ARTICLE II
UNIT OWNERS

SECTION 1. Place of Meetings. All meetings of the association of Unit Owners (hereinafter referred to as "Unit Owners") of the Condominium shall be held at the property or at such other place either within or without the State of North Carolina, and shall be designated in a notice of the meeting.

SECTION 2. Organizational Meeting. The initial meeting of the Unit Owners to organize the Condominium and elect the initial Board of Directors shall be held upon ten (10) days written notice given by the person, firm or corporation who shall, have developed the Property when the sale of 75% of the Units has been consummated or upon the sale of less units if decided by said developer.

SECTION 3. Annual Meetings. An annual meeting of the Unit Owners shall be held at 2:00 P.M. o'clock, on the second Saturday of FEBRUARY of each year after the organizational meeting, if not a legal holiday, and if a legal holiday, then at the same time on the next day following not a legal holiday for the purpose of e1ecting members of the Board of Directors and for the transaction of such other business as may be properly brought before the meeting.

SECTION 4. Substitute Annual Meetings. If the annual meeting shall not be held on the day designated by the By-Laws, a substitute annual meeting may be called in accordance with the provisions of Section 5 of this Article. A meeting so called shall be designated and treated for all purposes as the annual meeting.

SECTION 5. Special Meeting. After the organizational meeting, special meetings of the Unit Owners may be called at any time by the Board of Directors or upon the written request of not less than 25% in common interest, in the aggregate, of the Unit Owners.

SECTION 6. Notice of Meetings. Written or printed notice stating the place, day and hour of the meeting shall be delivered or mailed not less than ten (10) days nor more than fifty (50) days before the date thereof, either personally or by mail at the direction of the Board of Directors or Unit Owners calling the meeting, to each person entitled to vote at such meeting.

In the case of an annual or substitute annual meeting, the notice of meeting need not specifically state the business to be transacted thereat unless it is a matter other than the election of Directors on which the vote of Unit Owners is expressly required by the provisions of the North Carolina Unit Ownership Act. In the case of a special meeting the notice of meeting shall specifically state the purpose or purposes for which the meeting is called.

When a meeting is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. When a meeting is adjourned for less than thirty (30) days in any one adjournment, it is not necessary to give any notice of the adjourned meeting other than by announcement at the meeting at which the adjournment is effective.

SECTION 7. Quorum. The presence in person or by proxy at any Meeting of the voting members (as defined in Section 8 of this Article) having 34% of the total votes shall constitute a quorum. Unless otherwise expressly provided herein, any action may be taken at any meeting of the unit owners at which a quorum is present upon the affirmative vote of the voting members having a majority of the total votes present at such meeting. If there is no quorum at the opening of the meeting of unit owners, such meeting may be adjourned from time to time by the vote of a majority of the voting members present, either in person or by proxy; or at any adjourned meeting at which a quorum is present any business may be transacted which might have been transacted at the original meeting. The voting members at a meeting at which a quorum is present may continue to do business until adjournment, not withstanding the withdrawal of enough voting members to leave less than a quorum.

SECTION 8. Voting Rights. There shall be one person with respect of each Unit Ownership who shall be entitled to vote at any meeting of the Unit Owners. Such person shall be known and hereafter referred to as a "voting member". Such voting member may be the owner or one of the group composed of all of the owners of a unit ownership, or may be some other person designated by such owner or owners to act as proxy on his or their behalf and who need not be an owner. Such designation shall be made in writing to the Board and shall be revocable at any time by actual notice to the Board of the death or judicially declared incompetence of any designator, or by written notice to the Board by the owner or owners. The total number of votes of all voting members shall be 100, and each owner or group of owners (including the Board of Directors, if the Board of Directors, or its designee, shall then hold title to one or more units) shall be entitled to the number of votes equal to the total of the percentage of ownership in the common areas and facilities applicable to his or their unit ownership as set forth in Exhibit"C" of the Declaration.

SECTION 9. Cumulative Voting. In all elections for members of the Board of Directors, each voting member shall be entitled to vote on a cumulative voting basis and the candidates receiving the highest number of votes with respect to the number of offices to be filled shall be deemed to be elected.

SECTION 10. Waiver of Notice. Any Unit Owner may, at any time waive notice of any meeting of the Unit Owners in writing, and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a Unit Owner at any meeting of the Unit Owners shall constitute a waiver of notice by him of the time and place thereof except where a Unit Owner attends a meeting for the express purpose of objecting to the transaction of any business because the meeting was not lawfully called, If all the Unit Owners are present at any meeting of the Unit Owners, no notice shall be required and any business may be transacted at such meeting.

SECTION 11. Informal Action by Unit Owners. Any action which may be taken at a meeting of the Unit Owners may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the persons who would be entitled to vote upon such action at a meeting, (that is, the voting members) and filed with the Secretary of the Condominium to be kept in the Condominium Minute Book.