ADDENDUM B DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF FRESHWATER ESTATES. Prepared by Jeanne Dove-Taylor, Esquire.

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1 ADDENDUM B DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF FRESHWATER ESTATES Prepared by Jeanne Dove-Taylor, Esquire. KNOW ALL MEN BY THESE PRESENTS: That the undersigned. VA TIMBERLINE, LLC, a Delaware Limited Liability Company, states that it is the owner, hereinafter referred to as the Owner of a newly formed subdivision which stall be known as Freshwater Estates and is more fully described on plats thereof dated May 5, 2000 made by Kevin A, Merkey, L.S., of Berkley-1-Iowell & Associates. P.C., Engineers. Surveyors, and Planners, which is recorded in Flat Books, at Pages 1275 et seq. and made a part hereof as if set out herein, the same being described as situate, lying and being in the Mineral and Cuckoo Magisterial District, Louisa County, Virginia, and the same land which was conveyed unto VA TIMBERLINE, LLC, a Delaware Limited Liability Company (the Owner) by deed from BERNARD E. CHEWNING, et al. dated March 12, 2000 of record in the Clerks Office of the Circuit Court of Louisa County, Virginia, in Deed Book 634, at Page 515 and by deed from BERNARD E. CHEWNING, et al. dated March 12, 2000 of record in the Clerk s Office of the Circuit Court of Louisa County, Virginia, in bed Book 634, at Page 522 and by deed from BERNARD 2. CHEWNING, et al. dated March 17, 2000 of record in the Clerks Office of the Circuit Court of Louisa Count Virginia, in Deed Book 634, at Page 530 and by deed from PATRICIA F. PRICE, et al. dated March 21, 2000 of record in the Clerk s Office of the Circuit Court of Louisa County, Virginia, in Deed Book 634, at Page 533. The easements for access and utilities over the roads known as Hensley Road, Ashley Road, Dickinson Drive, Mastin Drive, Fisher Drive, Christopher Court, Trevor Run, and Erin Lane as set out on said plat of Freshwater Estates are hereby granted for the use of the owners of Freshwater Estates Subdivision and the Owner. The roads set out on said plat of survey are hereby dedicated to public use and is intended to, and does hereby, create a public easement and passage over such portion of the premises platted as are on said plat set aside for roads. The common areas and recreational easements as shown on the aforesaid plats of survey are hereby granted for the use of the owners of Freshwater Estates Subdivision and the Owner and are not intended to and do not create a public easement; Each non-waterfront lot within Freshwater Estates Subdivision, as shown on the aforesaid plat of survey, shall be assigned one boat slip for the use and enjoyment of owner of said non-waterfront lot, subject to and together with the terms and condition as stated within the boat slip agreement. All of the lots as planed on the aforesaid plat of Freshwater Estates, Section I and Section II, shall be subject to the following covenants, conditions and restrictions which are declared to be covenants running with the land and enforceable by the Owner, its assigns, and the owners of lots within this subdivision and any additions thereto, against the owners and grantees of said lots and their assigns, both at law and in equity, which covenants and restrictions shall be considered to have been set out in their entirety in each deed to each purchaser by reference in said deeds of these Covenants Conditions and Restrictions.

2 SECTION 1 RESIDENTIAL USE ONLY The lots shall be used for residential purposes only and are restricted to single family homes. No commercial use shall be permitted. This restriction shall not be construed to prevent rental of any Dwelling for private residential purposes. SECTION 2 SIZE REQUIREMENTS No dwelling with a living area, exclusive of open porches, attached garage, carport, unfinished basement or utility room shall be erected on any lot or parcel which contains less than 1400 square feet on the first floor and for all lakefront lots no less than 1800 square feet for a one-story dwelling. SECTION 3 NO TEMPORARY STRUCTURES No single wide or double wide house trailer, mobile home or other structure of a temporary character shall be permitted on any lot on said property. SECTION 4 LOT APPEARANCE Owners of lots on said property, whether said lots are built on or not, shall keep said lots free from all garbage, trash, unsightly debris and litter, The owners or their successors shall be vested with the authority to enforce this covenant. Any lot owner may make said enforcement. SECTION 5 ANIMALS No livestock or poultry projects shall be maintained within said subdivision, nor shall any dog kennels or other such projects involving the rearing, handling or care or maintenance of animals in numbers or commercially be conducted or maintained within this subdivision, No more than four (4) dogs shall be kept on any lot. No animals or pets shall be kept on any residential lot which are an annoyance or nuisance to other owners or residents in the vicinity of the subdivision. SECTION 6 RESUBDIVISION Not more than one dwelling house shall be erected or stand at any one time upon any one of the said lots. In the event an owner desires to further subdivide his/her lot, the owner shall comply with the zoning and subdivision ordinances of Louisa County. Any additional lot created shall be treated as a separate lot, which shall belong to the Property Owners Association and is subject to the Covenants, Conditions and Restrictions of Freshwater Estates. Any additional non-waterfront lot may be assigned a boat slip if available, Notwithstanding, the Owner reserves the right to adjust the lot lines from the configuration shown on the subdivision plat in accordance with applicable ordinances in order to comply with Louisa County and Health Department regulations governing water and septic systems or for such other reasons as the Owner deems advisable for the benefit of owners of lots within the subdivision.

