DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
GRAND OAK ESTATES SUBDIVISION
BULLITT COUNTY, KENTUCKY

1. EXISTING PROPERTY: The real property which is subject to this Declaration is located in Bullitt County, Kentucky and is more particularly described as follows:
   1. BEING Lots 1 through 89 inclusive as shown on the plat of Grand Oaks Estates, Section 1 of record in Plat and Subdivision Book ______, Page ______, in the office of the Clerk of Bullitt County, Kentucky. BEING part of the same property acquired by Developer by Deed dated ____________________________, of record in Deed Book _______, Page ______ in the office of the Clerk of Bullitt County, Kentucky.
2. ADDITIONS TO EXISTING PROPEORTY: Additional lands may become subject to this Declaration in any of the following manners:
   1. The Developer may but is not required to add additional land, currently part of a general comprehensive plan, as other sections of Grand Oak Estates within 20 years from January 1, 2005. Developer reserves the right to create cross easements and to restrict all the properties according to the terms of this Declaration. The common areas initially covered by this Declaration shall inure to the benefit of the owners of any new lots which may become subjected to this Declaration and the common areas allocable to the owners of any new lots shall inure to the benefit of the owners of lots recorded earlier, each to enjoy the common areas of the other and to have and to hold the same as if each new lot had been developed and subjected to this Declaration simultaneously. All additions shall be made by filing with the Office of the Clerk of Bullitt County, Kentucky, a Supplementary Declaration of Covenants, Conditions and Restrictions with respect to the additional property, which shall extend the scheme of the covenants and restrictions of this Declaration to such property. The Supplementary Declaration may contain additions and Deed Restrictions Grand Oak Estates 2 25 05.doc 2 modifications of the covenants and restrictions contained in this Declaration as maybe necessary to reflect the different character if any, of the added properties and as are not inconsistent with the scheme of this Declaration.
   2. Other Additions. Additional residential property, common areas and easements which are not presently a part of the general plan of development may be annexed or granted into Grand Oak Estates only by the Developer.
3. COMMON AREAS: Every Lot Owner shall have a right and easement of enjoyment in and to the common areas, which shall be appurtenant to and shall pass with the title to every Lot. “Common area(s)” means and refers to all non-residential Lots and areas, which are shown on any recorded final subdivision plat within any portion of Grand Oak Estates Subdivision made subject to these Restrictions. Title, ownership and responsibly of these Common Areas and their improvements shall passed to a non-profit Homeowners Association which shall be created pursuant to Article IV.
4. DEVELOPER RESERVATIONS: The Developer reserves the exclusive right to grant easements for utilities or any other purpose over or under any lot in the development, provided said grant of easements shall not interfere with the placement of any residence to be constructed or constructed on any lot. The Developer reserves the exclusive right to extent streets to contiguous parcels of land; and this right extends to streets that shall be constructed and interpreted to permit a Developer to extend a street through a platted lot.

1. PRIVATE RESIDENCE ONLY USE:
   1. Lots shall be used only for private single-family residential purposes. No structure shall be erected, placed or altered or permitted to remain on any lot except one single family dwelling designed for the occupancy of one family (including any domestic servants living on the premises), not to exceed two and one-half stories in height and containing a garage which must be attached or under the residence. An additional garage or storage facility is permitted only if specifically approved by the Developer or its designee and in accordance with Article III, Section1. This section does not prevent temporary tool sheds or field offices used by a builder or Developer while the subdivision is under construction and such structure shall be removed when construction or development is completed.
   2. No outbuilding, garage, trailer, basement, tent, shack, barn or structure other than the main residence erected or placed on a lot shall at any time be used as a residence, temporarily or permanently.
   3. No trade or business of any kind shall be conducted on any lot, nor shall anything be done thereon which may become an annoyance or nuisance to the neighborhood. Notwithstanding the provisions hereof, a new house may be used by the developer or builder thereof as a model home for display or for the builder’s own office, provided said use terminates within eighteen months from completion of the house
   4. No lot may be subdivided nor shall any lot size be altered for the purpose of creating a secondDeed Restrictions Grand Oak Estates 2 25 05.doc 3 buildable lot.
