BYLAWS
of
CYPRESS LANDING MARINA ASSOCIATION, INC.

ARTICLE I
 
Purposes

Cypress Landing Marina Association, Inc. (hereinafter called the “Corporation”) is organized by the Cypress Landing Master Homeowners Association, Inc. (the “Homeowners Association”) and shall be operated substantially for pleasure, recreation or other non-profitable purposes that qualify as exempt under the provisions of section 501(c)(7) of the Internal Revenue Code of 1986, or the corresponding provisions of any future United States Internal Revenue law.  Without limiting the generality of the foregoing, the corporation is organized to provide for the operation and maintenance of the marina, and related facilities in the Cypress Landing residential community located on the Pamlico River near Chocowinity, Beaufort County, North Carolina for the benefit of and on behalf of its members, pursuant to the terms of, and in accordance with, that certain Declaration of Protective Covenants, Restrictions and Easements dated March 18, 1994, prepared by Weyerhaeuser Real Estate Company  and recorded at Book 997, Page 228, and re-recorded at Book 998, Page 2, Beaufort County Registry (the “Declaration”).  The terms “Marina,” “Marina Committee,” “Marina Association” and “members of the Marina” shall have the meanings set forth in the Declaration.

Except as inconsistent with the Charter and as limited by these Bylaws, the Corporation shall have the powers prescribed for Non-Profit Corporations in Chapter 55A of the General Statutes of North Carolina.  Said powers may be exercised only in furtherance of the purposes of the Corporation as set out above.

ARTICLE II

Offices

Section 1.  Principal and Registered Office. The Corporation shall have and continuously maintain in this State a registered office and a registered agent whose office is identical with such registered office.  The registered office shall be located at 131 Pamlico Lane, Chocowinity, Beaufort County, North Carolina  27817, or at such other place within the State of North Carolina as may from time to time be fixed and determined by the Board of Directors. The principle office shall be located at 100 Marina Drive, Chocowinity, Beaufort County, North Carolina  27817, or at such other place within the State of North Carolina as may from time to time be fixed and determined by the Board of Directors.

Section 2.  Other Offices.  The Corporation may have offices at such places, either within or outside the State of North Carolina, as the Board of Directors may from time to time determine. 

ARTICLE III
Members

Section 1.  Members.  The Corporation shall have one class of members who shall be the members of the Marina as set forth in Section 20 of the Declaration, a copy of which is attached hereto as Exhibit A and incorporated herein by reference.

Section 2.  Rights and Privileges.  The members shall have such rights and privileges to use the Marina, Bay Club and related facilities as are set forth in the Declaration.  All funds and properties of the Corporation shall be held and used for the benefit of the Marina, and related facilities and the members hereof.

Section 3.  Voting.  Members shall have the right to elect certain members of the Marina Committee as defined in the Declaration.  The members of the Marina Committee shall constitute the Board of Directors of this Corporation.  Except as stated herein, the Members shall have no other voting rights.

Section 4.  Meetings.  The members shall have such meetings as may be called from time to time by the President or the Board of Directors, provided, however, that there shall be at least one meeting of the Members called during each calendar year, which meeting shall coincide with or immediately follow the annual meeting of the members of the Homeowners Association as set forth in the Declaration.  Meetings of Members shall be held at such places as are permitted by the Declaration.

Section 5.  Notices.  Notice of each meeting of the members shall be given at least ten (10) days prior thereto.  All notices shall be in writing delivered personally or sent by mail, e-mail, telegram or facsimile transmission to each member at the member’s address as shown on the records of the Corporation, provided, however, that the Corporation may use such address for any member as is maintained by the Homeowners Association.  If mailed, such notice shall be deemed to be delivered when deposited in the United States Mail in a sealed envelope so addressed, with postage thereon prepaid.  If notice be given by telegram, such notice shall be deemed to be delivered when the telegram is delivered to the telegraph company. If notice be given by e-mail, such notice shall be deemed to be delivered when the transmission is completed and a “non deliverable” notice has not been received within 24 hours. If notice be given by facsimile transmission, such notice shall be deemed to be delivered when the facsimile transmission is completed.  Any member may waive notice of any meeting.  The attendance of a member at any meeting shall constitute a waiver of notice of such meeting, except where a member attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened.  Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the members need be specified in the notice or waiver of notice of such meeting, unless specifically required by law, by the Articles of Incorporation of the Corporation, or by these bylaws.

