DECLARATION OF PROTECTIVE COVENANTS FOR GREEN HILL SUBDIVISION

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1 DECLARATION OF PROTECTIVE COVENANTS FOR GREEN HILL SUBDIVISION STATE OF GEORGIA. COUNTY OF HALL COMES NOW, Saddle Creek Development, LLC ("Owner/Developer"), as record owner of all that tract or parcel of land described on Exhibit "A" hereto and incorporated herein by reference (said property sometimes hereinafter referred to as "Green Hill Subdivision," the "subdivision," or the "property"), to file this Declaration of covenants, conditions, and restrictions for Green Hill Subdivision as follows: WITHNSSETH THAT: WHEREAS, it is in the best interest, benefit and advantage of the Owner/Developer, and of each and every person, firm or entity who shall hereafter purchase and acquire any lot in said subdivision that certain protective covenants governing and regulating the use and occupancy of same be established fixed, set forth, and declared to be covenants running with the land; NOW THEREFORE, for and in consideration of the premises, the adequacy of which is hereby acknowledged to be legally sufficient, and of the benefits to be derived by said subdivision, owners and each and every subsequent owner of any of the lots in said subdivision, said subdivision Owner/Developer does hereby publish, establish and promulgate the following protective covenants with respect to all of said lots, or any of them. These protective covenants shall be effective immediately upon the recording of the instrument in the Office of the Superior Court of Hall County, Georgia, and shall run with the land and be binding on all persons claiming under and through the owners of said subdivision for a period of twenty (20) years from and after this date, at which time said covenants may be extended or terminated in whole or in part as herein provided. 1.) LAND USE All the lots in said subdivision shall be known, described and used solely as residential lots. Neither a temporary nor permanent residence shall be established on any lot in a basement, shack, tent, camper, house moved from another location, garage, recreational vehicle, or any other out buildings. No residence of a temporary character shall be permitted under any circumstances. No lot shall be used as access or a roadway to property adjoining Green Hill subdivision property. No dwelling or any structure on any lot within the subdivision shall be used for school, church or kindergarten. 2.) BUILDING TYPES No structure shall be erected on any residential building lot other than a single family dwelling.

2 3.) BUILDLNG LOCATIONS All buildings shall be erected within the building setback lines as shown on such subdivision plat as may be recorded in Hall County records. Natural buffers specified on subdivision plat will also be in place on certain lots. 4.) BUILDING SIZE a) No dwelling shall be erected on any lot where the heated floor space shall be less than 1700 sq. ft. b) This minimum requirement of footage area shall be exclusive of porches, carports, patios, outside storage rooms and similar types of construction. Garages must be a minimum of 20' x 20'. 5.) ARCHITECTURAL CONTROL No building shall be erected, placed, or altered on any lot unless the design and location on the lot conform to and are in harmony with the character of design and location for existing structures on the subdivision tract. The owner/developer is empowered to approve construction plans, landscaping plans and specifications as to harmony of external design and color with the existing structures, and with respect to topography and finish grade elevation. All lot owners desiring to construct a dwelling shall first submit plans and specifications thereof to the owner/developer or its assigns, and obtain written approval prior to the beginning of construction. PLANS AND SPECIFICATIONS ARE NOT APPROVED FOR ENGINEERING OR STRUCTURAL DESIGN OR QUALITY OF MATERIALS, AND BY APPROVING SUCH PLAN AND SPECIFICATIONS NEITHER THE OWNER/DEVELOPER, IT DESIGNEES, SUCCESSORS, OR ASSIGNEES, NOR ANY ASSOCIATION TO WHICH OWNEW/DEVELOPER MAY TRANSFER ITS RIGHTS HEREUNDER (THE "ASSOCIATION") ASSUMES LIABILITY OR RESPONSIBILITY THEREFOR, NOR FOR ANY DEFECT IN ANY STRUCTURE CONSTRUCTED FROM SUCH PLANS AND SPECIFICATIONS. NEITHER OWNER/DEVELOPER, THE ASSOCIATION, ITS BOARD, NOR THE OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES, AND AGENTS OF ANY OF THEM SHALL BE LIABLE IN DAMAGES TO ANYONE SUBMITTING PLANS AND SPECIFICATIONS TO ANY OF THEM FOR APPROVAL, OR TO ANY OWNER OF PROPERTY AFFECTED BY THESE RESTRICTIONS BY REASON OF MISTAKEN JUDGEMENT, NEGLIGENCE, OR NONFEASANCE ARISING OUT OF OR IN CONNECTION WITH THE APPROVAL OR DISAPPROVAL OR FAILURE TO APPROVE OR DISAPPROVE ANY SUCH PLANS OR SPECTFICATIONS. EVERY PERSON WHO SUBMITS PLANS OR SPECIFICATIONS AND EVERY OWNER AGREES THAT SUCH PERSON OR OWNER WILL NOT BRING ANY ACTION OR SUIT AGAINST OWNER/DEVELOPER, THE ASSOCIATION, THE BOARD, OR THE OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES, AND AGENTS OF ANY OF THEM TO RECOVER ANY DAMAGES AND HEREBY RELEASES, REMISES, QUITCLAIMS, AND COVENANTS NOT TO SUE FOR ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION

