AINIF3k, ;ROSSANO' PROPERTY OWNERS ASSOCIATION, NC,PROFESSIONALLY MANAGED BY [Pm CORP, P.0, Box 550 o 2602 HENDERSONVILLE ROAD ARDEN, NC 28704

COMMUNITY RULES AND REGULATIONSJanuary 12, 2009 *

The unique appearance of Hamburg Crossing is created through carefully crafted architectural andlandscape plans (base plans) that blend with the beautiful surrounding geography. These rules andregulations are intended to maintain this "unified look" in order to preserve and enhance the value ofour properties. It is also desirable to afford individual owners an opportunity to add personal touchesthat complement, but do not overwhelm, the base plan nor create a look that is out of character with therest of the community. Some restrictions such as limiting attachments to building exteriors, fences,retaining walls, etc. are to prevent premature costly repairs or replacement. Others like the quantity andsize of non-plant ornamentation and plant height limitations promote good neighbor policy and preventobscuring views.

These new Rules also establish new Rental procedures, as provided for in the Second Amendment to theDeclaration of Covenants, passed by the Community and dated December 15, 2008. Exhibit A, and partof the Amendment, is a governing rental "Lease Agreement for Hamburg Crossing" which should beutilized by all owners. The "Affidavit of Owner and Lessee," Exhibit B, is an attachment to that Lease.Exhibits C G are also rental related.

All unit owners are required by the community Covenants to adhere to rules and regulations establishedby the Property Owners Association (POA) including their family members, guests and renters. ThePOA Board of Directors and its Committees will monitor owners' compliance, review written requestsfor changes and advise management of violations for enforcement. They will also work closely with thePOA's landscape contractor, monitoring performance and making recommendations for seasonalbeautification and longer-term improvements to the base plans.

I. GENERAL

1.1 Animals. No animals generally considered livestock may be kept on any lot. No commercialanimal raising or boarding of any type shall be permitted on any lot. Only animals which are generallyrecognized as domestic pets, not to exceed a total of three (3) per dwelling (exclusive of fish, gerbils, orother like caged pets, which are kept indoors at all times), may be kept and maintained upon a lot,however, in no event shall more than two (2) dogs be kept on any lot. All pets must be kept under thecontrol of their owner and kept in such a manner so as not to become a nuisance or any annoyance toother residents within the Subdivision. Any pet outside the boundaries of the lot of its owner shall be

*These Rules & Regulations replace those dated February 2008

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PRoFussioNALLY MANAGED BY 1PM CORP. 0 P.O. Box 580 2602 HENDERSONVILLE ROAD ARDEN, NC 28704

restrained by a leash. Specific regulations may be promulgated from time to time by the Association,which may further restrict the type of pets to be allowed within the Subdivision, including breeds andsizes of pets to be prohibited so as to avoid nuisances. Owners shall be responsible for collecting anddisposing of all pet excrement. Any failure of an owner to properly dispose of pet excrement shallsubject such owners to a reasonable fine as determined and assessed by the Association Board.

1.2 Pet Waste. No discarding of litter, pet waste or any other trash on the common propertyis allowed.

1.3 Changes to the Exterior. Any changes made to the exterior of a unit, permanent or temporary,must be approved by the Board of Directors, in advance, on a Request to Change Exterior form locatedin the Clubhouse (Exhibit H attached). This includes but is not limited to base plantings, pedestrianlighting, stepping stones, satellite dishes [up to 36" in diameter by NC law], exterior doors, exteriorgarage opener keypads, skylights, attic fans, and structural additions. Roof penetrations are the owner'sresponsibility to maintain, and the repair of any roof leaks caused by such roof intrusions will becharged back to the owner. No changes, including colors, to the exterior of building or other commonimprovements such as fences, retaining walls, parks, clubhouse, etc., may be made without the sameapproval by the Board, in advance. All exterior repairs and replacements, except for glass, screens andlocks, are the responsibility of the POA and all requests for such work should be made to the POA. (SeeDeclaration, Article IV, Sections 3 and 5, for further information.)

1.4 Motor Vehicles. All motor vehicles must be maintained in proper operating condition and in acondition so as not to be a nuisance by noise, exhaust emissions or otherwise. (See Declaration, Article IV,Section 8.)

1.5 Trash Receptacles. Trash containers must be stored inside and must not be put out until themorning of the regular trash collection day. The largest trash can a local trash service will lift or emptyis a 32 gallon can. Trash may be placed in trash containers with a tight lid or heavy, closed trash bags.Please contact the Town of Weaverville at 828-645-7116 to be set up with trash service or if you havetrouble with the trash pick up service. If you will be gone from your home for longer than 2 months,you may call the Town of Weaverville and have your service stopped while you are gone. The Town ofWeaverville's website is www.weavervilienc.org . (See Declaration, Article IV, Section 9.)

1.6 Trade or Business. No trade or business shall be carried on upon any lot or tract, but this restrictionshall not prohibit a home occupation which does not cause any noxious or offensive activity and whichdoes not significantly increase traffic within the property. (See Declaration, Article IV, Section 11.)

F)ROPERTY OWNERS ASSOCIATION!, jr\IC._

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F.1 Aryl • LJ SS1NG pnOPERTY OWNERS AS:f.1-30CIATiorldiNc.PROFESSIONALLY MANAGED BY IPM CORP. P.O. BOX 000 2602 HENDERSONVELLE ROAD ARDEN, NC 20704

1.7 Peaceful Enjoyment of the Property. No owner shall make or permit any disturbing noises in thebuilding by himself, his family, pets, tenants, employees, agents and visitors, nor do or permit anythingby such persons that will interfere with the rights, comforts or convenience of other owners. Noimproper, offensive or unlawful use shall be made of any unit or the common grounds and all valid laws,ordinances and regulations of all governmental bodies having jurisdiction shall be observed. (SeeDeclaration, Article IV, Section 4.)

1.8 Parking (See Declaration, Article IV, Section 7) :

a. Residents must garage their vehicles overnight with the exception that they may leave twonon-commercial, four-wheeled vehicles in the driveway immediately behind their garage. Overnightvisitors' vehicles may be left in the driveway immediately behind the resident's garage ona temporary basis. The overnight use of these driveways may not exceed two vehicles at any one time.

b. No overnight parking of vehicles will be allowed on the streets within the property, includingthe clubhouse parking lot and the resident cul-de-sacs, with the exception that visitors' vehicles mayuse the clubhouse parking lot, but must be identified by placing a POA guest permit placard on thedashboard. No parking at any time will be allowed in the shared turn-around areas at the ends of cul-de-sacs.

c. No parking of unlicensed, non-inspected, or inoperable vehicles will be allowed on theproperty. No parking of campers, trailers and boats will be allowed on the property, except within 24hours before and after such time as they are used. Residents may wash motor vehicles in the drivewayimmediately behind their garage.

II. CLUBHOUSE & POOL

The Reservation Chairman and Board of Directors will be monitoring these Rules and Regulations.Any resident seeing a possible violation of these Clubhouse & Pool Rules & Regulations is encouraged totake it upon his or herself to speak to the person(s) involved. The incident should also be relayed tothe POA Board President. Any reference herewith to "resident(s)" means adult owners, lessees orpersons having transferred rights to use these facilities. (See Declaration, Article In, Section 5, for furtherinformation.)

