CERTIFICATE OF REGISTRATION

Transcription

1 T. MCLAUGHLIN ATTORNEY GENERAL ATTORNEY GENERAL STATE OF NEW HAMPSHIRE 33 CAPITOL STREET CONCORD, NEW HAMPSHIRE STEVEN M. HOURAN DEPUTY ATTORNEY GENERAL CERTIFICATE OF REGISTRATION Condominium: NHDOJ: Location: Declarant: Units: Forest Knoll Condominium II LC A Waterville Valley, Grafton County New Hampshire Mountain Knoll Associates, LLC P.O. Box 502 Waterville Valley, New Hampshire The above referenced condominium is registered pursuant to RSA 356-B:54, II, with respect to the offer or disposition of units C-l, C-2, C-3, C-4, D-l, D-2, D-3, and D-4. set forth in the condominium documents submitted to this office. In the event that the town or municipality wherein the condominium is located does not require a certificate of occupancy or other similar approval prior to closing, this certificate is issued subject to the condition that no closing be held with respect to any condominium unit until such unit has been substantially completed. This certificate shall remain in full force and effect, subject to the conditions imposed by RSA 356-B and rules adopted thereunder, until such time as registration is suspended or revoked. Issuance of this certificate should not be construed as suggesting that the Consumer Protection and Antitrust Bureau or any other public agency recommends the condominium or has determined that the disposition of any condominium unit or interest therein is legally sufficient to protect the rights of the purchasers. April 29, 1999 Walter L. Maroney / Senior Assistant Attorney General Consumer Protection and Antitrust Bureau (603) Telephone FAX TDD Access: Relay NH 1-80O

2 PUBLIC OFFERING STATEMENT FOREST KNOLL AT WATERVILLE VALLEY - A CONDOMINIUM II THIS CONDOMINIUM IS REGISTERED WITH THE CONSUMER PROTECTION AND ANTITRUST DIVISION OF THE ATTORNEY GENERAL'S OFFICE OF THE STATE OF NEW HAMPSHIRE PURSUANT TO THE PROVISIONS OF THE NEW HAMPSHIRE CONDOMINIUM ACT, R.S.A. 356-B. THE ACT REQUIRES THAT A PUBLIC OFFERING STATEMENT BE FURNISHED TO A PURCHASER PRIOR TO OR AT THE TIME HE ENTERS INTO A PURCHASE AGREEMENT. THE PURPOSE OF THE STATEMENT IS a TO DISCLOSE MATERIAL FACTS PERTAINING TO THIS CONDOMINIUM. IT IS RECOMMENDED THAT THE PURCHASER READ THIS STATEMENT CAREFULLY, PHYSICALLY INSPECT THE PROPERTY, REVIEW ALL SALES AND OTHER DOCUMENTS IN DETAIL AND CONSULT AN ATTORNEY FOR ADVICE. NOTHING CONTAINED HEREIN SHOULD BE CONSTRUED AS SUGGESTING THAT THE CONSUMER PROTECTION AND ANTITRUST DIVISION OR ANY OTHER PUBLIC AGENCY HAS DETERMINED THAT THE DISPOSITION OF ANY CONDOMINIUM UNIT OR INTEREST THEREIN IS LEGALLY SUFFICIENT TO PROTECT THE RIGHTS OF PURCHASERS. UNLESS A PURCHASER HAS RECEIVED THIS STATEMENT PRIOR TO OR AT THE TIME HE ENTERS INTO A PURCHASE AGREEMENT, HE MAY VOID THE CONTRACT AT ANY TIME BY GIVING WRITTEN NOTICE TO THE SELLER. RECEIPT OF THIS STATEMENT MUST BE ACKNOWLEDGED IN WRITING APPENDIX N

3 PUBLIC OFFERING STATEMENT Page 2 BY THE PURCHASER.

4 PUBLIC OFFERING STATEMENT Page 3 IMPORTANT NOTICE OF PURCHASER'S CANCELLATION RIGHTS New Hampshire law provides that you have an express and unqualified right to cancel your Purchase and Sale Agreement within five (5) calendar days from the date the agreement was entered into or the delivery to you of the Public Offering Statement, whichever is later. If you elect to cancel, you may do so by written notice thereof hand-delivered or deposited in the United States Mail, return receipt requested, within the five-day period, to the Declarant of the Condominiums or to any agent of the Declarant, provided, however, that if you elect to mail the notice of cancellation, you must also provide the Declarant with telephonic notice of cancellation within the five-day period. Such cancellation shall be without penalty and any deposit made by you must be refunded in its entirety no later than ten (10) calendar days from the Declarant's receipt of your written notice of cancellation.

5 PUBLIC OFFERING STATEMENT Page 4 1. NAME AND ADDRESS OF DECLARANT AND THE CONDOMINIUM. (a) The Declarant is Mountain Knoll Associates, L. L. C., with a business address of: Mountain Knoll Associates, L.L.C. P. 0. Box 502 Waterville Valley, NH (b) The condominium is known as "Forest Knoll at Waterville Valley - A Condominium II" and is located at One Tecumseh Road, in the Town of Waterville Valley, County of Grafton and State of New Hampshire. Its address is: 2. THE DECLARATION. Forest Knoll at Waterville Valley - A Condominium II One Tecumseh Road Waterville Valley,NH A copy of the Declaration of Forest Knoll at Waterville Valley - A Condominium II, as same shall be amended from time to time, (including the By-Laws and Residency Regulations of Forest Knoll at Waterville Valley - A Condominium II) shall be delivered to the Purchaser with the Purchaser's copy of this Purchase and Sale Agreement. 3. COPIES OF LEGAL INSTRUMENTS. Copies of all contracts or other agreements to be signed by the Purchaser and all legal instruments evidencing the Purchaser's interest in the Condominium are being delivered to the Purchaser with Purchaser's copy of the Purchase and Sale Agreement. 4. PURCHASER'S OWNERSHIP RIGHTS. Each Purchaser acquires by deed exclusive ownership in a designated Unit, together with an undivided interest in the Common Areas of the Condominium.

