KINDERTON VILLAGE ADVANCE, NORTH CAROLINA

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Page 1 of 8 KINDERTON VILLAGE ADVANCE, NORTH CAROLINA HOA Synopsis of our Covenants (Revised February 2007)

Page 2 of 8 Table of Contents Homeowners Association--------------------------------------------------------------------3 Landscaping and Common Areas ----------------------------------------------------------4 Open 8 am 8 pm Daily------------------------------------------------------------------------4 Architectural Control --------------------------------------------------------------------------5 Holiday Decorations ---------------------------------------------------------------------------7 Parking -------------------------------------------------------------------------------------------7 Pets -----------------------------------------------------------------------------------------------7 Miscellaneous -----------------------------------------------------------------------------------7 Assessments ------------------------------------------------------------------------------------8 Fine Process-------------------------------------------------------------------------------------8 Conclusion---------------------------------------------------------------------------------------8

Page 3 of 8 Rules, Responsibilities, and Guidelines Homeowners Association The Homeowners Association is still controlled by the Developer Adams, Egloff, and Avant. Board of Directors The Board of Directors is the governing body of the Association and has the ultimate responsibility for the operation of the Association on behalf of the owners. The Board makes decisions concerning assessments, expenditure of funds, contracts negotiations, and establishing/enforcement of rules/regulations for the community. The Board is composed of Trent Adams, Dick Egloff, and Kerry Avant. When the neighborhood is handed over to the residents the board will be elected members (who are homeowners). The Board s intent is to: Assure quiet enjoyment for all homeowners and residents; Provide an aesthetically pleasing landscape; Provide for the architectural integrity of the community; Ensure sound financial decision making Officers The officers of the Association include a President, Vice-President, Treasurer, and Secretary who are appointed annually by the Board. Association Management Due to the numerous facets of running the operations of the Association, it is necessary to employ the services of a professional management company. Some of the services provided by the Management Company include Assessment collections, accounts payable, homeowner correspondence, maintaining the overall finances of the Association (including financial statements), and oversight of contractors (ex. landscaping, pool maintenance). Currently, the Association employs Community Association Services Inc. (CAS). CAS, Inc. http://www.casnc.com Rae Brown, Community Manager 118 Cherry Street, Suite B Kernersville, NC 27284 Phone: 336-992-7700 Fax: 336-992-7701

Page 4 of 8 If an issue or question arises, homeowners should call, email, or write to the Management Company. The Community Manager will engage the Board as necessary to bring resolution to any issue or question. Landscaping and Common Areas One of the responsibilities of the Association is to maintain the appearance of the Condos and the common areas. Landscaping Landscaping such as lawn care for common areas (ex. mowing, seeding, fertilizing, etc) and tree/shrubbery maintenance is the responsibility of the Association. This work is contracted annually to a landscape maintenance firm on the basis of competitive bids and performance. Pool The pool is the biggest asset of the Association. On the flip side, the pool is one of the Association s largest liabilities/expenses. All Homeowners are expected to assist the Association with preserving the upkeep of the pool by adhering to several guidelines: Open 8 am 8 pm Daily 1. Residents should enter the Pool area through the Front Clubhouse door using their assigned Pool Key. You may be asked to show your Pool Key as proof of residency during your pool stay. 2. No one is allowed in the Clubhouse Room/Kitchen unless they have officially rented it for that day. 3. Side Gate will not be used for general access but only for maintenance services. Anyone found jumping over the fence or gaining access by means other than Front Clubhouse door will be asked to leave. 4. Please read and follow all Pool Rules posted in the Pool area. 5. Pets are not allowed in the Pool and Clubhouse areas. 6. Maximum number of guests is 4 per household (poolside parties not included) and must be accompanied by a Resident at all times. 7. Music/radio may be used in the Pool area only with personal headphones, ear buds, etc., and is not allowed to be played out loud. 8. When CLOSED sign is indicated on either front Clubhouse door or side gate, no one is allowed in the water. The CLOSED sign indicates a safety or health issue. You may still access the Pool area but absolutely NO SWIMMING. 9. Do not tamper with any pool equipment in or around the Pool area (skimmer covers, drains, ring buoys [unless needed] etc.) 10. Unauthorized persons are not allowed in the Pool Equipment room. Anyone found trespassing will be asked to leave the Pool area. 11. Upon leaving the Pool area, please dispose of any garbage, wipe down and reposition chairs/tables, and properly secure all doors upon exiting. By working together, we can keep our Pool and Clubhouse Looking their best! Protect your pool access Key and transfer to new buyer if you sell your property (fee of $100.00 will be required for replacement); Children under the age of 14 are not allowed in the pool without adult supervision; Homeowners with delinquent dues will not have access to the pool (via key revocation). Reservations for the club house can be made with Pat Russell at 1-336-940-2383.