2.1 Residents MUST accompany and remain with guests at the clubhouse and pool facilities.

2.2 Residents are responsible for guests obeying the R&Rs.

2.3 Residents must pay for any repairs or damages caused by them or their guests.

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liAMBU 0S0 N PROPERTY OWNERS ASSOCIATION, INC.PROFESSIONALLY MANAGED BY IPM CORP. P.O. BOX 580 2602 HENDERSONVILLE ROAD ARDEN, NC 2E3704

2.4 Guests must NOT be given the code to lock/unlock the Clubhouse (see 2.1 above).

2.5 For Clubhouse and Pool functions residents MUST oversee and ensure that the Clubhouse is lockedup and the premises is put back in order as specified in Exhibit J attached, which is also posted in theClubhouse kitchen.

2.6 Smoking is prohibited in the Clubhouse and within the fenced pool area.

2.7 Animals are prohibited in the Clubhouse and within the fenced pool area.

2.8 Clubhouse functions permitted include a resident's social events and a resident's non-profit clubevents, but not permitted are a resident's company/corporate business or political events.

2.9 For Clubhouse functions, residents must make a reservation with the Clubhouse & PoolReservation Chairman and remit the required deposit. The Damage Deposit will be $100, plus anadditional $50 which will be kept by the Hamburg Crossing POA as a Facility Usage Fee. However,every unit may have two reservations in any calendar year (January through December) without payingthe $50 fee. The $100 Damage Deposit will be refunded after a satisfactory inspection of the premisesfor disorder and damages. This inspection will take place the reserved day or the following day.

2.10 Children under the age of 18 must be accompanied by a resident for any use of the Clubhouse,including the Exercise Room (observe posted rules in Exercise Room). Prohibited Clubhouse activitiesinclude running, rough play, wheeled vehicles, and balls intended to be thrown.

2.11 The Clubhouse and Exercise Room temperature is to be maintained as posted on the thermostats.

2.12 Never move the pool table.

2.13 Additional Pool Area Rules & Regulations

a. Children under 18 MUST be supervised by an adult at all times.

b. Young children in diapers are not allowed in the pool.

c. The following prohibitions must be observed: No running, diving, boisterous or rough play,wheeled toy vehicles, glassware, breakable items, loud music or electrical equipment of any kind.Balls or other toys that are intended to be thrown are not permitted.

d. There are no lifeguards or attendants on duty. Users swim at their own risk.

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1 A WI B SS G PROPERTY OWNERS AG.q0CIATION, INC.PROFESSIONALLY MANAGED B y IPM C( )HR o RU. Box 560 0 2602FiENDFRSONVILLE ROAD ° ARDEN, NC 28704

e. Exterior doors from the Clubhouse must be kept closed except to pass through.

f. During an electrical storm, to avoid risk of death or injury, leave the pool area.

III. LANDSCAPING

This section is divided into three sub-sections: General, Residential Planting, and Non-PlantOrnamentation and Furniture.

3.1 General.

a. December Decorations. Residents may decorate for December holidays with lights on the unitdoor and/or patio fence, holiday wreaths on the front door and/or developer installed patio and garageoutdoor light fixtures, and garlands on patio fences. Holiday lights may be turned on from 4:00 PM to11:00 PM. Decorations may be put up on or after the day after Thanksgiving and must be taken downon or before January 7. The following decorations are prohibited: inflatables; penetrations to thebuilding, doors, roof or walls; and items on the roof and gutters.

b. Retaining Walls and Berms. Climbing on the retaining walls and related berms surroundingthe community property is strictly prohibited. Owners are responsible for instructing their guests(particularly children) and privately hired workmen of this regulation and ensuring that there are noviolations by those parties. Exceptions are for the removal of existing plantings, as approved by theBoard.

c. Signs. No sign, advertisement, notice or other lettering shall be exhibited, inscribed, painted,or affixed by any owner on any portion of the exterior or interior (if visible from the outside) of anylot or on any portion of the common elements. As an exception hereto:

(1)One (1) sign for owner's names may be permitted but must be applied for and approved bythe Association in accordance with Article IV, Section 3 of the Declaration of Covenants; and

(2) One (1) sign offering the Unit for sale or rent or identifying contractor and/or lender notexceeding three (3) square feet in size may be placed by the owner within a dwelling window. Notwithstanding the foregoing, the Association Board may, in its exclusive discretion, erect signs on theProperty for identification or for such other purposes as the Board finds necessary. (See Declaration, FirstAmendment 1/16/2006, p. 2, at 42, Article IV, Section 10, for further information regarding signs, American flagsand no political signs.)

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AMB SEA N G PROPERTY OWNERS ASSOCIATION,PkOFFa3SIONALLY MANAGED B y IPM CORP. P.O. BOX 580 2602 HENDE Fv.-3oNvil i.E. ROAD ARDEN, NC 28704

3.2 Residential Planting.

a. Zones. Residential Planting areas include property deeded to the owner and limited commonareas. For the purpose of this section, and making the areas surrounding each residential unit moredefinable, these areas have been divided into three easily recognized zones:

Zone 1: The patio, entry way, and mulch beds inside both the patio fence andsidewalk.

Zone 2: The mulch beds outside of, and abutting, the patio fence and sidewalk.Zone 3: The grass, mulch beds and trees beyond Zone 2 but still relatively

adjacent to the unit.

In Zone 1 owners have the sole responsibility for the plantings and maintenance in that area. ' ThePOA's hired landscape contractor will not interfere with those mulch beds other than to mulch themannually. In the Landscaping sub-sections that follow, you will find that planting limitations in thisZone are few.

In Zones 2 and 3, whether allowed or approved in writing in advance by the Board of Directors,owners who have made additions or changes to the mulch beds and landscape areas are responsiblefor the maintenance of those changes but the P0A's contractor will maintain the original plantingsinstalled by the Developer, or the POA.

b. Request to Change Exterior Form. Should an owner wish to make additions and/or changes toany residential landscaping area adjacent to a unit, other than those approved in this Section, or addnon-plant ornamentation and furniture, other than those approved in Section 3.3 below, the owner mustobtain written approval from the Board of Directors on a Request to Change Exterior form (Exhibit Hattached) prior to the start of any changes. These individual requests, including sketches, if helpful,must be in keeping with the "unified look" of the Community in order to be considered. Processing ofan application will take from two to four weeks, depending on the nature of the change.

Generally, within Zone 1, and in compliance with the Rules in this Section, owners may makewhatever plant additions or changes they wish, including replacing all the plants inside the patio fencewith mulch or other porous material. Within Zone 2 prior written approval is required, with theexception of Section c. (1) & (2), below. No changes of any kind may be made in Zone 3 and othercommon areas such as hillsides, fences, retaining walls, open spaces, etc. without prior written approval.

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HAME ENA"S2 PFP rarrY OWNERS ASSOCIATION , INC. _ —

PROFESSIONALLY MANAGED BY iPM CORP. P.O. Box 5B0 2602 HENDERSONVILLE ROAD ARDEN, NC 28704

Repeated for emphasis, whether allowed or approved in writing, throughout Zones 2 and 3owners are responsible for the maintenance of any owner changes made to the mulch beds andlandscape areas, including prompt removal of dead plantings.

c. Plants. Moderation in plant quantity, variety and size (less than 2 ft. in height) is encouraged.Not allowed are plantings on or against exterior walls, patio fences or retaining walls that will causepremature degradation to the property. Any change in Zone 3 requires prior approval. No fruits orvegetables are allowed. No artificial flowers or plants are allowed, except within the patio fence area,no higher than the fence, and as a door decoration.

(1) Seasonal Flowering Annuals (new plants every year). Zones 1 & 2: Allowed.

(2) Flowering Perennials (fade in winter, grow in spring): Zones 1 & 2: Allowed.

