DECLARATION OF COVENANTS AND RESTRICTIONS FOR CENTER HILL LAKE ESTATES

DECLARATION OF COVENANTS AND RESTRICTIONS FOR CENTER HILL LAKE ESTATES This Declaration is effective upon the affirmative vote of three-quarters (3/4) of the POA membership. This document is an update to the instrument prepared by Looney & Looney, Attorneys, Crossville, Tennessee 38555 on behalf of Special Properties, LLC, a Tennessee limited liability company, which was the developer of a real estate development known as "Center Hill Lake Estates," hereinafter called "Center Hill." The Developer developed this property as a rural residential community. The plat (hereinafter called the "Plat") of Center Hill was filed of record with the Register of Deeds of DeKalb County, Tennessee on July 13, 2004, at 8:11 A.M. in Plat Book 2, page 693. The original document was created for the benefit and protection of the Developer and the persons who would become owners of lots in Center Hill. The Developer, on September 7, 2004, subjected the lots in Center Hill, of record as set forth above, to a Declaration of Covenants and Restrictions, as recorded in Record Book 206, pages 909-916. The lots in Center Hill are also subject to all matters shown on the plat of Center Hill, including utilitydrainage easements and setback requirements, if any. The Developer also created a non-profit corporation called Center Hill Lake Estates Property Owners Association (the "POA") for the purposes of maintaining the common areas of Center Hill, as hereinafter provided. The Developer, having sold all lots in Center Hill, a plat of which appears of record as set forth above, no longer has a corporate or commercial interest in the development. The POA has responsibility for enforcing the Protective Covenants and ensuring that the interests of the Property Owners, both individually and collectively, are protected and represented. The Protective Covenants included herein have been updated to reflect the majority PROTECTIVE COVENANTS 1. APPLICATION: These Protective Covenants shall apply to all numbered lots as shown on the Plat of Center Hill. 2. HOME CONSTRUCTION GUIDELINES a. The Property Owners Association Board (POAB) will review requests by a property owner to construct a home or alter a property in any manner. Such requests will be submitted in writing, and the board s decision will be delivered in writing. Proper submittals will include drawings that are neat, accurate, drawn to scale, and with sufficient detail to adequately explain the entire design. b. As a minimum requirement, one (1) copy of the site plan shall be submitted, showing 1) Location and type of proposed home additions, accessory structures, site improvements (ex: deck, patio, swimming pool, etc.), and fences. 1

2) Distances between all site improvements and distances to property lines. 3) Tree(s) to be removed, if any. 4) For additions, exterior elevations, including existing house, and finish materials are required. 5) For fences, a drawing of the fence with heights, materials, and sizes identified. c. No dwelling shall be constructed on any lot in the subdivision having less than fifteen hundred (1,500) square feet of heated living area, excluding porches, garages, breezeways, patios and storage areas. Homes shall not exceed three and one-half (3½) stories in height. No more than two (2) additional out buildings may be constructed on any lot, including one (1) detached garage for the owners' vehicles. d. All homes must be constructed of new material and be of good quality workmanship. No trailers, modular homes, mobile homes, any other type of movable homes or shacks shall be allowed. e. All visible portions of exterior foundations shall be faced with brick, stone, synthetic stone, or stucco. f. Façades shall be faced with one or more of the following materials: brick, stone, synthetic stone, stucco, or approved horizontal lap siding. g. Painted siding shall be compatible with the character of CHLE and its environment. h. All homes shall have a minimum 5/12 roof pitch. A-frame homes and log homes shall be permitted so long as such homes comply with all applicable provisions of these Protective Covenants. 3. OCCUPANCY: All lots in Center Hill shall be used and occupied solely and exclusively for private residential purposes by a single family, including their family servants. Only one residence per lot shall be permitted. No lot in Center Hill shall be used for multifamily, weekend or vacation rental, commercial/business, or interval ownership usage. 4. RE-SUBDIVISION AND MERGERS. a. Adjoining lots may he merged into one lot if owned by the same party or parties, but no such merger or combination shall affect the property owner's obligation to the Center Hill Lake Estates POA. Dues and assessments continue to accrue as if the merger had not occurred and are payable by the owner of the merged lots. b. No subdivision of lots less than fifteen (15) acres is permitted. 5. DETACHED STRUCTURES. No detached shed, garage, barn, or other type of detached structure whatsoever shall be erected, reconstructed, or placed nearer than eighty (80) feet from front ("front" meaning herein the side facing or adjoining the street) and thirty (30) feet from the side and rear ("rear" meaning herein the side facing the lake) lot lines. Carports shall be allowed so long as they do not open toward or face the street and 2

