WHEREAS, that Townsend Enterprises, LLC (the “Owner”) is the owner of the following described lands lying in Stone County, Arkansas, and to-wit:

A tract of land being all that part of the east half of the southeast quarter of Section 3, Township 14N, Range 11W lying south and west of State Highway 87 containing 74.73 acres in total and subject to the right-of-way of State Highway 87; (“the Land”), and

WHEREAS, the Land has been surveyed by Eugene Gorton, Professional Land Surveyor #1355 and recorded in Plat Cabinet B, SL 42-D in Stone County, Arkansas, and

WHEREAS, the Land has been plated (the “Plat”) and subdivided into lots numbered 1 through 48 (the “Lots”) and said Land is named Indian Knob Development-South and said Plat is recorded in Plat Cabinet ___, SL___ in Stone County, Arkansas, and

WHEREAS, the Owner hereby donates and dedicates to the public forever an easement and right –of – way upon, over, and across said streets as shown on said Plat, to be used as public streets, and

WHEREAS, the Lots are numbered from 1 to 48 on said Plat and any and every conveyance of any Lots out of said Land as hereinbefore described shall always and forever be held and deemed to be a sufficient description and conveyance thereof.  The Lots are as marked and blazed by the aforementioned survey, and

WHEREAS, easements are shown on said Plat for streets, setbacks, sewer, water, electric, natural gas, cable TV, telephone, drainage and the development’s sign and entrance posts.  All lot owners will be required to grant easements to utility companies and/or the City of Mountain View for the purpose of providing other lot owners utility, water, sewer or drainage service and all lots will be subject to easements for utility purposes.

Easements for utilities are for, but not excluded to, sewer, water, electric, natural gas, cable TV, telephone and drainage.  Lot owners will be required in the future to grant those rights to the person, firms or corporations engaged in the supplying of such utility services to use and occupy such easements and to have free ingress and egress therefrom for the installation, maintenance, repair and replacement of such utility services.  No improvements, trees, fences or other hindrances shall be placed upon such easement areas that will interfere with the installation, operation or maintenance of such utility services, or which may obstruct, retard or change the direction of flow of drainage channels.  In the event such improvements, trees, fences, or other hindrances are grown, built or maintained within the areas of such easements, no utility or other such affected party shall be liable for the destruction or repair of same; and

WHEREAS, Indian Knob Development – South is located within the city limits of the City of Mountain View, Stone County, Arkansas and therefore is subject to all of the restrictions and conditions pertaining to such location, and

WHEREAS, Indian Knob Development- South is zoned R-1 and is subject to all of the restrictions and conditions pertaining to such zoning, and

WHEREAS, by the Plat and Bill of Assurance, Townsend Enterprises, LLC intends to create for its benefit, and for the mutual benefit of all future owners of the Land certain rights, easements, restrictive covenants and conditions governing the use, enjoyment and maintenance of the Land;

NOW, THEREFORE, the following Restrictive Covenants shall apply to Indian Knob Development-South.

1.      LOT USE – All lots will be used for single family residential housing only.  Multi-family housing or any type of commercial use is not allowed.

2.      DIVISION OF LOTS – Only one single-family residence per lot is permitted. There shall be no development or dividing of any lot.

3.      RESIDENCE SQUARE FEET – All residences must be constructed on-site and must contain a minimum of 1,800 square feet of enclosed, heated living area excluding garages, carports, basement, crawl spaces and any other exterior structures.The minimum square footage of the ground level of the structure must be at least 1500 square feet.

4.      RESIDENCE CONSTRUCTION– All residences will be built to meet all applicable codes, be of quality construction and materials and be of good appearance.

5.      RESIDENCE CONSTRUCTION TIME LIMIT – Once construction begins on a residence, it must be completed within a reasonable time, but in no event later than one (1) year after commencement of construction.

6.      RESIDENCE DIRECTION – All residences will be constructed on the lots so that the front of the residence faces the development access road.  Lots with access roads on two sides have an option.

7.      ALLOWED BUILDINGS – Residences will be allowed to have connected or disconnected garages, carports or storage sheds.  Any detached buildings shall be of attractive construction and / or similar design as the primary residential structure.

