I

DEFINITIONS

Section 1.

Lochmere Association shall mean and refer to Lochmere Association, a North Carolina non­profit corporation, its successors and assigns.

Section 2.

Lochmere shall mean and refer to that certain real property subject to this Declaration and such additions thereto as may hereafter be brought within the jurisdiction of Lochmere Association.

Section 3.

Common Area shall mean and refer to all real property within Lochmere owned by Lochmere Association for the common use and enjoyment of all Members.

Section 4.

Limited Common Area shall mean those lands not owned by Lochmere Association that serve only a limited number of Dwelling Units and which may include, but specifically are not limited to, driveways and walkways serving townhouse Sites, plats over townhouses and other cluster Dwelling Units, parking spaces, buildings or areas serving only specified Dwelling Units, and such other similar areas as may be designated by Lochmere Association. Limited Common Areas shall be maintained at the expense of the Owners of Dwelling Units served thereby and not at the expense of Lochmere Association.

Section 5.

Site shall mean any plot of land regardless of size as shown on a recorded subdivision map of Lochmere which has been approved by Declarant as required by this Declaration. A Site may provide for or contain one or more Dwelling Units as provided for in the Planned Unit Development Plan approved by the Town of Cary, including any additions thereto.

Section 6.

Undeveloped Site shall mean a site or an area of Lochmere yet undeveloped but intended to contain one or more residential units as provided in the general plan for Lochmere as approved by the Town of Cary, including any additions thereto.

Section 7.

Dwelling Unit shall mean a residence containing sleeping facilities for one or more persons and a kitchen. A Dwelling Unit may be attached to other Dwelling Units, or may be separated from other Dwelling Units.

Section 8.

Member shall mean and refer to every person or entity entitled to membership in Lochmere Association as provided in this Declaration.

Section 9.

Owner shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Dwelling Unit or Site which is a part of Lochmere, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

Section 10.

"Declarant" shall mean and refer to MACGREGOR DEVELOPMENT COMPANY and J.P. GOODSON ENTERPRISES, INC. as well as their successors and assigns, if such successors or assigns should acquire more than one Undeveloped Site from the Declarant for the purpose of development.

Section 11.

Board of Directors or Board means those persons elected or appointed to act collectively as the directors of the Lochmere Association.

Section 12.

Book of Resolutions shall mean and refer to the document containing rules and regulations and policies adopted by the Board of Directors.

Section 13.

VA shall mean Veterans Administration and HUD shall mean Department of Housing and Urban Development.

Section 14.

Bylaws mean the bylaws of Lochmere Association as they now or hereafter exist.

ARTICLE II

COMMON AREA OWNERSHIP AND MAINTENANCE

Section 1.

Owner Easements of Enjoyment:

Every Owner shall have a right of enjoyment in and to the Common Area which shall be appurtenant to and shall pass with the title to every Site or Dwelling Unit

Section 2.

Delegation of Use:

Any Owner may delegate his rights of enjoyment of the Common Area and facilities to the members of his family, his tenants, contract purchasers who reside on the property, or his guests.

Section 3.

The Board of Directors shall have the power to formulate, publish and enforce reasonable rules and regulations concerning the use and enjoyment of the Common Area. Such rules and regulations, along with all policy resolutions and policy actions taken by the Board of Directors, shall be recorded in a Book of Resolutions, which shall be maintained in a placed reasonably convenient to the Members and available to them for inspection during normal business hours.

Section 4.

Leasing Common Area Facilities:

The Board of Directors shall have the power to lease and use of any recreational facility for functions, lessons or special events, and to allow such lessee to charge admission or other fees for functions, lessons, or special events.

Section 5.

Operating Common Area Facilities. The Board of Directors shall have the power to limit the number of guests, to regulate hours of operation and behavior, and to curtail any use or uses it deems necessary for either the protection of the facilities or the peace and tranquility of adjoining residents.

Section 6.

Common Area Facilities Admission Fees:

The Association may charge reasonable admission and other fees for the use of any Common Area recreational facility.

Section 7.

Suspensions:

The Board of Directors shall have the power to suspend the voting rights and right to the use of any Common Area facility of a Class A Member or any person to whom that Member has delegated his right of enjoyment for any period during which any assessment against his Dwelling Unit or Site remains unpaid; and for a period not to exceed sixty (60) days, for any Infraction of its published rules and regulations.

Section 8.

Declarants Covenant to Convey Title to Common Area:

The Declarant hereby covenants for itself, its successors and assigns, that it will convey fee simple title to the property that will be designated Common Area and portions thereof to Lochmere Association, at such time as it conveys the first lot to some person other than Declarant within the specific area to be developed, as contained In a recorded subdivision plat or map, subject to easements of record for utilities, television antenna, drainage, access or other services and rights of access to the cemetery located thereon. Similarly, Declarant will convey to Lochmere Association properties that will be designated as Common Area which become parts of Lochmere as those portions are annexed in the future until all designated properties have been conveyed to Lochmere Association.