SHEARWATER CONDOMINIUM, INC.

RULES, REGULATIONS AND PROCEDURES

Reflects revisions:

July 1997

September 20, 2001

September 22, 2003

Table of Contents

I.RULES AND REGULATIONS

II.RULES AND REGULATIONS APPLY TO

III.ENFORCEMENT OF RULES AND REGULATIONS

IV.SHEARWATER CONDOMINIUM DECLARATION DEFINITIONS AND DESCRIPTIONS

SECTION I:GENERAL COMMON ELEMENTS

SECTION 2:LIMITED COMMON ELEMENTS

SECTION 3:USE OF COMMON ELEMENTS

SECTION 4:COVENANT AGAINST PARTITION OR SUBDIVISION

V.PHYSICAL MANAGEMENT

SECTION 1:DUTY TO MAINTAIN

(a)BY THE COUNCIL

(b)BY THE UNIT OWNER

(c)MANNER OF REPAIR AND REPLACEMENT

(d)PUBLIC AREAS

SECTION 2:COUNCIL OF UNIT OWNERS AS ATTORNEY-IN-FACT

SECTION 3:ACCESS AT REASONABLE TIMES

VI.FINANCE

VII.BUILDING AND GROUDS ARCHITECTURAL AND ENVIRONMENTAL CONTROL

SECTION 1:Architectural and Environmental Control Committee

SECTION 2:Architectural and Environmental Control Committee Operation

SECTION 3:(9-20-01)

VIII.CONDOMINIUM AND ENVIRONMENTAL STANDARDS

SECTION 1: BALCONIES

SECTION 2: WINDOW COVERINGS

SECTION 3: MAINTENANCE OF WINDOWS AND DOORS

SECTION 4: CONTRACTORS

SECTION 5: PROHIBITION OF ANTENNAS

SECTION 6: STORAGE

SECTION 7: LEASING

SECTION 8: NOISE

SECTION 9: LANDSCAPE INTEGRITY

IX.USE RESTRICTION

X.PETS

XI.VEHICLES AND PARKING (9/22/03)

SECTION 1: REGISTRATION AND PERMITS

SECTION 2: PARKING

SECTION 3: VEHICLE MAINTENANCE

SECTION 4: VIOLATIONS AND ENFOREMENT

SECTION 5: EXCEPTIONS TO THE RULE

XII.RECREATION

SECTION 1: TENNIS COURTS

SECTION 2: RACQUETBALL COURT

SECTION 3: SWIMMING POOL

Pool Committee

Private Parties

Non-Resident Owners

SECTION 4: MARINA

A.Organization of the Marina and Dock Master’s Responsibility

B.Marina Operations

C.Safety Regulations

D.Other Regulations

XIII.VIOLATION PROCESS

I.RULES AND REGULATIONS

  1. Articles of Incorporation of Shearwater Condominium Association, Inc. dated, November 27, 1981
  2. Shearwater Condominium Declaration dated December 29, 1981 (Book 3471, Page 169)
  3. Amendments to Shearwater Condominium Declaration dated March 10, 1983 (Book 3573, Page 518) and dated February 22, 1984 (Book 3700, Page 583)
  4. By-laws of the Council of Unit Owners, Shearwater Condominium Association, Inc., dated December 29, 1981 (Book 3471, Page 201)
  5. Board of Directors, Shearwater Condominium Association, Inc. for Council of Unit Owners.

II.RULES AND REGULATIONS APPLY TO

“All present or future Owners, present or future tenants, or any other person that might use the facilities of the Condominium in any manner, shall comply with and are subject to the provisions of this Declaration, the By-Laws and the decisions and resolutions of the Council of Unit Owners or its representative as lawfully amended from time to time. In addition, the mere acquisition, rental or occupancy of any condominium unit shall signify that the provisions of this Declaration, the By-Laws and the decisions and resolutions of the Council of Unit Owners or its representative as lawfully amended from time to time, are accepted and ratified.” (Declaration Article VIII, Section 1).