   5. Lot 45 shall remain an undeveloped open space and no permanent family residence or structure shall be constructed thereon.
2. LOT USE RESTRICTIONS: All construction and alterations of homes and garages and any construction of other structures, fences, walls and placement of fixtures and yard objects not expressly allowed in this Section are subject to the approval process set forth in Article III, Section 1.
   1. Lot owners may construct, erect or maintain recreational structures such as a small playhouse, swing set, jungle gym, gazeboes or the like on any Lot provided such structure is located in the rear yard and does not exceed 15 feet in length or 12 feet in height.
   2. All proposed fences and fence material types shall be submitted to the developer or its designee for approved in writing pursuant to Article III, paragraph 1 b. All fences and their locations must be approved. As general guidance, fences will normally be permitted in rear yards and should be constructed of wood, masonry, wrought iron (or synthetic equivalents) and chain link (if coated in black, brown or green) and be of a height of 4 feet. Corner lots and lots that back up to a street may have alternative screening requirements. No fences of any type are permitted in front yards.
   3. All in ground pools and aboveground swimming pools (exceeding 18 inches in height) shall be approved in writing by Developer or his designee in accordance with Article III, Paragraph 1 b. All pool plans submitted shall place the pool entirely in the rear yard, have a deck placed around the pool’s perimeter and meet any other local laws.
   4. No ornamental yard objects, statuary or sculpture, etc. shall be placed in the front or side yards of any Lot unless design and placement are approved in writing by Developer.
   5. No outside clothes lines of any kind shall be erected or placed on any Lot.
   6. No antennas, satellite dish (except for the small 36 dishes inches or less) other receivers and transmitters shall be erected or placed on any lot or structure unless placement are approved by the Developer and/or its designee in advance of construction. The small satellite dish permitted shall only be placed on the backside of the house adjacent to the rear yard so as to not be visible from the street in front of the house.
   7. No trailer, truck, motorcycle, commercial vehicle, camper trailer, motor homes, camping vehicle, boat, or any vehicle not normally used as family vehicle car, van, pickup truck shall be parked or kept on any lot at any time, unless housed in a garage, storage building or basement. No trailer, boat, truck or other vehicle, except an automobile, shall be parked on any street in the subdivision for a period in excess of twenty-four hours in any one calendar month. No vehicle shall be continuously or habitually parked on any Street or public right-of-way or in front yard. Parking of personal vehicle in the grass is prohibited.
   8. Lot owners are limited to two dogs and two cats provided they are not kept, bred or maintained for any commercial or breeding purposes and the same must be confined by owner and not be permitted at large. No persistent barking or highly aggressive pets are allowed. No animals, including horses, cattle, swine, goats, poultry, sheep, uncaged reptiles, or other non-domesticated or exotic animals shall be raised, bred or kept on any Lot.Deed Restrictions Grand Oak Estates 2 25 05.doc 4
   9. No sign for advertising or for any other purpose shall be displayed on any Lot or on a building or a structure on any Lot, except one sign by the builder and one sign by a real estate agent or Lot Owner advertising the sale thereof, which shall not be greater in area than six (6) square feet each. This restriction shall not prohibit placement of occupant name signs and Lot numbers as allowed by applicable zoning regulations. The Developer reserves the right to post larger advertising signs while the subdivision is under construction, said signs to be removed upon the sale of all lots.
   10. The lot owner is not permitted to conduct any dirt moving or recontoring of a lot, which does not conform to the general drainage plan for the subdivision or allow dirt or debris to escape the lot in violation of applicable laws. Additionally, no storm water drain, roof downspouts, sump pumps or any ground water shall be introduced into the sanitary sewage system.