(3) Other Plants and Shrubs. Zone 1: Allowed. Zone 2: Requires prior approval,

(4) Trees: All zones: Requires prior approval.

(5) Plants in Decorative Pots. Zone 1: Allowed, but must not restrict access. Zone 2:Requires prior approval.

d. Mulch and Mulch Beds. Zone 1: Within the patio fence plants may be removed and replacedwith mulch or other porous, material. All Zones: Except as noted here and in Section 3.2, c. Plantsabove, no change to the mulch beds, including additions, moving, substitutions, edgings, or removal ofbase plantings is allowed without prior approval. Disturbed mulch must be repaired and redistributedafter owner changes are made. No change to the type of mulch used, which is to be uniform in colorand texture throughout the community, is allowed.

e. Watering. All Zones: Watering/sprinkling systems were not installed at Hamburg Crossingand are not allowed. If watering is desired, it is up to the owner to do so, at the owner's expense.

f. POA's Landscape Contractor. No owners, guests or renters will interfere with or giveinstructions to the POA's landscape contractor. Any questions should be directed to either the Member-at-Large on the Board of Directors or our representative at the POA's management company (see page12) and not the POA's landscape contractor.

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A M BUR- Nr.g r-3 R01:9 ERTY OVVNERS ASSOCIATION, INC. . -PROFESSIONALLY MANAG D BY IPM COFRP. E3ox 580 5 2602 1-IENDERSONVILLE RoAD 5 ARDKN, NC 28704

g. Non-POA Landscape Contractors. No owners, guests or renters shall employ an individual,outside lawn maintenance company or contractor to perform any work in Zones 2 and 3 withoutwritten approval from the Board.

3.3 Non-Plant Ornamentation and Furniture

a. Chimes, Sprinkler Systems, and Any Device That Generates Disturbing Noise. All Zones: Notallowed.

b. Birdfeeders. All Zones: Except for hummingbird feeders, not allowed for safety reasons dueto visiting bears.

c. Hummingbird Feeders. Zone 1: Allowed. Zone 2: Allowed only with base in mulch bedand not interfering with landscape maintenance.

d. Pennants and Flags. Zone 1: Not allowed except for an American flag which may bedisplayed inside the patio fence area in a free-standing holder or from a holder affixed to a patio fencepost. The flag pole may not exceed, in height, the lowest roof peak of the unit. Zones 2 & 3: Notallowed.

e. Plant Stands and Trellises: Zone 1: Allowed only within patio fence area and not exceeding 2ft. in height. Otherwise, requires prior approval. Zone 1 Requires prior approval. Zone 3: Not •

allowed.

f. Political Signs. All Zones: Not allowed. (See Section 3.1, c. (2) above.)

g. Shepherd Hooks. Zones 1 and 2 allowed but only as follows: No more than two (2) Shepherdhooks, 3 ft. to 6 ft. in height, with no more than double hooks on each, with bases placed in mulch bedsand not interfering with landscape maintenance. Otherwise, requires prior approval.

h. Bird Baths, Fountains and Statuary. Zone 1: Allowed only within patio fence and notexceeding 2 ft. in height. Otherwise, requires prior approval. Zone 2: Requires prior approval.Zone 3: Not allowed.

i. Furniture. Zone 1: Allowed only within patio fence area, but must not restrict access. Colorshould be an earth tone, black, or dark green and up to moderate in size. White furniture is not allowed

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k. Open Fires. All zones: Not allowed.

FAIN/BURG '-'e_ PROPERTY OWN rum ASSOCIATION, . - PROFESSIONALLY MANAGED BY [PM CORP. P.O. Box 580 2602 FIENDERsoNviLLE ROAD ARDEN, NC 2E3104

but any existing white furniture on 12/1512008 is grandfathered until it is replaced. Umbrellas must bean earth tone or dark green in color, and non advertising. Otherwise, requires prior approval.Zones 2 & 3: Not allowed.

j. Patio Gates and Front Door Screen Doors: All Zones: Require prior approval.

W. RENTALS(Per Second Amendment to Declaration of Covenants, Conditions and

Restrictions dated 12/15/2008 and Exhibits A-G attached)

4.1 Rental Cap. No more than 16 units (20% of the 82 units) at Hamburg Crossing may be leased at anyone time. The Board of Directors shall maintain 1) a Registry of Rental/Leased Units (see Exhibit Fattached) and 2) a Rental Waiting List when the number of units rented reaches 16 (see Exhibit Gattached).

4.2 Occupancy.

a. Units may be leased only in their entirety; no fraction or portion may be leased.

b. Only one family may occupy a lot as a principal residence at any one time. Lots shall not beoccupied by two or more persons not related by blood, marriage, lawful adoption, or who are notsubstantively structured like an integrated family unit. (Per Declaration of Covenants, Article W, Section 2,as amended 12/15/08 and, for further information, Exhibit E attached.)

4.3 Authorization to Rent/Lease. Owners [referred to as "Lot Owners" in the Declaration] desiring torent their units must first submit to the Board of Directors a Request to Lease Form for approval. (SeeExhibit C attached.) After approval the Owner will have (90) days to present a lease to the Board forapproval or lose the ability to lease, if the cap has been met. The same applies to an owner already approvedto lease who is seeking a new tenant. (See Second Amendment to the Declaration, page 3, #5.)

4.4 Minimum Lease Length: All Leases must be for a term of not less than one (1) year, unlesspermitted in writing by the Board of Directors, which permission is in the sole discretion of the Board.

4.5 Required Information for Lessee. Prior to the signing of the Lease Agreement and Affidavit theOwner, or the Owner's agent, must give the prospective Lessee a copy of each of the following to whichall Leases and Lessees are subject:

a. Declaration of Covenants, Conditions and Restrictions

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IAMU PROPETZ OwNERs AssociATION,Ni2OFESSIONALLY MANAGED DY [PM CORP, * P.O. BOX 580 * 2602 HENDERSONVILLE ROAD * ARDEN, NC 28704

b. Bylawsc. Rules and Regulations (also called "Community Rules and Regulations")

4.6 Required Lease Agreement and Affidavit Forms.

a. Governing Hamburg Crossing Lease Agreement. All Owners and Lessees shall execute theHamburg Crossing Lease Agreement form. This Hamburg Crossing Lease Agreement (Exhibit Aattached), which is also Exhibit A to the Second Amendment to the Declaration of Covenants, asamended 12/15/08), supersedes any other agreements signed by Owner and Lessee.

b. Affidavit of Owner and Lessee. All lease agreements must include an executed HamburgCrossing Affidavit of Owner and Lessee (see Exhibit B attached). Particular clauses contained thereinare:

(1) Subletting: None.

(2) Rules & Regulations: Lessee must have read and accepted the terms of the Rules &Regulations, including the consequences for not abiding by them. These consequences may includeeviction.

(3) Insurance: At least ten (10) days before occupancy the Owner and Lessee must provide theAssociation with copies of the following insurance coverage on the unit being leased:

(a) Owner -- a current Dwelling Insurance Policy (for Owners withTenants) which indicates liability coverage of no less than $100,000.

(b) Lessee — a current HO-4 Tenants Insurance Policy or pre-paidbinder which indicates liability coverage of no less than $100,000.

(4) Mandatory Lessee Orientation: The Lessee must attend a mandatory Orientation andCommunity Rules and Regulations review meeting to be conducted by the Board or its assignee.

4.7 Written approval of Board on Lease. A Lease cannot become effective until a fully executed copyof the Lease Agreement, with signed Affidavit of Owner and Lessee, is approved by the Board in writingon the Lease. The Lease must be delivered at least fifteen (15) days before the effective date of the Leaseand the Board will respond within five (5) business days of receipt of same. (See Exhibit D attached.)