so long as the side facing the street is not open. No radio or television antennas or satellite "dishes" larger than 39 inches shall be erected. 6. LANDSCAPING. Within six (6) months after a residence has been completed and occupied on any lot in the subdivision, the front and side yards of said residence shall be sodded or sown, or otherwise landscaped with organic materials wherever the woodland was cleared. 7. FENCING. Lots may be fenced provided that such fencing does not exceed a height of six (6) feet and constructed in a manner that complements the surroundings. 8. TEMPORARY LIVING QUARTERS. No motor home, camper, recreational trailer, basement, foundation, unfinished dwelling, tent, garage, barn, or other outbuilding shall at any time be allowed as a temporary or permanent living quarters. 9. LIGHTING. Street or security lights shall be approved by the POAB prior to installation. 10. COMMON AREAS. Areas, if any, designated as common property upon the recorded plat of the subdivision are intended to be preserved in essentially a natural state. No site development or improvement will be allowed, except as deemed necessary or desirable by the POAB, for the benefit of all property owners in Center Hill. 11. PRESERVATION OF NATURAL SETTING. Underbrush and dead or dying trees and the replanting of selected species will be done as necessary in order to preserve the spirit of the area. Clear-cutting for timber is not allowed on any parcel in the interest of preserving the natural attractiveness and property values for the other property owners as a whole. 12. CONSTRUCTION TIMELINESS. Following the commencement of construction of any structure on the lot, whether it be a primary residence or otherwise, the exterior of said structure shall be completely finished within nine (9) months from the date of such commencement of construction. The dwelling house shall be the first building constructed on any lot, and the construction of a garage or other collateral building prior to the construction of a dwelling house on any lot shall be prohibited. No dwelling shall be occupied until construction is substantially complete, in compliance with local building and occupancy codes. Landscaping around the dwelling structure shall be completed within twenty four (24) months following commencement of construction. 13. SEPTIC SYSTEMS. Each owner in Center Hill shall install a privately maintained septic system for the improvements to said lot in accordance with all applicable federal, state and local rules and regulations. 14. UTILITIES. All service wires or lines to the home and outbuildings, including but not limited to those for water, electrical, telephone, natural gas and cable service, if available, shall be placed underground from the main supply lines. On property where the Developer placed transformer boxes at the road, adjacent lot owners shall be responsible for dividing equitably between themselves the cost of installing underground electric service along their respective common boundary from the transformer, with the limitation, however, that no lot owner shall be required to share costs with more than one other lot owner. All heating and air conditioning units, gas meters, solar devices, or other utility 3

related equipment shall be hidden from view of the street by screening and/or with landscaping. Fuel, oil, and gas tanks and containers shall be located to the side or rear of the house and be screened, covered, or buried underground, consistent with good safety practices and in accordance with all applicable federal, state, and local laws and regulations. 15. EASEMENTS. The Plat for CHLE includes a perpetual easement in, through, under and/or over those portions of each lot, as shown on the Plat of the subdivision, designated as "Utility Easements." a. Easements have been reserved ten (10) feet in width, left, right and parallel to all side lot lines and twelve (12) feet in width along all rear lot lines, and twenty (20) feet in width along the front property line of each lot for the installation of utilities and drainage facilities and the maintenance thereof. b. With concurrence of the POAB, easements are available for the installation and operation of electric, cable television, natural gas and telephone service; water mains; and culverts and drainage ditches, including the right to ingress and egress to such areas for the purpose of installing, operating and maintaining any of the aforementioned installations. c. Easements may also be used to locate and install drains where the POAB deems necessary and to cause or permit drainage of surface waters over and/or through said lots. d. The owner of lots that include an easement shall have no cause of action against the POAB, either at law or in equity, except in cases of willful negligence, by reason of any damage caused to said land in installing, operating, and maintaining the above-mentioned installations. e. It is further provided, however, that in the event any lot or parcels thereof are merged or combined to form larger lots as herein provided, the reservation of these easements shall automatically be relocated from the existing lot line to the lot line formed as a result of the merger or combination. f. The easements retained herein and retained on the plat of CHLE are fully assignable and transferable. 16. INGRESS/EGRESS. No lot shall be used to provide ingress or egress to or from another lot or property in the subdivision unless lots back up to each other. For lots that do adjoin, shared driveways are allowed and specific arrangements need to be worked out between the two property owners. Shared driveways would be expected to provide a cost savings to both property owners. All shared driveway specifications need to be approved in writing by the POAB prior to any work being initiated. No lot shall be used to provide utility service to property outside of the subdivision without the express written consent of the POAB. 17. PROPERTY USE. No industry, business, trade, occupation or profession of any kind shall be conducted, maintained or permitted upon any lot. Nor shall the premises be used in any way or for any purpose that may endanger the health or unreasonably disturb the quiet enjoyment of the owner or owners of any adjoining land. No advertising sign, billboard, or other advertising devise shall be erected or placed upon said premises 4