III.ENFORCEMENT OF RULES AND REGULATIONS

  1. The Association shall have all the powers and duties … reasonably necessary to operate the Condominium as set forth in the Declaration and the By-Laws and as they may be amended from time to time, including but not limited to the following:

To enforce by legal means the provisions of the Condominium Act, the Declaration, these Articles, the By-Laws, and the regulations for the use of the Condominium property.

The forgoing enumeration of specific powers shall not be deemed to limit or restrict in any manner the general powers of this Association, and the enjoyment of the exercise thereof, as conferred by the Condominium Act and the General laws of the State of Maryland.

(Articles of Incorporation of Shearwater Condominium Association, Inc. Article III)

  1. “The provisions hereof shall be liberally constructed to facilitate the purpose of creating a uniform plan for the creation and operation of a Condominium. Enforcement of these covenants and restrictions and of the By-Laws attached hereto shall be by any proceeding at law or in equity against any person or persons violating or attempting to violate any covenant or restriction, either to restrain or enjoin violation or to recover damages, or both, and against any condominium unit to enforce any lien; and the failure or forbearance by the Council of Unit Owners or the owner of any condominium unit to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.”

IV.SHEARWATER CONDOMINIUM DECLARATION DEFINITIONS AND DESCRIPTIONS

SECTION I:GENERAL COMMON ELEMENTS

All areas and facilities which are not part of a unit, or limited common elements as designated in Section 2 below, constitute the general common elements, as diagrammatically shown on the Condominium plat, including by way of example and not limitation: all gates, fences, curbs, sidewalks, entrance walks, parking areas, bulkheads, piers and pilings, boat slips (unless designated as limited common element on the plat for phases 2 and 3), swimming pool and appurtenant structures and equipment, storage building(s), meter room(s), maintenance room(s), tennis and/or racquet ball courts, lawn areas, trees, shrubbery, conduits, utility mains, exterior lighting, stairways, bearing walls, main walls, perimeter walls, roofs, halls, columns, beams, supports, floor joists, devices rationally of common use and necessary to the upkeep, use and safety of the buildings, all cables, wire and wire outlets, utility lines, regardless of location, and all the land described in Exhibit A, (and upon dedication, the land described in A-1 and/or A-2) hereof.

SECTION 2:LIMITED COMMON ELEMENTS

The limited common elements shall consist of the balconies, balcony closet(s), retractable awnings (7-00), decks, foyers and patios, entrance porches and stairs, open terrace patio, garden areas, storage stalls and such boat slips so designated in phase 2 and 3, as diagrammatically shown in the Condominium Plat. Each such limited common element shall be maintained by and reserved for the use of the unit owner(s) to which the same are appurtenant and abutting as shown on the Condominium Plat with the exception of the storage stalls which shall be reserved for the use of the unit owners in the building in which these stalls are located, and the designated boat slip which shall be reserved for the Unit Owner to whom it is assigned. (The allocation of a specific stall and/or boat slip to a unit owner shall be in accordance with the By-Laws.)

SECTION 3:USE OF COMMON ELEMENTS

The common elements shall be used only for the purposes for which they are intended and, except as provided in the By-Laws, shall be subject to mutual rights of support, access, use and enjoyment by all unit owners. However, any portion of the common elements designated as limited common elements shall be used only the unit owner of the unit to which their use was limited in this Declaration or the By-Laws.

SECTION 4:COVENANT AGAINST PARTITION OR SUBDIVISION

The common elements, both general and limited, shall remain undivided. No owner of any condominium unit or any other person shall bring any action for partition or division thereof except as may be provided for in the Condominium Act.

V.PHYSICAL MANAGEMENT

SECTION 1:DUTY TO MAINTAIN

(a)BY THE COUNCIL

The Council of Unit Owners, acting by and through its Board of Directors, shall manage, operate and maintain the condominium and the common elements, including, without limitation, any sidewalks, walkways, off-street parking, fenced area, pipes, curbs, gutters, storm drains or the like, appurtenant to the Condominium regardless of whether the same may be designated as general common or limited common elements herein or in the Condominium Plat and, for the benefit of the condominium units and the unit owners, shall enforce the provisions hereof and shall pay out of the common expense fund herein elsewhere provided for the cost of managing, operating and maintaining the Condominium. The Council of Unit Owners and the Board of Directors shall also be responsible for the care, upkeep and surveillance of the Condominium, and all portions of theunits which contribute to the support of the building, excluding, however, the interior surfaces of all walls, floors and ceiling of a Unit and the exterior surface of any glass.

