Section 5: Explanation & Clarification of Certain Rights

(a) The POA and the Company/Developer mutually agree that all easement rights however established in prior agreements or reservations are retained and continue; provided, the Company shall provide the POA reference to the source of authority for an easement right prior to exercising that right.

(b) Fire is a concern of everyone at Big Canoe. Therefore, outdoor burning by any person is prohibited throughout Big Canoe. The Company retains the right in Company Neighborhoods to conduct open fires but only in strict compliance with applicable State of Georgia regulations and permits and with proper supervision. Otherwise, control over burning and open fires is exclusively the jurisdiction of the POA.

(c) The POA and the Company agree that there can be circumstances that justify replatting of lots wherever those lots may be located. They further agree that replatting of lots throughout Big Canoe should be done only in accordance with mutually agreed upon Replatting Guidelines adopted by the Board of Directors and attached as Exhibit "A" to this Amendment. The Company reserves the right to replat any lots it owns, wherever located, so long as the replatting complies with the Replatting Guidelines. The POA reserves jurisdiction to approve or deny replatting of any other lots so long as its decision is in accordance with the Guidelines.

(d) The Company's right to continue to conduct rental and commercial business in the same manner as it is conducting, and as is permitted under the Declaration, as of December 31, 2004, is specifically retained.

(e) The Company shall convey roads to the POA in a timely manner and in no event later than ninety (90) days after the completion of each road or road segment. The Company shall transfer a "neighborhood" as that term is used and recognized at Big Canoe, to the POA no later than thirty (30) days following the sale of ninety-five percent (95%) of the lots in the particular neighborhood. Roads shall be, at the time of conveyance, in the condition specified in the Development Standards and Guidance Document for Big Canoe last revised January 23, 2003.

(f) The definition of "greenspace" is hereby amended to pennit and to include vertical and horizontal improvements such as trails, bridges, meadows, parks, park benches, wildlife preserves, drinking fountains, gazebos and the like but specifically excluding facilities for organized or group activity.

(g) Anything to the contrary in the Declaration notwithstanding, the Type "D" membership shall cease and all specific rights of the Type “D” member shall end (1) two (2) years after the date that the number of individual lots (improved and unimproved) on the POA's assessment records is greater than 4,500, or (2) on such earlier date as the Type "D11 member consents to in writing.

The POA and the Company agree that 4,750 Family Dwelling Units shall constitute the maximum size of Big Canoe.

(h) Except to the extent that Georgia law requires the vote of Owners at a meeting, any provision of the Declaration that requires consent or approval by the vote of Owners at a meeting is amended to require instead the affirmative vote or written consent of Owners (by written ballot through the mail or by other means) representing at least fifty percent (50%) of the total votes cast or fifty percent (50%) of the total votes cast within a particular class of membership, as applicable. This amendment shall not be deemed to eliminate any requirement for approval among all Owners within particular membership classes, but only to provide for approval without the necessity of a meeting.

(i) Article VI, Section 6 of the Declaration is hereby amended to provide that, effective January 1, 2005, the quorum for any action required under Article VI, Section 6 shall be the quorum required under Section 2.4(b) of the Second Amended and Restated By-Laws of Big Canoe Property Owners Association, Inc. (notwithstanding that such quorum requirement shall otherwise apply effective January l, 2006).

(j) The Company retains the right to use the maintenance area and pipe yard for contractors to drop off and pick up heavy machinery and to park equipment for short periods of time, as provided in that certain Settlement Agreement between Southeast Holding Company, Ltd. and Big Canoe Property Owners' Association, Inc., dated March 31, 1987.

(k) The Company retains the right to use POA data for marketing purposes and for communicating with Big Canoe property owners on Big Canoe topics, including the "marketing” of new neighborhoods and products to those owners. However, it may not use such data for any other purpose or provide such data to anyone other than Big Canoe Company.

(l) So long as it is a Type "D” member, the Company retains the right to have three (3) platinum cards.
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