SECOND AMENDED AND RESTATED DECLARATION OF COVENANTS
AND RESTRICTIONS
FOR DEER RIDGE SUBDIVISION

(Cross Reference: Book 7119, Page 252; Book 4689, Page 216; Book 4918, Page 55)

THIS SECOND AMENDED AND RESTATED DECLARATION OF COVENANTS AND RESTRICTIONS (this “Declaration”) is made this day of , 2005, by DEER RIDGE HOMEOWNERS’ ASSOCIATION, INC. (the “Association”), a Tennessee non-profit corporation, after having been duly adopted and approved by the Owners (hereinafter defined) as more particularly hereinafter described.

Background:

A. Michael Shular (“Developer”) developed all the lots shown on plats of record in Plat Book 54, Page 148 and in Plat Book 58, Page 64, Register’s Office of Hamilton County, Tennessee (“ROHC”), being Lots 1 through 88 as shown thereon, together with any Common Properties (hereinafter defined) associated therewith (such lots and Common Properties collectively herein the “Property”), into a residential subdivision, commonly known as Deer Ridge Subdivision (the “Development”).

B. In the course of developing the Development, Developer subjected the Property to certain restrictions recorded at Book 4689, Page 216, ROHC and in Book 4918, Page 55, ROHC (the “Original Declaration”), and Developer formed the Association for the purpose of administering the affairs of the Development, including enforcement of the Original Declaration, which Association operated under certain bylaws recorded with the Original Declaration (the “Original Bylaws”).

C. Developer turned over control of the Association to the Owners, and the Association amended and restated the covenants and restrictions encumbering the Development, by replacing the Original Declaration with an Amended and Restated Declaration of Covenants and Restrictions for Deer Ridge Subdivision recorded in Book 7119, page 252, ROHC (“Amended Declaration”), in order to provide for the preservation of land values and home values within the Development and to better insure a coordinated and harmonious administration of the Development for the benefit of all Owners.

D. The Association desires to modify the Amended Declaration by replacing the Amended Declaration with this Declaration.

E. This Declaration was duly adopted by the Owners of the Deer Ridge Homeowners’ Association, Inc. in accordance with the provisions of Section 10.02 of the Amended Declaration.

Declaration:

NOW THEREFORE, the Association subjects the Property and Development to the terms of this Declaration and declares that same, and any and all portions thereof, are and shall be held, transferred, sold, conveyed, leased, occupied, and used subject to the Covenants (hereinafter defined) hereinafter set forth; and these Covenants shall touch and concern and run with the Property, the Development, and each and every Home Site (hereinafter defined).

FURTHERMORE, the Association declares that the Original Declaration and the Amended Declaration are hereby superseded, replaced, and restated by this Declaration and that the Original Declaration and Amended Declaration, as of the Recording of this Declaration, shall be of no further force or effect (except as to circumstances arising before the Recording of this Declaration and to which this Declaration cannot take effect and except in the event that this Declaration is deemed unenforceable against the Development or any portion thereof, in which case the Original Declaration and/or the Amended Declaration shall retain the same force and effect as to the Development or the portion thereof, as the case may be, as either or both of such instruments had prior to the Recording of this Declaration).

FURTHERMORE, the Association hereby certifies that it has adopted this Declaration in accordance with the terms and provisions of the Amended Declaration.

FURTHERMORE, the remainder of this Declaration is as follows:

ARTICLE I
DEFINITIONS

The following words and terms, when used in this Declaration, or any amendment or supplemental declaration hereto (unless the context shall clearly indicate otherwise) shall have the following meanings:

1.01 Association. “Association” shall mean Deer Ridge Homeowners’ Association, Inc., a Tennessee non-profit corporation.

1.02 Board of Directors or Board. “Board of Directors” or “Board” shall mean the governing body of the Association established pursuant to this Declaration.

1.03 Bylaws. “Bylaws” shall mean the Bylaws of the Association, the initial text of which is set forth in Exhibit “B” attached hereto and made a part hereof.

1.04 Common Expense. “Common Expense” shall mean and include (a) expenses of administration, maintenance, repair or replacement of the Common Properties; (b) expenses agreed upon as Common Expenses by the Board or the Association; (c) expenses declared Common Expenses by the provisions of this Declaration; and (d) all other sums expended by the Board pursuant to the provisions of this Declaration or in administering the Development.