   11. No A.T.Vs, dirt bikes, go-carts or any other off road vehicles are permitted to operate on any lot, unimproved lot, sidewalks, streets or vacant land in the Grand Oak Estates Development or adjacent property.
   12. No hunting or discharge of firearms is permitted.
3. DUTY TO MAINTAIN LOT AND DWELLING:
   1. The lot owner from the date of purchase shall have the duty to keep the grass on the lot properly cut, to keep the lot free from weeds and trash, and to keep it otherwise neat and attractive in appearance. Should any owner fail to do so, then Developer or its designee may take such action, as it deems appropriate, including mowing, in order to make the lot neat and attractive. In expenses incurred may be recouped through the process outlined in Article V.
   2. The Lot Owners shall, at their sole cost and expense, repair their residence, keeping them in a condition comparable to that at the time of its initial construction, excepting only normal wear and tear. If all or any portion of a residence is damaged or destroyed by fire, or other casualty, then the owner shall, with all due diligence, promptly rebuild, repair, or reconstruct such residence in a manner which will substantially restore it to its apparent condition immediately prior to the casualty.
   3. The lot owner shall have the duty to see that all garbage or other waste on the lot is kept in sanitary containers. Such containers to be placed in a manner and location so as to not be visible from the street. They shall be brought to the curb only on collection day and promptly returned to the nonvisible location thereafter.
   4. Each Lot Owner by acceptance of a deed for a Lot, whether or not it shall be so expressed in such deed, covenants and agrees to become a member of the Homeowners Association and have all rights and privileges of membership as set forth in that Association Article of Incorporation and Bylaws. This includes voting rights, right to use common areas and the obligation to pay to the Association (i) annual assessments or charges, and (ii) special assessments for capital improvements as established in the Association’s Article of Corporation and By-laws.
4. REMEDY: If a lot owner fails to comply with the provisions of Article II in maintaining a home, the Developer or his designee may take such action as necessary to make the lot owner come in compliance with these requirements and restrictions as allow in Article V.Deed Restrictions Grand Oak Estates 2 25 05.doc 5

1. APPROVAL OF CONSTRUCTION ACTIVITIES REQUIRED:
   1. Structures: All structures including homes, garages and outbuildings to be erected, placed or altered and any home renovations involving external changes to the footprint or roofline of the structure shall be consistent with the restrictions and subject to approval process by the developer or his designee. The lot owner shall submit construction plans, building specifications and a plan showing (I) the location of improvements on the Lot; (II) views of the house (front, rear and side elevations); (III) the relationship of the finished grade of the front or side yard to the top of the curb; (IV) the type of exterior material (including delivery to Developer of a sample thereof, if requested); and (V) the location and size of the driveway (which shall be concrete), to the Developer or his designee for approval in writing before construction begins. All lot owners or their builder shall summit two (2) copies of plans, one plot plan, and a Builder Check List (supplied by the developer) for approval. The Developer reserves the right to require a homeowner to have an experienced individual initially construct or perform renovations on a house.
   2. Other construction, fences, fixtures or ornamental yard objects: All fences, walls, in ground and above-ground pools, yard objects, and other fixtures or items placed on a lot not expressly allowed under Article II are subject to review and written approval by the developer or his designee. A plan showing the location on the lot of the proposed construction, materials types, photographs or other means of depicting the item shall be submitted to the developer or his designee for approval prior to construction or placement of the item.
   3. No structure may be moved to or relocated on any lot within the subdivision known as Grand Oak Estates. No pre-fab or modular homes can be placed on lots and all homes are to be built by conventional construction methods.
2. BUILDING MATERIALS; ROOF PITCH; MINIMUM FLOOR AREAS:
   1. The exterior building material of all structures shall be 80% brick; stone, brick veneer or stone veneer or a combination of same, and shall extend to ground level.
   2. The roof pitch of any residential structure shall not be less than a plane of, 7 inches vertical for every plane of 12 inches horizontal.
