1. The name of the Association shall be the Royale Sands Beach Club Condominium Association.

2. The Association shall have all of the powers and duties asset forth in the New Hampshire Revised Statutes Annotated Condominium Act except as limited by this Declaration and By-laws and all of the powers and duties reasonably necessary to operate the condominium as set forth in this Declaration and By-laws and as they may be amended from time to time.

3. Membership in the Association:

(a) Qualification: The members of the Association shall consist of all the record Owners of the Units.

(b) change of Membership: Change of membership in the Association shall be established by recording in the Registry of Deeds for Rockingham County, State of New Hampshire, a deed establishing record title to a Unit in the condominium. The Buyer shall deliver to the Board of Directors of the Association a photostatic copy of the deed showing the Book, Page and Time of the recording of the deed in the Rockingham County Registry of Deeds. The Board of Directors shall keep such photostatic copy on file as evidence of the Grantee’s membership in the Association for all purposes, rights and obligations as set forth in this Declaration and By-laws. The owner designated by such instrument shall thereby become a member of the Association. At such time the membership of the prior owner shall be thereby terminated.

(c) Voting Rights: A member of the Association shall be entitled to cast a vote for each Unit according to the By-laws. The Declarant shall be entitled to vote with respect to any unit(s) owned by the Declarant.

(d) Restraint Upon Assignment of Shares in the Association: The Share of a member in the funds and assets of the Association cannot be assigned, hypothecated or transferred in any manner except as an appurtenance to his unit.

4. Board of Directors: The affairs of the Association shall be conducted by a Board of three (3) Directors who shall be designated in the manner provided in the By-laws.

5. Indemnification: Every director and every officer of the Association shall be indemnified by the Association against all expenses and liabilities including counsel fees, reasonably incurred or imposed upon him in connection with any proceeding to which he may be a party or in which he may become involved, by reason of his being or having been a director or officer of the Association, in accordance with the By-laws.

6. Limitation upon Liability of the Association: Notwithstanding the duty of the Association to maintain and repair parts of the condominium property, the Association shall not be liable for injury or damage, other than the cost of maintenance and repair, caused by any latent condition of the property to be maintained and repaired by the Association.

7. By-laws: The By-laws of the Association shall be in the form attached hereto as Appendix "C."