4.8 Notification of Move-in Date. The Board must be notified of the move-in date at least fifteen daysbefore move-in takes place.

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HAMBLIFZG SSA NG PROPERTY (31A1CNIERS Al3S'OCIATION, INC.PRoEussic)NAi Ey MANAGED BY1PM CORP. o P.O. Box 580 2602 HENDERSONVIL LE RoAD ARDEN, NC 28704

4.9 Use of Amenities by Lessee. During the time a unit is leased, the privileges of using the amenitiesof HC are transferred from the Owner to the Lessee. This clause supersedes any lease agreements orclauses.

4.10 Responsibility for Unit. The Owner continues to be responsible for the unit and for any and alldamage or violations of the Declaration and Rules and Regulations by the Lessee. The Owner, not theLessee, continues as the voting member of the Property Owners Association for the unit.

4.11 Changes to a Lease. All Owners leasing units shall advise the Board in writing of any and allchanges in the status of a lease, including vacancies and the renewal of leases, within 14 days of theevent.

4.12 Penalties for Non-Compliance. Any Owner or his agent who does not comply with these Rulesand Regulations will be subject to financial penalties up to $100.00 per day until full compliance.Unpaid penalties will be recorded as a lien against the property. The Owner will be responsible forall costs incurred by the Association in connection with these actions.

4,13 Hardship Exemptions to 16 Unit Rental Cap: The Board shall have the option, in its solediscretion, to allow the leasing of more than 16 units at any one time to avoid undue hardship on thepart of an Owner. Such an Owner shall make written application to the Board, setting forth thepertinent circumstances. An undue hardship may include, by way of example and not limitation:

a. When an Owner must relocate and cannot sell the lot within ninety (90) days from thedate the lot was placed on the market, for at least the current appraised market value, having madereasonable efforts to do so.

b. When the Owner dies.

c. When the Owner is required by his or her employer to relocate temporarily,and intends to return to reside in the unit.

V. PROCEDURES

5.1 Rental Procedures, Exhibit D defines procedures required in order to rent/lease a unit.

5.2 Compliance with the Rules & Regulations. Voluntary compliance is anticipated. If you believeyou have an existing situation that requires special consideration a Request to Change Exterior Form(see Exhibit H attached) should be submitted to the Board explaining the special circumstance and therelief sought. Owners who are in violation will be given written notification of specific defaults and atime period for compliance before a fine is levied. (See First Amendment to the Declaration ofCovenants, p. 2, #6.)

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;II SSING PROPERTY OWNERS ASSOCIATION, II\JC,PROFESSIONALLY MANAGED BY IPM CORP. o P.O. Box 580 2602 FIENDF.RSONVU„E ROAD ARDEN, NC 28704

VI. ATTACHMENT'S

Exhibit A. Required Hamburg Crossing Lease Agreement (Also Exhibit A to the SecondAmendment to the Declaration of Covenants, Conditions and Restrictions datedDecember 15, 2008)

Exhibit B. Affidavit of Owner and Lessee (required attachment to any rental ease)

Exhibit C. Request to Lease Form

Exhibit D. Rental Procedures

Exhibit E. October 27, 2008, HCPOA Cover Letter to the Second Amendment to theDeclaration of Covenants, Conditions and Restrictions

Exhibit F. Registry of RentaVLeased Units

Exhibit G. Rental Waiting List

Exhibit H. Request to Change Exterior

Exhibit I. Omitted. Too similar to 'one' in Roman numerals.

Exhibit J. Clubhouse Event Cleanup Regulations

Currently the management company for Hamburg Crossing is:

IPM Corporation, Community Association DivisionP.O. Box 580Arden, NC 28704-0580www.ipm-corp.comTel: (828) 650-6850Fax: (828) 654-8270

Currently the members of the Board of Directors of Hamburg Crossing POA are:President: Jim TuckerVice President: Todd WeaverSecretary: Marty BiemoltTreasurer: George BeattyMember at Large: Carol Young

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HAMBURG CROSSING RULES AND REGULATIONSEXHIBIT A

STATE OF NORTH CAROLINACOUNTY OF BUNCOMBE

LEASE AGREEMENT FOR HAMBURG CROSSING

THIS AGREEMENT is made this day of , 20_, by and between (hereinafter called "Lessor"), and hereinafter called"Lessee");

WITNESSETH

That in consideration of the mutual covenants hereinafter set forth, the parties do hereby covenantand agree as follows:

1. PREMISES LEASED, TERM OF LEASE, AND OCCUPANCY. Lessor does hereby rentand lease to Lessee Planned Community Lot # at in Hamburg CrossingPlanned Community (hereinafter the "Premises"), for a term of not less than a year (12 months)commencing on , 20 and ending on , 20 midnight. EitherLessor or Lessee may terminate the tenancy at the expiration of the Initial Term by giving written notice tothe other at least days prior to the expiration date of the Initial Term. In the event such written noticeis not given or if the Lessee holds over beyond the Initial Term, the tenancy shall automatically become a to tenancy upon the same terms and conditions contained

period periodherein and may thereafter be terminated by either Lessor or Lessee by giving the other days written

notice prior to the last day of the then current period of the tenancy.

• 2. RENT. Lessee covenants and agrees to pay to Lessor at a monthly rent equal to $ promptly on the first day of each rental month inadvance during the term of this Lease. The first rental payment, which shall be prorated if the Initial Termcommences on a day other than the first day of the applicable rental payment period, shall be due on and shall constitute payment for the period ending in the

date dateamount of $

3. LATE PAYMENTS AND RETURNED CIIECKS. Time is of the essence in this Agreement,and if Lessor elects to accept rent after the day of the month, a late charge, upon request of Lessor,of $ may be charged as additional rent. In the event Lessee's rent check is dishonored bythe bank, Lessee agrees to pay Lessor $ as a handling charge and, if appropriate, the latecharge. Returned checks shall be redeemed by cash, a cashier's check, certified check, or money order. Ifmore than two checks are returned, Lessee agrees to pay all future rents and charges in the form of cash, acashier's check, a certified check, or money order.

4. SECURITY DEPOSIT. The Lessee shall deposit with the Lessor the sum of to secure the faithful performance of the Tenant's promises and duties contained herein (the

Dungan Law Firm, P.A. 1989, 2008 -1-

'Security Deposit"). The Lessor will deposit the Security Deposit in a Trust Account with

having an address of to secure the performance of the Lessor's obligation to refund the Security Deposit as herein provided.

The Security Deposit shall be held, and upon the termination of the tenancy be returned to Lesseewithin thirty (30) days after the unit is vacated if:

CO The lease term has expired or this Agreement has been terminated by both parties;

(ii) All monies due Lessor by Lessee have been paid; and

(iii) The Premises are not damaged and are left in the same condition as exists at the execution ofthis Lease, normal wear and tear excepted.

The deposit may be applied by Lessor to satisfy all or part of Lessee's obligations, and suchapplication shall not prevent Lessor from claiming damages in excess of the deposit. Lessee agrees not toapply the deposit to any rent payment and also agrees to pay $ for re-keying locks if all keysare not returned. Lessee acknowledges receipt of keys.

