2013 Annual Meeting Chadwick Shores Plantation Homeowners ’ Association May 18, 2013

1. 2013 Annual MeetingChadwick Shores PlantationHomeowners’ AssociationMay 18, 2013

2. Welcome and Call Meeting to Order Opening Remarks, Introduction of Officers, Board of Directors, & Contact Information Mission Statement and HOA Objectives Officers & Board of Directors Recurring Activities New Homes & Development Neighborhood Updates Architectural Review Committee 2012/2013 Financial Report 2012 Uncollected Dues 2013 Dues & Collection Schedule Lot Maintenance HOA Challenges Other Topics Validation of 2013 Board of Directors & Officers 2014 Annual HOA Meeting (Tentative Plans) Questions Adjourn AGENDA

3. OFFICERS AND BOARD OF DIRECTORS • John Thompson, President of HOA, 252-571-1426; email: thompsoj@hotmail.com • James Whitfield, Chairman – Board of Directors, 252-726-2858; email: jwhitfield@ec.rr.com • Gary Roberson, Treasurer, 252-223-5820; email: groberson@ec.rr.com • Jean Jerger, Secretary, 919-622-7344; email: wjjerger@earthlink.net • John Tannery, Architectural Committee Head, 704-827-6965; email: jtannery@charter.net

4. CONTACT INFORMATION Address: Chadwick Shores Plantation HOA PO Box 537 Newport, NC 28570 Email: chadwickshoresplantation@gmail.com

5. Chadwick Shores Plantation Homeowners’ AssociationBoard of DirectorsMISSION STATEMENT • Our mission is to oversee the efficient management of Chadwick Shores Plantation community in accordance with the recorded Restrictive Covenants and Bylaws and provide strict fiscal oversight of the homeowners’ association operating funds. • Our goal is to maintain and to improve Chadwick Shores Plantation by keeping our community aesthetically pleasing, and to deploy improvements as needed by determination of the Board of Directors with input from the members of the Homeowners Association. • Policies, protocol and procedures will follow the guidelines of the Chadwick Shores Plantation Restrictive Covenants and the respective Bylaws. The administration of the Restrictive Covenants will be executed through the Board of Directors, Officers and Sub Committees with common sense and consideration of the community and homeowners needs.

6. Chadwick Shores Plantation Homeowners’ AssociationBoard of DirectorsMISSION STATEMENT (continued) • The Board of Directors will develop and administer an annual budget with a prudent spending strategy and concern for keeping our community a great place to live. This will be accomplished by exercising best-value procurements and constant oversight of costs for services received for our community. The Board of Directors will ensure the budget and expenses are posted to the homeowners on an annual basis along with record of fees collected and identification of 60 day or more delinquent payments. • The Board of Directors will encourage and maintain open communication with all members of the Homeowners Association as required by our Bylaws. We will consider the best interests of the homeowners as an aggregate group, realizing that 100% satisfaction of all board decisions is a difficult task. • Our overall philosophy is to make Chadwick Shores Plantation a friendly and desirable community to live in.

7. Homeowners’ Association Objectives Purpose • To Promote the Peace, Health, Comfort, Safety and General Welfare of All Property Owners • To Preserve, Protect and Enhance the Value and Amenities of All Properties in the Development Focus Areas • Compliance with Covenants and Restrictions • Financial Stewardship • Neighborhood Safety & Security • Community Relations • Community Attractiveness

8. Officers & Board of Directors Activities Officers and board members communicate regularly by email and phone, and literally spend several hours per week working HOA responsibilities. Scheduled quarterly board meetings as required by the restrictive covenants. Meeting topics include budget, maintenance of common areas, neighborhood concerns, future plans, meetings, etc.). Action items are usually assigned to one or more of the officers or board members based on their respective responsibilities. Please keep in mind that officers and board members volunteer their services; there is absolutely no compensation for the work performed.

9. NEW HOMES & DEVELOPMENT Since the 2012 HOA Meeting: Walter & Beverly Humphrey built their house last year on lot 51 Tony & Nancy King are currently building on lot 8 Major reconstruction of the pond on Lot 44 by Billy Pearson

10. NEIGHBORHOOD UPDATES Street Lights Re-negotiated Billing and Payment arrangement HOA now pays all monthly fees (approx. $190 per month) Prior agreement split monthly payment between existing homeowners and HOA. This was a poorly planned arrangement. Rivers Brothers Landscaping in Newport has been selected again to cut our grass on the common areas in 2013. John Barnes Landscaping in Newport was hired to improve and maintain landscaping at the entrance and to develop the circle on Settlement Lane Posts and Rope Barriers at the Entrance and Circle are planned Boat Ramp Status

11. Purpose: Assist Potential Home Builders to Ensure Construction Meets Restrictive Covenants Intended as a Valuable Non-obtrusive Resource to the Community Effective Compliance with Harmonious Relationships ARCHITECTURAL REVIEW COMMITTEE

12. 2012/2013 FINANCIAL REPORT • 2012/2013 Cash Flow • Income & Expenses thru April 23, 2013 • 2013 Projected Expenses • Collection of Annual Dues