Section 6.  Liability and Property Rights of Members.  The members of the Corporation shall not be liable or responsible for the debts or obligations of the Corporation and shall have no property rights with respect to the Corporation.

Section 7.  Term.  A member shall remain a member of the Corporation only so long as he shall remain a member in good standing of the Marina, as set forth in the Declaration and is a long term lease holder.

Section 8. Members List.  The Corporation shall prepare an alphabetical list of the names of all its members who are entitled to notice of a meeting.  This list shall show the address and number of votes each member is entitled to cast at the meeting.  Beginning two (2) business days after notice is given of the meeting for which the list was prepared and continuing through the meeting, the list of members shall be available at the Corporation's principal office or at a reasonable place identified in the meeting notice in the city where the meeting will be held for inspection by any member for the purpose of communication with other members concerning the meeting.  A member, personally or by or with his representatives, is entitled on written demand to inspect and to copy the list at a reasonable time during the period it is available for inspection.  The Corporation also shall make the list of members available at the meeting, and any member, personally or by or with his representatives, is entitled to inspect the list at any time during the meeting or any adjournment.

ARTICLE IV
 
Board of Directors

Section 1.  General Powers.  The affairs of the Corporation shall be managed by the Board of Directors except as otherwise provided by law, by the Charter of the Corporation, or by these bylaws.

Section 2.  Number and Qualification.  The number of directors of the Corporation shall be five (5).  All directors shall be at least twenty-one (21) years of age.

Section 3.  Election of Directors.  The initial directors shall be designated by the incorporator in the organization of the corporation.  Thereafter, directors shall be those persons who are elected to serve as the Marina Committee pursuant to, and in accordance with, the terms of the Declaration.  In the event that the Marina Committee is not duly elected in accordance with the Declaration and the directors of this Corporation then in office shall request in writing the Homeowners Association to cause such Marina Committee to be duly elected and the Homeowners Association shall fail to cause the Marina Committee to be duly elected within sixty (60) days after such notice, the directors of the Corporation then in office shall elect the Board of Directors.

Section 4.  Resignation.  A director may resign from membership on the Board at any time by giving notice of his resignation in writing addressed to the President or Secretary of the Corporation or by presenting his written resignation in person at an annual, regular or special meeting of the Board.

Section 5.  Vacancies.  A vacancy occurring among the elected directors shall be filled as provided in the Declaration, provided, however, that if a vacancy on the Marina Committee (and thereby the Board of Directors of this Corporation) shall occur, the directors of the corporation then in office shall fill the vacancy by action of eighty percent of the directors of the Corporation.

 Section 6.  Duties.  Each Director shall discharge his duties as a Director, including his duties as a member of a committee, in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner the Director reasonably believes to be in the best interest of the Corporation.

ARTICLE V
 
Meetings of Directors

Section 1.  Annual Meeting.  The annual meeting of the Board of Directors shall be held  in each year as soon as practicable following the annual meeting of the Board of Directors of the Homeowners Association  at such hour and such place as shall be designated in the notice of the meeting or agreed upon by a majority of the directors entitled to vote at the meeting, for the transaction of such business as may be properly brought before the meeting.  At the annual meeting, an annual budget for the next calendar year shall be adopted.  If the annual meeting shall not be held as provided above in these bylaws, a substitute annual meeting may be called in accordance with Section 2 of this Article V, and a meeting so called shall be designated and treated for all purposes as the annual meeting.

Section 2.  Special Meetings.  Special meetings of the Board of Directors may be called by or at the request of the President or any two directors.

Section 3.  Place of Meeting.  The annual or any special meeting of the Board of Directors may be held at the principal office of the Corporation or at such other place, either within or without the City of Chocowinity, North Carolina, as shall be designated in the notice of the meeting or in a waiver of notice of the meeting signed by all of the directors then in office.

Section 4.  Notice of Meetings.  The Secretary shall give notice (or cause notice to be given) of each annual meeting of the Board of Directors by communicating such notice to each director at least ten (30) days before the meeting.  The President or other person or persons calling a special meeting of the Board of Directors shall give notice thereof (or cause notice to be given) by communicating such notice to each director at least two (2) days before the meeting.  Unless otherwise indicated in the notice thereof, any and all business may be transacted at a meeting of the Board of Directors.  Attendance by a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called.  Such notice may be sent by any usual means of communication.