Page 5 of 8 Article VI Section 4 Homeowners are expected to keep their lot/yard in good repair year-round. This is especially key in the Spring/Summer/Fall during the active growing season. Homeowners are expected to adhere to the following guidelines: Grass should be mowed regularly and should not exceed twelve inches in height at any time. Homeowners failing to comply will have their lot mowed by the Landscaper at the Homeowner s expense; Lot/Yard along sidewalk and alley curb should be edged regularly not allowing grass to grow over the sidewalk or alley curb; Shrubs and other plantings should be kept neatly pruned; Yard Art and other structures (outside of plantings and holiday decorations) are considered Architectural in nature and should be requested for approval prior to placement (see Architectural Control section below); Household furniture and appliances (including grills) shall not be kept on the front porch; Trash and other debris should be contained within trash receptacles, not in sight of street or alley. Yard Waste, Trash, and Recyclables, and other Debris should be placed in containers and should be placed on street or alley (no earlier than the day of pickup) and removed from street or alley (no later than one day after pickup). These containers should not be stored in sight of street or alley; Plantings are limited to trees, shrubs, and other flowering plants (ex. annuals and perennials). Home garden items (ex. Tomatoes, herbs, etc) will be allowed, but must be confined to the rear of the dwelling, not in sight of the street, and space should not exceed a 12 X12 square. Architectural Control Article VI Section 1 Another large responsibility of the Association is to preserve the look and feel of the community. To a large extent, this is achieved through architectural control. To aide the Board in responding to requests and enforcement of guidelines, the Board has appointed an Architectural Review Committee (ARC). In essence, ARC member(s) will serve as an initial point of contact and will moreover strive to fully understand the scope and approach of the requested change. Ultimately, the Board of Directors will review the request and make a decision whether or not to allow the change. Any homeowner that makes architectural change(s) without approval, does not adhere to approval conditions, or does not properly maintain their dwelling or architectural alteration/change is subject to a fine of up to $100 dollars (One Hundred US Dollars) per day until either 1) a change request is submitted and ultimately approved, 2) the alteration is reverted back to its previous state in the event that the change request is denied, or 3) the maintenance related issue has been rectified. Process Step 1: Submit a Architectural Control Change Request form, along with supporting documentation (design specs, blueprints, sketch, etc) to the Management Company; Step 2: Management Company will forward change request to ARC member(s); Step 3: ARC member(s) will likely contact homeowner to discuss scope and approach of change(s) requested (and may request additional information);

Page 6 of 8 Step 4: ARC member(s) will review the request with the Board of Directors (within 30 days of receipt of request); Step 5: Board will make decision and notify Management Company; Step 6: Management Company will send Homeowner notification with decision and will provide details around any applicable conditions (in the event of any approval); Step 7: Board reserves the right to inspect the change during and/or after completion to ensure compliance with approval (Alterations not made in compliance with approval conditions will be subject to same fine procedure as unauthorized alterations ). Guidelines Architectural Change Guideline examples include, but are not limited to: ALL exterior construction, additions, and alterations are required to be approved in advance of project kick-off; Landscaping projects must be approved in advance; Yard art and other decorative notions (maximum limit of six items); Detached buildings are not allowed under any circumstances; Temporary structures are not allowed (except temporary/portable storage units (ex. PODS), which are limited to fifteen calendar days); Clothes lines are not allowed; Basketball goals, adult or child swing sets, forts, and other recreational structures are not allowed. Mobile Basketball goals should be moved into garage when not in use. No communications or television receiving dish, antenna or similar item may be erected or placed on any Lot, or on any building on any Lot, except a satellite dish less than one (1) meter in diameter, Before installing a satellite dish less than (1) meter in diameter, the Lot Owner must make a good faith effort to locate the dish in the rear yard area and screen the dish such that the dish is not visible from any lot, the street or any General or Limited Common Areas. The screening for the dish must be approved by the Committee. Condos must have letter authorizing installation of dish. If the Homeowner must affix the dish elsewhere, a letter from the Satellite provider stating the reason (ex. necessary for satellite line of sight) for the placement of the dish will be required; Fence enclosures are allowed within the following confines: Village Single Family Residence Fencing Guidelines The Fencing Guidelines are written to provide an astatically pleasing addition to the yard, not to contain animals since animals are to be kept primarily within the residence Previously approved fences will be grandfathered as long as they are in good repair and must be replaced with approved material. 1) Fencing materials may be white vinyl or black wrought iron. No Wooden fences. 2) Fencing at the front and side yards should be 24 to 36 tall with a open picket design. 3) Fencing in the rear yards may be a maximum of 60 tall with an open picket design. 4) The minimum distance from the curb along an alley (back and/or side of lot) shall be 14 feet. This accounts for the 4 foot right way to the homeowner s lot line and 10 feet for the utility easement on the lot owner s property. 5) The minimum distance from the sidewalk shall be 10 feet. 6) On the side lot line, fencing may be on the line and if it is a corner lot facing the street the street side should follow same rules as the front yard, 24 and 36 tall with an open picket