6 PUBLIC OFFERING STATEMENT Page 5 A Purchaser becomes a member of the Association of Unit Owners up6n acquiring a Condominium Unit, and a Purchaser is entitled to vote in proportion to his percentage of undivided interest in the Common Areas. 5. NATURE OF THE CONDOMINIUM. (a) General Description: Forest Knoll at Waterville Valley - A Condominium II, is an expandable condominium, which presently consists of one (1) building containing eight (8) units, together with the land upon which same are located comprising a total of acres, but may be expanded into an additional 6.5 acres, to be purchased, and to contain an additional forty-eight-(48) units. The land comprising the Common Area and other common facilities as described in the Declaration shall be owned, in common, by the Unit Owners. Portions of the Common Area described in the Declaration, as same may be amended from time to time, as Limited Common Area shall be owned, in common, by the Unit Owners, however, the use of those areas, facilities, or structures shall be restricted according to provisions in the Declaration. All Units shall be similar in quality of construction, but the Developer will offer a variety of plans and levels. Units may be all on one level or may be multi-level units. No Unit will be less than 1,106 square feet in size or more than 2,200 square feet in size exclusive of garages or basements. 6. EASEMENTS AND RESTRICTIONS. The property is subject to the following easements and restrictions: (a) The property is located in the Town of Waterville Valley which has a subdivision ordinance and which has granted subdivision approval to this project subject to the condition that approval be received from the New Hampshire Water Supply and Pollution Control Commission for subdivision. An updated copy of the approved subdivision plan including as-built information was approved by the Waterville Valley Planning Board

7 PUBLIC OFFERING STATEMENT Page 6 on, 1998, and recorded in the Grafton County Registry of Deeds as Plan #9525. (b) (c) (d) The construction of the Units in the Condominium is governed by the Town of Waterville Valley Building Code The plan for the construction of the buildings are in accordance with the building code and will be approved by the Town prior to construction of any building and will be available for inspection and/or copying at the office of the Declarant. Approval from the New Hampshire Water Supply and Pollution Control Commission for the water distribution system and the septic systems has been received. No further approvals are necessary from this agency or any other state agency. The Condominium is subject to and has the benefit of certain easements created by the Declaration and by the Condominium Act, RSA 356-B These include: (i) (ii) Easement for Encroachments. By virtue of this easement, Unit Owners and the and the Unit Owner's Association are protected in the event that a unit or common element encroaches upon another unit or common element as provided in RSA 356-B:22; Easement To Facilitate Completion. The Declarant reserves an easement across the Condominium to the extent necessary to construct the improvements on the Condominium as provided in RSA 356-B:22; (iii) Easement to Facilitate Sales. The Declarant or its agent or representative may use the Units in the Condominium as model or sales offices and may place advertising signs anywhere within the Condominium as provided in RSA 356-B:2; (iv) Easement for Ingress and Egress. Each Unit Owner has a right of access to the common elements, subject to the rules, regulations, and restrictions established by the Unit Owner's Association,

8 PUBLIC OFFERING STATEMENT Page 7 (v) (vi) Easement for Access to Units. Authorized representatives of the Unit Owner's Association, including the Declarant and the managing agent, may enter any Unit to the extent necessary to correct conditions threatening other Units of the Common Area, to make repairs to the Common Element which are accessible only from the Unit, or to correct conditions which constitute violations of the Declaration, By-Laws, or Regulations. In the event of the violation of the Declaration, By-Laws or Regulations, the violation may be corrected without the consent of the Unit Owner, and the Unit Owner may be charged with the resulting expense; Easement to Facilitate Expansion. An easement for the purposes of adding certain additional land to the Condominium as provided in Paragraph 24 of the Declaration. (vii) Easement for Support. Each Unit Owner has the benefit of a restriction upon any action of a neighboring Unit Owner, or of the Unit Owner's Association with respect to the Common Elements, which would endanger the stability or safety of his unit; (viii) Restrictions for Unit Use. The conditions under which a Unit may be used are set forth in the Declaration, By-Laws and Residency Regulations attached to the Declaration. These documents contain certain restrictions on the use of the property. The Declaration and Residency Regulations shall be carefully reviewed in their entirety for a thorough understanding of the Purchaser's rights. The Condominium Declaration, By-Laws and Residency Regulations, as all may be amended from time to time, contain certain general restrictions and easements such as an easement in common by all Unit Owners for the maintenance and repair of all common utilities, common easement for utility companies such as electric and telephone companies who maintain their own facilities. These documents should be carefully reviewed in their entirety for a thorough understanding of the Purchaser's rights. 7. LIENS AND ENCUMBRANCES.

9 PUBLIC OFFERING STATEMENT page 8 (a) (b) (c) (d) Mortgage Deed of Mountain Knoll Associates, LLC in favor of Meredith Village Savings Bank, securing the payment of $800,000, dated December 11, 1 998,and recorded in the Grafton County Registry of Deeds at Volume 2362, Page 39. Conditional Assignment of Mountain Knoll Associates, LLC in favor of Meredith Village Savings Bank, dated December 11, 1998,and recorded in the Grafton County Registry of Deeds at Volume 2362, Page 59. UCC-1 Financing Statement of Mountain Knoll Associates, LLC, Debtor, in favor of Meredith Village Savings Bank, Secured Party, dated December 11, 1998,and recorded in the Grafton County Registry of Deeds on December 15, 1998, at Volume 2362, Page 61. Mortgage Deed of Mountain Knoll Associates, LLC in favor of Waterville Company, Inc., securing the payment of $80,000, dated December 11, 1998,and recorded in the Grafton County Registry of Deeds at Volume 2362, Page IMPROVEMENTS OR AMENITIES. All improvements, such as roads, parking areas, the water system and the sewerage system will be completed prior to the transfer of Units which are serviced by the improvements and there are no further recreational improvements or amenities which the Declarant is required to provide or construct. The remaining amenities as they, relate to roads and utilities necessary for the yet uncompleted units will be complete prior to the sale of units services by required improvements. There is at the present, no set date for the completion of unbuilt units. 9. EXPRESS WARRANTIES. There are no express warranties provided by the Declarant with respect to the Units and Common Areas of the Condominium, except for the guarantee against structural defects as provided by RSA 356-B:41. Each Unit together with its appurtenant undivided interest in the Common Area will be conveyed by warranty deed. In addition, manufacturer's warranties for the appliances