Section 5.  Quorum.  Eighty Percent of the directors in office shall constitute a quorum for the transaction of any business at any meeting of the Board of Directors; provided, if less than a quorum of the Directors shall be present at the time and place of any meeting, the Directors present may adjourn the meeting from time to time until a quorum shall be present, and notice of any adjourned meeting need not be given.

Section 6.  Manner of Acting.  Except as otherwise provided in these bylaws, or by law, the act of the majority of the directors present at a meeting at which a quorum is present, but at least 3 Directors, shall be the act of the Board of Directors. Any Director who is present at a meeting at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless (i) he objects at the beginning of the meeting (or promptly upon his arrival) to holding it or transacting business at the meeting; or (ii) his dissent or abstention from the action taken is entered in the minutes of the meeting; or (iii) he files written notice of his dissent or abstention with the presiding officer of the meeting before its adjournment or with the Corporation immediately after adjournment of the meeting.  Such right to dissent shall not apply to a Director who voted in favor of such action. 

Section 7..  Participation by Telecommunications.  Any Director may participate in, and be regarded as present at, any meeting of the Board by means of conference telephone or any other means of communication by which all persons participating in the meeting can hear each other at the same time.

Section 8.  Action Without Meeting.  Any action which may be taken at a meeting of the Board of Directors, or of a committee of directors, may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the directors entitled to vote with respect to the subject matter thereof, or all of the members of such committee, as the case may be.  Such consent shall have the same force and effect as a unanimous vote of the Board of Directors or of such a committee, as the case may be, taken at a regularly called and held meeting of the directors or of the committee.

Section 9.  Compensation.  Directors as such will not receive any compensation for their services.  Directors may be compensated for rendering services to the Corporation in a capacity other than as a director.

Section 10.  Participation By Telecommunications.  Any or all Directors may participate in a meeting of the Board by any means of communication by which all Directors participating may simultaneously hear each other during the meeting. 

Section 11.  Director's Conflict of Interest.  Any corporate transaction in which a Director has a direct or indirect interest must be authorized, approved, or ratified in good faith by a majority, not less than two (2), of the Directors who have no direct or indirect interest in the transaction even though less than a quorum; provided, however, no such transaction shall be authorized, approved, or ratified by a single Director.  For purposes of this Section, a Director has an indirect interest in a transaction if:

(a)  Another entity in which he has a material financial interest or in which he is a general partner is a party to the transaction; or

(b)  Another entity of which he is a director, officer, or trustee is a party to the transaction and the transaction is or should be considered by the Board.

Section 12.  Certain Director Liability.  In addition to other liabilities imposed by law upon Directors, a Director shall be subject to the following liabilities:

(a)  All Directors who vote for or assent to any distribution of assets of the Corporation contrary to any lawful restrictions in the Act, the Articles of Incorporation, or these by-laws, shall be jointly and severally liable to the Corporation for the amount of the distribution that exceeds what could have been distributed without violating such restrictions. 

(b)  All Directors who vote for or assent to the making of any loan or guaranty or other form of security by the Corporation to or for the benefit of the Directors or officers of the Corporation, or any of them, except loans, guaranties or other forms of security made to full-time employees of the Corporation who are also Directors or officers of the Corporation and which were made in accordance with Section 6 of Article IV, Section 10 of Article VIII, and this Section, shall be jointly and severally liable to the Corporation for the repayment or return of the money or value loaned, with interest thereon at the legal rate until paid, or for any liability of the Corporation upon the guarantee.

(c)  A Director shall not be liable under the provisions of subparagraphs (a) or (b), above, if he performed his duties in compliance with Section 6 of Article IV or (unless his actual knowledge concerning the matter in question makes such reliance unreasonable) he relied on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by (i) one or more officers or employees of the Corporation whom the Director reasonably believes to be reliable and competent in the matters presented; (ii) legal counsel, public accountants, or other persons as to matters the Director reasonably believes are within their professional or expert competence; or (iii) a committee of the Board of which he is not a member if the Director reasonably believes the committee merits confidence.

ARTICLE VI

Officers

Section 1.  Titles.  The officers of the Corporation shall be a President, one or more Vice Presidents, a Secretary, and a Treasurer.  .  The Board of Directors may also elect such other officers as it shall deem necessary, who shall have such authority and perform such duties as from time to time may be prescribed by the Board of Directors, except as otherwise specifically provided in these bylaws.

Section 2.  Qualifications.  The President, Vice President, Secretary and Treasurer shall be members of the Board of Directors, and the term of office for the Secretary and Treasurer shall not in any event extend beyond such date as they for any reason cease to be members of the Board.