3 SECTION 7 UTILITY EASEMENTS Ten feet wide easements along each lot boundary line are hereby reserved to by the Owner for the installation and maintenance of utilities and drainage. Each lot owner may assign these easements to utility companies or other such entities. SECTION 8 PROPERTY OWNERS ASSOCIATION The Owner shall be responsible for the creation of a non-stock corporation called Freshwater Estates Association, Inc, hereinafter referred to as the Association. Each lot owner shall automatically become a member of the Association and shall be entitled to one (1) vote for each lot in which they are a record owner. The Owner shall be entitled to three (3) votes for each lot it owns. The Association shall be responsible for maintenance of all common areas, recreational facilities and roads unless the roads are accepted for maintenance by the Virginia Department of Transportation. The Owner shall not be obligated to convey the common areas to the Association until 95% of the lots in the development are sold or three (3) years from the recording of the Declaration of Covenants, Conditions and Restrictions, whichever occurs later. The Owner reserves the right, which it may exercise in its sole discretion, to convey the common areas or roads to the Association at any time prior to the time limits set forth above,. The recording of a deed conveying the common areas or roads shall be conclusive evidence of the acceptance of ownership by the association. The road system throughout the development will be built to Virginia Department of Transportation specifications in order to be accepted into their road system. Upon the County of Louisa and Virginia Department of Transportation accepting such roads into the public system, the Association shall no longer be responsible for road maintenance. SECTION 9 ASSESSMENTS Each lot owner is responsible for assessments levied by the Association, Each lot owner will be required to pay initial annual assessment of $ for the cost of maintenance of the roads, recreational facilities, common areas and operating costs of the Association. The initial annual assessment will be collected, pro-rata, upon settlement of the lot purchase. At such time as the common areas or roads are conveyed to the Association, the Association may adjust the annual assessment in any calendar year, for the purpose of reasonable maintenance expense and operating cost of the Association. In order to adjust annual assessments, such adjustment of annual assessments must be approved by two-third (2/3) majority of the voting members and written proxies of the members of the Association at a duly called meeting. In addition, any individual that owns more than one lot shall be required to pay full association fee for each lot owned. In addition, the Owner shall be exempt from payment of any and all Association dues and/or assessments for any lots that it owns or has offered for sale, When the roads and common areas are conveyed to the Association, the Association may levy yearly special assessments in any calendar year for the purpose of supplementing the annual assessment if the same are inadequate to pay the reasonable maintenance expenses and operating costs of the Association or any special project approved by the members of the Association, Provided that any special assessment shall have the assent of a two-third (2/3) majority, including by written proxy voting of Association members at a duly called meeting- In the event that the owner of any lot fails and refuses, alter demand by the Association, to pay any annual or special assessment, then