   3. The following shall be the minimum floor areas for homes approved under this Article:
      1. The area of a one-story house shall be a minimum of 1,400 square feet.
      2. The area of a one and one-half story house shall be a minimum of 1,600 square feet.
      3. The ground floor area of a two-story house shall be a minimum of 875 square feet with a total floor area of 1,800 square feet exclusive of the garage.
      Finished basement areas, garages and open porches are not included in computing floor areas or square footage.
3. SETBACKS: No structure shall be located on any Lot nearer to the front lot line or the side Street line than the minimum building setback lines shown on the recorded plat, except bay windows and steps may project into said areas, and open porches may project into said areas not more than six feet. Developer may vary the established building lines, in its sole discretion where not in conflict with applicable zoning regulations.Deed Restrictions Grand Oak Estates 2 25 05.doc 6
4. GARAGES: All Lots shall have at least a two-car attached garage unless otherwise approved in writing by Developer. Garages, as well as structures, are subject to prior plan approval under Section 1 above. No more than one detached building may be erected on a lot. No detached garage or storage building erected on the premises shall be larger than two-car capacity (576 sq. ft.). Any approved detached garage or out building must be built with the same materials as the veneer on the house. The sides and rear shall be brick. The roofing materials shall be of matching color and the same material as is on the house.
5. DRAINAGE, EROSION AND SEDIMENT CONTROL: During construction the lot owner and/or builder shall:
   1. Conduct all grading subject to the acceptance and approval of Developer and shall conform to the approved construction and drainage plans of the Development. The Lot owner shall insure that he has the detailed drainage plan for his lot and the overall construction and drainage plan for the subdivision. The information is available upon request from the Developer.
   2. Insure that no storm water drains, roof downspouts, sump pumps or any ground water shall be introduced into the sanitary sewage system.
   3. Employ practices to prevent mud, dirt, silt, gravel or other debris from washing, draining or being otherwise deposited upon any street in Grand Oak Subdivision or adjoining lot in accordance with the Federal Clean Water Act, which has been adopted in the Commonwealth of Kentucky. This includes silt control, which is required at all times during construction.
   4. The lot owner is responsible for all drainage ditches and swales that have washed prior to the rough and finish grading of the lot. If drainage is blocked or altered the lot owner shall correct problem at his expense or the Developer may correct problem and the Lot Owner shall be responsible for any costs or expenses to correct problem.
6. UTILITY SERVICE:
   1. Each Lot Owner’s utility service lines shall be underground throughout the length of the service line from the street to the customer’s house or out building. Title to the service lines shall remain in, and the cost of, installation and maintenance thereof shall be borne by, the Lot Owner upon whose Lot the service line is located.
   2. All utility easements and reservations are shown on the record plat for each phase of Grand Oak Estates. These easements shall be maintained and preserved in their present condition and no encroachment thereon and no change in the grade or elevation thereof shall be made by any person or Lot Owner without the express written consent of the utility company and the developer or his designee.
7. LANDSCAPING, SIDEWALKS, DRIVEWAYS AND TREES:
   1. After the construction of a residence, the lot owner shall grade and sod the front and side lots of the residence. Sod must extend to the pavement of any abutting streets, unless otherwise approved by Developer. Rear yards may be seeded if covered with straw.
   2. Each Lot Owner shall cause a sidewalk to be constructed on each Lot within six months from the start date of construction, or when residence on 80% of the lots in this Section has begun, whether or not the Lot Owner has started construction on that particular Lot. The sidewalk shall be 48 in. wide, a minimum of 4 in. thick and is to have fiber mesh mixed within the concrete.Deed Restrictions Grand Oak Estates 2 25 05.doc 7 Saw cuts or control cuts are to be no more than 48 in. apart. There shall be a light broom finish and the sidewalk shall be constructed so that uninformative placement will be maintained throughout the development. A set of specifications may be obtained from the Developer.