Section 3.  Election and Term.  The officers of the Corporation shall be elected by the Board of Directors immediately following the annual meeting.  Each officer shall hold office for a term of One (1) year commencing on the following  day or until his successor is elected and qualifies.

Section 4.  Vacancies and Removal.  Vacancies among the officers of the Corporation may be filled by vote of a majority vote of the Board at any annual or special meeting of the Board.  Any officer or agent elected or appointed by the Board of Directors may be removed by the Board when in the judgment of the Board the best interests of the Corporation will be served thereby; but such removal shall be without prejudice to the contract rights, if any, of the individual so removed.

Section 5. Resignations.  Any officer may resign at any time by giving written notice to the Board.  Any such resignation shall take effect upon its being accepted by the Board, unless it specifies in writing a later effective date.  If a resignation is made effective at a later date and the Corporation accepts the future effective date, the Board may fill the pending vacancy before the effective date if the Board provides that the successor does not take office until the effective date.   

Section 6.  President.  The President shall be the chief executive officer of the Corporation and, subject to the control of the Board of Directors, shall supervise and control the management of the Corporation in accordance with these bylaws.  The President shall, when present, preside at all meetings of the members and of the Board of Directors.  He shall sign, with any other proper officer, instruments which may be lawfully executed on behalf of the Corporation, except where required or permitted by law to be otherwise signed and executed, and except where the signing and execution thereof shall be delegated by the Board of Directors to some other officer or agent.  In general, he shall perform all duties incident to the office of President and such other duties as may be prescribed by the Board of Directors from time to time.

Section 7.  Vice President(s).  The Vice President(s) shall exercise the powers of the President during that officer’s absence or inability or unavailability to act and such other duties as may be assigned by the Board of Directors or the President.  Any action taken by the Vice President in the  performance of the duties of the President shall be presumptive evidence of the absence or inability or unavailability to act of the President at the time such action was taken.  The Vice President shall have such other powers and perform such other duties as may be assigned to him by the Board of Directors.

Section 8.  Treasurer.  The Treasurer shall have custody of all funds and securities belonging to the Corporation and shall receive, deposit or disburse the same under the direction of the Board of Directors; provided, that the Board may appoint a custodian or depository for any such funds or securities, and provide upon whose signature or authority such funds may be disbursed or transferred.

Section 9.  Secretary.  The Secretary shall keep accurate records of the acts and proceedings of all meetings of the Board of Directors.  He shall give or cause to be given all notices required by law and by these bylaws.  He shall have general charge of the corporate books and records.  He shall sign such instruments as may require his signature and, in general, shall perform all duties incident to the office of Secretary and such other duties as may be assigned to him from time to time by the President or by the Board of Directors.

Section 10.   The Marina Association shall appoint a Recording Secretary to record the minutes of all meetings of the Marina Board.

Section 11.  Absence or Disability of Officers.  In the event of the absence or disability of any officer, the Directors may delegate his powers and duties for the time being to any other officer.

Section 12.  Other Employees or Agents.  The Directors may employ or authorize the employment of such other advisors, agents and employees as shall be considered necessary or advisable for the conduct of the affairs of the Corporation and shall assign their duties and fix or approve their compensation.

Section 13.  Salaries of Officers.  No officer of the Corporation shall receive a salary for his services as such officer if he is also a Director of the Corporation. 

ARTICLE VII
 
Committees

Section 1.  Ad Hoc Committees.  Other committees not having and exercising the authority of the Board of Directors in the management of the Corporation may be designated by a resolution adopted by a majority of the directors present at a meeting at which a quorum is present.  Except as otherwise provided in such resolution, the President of the Corporation shall appoint the members and the chairman thereof.

Section 2.  Term of Office.  Each member of a committee shall serve as such until the next annual meeting or until his successor is appointed, unless the committee shall be sooner terminated.

Section 3.  Chairman.  Except as otherwise provided in these bylaws, one member of each committee shall be appointed chairman by the person or persons authorized to appoint or elect the members thereof.

Section 4.  Vacancies.  Vacancies in the membership of any committee may be filled in the same manner as the incumbent member was elected or appointed.

Section 5.  Quorum and Action of Committees.  Unless otherwise provided in the resolution designating a committee, a majority of the members on a committee shall constitute a quorum, and the act of a majority of the members present and voting at a meeting at which a quorum is present shall be the act of the committee.