4 the Association shall have a lien against said lot and may enforce collection of said assessment together with reasonable attorney fees, by any and all remedies afforded by law or in equity, including, without limitation the filing of a notice of lien and perfecting the same as by law provided, to the end that such unpaid assessments together with costs and expenses of collection, including without limitation, reasonable attorneys fees, shall be a charge and lien against the said lot. Should any lot owner not pay the required dues after reasonable written notice from the Owner or Association, the Owner or Association has the right to place a lien on said lot, to be filed in the land records of Louisa County in accordance with the law. Any lot owner that is delinquent in payments of dues cannot vote on any issues before the Association, utilize the common areas or use the boat slip, To secure the payment of the annual and special assessments as are levied by the Association, together with the costs of collection, including attorneys fees, all such changes shall be a continuing lien upon the lot against the assessments are made. Such debt shall also be the personal obligation of the person who was the owner or owners of such lot at the time the assessment came due. The obligation for unpaid assessments shall remain a lien upon the lot upon transfer of title but shall not become the personal obligation of the purchasers thereof unless expressly assumed by them. SECTION 10 PIERS, DOCKS, BOATHOUSES AND RIP-RAP Piers, docks, boathouses, bulkheads, rip-rap, may be constructed on the properties adjacent to Lake Anna, provided that prior to construction, written approval has been obtained from the appropriate Federal, State, County and local authority. SECTION 11 SIGNS No signs or billboards of any kind shall be erected, displayed or allowed to remain on any lot except for one (1) builder s or general contractor s sign limited to two (2) square feet in size or a For Sale sign. The Owner reserves the right to display signs. SECTION 12 RECREATIONAL VEHICLES, BOATS, ETC. STORAGE Recreational vehicles, boats and utility trailers are to be stored on the lot owner s property and not on the roads or common areas. SECTION 13 OFF SITE SEWAGE DISPOSAL Each lot, requiring off site sewage disposal, which are following lots 27, 28, 31, 34, 35, 36, 38, 39, 49, 51, , 55, 56, 58, 59, 61, 62, 63, 64, 65, 66, 68, 69,70, 71,74,76,79, 82, 83, 123, 125, 126, 127, 128, 129, 132, 138 and 139, shall connect to the mass drain fields, which are being provided by the Owner. The Owner shall be responsible for the installation of the mass drain fields and the septic lines running from where the mass drain fields are located to road side property line of the lot. The Owner shall have the right, obligation and duty to expend Association funds for the maintenance, repair and replacement of the sewer line5, septic systems and drain fields located within the common areas. However, the Association shall have the right to recoup such funds from those property owners using a mass drain field system, which is located in the common areas. The Association shall have the full right to establish and collect property owners using the mass drain fields to provide adequate financial resources to maintain the mass drain field systems and sewer lines within the common areas. It shall be the responsibility of the

5 individual owner to connect to the road side property line of the lot, which connects to the mass drain field. SECTION 14 ON SITE SEWAGE All property owners not requiring off site sewage disposal shall be responsible for installation of their on site septic system. SECTION 15 MERGERS AND ANNEXATION OF ADDITIONAL PROPERTY At the sole discretion of the Owner, the Owner may merge the Association with any other homeowners association. The Owner shall also have the authority to annex additional properties to Freshwater Estates Subdivision. This right shall expire when the Owner no longer owns real property within Freshwater Estates Subdivision. SECTION 16 FENCES Except for enclosing the perimeter of swimming pools, tennis courts and/or pet enclosures, no chain link fences will be permitted for use on any lot. SECTION 17 FIRST RIGHT OF REFUSAL RESERVED BY OWNER The Owner reserves the right of First Refusal on all lots within the subdivision. Written notification must be given to the Owner by registered certified mail and the Owner shall have two (2) weeks (fourteen (14] calendar days) to respond whether or not the Owner Wants to exercise the First Right of Refusal to re-purchase the lot. This right shall expire when the Owner no longer owns real property within Freshwater Estates Subdivision. The Owner reserves the right to amend, delete, or add to these covenants and restrictions as it deems necessary. This right to amend, delete, or add to these covenants and restrictions shall expire when the Owner no longer owns real property within Freshwater Estates Subdivision. All other amendments to this Declaration shall require an affirmative vote of at least two-thirds (2/3) of the Lot Owners of Freshwater Estates Subdivision. Whenever the context and construction so require, all words used in the singular number herein shall be deemed to have been used in the plural, and vice versa, and the masculine gender shall include the female and neuter, and the neuter shall include the masculine and feminine. Invalidation of one or more of these covenants and restrictions by decree or order of any court shall in no way affect any of the other provisions herein contained, and said remaining covenants shall remain in force and effect. These covenants, conditions and restrictions shall run with the land for a period of sixty (60) years from the recordation hereof and shall be binding upon all parties and persons claiming title to any lots in said subdivision and shall be renewed automatically for ten (10) years thereafter providing, however, that they may be changed at the end of sixty (60) years or at the end of any such ten year period by agreement executed prior to the end of such sixty year initial period or ten year period thereafter, which agreement shall be executed by majority of the lot owners of record and duly recorded.

6 Witness the following signature and seal VA TIMBERLINE. LLC. a Delaware Limited Liability Company By LAND PARTNERS, LLC A Delaware Limited Liability Company, Manager By NSP Management, Inc., A Massachusetts corporation, Manager STATE OF VIRGINIA COUNTY/CITY OF KING GEORGE to-wit: The foregoing Declaration of Covenants, Conditions and Restrictions were acknowledged before me this 9th day of June, 2000 by Daniel P. Girouard. My Commission Expires: October 31, 2002