1.05 Common Properties. “Common Properties” shall mean those items of personal property, fixtures, or areas of land, with any improvements thereon, whether owned in fee simple or by virtue of an easement, license or otherwise, which are conveyed to the Association and/or are intended for the common use and enjoyment of all Owners, which may include without limitation, street lights, sidewalks, entrance signs, picnic areas, gazebos, swimming pools, recreational areas, and green spaces and walking trails.

1.06 Covenants. “Covenants” shall mean the covenants, restrictions, conditions, easements, charges, assessments, affirmative obligations and liens set forth in this Declaration.

1.07 Declaration. “Declaration” shall mean this Amended Declaration of Covenants and Restrictions for Deer Ridge Subdivision and any amendment or supplemental declaration filed pursuant to the terms hereof.

1.08 Development. “Development” shall mean the whole of Deer Ridge Subdivision, including the Property described on Exhibit “A” and all other real property later subjected to this Declaration, if any.

1.09 First Mortgage. “First Mortgage” shall mean a recorded Mortgage with priority over other Mortgages.

1.10 First Mortgagee. “First Mortgagee” shall mean a beneficiary, creditor or holder of a First Mortgage.

1.11 Home. “Home” shall mean any building situated within the Development designated and intended for use and occupancy by a single family.

1.12 Home Site or Home Sites. “Home Site” or “Home Sites” shall mean any improved or unimproved plat of land shown as a Home Site upon any recorded final subdivision map of any part of the Development, with the exception of Common Properties.

1.13 Manager. “Manager” shall mean a person or firm appointed or employed by the Board to manage the daily affairs of the Association in accordance with instructions and directions of the Board.

1.14 Member or Members. “Member” or “Members” shall mean any or all Owner or Owners who are Members of the Association.

1.15 Mortgage. “Mortgage” shall mean a deed of trust, as well as a mortgage.

1.16 Mortgagee. “Mortgagee” shall mean a beneficiary, creditor, or holder of any Mortgage.

1.17 Owner or Owners. “Owner” or “Owners” shall mean the record owner or owners, whether one or more persons, firms, associations, corporations, or other legal entities, of the fee simple title to any Home Site situated in the Development but, notwithstanding any applicable theory of a Mortgage, shall not mean or refer to the Mortgagee, unless and until such Mortgagee has acquired title pursuant to foreclosure; nor shall the term “Owner” mean or refer to any lessee or tenant of an Owner.

1.18 Property or Properties. “Property” or “Properties” shall mean all of that real property described in Exhibit “A” hereto attached and herein incorporated, together with any Common Properties associated therewith.

1.19 Record or To Record. “Record” or “To Record” shall mean to record pursuant to the laws of the State of Tennessee relating to the recordation of deeds and other instruments conveying or affecting title to real property.

ARTICLE II
PROPERTIES, COMMON PROPERTIES AND IMPROVEMENTS THEREON; ASSOCIATION AND BOARD

2.01 Property. The Property and the Development and any and all portions thereof shall be held, transferred, sold, conveyed, leased and occupied, subject to the Covenants contained in this Declaration.

2.02 Additions to Property. Developer may subject additional real property to this Declaration upon the approval of the Association given in accordance with the Bylaws.

2.03 Mergers. Upon a merger or consolidation of the Association with another association, its properties, rights and obligations may, by operation of law, be transferred to another surviving or consolidated association or, in the alternative, the properties, rights and obligations may, by operation of law, be added to the properties of the Association as a surviving corporation pursuant to a merger. The surviving or consolidated association may administer the Covenants established by this Declaration.

2.04 Common Properties and Improvements Thereon. The Association is responsible for the operation, maintenance, repair and replacement of all Common Properties, if any. All Common Properties shall be conveyed to the Association and thereupon the Association shall become responsible for the operation, maintenance, and repair thereof.

2.05 Association and Board; Access. The enforcement of this Declaration, the management, maintenance and control of the Common Properties and the other business of the Development shall be conducted by the Association and the Board as provided herein and in the Bylaws. To the extent reasonably necessary to enforce this Declaration or to perform any of the Covenants or the obligations of the Board and/or the Association, the Board and/or the Association shall have the right to access any Home Sites (but not to enter any Homes) and same shall not be deemed trespass.

ARTICLE III
PURPOSES, USES AND RESTRICTIONS

3.01 Common Properties. The Common Properties shall be used to benefit the Owners of Home Sites of the Development and to enhance the appearance and liveability of the Development.