Section 6.  Committee Action as Board Action.  The designation of any committee and the delegation thereto of authority shall not operate to relieve the Board or any member thereof of any responsibility or liability imposed by law; and any resolutions adopted or other action taken by any such committee within the scope of authority delegated to it by the Board shall be deemed for all purposes to be adopted or taken by the Board. 

Section 7.  Removal.  Any committee or any member thereof may be discharged or removed by action of a majority of the Directors then in office (provided a quorum is present).

ARTICLE VIII
 
General Provisions

Section 1.  Fiscal Year.  The fiscal year of the Corporation shall be established from time to time by resolution of the Board.

Section 2.  Waiver of Notice.  Whenever any notice is required to be given to any member of the Board under the provisions of these bylaws, a waiver thereof in writing signed by the person or persons entitled to such notice, whether before or after the time stated therein, or attendance at the meeting referred to in such notice, shall be equivalent to the waiving of such notice.

Section 3.  Checks.  All checks, drafts or orders for the payment of money or notes or other evidences of indebtedness issued in the name of the Corporation shall be signed by such officer or officers or other individuals as the directors may from time to time designate.  In the absence of such designation by the directors, such instruments shall be signed by the Treasurer.

Section 4.  Bond.  The Board of Directors may by resolution require any or all officers, agents and employees of the Corporation to give bond to the Corporation, at the expense of the Corporation, with sufficient sureties, conditioned on the faithful performance of the duties of their respective offices or positions, and to comply with such other conditions as may from time to time be required by the Board.

Section 5.  Deposits.  All funds of the Corporation shall be deposited from time to time to the credit of the Corporation in such banks, trust companies or other depositories as the Board of Directors may select.

Section 6.  Capital Reserves.  The Board of Directors shall have the authority to designate and set aside in reserves for capital expenditures such portion of the fees, charges and assessments received by the Corporation from time to time as it deems appropriate.  All such capital reserves so designated shall be maintained separately from the other funds of the Corporation.

Section 7.   Gifts.  The Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest or devise of real or personal property for the general purposes or for any special purpose of the Corporation.

Section 8.  Contracts.  Except as otherwise provided in these by-laws, the Board may authorize any officer or officers, agent or agents to enter into any contract or to execute or deliver any instrument on behalf of the Corporation, and such authority may be general or confined to specific instances. 

Section 9.  Loans.  No loans shall be contracted on behalf of the Corporation and no evidences of indebtedness shall be issued in its name, unless and except as authorized by the Board.  Any officer or agent of the Corporation thereunto so authorized may effect loans or advances for the Corporation and for such loans and advances may make, execute, and deliver promissory notes, bonds, or other evidences of indebtedness of the Corporation.  Any such officer or agent, when thereunto so authorized, may mortgage, pledge, hypothecate, or transfer as security for the payment of any and all loans, advances, indebtedness, and liabilities of the Corporation any real property and all stocks, bonds, other securities, and other personal property at any time held by the Corporation, and to that end, may endorse, assign, and deliver the same, and do every act and thing necessary or proper in connection therewith.  Such authority may be general or confined to specific instances.  No loan, guaranty, or other form of security shall be made or provided by the Corporation to or for the benefit of its Directors or officers, except that loans, guaranties, or other forms of security may be made to full-time employees of the Corporation who are also directors or officers by action of the Board in accordance with Section 10 of Article V.

 Section 10.  Books and Records.  The Corporation shall keep a copy of the following records at the Corporation's principal office:

(a)        It’s Articles of Incorporation or restated Articles of Incorporation and all amendments to them currently in effect.
(b)        It’s by-laws or restated by-laws and all amendments to them currently in effect.
(c)        Resolutions adopted by members or the Board relating to the number or classification of Directors or to the characteristics, qualifications, rights, limitations, and obligations of members or any class or category of members.
(d)        The minutes of all membership meetings, and records of all actions taken by the members without a meeting pursuant to Sections 55A-7-04 or 55A-7-08 of the North Carolina General Statutes, for the past three years.
(e)        All written communications to members generally within the past three years, and the financial statements, if any, that have been furnished or would have been required to be furnished to a member upon demand under Section 55A-16-20 of the North Carolina General Statutes, during the past three years.
(f)         A list of the names and business addresses of its current Directors and officers.

Section 11.  Officer, Director, Employee and Agent Indemnification.