In the event any damage, rodent or vector infestation, or other substantiated damage to any unit or common element should be caused by the deliberate or willful act of, or due to the negligence of any owner, his agent or lessee, then in such case the costs of investigation of a valid complaint by an adjoining, affected owner and inspection by management and repairs should be charged to the owner and if not promptly paid within 30 days of notification shall become a lien on the unit of such owner and shall be enforced and collected as such. If the unit owner, or his agent or representative is not present to remedy the problem in a reasonable time appropriate to the seriousness of the problem, the management company representing the Council of Unit Owners shall take immediate remedial action to correct the problem.

(b)BY THE UNIT OWNER

Except for the portions of his Unit required to be maintained, repaired or replaced by the Council, each Unit Owner’s responsibility shall include but not be limited to the maintenance, repair and replacement, at his own expense, of the following: on interior walls; interior surface of ceilings; walls and floor; door locks and hardware; lighting fixtures; kitchen and bathroom fixtures; appliances and equipment; and water andsewage pipes located within the boundaries of the unit or serving only that unit and heating and/or air conditioning equipment which shall be located outside the unit which serves on that unit. Each unit owner shall keep the interior of his unit and its equipment and appurtenances in good order, condition and repair and in a clean and sanitary condition, and shall do all redecorating, painting and varnishing which may at any time be necessary to maintain the good appearance and condition of the unit. In addition, each unit owner shall be responsible for all damage to any and all other units or to the common element resulting from his failure to make immediate repairs required to be made by him by this Section. Each unit owner shall perform this responsibility promptly and in such manner as shall not unreasonably disturb or interfere with the other unit owners. Each unit owner shall promptly report to the Board of Directors, or the Managing Agent any defects or need for repairs for which the Board of Directors is responsible.

(c)MANNER OF REPAIR AND REPLACEMENT

All repairs and replacement shall be of first class quality and as nearly as practicable similar to the character of the construction or installation that existed immediately prior to the occasion that necessitated the repairs or replacements. Repairs and replacement must in every instance comply with all requirements of law.

(d)PUBLIC AREAS

Anything contained in these By-Laws to the contrary notwithstanding, the public areas of the Condominium and those areas exposed to public view (including portions of units) shall be kept in good appearance by either the Council or the Unit Owners who are required to maintain the same, as the case may be, and shall be maintained in a first-class condition, in conformity with the dignity and character of the Condominium, and in a manner which does not adversely alter the value of the condominium.

SECTION 2:COUNCIL OF UNIT OWNERS AS ATTORNEY-IN-FACT

The Council of Unit Owners is hereby irrevocably appointed as attorney-in-fact for the owners of all of the Condominium units in the Condominium, and for each of them to manage, control and deal with the interests of such unit owners in the common elements of the Condominium so as to permit the Council of Unit Owners to fulfill all of its powers, functions and duties under the provisions of the Condominium Act, the Declaration, the Articles of Incorporation and the By-Laws, and to exercise all of its rights there under, and to deal with the Condominium upon its destruction and the proceeds of any insurance indemnity, as herein elsewhere provided. The foregoing shall be deemed to be a power of attorney coupled with an interest and the acceptance by any person or entity of any interest in any condominium unit shall constitute an irrevocable appointment of the Council of Unit Owners as attorney-in-fact as aforesaid.

SECTION 3:ACCESS AT REASONABLE TIMES

The Council of Unit Owners shall have an irrevocable right and duty and an easement to enter condominium units for the purposes of making repairs to the common elements when the repairs reasonably appear necessary for public safety or to prevent damage to other portions of the Condominium. Except in cases involving manifest damage to public safety or property, the Council of Unit Owners shall make a reasonable effort to give notice to the owner of any condominium unit to be entered for the purpose of such repairs. No entry by the Council of Unit Owners, their agent or management acting on behalf of the Council, for the purpose specified in this Section may be considered a trespass.