8.      RESTRICTED BUILDINGS – No manufactured homes, mobile homes, tents, shacks or trailers will be allowed.  No old houses can be relocated and used as storage sheds.

9.      TEMPORARY FACILITIES – During construction on any lot, temporary offices, storage sheds, portable toilets, trailers, parking areas, access roads, fences, etc. may be located as inconspicuously as possible on the lot.  Temporary construction facilities shall be promptly removed when construction is completed, however, no temporary structures shall be used on any lot anytime as a residence, either temporarily or permanently.

10.    BUSINESS USE – No trade or business may be conducted in or from any lot and / or residence.  Conducting any kind of business (including child care services) is prohibited—except that any lawful business conducted “at home” by computer, mail, or telephone is permissible if customers, clients, patients, and other business associates do not come to your residence for business purposes.

11.  FENCES – No fence shall be erected between the residence, or any other structure on the lot, and the Development access road.  All fences shall blend with the residence constructed with the lot.

12.  SETBACKS – Setback requirements are set forth on the Recorded Plat for Indian Knob Development – South and these may be amended by zoning ordinance by the City of Mountain View, Arkansas.

13.  UTILITY EASEMENTS – All lot owners will be required to grant easements to utility companies for the purpose of providing other lot owners utility services, therefore all lots will be subject to easements for utility purposes.

14.  FUTURE ROAD EASEMENT – Lots 26 and 27 will be subject to a future road easement as noted on the Plat.

15.  DEVELOPMENT SIGN AND ENTRANCE POSTS – Lots 1 and 48 will be subject to an easement along the entranceway from State Highway 87 to allow for the development sign and entrance post.

16.  SURFACE DRAINAGE – All lots will be subject to a storm water easement and / or drainage right-of-way, which conforms substantially to the line of such storm drainage.  In no way shall natural drainage ways be dammed, blocked or have their course changed.  No lot owner shall dispose of toxic or hazardous material via storm gutters or, the natural storm drainage system.

17.   POND – Lot 39 contains a large pond that is part of the drainage plan for the Land.  This pond cannot be destroyed but must be maintained in the future to remain and continue to be an integral part of the drainage system.

18.  VACANT LOTS – The owner of any vacant lot shall keep the lot in such condition as to not detract from the Development.  At a minimum, vacant lots must be cleaned of debris.  The grass is not allowed to exceed 18” in height and is to be mowed and / or bush hogged at least four (4) times per year.

19.  LOT CARE – All lots, residences, buildings, landscaping, fences, driveways and all other improvements in said Development shall be kept in good repair. It shall be the responsibility of each Lot Owner to prevent the development of any unclean, unhealthy or unsightly condition of the lot.  All improvements also shall be maintained in good condition and painted as necessary in order to present a neat and orderly appearance that will not be a nuisance or substantially detract from the rest of the neighborhood.

20.   PURCHASERS ASSURANCES – The Purchasers of Lots in this development assure the Owner and other property owners in the development that:

a.      A builder, contractor or anyone performing services on the premises of said property shall not cause conditions to prevail on the premises by allowing debris, rubble and building materials to be deposited in an unsightly or careless manner on the premises during construction nor to remain thereafter, nor to be deposited at all on the streets of development;

b.      No burning shall be initiated on any lots in the development except during the construction phase.

c.       No equipment shall be placed on the streets of this development in such a manner as to cause destruction of the streets, curbs, and gutters and if any destruction does occur by reason of the acts of any contractor or individual performing services for the Purchaser of said lot, the Purchaser shall be required to pay the reasonable cost of repairs caused by said workmen and agree to hold harmless the Owner from loss, if any, sustained thereby.

The Purchaser agrees to hold harmless the Owner from any loss by reason of failure to comply with the provisions contained in subsection paragraphs (a), (b), and (c) herein above.

21.  LAWN CARE – All lawns must be kept mowed and maintained so as to prevent the growth of weeds and other unsightly vegetation.

22.  PROPER DRAINAGE – Any road or driveway constructed on the lot shall have a sufficient number of culverts and / or bridges to permit unrestricted and proper drainage of water from across the lot and any adjoining property.