(a)        The Corporation shall indemnify any director or officer or former director or officer of the Corporation or any person who may have served at its request as a director or officer of another Corporation, partnership, joint venture, trust or other enterprise against liabilities and reasonable litigation expenses, including attorneys’ fees, incurred by the director or officer in connection with any action, suit or proceeding in which the director or officer is made or threatened to be made a party by reason of being or having been such director or officer, except in relation to matters as to which the director or officer shall be adjudged in such action, suit or proceeding to have acted in bad faith or to have been liable or guilty by reason of willful misconduct in the performance of duty.
(b)        The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee, or agent of another Corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against the director, officer, employee or agent and incurred in such capacity, or arising out of the director, officer, employee or agent’s status as such, whether or not the Corporation would have the power to indemnify the director, officer, employee or agent against such liability.
(c)        Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding as authorized by the Board of Directors in the specific case upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount unless it shall be ultimately determined that the director, officer, employee or agent is entitled to be indemnified by the Corporation as authorized in Sections 55A‑50, et. seq., of the North Carolina General Statutes or as authorized in these by‑laws.
(d)        Any person who is or was serving as director, officer, employee or agent of the Corporation, or in any such capacity at the request of the Corporation in any other corporation, partnership, joint venture, trust or other enterprise, and who is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceedings, whether civil, criminal, administrative or investigative, not brought by the Corporation nor brought by any party seeking derivatively to enforce a liability of such a person to the Corporation, shall be entitled to indemnification, or reimbursement by the Corporation for any expenses, including attorneys’ fees, or any liabilities which the director, officer, employee or agent may have incurred in consequence of such action, suit or proceeding, under the following conditions:

(1)        If such person is wholly successful in such person’s defense on the merits, or if the proceeding is an administrative or investigative proceeding which does not result in the indictment, fine or penalty of such person, such person is entitled to reimbursement from the Corporation of all reasonable expenses of defense or participation, including attorneys’ fees.
(2)        If such person is wholly successful in such person’s defense otherwise than solely on the merits, the Corporation may pay or agree to pay to such person such expenses of defense or participation, including attorneys’ fees, as the Board of Directors in good faith deems reasonable, regardless of any adverse interest of any or all of the directors.
(3)        If such person is not wholly successful or is unsuccessful in such person’s defense, or if the proceeding to which such person is a party results in such person’s indictment, fine or penalty, the Corporation may pay or agree to pay, in whole or in part, such expenses of defense or participation, including attorneys’ fees, and the amount of any judgment, money decree, fine, penalty or settlement for which such person may have become liable if:

(A)       a plan for such payment is approved by a consent in writing signed by the directors entitled to such vote or such plan is sent to the directors entitled to vote, with notice of a directors’ meeting, whether annual or special, to be held to take action thereon and if at such meeting a plan is approved by a majority of such directors, exclusive of those directors to be benefited by the plan if approved; or
(B)       a majority of a quorum consisting of directors who are not parties to such action, suit or proceeding determine that such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the Corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe such person’s conduct was unlawful; or
(C)       in a proceeding brought by such person for such determination in the superior court of the district where the Corporation has its registered office it is determined that such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person’s conduct was unlawful.The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person’s conduct was unlawful.

(e)        When a present or former director, officer, employee or agent of the Corporation or any person who has served or is serving in such capacity at the request of the Corporation in any other Corporation, partnership, joint venture, trust or other enterprise, is sued, alone or with others, in the courts of North Carolina, in any action seeking to establish the person’s liability to the Corporation arising out of the person’s alleged dereliction of duty to the Corporation, the person shall in turn be entitled to indemnification or reimbursement from the Corporation for so much of the person’s expenses of defense, including attorneys’ fees, as the court in its discretion, upon motion for indemnification or reimbursement, duly made in such action, finds to be reasonable, if: (1) such person is successful in whole or in part in the action against such person or in any settlement thereof and the court finds that such person’s conduct fairly and equitably merits such relief; or (2) the court finds, despite such person’s adjudication of liability, that such person has acted honestly and reasonably and that, in view of all the circumstances of the case, such person’s conduct fairly and equitably merits such relief.
(f)         When such action is brought in a state other than North Carolina and the result thereof is as would have entitled the defendant officer or director to make a motion in the cause for indemnification or reimbursement of the officer or director’s expenses of defense if the action had been brought in North Carolina, but no such relief is available in the state in which the action is actually brought, the defendant officer or director may bring a separate action against the Corporation in North Carolina for such indemnification or reimbursement as the officer or director might have recovered had the suit against the officer or director been brought in North Carolina. Notice of said action for indemnification or reimbursement shall be sent, in such form as the court may approve and at the Corporation’s expense, to the party or parties plaintiff in the prior action who shall be entitled to be heard.
(g)        As used in this Section 11, the term “person” includes the legal representative of such person.