VI.FINANCE

  1. The Association’s annual budget is approved at the annual meeting. The Condominium monthly per unit assessment (fee) is established at that same meeting.

(1)Assessments are payable on the first of the month. Any assessments which are delinquent for more than ten (10) days are subject to a late charge of $10.00. The late charges are cumulative and will be applied to each monthly assessment for each month such assessments are in arrears. Continued default may result in further action as described in the Condominium documents.

  1. The election of the Board of Directors is held at the annual meeting.

VII.BUILDING AND GROUDS ARCHITECTURAL AND ENVIRONMENTAL CONTROL

SECTION 1:Architectural and Environmental Control Committee

It shall be prohibited for any unit owner to make any change or otherwise alter (including any alteration in color) in any manner whatsoever the exterior of any condominium unit or any of the common elements within the project, or to combine or otherwise join one or more condominium units or to partition the same after combination, or to remove or alter any window or exterior doors of any condominium unit, or to make any change or alteration within any condominium unit which will alter the structural integrity of any building or otherwise affect the property, interest or welfare of any other unit owner, materially increase the cost of operation or insuring the Condominium, or impair any easement, until the complete plans and specifications, showing the location, nature, shape , change (including, without limitation, any other information specified by the Board of Directors or its designated committee) shall have been submitted to and approved in writing as to safety, the effect of any such alterations on the costs of maintaining and insuring the Condominium and harmony of design, color, and locations in relation to surrounding structures and topographies by the Board of Directors of the Council of Unit Owners, or by an Architectural and Environmental Control Committee designated by the Board of Directors.

SECTION 2:Architectural and Environmental Control Committee Operation

The Architectural and Environmental Control Committee shall be composed of any uneven number of three (3) or more persons designated from time to time by the Board of Directors. In the event that the Board of Directors fails to appoint an Architectural and Environmental Control committee, then the Board of Directors shall constitute the committee. The affirmation vote of a majority of the members of the Architectural and Environmental Control Committee shall be required in order to adopt or promulgate any rule or regulation, or to make any finding, determination, ruling or order, or to issue any permit, consent, authorization, approval or the like pursuant to the authority contained in the Article.

SECTION 3:(9-20-01)

All lawn areas (grass), trees and shrubbery on Shearwater property are general common elements. They are subject to mutual rights of support, access, use and enjoyment by all unit owners. Except as otherwise stipulated, all lawn areas, trees and shrubbery will be maintained and replaced with funds from the annual operating and reserve budgets of the Shearwater condominium.

A landscape plan will be prepared and maintained by the Board of Directors. This plan will designate those areas which are lawn, those areas which are shrubs, those areas which are “flower beds” and require minimal or no landscape maintenance. Owners who desire to add annual or perennials to these flower beds at personal expense may submit plans to do so.

A yearly landscape-operating budget will be prepared for the maintenance of the designated areas in the landscape plan. The Board shall provide for such maintenance by the Management Company or a designated landscape company. The Board shall provide funds in the reserve budget for annual replacement of dead or damaged landscape items.

If an Owner wishes to change the integrity of a common element of the landscape, a plan for such changes must be submitted to the Board for approval. The plan must clearly designate the area to be modified, and all modifications to be made. This will include the removal or alteration of current landscaping as well the addition of new landscaping. Such new landscaping details shall include timbers, stones, or other decorative accouterments as well as plants. Any such changes to the landscape must be in accordance with the overall landscape theme. The owner will be required to pay for the initial change. Shearwater will be responsible for maintaining the landscape area subsequent to the change, and will thus take into account the increase in maintenance expense associated with the change before approval.

VIII.CONDOMINIUM AND ENVIRONMENTAL STANDARDS

SECTION 1: BALCONIES

  1. In compliance with an Annapolis City Ordinance, no cooking or barbecuing is permitted on any balcony with the exception of the open terrace unit patios.
  2. The hanging of clothes, laundry, shades, or blinds, etc. will not be permitted on any balcony or patio.
  3. Flower boxes and flower pots are allowed on balconies; however, bird feeders are not allowed either on the balconies or attached to the building.

SECTION 2: WINDOW COVERINGS