10 PUBLIC OFFERING STATEMENT Page 9 located within the Units will be delivered to the Purchaser at the time of closin'g. 10. THE UNIT OWNER'S ASSOCIATION. A Unit Owner's Association exists in accordance with the By-Laws of the Association which are part of the Declaration of Condominium. Each Unit Owner shall be a member of the Association by virtue of his ownership of a Condominium Unit and shall be entitled to one vote per unit. The Association has the right to manage the affairs of the Unit Owners in accordance with the Declaration and the powers conferred upon the Unit Owner's Association by RSA 356-B. A copy of the By-Laws of the Association are provided within the Declaration with this Public Offering Statement. The Unit Owner's Association maintains liability and casualty insurance for the buildings and grounds which make up the Condominium. There is no insurance coverage provided by the Association which protects the individual Unit Owners' possessions or property. The Declaration discloses the process by which the Association makes decisions to rebuild damaged or destroyed Units. 11 MANAGEMENT CONTRACT LEASE ASSESSMENTS. The current budget for the Condominium's operation is attached hereto. Provisions have been made in the budget for capital expenditures and major maintenance reserves. The Declarant has not entered into any management contract or other contracts or leases which would effect the use, maintenance or administration of or access to, all or part of the Condominium. The Association reserves the right to enter such a contract as provided in the Declaration and By-Laws. 12. INITIAL. SPECIAL OR RECURRING FEES OR CHARGES. Purchaser is not required to pay any initial fee in connection with the purchase of the Unit, with the exception of closing fees which are customarily charged to purchasers in real estate transactions, { ) months advance payment of the condominium maintenance fee. Said payment for the condominium maintenance fee shall be placed by the Condominium Association

11 PUBLIC OFFERING STATEMENT Page 10 into the reserve for major maintenance and shall not relieve the Purchaser frotn liability for payment of the condominium fees. However, the Purchaser is not hereby prohibited from collecting said sum from any subsequent Purchaser of his Unit in the event Purchaser shall sell his unit in the future. At the closing, Purchaser shall pay the monthly maintenance fee for the first month which fee shall be prorated such that the Purchaser is paying solely for the days of the first month the Purchaser owns the Unit. Thereafter, Purchaser shall be required to pay a recurring maintenance fee on the first day of each month. The maintenance fee is based upon the annual budget which will be allocated equally among the proposed eight (8) Units to be completed and is based on the respective percentage interest of each unit. Percentage of undivided interest shall be reallocated each time an additional Unit is added to the existing eight (8) Units until such times as the last Unit is completed, then a further reallocation shall be made based on the respective value of each of the completed Units. The proposed maintenance fees for the proposed initial eight (8) Units is disclosed herein in the paragraph entitled "Projected Budget". The maintenance fee will vary and adjust in accordance with the actual cost of maintaining and managing the Condominium and, therefore, there can be no assurance of what the maintenance fee will actually be and the figures indicated herein are projected budget costs. NOTWITHSTANDING THE FOREGOING, THE DECLARANT IS EXPRESSLY AND EXPLICITLY UNDER NO OBLIGATION TO COMPLETE AND CONSTRUCT THE FORTY-EIGHT (48) UNITS TO BE CONSTRUCTED FROM THE EXPANDABLE LAND OR THE SEPTIC SYSTEMS, WATER LINES, AND UTILITY CONNECTIONS INTENDED TO SERVE SAME. At such time as a Unit is sold, it shall be established as a Unit to which is appurtenant a~percentage of undivided interest in the Common Area as set forth in the Declaration. Each such Unit shall have a percentage of beneficial interest in the Common Area and shall be liable for its common expense assessments in the same manner as any other existing Unit in the Condominium. 13. FINANCING AVAILABLE TO PURCHASER. Declarant will not be offering financing to the purchaser of any Unit. Purchasers

12 PUBLIC OFFERING STATEMENT page 11 are free to pursue financing arrangement with any lending institution of their choice. The Declarant may, however, from time to time, recommend or suggest certain lending institutions or mortgage companies.depending upon the Declarant's understanding of the availability of local financing through local lending institutions or through mortgage companies. 14. ESCROW OF DEPOSITS. All deposits made relative to any disposition of any interest in a unit in the Condominium shall be held by the Declarant at Meredith Village Savings Bank, Route 25, Meredith, NH The Declarant reserves the right to use purchase sales deposits to offset contractor costs. 15. PROJECTED BUDGET. The Projected First Year Condominium Association Budget is as follows: Expense Item: Annual Expense: Snow Removal $3, Trash Removal Common Electric Insurance Premium 1, Building Maintenance 1, Grounds Maintenance 3, Management Fee 1, Major Maintenance Reserves 2, Miscellaneous Total: $ Per Unit Annual/Monthly Condominium Fees: Two Bedroom Unit: $1,228/yr. $102.33/mo. Three Bedroom Plus Loft Unit: $1,789/yr. $149.00/mo. Three/Four Bedroom Unit: $2,444/yr. $203.66/mo. NOTE: No taxes are listed under the projected budget as each Unit Owner will be separately assessed and taxed by the Town of Waterville Valley, New Hampshire, for the value of his Unit, together with its undivided interest