Section 12.  Procedure.  Proceedings will be governed by and conducted according to the latest edition of Robert’s Rules of Order.

Section 13.  Gender.  As used in these bylaws, the masculine pronoun shall include the feminine.

Section 14.  Amendments.  These bylaws may be amended or repealed and new bylaws may be adopted by the affirmative vote at the Annual meeting of eighty percent of the Directors present where a quorum exists, provided that notice of the proposed action shall have been included in the notice of the meeting or shall have been waived as provided in these bylaws.

Section 15.  Amendments to the Bylaws may be proposed by any twenty percent (20%) of the members in good standing. Such proposed amendments for revision of the Bylaws must be submitted to the Board of Directors at least 75 days before the Annual Meeting so that they may be included in the Meeting Notice which shall be sent to all members in good standing.


I do hereby certify that the foregoing constitute the By-Laws of Cypress Landing Marina Association, Inc. which were adopted by the Board of Directors of the Corporation on this _______ day of __________, 2002.
_________________________
Secretary
 


Excerpt from Declaration of Protective Covenants, Restrictions and Easements dated March 18, 1994

 
20.    OPERATION AND OWNERSHIP OF THE LANDING AND THE MARINA.

A. Construction and Lease. Declarant shall construct, at its own expense, a Marina to include no more than three hundred two (302) boat slips and necessary piling and decking to allow access to each slip and access from each slip to The Landing. Declarant shall also construct at The Landing, at its own expense, the Bay Club with appurtenant structures and with a swimming pool. Declarant shall execute a lease with the Association, on terms mutually satisfactory, whereby Declarant shall lease from the Association a certain portion of the Bay Club, and certain of the designated parking (either exclusively or nonexclusively) for use by those entitled to utilize the Marina. Declarant shall, during its period of ownership of the Marina, pay rental to the Association for the use of the Bay Club and parking, which rental shall be in the amount of THREE HUNDRED DOLLARS ($300.00) per month. Declarant shall pay the utility expenses for the portion of the Bay Club leased by it; the Association shall pay ail other expenses associated with the Leased Premises except any cost associated with the interior upfitting and interior maintenance of such leased space. Declarant shall retain ownership of the Marina until conveyed to the Association in accordance with the provisions contained within this paragraph 20.

B. Operation by Declarant. During the time it retains ownership of the Marina, Declarant shall be entitled, without claim by the owner of any Lot or Living Unit or the Association, to retain all rental fees, charges, user fees, assessments, proceeds from food sales' proceeds from merchandise sales and any and all other revenues relating to the utilization of that portion of the Bay Club leased by Declarant and the utilization of boat slips, without any accounting thereof required to be given to any person or entity, including the owner of any Lot or Living Unit or the Association. Declarant shall also bear all expense associated with the construction, operation and maintenance of the Marina and all of the interior of the Bay Club leased by Declarant from the Association. As long as Declarant controls the Marina, no part of any dues or assessments paid to or collected by the Association shall be utilized for the construction, operation or maintenance of the Marina.
It is the intent of Declarant to rent the utilization of Marina on a short term basis to members of the Association, their guests and invitees, and third parties unrelated to the Association or members thereof. It is also the intent of Declarant to enter into long term [up to ninety-nine (99) years] leases for utilization of boat slips within the Marina with any or all of such parties. All proceeds received from any such rentals or leases shall be the sole property of Declarant, without claim thereto by the owner of any Lot or Living Unit or by the Association.

C. Conveyance to Association. Notwithstanding the above. Declarant shall convey the Marina and its leasehold interest in a portion of the Bay Club to the Association, without payment therefore, on a date designated by Declarant, which date shall not be prior to January 1, 1998, nor later than December 31, 2005 (except that all upland portions of The Landing may be conveyed any time after construction). The Association shall be obligated to accept the conveyance when tendered. Such conveyance shall be subject to all rental and lease agreements executed prior to the date of such conveyance by Declarant, and the Association shall abide by and honor all such instruments. Furthermore, the Association shall be entitled to no payment for any portion of any rental or lease term unexpired, all such payments being retained by Declarant as compensation for the conveyance required herein. Declarant shall furthermore convey to the Association all rights, if any, retained by Declarant to construct additional improvements within the Marina as allowed by the Permit. To the extent such right is conveyed, the Association may or may not elect to construct additional improvements; any such construction shall be at the sole cost and expense of the Association. All boat slips rented or leased (or otherwise utilized to produce revenues) by the Association after its acquisition of the Marina shall generate funds which are the sole property of the Association, all of such receipts being maintained in a separate, designated marina account, which account shall be utilized, except as specified hereinafter, for the sole purpose of the maintenance and upkeep of, first, the Marina, then, to the extent of excess receipts, for the maintenance and upkeep (including reserves) of any and all other Amenities owned by the Association. Notwithstanding this provision, no such proceeds shall be utilized for the upkeep, operation or; maintenance of the Cypress Landing Golf Club.