3.02 Home Site Residential Use.

(a) All of the Home Sites in the Development shall be, and be known and described as, residential Home Sites, and no structure shall be erected, altered, placed or permitted to remain on any Home Site other than one (1) detached single family dwelling, subject to the terms and conditions as herein specified.

(b) “Residential,” refers to a mode of occupancy, as used in contradistinction to “business” or “commerce” or “mercantile” activity and, except where otherwise expressly provided, “residential” shall apply to temporary as well as permanent uses, and shall apply to vacant Home Sites as well as to buildings constructed thereon.

(c) Home Sites, or any portion thereof, shall not be used as a means of service to business establishments or adjacent property, including but not limited to supplementary facilities or an intentional passageway or entrance into a business or another tract of land, whether or not a part of the Property.

3.03 Multi-Family Residences, Business. Homes shall not be designed, patterned, constructed or maintained to serve, or for the use of more than one single family, and Homes shall not be used as a multiple family dwelling at any time, nor used in whole or in part for any business service or commercial activity where patrons or customers come and go, where commercial deliveries of supplies or equipment are made, or which otherwise is inconsistent with ordinary residential uses.

3.04 Minimum Square Footage. Any Home must meet the minimum square foot livable floor area as set forth below as to the respective classification.

(a) A Two-Story Home with an attached double garage, 2500 square feet with 1100 square feet minimum on main level and not counting finished basements.

(b) A One-Story Home without basement and with a double car attached garage, 2000 square feet.

(c) A One-Story Home with full basement with attached double car garage, 1800 square feet on the upper level.

(d) A One-Story Home with full basement with a double car garage in the basement, 2000 square feet on the upper level.

(e) A One and One Half Story Home with attached double car garage, 1500 square feet on the first floor with a minimum of 2200 total square feet, not counting finished basement.

(f) A One and One Half Story Home with a garage in the basement, 1600 square feet on the first floor and a minimum of 2300 total square feet, not counting finished basement.

(g) A Two-Story Home with garage in the basement, 1250 square feet on the first floor, and with a minimum of 2500 total square feet, not counting finished basement.

No Home shall be erected or permitted to remain in the Development unless it has the number of square feet of enclosed living area, exclusive of open porches, garages or basements as set forth in this paragraph. For the purpose of this paragraph, stated square footage shall remain the minimum floor area required, and floor area shall mean the finished and heated living area contained with the residence, exclusive of open porches, garages and basements.

3.05 Detached Buildings; Pools. Detached garages, servants quarters, pool houses, or any other outbuilding shall not be placed on any Home Site without the prior written consent of the Board, which consent the Board may condition upon the location and size of any such outbuilding and/or upon any such outbuilding being constructed so as to complement the associated Home in style, color, theme, and materials. Above-ground pools are prohibited. All swimming pools must be enclosed by a fence permitted under this Declaration.

3.06 Fences. All fences and walls constructed on any Home Site must be approved by the Board, and a drawing showing location, height and materials shall be submitted to the Board for approval prior to construction. All fences shall be constructed either of wrought iron or aluminum or shall be wooden or vinyl “privacy fences,” not exceeding eight (8) feet in height. Wood fences shall be either painted or stained. Chain link and wire fences are prohibited. No fence may be constructed nearer to the front boundary of any Home Site than the rear elevation of the Home.

3.07 Lawn Care. For the benefit of the Development, Owners are required to keep their lawns and landscaping healthy and in a neat and orderly condition, including but not limited to keeping shrubs appropriately trimmed and lawns appropriately mowed and free of weeds and debris.

3.08 Refuse Containers and Screening. Garbage and refuse shall be placed in containers, which shall be concealed and contained within a building or garage or shall be concealed by means of a screening wall of material similar to and compatible with that of the Home, or sufficient landscaping to provide a permanent screen at all times of the year. These elements shall be integrated with the site plan for the Home Site, be designed so as not to attract attention and shall be located in a reasonably inconspicuous manner as is possible.

3.09 Unsightly Conditions. All of the Homes and Home Sites in the Development must, from the date of purchase, be maintained by the Owner in a neat and orderly condition (grass being cut when needed, as well as leaves, broken limbs, dead trees, and other debris being removed when needed, and Homes being kept painted and in a neat and clean condition and in a state of good repair). Tree limbs, rocks and other debris must be kept out of the streets. In the event that an Owner of a Home Site in the Development fails, of his own volition, to maintain his Home Site or Home in a neat and clean condition and a good state of repair, the Board, or its duly appointed agent, may enter upon said Home Site without liability and proceed to put said Home Site into a state or condition compliant with this Section, billing the cost of such work to the Owner.