13 PUBLIC OFFERING STATEMENT Page 12 in the Common Area. Insurance listed under the projected budget is the property and liability insurance to be held by the Association. The budget does not make any provisions for individual cost, of maintaining a Unit, including electricity, heat, water, sewer, and air conditioning, nor insurance on the contents of the Units nor the personal liability of the Unit Owner. # * # * # J{C:\WPWIN60\ (February 8, 19991

14 DECLARATION OF FOREST KMOLL AT WATERVILLE VALLEY - A CONDOMINIUM II WHEREAS, MOUNTAIN KNOLL ASSOCIATES, L.L.C., a limited liability company organized and existing under the laws of the State of New Hampshire, with a principal place of business in the Town of Waterville Valley, County of Grafton and State of New Hampshire, with a post office address of P. 0. Box 502, Waterville Valley, New Hampshire 03215, (hereinafter referred to as "Declarant"), is the owner of certain premises situate in the Town of Waterville Valley, County of Grafton and State of New Hampshire, more fully described in Appendix A hereto, and intends to submit said premises and the improvements now or hereafter located thereon to the condominium form of ownership and use in the manner provided by the New Hampshire Revised Statutes Annotated, Chapter 356-B, (hereinafter referred to as the "Condominium Act"), and to impose upon said premises and the improvements now or hereafter located thereon mutually beneficial restrictions under a general plan of improvement. NOW, THEREFORE, the Declarant hereby publishes and declares that all of the above-described property is held and shall be held, conveyed, hypothecated, encumbered, leased, entered, used, occupied and improved subject to the following covenants, conditions, restrictions, uses, limitations and obligations, all of which are declared and agreed to be in furtherance of a plan for the development of the premises JOHN J. MCCORMACK. ATTOR NE Y - AT - LAW ASHUAND, NEW HAMPSHIRE 03217

15 DECLARATION page 2 submitted, and shall be deemed to run with the land and shall be a benefit and burden to the Declarant, successors and assigns, and any person or persons acquiring or owning an interest in said premises, or a portion thereof, and the improvements now or hereafter located thereon, their grantees, successors, heirs, executors, administrators, devisees and assigns. 1. DEFINITIONS. Certain terms as used in this Declaration and in the By-Laws which are included herein, shall have the meaning stated in the Condominium Act, and as follows, unless the context clearly indicates a different meaning therefor. A. Declaration shall mean this instrument and appendices thereto. B. Declarant shall mean "Mountain Knoll Associates, L.L.C.", a limited liability company organized and existing under the laws of the State of New Hampshire, which has made and executed this Declaration. C. Condominium shall mean real property, and any interests, lawfully submitted to the Condominium Act by the recordation of condominium instruments pursuant to said Condominium Act. D. Unit shall mean a portion of the Condominium designed and intended for individual ownership and use. E. Common Area shall mean all portions of the Condominium other than the Units. F. Limited Common Area shall mean area or portion of the Common Area reserved for the exclusive use of the owners of one or more, but less than all, of the Units. G. Condominium Unit shall mean a Unit together with the undivided JOHN J. MCCORMACK ATTOR NE Y - AT - LAW ASHLAND, NEW HAMPSHIRE 03217

16 DECLARATION page 3 interest in the Common Area appertaining to that Unit. H. Identifying Numbers shall mean one or more numbers that identify only one Unit in the Condominium. I. Person shall mean a natural person, corporation, partner ship, association, trust or other entity capable of holding title to real property, or any combination thereof. J. Purchaser shall mean any person or persons who acquire by means of a voluntary transfer a legal or equitable interest in a Condominium Unit, except as security for a debt. K. Singular or Plural Gender, whenever the context so permits, the use of the plural shall include the singular, the use of the singular the plural, and the use of any gender shall be deemed to include all genders. Unit. L. Unit Owner means one or more persons who own a Condominium M. Association shall mean the Forest Knoll at Waterville Valley - A Condominium II Owners Association, a voluntary corporation, and its successors. N. Board of Directors shall mean the governing body of the Association elected pursuant to the By-Laws. 0. Condominium Instruments is a collective term referring to the Declaration, By-Laws and site and floor plans recorded pursuant to the provisions of the Condominium Act. Any exhibit, schedule or certification accompanying a Condominium Instrument and recorded simultaneously therewith shall be deemed an integral part of that Condominium Instrument. Any amendment or certification of any Condominium Instrument shall, from the time of the recordation of such amendment or certification, be deemed an integral part of the affected Condominium Instrument, so long as such amendment or certification was made in accordance with the provisions of the Condominium Act or this Declaration. P. Common Expenses shall mean all expenditures lawfully made or JOHN J. MCCORMACK ATTOR NE Y - AT - LAW ASHLAND, NEW HAMPSHIRE 03217

