Attachment B to Consent Judgment

STATE OF NORTH CAROLINA (DB 688 PG 390-397)

COUNTY OF HENDERSON

DECLARATIONS OR RESTRICTIVE COVENANTS,

LIMITATIONS AND USES AT

CINNAMON WOODS

THIS DECLARATION OF RESTRICTIVE COVENANTS, LIMITATIONS AND USES, made an executed ___day of January, 1966, by BRTR, INC., a North Carolina Corporation, on behalf of itself, its Grantees, Successors and Assigns, and by WILLLIAM F. WHITMIRE et ux, LOUISE WHITMIRE, WILLIAM KILMER et ux, PATRICIA C. KILMER, GLADYS P. GEORGI, BENJAMIN CORN et ux, ELIZABETH CORN, TERRY BROCK et ux, CHARLOTTE BROCK, JOHN HILL et ux, MYRTLE HILL, ERNEST H. RUSSELL et ux, LINDA L. RUSSELL, EDWARD HONEYCUTT et ux, GENEVA HONEYCUTT, HAROLD CASE et ux, JEAN CASE, WILLIAM MONROE BROCK et ux, JO ELENA BROCK, ("Butt Mountain Estates" as used herein is as described and shown on Plats thereof recorded in Plat Book 7, at page 79 (now Plat Cabinet C, Slide 114A) and Plat Book 8, at Page 16 (now Plat Cabinet C, Slide 149), all of the Henderson County, North Carolina, Registry).

W I T N E S S E T H:

WHEREAS, BRTR, INC. (hereinafter referred to as "Developer") owns or has a contract to purchase certain real property located in Hendersonville Township, Henderson County, North Carolina, being that property described in that deed recorded in Deed Book .590 at Page 509 and in Deed Book 621 at Page 211 and Deed Book 648 at Page 83l, Henderson County Registry, and more particularly described as all numbered lots as shown on a Plat of CINNAMON WOODS, said Plat being recorded in Plat Cabinet A, at Slide 243A, and Plat Cabinet A, at Slide 244A, of the Henderson County, North Carolina, Registry, which Plat is hereby incorporated by reference; and, WHEREAS, the above-named property owners of land in "Butt Mountain Estates" wish to join in this Declaration for the reasons described herein;

NOW, THEREFORE, said Developer does hereby make and declare the following restrictions, limitations, and uses to which the lots located in said subdivision may be put, and hereby specified and declares that such declarations shall constitute covenants which shall run with the land, as provided by law, and which shall be binding upon all parties and persons claiming under said Developer, its successors and assigns, or under said declarations and restrictions; and further, said Developer hereby declares that this Declaration shall be for the benefit of, and limitation upon all future owners of lots within said subdivision, and shall also be for the benefit of all owners of real property in "Butt Mountain Estates", this declaration being intended for the purpose of keeping said subdivision desirable, uniform and suitable in design and use, and for the benefit of the aforesaid owners of real property in "Butt Mountain Estates", such that property owners in "Butt Mountain Estates" are express third party beneficiaries of this Declaration, as specified hereinafter:

I

1. All lots located within the said property bounds shall be used solely for residential purposes, and under no circumstances shall said lots be used for any business or commercial purposes. No lot shall be less than approximately one-half (1/2) acre in area as shown on plat recorded in Plat Cabinet A, Slide 243A, and Plat Cabinet A, Slide 244, Henderson County Registry, and as stated in Article V hereinbelow:

2 Mobile Homes placed upon said lots shall be of the type known as "double wide" only, with ridged roof line and shingle roof, and with a minimum heated interior size 960 square feet.

3. All structures constructed or placed upon any lot in said subdivision shall be located in accordance with the following set-back requirements:

(a) All structures shall be located not less than fifty (50) feet from the center line of the street right of way on which the structure fronts;

(b) All structures shall be located not less than fifteen (15) feet from each side boundary line of a particular lot;

(c) All structures shall be located not less than fifteen (15) feet from the rear boundary line of a particular lot;

(d) In the event that a particular lot is so situated as to be considered a "corner lot", then all structures shall be located not less than thirty (30) feet from the center line of the right of way or any side street which adjoins said lot;

(e) The Developer reserves the right to "waive" enforcement of the set-back provisions herein in the event that an unintentional violation occurs or in the event of potential “hardship” which may be caused due to the location of a particular lot or by requirements for septic tank placements as determined by the Henderson County Health Department; any waiver so granted shall be in writing and properly executed by BRTR, INC., or its successors or assigns, and shall be valid without the consent or joinder of any or all lot owners, and shall be binding upon all those who claim under or through the Developer;

4. All mobile units or other structures placed upon said lots shall be subject to the following requirements;

(a) All units shall be equipped with "tiedowns" immediately upon placement;

(b) All structures shall be underpinned with proper cinder or concrete block masonry underpinning, and covered with stucco upon placement. Stone or brick underpinning may remain exposed;

(c) All fuel oil or gas tanks shall be placed underground;