3 ARISING OUT OF OR IN CONNECTION WITH ANY JUDGEMENT, NEGLIGENCE, OR NONFEASANCE AND HEREBY WAIVES THE PROVISIONS OF ANY LAW WHICH PROVIDES THAT A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS, DEMANDS, AND CAUSES OF ACTION NOT KNOWN AT THE TIME THE RELEASE IS GIVEN. 6.) ADDITIONAL CONDITIONS a) Debris of any kind shall be removed from yard by owners. Yards must always be kept clean, neat and cut. b) Driveway must be paved (concrete or asphalt) to conform with sidewalk and curb. c) Landscape must be approved by Owner/Developer, Association or its Architectural Control Committee. Front yard must be sodded. d) All exposed foundations shall be stucco, brick or stone. e) No log homes, mobile homes, modular homes or industrial homes shall be allowed on any lot in said subdivision. All homes to be stick built. f ) All utilities shall be underground. g) No permanent signs will be allowed nailed to trees. Only signs, such as "For Sale" signs of temporary nature shall be allowed on lots or structures in said subdivision. Said sign sizes shall be limited to no greater than 18" x 24". Limited to one (1) per lot. h) All mailboxes shall be approved by the Owner/Developer, Association or its Architectural Control Committee. i) No satellite receiver or reception dish larger than 21" shall be erected or installed on any lot and any that may be installed shall be at rear of the home and not visible from street. j) All playground equipment, swimming pools, pet enclosures, TV or radio antennas or satellite receivers, garbage containers, clothes lines, gardens, campers, recreational vehicles, boats, storage tanks, etc., shall be placed in the rear of the dwelling in such a way as not to be offensive from the view from the street of the subdivision. k) No animals such as livestock or poultry shall be kept nor any other animal other than usual household pets such as cats or dogs and only in moderation per household and under control and not as a disturbance or nuisance to the subdivision lot owners. l) No junk or broken down vehicles in a state of repair shall be placed on any lot. The subdivision purpose is for natural harmony. Any items classified as junk or eyesore will constitute a violation of these restrictions.