3.10 Signs. No sign of any kind shall be displayed from any Home Site, with the exception of a customary “For Sale” sign to facilitate the sale of an Owner’s personal residence.

3.11 Animals. No sheep, swine, goats, horses, cattle, burros, fowls (excluding household birds such as parrots and parakeets) or any like animals shall be permitted to be kept or to remain on any of the Home Sites, or to roam at large at the Development. There shall be no kennels permitted on any Home Site for the commercial breeding or boarding of domestic pets. Pet owners shall not allow pets to roam unattended, and pets shall be leashed if off their master’s Home Site.

3.12 Antennas. Television antennae, dishes, radio receivers or senders or other similar devices shall not be attached to or installed on the exterior portion of any Home or other structure on any Home Site within the Development, except that 1 meter (39.37 inches), or smaller, satellite dishes shall be permitted.

3.13 Vehicle Parking. Vehicles owned by Owners shall be parked only in the Owner’s garage or driveway. Commercial vehicles, tractors, mobile homes, recreational vehicles, trailers, campers, camper trailers, boats or other watercraft shall be parked only in the Owner’s garage or screened from view of streets. No inoperable vehicle or other machinery shall be stored on any Home Site at any time, unless kept within a garage.

3.14 Garages; Driveways. All Homes shall have at least a double-car garage, either attached thereto or integrated in or beneath the Home. Garage entrances shall be from the side or rear of the Home. Before any construction on a Home is begun, a temporary driveway shall be installed and said drive shall be crowned and have proper drainage so that overflow, if any, from the Home Site shall not flow upon the main road. After construction is completed, the driveway shall be concrete or better. Under special topographic circumstances or excessive driveway length, the Board may approve other wearing surface after an initial 50 feet from the road is constructed with concrete or better.

3.15 Tree Removal. Except as provided in the site plan prior to construction, trees having a height of approximately 20 feet or taller may not be removed from any Home Site, except where such trees (1) are dead, severely damaged, or uprooted, (2) pose an imminent threat to cause damage to any Home or other improvement in the Development, or (3) are located within any field lines or easement area (for public utilities or otherwise) in a way that inhibits the use and enjoyment of the field lines or easement area.

3.16 Vegetable Gardens. No vegetable gardens shall be planted or extended nearer to any street than the rear elevation of any Home or nearer than 25 feet to any adjoining Home Site.

3.17 Laundry. No laundry shall be hung within public view on any Home Site.

3.18 New Construction; Alterations. Any new Homes being constructed within the Development must be completed within twelve (12) months of commencement of construction. The Board may grant extensions of this period for completing construction in its discretion. Owners of the Home Site on which new construction is ongoing shall be responsible for keeping the Home Site free from unnecessary debris and garbage so as not to create a nuisance or litter other parts of the Development. The Board shall require that any such owner pay to the Board, prior to new Home plan approval, a reasonable construction deposit, against which the Board may deduct any costs and expenses associated with enforcing this provision or with curing non-compliance by the Owner; if the Owner complies with this provision such that the Board does not incur expenses in enforcement hereof or in curing any non-compliance herewith, then the Board shall promptly return the construction deposit to the Owner upon completion of the Home. The amount of the construction deposit shall be set by the Board and shall be in no case less than One Thousand Five Hundred Dollars ($1,500.00). The Board may not increase the construction deposit amount without first acquiring the approval of two-thirds (2/3) of those Members of the Association who are present or represented by proxy at the annual meeting or special meeting to approve such change. Prior to commencing construction of any Home or material alterations to any Home, the Owner of the Home Site on which construction is to commence shall submit to the Board plans and drawings for the Home or the alterations and a site plan showing the proposed location of the Home on the Home Site (with set-backs provided for herein indicated thereon), the location of the mailbox, driveways, walk ways, retaining walls, fences, exterior lighting, landscaped areas, propane tanks, and other improvements. Construction on the Home may not commence until the Board has approved the plans and drawings and/or the site plan, such approval not to be unreasonably withheld, conditioned or delayed, and any construction must be done in conformity with the plans and drawings and/or the site plan.