   3. Upon final completion of construction of a residence, the Lot Owner shall cause to be planted two trees (at least two inches in diameter) in the front yard of the Lot and where the Lot is a corner Lot, two such trees in the street side yard. These trees shall be in addition to any trees planted in the right-of-way by Developer or other performing party. No tree shall be removed from any Lot without the prior written approval of Developer.
8. MAIL AND PAPER BOXES: A uniform mailbox and paper holder for the subdivision shall be selected by the Developer and shall be placed on the lot at Lot Owner’s expense.
9. ADDITIONAL OBLIGATIONS DURING CONTRUCTION:
   1. Keep Clean Streets: The builder shall keep the street clean. During the course of construction, mud and dirt shall be cleaned from the tires of construction vehicles before they travel on the streets of this subdivision. Under no circumstances shall a motor vehicle cross a lot to reach construction on another lot. The builder shall make any repairs necessary, should this occur.
   2. Duty to inspect and report: The builder shall inspect the curbs and roadway. If any cracks or defects are found, immediately notify Developer in writing of such defect and meet on site with developer. The builder shall be responsible for damages done to the roadway and curbs by tractors, trucks, equipment etc., in his employ and shall make repairs within thirty (30) days after completion of the dwelling. The builder shall also insure that all cuts made by the utility companies in the roadway in front of the lot are properly repaired by said companies.
   3. Time is of the essence: The construction work on any building shall be completed within one (1) year from the initial start. Such work shall not be complete unless the building is finished in every respect in its interior and exterior including garage, driveway, sidewalks, landscaping, etc.
10. REMEDIES: If a lot owner or his builder fails to comply with the provisions of Article III in constructing a home, the Developer or his designee may take such action as necessary to make the lot owner come in compliance with these requirements and restrictions. If after written notice to the lot owner compliance is not obtained, the Developer may correct the non-compliance. The Lot Owner shall immediately, upon demand, reimburse Developer or other performing party for all expenses incurred in so doing, together with allowable statutory interest. The Developer shall have a lien for such expenses and statutory interest on that Lot and the improvements thereon to secure the repayment of such amounts. Such lien may be enforced by foreclosure against that Lot and the improvements thereon, but such lien shall be subordinate to any first mortgage thereon.
11. OBLIGATION TO CONSTRUCT OR RECONVEY: If within twelve (12) months after the date of conveyance of a Lot without a dwelling thereon, the Lot Owner has not begun in good faith the construction of a single family dwelling approved according to this Article, the Developer may elect to repurchase back any and all Lots on which construction has not commenced for the original purchase price in the deed, less any closing cost, unpaid taxes, unpaid assessments, or liens on said Lot or Lots. Upon Developer’s written notice of this election, the Lot Owner shall timely deliver possession of said Lot or Lots to Developer by deed of special warranty for failing to comply with this provision. If any Lot is to be resold for any reason, the Developer shall have first right of refusal to purchase at the original purchase price.Deed Restrictions Grand Oak Estates 2 25 05.doc 8

1. ESTABLISHMENT: There shall be established a Homeowners Association and each lot owner by acceptance of a deed agree to accept membership and shall abide by the associations by-laws, including payment of annual and special assessments.
2. PURPOSE: The purpose of the Homeowner Association shall be to promote the social welfare and serve the common good of the members and the subdivision. The Association shall enforce the terms of the these Declaration of Covenant, Conditions and Restrictions; provide for maintenance and improvements of common areas and subdivision amenities such as fences, street lights, plantings and signage; and assess and collect annual and special assessment to pay for said maintain.
3. POWERS: The Homeowners Association shall establish its duties and powers pursuant to it Article of Incorporation and its By-Laws. Its powers shall include all general corporate powers granted to a nonprofit corporation in order to carry out its duties and purpose.
4. MEMBERSHIP: It shall have two classes of membership initially. Class A membership will be for lot owners. Class B membership will be for the developer as the original lot owner and will cease to exist after the developer ceases to be a lot owner in the subdivision. The Developer as a Class B lot owner is not subject to annual or any special assessments.