23.      EROSION CONTROL – Prior to any grading on any lot, the necessary sedimentation and erosion control measures shall be in place.  A silt fence is required around all graded areas on the down slope of the lot.  Erosion control codes shall be followed throughout the construction period and conform to ADEQ (Arkansas Department of Environmental Quality) standards.

24.      CURBS – The curbs are an integral part of the development drainage plan and are designed to be driven over to enter the lot driveway.  Curbs cannot be altered without the permission of the Mountain View Planning and Zoning Commission.

25.  PARKING – Vehicles, including motorcycles, recreational vehicles and boats shall be parked only in the garage or driveway of the residence.  No parking shall be permitted on any street.  Each lot owner shall provide adequate off-street parking for vehicles normally used by the occupants of the residence.

26.  UTILITIES – Utilities will be provided to each lot.  Service lines of all utilities from the provided access point to the residence or other buildings will be placed in underground conduits or cables and buried or otherwise concealed.

27.  HIGHWAY 87 – No direct access to State Highway 87 is allowed from any lot bordering such highway. The only entrance and exit to Indian Knob Development, south of State Highway 87, is on the Development road provided.

28.  TRASH AND GARBAGE – No lot or any portion thereof shall be used or maintained as a dumping ground for rubbish.  Trash, garbage and other waste shall be kept in closed, sanitary containers until disposed of elsewhere.  All rubbish, trash and garbage shall be regularly removed from the lot and shall not be allowed to accumulate on the lot.

29.  JUNK VEHICLES – No automobiles, RV’s, motorcycles, etc that are not licensed and in good working order can be parked on the lots except if they are parked entirely within a garage or other storage building on the lot.

30.  DISCHARGE OF FIREARMS AND HUNTING – For the safety of other owners, no hunting will be allowed and the discharge of any firearms is prohibited.

31.   NUISANCES – No noxious, loud, illegal or offensive activity shall be carried on upon any portion of the lot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to any other persons, property owners or the neighborhood.

32.   ANIMALS AND PETS – No wild animals, livestock, poultry or other farm animals of any kind shall be raised, bred or kept on any portion of the lots except that dogs, cats or other usual and common household pets are permitted.  No pets shall be kept, bred or maintained for any commercial purpose.  Pets shall be kept inside the residence or in a fenced yard.  Pets are not allowed to roam outdoors except on a leash and attended by a person.

33.   CHRISTMAS LIGHTING – Christmas lighting or any other lighting shall be limited to such as in good taste.  Christmas lighting shall not be placed on any dwelling or lot earlier than November 15th of each year and must be removed not later than the following January 15th.

34.   SIGNS – No signs, billboards, posters or advertising devices shall be permitted upon any of the lots other than real estate signs advertising property for sale or political signs within five (5) months of an election. These signs shall not exceed 4 square feet in area and no more than one such sign shall be placed in the Development for any one property, which is being advertised for sale.  The Developer of the Development shall be permitted to erect such signs, as he desires in advertising the lots for sale until such time as all lots have initially been sold.

35.   SEWER SYSTEM – No privy, cesspool, septic tank field or disposal plant shall be installed or maintained on any lot and all residences and permitted accessory buildings shall have the plumbing connected to the City sanitary sewer system.

36.  ANTENNAS – Antennas shall be placed only where they do not detract from the adjoining lots or from the development.

37.   CAMPING – Camping on the lots is prohibited.

38.  BINDING – Each and all of the Restrictive Covenants as set forth in this document shall be binding on present and future owners, their heirs, successors and assigns.

39. ENFORCEMENT – These Restrictive Covenants may be enforced by any person, partnership, corporation or other legal entity who owns any real property located in said development and that would be adversely affected by the breach thereof.

40. SEVERABILITY – Invalidation of any one of these Restrictive Covenants by judgment or court order shall in no way effect any of the other provisions which shall remain in full force and effect.

41.   TERM – These Restrictive Covenants will remain permanently in effect but may be amended, modified, extended, changed or cancelled in whole or in part from time to time by a written instrument signed and acknowledged by the owner or owners of fifty-one percent (51%) or greater of the land described herein as Indian Knob Development-South.