employees as they deem necessary, and to prescribe their duties;
(e) elect such other Officers of the Association as it may deem necessary,
(fl elect a successor Director to fill the vacancy of any Director removed by the
Members or declared vacant by the Board of Directors;
(g) establish such committees as it may deem appropriate; and
(h) exercise for the Association any and all other powers, duties and authority vested in,
conferred upon or delegated to the Association pursuant to the North Carolina Nonprofit Corporation Act, the
North Carolina Condominium Act, the Articles of Incorporation, these Bylaws and/or the Declaration and not
agxwsly reserved to the Members by the North Carolina Nonprofit Corporation Act, the North Carolina
Condominium Act, the Articles of Incorporation, these Bylaws and/or the Declaration. .
Section 7.02 Duties. It shall be the duty of the Board of Directors to :
(a) cause to be kept a complete record of all its acts and corporate affairs and to present
a statemont thereof to the Members at the annual meeting of the Members, or at any special meeting which
such statement is requested in writing any Member,
(b) supervise all Officers, agents and employees of the Corporation, and to see that their
duties are properly Performed;
(c) issue, or to Cause an appropriate Officer to issue, upon demand by any Member, a
certificate setting forth whether any Common Expenses Liability, Special Assessment or other fee, cost,
charge or expense required to be paid by any Member has been paid Such certificate shall be conclusive
evidence of such payment;
=66=
(d) . cause all Officers or employees having fiscal responsibilities to be bonded, as it may
deem appropriate;
(e) cause any property of the Association to be properly maintained and insured;
(f) cause any and all necessary registrations, licenses and permits to be obtained and
maintained by the Association;
(g) submit a proposed annual budget, including any proposed Common Expense
Liability, Special Assessment or other fee, cost; charge or expense, to the Members for their consideration
and approval at the annual meeting of the Members;
(h) submit a proposed special assessment and justification therefor to the Members for
their consideration and approval when and as the Board of Directors may deem necessary;
(i) pay any license fees or governmental charges levied or imposed against any
property of the Association; and
(j) perform such other duties as are imposed by the North Carolina Nonprofit
Corporation Act, the North Carolina Condominium Act, the Articles of Incorporation and/or the Declaration.
ARTICLE VIH
OFFICERS
Section 8.01 Number. The Officers of the Association shall consist of a President, one or more Vice
Presidents as designated by the Board of Directors, a Secretary, a Treasurer and one or more Assistant
Secretaries and Treasurers as designated by the Board of Directors. The Association shall not be required to
have at any time any Officers other than a President, Secretary and Treasurer. Any two (2) or more offices
may be held by the same person, except the offices of President and Secretary. Any natural person shall be
i eligrble for election or appointment as an Officer.
Section 8.01 Election and Term All Officers shall be elected by the Board of Directors and shall
serve at the pleasure of the Board of Directors.
Section 8.03 Comsation. - Any compensation of Officers shall be fixed by the Board of
Directors .
Section 8.04 Removal. Any Officer or agent elected by the Board. of Directors may be removed by
the Board of Directors, with or without cause, at any meeting with respect to which notice of such purpose
has been given to the Directors.
ors.
8.05 President. The . President shall be a Director . and the chief executive officer of the
Association and shall have responsibility for the general supervision of the business of the Association. The
President shall see that all orders and resolutions of the Board of Directors are carried into effect. The
President shall perform such other duties as may from time to time be assigned or delegated to him/her by the
Board of Directors. The President shall have all the general powers and duties which are incident to the
office of the president of a corporation organized under the North Carolina Nonprofit Corporation Act.
-67=
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are no Members entitled and qualified to vote, these Bylaws may be amended as provided by the applicable
provisions of the North Carolina Nonprofit Corporation Act.
Section 11 .07 Self-Dealine. Each Director, Officer and agent of the A.ssociation .shall disclose in
the written minutes of the Board of Directors any contract or agreement of any kind between the Corporation
and any person or entity to which he is related by blood or marriage or in which he has an interest, whether
direct or indirect.
Section 11 .08 Conflicts . In the case of any conflict between the Articles of Incorporation and these
B Articles of Incorporation shall control.
Bylaws, the rpo
effective of these Bylaws shall be the date of approval and
Section_ 11.09 . Effective Date. The effectt date y pp
adoption set forth below.
APPROVED AND ADOPTED ' BY THE UNDERSIGNED INITIAL DIRECTOR OF THE
ASSOCIATION THIS .� DAY OF , 200 .
George A. Horton, K Initial Director
-70-