13. 2012/2013 CASH FLOW • Bank Balance as of January 1, 2012: $ 32,757.24 • 2012 Income: $28,746.49* • 2012 Expenses: $17,281.64 (explained on next slide) • Bank Balance as of January 1, 2013: $44,222.09 • 2013 Income as of April 23, 2013: $9,825.00 • 2013 Expenses as of April 23, 2013: 3,371.00 • Bank Balance as of April 23, 2013: $50,676,09 * 2012 income includes one-time payment of late dues and related attorney fees of $5031.49

14. 2012 ACTUAL EXPENSES • Maintenance of Common Areas: $6,842.00 • New Landscaping and Upkeep: $5,080.98 • Street Lights: $772.00 • Attorney Fees: $2,727.20 • Insurance: $936.00 • HOA Annual Meeting (building rent, food): $199.24 • Mail (PO Box rent, letters to lot owners, etc.): $121.60 • Boat Ramp Investigation & Application: $350.00 • Signs & Posts: $172.62 • Reimbursement for overpayment of 2012 dues: $80.00 Total 2012 Expenses: $17,281.64

15. 2013 PROJECTED EXPENSES Maintenance of Common Areas Landscaping & Upkeep (Entrance and Circle) Lights Insurance HOA Annual Meeting (Building Rent, Food, etc.) Mail (PO Box, letters to lot owners, etc.) Attorney Fees Boat Ramp Misc (signs, etc.)

16. 2012 UNCOLLECTED DUES 2012 Annual HOA dues have been collected from all but two lots (number 5 and 9). Lot 5 owners has not responded to repeated requests for payment. Lot 9 is owned by the bank as a result of bankruptcy. Matters will be referred to our attorney to pursue collection of unpaid dues. Liens will be filed unless paid. Liens will include cost of attorney fees. After filing the liens, the attorney will proceed with foreclosure.

17. NOTE FROM BOARD OF DIRECTORS REGARDING UNPAID DUES We regret legal action for unpaid dues; however, we must be fair with all lot owners. It is our intent to administer the requirements of the restrictive covenants in an even-handed manner. Simply put, all lot owners are expected to pay their annual dues on time. The board continues to spend a great deal of time resolving unpaid dues.

18. 2013 DUES • 2013 HOA Annual Dues will remain at $400 per lot • Note that dues were reduced in 2012 from $480 to $400 per lot as a result of good fiscal management of existing HOA funds, analysis of expected income from dues, and anticipated expenses. • The amount of annual dues will be re-evaluated next year based on projected income and expenses. • The Board of Directors will retain a minimum bank balance of $30,000 to cover recurring expenses, any maintenance and improvements, and any unexpected expenses. This was discussed at prior HOA meetings.

19. 2013 DUES COLLECTION SCHEDULE • October 2013 - Letter will be mailed/emailed to all lot owners requesting payment by December 31, 2013 of $400 per lot • December 31, 2013 - Deadline for payment of 2013 annual HOA dues • Late fees of $25 per month will be assessed ondues not paid in full by the December 31, 2013 deadline. • HOA dues not received by April 1, 2014, along with late fees, will be referred to our attorney. This will include possible liens and foreclosure. Keep in mind that liens and foreclosure proceedings will incur substantial attorney fees that are the responsibility of the delinquent lot owner.

20. LOT MAINTENANCE(NOTE THIS SAME SLIDE WAS PRESENTED LAST YEAR) All lot owners are expected to keep their grass mowed and maintained as required by the restrictive covenants. Restrictive covenants state maximum grass height of 16 inches. However, a neater appearance is expected on lots with homes. Owners are also expected to maintain drainage ditches and overflow ponds on or bordering their property. Note that many ditches currently have uncontrolled growth, including trees. This vegetation must be cleared to prevent blocking proper drainage. The HOA is responsible for maintenance of the common areas and for ensuring community easements are maintained. Unruly lots and ditches are subject to enforcement as specified in the restrictive covenants. A list of lawn maintenance services can be provided in necessary.

21. HOA CHALLENGES Communication with Lot Owners Collection of Annual Dues Maintenance of Common Areas (balance the needs of the property owners with the needs of the community) Boat Dock Access Restrictions Vehicle & Pedestrian Traffic

22. OTHER TOPICS Septic Permits State Maintenance of Roads (pros & cons) Community Watch Program Discussed Last Year – Deputy Chris Hardy provided information Miscellaneous Topics

23. Members of the Board of Directors were elected during the fall of 2010 by vote of existing lot owners. Everyone on the current BOD has expressed a desire to continue serving in this capacity for at least another year until the HOA is more firmly established. HOA Officers were selected from existing board members. Call for acceptance of the current board members and officers through next year without changes (for continuity). Anyone interested in participating as a future board member or officer should submit their name to the board along with a statement of your background and experience with homeowner’s associations, and why you are interested. Volunteers are needed to help with beautification and upkeep of the community. Volunteers and suggestions gladly accepted. VALIDATION OF CURRENT OFFICERS AND BOARD MEMBERS FOR 2013

24. 2014 ANNUAL HOA MEETING (TENTATIVE PLANS) Next annual meeting tentatively planned for Saturday, May 17th, 2014, at 12:00 noon; same location (St. James United Methodist Church, Newport, NC); mark your calendars Reminders will be mailed or emailed at least two months in advance and will request responses from lot owners either by returning the included self-addressed stamped post card or by return email. We need both positive and negative replies for planning purposes and to confirm receipt.

25. Questions?

26. Thank You for Attending the 2013 Annual MeetingHomeowners’ Association