(d) Failure to properly complete the foregoing requirements of this subsection within thirty (30) days of placement of mobile units or other structures placed upon the said lots shall result in an automatic assessment in the amount of TWO THOUSAND DOLLARS ($2,000.00) to be levied against the lot and the lot owner by THE CINNAMON WOODS HOMEOWNERS ASSOCIATION, or, until such time as THE CINNAMON WOODS HOMEOWNERS ASSOCIATION is formed, the Developer . Such failure shall also constitute an authorization for THE CINNAMON WOODS HOMEOWNERS ASSOCIATION, or, until such time as THE CINNAMON WOODS HOMEOWNERS ASSOCIATION is formed, the Developer, to so complete the said foregoing requirements. The said sum of TWO THOUSAND DOLLARS ($2,000.00) shall be immediately due and payable to THE CINNAMON WOODS HOMEOWNERS ASSOCIATION. In the event that the cost of completing the said foregoing requirements is less than two thousand dollars, then the difference shall not be returned to the lot owner, but shall instead be the property of THE CINNAMON WOODS HOMEOWNERS ASSOCIATION.

5. All owners wishing to place a mobile home or structure on any lot, or wishing to replace (or add) siding, carport., patios, decks, exterior lighting, screened porches, covered walkways, landscaping, ancillary and accessory buildings, add on room(s), driveways or to make other improvements shall apply to the Developer prior to the installation or construction for approval of the exterior design and finished visual appearance of such mobile home or structure. The Developer shall withhold such approval for unsightly mess, shoddiness, and other visual qualities that may be damaging to the aesthetics of Cinnamon Woods. Approval or rejection must be made within thirty (30) days of receipt of written application or approval shall be automatic. Otherwise, approval shall be valid only if a permit is issued by the Developer. All mobile home units placed upon a lot must be new. Any improvements to the mobile unit which are required before said unit may be placed upon the site must be completed before the mobile unit is physically located on the site.

II

All lot owners shall become members of THE CINNAMON WOODS HOMEOWNERS ASSOCIATION upon acceptance of a Deed from the Developer, or a Grantee, successor or assign of the Developer; and further, each lot owner, by acceptance of said Deed agrees to be bound by the rules, regulations and maintenance obligations enacted by said association, and all lots shall be subject to the rules, regulations and maintenance obligations set forth in the By-Laws of said association. All lot owners, upon acceptance of a Deed of any lot, agree that each lot shall be subject to an initial water service charge of TWELVE DOLLARS ($12.00) per month per lot plus tap-on and connections charges. If the water system is served by the City of Hendersonville Water Department, its successor or assign, the above referenced water service charge shall be inapplicable when all water charges shall be determined by and payable to the City of Hendersonville Water Department, its successor or assign. A monthly maintenance fee shall also be established by said Property Owners Association for the maintenance of roads, community areas, and the general beauty of Cinnamon Woods. This fee shall be determined as follows:

The fee shall be the quotient of an equation where the numerator is the total charge for the above referenced maintenance chargeable to Cinnamon Woods residents, and the denominator is the number of property owners in Cinnamon Woods.

It is recognized that the use of that certain road named Marley Drive , which runs through "Butt Mountain Estates" is necessary to reach Cinnamon Woods. Therefore, the general upkeep and maintenance of that portion of Marley Drive necessary for access to Cinnamon Woods, including but not limited to the pavement , drainage, landscaping, sight screen and entrance at Roper Road , is a responsibility of the residents of Cinnamon Woods as well as the residents of "Butt Mountain Estates". Therefore, the expenses for the said maintenance shall be divided as in the immediately preceding subparagraph, except that the denominator is sum of the number of lots in Cinnamon Woods and the number of property owners in Butt Mountain Estates.

Each lot owner also agrees by acceptance of such deed that upon non-payment of said charges THE CINNAMON WOODS HOMEOWNERS ASSOCIATION shall have the right to file a lien against said lot and to enforce payment of said charges in the same manner as provided in the North Carolina General Statutes .

III

1. In addition to the foregoing restrictions, no lot owner may engage in any activity which would be offensive, disturbing or abusive to the other residents of the development; and further, the failure to act in accordance with the following requirements shall be considered as being per se violations of this paragraph:

(a) No animals shall be allowed on the premises of the lot, except for one domesticated household pet which may not be kept outside overnight or for any extended period of time;

(b) No junk cars or unsightly accumulation of garbage or trash shall be permitted;

(c) No "dishes" for the reception of television signals at all or antennas which exceed a seven (7) foot height above the roof line shall be allowed on the top of any structure, or shall be allowed to be placed on the property;

(d) No tent, shack or other temporary structure may be erected, placed or maintained on any lot, except by the Developer during the construction and sales period. Storage sheds and garages are allowed provided they are visually appealing;

(e) Each lot owner, including the Developer, with a mobile unit in place on site on a lot shall mow all grass land on said lot once every two weeks: each lot owner including the Developer, shall mow all other grass land on their property at least yearly. Failure to do so shall result in THE CINNAMON WOODS HOMEOWNERS ASSOCIATION doing the same and adding the cost to the owner's assessment.