D. Memberships. There shall be designated a special category of membership of Association members, all Association members who have elected at time of Marina conveyance to the Association, for a period extending one (1) year or more from said date, to lease utilization of a boat slip at the Marina. At time of conveyance of the Marina to the Association, Declarant shall give to the Association the name and address of each such member, as well as the name and address of all other parties holding a rental or leasehold interest in one

(1) or more boat slips (accompanied by a copy of the written instrument setting out the respective rights and obligations of such parties ). All members of the -Association qualifying for membership in such category shall hereinafter be deemed "Marina Association Members *.
The Association, through the Marina Committee (as hereinafter described) shall establish a dues schedule whereby each Marina Association Member shall pay dues to the Association on a periodic basis, based upon the size of boat allowed to utilize a particular leased boat slip within the Marina. Furthermore, special assessments shall be allowed to be charged by the Association, upon request of the Marina Committee, from time to time, to allow the proper maintenance and upkeep of the Marina. All such dues and assessments shall be mandatory, and shall be collected as though an annual charge or a special assessment as set in paragraph 6 of these Protective Covenants.

The Association, upon request of the Marina Committee, shall further establish fees and costs which shall be charged to all others utilizing the Marina, and shall further establish dues and charges for those wishing to lease on a long or short term basis use of the Marina. Such fees and charges shall specifically allow a property owner within Cypress Landing, subject to availability, to procure on a long term lease basis the right to utilize a boat slip within the Marina. To the extent that such an owner makes such payments or charges necessary to procure such right, as used herein such user shall be considered a Marina Association Member. Notwithstanding these provisions, the Association may not differentiate in charges to or utilization privileges between Marina Association Members and those holding long term leasehold interest in a boat slip, which interest was created prior to the conveyance of the Marina to the Association by Declarant. Furthermore, all such contracts or leases in existence at time of conveyance may be freely assigned by the holder thereof.

E. Operation By Association. Upon acquisition of the Marina, all expenses associated with the operation, maintenance and upkeep of the Marina shall be borne by all members of the Marina (both Marina Association Members and members not property owners), in proportion to boat slip size utilized, and all revenues associated with the operation of the Marina shall enure to the benefit of Marina Association Members and be utilized to offset the costs incurred in the ownership, maintenance and upkeep of the Marina, subject to the provisions hereinbefore set out.

All membership dues and other charges and assessments, as well as all budgetary and management decisions relating to the Marina reserved primarily to Marina users, shall be determined by a Marina Committee on behalf of the Association, which committee shall consist of five (5) members. As long as there are a minimum of ten (10) non-resident Marina users entitled to utilization of a boat slip in accordance with a long term lease [lease extending at least an additional one (1) year from date of transfer to the Association], said members shall select one (1) member of the committee. The Marina Association Members shall, by vote of the Marina Association Members, select three (3) members of the Committee (or four (4) members if there are not ten (10) nonproperty owner leaseholders as above-stated], and the Association Board of Directors shall appoint one (1) member of said committee, which member may be a Marina Association Member or any other member of the Association. Such committee shall provide in a timely fashion to the Association the amount of all dues and assessments to be charged to members utilizing Marina, and the Association shall use due diligence and all of its legal powers to collect such dues and assessments so imposed. All funds related to the Marina shall be maintained in a designated and separate banking account or accounts of the Association, until disbursed in accordance with the provisions contained herein and other operating procedures as may be adopted from time to time. It is the intent of this provision that all decisions relating to the operation and maintenance of the Marina and any facilities of the Bay Club leased by the Marina owner, including adoption of budgets and establishment of fees and dues, be determined by the Marina Committee, and enforced by the Association.
 
 
 
 

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Cypress Landing Marina Association