without the consent of the POAB first having been obtained. A standard real estate sign not exceeding six (6) square feet in area and advertising the lot or dwelling "For Sale" shall, however, be permitted. The right is reserved by the POAB to erect small structures and place signs on any unsold lot or improvements thereon. 18. ANIMALS. No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any lot, except that dogs, cats or other household pets may be kept as long as they do not constitute a nuisance. Notwithstanding the foregoing, however, horses are permitted on lots consisting of ten (10) acres or greater; further an owner of two or more adjoining lots, which adjoining lots have a combined acreage of ten (10) acres or greater, may hold horses. 19. RECREATIONAL VEHICLES. No boats, trailers, motor homes, recreational vehicles, motor coaches or trucks (except pick-up trucks not exceeding one (1) ton, and window and panel vans not exceeding one (1) ton), shall be parked or stored upon said premises or in the streets within the subdivision, unless parked or stored within a garage on said premises out of view, or parked to the rear of the dwelling in an area out of view from the street. 20. CLOTHESLINES AND TRASH. No clotheslines, clothes, sheets, blankets, or other articles shall be hung out or exposed on any part of said premises. All rubbish and debris, combustible and non-combustible, and all garbage shall be stored in underground containers, or stored and maintained in containers entirely within the garage, basement, or in the rear or at the side of the dwelling. In no event shall any rubbish, debris or containers be visible from any street in the front or at the side of the dwelling. Additional regulations for the storage, maintenance and disposal of rubbish, debris, leaves, and garbage may, from time to time, be established by the POAB. 21. NUISANCES. No offensive materials may be stored on any lot; nor shall anything be done thereon which shall be or become an annoyance or nuisance to the neighborhood. 22. VALIDITY OF POAB DECISIONS. Whenever any of the foregoing covenants, restrictions, agreements or restrictions provide for any approval, designation, determination, modification, consent or any other action by the POAB, any such approval, designation, determination, modification, consent or any other such action shall be valid if accomplished by the POAB. 23. ACCEPTANCE OF PROTECTIVE COVENANTS. Each property owner by the acceptance of a Deed of conveyance for a lot in the subdivision, accepts the same subject to all restrictions, conditions, covenants, reservations, easements, and the jurisdiction, rights and powers of the POAB. 24. ENFORCEMENT. Enforcement of these Protective Covenants may be by suit at law or in equity. a. Said suit may be maintained by POA or any owner of property in Center Hill. b. Initiation by or participation in any suit to enforce these Protective Covenants by the POA shall take the affirmative vote of two-thirds (2/3) of the membership. c. In the event suit is instituted to enforce these Protective Covenants, and should that suit be successful, then and in that event, the successful party shall be entitled to 5

recover their costs and expenses in the prosecution of the suit, including their reasonable attorney fees in the prosecution of the suit to enforce the provisions of this Declaration or these Protective Covenants. 25. ENTRANCE SIGN. Since all sections of Center Hill have been developed, the maintenance and upkeep of the entrance sign is the responsibility of the POA. The POA has an easement upon Lot 2 of the Plat for installation, construction, maintenance, and ingress and egress to and from, a sign for Center Hill, the design, specifications and size of said sign, and fixtures related thereto being solely in the POA s discretion. 26. OWNERSHIP. No interval ownership or timesharing shall be permitted. 27. PUBLIC USE ROADS. With regard to the Plat, there appears thereon a road denominated as Allen Bend Road and there further appears thereon a road passing beside and along that certain cemetery marked on said Plat, which road is known as Allen Bend Cemetery Road. Allen Bend Road and Allen Bend Cemetery Road shall be and are hereby dedicated for public use and for the further specific use and benefit of all of the owners of a lot or lots in Center Hill. Allen Bend Cemetery Road ends at the northeast corner of the cemetery and is not a public road beyond this point. CENTER HILL LAKE ESTATES PROPERTY OWNERS ASSOCIATION 1. A Tennessee non-profit corporation known as the "Center Hill Lake Estates Property Owners Association" (known herein as the "Property Owners Association" or the "POA") has been created to administer the common areas as shown on the Plat of CHLE, to mow and maintain the road right of ways; to maintain landscaping around the entrance ways, and to oversee enforcement of the Covenants and Restrictions laid out herein and on the Plat recorded in Plat Book 2, page 693. The POA has been deeded any common areas shown on the Plat of the subdivision noted above and the entrance sign. 2. The owners of lots in Center Hill, shall be obligated to pay an annual maintenance fee to the POA in an amount established by the Board of Directors of the POA, which fees shall be used to pay for the maintenance as set forth above. On the date of this document, the annual maintenance fee assessment for all lot owners shall be Two Hundred Dollars ($200.00) per year per lot, including any lots resulting from re-subdivision under Paragraph 7, supra, with the annual fee due and payable from the respective purchaser to the POA at the closing of the respective lot when sold by a current property owner. The fees may be changed by the POAB. 3. The Board of Directors of the Association (POAB) shall be selected in accordance with the By-Laws of the POA. The POAB shall be obligated on or before November 15 of each year to establish a budget for the following calendar year, and each property owner shall be obligated to pay his or her proportionate share of said budget. Statements for the annual maintenance fee to each property owner shall be forwarded between January 1 and January 30 of each calendar year and shall be due and payable on or before March 1 of each year. Thereafter, if not timely paid, said maintenance fee assessments shall accrue interest at a rate established by the POAB. In the event of non-payment, the POAB or their designated manager may declare a lien against the property of the delinquent property owner and may place a Notice of Lien in the public records of DeKalb County, Tennessee. Said lien may be foreclosed in the event of continued non-payment, provided, however, 6