In the event that any part of the deposit has been used by Lessor in accordance with the terms of thisAgreement or applicable law, Lessee shall upon demand immediately deposit with Lessor a sum equal to theamount so applied by Lessor so that Lessor shall have the full deposit on hand at all times during the leaseterm including any extension, renewal or holdover term. In the event of any permitted assignment orsublease of this Agreement by Lessee, the deposit shall be deemed to be held by Lessor as a deposit madeby Lessee's assignee and Lessor shall have no further liability to return such deposit to the assignor.

THE SECURITY DEPOSIT MAY, IN THE DISCRETION OF EITHER IHE LESSOR ORTHE AGENT, BE DEPOSITED IN AN INTEREST-BEARING ACCOUNT WITH l'HE BANK ORSAVINGS INSTITUTION IDENTIFIED ABOVE. ANY INTEREST EARNED UPON THESECURITY DEPOSIT, WHETHER THE SECURITY DEPOSIT IS DEPOSITED IN A TRUSTACCOUNT OR HELD OTHERWISE, SHALL ACCRUE FOR THE BENEFIT OF, AND SHALLBE PAID TO, THE LESSOR, OR AS THE LESSOR DIRECTS. SUCH INTEREST, IF ANY, MAYBE WITHDRAWN BY LESSOR OR AGENT FROM SUCH ACCOUNT AS IT ACCRUES ASOFTEN AS IS PERMITTED BY THE TERMS OF THE ACCOUNT.

5.ASSOCIATION IS THIRD PARTY BENEFICIARY. Lessee and Lessor acknowledge thatHamburg Crossing Property Owners' Association, Inc., a North Carolina non-profit corporation,(hereinafter called the "Association") is a third-party beneficiary of the promises made in this LeaseAgreement.

6.COMPLIANCE AND ENFORCEMENT BY ASSOCIATION. Lessee shall comply strictlywith the Declaration of Planned Community (hereinafter the "Declaration"), the By-Laws of the Association(hereinafter the "By-Laws"), and with the Rules and Regulations adopted pursuant thereto, as any of theforegoing may be lawfully amended from time to time. Lessee shall control the conduct of his or her familyand guests in order to assure compliance with the foregoing and shall indemnify and hold Lessor and theAssociation harmless for any such person's failure to comply. Lessee acknowledges that the violation byLessee or any occupant or person living with Lessee of any provision of the Declaration, By-Laws, orthe Rules and Regulations adopted thereunder shall constitute a default under this Lease.

0 Dungan Law Firm, P.A. 1989, 2008-2-

In order to enforce the provisions of this Lease Agreement, the Association may bring an actionagainst the Lessor or Lessee for damages or injunctive relief or may impose any other sanction authorizedby the Declaration or By-Laws or available at law or in equity including, without limitation, all remediesavailable to a landlord upon breach or default of a lease (including eviction). Failure by the Association toenforce any of its rights shall not be deemed a waiver of the right to do so thereafter.

Lessor hereby delegates and assigns to the Association, acting through the Board of Directors, thepower and authority of enforcement against the Lessee for breaches resulting from the violation of theDeclaration, By-Laws, and the Rules and Regulations adopted pursuant thereto, including the power andauthority to evict the Lessee on behalf and for the benefit of the Lessor, in accordance with the termsthereof. In the event the Association proceeds to evict the Lessee, any costs, including attorney's fees andcourt costs, associated with the eviction shall be specially assessed against the unit and the Lessor, suchbeing deemed hereby as an expense which benefits the Lessor.

Lessor hereby represents that Lessee has been given a copy of Declaration, By-laws and the Rulesand Regulations of Hamburg Crossing Property Owners' Association, Inc., that Lessee has read them, andthat Lessee is bound by them.

If a Lessee or a person living with the Lessee, violates the Declaration, By-Laws or a Rule orRegulation for which a fme is imposed, such fine may be assessed against the Lessee; provided, however, ifthe fine is not paid by the Lessee within the time period set by the Board of Directors of the Association,Lessor shall pay the fine upon notice from the Association of Lessee's failure to pay the fine, Unpaid fmesshall constitute a lien against Lessor's unit.

7. PAYMENT OF ASSESSMENTS. Upon written request by the Association, Lessee shall payto the Association all unpaid annual assessments and special assessments, as lawfully determined and madepayable during and prior to the term of this Agreement and any other period of occupancy by Lessee;provided that Lessee need not make such payments to the Association in excess of, or prior to the due datesfor, monthly rental payments unpaid at the time of the Association's request. All payments made under thisParagraph shall reduce, by the same amount, Lessee's obligation to make monthly rental payments. IfLessee fails to comply with the Association's request to pay assessments, Lessee shall pay to the Associationall late or delinquent charges, interest, and costs of collection including, but not limited to, reasonableattorney's fees actually incurred, to the same extent Lessee would be required to make such payments to theAssociation if Lessee were the owner of the Premises during the term of this Agreement and any otherperiod of occupancy by the Lessee.

8, POSSESSION. Lessor shall not be liable for damages to Lessee for failure to deliver possessionof the Premises to Lessee at the commencement of the term if such failure is due to no fault of the Lessor.Lessor shall use his or her best efforts to give possession of the Premises to the Lessee at the beginning ofLessee's term.

9. MAINTENANCE AND INDEMNIFICATION. Lessee accepts Premises in the condition inwhich they are now and as suited for the use intended by Lessee. Lessor shall not be required to make anyrepairs or improvements on the Premises, except that on written notice from the Lessee of any defectrendering the Premises unsafe or untenantable, Lessor shall remedy such defective condition. Lessee shallcomply with all notices and other requirements, including the Declaration, By-Laws and Rules andRegulations of the Association concerning maintenance and repair. Lessee shall be liable for and shallindemnify and hold Lessor harmless from any damage or injury to the person or property of Lessee or any0 Dungan Law Firm, P.A. 1989, 2008

-3-

other person if such damage or injury be due to the act or neglect of the Lessee or any other person in hiscontrol or employ, or if such damage or injury be due to any failure of Lessee to report in writing to Lessorany defective condition which Lessor would be required to repair under the terms hereof on notice fromLessee. Lessee releases Lessor from liability for and agrees to indemnify Lessor against all losses incurredby Lessor as a result of (a) Lessee's failure to fulfill any condition of this Agreement; (b) any damage orinjury happening in or about the Premises to Lessee's invitees or licensees or such person's property; (c)Lessee's failure to comply with any requirements imposed by any governmental authority and as provided inParagraph 6 hereof; and (d) any judgment, lien, or other encumbrance filed against the Premises as a resultof Lessee's action. Lessor shall not be liable for damage to Lessee's property of any type for any reasonexcept where such is due to Lessor's negligence.

10. USE. Lessee shall not use or allow the Premises to be used for any disorderly or unlawfulpurposes or in any manner offensive to others, and Lessee shall comply with all applicable laws andordinances. Lessee• shall not remodel or make any structural changes to the Premises, nor shall Lesseeremove any fixture therefrom.

Lessor transfers and assigns to Lessee for the term of the lease any and all rights and privileges thatLessor has to use the common elements of the Development, to include, but not be limited to, the use of anyand all recreational facilities or other amenities.

11.UTILITIES. All utility bills for services separately metered or billed to the Premises during thelease term shall be paid by . To avoid any freeze damage, heat must bemaintained at not lower than 55 degrees F during the winter.

12. PETS. To the extent that Lessor permits Lessee to keep any pets, Lessee shall be permitted tokeep only those common household pets which are permitted by the Declaration, By-Laws, and Rules andRegulations of the Association.

