October 15, 2003

To: All Property Owners
Estates of the Salisbury

Subject: RULES AND REGULATIONS – October 8, 2003

In order to protect our neighbors and our neighborhood, the Board of Directors of the Estates of the Salisbury Homeowners Association voted to adopt a series of Rules and Regulations and to establish sanctions for violation of these Rules including, but not limited to, monetary fines.*

The decision to adopt these Rules and Regulations was not an easy one. The Board struggled long and hard to decide what Rules to institute and what sanctions should be imposed for their violations. The Board decided on this course of action because too many property owners are ignoring the Covenants and we believe that some action must be taken to keep our neighborhood safe and beautiful, as well as a peaceful place to live.

It is not our desire to become the neighborhood police. We will do our best to enforce these Rules and Regulations with fairness and common sense. We are confident that future Boards will do the same.

Attached is a copy of these Rules, Regulations and Penalties. Please read them carefully to become familiar with them. In addition, we have also enclosed a copy of the Bylaws and Protective Covenants for the Estates of the Salisbury. Should you sell your home or lot, we ask that you provide a copy of the Bylaws, Covenants and Rules and Regulations to the new owner.

*Bylaws Article 4.2 and Covenants Sections 23 & 25.

Sincerely,

Board of Directors
Estates of the Salisbury
Homeowners Association

ESTATES OF THE SALISBURY
RULES, REGULATIONS AND MONETARY PENALTIES
OR OTHER ENFORCEMENT ACTIONS

Adopted by the Board of Directors of the Estates of the Salisbury Homeowners Association October 8, 2003.

I. BUILDING AND ALTERATIONS TO EXISTING HOMES, LOTS AND NEW CONSTRUCTION

A. Home/Lot Owners must submit building plans, specifications, plot plans, construction schedules and all other requests to the Board for approval at least one month prior to beginning any alterations, changes or building. No action may be taken until written approval from the Board is received by the Home/Lot Owner. The Board will consider the distance of all buildings to boundary lines, easements and right of way to other lots when granting approval. Owners of adjacent and /or surrounding lots may be consulted for input if the Board deems it appropriate.
B. No alterations in the exterior appearance of any building or structure may be made without prior approval of the Board. This includes: building, fence, and wall, Sheds, changing exterior colors, satellite television receiver, or other structure.
C. No buildings shall be erected of exposed cement, cement blocks or cinder blocks.
D. No building shall be built where the siding consists of asbestos, shingles or aluminum, nor shall there be any metal roofing on any structure.
E. No structure of temporary character shall be placed upon any lot. Exception is shelter used by contractors, which must be removed when construction is done.
F. The exterior of all houses, other structures and driveway must be completed within one year after the construction of the same has commenced. Exceptions must be approved in writing by the Board.

Penalty:
Violation of Rules/Regulations I. A-E will require the Home/Lot Owner to cease all building, installation, alterations or other action immediately. The required document(s) must be submitted to and approved by the Board before the Owner may proceed with work. The Home/Lot Owner will be assessed $100 per day until the violation is abated.

For violation of Rule/Regulation I. F, the Home/Lot Owner will be assessed $100 per day until the violation is abated, as well as forfeiting the security fee.

October 8, 2003

ESTATES OF THE SALISBURY
RULES, REGULATIONS AND MONETARY PENALTIES
OR OTHER ENFORCEMENT ACTIONS

II. MAINTENANCE OF EXISTING HOMES AND LOTS (DEVELOPED AND UNDEVELOPED)

A. All lots are for single family residential purposes only. No building or structure intended for or adopted to business purposes will be permitted. Home offices used by residents only are exempted.
B. It shall be the responsibility of each Home/Lot Owner to prevent the development of any unclean, unsightly or unkempt condition of buildings or grounds on such lot which shall tend to decrease the beauty of the neighborhood as a whole or the specific area.
C. No signs shall be displayed to public view except one sign of not more than 5ft sq. advertising property for sale/rent or signs used by a builder/architect to advertise during construction/sales.
D. Prior to occupancy of a home, each lot Owner shall provide space for off-street parking for at least 2 automobiles.
E. Parking on streets will not be permitted except during times when normal parking facilities will not accommodate all vehicles owned by persons visiting Owners.
F. Driveways and off street parking areas shall be hard surfaced with concrete, blacktop or similar permanent hard surface.
G. Grass and weeds are to be kept down on all lots.