4 7.) OFFENSIVE TRADE No noxious or offensive trade shall be carried on, on any lot, nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood. No schools or childcare operations shall be allowed within the subdivision. 8.) RENTALS There is hereby prohibited the erection of any duplex structure, commercial apartment house, boarding house or other structure designed primarily or intended to be used for rental purposes. It is intended by these restrictions to prohibit an owner from renting a room or an apartment in any dwelling located upon a lot in the subdivision. This does not prohibit the renting or leasing of any entire dwelling by the owner. 9.) ENFORCEMENT Violation or attempted violations on the part of any owners, his heirs, administrators, executors and assigns during the term of these restrictions shall afford the Owner/Developer or any other person or persons owning a lot or lots in said subdivision, a right of action at law or in equity against the person violating or attempting to violate these covenants, either to restrain violations or to recover damages, or both. 10.) SEVERABILITY Invalidation of any one or more of these covenants by a judgment of any court having jurisdiction of the subject shall in no way affect any of the provisions herein contained, but such other provisions and protective covenants shall remain in full force and effect. 11.) TERMS These covenants shall run with the land and be binding on all parties hereafter owning and acquiring land in said subdivision, their assigns, administrators, executors, and all persons claiming under them for the full period of twenty (20) years from the date these covenants are recorded in the office of the Clerk of the Superior Court of Hall County, Georgia, and at the expiration of said period, said covenants shall be automatically extended for successive periods of ten (10) years unless modified by an instrument signed by a majority of the owners of the lots in said subdivision, agreeing to change such covenants in whole or in part, which instrument shall be filed for record in the Office of the Clerk of the Superior Court of Hall County, Georgia. 12.) AMENDMENT OF COVENANTS The owner/developer reserves the sole right to modify or amend these covenants until one hundred percent (100%) of the lots are sold to homeowners. After such time these covenants may be modified or amended at any time by Fifty-One (51%) percent of the lot owners as reflected by the deed records, of Hall County, Georgia. Any such modification or amendment shall become effective only after an appropriate written instrument making such modification or

5 amendment is duly filed in the Office of the Clerk of the Superior Court of Hall County, Georgia. 13.) TRANSFER OF DEVELOPER RIGHTS Owner/Developer may in his discretion, transfer and assign any or all of his rights and duties under these Restrictive Covenants to a subsequent purchaser of Developer's interest in said subdivision, or to a homeowner's association formed for the purpose of accepting such an assignment. 14.) ASSESSMENTS Section I. Purpose of Assessment. The assessments provided for herein shall be used for the general purposes of promoting the recreation, health, common benefit, and enjoyment of the Owners and Occupants of Lots, including the maintenance of real and personal property, all as may be more specifically authorized from time to time by the Owner/Developer or by the Board of Directors of a homeowner's association to which Owner/Developer has assigned its rights (the "Owner/Developer" and homeowners association to which Owner/Developer's rights are transferred being collectively referred to herein as the "Association"). Section 2. Creation of the Lien and Personal Obligation for Assessments. Each Owner of any Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay: (a) annual assessments or charges; (b) special assessments, such assessments to be established and collected as hereinafter provided; and (c) specific assessments against any particular Lot which are established pursuant to the terms of this Declaration, including, but not limited to, reasonable fines as may be imposed in accordance with the terms of this Declaration. All such assessments, together with late charges, interest, not to exceed the lesser of the maximum rate permitted by law or eighteen (18%) percent per annum on the principal amount due, and costs, including, without limitation, reasonable attorney's fees actually incurred, shall be a charge on the land and shall be a continuing lien upon the Lot against which each assessment is made in favor of the Association and the Association shall be entitled to file a lien in the land records of the county where the Lot is located evidencing such lien. Such lien shall be superior to all other liens and encumbrances on such Lot, except for (a) liens for ad valorem taxes; (b) liens for all sums unpaid on a first Mortgage; or (c) liens for all sums on any Mortgage to Owner/Developer duly recorded in the land records of the county where the subdivision is located and all amounts advanced pursuant to such Mortgage and secured thereby in accordance with the terms of such instrument. All other Persons acquiring liens or encumbrances on any Lot after this Declaration shall have been recorded in such records shall be deemed to consent that such liens or encumbrances shall be inferior to future liens for assessments, as provided herein, whether or not prior consent is specifically set forth in the instruments creating such liens or encumbrances. Each such assessment, together with late charges, interest, costs, including, without limitation, reasonable attorney's fees actually incurred, shall also be the personal obligation of the person who was the Owner of such Lot at the time the assessment fell due. Each owner shall be personally liable for the portion of each assessment corning due while the Owner of a