(f) Exposed naked earth on an owner's lot shall not be permitted except for family garden plots. It shall be the responsibility of each owner to establish permanent vegetation or landscaping as soon as possible and no later than three months after any grading.

(g) Driveway connections from any lot shall have at least a fifteen (15) inch diameter culvert if they intersect existing drainage lines or ditches. failure to do so shall result in THE CINNAMON WOODS HOMEOWNERS ASSOCIATION doing the same and adding the cost to the owner's assessment.

(h) All driveway connections must be covered in gravel immediately upon construction. Failure to do so shall result in THE CINNAMON WOODS HOMEOWNERS ASSOCIATION doing the same and adding the cost to 'the owner's assessment.

(i) No fence shall exceed a height of four (4) feet and if such fence should be a "chain link" type it shall be green in color. No fence shall be barb wire or electric.

(j) All laundry to be dried in the open air must be hung on folding drying racks or a fold-up umbrella type clothes line. Such racks or lines may not be placed where they are objectionable to others, and must be taken down by 4:30 o'clock PM each day of use and stored.

(k) Only cars and trucks in regular use by the resident(s) of the lot may be parked in the driveway. All other vehicles, including travel trailers, boats, motorcycles and the like shall be kept in the back or to the side of the house and out of view as much as possible: no such vehicle shall be kept on the lot if it creates an objectionable view, or if it is kept on a hoist or on blocks.

IV

BRTR , Inc., its successors or assigns, shall not sell , grant or convey a right of way or easement of any nature over Marley Drive or the roods within Cinnamon Woods Subdivision for the use, benefit or service of property located outside of the boundaries of Cinnamon Woods Subdivision as shown on the plat recorded in Plat Cabinet A, Slide 243A and Plat Cabinet A , Slide 244, Henderson County Registry. BRTR, Inc., its successors or assigns, shall not grant permission to any party to use Marley Drive or the roads within Cinnamon Woods Subdivision for the use, benefit or service of property located outside of the boundaries of Cinnamon Woods Subdivision as shown on the plat recorded in Plat Cabinet A, Slide 243A and 244 Henderson County Registry.

V

Except as expressly provided herein, no lot within Cinnamon Woods Subdivision may be divided or subdivided, and no portion of any lot within Cinnamon Woods Subdivision, other than an entire lot, may be sold, granted, conveyed or leased, it being the intent and purpose of this provision that all lots within Cinnamon Woods Subdivision shall consist of at least approximately one-half (1/2 ) acre, as shown on the plats of Cinnamon Woods Subdivision as recorded in Plat Cabinet A, Slide 243A and Plat Cabinet A, Slide 244A, of the Henderson County Registry. Notwithstanding the foregoing, any group of two or more lot owners in Cinnamon Woods Subdivision may subdivide one or more lots which are contiguous with their property. However, such lot owners may not convey any tract or parcel of land which, within its consolidated perimeter, contains less than one complete lot as shown on the aforesaid plats. If such a group of property owners should so divide such a lot, all setback requirements will apply to the same extent as to any other lot, except that such requirement will be measured from the outer boundary of the consolidated perimeter, and not the previous lot lines.

VI

No road, right of way , lot or portion of a lot within Cinnamon Woods Subdivision shall be used as access to any real property located outside the perimeter of Cinnamon Woods Subdivision as shown on that plat recorded in Plat Cabinet A, Slide 243A and 244, Henderson County Registry, it being the intent and purpose of the parties hereto that all roads and rights of way within Cinnamon Woods Subdivision be used solely for the use and service of lots within Cinnamon Woods Subdivision and that the northern portion of Marley Drive be used solely for the use and service of lots within Cinnamon Woods Subdivision and of the real property within Butt Mountain Estates.

VII

This declaration shall operate as covenants running with the land for the benefit of any and all persons which may in the future own any of the lots in said development and for the benefit of all owners of real property within Butt Mountain Estates; and further, such owners are hereby specifically given the right to enforce the provisions of this Declaration for any proceedings, at law or in equity, against any other person who may violate any of these provisions set forth herein, 'and to recover damages suffered as a result of any violations thereof, or to apply for any injunctive relief that any Court may grant.

VIII

This Declaration shall take effect immediately upon recordation in the Henderson County Registry , and shall be binding upon any and all lot owners in said development for a period of fifty (50) years from the date of recordation. After fifty (50) years from the date of recordation, the Declaration shall thereafter automatically be renewed for additional consecutive twenty-five (25) year periods unless amended in writing signed by 75% of all the owners of lots located in Cinnamon Woods Subdivision and the property boated in Butt Mountain Estates.

IN WITNESS WHEREOF, the undersigned Developer has caused this Declaration to be signed in its name by its President, attested by its Secretary, and its corporate seal to be affixed hereto, the day, month, and year first above written.

BRTR, INC.

President

ATTEST:

Secretary

(SEAL) (SEAL)

WILLIAM F. WHITMIRE LOUISE WHITMIRE

(SEAL) (SEAL)

WILLIAM KILMER PATRICIA C. KILMER