13.VEHICLES; PARKING. The Lessee agrees to park motor vehicles in the areas designated bythe Board of Directors of the Association. Only passenger vehicles shall be parked on common areas,unless placed upon a portion of the Common Elements or Limited Common which is designated for suchpurpose, or which may be designated from time to time for the storage of such items. No more than twovehicles per Unit may be parked on Association property. "Passenger vehicles" specifically excludecommercial trucks, motorcycles, recreational vehicles, boats, boat trailers, trailers, tractors, motor homesand commercial vans.

14. ASSIGNMENT AND SUBLEASING. Lessee shall not assign this Lease or sublet.

15. CASUALTY. If the Premises are rendered untenantable by fire, storm, earthquake or othercasualty, this Lease shall terminate as of the date of such destruction or damage, and rental shall beaccounted as of that date.

16. ACCESS. Lessor, his or her agents, and the agents of the Association shall have the right ofaccess to the Premises, upon notice to Lessee, between the hours of 8:00 a.m. and 8:00 p.m., for inspectionand maintenance. In case of emergency, such parties may enter at any time to prevent property damage orpersonal ,injury.

17. DISCLOSURE. The owner of record of the Premises or person authorized to act for and onbehalf of the owner for the purpose of service of process and receiving and receipting for demands and

(D Dungan Law Firm, P.A. 1989, 2008-4-

notice is: (owner) (agent)

(address)

The person authorized to manage the Premises is:

(address)

18.HOLDOVER. Lessee shall not remain in possession of the within-leased Premises after theexpiration of this Lease. Any holding over of the within-leased Premises by Lessee after the expiration ofthis Lease without a written renewal thereof or written consent from Lessor or Lessor's agents and the Board

of Directors of the Association, shall not constitute a tenant-at-will interest on behalf of Lessee, but Lesseeshall become a tenant at sufferance. There shall be no renewal whatsoever of this Lease by operation oflaw.

19.SURRENDER. Whenever under the terms hereof Lessor is entitled to possession of Premises,Lessee shall at once surrender same to Lessor in as good condition as at present, natural wear and tearexcepted, and Lessee shall remove all of Lessee's effects therefrom. Lessor may forthwith re-enter Premisesand repossess himself or herself thereof and remove all persons and effects therefrom, using such force asmay be necessary without being guilty of forcible entry or detainer, trespass, or other tort.

20. ABANDONMENT. If Lessee removes or attempts to remove property from the Premises otherthan in the usual course of continuing occupancy without first having paid Lessor all monies due, thePremises may be considered abandoned, and Lessor shall have the right without notice, to store or disposeof any property left on the Premises by Lessee. Lessor shall also have the right to store or dispose of any ofLessee's property remaining on the Premises after termination of this Agreement. Any such property shallbe considered Lessor's property, and title thereto shall rest in Lessor. Lessor shall have the right to re-rentthe Premises after Lessee abandons same.

21. DEFAULT. Any breach or violation of any provision of this Agreement by Lessee shall giveLessor the right to terminate this Agreement or to take possession and hold Lessee liable for the remainderof the term. Should possession be obtained, Lessor, at Lessor's option, may re-rent the Premises as Lessee'sagent at the risk and cost of the defaulting Lessee, whose default shall not relieve him or her of liability forthe difference between the rent herein reserved and the rent actually received by Lessor during the termremaining after such default occurs.

22. CONDEMNATION. In the event that the Premises or any part thereof (other than commonelements, the taking of which does not prevent continued occupancy of the Premises) is taken by anyauthority exercising the power of eminent domain, this Lease shall terminate as of the date possession shallbe taken by the condemnor. Lessee waives all claims against Lessor or any condemning authority by reasonof the complete or partial taking of the Premises, and shall not be entitled to receive any part of any awardwhich Lessor may receive, hereby quitclaiming all interest therein to Lessor.

23. SUBORDINATION OF RIGHTS. Lessee's and Lessor's rights shall be subject to all rightsof the Association and any bona fide mortgage or deed of trust which is now or may hereafter be placedupon the Premises by Lessor.

(D Dungan Law Finn, P.A. 1989, 2008

-5-

24. ENTIRE AGREEMENT AND WAIVER. This Agreement contains the entire agreement ofthe parties, and no representation, inducement, promises or agreements not contained herein shall be of anyforce or effect. No failure of Lessor to exercise any power given Lessor hereunder, and no custom orpractice of the parties at variance with the terms hereof shall constitute a waiver of Lessor's right to demandexact compliance with the terms hereof.

25. REMEDIES CUMULATIVE. All remedies under this Agreement or by law or equity shallbe cumulative. If suit for any breach of this Agreement establishes a breach by either Lessor or Lessee, theparty found in breach shall pay to the other party all expenses incurred in connection therewith, including,but not limited to, attorney's fees,

26. APPROVAL OF BOARD OF DIRECTORS. This Agreement is subject to the approval ofthe Board of Directors of the Association and shall become effective only upon such written approval.

27. ILLEGAL ACTIVITIES. The conduct of any unlawful activities on the Premises shallconstitute a breach of this Agreement.

28. SUCCESSORS. This Agreement shall inure to the benefit of and shall bind the heirs,successors, personal representatives and assigns of all parties to this Agreement,

29. SPECIAL STIPULATIONS.

a. Lessee is obligated to abide by the winterization procedures as established by the Board ofDirectors from time to time (reference Article Section ).

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first abovewritten.

LESSOR: (signature)

Name: (please print)

LESSEE: (signature)

Name: (please print)

LESSEE: (signature)

Name: (please print)

Approved

Not Approved

This day of , 2O.

By:For the Board of Directors

0 Dungan Law Firm, P.A. 1989, 2008-6-

HAMBURG CROSSING RULES AND REGULATIONSEXHIBIT B

HAMBURG CROSSING POA, Inc.

AFFIDAVIT OF OWNER AND LES SEE

This Affidavit is a mandatory part of the Lease Agreement between the undersignedOwner(s) [hereafter "Owner"] of the residential property known as

located in Hamburg Crossing, Weaverville, Buncombe County, North Carolina, 28787 and theundersigned Lessee(s) [hereafter "Lessee]. Said Lease is a ( ) month lease.

This Affidavit supersedes any clause in said Lease, said property being subject to theHamburg Crossing Property Owners Association [hereafter "P0A1 and its Board of Directors[hereafter . "Board"]. By signing below, all parties attest to the following:

1. Lessee has been given a copy of the 1) Rules and Regulations, 2) Declaration ofCovenants, Conditions and Restrictions, and 3) Bylaws for Hamburg Crossing POA, Inc.Furthermore, Lessee has read the Rules and Regulations and understands the content andagrees to abide by them.

2. Owner shall deliver to IPM Corporation, the POA's property management company, forwritten approval a fully executed copy of said Lease, including this executed Affidavit,at least fifteen (15) days before the effective date of such proposed Lease. Within five (5)business days of receiving the proposed Lease the Board shall give the Owner written noticeas to whether the proposed lease is approved.

3. All lots shall be used for single-family residential purposes only and common recreationpurposes auxiliary thereto and for no other purpose. Only one family may occupy a lot as aprincipal residence at any one time. Lots shall not be occupied by two or more persons notrelated by blood, marriage, lawful adoption, or who are not substantively structured like anintegrated family unit.

4. Owner and Lessee agree that there can be no subletting of residences located at HamburgCrossing.

5. Insurance:

a) At least ten (10) days before occupancy of premises by Lessee,Owner shall provide the Hamburg Crossing POA with a currentDwelling Insurance Policy (for owners with tenants) which indicatesliability coverage of no less than $100,000.

b) At least ten (10) days before occupancy of premises by Lessee,Lessee shall provide the Hamburg Crossing POA with a current HO-4Tenants Insurance Policy or binder which indicates liability coverageof no less than $100,000.