6 Lot, and each grantee of an Owner shall be jointly and severally liable for such portion thereof as may be due and payable at the time of conveyance; provided, however, the liability of a grantee for the unpaid assessments of its grantor shall not apply to any first Mortgagee taking title through foreclosure proceedings or deed in lieu of foreclosure. The Association shall, within five days after receiving a written request therefor and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot shall be binding upon the Association as of the date of issuance. Annual assessments shall be levied at a uniform rate per Lot and shall be paid in such manner and on such dates as may be fixed by the Board of Directors, which may include, without limitation, acceleration, upon ten days' written notice, of the annual assessment for delinquents. Unless otherwise provided by the Board, the assessment shall be paid in annual installments. Section 3. Special Assessments. In addition to the other assessments authorized herein, the Association may levy special assessments any year upon approval of two-thirds of all eligible votes. Special assessments shall be paid as determined by the Board, and the Board may permit special assessments to be paid in installments extending beyond the fiscal year in which the special assessment is imposed. Section 4. Effect of Nonpayment of Assessments: Remedies of the Association. Any assessments or installments thereof which are not paid when due shall be delinquent. Any assessment or installment thereof delinquent for a period of more than ten days shall incur a late charge in an amount as the Board may from time to time determine. The Association shall cause a notice of delinquency to be given to any member who has not paid within ten days following the due date. If the assessment is not paid within 30 days, a lien, as herein provided, shall attach and, in addition, the lien shall include interest, not to exceed the lesser of the maximum rate permitted by law or eighteen (18%) percent per annum on the principal amount due from the date first due and payable, 'all late charges, all costs of collection, including, without limitation, reasonable attorney's fees actually incurred, and any other amounts provided or permitted by law. In the event that the assessment remains unpaid after 60 days, the Association may, as the Board shall determine, institute suit to collect such amounts and/or to foreclose its lien. Each Owner, by acceptance of a deed or as a party to any other type of a conveyance, vests in the Association or its agents the right and power to bring all actions against such owner personally, for the collection of such charges as a debt or to foreclose the aforesaid lien in the same manner as other liens for the improvement of real property. The lien provided for in this Article shall be in favor of the Association and shall be for the benefit of all other Owners. The Association, acting on behalf of the Owners, shall have the power to bid on the Lot at any foreclosure sale or to acquire, hold, lease, mortgage, or convey the same. No Owner may waive or otherwise exempt himself from liability for the assessments provided for herein, including, by way of illustration, but not limitation, abandonment of the Lot. No diminution or abatement of any assessment shall be claimed or allowed by reason of any

7 alleged failure of the Association to take some action or perform some function required to be taken or performed by the Association under this Declaration or the Bylaws, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken by the Association to comply with any law, ordinance, or with any order or directive of any municipal or other governmental authority, the obligation to pay assessments being a separate and independent covenant on the part of each Owner. All payments shall be applied first to costs, then to late charges, then to interest and then to delinquent assessments. Section 5. Date of Commencement of Assessments. The assessments provided for herein shall commence as to a Lot subject to this Declaration on the first day of the month following the conveyance of such Lot to a Person who has not purchased such Lot for the purpose of construction of a residence and resale of such Lot and residence. Lots which have not been so conveyed shall not be subject to assessment. Assessments shall be due and payable in a manner and on a schedule as the Board of Directors may provide. The first annual assessment shall be adjusted according to the number of months then remaining in that fiscal year. IN WITNESS WHEREOF, the undersigned have hereunto set their hands AND seals, this 31 st day of Dec., Owner/Developer: Saddle Creek Development, LLC By: Whitmire Family Enterprises, L.P., its sole Member By: Tim Whitmire, General Partner EXHIBIT "A" All that tract or parcel of land lying and being in Land Lot 58 of the 10 th Land District of Hall County, Georgia as shown on a plat of survey dated August 7, 2001, prepared for Saddle Creek Development, LLC by Chris Patton, Ga. Reg. Sur. 2647, said plat being recorded in the Clerk's Office of the Superior Court of Hall County, Georgia in Plat Slide 806, pages 165A and 166A. Said plat and the record thereof are herein incorporated for a full and complete legal description.

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