3.19 Architectural Design. The exterior of every Home in the Development must be constructed of brick, stone, stucco, or other material approved by the Board. There shall be no exposed concrete on any Home, outbuildings, or retaining walls. All roofs shall be at a minimum of 9/12 pitch and shall be constructed of a dimensional shingle or such other material as is approved by the Board; provided however, porch roofs or other minor or accent roofs may have a lesser pitch if approved by the Board.

3.20 Mailboxes. All mailboxes must have design and material approved by the Board and must have a functional photocell-controlled A/C powered top light.

3.21 Set-Backs. All Homes shall have a front set-back of not less than 35 feet, measured from the front elevation of the Home to the nearest edge of the right-of-way which the Home faces. All Homes shall have a rear set-back of not less than 25 feet, measured from the rear elevation of the Home to the rear boundary line of the Home Site. All Homes shall have a side set-back of either ten (10) feet, measured from the side elevation of the Home to the side boundary line of the Home Site, or of twenty-five (25) feet, measured from the side elevation of the Home to the nearest edge of the public right-of-way on that side of the Home. No structures or improvements, including swimming pools, pool houses, children’s playhouses, outdoor fireplaces, etc., shall be located nearer than twenty-five (25) feet to any property line of the Home Site.

3.22 Utilities. Owners shall be responsible for preserving and protecting underground utilities within their Home Site. No utilities may be above ground, including but not limited to electric, telephone, and cable television. Likewise, propane tanks must be buried. There shall be an easement for utilities ten (10) feet wide along the boundary lines of each Home Site, except that in the case where Home Sites are contiguous, the easement shall be five (5) feet in width on each Home Site, for a total of ten (10) feet in width.

3.23 Zoning. Whether expressly stated so or not in any deed conveying any one or more of said Home Sites, each conveyance shall be subject to existing governmental zoning and subdivision ordinances or regulations in effect thereon.

3.24 Offensive Activity. No noxious or offensive activity shall be carried on upon any Home Site, nor shall anything be done thereon which may be or may become an annoyance, discomfort, embarrassment or nuisance to the Development or which may disrupt the peaceful and quiet enjoyment of any other Owner, including but not limited to the emanation of foul odors or disruptive noise.

3.25 Duty to Rebuild or Clear Upon Casualty or Destruction. In order to preserve the aesthetic and economical value of all Home Sites within the Development, each Owner shall have the affirmative duty to rebuild, replace, repair, or clear, within a reasonable period of time, any building, structure, and improvement or significant vegetation which shall be damaged or destroyed by fire or other casualty. Variations and waivers of this provision may be made only upon the Board establishing that the overall purpose of these Covenants would be best effected by allowing such a variation. Variations to this section are to be strictly construed and the allowance of a variance by the Board shall not be deemed to be a waiver of the binding effect of this section upon all other Owners. In the event of damage or destruction by fire or other casualty, this provision shall control over other provisions contained herein regarding maintenance to and the condition of Homes and Home Sites.

3.26 Leasing and Subleasing. All leasing and subleasing of Homes and Home Sites, or any portion thereof, by any other party is strictly prohibited; provided that the Board may grant waivers to this provision upon compelling evidence of extraordinary circumstances or undue hardship.

ARTICLE IV
VIOLATIONS AND ENFORCEMENT

4.01 Violations and Enforcement. In the event of the violation, or attempted violation, of any one or more of the provisions of these Covenants, the Association, its successors or assigns, including the Board acting on behalf of the Association, and any and all Owners, acting individually (but subject to Articles VII and VIII), of any one or more of the Home Sites to which provisions of these Covenants apply, may bring an action or actions against the Owner in violation, or attempting violation, for specific performance, and the said Owner if found to be in violation or attempted violation shall be further liable for such damages as may accrue, including any court costs and reasonable attorneys’ fees incident to any such proceeding, which costs and fees shall constitute liquidated damages. The Board may grant variances to the Covenants, if such variances do not, in the sole discretion of the Board, adversely affect the purposes sought to be obtained hereby.

ARTICLE V
ASSESSMENTS

5.01 Creation of the Lien and Personal Obligation of Assessments. Each Owner by acceptance of a deed conveying a Home Site, whether or not it shall be so expressed in any such deed or other conveyance, shall be deemed to covenant and agree to all of the terms and provisions of the Covenants contained in this Declaration and to pay to the Association annual assessments and special assessments for the purposes set forth herein, such assessments to be fixed, established and collected from time to time as hereinafter provided. The Owner of each Home Site shall be personally liable, such liability to be joint and several if there are two or more Owners, to th