The residents in the neighborhood surrounding the proposed development of Ranger Island and the Managing Partners at NorthState Development have worked together to modify the development plan, as shown on Exhibit A attached hereto, and agree to certain terms and conditions to lessen the impact of the development to the surrounding neighborhoods.

The surrounding neighbors support the rezoning and development of this property as to the terms below.

Neighborhood support of the rezoning of this development is dependent on NorthState Development, LLC agreeing to the provisions set forth below. NorthState is committing to the following terms and conditions to occur in the development of the project area to change the current zoning to PD-R zoning:

1. Reduce the number of townhomes units to 27 and single-family homes shall be limited to 3. The 11.03 acres will not be developed any further than 2.72 units per acre. The units must be townhome and excludes the building of condominiums, alley loaded house, or two family houses.

2. Six additional guest parking spots will be established in the development plan.

3. The following rules must be in the townhome covenants and/or included in the rezoning plan. The covenant would need to state these are unchangeable regardless of sale/ownership.

a. Townhomes can only be long-term rentals defined by the minimum of 4 months rental periods.

b. Docks and/or boat slips are deeded with townhomes, and owners are unable to rent their docks and/or boat slips to individuals who are not owners of a unit in the development.

c. The following items cannot be stored in any common area: trailers of any type, powered boats, motorhomes, and jet skis.

4. NorthState Development, the residents of Ranger Island Rd. and Lincoln County will work with NCDOT to reduce the road speed on Ranger Island Rd. to 25 MPH and installation of traffic calming devices. If such a petition is denied by NCDOT this clause become severable.

5. NorthState will repair any damage to Ranger Island Rd., Mozelle Sherrill Rd. or Ranger Island Marina Rd. caused by construction vehicles or equipment which is incurred during any phase of the construction.

6. The orientation of the townhome buildings shown on the attached conceptual site plan shall be within 10 degrees of what is shown on the plan so as to maximize the privacy between existing residences and the townhomes.

7. NorthState will install fencing and restrict the access to the 40-foot portion of land adjacent to property at 8314 Ranger Island Marina Rd. which is along the lake front to maximize privacy to the residents subject to applicable governmental regulations. After all permits for building and docks have been issued NorthState will sell a strip of land adjacent 8314 Ranger Island Road to residents Doyle/Greene. Ms. Doyle and NorthState will survey the strip of land to determine the exact location and dimensions of the land that will be sold to Ms. Doyle and Ms. Green.

8. Ensure that stormwater is controlled on the site in such a way that maintains compliance with any required stormwater permitting. Mitigate any existing stormwater issues that are present on site, including any work that may be required by permitting, such as clearing out pipes, repairing drainage grates, and ensuring the adequate sizing of all existing infrastructure.

NorthState will include the conditions set forth in this letter in the zoning conditions which are part of the rezoning plan. The rezoning plan, and any conditions set forth therein, are legally binding. As shown on the attached petition, the residents support the rezoning from R-SF to PD- R as long as the conditions set forth in this letter and shown on the conceptual site plan are agreed upon by the developer.

Therefore, based on the foregoing, NorthState Development, LLC and the Ranger Island Road Neighborhood Group are agreeing to the terms and conditions set forth in this document for the development of Ranger Island Marina Denver, North Carolina, in return for the support of the neighboring residents in changing the zoning from Single Family to PD-R zoning.