Page 1 of 2

Hamburg Crossing POA, Inc.Affidavit of Owner and LesseeMandatory for any Lease Agreementfor a Hamburg Crossing Property

6. Large trucks and vans are not permitted on driveways at Hamburg Crossing. Therefore,Lessee agrees to inform Lessee's moving carrier that moving trucks and/or vans can onlybe parked on the street and not on driveways. Exceptions will not be made.

7. Lessee agrees to attend, and sign off on, a required Orientation and Review of CommunityRules and Regulations, Declaration of Covenants and Restrictions, and Bylaws, to beconducted by the Members of the Board or its Assignees.

8. Lessee is hereby informed and fully understands that if Lessee fails to comply with any ofthe Rules and Regulations, Owner shall be subject to fines and Lessee subject to restrictionof privileges and/or eviction at the discretion of the Board.

9. Owner is hereby informed and fully understands that Owner is fully responsible for Ownerand Lessee's action under the terms of this Lease and Affidavit. Owner will be responsiblefor any fines levied by or costs incurred by the Hamburg Crossing POA as a result of thisLease.

10. The Owner, not the Lessee, continues as the voting member of the Hamburg Crossing POAand is responsible for paying the monthly Hamburg Crossing POA assessment.

SIGNED:

Unit Owner

Unit Owner

Lessee Date

Lessee Date

Date Lessee's Telephone Contact Number(s)

This fully executed Lease Agreement, including this Affidavit, CANNOT GO INTO EFFECTuntil this Lease and all it's components are approved in writing on the Lease by the HamburgCrossing Board of Directors. A response will be provided within five (5) business days ofreceipt. Documents should be sent/delivered/emailed/faxed to IPM Corporation, HamburgCrossing's property management company, per the below:

IPM CorporationCommunity Association DivisionP.O. Box 580Arden, NC 28704-0580Tel: (828) 650-6850Fax: (828) 654-8270www.ipm-corp.corn Page 2 of 2

(1/2009)

HAMBURG CROSSING RULES AND REGULATIONSEXHIBIT C

REQUEST TO LEASE FORM

Please fax, email, mail or deliver this form to IPM Corporation, Community Assn. Division, P.O. Box 580, Arden NC 28704-0580 www.iorn-coro.com

828- 650-6850 Fax: 828-654-8270

Unit Address:

Owner/Applicant:

Anticipated Lease Start Date (If known):

OWNER/APPLICANT AGREES TO:

• Comply with Hamburg Crossing Declaration of Covenants Article IV, Sections 2 and 12.

• Comply with Hamburg Crossing Rules and Regulations Article IV.

• Use "LEASE AGREEMENT FOR HAMBURG CROSSING" with "Affidavit of Owner and Lessee"and/or accept its provisions.

If Hamburg Crossing has 16 units currently leased and applicant wishes to go on the Lease WaitingLease, applicant agrees that:

• Applicant wishes to go on Lease Waiting List - Please initial: Yes No

• Applicant's name will be placed at the bottom of the Lease Waiting List.

• When notified of an available lease opening, within 90 days of that notificationdate applicant must present an executed lease to the Board or forfeit the leaseposition to the next applicant on the Lease Waiting List. Under the latter circumstance,if desired, the applicant may submit another Request to Lease Form and again be placed at thebottom of the Lease Waiting List.

Owner's Signature

Date Received by IPM:

Signature of Board Member Approving Lease Request

Cap of 16 units reached:

Date:

By whom:

Date:

Position on Waiting List: • Signature of Board Member PlacingApplicant on Lease Waiting List

Date:

Page 1 of 1(1/2009)

HAMBURG CROSSING RULES AND REGULATIONSEXHIBIT D

RENTAL PROCEDURESHAMBURG CROSSING POA, Inc.

I. Owner sends completed Request to Lease Form ("RLF") to 113M Property Management forapproval by HC Board. ["Sends" may be delivered by mail, email, fax or in person.]

H. Rented units fewer than 16 cap.

A. Board approves request.

1. 1PM sends to Owner within five business days of receipt of RLF: Copy of RLF with writtenapproval to proceed with leasing

2. Designated Board member calls Owner: Reminds Owner to use "Lease Agreement forHamburg Crossing" with HC "Affidavit of Owner and Lessee" (hereafter "Affidavit").

B. Board rejects request due to missing information.

1. IPM sends to Owner within five days of receipt of RLF: List of missing information.

2. Owner sends to 1PM: Revised RLF addressing missing information. [Return to II. above.]

C. Leasing process.

1. Owner/Agent sends to 1PM at least 15 days before effective date: Executed Hamburg CrossingLease Agreement and Affidavit for written approval of Board on Lease (any substitute lease issuperseded by Hamburg Crossing Lease Agreement and Affidavit clauses).

2. 1PM sends to Owner/Agent within five business days of receipt: Lease with written approvalby Board on Lease. If there is a question 1PM will contact Owner.

3. Owner/Agent advises 1PM: Date on which tenant will be moving in as soon as known.

III. Rented units at 16 cap (Owner has option to go on Lease Waiting List).

A. IPM sends to Owner: Request to Lease Form stating Owner's name and lot number havebeen placed at bottom of Lease Waiting List with the position number, if desired by Owner.

C. IPM advises Owner: Email or written notification when:

1. Owner's name becomes next to top on Lease Waiting List.

2. Owner's name is at top of Lease Waiting List, and

3. Next vacant unit being advertised for rent is not re-rented in accordance with the 90 dayrule in the Declaration and Rules & Regulations, and the Owner is authorized tocommence leasing procedures.

D. Return to Section 11 above and follow procedures.

Contact information for IPM Corporation:

1F'M CorporationCommunity Association Division:P.O. Box 580Arden, NC 28704-0580

Page 1 of 1

Tel: (828) 650-6850Fax: (828) 654-8270www.ipm-corp.com

For hand delivery:2602 Hendersonville Road, Ardenat office of Tons of Rentals (1PM company)

(1/2009)

HAMBURG CROSSING RULES AND REGULATIONSEXHIBIT E

LETTER FROM THE HAMBURG CROSSING POA BOARD OF DIRECTORSREGARDING INTENT OF THE PROPOSED SECOND AMENDMENT TO THE

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

October 27, 2008

Dear Voting Member of the Hamburg Crossing Community,

Your board of directors strongly recommends that you vote in favor of both parts of the enclosedamendment to our Declaration of Covenants. The amendment has been dratted by our attorney, ErinDunnuck of Dungan & Associates, and has been carefully reviewed by the board and other members ofour community.

The first part of the amendment seeks to prevent several families from moving into one home, or toprevent a home from being used as a college dormitory. The language of the amendment (Article IV,section 2. Residential Use) has been tested in the courts of North Carolina and will prevent the kind ofresidential use outlined above that will lead to a deterioration of living conditions and home values atHamburg Crossing. It is not intended to prevent and will not prevent, for example, a home healthcareworker from moving in with the owner, or a widow from living with a friend, or a gay couple from livingtogether.

The second part of the amendment caps the number of rentals allowed in our community at 16 (that is,20% of the 82 homes). Currently, there are 11 rentals at Hamburg Crossing. This rental cap will help topreserve us as a community of owner-occupied homes and prevent us from assuming the character of arenter-occupied community. All homeowners are treated equally by this amendment. If we reach the cap,homeowners will go on a waiting list that will operate on a "first come, first serve" basis. There are alsoprovisions for the board to allow additional rentals on a temporary basis in case of hardship.