5. DESIGNEE: The Association shall serve as the designee for the Developer as set forth in this Declaration at the time these rights are conveyed by the Developer to the Association.

1. ENFORCEMENT: Enforcement of these restrictions shall be by proceedings at law or in equity, brought by any Lot Owner or by Developer or his designee against any party violating or attempting to violate any covenant or restriction, either to restrain violation, to direct restoration and/or to recover damages. If any Lot Owner, the Developer or his designee is required to employ legal counsel to enforce any of the provisions or restrictions of this Declaration or exercise any of the remedies provided for herein, the party violating a provision or restriction of this Declaration shall pay all legal expenses, including court costs and attorney fees, incurred by the party enforcing these restrictions. The party enforcing these restrictions shall be entitled to file a lien on the Lot of the party violating these restrictions to secure payment of all expense incurred in brining and lot into conformance with these restriction and for reimbursement of legal expenses. Failure of any Lot Owner or Developer to demand or insist upon observance of any of these restrictions, or to proceed for restraint of violations, shall not be deemed a waiver of the violation or the right to seek enforcement of these restrictions and the exercise of any remedy provided for herein or, at law or in equity shall not preclude the exercise of any other remedy available at law or in equity.
2. SEVERABILITY: Invalidation of any one of these covenants or restriction by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect.Deed Restrictions Grand Oak Estates 2 25 05.doc 9
3. INCORPORATION INTO DEED: The above covenants, reservations and restrictions shall be incorporated verbatim or by reference in every deed hereafter issued conveying any part of the premises above described.
4. AMENDMENTS TO THE DECLARATION OF RESTRICTIONS: These Declaration of Covenants, Conditions and Restrictions may be cancelled, altered or amended for the first thirty years by the Developer until he sells 90% of the lots subject to these Declarations. After 90% of the lots subject to these Declarations are sold a 75% majority vote is required to cancel, alter or amended the terms of these Restrictions.
5. RESTRICTIONS RUN WITH LAND: Unless cancelled, altered or amended under the provisions of this Article, the provisions of this Declaration shall run with the land and shall be binding on the Lots, the owners of each Lot and all parties claiming under them, for a period of thirty (30) years from the date this Declaration is recorded. After such thirty (30) years, this Declaration shall be deemed extended automatically for successive periods of (10) years, unless and until an instrument signed by at least seventy-five percent (75%) of the Lot Owners of the Lots subject to this Declaration has been recorded in the aforesaid Clerk’s office, agreeing to change this Declaration in whole or in part and the term hereof; provided, however, that if Developer, its designated successors or assigns, as applicable, then owns any Lot, or any portion of Grand Oak Estates, or if any portion of Grand Oak Estates remains un-platted as a phase, this Declaration may not be so changed in whole or in part without the prior written consent of Developer in its sole discretion. From the date of this Declaration and for so long hereafter as Developer, its designated successors or assigns, as applicable, owns any Lot or any portion of Grand Oak Estates (i) this Declaration may hereafter be unilaterally amended by Developer to bring the terms and provisions hereof in compliance with any applicable governmental law, rule, regulation, order, decree, judgment or ordinance, and Developer may otherwise unilaterally amend this Declaration as Developer may elect in its sole discretion, provided, that any such amendment under this subpart (ii) shall not materially adversely affect the then existing private single-family residential nature of the developed residential sections of Grand Oak Estates. At such time as either Developer, its designated successors or assigns, as applicable, owns any Lot or any portion of Grand Oak Estates, or upon such earlier date as Developer may elect in its sole discretion by written notice given to the board of directors of the Association, this Declaration may thereafter be cancelled, altered or amended by the recordation of a document in the aforesaid Clerks Office in which the board of directors of the Association certifies that such cancellation, alteration or amendment was executed by the owners of seventy-five percent (75%) of the Lots subject to this Declaration.