17 DECLARATION Page 4 incurred by or on behalf of the Association, together with all funds lawfully assessed for the creation and/or maintenance of reserve pursuant to the provisions of the Condominium Instruments. Q. Expandable Condominium shall mean the Condominium to which additional land and/or units may be added in accordance with the provisions of this Declaration. 2. INFORMATION REQUIRED BY THE CONDOMINIUM ACT. A. Name and Address: The name of the Condominium shall be Forest Knoll at Waterville Valley - A Condominium II, and its address is Tecumseh Road, Waterville Valley, New Hampshire B. The Land: The land owned by the Declarant which is hereby submitted to the condominium form of ownership is located on Tecumseh Road, in the Town of Waterville Valley, County of Grafton and State of New Hampshire, and is more particularly described in Appendix A hereto. C. General Description of Land and Buildings: The land is located on the southerly side of Tecumseh Road in the Town of Waterville Valley, County of Grafton and State of New Hampshire, and contains approximately acres. The condominium consists of one (1) building located on the land as depicted on a certain site plan to be recorded herewith. Contained in this building are Units C-1, C-2, C-3, C-4, D-1, D-2, D-3, and D-4. The building containing the Units has a lower level, upper level, and loft level. The building in this Condominium is constructed of wood frame and wood exterior on a concrete foundation. The orientation of the Units on the land and the relation of each Unit to the others is more particularly described and depicted on certain site and floor plans to be recorded herewith. D. Description of Units: Units C-4 and D-1 are located on the lower floor level and main floor level and each contains three to four bedrooms, a family room, three and one-half baths, a laundry/storage area, a kitchen and a living/dining area. Units C-1 and D-4 are located on the main floor level and each contains two bedrooms, two bathrooms, a laundry/storage area, a kitchen, and a living/dining area. Units C-2, C-3, D-2, and D-3 are located on the main floor level and upper/loft level and each contains a staircase entryway located on the main floor level, JOHN J. MCCORMACK. ATTOR NE Y - AT - LAW ASHLAND, NEW HAMPSHIRE O3217

18 DECLARATION Page 5 three bedrooms, three bathrooms, a laundry/storage area, a kitchen, and a living/dining area which are all located upon the main floor level. Additionally, there are living and storage areas located on the upper/loft level. The boundaries of each Unit are to the unfinished interior surfaces of its perimeter walls, unfinished surfaces of its lowermost floors, unfinished surface of uppermost ceilings, interior surfaces of windows and window frames, skylights and skylight frames, and unfinished interior surfaces of doors, door frames, and beams, and includes both the portions of the building so described and the space so encompassed. E. Description of Limited Common Area: All Units, except Unit C-4, have a deck or patio located adjacent to the living/dining area which patio or deck is limited to the exclusive use of the Unit to which the deck is adjacent or attached and is Limited Common Area for that Unit. The Declarant, its successors and assigns, hereby expressly reserves the right to assign, as limited common area appurtenant to Unit C-4, a patio or deck by means of the recording of an amendment to the within Declaration and the recording of an "as-built", "site" or "floor" plan depicting same. Any such deck or patio shall be constructed so as to be in compliance with any applicable ordinances, rules or regulations. Such amendment to the Declaration and recording of a plan shall not require the approval of any Unit Owner or the Association, as hereinabove defined. Units C-1, C-4, D-1, and D-4 have a ski/storage closet and entryway porch area located adjacent thereto and situate on the main floor level, which ski/storage closet and entryway porch area are limited to the exclusive use of the Unit to which each is adjacent or attached and is Limited Common Area for that Unit. Units C-2, C-3, D-2, and D-3 have a ski/storage closet and entryway porch area located on the main floor level, which ski/storage closet and entryway porch area are limited to the exclusive use of the Unit to which each is adjacent or attached and is Limited Common Area for that Unit. F. Description of Common Area: The Common Area shall include all parts of the Condominium that are not included within the boundaries of the Unit as provided in this Declaration. The Common Area includes, but not by way of limitation: (i) The land upon which the building containing the Units is located, and the walks, shrubbery, gardens, parking areas and other land included in the description of Forest Knoll at Waterville Valley - A Condominium II in Appendix A hereto; JOHN J. MCCORMACK. ATTORNEY - AT - UAW. ASHLAND. NEW HAMPSHIRE 03217

19 DECLARATION page 6 (ii) Roofs, foundations, pipes, ducts, flues, common well or wells, chutes, conduits, wires and other utility installations to the outlets, bearing walls, perimeter walls, columns and supports, to the interior surfaces thereof, and any such facilities located within a Unit, which serve parts of Forest Knoll at Waterville Valley - A Condominium II other than the Unit within which they are located; (iii) All other parts of Forest Knoll at Waterville Valley - A Condominium II, including without limitation all corridors or hallways serving more than one and any and all personal property acquired by the Association, necessary or convenient to its existence, maintenance and safety, normally in common use. G. Condominium Unit Values and Related Percentages: There shall appertain to each Condominium Unit in Forest Knoll at Waterville Valley - A Condominium II an undivided interest in the Common Area appertaining to each Unit and its owner for all purposes, including voting, as required by New Hampshire R.S.A. 356-B:17 as set forth in Appendix C hereto. The application of the percentage of undivided interest in the Common Area has been determined on the basis of the proportion which the size of each Unit bears to the aggregate size of all Units as reflected in Appendix C hereto. There shall appertain to each Condominium Unit in Forest Knoll at Waterville Valley - A Condominium II for voting purposes in connection with meetings of the Association, a number of votes which is equal to the percentage of undivided interest. Where a particular Condominium Unit is owned by more than one person, the owners thereof may attend any meetings of the Association, but it shall be necessary for those present to act unanimously in order to cast a vote to which they are entitled. The Declarant shall be entitled to vote with respect to any Condominium Unit owned by it. H. Statement of Purposes and Restrictions: The Units and Common Area shall be held and used subject to the following restrictions: (i) No Unit Owner shall occupy or use his Condominium Unit or permit the same, or any part thereof, to be occupied or used for any purpose other than as a private residence for the Owner and the Owner's family, or the Owner's lessee or guests. This section shall not be JOHN J. MCCORMACK. ATTO R NE Y - AT - LAW. ASHLAND, NEW HAMPSHIRE 03217