Please attend the special meeting of all members on Dec. 8 at 4:00 pm. If you cannot attend, please returnthe enclosed proxy as soon as possible. Make sure that every person named on the deed to your propertysigns the proxy. You may also choose to cast your vote on this proxy. If you have any questions youwould like answered before the meeting, please contact Jim Tucker (828-658-1436,jamestacke17Ca),cha1te1 net) or any member of the board.

Sincerely,

Your Board of Directors

The signatures of the entire Board of Directors appear on this letter in the official POA records.

President: Jim Tucker Vice President: Todd WeaverSecretary: Marty Biernolt Treasurer: George Beatty

Member at Large: Carol Young

Pagel of I(1/2009)

EXHIBIT F SAMPLE HAMBURG CROSSING REGISTRY OF RENTAL/LEASED UNITS FORM

NOTE: #1-10 on PAGES 1-3 ARE IN ADDRESS ORDER AND WERE RENTALS ON 12/ /08 W

HEN THE 2ND AMENDMENT TO THE DECLARATIONOF COVENANTS WAS RECORDED AND THIS REGISTRY BECAME A REQUIREMENT.

#11 AND FOLLOWING ARE IN SEQUENCE BY THE DATE AN OW

NER'S REQUEST TO LEASE FORM WAS APPROVED , W

HETHER BY THECAP NOT HAVING BEEN MET OR FROM THE OW

NER MOVING TO THE TOP OF THE RENTAL WAITING LIST.

OWNER'S NAME

UNIT #90 DAY START

LEASE IN FILELEASE START

LEASE ENDNAMES OF TENANTS

PHONE #1

21/TN/A

//

1C:

H: C:

2Agent:New Lessee Search:[Ability to Lease Forfeited on

/

21 MMC

N/A/

/H:

H: C:

Agent:12/8/08: New Lessee Search Ongoing[Ability to Lease Forfeited on

/

33 MMC

N/A/

1H:

H: C:

Agent:New Lessee Search:[Ability to Lease Forfeited on

/

26 MMCN/A

1H:

H: W

:2

Agent:New Lessee Search:[Ability to Lease Forfeited on

/I

Page 1

EXH

IBIT G

SAM

PLE REN

TAL W

AITIN

G LIST FO

RM

NOTE: WHEN THE 16 UNIT RENTAL CAP HAS BEEN MET, AN OW

NER REQUESTING TO LEASE ("RLF") WILL BE PLACED AT THE BOTTOM OF THIS LIST.

THE OWNER W

ILL BE NOTIFIED IN WRITING W

HEN (1) OWNER'S NAME IS SECOND FROM TOP, (2) NEXT IN LINE ,AND (3) CAP IS NO LONGER MET.

THE OWNER THEN HAS 90 DAYS TO GIVE THE POA A PARTIALLY EXECUTED LEASE TO APPROVE, OR, FORFEIT THE ABILITY TO LEASE AND GO BACK TO

THE BOTTOM OF THIS LIST. WHEN THE OW

NER COMES OFF THIS LIST THE DATA REMAINS AND THE SEQUENCE #s ARE MOVED DOWN AN OW

NER.

Seq.OW

NER NAME(S)UNIT #

RLF RECI DOW

NER NOTIFIEDOW

NER NOTIFIEDOW

NER NOTIFIED90 DAY

DATE SEQUENCE#

(DO NOT REMOVE DATA)2ND FROM TOP

NEXT IN LINEOK TO RENT

START DATE# CHANGED

1/

//

//

//

//

/2345678910

•

Page 1

HAMBURG CROSSING RULES AND REGULATIONSEXHIBIT II

REQUEST TO CHANGE EXTERIOR HAMBURG CROSSING PROPERTY OWNERS ASSOCIATION

This two-paged request form is to be used to request permission to make changes to the exterior ofa unit at Hamburg Crossing. Please deliver this form to a member of Hamburg Crossing's Board ofDirectors or place it in the Board's mailbox in the Clubhouse. In the normal course of business,requests will be considered at the next Board of Directors meeting. Although this is not a completelist, some common examples of exterior changes are satellite dish installations, skylights, windowreplacements, plantings, etc. Please refer to your Hamburg Crossing Community Rules & Regulationsor call a member of the Board if you have a question about whether or not this form should be used

Following initial approval, it may be necessary for you to submit a detailed plan of the change. Theowner should also verify any contractor's or individuals insurance coverage, including at least $300,000for liability and Workers Compensation.

TAKE NO CHANGE ACTION UNTIL WRITTEN APPROVAL IS RECEIVED.

NAME: DATE: PROPERTY ADDRESS:

1. I request permission to have the following change(s) made to the exterior of my/our HamburgCrossing property. Describe in detail below and attach extra pages, sketches or, for structuralchanges, architectural drawings.

Who will perform the actual work? If a contractor or individual is to be used, please provideContractor(s) name, business name, and phone number:

3. Is/are Contractor(s) or individuals insured for Liability ($300,000 minimum) and WorkersCompensation, as required by NC State Law?

Liability: Yes: No: Finding out:

Workers Comp: Yes: No: Finding out:

Page 1 of 2

Request to Change ExteriorAddress: Date:

INDEMNITY AND HOLD HARMLESS AGREEMENT

Homeowners agree to and will indemnify and hold harmless the Hamburg Crossing Property OwnersAssociation, its Officers, Directors, Members, Agents, and Deputies, from and against any and allliability of every kind, including all expenses of litigation, court cost, and attorney's fees, for injuryto or death of any person, or for damage to any property, arising out of or in connection with theabove Request To Change Exterior.

The Association will not be held responsible for ensuring compliance with restrictions regardingutility easements or other restrictions imposed by other local or state government bodies orcompanies.

Signature of homeowner in behalf of all unit owners

Anticipated Start Date: Anticipated Completion Date:

******************************FOR OFFICE USE ONLy*****************************

Date request received by Board: By whom: Date request faxed to IPM: By whom:

Date of action by Board:

Approved: Conditionally approved: Disapproved:

Date action faxed to IPM: By whom:

If approved or denied, date of written notification to homeowner: By whom:

If conditionally approved:

Conditions to be met:

Date conditions given to homeowner: By whom: Date completed conditions approved:

Date homeowner notified in writing of final approval: By whom:

Date final approval faxed to IPM: By whom:

Approving Board Members Signature

Date:

Page 2 of 2(1/2009)

HAMBURG CROSSING RULES AND REGULATIONSEXHIBIT J

CLUBHOUSE EVENT CLEAN UP REGULATIONS

1. After a function, the Clubhouse & pool deck must be left clean.

2. Countertops, table tops, sinks and floors must be wiped clean,Carpeted areas vacuumed,Trash removed to the resident's garage for normal trash pick-up,All furniture returned to its original location, andPerishable items removed.

3. Any damage must be reported to the Clubhouse & Pool Reservation Chairmanor a member of the board.

4. Clubhouse dishes must be cleaned and stored back on proper shelves beforethe resident leaves the Clubhouse. Dishwashing or putting away washed dishescannot be left for the following day.

5. The dishwasher cannot be left operating unattended. All dishwasher cycles mustbe completed and the dishwasher emptied before locking up.

6. All Small appliances must be unplugged (i.e., coffee pots).

7. The oven/range, TV, fireplace, lights and fans throughout the Clubhouse must beturned off.

8. The TV remote control must be placed on top of the DVD player.

9. The thermostat must be set at 78 F degrees when cooling and 64 F degrees whenheating.

10. The 6 exterior doors must be locked, including bathroom doors to pool.

Page 1 of 1(1/2009)