Page 7 of 8 design. Please secure agreement with your neighbor as to the location of the side line. If necessary have it located by a surveyor. 7) Fencing only around the cement Patio in the rear yards may be a maximum of 72 tall with a solid screening design. This is the only place a Privacy fence is allowed. All dwellings, additions, fences, and other changes must be kept in good repair at all times. Holiday Decorations Article VI Section 4 Homeowners should remove holiday decorations within 30 (thirty) days after the holiday. Homeowners not adhering to this guideline will be assessed a fine until the decorations are removed. Homeowners are responsible for disposing immediately of their discarded trees. Parking Article IV Section 2. D., Article VI Section 2.e., Section 2.j., Section 2.y2 Homeowners should park vehicles within the confines of their driveway and/or garage but not on the front street. Boats, commercial vehicles, trailers, utility vans, recreational vehicles, or other non-private use vehicles are not permitted on the streets at any time and are restricted to your garage. Pets Article VI Section 2. k Pets should be kept primarily indoors. Pets must be on a leash when being walked off your property. Pets should not create a nuisance or safety risk to other homeowners. Pet owners are responsible for pet droppings when off their own property. Pet lots, cages, fencing, dog run or housing is not permitted Miscellaneous Article VI Section 4 No loud, illegal, or offensive activity should be carried on upon Homeowner s property or Common Area(s); No animals, livestock, poultry, dogs, cats, or other household pets of any kind shall be kept on any lot; Signs are not permitted on any lot except for For Sale or For Rent, which must pertain to the dwelling/home; For Sale signs on vehicles are not permitted on the street. Political signs are allowed on a homeowner s lot with the following restrictions: 1) signage only allowed 60 days before and 15 days after election and 2) a maximum of two signs; Personal property (toys, bicycles, skateboards, scooters, etc) should not be left in sight of street or alley; Solicitation is not permitted within the community; No yard sales or garage sales; Doors, Windows, and Window Treatments/Blinds (visible from the street), should be kept in good repair; No signs are to be posted on the mail kiosk, except official association meetings. Properties within Kinderton Village are to be used as Single Family Dwellings only and in accordance with Federal, State, and Municipal statues.

Page 8 of 8 Assessments Article V Single Family: $720 a year. Payable 6 months prior to June 30 th and Dec 31 st for new owners, or $60.00 a month by direct draft, or $60.00 a month if paid by check Condos: Townpark Oakwind Drive $150.00 a month Pinewood Lane $170.00 a month Payable by check or bank draft Late Payments are assessed after 30 days in amt of $. Lien will be filed after 90 days delinquent with legal fees added to account. Judgment and foreclosure will be after 120 days. Fine Process Article IX Section 4. The following process will be followed when a fineable issue presents itself: Step 1: Homeowner will be notified in writing of the issue/offense with a required compliance date; Step 2: If issue/offense is not corrected by required compliance date, a second warning letter will be sent requesting compliance with rule/regulation which will provide last possible correction date; Step 3: If homeowner does not comply, letter will be sent to homeowner requesting a meeting before the Board to explain their situation and reasons behind non-compliance; Step 4: After homeowner meeting, Board will make the decision regarding levying of fine; Step 5: Homeowner will be fined in accordance with North Carolina General Statues and Rules and Regulations until such time that the issues/offense is corrected by the Homeowner. It will be the responsibility of the Homeowner to make the Board aware of corrective action in writing (via the Property Management Company). Conclusion This is a quick-reference synopsis and in the case of conflict with the registered covenants, then the registered covenants rule. The rules, responsibilities, and procedures outlined in this document have been established by the Board of Directors to work in tandem with the Restricted Covenants/By-Law s to ensure the ongoing financial, aesthetic, and home resale viability of the Community. The Board of Directors reserves the right to add, edit, or delete rules and regulations at any time. Homeowners will be notified when any changes are made to the rules and regulations. The cooperation of each homeowner and resident will be mutually beneficial and greatly appreciated!