20 DECLARATION page 7 construed to prevent an Owner from renting or leasing his Unit for residential purposes. No residential use of the attic storage area shall occur. (ii) /Special permission may be given by the Board of Directors for limited professional office use of a particular Unit upon application of the Owner of such Unit, where the Board of Directors shall find that such limited professional use is not incompatible with the basic residential nature of Forest Knoll at Waterville Valley - A Condominium II as a whole. The Board of Directors may grant such permits and for such periods of time and upon such further terms, conditions and restrictions as it shall deem to be in the best interests of Forest Knoll at Waterville Valley - A Condominium II as a whole. (iii) No waste shall be committed in the Common Area or Limited Common Area and specifically no trees, shrubbery, or brush shall be planted or cut, without the prior consent of the Association. (iv) No structures of any type or nature, however temporary, shall be erected, placed or permitted on the Common Area or Limited Common Area. (v) No snow machines, all-terrain vehicles, or other motorized recreational vehicles shall be operated within five hundred (500) feet of any Building in the Condominium, except that licensed, inspected and operating passenger vehicles may be parked in those places provided for such use and so designated by the Board of Directors or manager. Motorized recreational vehicles, snow machines, or all-terrain vehicles may be parked in those places provided for such use and so designated by the Board of Directors or manager. Subject to such rules as may be adopted by the Board of Directors, recreational vehicles, snow machines, or all-terrain vehicles may travel over and across the Common Area for access to designated parking areas. (vi) No fires are permitted on the Common Area, except in places which may from time to time be designed for such use by the Board of Directors. JOHN J. MCCORMACK ATTOR NE Y - AT - LAW ASHUAND, NEW HAMPSHIRE 03217

21 DECLARATION Page 8 (vii) No habitation of any type or duration is permitted in or on the Common Area. (viii) No person shall make any use of any portion of Forest Knoll at Waterville Valley - A Condominium II which constitutes a nuisance or annoyance to any Unit Owner, which constitutes a fire hazard, which may result in the cancellation of any insurance on any part of Forest Knoll at Waterville Valley - A Condominium II, or which is in violation of any law, ordinance or governmental regulation. The construction of additional buildings and Units to facilitate the conversion of the Common Area shall not be considered a nuisance or annoyance. No use shall be made of any part of Forest Knoll at Waterville Valley - A Condominium II which may increase the premiums on insurance covering any portion of Forest Knoll at Waterville Valley - A Condominium II without the approval of the Board of Directors in writing. (ix) Other than signs erected by the Declarant, no signs of any kind shall be displayed for public view or from any Unit without the consent of the Board of Directors, who shall be empowered to adopt rules regarding the placement, size, and type of sign which may be used. No clothes lines, television or radio antennas, garbage, trash, clothing, snow machines, or other personal property of similar nature shall be maintained, kept, stored, placed or left where it may be seen or observed by the general public or another Unit Owner. (x) No livestock shall be kept or permitted in any Unit or in the Common Area. Birds, fish and animals of the type usually considered pets may be kept in a the Unit. However, permission may be withdrawn at the discretion of the Board of Directors in the event the pet is considered a nuisance to other owners. (xi) Nothing shall be altered or constructed in or removed from the Common Area, including Limited Common Area, except upon the written consent of the Board of Directors. (xii) The Board of Directors are authorized to adopt such rules JOHN J. MCCORMACK ATTORNEY - AT - LAW ASHUAND, NEW HAMPSHIRE 03217

22 DECLARATION page 9 regarding the use of the Units, Common Area, or Limited Common Area as may be necessary, and there shall be no violation of the rules by any person. (xiii) The Declarant and persons that it may select shall have the right of ingress and egress over, upon and across the Common Area, and the right to store materials thereon and to make such other use thereof as may be reasonably necessary and incident to construction, and complete development and sale of Forest Knoll at Waterville Valley - A Condominium II, including, without limitation, placing construction vehicles, equipment, and trailers on the Common Area. The Declarant and the persons to whom it has granted this permission shall not unduly interfere with the Unit Owners or persons occupying Condominium Units and their rights to use the Common Area and facilities. The Declarant's rights to complete construction, common development and sales of Forest Knoll at Waterville Valley - A Condominium II, as expressed herein, shall not be deemed to limit the right conferred upon the Declarant pursuant to the Condominium Act. (xiv) Subject to the provisions of the within Declaration, the By-laws and the Condominium Act, each Unit Owner shall have an easement in common with the owners of all other units for ingress and egress through and the use and enjoyment of, the Common Area. I. Voting Requirements in the Event of Damage or Destruction: In the event of damage or destruction to the Condominium, the following voting requirements shall pertain: (i) In case of fire, casualty, or other disaster, the insurance proceeds shall be applied to repair or reconstruction and the Board of Directors shall arrange for such repair or reconstruction of the damaged or destroyed portion of Forest Knoll at Waterville Valley - A Condominium II as hereinafter set forth unless Forest Knoll at Waterville Valley - A Condominium II is damaged or destroyed to the extent of seventy-five percent (75%) or more of the total replacement value of all of the buildings in Forest Knoll at Waterville Valley - A Condominium II, and the JOHN J. MCCORMACK. ATTOR NE Y - AT - UAW. ASHLAND, NEW HAMPSHIRE 03217

