Section 6. Effect and Validity of Amendments: All amendments shall be effective from the date of proper recordation in the Wake County Registry. When any instrument purporting to amend the covenants, conditions and restrictions has been certified by the Board of Directors and recorded as provided In this Section, it shall be conclusively presumed that such instrument constitutes a valid amendment as to the Owners of all Dwelling Units or Sites in Lochmere.

Section 7. Exchange of Common Area: Notwithstanding any provision herein to the contrary, other than Section 4 of this Article IX, it is expressly provided that the Lochmere Association may convey to the Declarant, as well as any other Member, for fair market value any portion of the Common Area theretofore conveyed to the Lochmere Association, as provided In the Articles of Incorporation of the Lochmere Association. Any such conveyance shall be subject to prior VA or HUD approval. Upon such conveyance, the area conveyed shall cease to be Common Area and shall cease to be subject to the provisions of these covenants relating to the Common Area. Any area purchased by the Lochmere Association pursuant to the foregoing language shall become Common Area and subject to the provisions of these covenants relating to the Common Area, (The following hypothetical situation Is by way of illustration, but not of limitation: Due to a surveying error an undesirable drainage area is designated for the location of dwelling unit sites. Under this provision, the Declarant and the Lochmere Association exchange deeds so that the Dwelling Unit or Sites may be relocated within the Common Area and the area previously designated for Dwelling Units or Sites may be converted to Common Area.)

Section 8. Protective Covenants for Multi‑Unit Dwellings: Nothing herein shall affect the Declarant's right to establish, from time to time, appropriate specific additional covenants for the development and use of Sites for attached or detached Dwelling Units on single unit or multiple unit Sites in Lochmere.

Section 9. Conflicts In the event of any Irreconcilable conflict between the Declaration and the Bylaws of the Lochmere Association, the provisions of this Declaration shall control. In the event of an Irreconcilable conflict between this Declaration or the Bylaws of the Lochmere Association and Articles of Incorporation of the Lochmere Association, the provisions of the Declaration of the corporation shall control.

Section 10. Severability: Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.

ARTICLE X

DISSOLUTION OR INSOLVENCY OF THE LOCHMERE ASSOCIATION

Lochmere Association may be dissolved with the assent given In writing and signed by not less than two-thirds (2/3) of each class of members. Upon dissolution of the Association, other than incident to a merger or consolidation, the assets of Lochmere Association shall be dedicated to an appropriate public agency to be used for purposes similar to those for which Lochmere Association was created. In the event that such dedication is refused acceptance, such assets shall be granted, conveyed and assigned to any non-profit corporation, association, trust or other organization to be devoted to such similar purposes.

ARTICLE XI

VA AND HUD APPROVAL

As long as there is a Class B member, the following acts will require the prior approval for compliance with established VA and HUD guidelines: Annexation of additional properties, dedication of common area, and amendment of this Declaration of Covenants, Conditions and Restrictions, such approval to be not unreasonably withheld.

IN WITNESS WHEREOF, the undersigned MacGregor Development Company and J.P. Goodson Enterprises, Inc., by the Declarant have caused this instrument to be executed In their respective corporate names by their respective Presidents and those signatures to be attested and their respective seals to be affixed by their respective corporate secretaries all by order and authority duly granted by their respective corporate boards of directors and all other persons and/or corporate entities joining in the execution of these Master Covenants for the limited purpose of subjecting lots or parcels of land within Lochmere heretofore conveyed to them to these Master Covenants have hereunto set their individual hands and have adopted the word "SEAL" set opposite their hands as and for their personal seals or have caused this instrument to be executed in their corporate name by their duly elected and authorized officers all as authorized by their boards of directors all in the day and year first above written.

MACCREGOR DEVELOPMENT COMPANY

(Signed and sealed)

(Notarized)

J.P. GOODSON ENTERPRISES, INC.

(Signed and sealed)

(Notarized)