STATE OF NORTH CAROLINA DECLARATION OF

RESTRICTIVE COVENANTS

DAVIDSON COUNTY AND ROAD MAINTENANCE AGREEMENT

KNOW ALL PERSONS BY THESE PRESENTS, do hereby covenant with all persons, firms, corporations or other entities which may hereafter acquire any of the Property described herein, in the form and manner as follows:

WITNESSETH:

WHEREAS, Declarant is the owner of the Property located in Healing Springs Township, Davidson County, North Carolina, as more particularly described in Deed dated June 12, 1978, recorded in Deed book 505 page 904 and Deed book 560 page 754, Davidson County Registry (hereinafter the “Property”), to which reference is hereby made for a more particular description; and,

WHEREAS, the purpose of these restrictions is to create an exceptional community of private residences which will be designed, constructed and maintained in accordance with the highest standards of quality so as to preserve within the entire area the atmosphere of an exclusive community of private residences; and,

WHEREAS, Declarant hereby establishes a general plan of development, as set forth herein, to restrict the use and occupancy of the Property made subject to these restrictions for the benefit and protection of the Property and for the mutual protection, welfare and benefit of present and future owners;

NOW, THEREFORE, Declarant does hereby agree, publish and declare that the Property shall be subject to the restrictions hereafter set forth, which shall constitute covenants running with the land, and do hereby agree, publish and declare that the deeds hereafter made by Declarant to purchasers of the Property, or any portion thereof, shall be subject to the following restrictive covenants.

1. PERMITTED USES. This tract, and any lots later subdivided from this tract shall be used only for residential purposes, except that private non-commercial gardens shall be permitted.

2. GENERAL CONDITIONS AND APPEARANCE. This tract must be kept in a neat, orderly, and attractive condition at all times. All grassed areas must be kept mowed and free of unsightly growth of weeds, underbrush, and the like, including specifically without limitations, all rights-of-way for streets, or highways adjoining the lot. All exposed areas shall be planted in grass or otherwise landscaped or planted in attractive ground cover. Trash, garbage, or other waste must be kept in sanitary containers. All structures (including fences) must be kept in good order and repair and maintained in an attractive condition.

3. SPECIFIC PROHIBITIONS. Without limiting the generality of the preceding sections, the following specific restrictions on the use of this lot apply:

A. No obnoxious or offensive activity shall be permitted upon the parcel, nor shall anything be done or permitted to be done thereon which constitutes an annoyance or nuisance to the neighborhood.

B. All pets and other animals must be kept confined or restricted so that they are not allowed to roam at large upon adjacent land.

C. No shop, store, factory, business, professional office or commercial activity of any kind shall be established or permitted to exist upon any tract other than in-home occupations.

D. No outside toilets may be erected or permitted to remain on the lot except for construction purposes as required by the Davidson County Health Department. All temporary outside toilets must be removed immediately upon completion of construction.

E. No motor homes, trailer or boat may be used as a permanent or temporary residence, except that job trailers may be used by contractors during such construction, in either instance only to the extent permitted under applicable laws and regulations and for a period not to exceed nine (9) months.

F. No abandoned vehicles, machinery, junk or salvage of any kind may be stored on the lot, and neither the lot nor any portion may be used or permitted to be used or maintained as a dumping ground for rubbish.

4. TYPE AND LOCATION OF IMPROVEMENTS:

4.1 Permitted Structures. No structure shall be erected or permitted to remain upon the lot other than detached single-family residential dwellings, and a maximum of two (2) detached outbuildings incidental to the use of the lot for residential and other purposes permitted by these restrictions. Each residence shall have a minimum of 1,200 square feet of heated floor space.

4.2 General Construction. All structures must be constructed in a first-class, good and workmanlike manner, of new materials, in compliance with all applicable buildings, fire and zoning codes and regulations. Construction, once commenced, must be completed with reasonable diligence. No structure may be constructed with asbestos shingles, permastone, asphalt shingles or any similar materials, concrete blocks, cinder blocks, slag blocks, or blocks with similar appearance. The exposed visible portions of all foundations must have brick, stone or stucco facing.