23 DECLARATION Page 10 Association by vote of eighty percent (80%) of the Unit Owners' total voting power, within sixty (60) days of the date of such damage or destruction, votes not to repair or reconstruct the damaged or destroyed property, but to terminate Forest Knoll at Waterville Valley - A Condominium II. If the said property is damaged or destroyed to the extent of seventy-five percent (75%) or more of the total replacement value of all the buildings in Forest Knoll at Waterville Valley - A Condominium II and the Association votes by a vote of eighty percent (80%) of the Unit Owners' total voting power within sixty (60) days not to rebuild or reconstruct, but rather to terminate the Condominium, then the agreement of the required majority of Unit Owners to terminate shall be evidenced by their execution of a termination agreement, or the president or treasurer of the Association shall execute such agreement accompanied by certificate of vote of the secretary, which termination agreement shall be recorded in the Grafton County Registry of Deeds, pursuant to the Condominium Act. Upon recordation of an instrument terminating the Condominium, Forest Knoll at Waterville Valley - A Condominium II, in its damaged condition, shall be deemed to be terminated and to be owned by the Unit Owners as tenants-in-common in proportion to their respective undivided interests in the Common Areas. As long as such tenancy-in-common lasts, each Unit Owner, or the heirs, successors or assigns thereof shall have an exclusive right of occupancy of that portion of the property which formerly constituted his Unit. Upon recordation of an instrument terminating the Condominium as hereinbefore provided, the rights that the Unit Owners may have to the assets of the Association shall be in proportion to their respective undivided interests in the Common Areas. (ii) If the cost of such repairs and restoration is less than the amount of said insurance proceeds, then the excess of said insurance proceeds over said cost shall be added to the Forest Knoll at Waterville Valley - A Condominium II reserve for contingencies and replacements, or in the discretion of the Board of Directors, distributed by the Board of Directors to the Unit Owners as their interests may appear, in accordance with the respective percentages hereto aforesaid. If the proceeds of insurance, paid to the Board of Directors pursuant to Subparagraph l(i) of Paragraph 2 hereof, are not sufficient to defray the costs of JOHN J. MC CORMACK. ATTOR NE Y - AT - UAW. ASHUAND, NEW HAMPSHIRE 03217

24 DECLARATION Page 1 reconstruction and repair, or upon completion of reconstruction and repair, the funds for the payment of the cost thereof are insufficient, assessments insufficient additional amounts to provide payment of such costs shall be made against the Unit Owners in proportion to their respective votes in the Association. If all or any portion of such assessments are not available to the Board of Directors prior to the time that the amounts thereof are needed to provide payment of such costs, the Board of Directors may borrow such amounts, on behalf of the Association, and may secure such borrowing by assignment of the liens relative thereto arising pursuant to this Declaration. Immediately after a fire or other casualty causing damage to a building, the Board of Directors shall obtain reliable and detailed estimates of the cost of repairing and restoring the damage to a condition as good as that existing before such casualty. Such costs may also include professional fees and premiums for such bonds as the Board of Directors determines to be necessary. The Board of Directors shall contract for such repair and restoration and in doing so shall exercise its sole discretion in selecting from among said estimates. Any such reconstruction or repair shall be substantially in accordance with the original plans and specifications under which the damaged building was originally constructed. Encroachments upon or in favor of Units which may be created as a result of such reconstruction or repair shall not constitute a claim or basis for any proceeding or action by the Owner upon whose property such encroachment exists, provided that such reconstruction is substantially in accordance with original plans and specifications under which the damaged building was originally constructed. Such encroachments shall be allowed to continue in existence for so long as the building (as reconstructed) shall stand. (iii) The net proceeds of insurance collected on account of a casualty and any additional amounts collected by the Board of Directors from assessments against Unit Owners on account of such casualty (or borrowed by the Board of Directors as provided above) shall constitute a construction fund which shall be disbursed in payment of the cost of JOHN J. MCCORMACK. ATTOR NE Y - AT - LAW. ASHUAND, NEW HAMPSHIRE 03217

25 DECLARATION Page 1 2 reconstruction and repair by the Board of Directors. The construction fund shall be paid by the Board of Directors in appropriate progress payments, to such contractors, suppliers and personnel engaged in performing the work or supplying materials or services for the repair and reconstruction of the building as designated by the Board of Directors. It shall be presumed that the first monies disbursed in payment of the cost of reconstruction and repair shall be from insurance proceeds; and if there is a balance in the construction fund after the payment of all of the cost of the reconstruction and repair for which the fund is established, such balance shall first be applied to any borrowing pursuant to Section l(ii) above, and the remainder, if any, shall be added to the Forest Knoll at Waterville Valley - A Condominium II reserve for contingencies and replacements, or in the discretion of the Board of Directors, distributed by the Board of Directors to the Unit Owners as their interest may appear, in accordance with the percentages hereto, as set forth above. When the damage is to both Common Areas and Units, the insurance proceeds shall, to the extent practical, be applied first to the cost of repairing the Common Area and the balance to the cost of repairing the Units. 3. EXCLUSIVE OWNERSHIP AND POSSESSION BY OWNER. Each Unit Owner shall be entitled to exclusive ownership and possession of his Unit, and each such Unit Owner shall be entitled to an undivided interest in the Common Area in the amount expressed above. The amount of undivided interest of each Unit Owner in the Common Area shall have a permanent character. No such interest shall be separated or severed from the Unit to which it appertains, being deemed to be conveyed or encumbered with the Condominium Unit even though it is not expressly mentioned or described in the instrument of conveyance or encumbrance. Subject to the provisions of this Declaration, all Unit Owners may use the Common Area, excepting Limited Common Area, in accordance with the purposes for which it is intended, so long as they do not hinder or encroach upon the lawful JOHN J. MCCORMACK. ATTORNEY - AT - UAW ASHUAND. NEW HAMPSHIRE 03217