that the lien imposed herein shall in all events be subject and subordinate to a valid first deed of trust in favor of an institutional lender. By acceptance of a deed for property in Center Hill, or by use of property in Center Hill, the owners agree to pay the maintenance fee assessments as imposed by the POAB, to subject their property to the lien provisions of the Declaration, and to waive and relinquish any right of redemption, either common law or statutory, which they may have and specifically the right of redemption provided by Tennessee Code Annotated 66-8-101, et seq., in the event their property is sold in satisfaction of the lien in favor of the POA. 4. One (1) vote in the affairs of the POA shall be allowed for every lot in the subdivision including any lots merged or combined into other lots, provided, however, that should one residence be constructed on more than one lot, only one vote shall be allowed for the owner of the multiple lots upon which the residence is located. Likewise, one vote shall be allowed for each, if any, newly created lot by re-subdivision under Paragraph 6, supra. When title to the lot is vested in two or more persons, the owners shall designate the person to exercise the voting privileges, but in no event shall more than one vote per lot be allowed. If a lot is owned by a corporation, Limited Liability Company, partnership, or other legal entity, other than by individuals, the legal entity shall designate the person to exercise the voting privileges associated with this lot, and shall also designate the person entitled to the privileges of membership. There shall be one membership in the corporation per lot. 5. In addition to the other remedies available to the POA for non-payment of annual assessments, the POA may suspend the voting rights of any delinquent property owner. A property owner shall be deemed delinquent in the payment of his annual assessments if said assessments are thirty (30) days or more past due. The obligation to pay annual assessments to the POA shall be deemed to be the personal obligation of all persons having an interest in a lot in the subdivision, and the POA may, if it so chooses, seek a money judgment against the delinquent property owner in lieu of pursuit of enforcement of a lien against the lot in question. For any person owning all or an interest in more than one (1) lot in the subdivision, a delinquency in the payment of fees on any lot shall disentitle the property owner to vote in the affairs of the POA or enjoy the privileges of membership as to all property in which the property owner has an interest. 6. The acceptance of a deed by a grantee shall be construed to be a covenant by the grantee to pay said assessment and to comply with all provisions of this Declaration, which covenant shall run with the land and be binding upon the grantee, his successors, heirs and assigns. No person may waive or otherwise escape liability hereunder by the abandonment of the property. 7. In addition to the annual assessment authorized above, the POAB may levy in any assessment year a special assessment, applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of a designated capital improvement upon common areas, provided that such assessment must be approved by not less than two-thirds (2/3) of the votes cast at a special meeting of members called for that purpose. Any such special assessment shall be limited to four (4) times the annual assessment for that year per lot. 7

8. This Declaration may be amended by the affirmative vote of two-thirds (2/3) of the members voting. a. The method of voting will be determined by the POAB and may be in person or by proxy at the meeting duly called for such purpose, or by mail. Any member not present at a meeting at which an amendment is considered may evidence their consent to such an amendment thereafter in writing. b. No such amendment shall be effective unless there is filed for record in the Office of the Register of Deeds for DeKalb County, Tennessee on or before the effective date thereon an instrument executed by the President of the POA, which shall state the terms of such amendment and which shall contain a certification of the Secretary of the corporation that such amendment was duly approved by the members in accordance with the provisions of this Declaration, and the Bylaws of the POA. 8