4.3 Fences. All fences visible from public right-of-way must be constructed in a first-class, good and workmanlike manner.

5. ENFORCEMENT. These restrictive covenants may be enforced in the courts of appropriate jurisdiction in the State of North Carolina. The Grantors, without limitation of any other available remedies, shall be entitled to seek damages or injunctive relief, and the Grantee, by acceptance of any portion of all of this Tract, agrees that this is an appropriate remedy for the enforcement of these restrictive covenants. Further, these restrictive covenants shall be enforceable in the same manner by any adjoining property owners who obtained title to their property by, through or from Grantors herein, their heirs, successors or assigns. Any rightful party seeking enforcement of these restrictive covenants shall also be entitled to recover all reasonable costs, fees and expenses incurred in connection with the enforcement of the covenants, including without limitation, reasonable attorney’s fees, court costs and expert witness fees.

6. NO LIABILITY OF GRANTORS. Notwithstanding any other provisions of these restrictive covenants, the Grantors shall not be liable for any act or omission in connection with the enforcement of, or failure to enforce, these restrictive covenants, including specifically without limitations, any act or omission of the Grantors in approving or failing to approve plans or drawings or request of waivers, submitted pursuant to these restrictive covenants. The Grantee acquiring property from the Grantors, their partners, agents, contractors, and assigns, for and on behalf of such Grantee and any successor in title, warrants and agrees that none of them will bring any proceeding, action, claim or suit against the Grantors, their agents, contractors, successors, and assigns to recover any such damages or seek such relief.

7. SEVERABILITY AND USE OF TERMS. Invalidation of any one of more of these restrictive covenants by court decision or otherwise shall in no way affect any of the other provisions, which shall remain in full force and effect. The use of the term “Grantors” herein shall include their agents and assigns. The use of the term “Grantee(s)” herein shall include their agents, successors in title and assigns.

8. WAIVERS AND VARIANCES. The Grantors herein may waive any violation of, or grant a variance from these restrictive covenants at Grantor’s sole discretion by written instrument in recordable form. A waiver or variance of restriction by the Grantor shall be conclusive upon all parties bound by these covenants. No waiver or variance of a violation by the Grantor may be constructed to be a waiver of any other subsequent violation of the same or any other restriction. Waivers and variances as described herein shall also be valid if obtained from all adjoining property owners who obtained title to their property by, through or from Grantors herein, their heirs, successors or assigns.

9. EXPIRATION OF COVENANTS. These covenants, subject only to amendments executed by Grantor, or waivers permitted under their terms, will remain in effect until January 1^st, 2012 at which time said covenants and restrictions shall continue to be automatically extended for successive periods of ten (10) years unless, by a majority vote of the then current lot owners, it is agreed to change said covenants and restrictions in whole or in part and said changes, if any, are properly placed on record in the Davidson County Registry.

10. DECLARANT’S RIGHTS OF MODIFICATION. It is understood and agreed that the Declarant has developed, or will develop, the Property pursuant to a general plan or scheme of development and has no intention of abandoning this general plan. However, Declarant hereby reserves the right to modify or change any of the above restrictions provided such changes are in writing, duly acknowledged and recorded in the Davidson County Registry. Declarant’s rights hereunder to make or withhold such changes are strictly within its sole discretion as Declarant may deem best for the general plan and scheme of development.

IN WITNESS WHEREOF, Declarant has caused this instrument to be executed on this ___ day of __________, 20__.

DECLARANT:

_________________________________(SEAL)

_________________________________(SEAL)

STATE OF NORTH CAROLINA

COUNTY OF ________________

I, ________________________________, Notary Public, hereby certify that ______________________________________________________________________________personally appeared before me this day and acknowledged the due execution of the foregoing instrument.

Witness my hand and notarial seal, this _____ day of __________, 20___.

_________________________________________

Notary Public

My commission expires:

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