26 DECLARATION Page 1 3 rights of other Unit Owners or otherwise violate the provisions of this Declaration or of any condominium rules adopted pursuant to this Declaration, Subject to the provisions of this Declaration, a Unit Owner shall be entitled to the exclusive use of the Limited Common Area appurtenant to his Unit. The exclusive use of the Limited Common Area shall not be altered without the consent of all Unit Owners expressed in an amended Declaration duly recorded, and without such consent, shall not be separated from the Unit to which it is appurtenant, it being deemed to be conveyed or encumbered with the Condominium Unit even though it is not expressly mentioned or described in the instrument of conveyance or encumbrance. A Unit Owner shall not be deemed to own the undecorated and/or unfinished surfaces of the perimeter walls, floors, ceilings, windows and doors bounding his Unit, nor shall the Unit Owner be deemed to own the utilities running within the boundaries of his Unit, except as tenant-in-common with the other Unit Owners. A Unit Owner, however, shall be deemed to own and shall have the exclusive right, at his own expense, to paint, re-paint, tile, wax, paper or otherwise refinish and decorate the finished surfaces of the floors, ceiling, beams, perimeter walls and door frames bounding his Unit. 4. UNIT OWNER'S OBLIGATION TO REPAIR. Each Unit Owner shall, at his own expense, keep his Unit and its equipment and appurtenances in good order, condition and repair. In addition to keeping the interior of the Unit in good repair, each Unit Owner shall be responsible for providing reasonably sufficient heat to avoid the freezing of such pipes as may be located appurtenant to his Unit, and each Unit Owner shall further be responsible for the maintenance, repair or replacement of any bathroom and kitchen fixtures, plumbing fixtures, water heater, appliances, heating equipment, lighting fixtures, range hoods and fans, vacuum cleaners, carpeting, drapes, ventilating fans, fireplaces and flues, and other property which is not Common Area and which is located in his Unit. Each Unit Owner shall immediately notify the Board of Directors or its agents of any damage to or malfunction of any facilities for the furnishing of utility services or waste removal which is Common Area within his Unit. Each Unit Owner shall also, at his own expense, keep the Limited Common Area appurtenant to his Unit in a clean and sanitary condition, and shall make all repairs of damage there to caused or permitted JOHN J. MCCORMACK ATTOR N E Y - AT - LAW. ASHLAND, NEW HAMPSHIRE 03217

27 DECLARATION Page 14 by him, reasonable wear and tear excepted. In the event a Unit Owner fails to make such repairs after thirty (30) days written notice of the need for same is given to him by the Board of Directors, the Board of Directors may enter and make such repairs, the expense of which shall be borne by said Unit Owner. No Unit Owner shall permit any repair or other work in his Unit or the Limited Common Area appurtenant to his Unit, by anyone unless such person or entity has furnished written evidence that it has obtained reasonable adequate public liability and workmen's compensation insurance in form and amount which are satisfactory to the Board of Directors, and unless such repair or other work is performed in compliance with all governmental laws, ordinances, rules and regulations. 5. PROHIBITION AGAINST STRUCTURAL CHANGES BY UNIT OWNER. No Unit Owner shall, without first obtaining written consent of the Board of Directors, make or permit to be made any structural alteration, improvement or addition in or to his Unit or in or to the exterior of the buildings or other Common Area, or Limited Common Area. No Unit Owner shall do any act or work that will impair the structural soundness or integrity of the buildings or safety of the property or impair any easement or hereditament without the written consent of all Unit Owners. No Unit Owner shall paint or decorate any portion of any porch, patio, storage area or balcony without first obtaining written consent of the Board of Directors. 6. MAINTENANCE AND REPAIR OF COMMON AREAS. Maintenance and repair of Common Areas shall be accomplished by and at the expense of the Association, except in instances where expenses are assessed by the Association against a Unit Owner or Unit Owners to repair, without limitation, windows, exterior doors, and any other portion of the Common Area damaged or destroyed through the willful or negligent act or omission of said Unit Owner or Owners or their servants, agents or invitees, and except as may be otherwise provided in this Declaration. 7. ENTRY FOR REPAIRS. It shall be the duty of each Unit Owner to provide the Association with a key to his Unit to provide access at all reasonable times to the Association or its duly JOHN J. MCCOHMACK. ATTOR NE Y - AT - UAW. ASHLAND. NEW HAMPSHIRE 03217

28 DECLARATION Page 15 authorized agent for the purposes of maintaining and for repairing Common Areas, and the Association shall have the irrevocable right, to be reasonably exercised, through its Board of Directors or agents, to enter any Unit or Limited Common Area to inspect the same, to remove the violations therefrom and to perform any repair, maintenance or construction for which the Association is responsible, and shall have the irrevocable right, to be reasonably exercised, through its Board of Directors or agents, to enter any Unit or Limited Common Area, for the purpose of making emergency repairs necessary to prevent damage to other parts of Forest Knoll at Waterville Valley - A Condominium II. Such entry shall be made with as little inconvenience to the Unit Owner as practicable. Any damage to any Unit occasioned by the Unit Owner's failure to provide the Association with a key as heretofore provided or failure to provide access as heretofore provided shall be repaired at the sole expense of the Unit Owner of said Unit Owner, and the Association shall be held harmless from any liability. 8. BY-LAWS. The By-Laws shall be as set forth in Appendix D hereof. These By-Laws may be amended by two-thirds of the total votes of all members of the Association provided a copy of the proposed By-Laws has been included in the written notice of the meeting. Any such amendment shall become effective upon recordation in the Registry of Deeds for Grafton County, New Hampshire. 9. INSURANCE. The Board of Directors shall obtain and maintain to the extent obtainable, the following insurance: A. Fire. Vandalism and Malicious Mischief: Fire insurance with extended coverage, vandalism and malicious mischief endorsements insuring all the buildings in Forest Knoll at Waterville Valley - A Condominium II, including, without limitation, all such portions of the interior of such buildings as are for insurance purposes normally deemed to constitute part of the building and customarily covered by such insurance, such as heating and air conditioning and hot water tanks and other service machinery, interior walls, ail finished wall surfaces, bathroom and kitchen cabinets, appliance and fixtures, heating and lighting fixtures, carpeting, floor covering, and such insurance to be in an amount at least equal to the replacement value of the buildings and to be payable to the Board of Directors for the Unit Owners JOHN J. MCCORMACK. ATTO R NE Y - AT - LAW ASHLAND, NEW HAMPSHIRE 03217