Penalty:
For violations of Rules/Regulations II. A-G, the Home/Lot Owner will be assessed $50 per day until the violation is abated.

H. No liquid waste of any description shall be drained, dumped or disposed of into open ditches or water courses.
I. Trash, garbage or other waste shall be kept in sanitary containers, hidden from view of adjoining property owners and streets until disposed of properly.

October 8, 2003

ESTATES OF THE SALISBURY
RULES, REGULATIONS AND MONETARY PENALTIES
OR OTHER ENFORCEMENT ACTIONS

J. No portion of any lot shall be used or maintained as a dumping ground for rubbish of any description.

Penalty:
For violation of Rules/Regulations II. H-J, the Home/Lot Owner will be assessed $50 per incident.

K. Clear cutting of live timber is prohibited. This includes the removal of any live tree located within the Estates of the Salisbury without prior approval of the Board. Request for approval should be submitted to the Board at least one month prior to the planned removal date. Upon approval and removal of the tree, the cut tree must be disposed of properly.

Penalty:
The Home/Lot Owner will be assessed $100 for each tree removed with out prior approval from the Board and the Board may require new trees of the same kind to be planted where the trees were removed. It will be the discretion of the Board to determine the height of the new trees.

III. OTHER/MISCELLANEOUS

A. No noxious or offensive activity shall be carried on upon any lot, nor shall anything be done thereon tending to cause embarrassment, discomfort, annoyance or nuisance to the neighborhood.
B. No animals whatsoever, excepting domestic pets such as dogs, cats or other small animals, shall be harbored on any lot.
C. No hunting, shooting or target practice shall be allowed within the subdivision or property included in the Estates of the Salisbury.

Penalty:
For violation of Rules/Regulations III. A-C, the Home/Lot Owner will be assessed $100 per incident.

October 8, 2003

ESTATES OF THE SALISBURY
RULES, REGULATIONS AND MONETARY PENALTIES
OR OTHER ENFORCEMENT ACTIONS

D. No dogs shall be permitted to run free. Excessive and/or continuous barking of
dogs shall not be allowed.

Penalty:
Neighbors are expected to behave courteously towards one another and work together to solve disagreements. For violation of Rule/Regulation III. D, the Board will ordinarily act only upon receipt of written signed complaints from multiple neighbors. When the Board determines the complaint is valid, the homeowner will be fined $50 per day until the violation is abated.

E. No motorcycles, mini bikes, or motorized two wheel vehicles shall be allowed
other than duly licensed vehicles which are used exclusively for transportation
purposes driven by a duly licensed operator. The above shall be allowed to
operate within the Estates of the Salisbury only upon regular roads.

Penalty:
For violation of Rule/Regulation III E, the Home/Lot Owner will be assessed $50 per incident.

F. No outside burning will be permitted. This includes but is not limited to leaves,
yard trimmings, logs, stumps, or other plant growth. No garbage, paper,
cardboard, tires, and other rubber products, building materials, including lumber and wood scrapes, wire, plastics and synthetic materials, asphalt shingles and oils, paints, household and agricultural chemicals. This does not include barbecues.

Penalty:
For violation of Rule/Regulation III, F, the Home/Lot Owner will be fined $100 per incident.

G.  No person may walk an animal on any street within the Estates of the Salisbury unless such person possesses and uses a sanitary and practical means for the prompt removal of the animal's excrement.

Penalty:
For violation of Rule/Regulation III, G, the Home/Lot owner will be assessed $50.00 per incident.

In addition to the above monetary penalties, the Board shall have the right to proceed at law or in equity to compel compliance to the terms hereof or to prevent the violation or breach of any and all the above RULES AND REGUALTIONS. The RULES AND REGULATIONS are to the Covenants and are not to be viewed as limiting their prohibitions or remedies for violations.

October 8, 2003

ESTATES OF THE SALISBURY
RULES, REGULATIONS AND MONETARY PENALTIES
OR OTHER ENFORCEMENT ACTIONS

The Board shall have the express right, power and authority to levy assessments and any other costs and expenses incurred by the Homeowners Association for any violation of these RULES AND REGULATIONS. All such assessments shall automatically be a lien against the various lots owned by the individual Property Owners with the ESTATES OF THE SALISBURY. The Property Owner shall have (15) days from the time of an assessment to pay and satisfy all such liens and assessments. The failure thereof shall give the Board the full right to any and all legal action permitted by the State of North Carolina and the Covenants of THE ESTATES OF THE SALISBURY.